A TOUGH JOURNEY · Coming in February Canadian Mining Journal features Mining in Ontario, plus its...
Transcript of A TOUGH JOURNEY · Coming in February Canadian Mining Journal features Mining in Ontario, plus its...
January 2016
c a n a d a rsquo s f i r s t m i n i n g p u b l i c a t i o n
wwwcanadianminingjournalcom
A CLOSE LOOK AT FIRST NATIONS amp MINING RELATIONS
JOURNEYA TOUGH
CMJJan2016Coverindd 1 2016-01-12 1041 AM
We are proud to partner with Aboriginal communities and companies to develop innovative outreach and engagement programs across Canada By working together we can build sustainable solutions for our clients in the mining and metals energy and infrastructure sectors
To learn more about how Aboriginal communities and Hatch are partnering to create positive change visit hatchca
E N G I N E E R I N G bull C O N S U LT I N G bull P R O J E C T D E L I V E RY bull T E C H N O L O G I E S bull O P E R AT I O N A L P E R F O R M A N C E
Building a stronger futuremdashtogether
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JANUARY 2016 CANADIAN MINING JOURNAL | 3
For More InformationPlease visit wwwcanadianminingjournalcom for regular updates on whats happening with Canadian mining companies and their personnel both here and abroad A digital version of the magazine is also available at wwwdigitalcanadianminingjournalcom
Coming in FebruaryCanadian Mining Journal features Mining in Ontario plus its PDAC Issue
ABOUT THE COVER
This monthrsquos cover photo of Mark Amarok Chesterfield Inlet Nunavut by Dave Brosha Photography Long Creek PEI
January 2016
c a n a d a rsquo s f i r s t m i n i n g p u b l i c a t i o n
wwwcanadianminingjournalcom
A CLOSE LOOK AT FIRST NATIONS amp MINING RELATIONS
JOURNEYA TOUGH
FEATURESFIRST NATIONS AND MINING RELATIONS8 THE ENVIRONMENTConcern for ldquoThe Environmentrdquo is one of the many things that both the First Nations and the Canadian Mining Industry have in common
10 FIRST NATIONS MINER Indigenous Junior Miner takes aggressive leap into ownership of NWT mining company
16 PARTNERING HELPS SAVE FISHERIES BC mining company partners with five Indigenous communities to help protect aquatic environment near mine
20 INDIGENOUS ROAD BUILDERS PROVIDE VITAL LINK First Nations company keeps vital road into Ontario diamond mine safe and open year round
22 INDIGENOUS WOMEN ASK QUESTIONS Itrsquos been a year since the Native Womenrsquos Association of Canada was formed and during that time theyrsquove taken a serious look at job opportunities in the mining industry
24 THE MINING ASSOCIATION OF CANADArsquoS PERSPECTIVE MAC President and CEO Pierre Gratton addresses the Canadian Aboriginal Minerals Associationrsquos 23rd Annual Conference in Vancouver and ldquoMining and Indigenous Peoples Canadarsquos Futurerdquo
COAST-TO-COAST-TO-COAST REVIEW27 MINERAL EXPLORATION amp DEVELOPMENT IN THE WESTAn overview of activities on the west coast of Canada provided by the Association of Mineral Exploration British Columbia (AME BC)
28 MINERAL EXPLORATION amp DEVELOPMENT IN THE EASTAn overview of activities on the east coast of Canada provided by the Department of Natural Resources Government of Newfoundland and Labrador
DEPARTMENTS5 EDITORIALLike most January issues of magazines the editorials focus on the year ahead and Canadian Mining Journal is no exception This month Editor Russ Noble talks about the sad situation the mining industry is in but goes one step further to talk about The Environment too and how itrsquos being equally challenged by these tough times
6 LAWJames Clare a Partner with the Toronto-based law firm of Bennett Jones looks at the TSX Venture Exchangersquos response to the commodities slump
7 FIRST NATIONSA regular column by First Nations of Ontario
8 CSR amp MININGA regular column by Michael Torrance a lawyer in Norton Rose Fulbrightrsquos Toronto office on Corporate Social Responsibility
34 UNEARTHING TRENDSBruce Sprague a Partner and EYrsquos Canadian Mining amp Metals Leader Vancouver looks at First Nationsrsquo women as an untapped resource and possible solution to Canadarsquos skilled labour shortage
wwwcanadianminingjournalcom
CANADIANCANADIANMining JournalMining Journal
8
10
16
JANUARY 2016 VOL 137 NO 1
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Mines Handbook - 38 Lesmill Rd Unit 2 Toronto ON M3B 2T5
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JANUARY 2016 CANADIAN MINING JOURNAL | 5
CANADIANCANADIANMining Journal
Established 1882
Canadian Mining Journal provides articles and information of practical use to those who work in the technical administrative and supervi-sory aspects of exploration mining and processing in the Canadian mineral exploration and mining industry Canadian Mining Journal (ISSN 0008-4492) is published 10 times a year by BIG LP Mining BIG is located at 38 Lesmill Rd Unit 2 Toronto ON M3B 2T5 Phone (416) 510-6891
Legal deposit National Library Ottawa Printed in Canada All rights reserved 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 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 please contact Russell Noble at 416-510-6742
Subscriptions mdash Canada $4795 per year $7695 for two years USA US$6095 per year Foreign US$7295 per year Single copies Canada $10 USA and foreign US$10 Canadian subscribers must add HST and Provincial tax where necessary HST registration 809744071RT001
From time to time we make our subscription list available to select companies 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 of the following methods Phone 1-888-502-3456 ext 2 Fax 416-447-7658 E-mail cholderglacier-bizinfocom Mail to Cindi Holder BIG Mining LP 38 Lesmill Rd Unit 2 Toronto ON M3B 2T5
We acknowledge the financial support of the Government of Canada through the Canada Magazine Fund toward our editorial costs
January 2016 Vol 137 mdash No 1 38 Lesmill Rd Unit 2 Toronto Ontario M3B 2T5 Tel (416) 510-6789 Fax (416) 447-7658 wwwcanadianminingjournalcom
Editor Russell B Noble 416-510-6742 rnoblecanadianminingjournalcom
Field Editor Marilyn Scales 613-270-0213 mscalescanadianminingjournalcom
Production Manager Jessica Jubb
Circulation Manager Cindi Holder 416-510-6789 ext 43544 cholderglacierbizinfocom
Publisher amp Sales Robert Seagraves 416-510-6891 rseagravescanadianminingjournalcom
Sales Western Canada Western USA and Quebec Joelle Glasroth 416-510-5104 jglasrothcanadianminingjournalcom
Toll Free Canada amp USA 1-888-502-3456 ext 2 or 43734
Group Publisher Anthony Vaccaro
EDITORIAL
By Russell Noble
ldquoNo workrdquo is the least of our worries
Now that wersquore heading into what forecasters say will be another dismal year itrsquos hard to get excited about the months ahead knowing wersquore going to continue hearing more about layoffs care and maintenance and worst of all outright closures
After the past couple of years of what the industry has experienced the words ldquoThey Shoot Horses Donrsquot Theyrdquo the title of Horace McCoyrsquos 1935 novel and later of a 1969 movie by the same name starring Jane Fonda pretty much describes the lsquoput me out of my miseryrsquo feeling that many in the mining industry are feeling
But like all doom-and-gloom stories therersquos usually something good to say and thank-fully and somewhat surprisingly thatrsquos where the theme of this issue ldquoFirst Nations and the Canadian Mining Industryrdquo comes in with a lsquopositiversquo message thatrsquos encouraging for almost all miners
As both sides of the fence have known for years the words ldquoFirst Nationsrdquo and ldquoMiningrdquo havenrsquot necessarily homogenized to make for a creamy-smooth feeling towards the use of lands and the extraction of the minerals they contain
In fact itrsquos safe to say that itrsquos been an oil-and-water relationship for centuries but like I just said things are looking a little more positive thanks to the recent emergence and under-standing that therersquos far more at stake than territorial lands and their contents
The Environment is something that almost everyone now agrees is far more important than quibbling over boundaries and minerals because as witnessed at the recent World Climate Summit in Paris France where even the United States Russia and China agreed on climate-change issues Mother Nature has been beaten to her knees because of emissions from the industrialized world
And admit it or not the resources industry is partly to blame for the mess of the worldBut to get back to my point of First Nations and Mining Industry relations the recent
federal election and the subsequent meeting of Prime Minister Trudeau with the Assembly of First Nations was a decade-late meeting that at least showed that the federal government was about to listen to the ldquocanaries of the coal minerdquo as First Nations communities were described at a recent conference in Vancouver because ldquotheyrsquore out there to warnrdquo
Those phrases were used during one of the presentations at the Canadian Aboriginal Minerals Associationrsquos three-day conference where more than 500 delegates from across the country heard speakers from First Nations and mining companies alike talk about a num-ber of things and in almost every case The Environment was mentioned
It was a common thread throughout the Conference and regardless of who was speak-ing the message was clear itrsquos time to clean up our act
And the ldquoourrdquo was collective and not directed at any one group because as everyone in the room agreed the issue at hand (The Environment) was far more important than terri-torial rights and mining privileges
As I quoted at the outset ldquoThey Shoot Horses Donrsquot Theyrdquo and unless everyone pulls together and that certainly means First Nations and the Mining Industry then the forecast-ers I mentioned earlier will be predicting dismal times far beyond the coming year CMJ
Editorialindd 5 2016-01-12 1139 AM
In 2015 Canadarsquos junior stock exchange the TSX Venture Exchange sunk to levels that a few years ago would have been inconceivable This drop caused primarily by the sustained slump in commodities led the SampPTSX Venture
Composite Index to sink below 500 points for the first time since the TMX group bought the Canadian Venture Exchange in 2001 The low point represents a 29 drop from where the TSXV started at the beginning of 2015 and a staggering 85 drop from its peak in 2007
A primary cause of the exchangersquos poor performance has been the extremely challenging market conditions facing extractive resource issuers At present more than 70 of the companies listed on the exchange operate within the mining or energy sec-tor After a two plus year depression in mining equities com-bined with weak prices for most metals as well as well as hydro-carbon products junior resource issuers have fallen out of favour with investors
TSXV White PaperThe TSXV conscious of the market realities facing its issuers and with the aim of attracting new investment conducted a lengthy consultation process with clients and stakeholders These consultations focused on identifying new initiatives to respond to realities facing its listed issuers and other market participants in light of the sluggish capital market conditions The outcome of the consultations was a White Paper issued on December 17 2015 It contains proposed broad based reforms to various TSXV rules policies and strategies aimed at fostering renewed interest in the exchange and its services The full text can be found at httpswwwtsxcomresourceen1252
The recommendations of the White Paper were synthesized into a three-pronged strategic reform program The first and second prongs of this program are particularly relevant for cur-rent and potential resource based issuers
Cost of complianceThe first prong of the program focuses on reducing the cost of compliance a primary area of concern for most resource issuers The White Paper proposes a number of rule changes including
s eliminating the general requirement for sponsorship of new issuers undertaking a reverse takeover (RTO) change of
business (COB) or other business combinations narrowing the application of shareholder approval require-
ments for inactive issuers undertaking an RTO or COBs implementing a director and officer ldquoNEXUS-typerdquo status
certification program to reduce or eliminate ongoing require-ments for certain individuals
s extending the shelf life of on-file personal information forms for directors and officers from three to five years
eliminating escrow requirements that overlap with similar requirements of the Canadian Securities Administrators
s implementing an automated system for transaction filing and accelerating response times to speed up overall transaction processing
Attracting new capitalThe second prong of the White Paperrsquos strategic reform pro-gram focuses on attracting new and more diverse capital to the TSXV The initiatives proposed under this prong are less tech-nical and less defined than those proposed under the first prong but include commitments to undertake active and ongoing promotion of TSXV-listed issuers through roadshow presentations to fund managers retail investors investment advisors and banks and research analysts instituting an ongo-ing streaming summary service of available public offerings and introducing a new market making program to be adminis-tered by the exchange
TSXV seeking feedbackWhile the exchange has committed to implementing the above listed reforms under an ldquoaggressive timelinerdquo prior to doing so it plans to host a series of town hall meetings where it will entertain feedback on the strategy and proposed initiatives In the coming months existing issuers and other interested parties who may be impacted by these reforms should carefully monitor the develop-ments and provide feedback as appropriate
Whether these initiatives will be successful in achieving their intended results remains to be seen but given the extremely challenging market environment for resource issuers the pro-posed reforms should be implemented efficiently and effectively to reduce the headwinds facing junior issuers CMJ
JAMES CLARE is a partner with Bennett Jones in Toronto
LAW
By James Clare
TSXV response to commodities slump
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Lawindd 6 2016-01-12 1043 AM
T he Truth and Reconciliation Commissionrsquos six-vol-ume 23-million-word final report was issued on December 15 2015 It not only contains stories from survivors of residential schools but a set of 10 guid-
ing principles and 94 recommendations or Calls to Action While the federal provincial and territorial governments
must act upon the majority of the 94 recommendations there are also recommendations for all sectors of society including the churches media arts academia and industry
For example the churches now have less than 90 days before issuing a joint statement by March 31 2016 on how they will implement the spiritual and religious components of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP)
The churches must also reject the concepts ndash such as ldquoterra nullisrdquo and the Doctrine of Discovery -- used by the church and state to assert sovereignty over Indigenous peoples and their lands
However I must point out that First Nations do not expect industry to atone for the sins of the past But we do however expect to be treated as equals and as the rightful owners of the land
Mining companies in Canada must recognize and acknowl-edge the era of Reconciliation as common place in all of its dealings with First Nations as it relates to mining exploration development extraction and remediation This also includes training and educating management and staff on First Nation history culture human rights and anti-racism
Here are some key points to consider s The Truth and Reconciliation process is becoming an institu-
tion in Canada that will inspire and influence positive approaches to relationships between Canada and its First Peoples
s Implementing the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) and respecting Treaties is a major focus within the TRC Calls for Action
s Business and industry in all Canadian sectors are being prompted by the TRC Report to become aware of the report and make efforts to build bridges This will close the divide between First Nations and Industry that was created as a
result of ignorance of history of Canadarsquos Indian Residential School past
s First Nations deep connection to the land is evident in lan-guage culture and world view ndash this is a key focus in many of the calls for action
s The respect and responsibilities that First Nation peoples have for the land is an important element to the process of Reconciliation that is now being recognized by federal juris-diction As noted in the 2015 Speech from the Throne the environmental assessment process will soon become formal-ized adding First Nations to the decision-making process as it pertains to the protection of the environment
s Benefits to First Nations regarding mining development are also a key factor in reconciliation The era of sealing a deal solely with an IBA (Impact Benefit Agreement) is a thing of the past First Nations seek to take on their roles as govern-ments beneficiaries and providers for their people
s The lsquoReconciliation Lensrsquo can be a way for industry to create stronger relations avoid conflicts build strong business partner-ships and help achieve collective prosperity with First Nations In conclusion here are four key messages that sum up the
outcomes from acting upon Reconciliation and forming a new relationship with our Peoples 1 Reconciliation can be a benefit to building strong mining
partnerships with First Nations2 Reconciliation as a policy approach for mining companies
will expedite relationship-building beyond most conflicts that arise out of resisting First Nation history and Cultural competence
3 The cost benefit to a Reconciliation approach in the mining industry is invaluable
4 Reconciliation in Canadian mining can cultivate a social con-sciousness that could define the industry as a 21st century legacy maker
I look forward to continued dialogue with the mining indus-try as we work together on making 2016 a breakthrough year for positive change Together we will build a better more inclusive Canada for our children and future generations CMJ
By Ontario Regional Chief Isadore Day Wiindawtegowinini
Mining must includeTruth amp Reconciliation
FIRST NATIONS
JANUARY 2016 CANADIAN MINING JOURNAL | 7
First Nationsindd 7 2016-01-12 1043 AM
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NMENTENVIROTHE
Pho
to
Thin
ksto
ckc
om
THE WORLD AGREES ENOUGH IS ENOUGHBy Russell Noble
FN Introindd 8 2016-01-12 1044 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 9
NMENTENVIROMother Nature canrsquot take it much longer
E ver since John Cabot landed in Newfoundland in 1497 and started trekking westward into the unknown exploration and later development has left its mark on The Environment
In fact itrsquos left more than a mark itrsquos scarred the earth forev-er thanks to an unquenchable thirst for discovery but like it or not the world wouldnrsquot be what it is today if not for yesterdayrsquos adventurers
Regardless of how appreciative we are to John Cabot and The Vikings before him Mother Nature has taken the brunt of their quests through the loss of trees the displacement of wildlife polluted waterways and often the disappearance of fish and most recently in the news air quality because of toxic emissions resulting in climate changes
In just over 500 years the world has gone from pristine to polluted and it wasnrsquot until recently when the ldquoWorld Leaders Unanimously Agreedrdquo at the United Nationsrsquo Climate Summit in Paris France that everyone became more aware of the fact that the world has had enough it canrsquot take any more
And thatrsquos when The Environment started receiving the worldwide attention it deserves
ldquoAnd itrsquos about timerdquo says The Assembly of First Nations of
Canada and the 634 bands it represent across the country because thatrsquos what indigenous people from coast-to-coast-coast want mosthellip a clean safe and bountiful place to live and work
As one delegate attending the 23rd Annual Canadian Aboriginal Minerals Associationrsquos meeting in Vancouver said late last year ldquoWersquore the canaries in the coal mines wersquore out there to warnrdquo
Philosophical yes straightforward no question but more-over it was a sincere and insightful message that Federal Indigenous Affairs Minister Carolyn Bennett later echoed by saying ldquoThere is every evidence Canadarsquos Aboriginal Peoples are indeed on the front lines of climate changerdquo
As already mentioned concern for the well being of The Environment is a centuries-old topic for discussion and when you look at the photo on these pages itrsquos hard to understand how mankind can do what itrsquos doing to endanger such perfection
But it is and doing so at such an alarming rate that no matter what the 197 world leaders agreed to in Paris last year scenes like this are being threatened around the world every day and unless we take The Environment seriously future generations will have only photographic images of the lsquoWay We Werersquo
Thankfully both the First Nations and the Canadian Mining Industry are two groups working on improving the lsquoWay We Arersquo so that future generations donrsquot have to look back on refer-ence material to see how things used to be
Stories on the following pages take a closer look at First Nations and Mining Relations and how theyrsquore working in har-mony and in the best interest of everyone and everything involved CMJ
FIRST NATIONS and MINING
FN Introindd 9 2016-01-12 1044 AM
NWT INDIGENOUS JUNIOR MINER ANTES UP IN ITS AGGRESSIVE LEAP INTO OWNERSHIP IN MINING ECONOMY
By Northern Correspondent Bill Braden
BOLD amp BRAVE
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T wo years ago the Dene of the NWT bold-ly jumped into the dragonrsquos jaw and launched their own mining company
The targets significant polymetallic potential near Great Bear Lake and dia-monds near the Ekati and Snap Lake mines
The vision be more than a source of labour and supplier of services to other miners They want to be
their own stand-alone producer among the first in Canada to pursue indigenous mine ownership
Wait a minute Arenrsquot First Nations usually railing against resource development the constant thorn in miningrsquos side And in the face of NWTrsquos gnarly record as a high-risk mining envi-ronment with dwindling exploration and labyrinthine regula-tions what is driving a home-grown indigenous company to do this in the first place
Aerial photo of the mill and camp at Terra Silver Mine abandoned near the south shore of Great Bear Lake since 1985 Photo courtesy of DEMCo LP
Bradenindd 10 2016-01-12 1138 AM
ldquoThe main thing is people want to participate and take ownership Itrsquos coming from the simple statements that have been made at the Dene Nation assemblies for yearsrdquo says Darrell Beaulieu the President and CEO of Denendeh Investments Incorporated (DII) and its latest ven-ture DEMCo Ltd
ldquoNo one ever said we are against business or development We said we want to be participants in development meaningful participantsrdquo
To a considerable extent that has indeed been the case in the NWT Beaulieu points to the prosperous part-nerships among more than 60 NWT indigenous businesses and diamond giants De Beers Dominion and Rio Tinto
Between 1996 and 2011 $42 bil-lion or 33 per cent of their northern spend was with indigenous companies and almost 9500 person years of employment were filled by indigenous workers in that period about 25 per cent of the total labour quantum
But he wanted to go beyond the jobs and servicesupply deals and take the ambitious jump to the equity level The current slump in mining activity and eroding values on existing properties gave momentum to Beaulieursquos plan to create DEMCo in the spring of 2013
ldquoSo the timing to pick up properties andor junior mining companies is upon usrdquo said DIIrsquos website at the time
JANUARY 2016 CANADIAN MINING JOURNAL | 11
FIRST NATIONS and MINING
Darrell Beaulieu CEO of DEMCo LP and this yearrsquos winner of the Skookum Jim Award from PDAC for outstanding achievement and contribution to mining by an aboriginal group or individual
Bradenindd 11 2016-01-12 1138 AM
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It continued on a note of high optimism ldquoThe silver lining to present and initiate a Denendeh exploration and mining compa-ny at this time may help create momentum for fundamental change in First Nation participation in resource development in the Northwest Territories and Canadardquo
The soft-spoken Beaulieu 58 is an Akaitcho Dene born and raised in Yellowknife who has earned numerous accolades for his leadership The most recent is the 2016 Skookum Jim Award from the Prospectors and Developers Association of Canada acknowledging significant achievement and contribution to mining by an indigenous group or individual
Hersquos is no stranger to indigenous and northern corporate governance Hersquos a three-time Chief of the Yellowknives First Nation and has held directorships with Northland Utilities the NWT Business Development and Investment Corporation and numerous industry associations
And hersquos no stranger to mining either as one of his first jobs was with Noranda Exploration doing EM surveys mapping prospecting claim staking and general exploration work
Beaulieu has been an influential advocate for Dene invest-ment through the parent group Denendeh Investments Limited Partnership an alliance of 27 First Nations communi-ties across the NWT It boasts a diverse portfolio including oil and gas drilling services electric utilities communications real estate and now exploration and eventually mining
Optimistic StartTo get DEMCo set up Beaulieu hired Yellowknife prospector
Trevor Teed into the shop as exploration vice president Teed brought with him a hunch hersquod been plugging away at for almost two decades the potential for a new discovery in the Camsell River region southeast of Great Bear Lake directly under four historic silver producers that operated from the 1960s to 1985
rdquoI suggested to him that the potential for IOCG (iron oxide-copper-gold) is what attracted me to it not silverrdquo says Teed ldquoDarrell agreed and despite the initial doubt of two of our three contract geologists our initial thoughts have been proven and there is IOCG at Camsell Riverrdquo
ldquoFirst it was kind of a desktop jobrdquo says Beaulieu ldquoThe data was all over the place We had to go to the United Sates Alberta BC the Geoscience office here in Yellowknife personal homes and at site too it was amazing where all the data ended up after 30 yearsrdquo
They resampled thousands of metres of decades-old core at site (that saved millions of exploration dollars) The results first disclosed in late 2014 proved out their early optimism
ldquoBack in the 70s they were only looking for silver We looked at the core and did some more prospecting and we found that hey therersquos a lot of gold there Whatrsquos more after our first field season was confirmation therersquos a huge magnetic body there also It looks like we have an IOCG depositrdquo
Beaulieu is too savvy to get excited at this point but polymet-alic IOCG deposits (Australiarsquos mammoth Olympic Dam is one) can be truly massive The discovery of the zone estimated roughly at some seven by 16 kilometres in size was first announced in late 2014
Teed says he had taken his hunch to other miners but credits Beaulieu with the vision and the belief to carry it forward His investigation so far has uncovered an extensive magnetic zone under the old silver digs
ldquoIt is a significant event I think that when the rest of Canada catches up to what we have wersquore going to see significant explo-ration again in the areasrdquo predicts Teed
That significance is backed up by mapping and geophysical
Noel Michel of Lutsel Krsquoe takes a break during a prospecting trip near Great Bear Lake Photo courtesy of DEMCo LP
DEMCo Exploration Vice-president Trevor Teed CEO Darrell Beaulieu and COO Margaret Gorman billbradenphoto
Bradenindd 12 2016-01-12 1138 AM
work carried out by the Geological Survey of Canada and the NWT Geological Survey over the past decade
Geologist Scott Cairns Manager of Bedrock Mapping and Mineral Deposits at the NTGSrsquos Yellowknife office says the historic production of silver and uranium is indicative of larger polymetallic IOCG deposits in the Great Bear magmat-ic zone
ldquoThey are definitely in a high mineral potential area thererdquo says Cairns adding that DEMCorsquos claims are at the north end of that zone while Fortune Mineralrsquos NICO project about 200km to the south is on its southern edge
Cairns says federal GSC geologists have recently completed a large study of alterations that can help identify IOCGs ldquoSo therersquos an enormous volume of work of geophysical characterisa-tions ways to track down where these potentially valuable deposits might be hiddenrdquo he says
DEMCorsquos IOCG discovery has not sparked any new rush of interest in the region But on a territory-wide basis says Cairns the number of inquiries website and office visits to his library and data bases has been spiking in the past few months
ldquoI think what wersquore seeing is that while itrsquos difficult to fund boots-on-the-ground exploration companies are doing their homework right now and will be using that when conditions improverdquo
In The GameAs of late December 2015 DEMCo was fully engaged in plan-ning the 2016 field program which Beaulieu hopes will include airborne geophysical work as well as more ground sampling They will spin off another subsidiary Camsell River Minerals Ltd to carry the project
But just like any other junior the team will be out there looking for private cash during one of the metal marketrsquos deepest and most prolonged slumps
And predictably thatrsquos not the only hurdle The claim block is within an overlapping boundary of both the Tlicho and Sahtu land claim regions
The four old mines on the claim block are among dozens across the NWT deemed for rehabilitation by the federal govern-ment There is an existing airstrip but land access would largely be on the historic Denison Ice Road from Behchoko first opened in the 1960s but dormant for 30 years
Yet another layer is working with the NWT Government as it gets used to managing the mines portfolio after its transfer from Ottawa to the NWT in April of 2013
And because DEMCorsquos parent corporation is governed by an alliance of all NWTrsquos First Nations - and itrsquos their money thatrsquos at risk - Beaulieu also has to satisfy a board that isnrsquot all that familiar with being on the investor side of the mining equation
Was it a hard sell to get his board on side in the first place No says Beaulieu pointing to DIIrsquos investment of about $2
million in cash and time to date ldquoThe hard sell is going to be finding the money to add value without diluting too muchrdquo
He says hersquoll be walking the floors at the Vancouver Cordilleran Roundup and Torontorsquos PDAC in 2016 promoting DEMCo
The Camsell project is where DEMCo is now fully focused but it is also invested in the NWTrsquos prolific diamond fields
In the Lac de Gras region east of the Ekati diamond mine the Fin claim block hosts known diamondiferous kimberlites while the Jen block has six known geophysical targets that have not yet been drilled
The Jaedenz block sandwiched between the Gahcho Kue and Snap Lake mines was explored and drilled by both De Beers and Winspear in the 1990s
JANUARY 2016 CANADIAN MINING JOURNAL | 13
Yellowknife-born Trevor Teed prospector and DEMCo VP of Exploration at the Camsell River properties Photo courtesy of DEMCo LP
Among the available resources combed over by DEMCo were these teetering core racks some dating back decades Photo courtesy of DEMCo LP
Bradenindd 13 2016-01-12 1138 AM
No work was done during the 2015 season and the company has not yet announced whether it will commit anything this year
An Indigenous AdvantageDoes being an Aboriginal-owned venture mean DEMCo will get a better reception from investors or an easier ride through the Northrsquos rocky regulatory regime
ldquoWe havenrsquot really pushed itrdquo says Beaulieu ldquoWersquore focussed on doing our own thing for now It takes time to grasp and understand what is it you have [Wersquore ask-ing] the same type of questions that any junior asks wearing the same boots same gloves We know itrsquos a high-risk business but itrsquos a high reward too Whoever is in there has really got to manage and yoursquove got to be able to sustain your own neck In terms of the regulatory regime that is an independent process we respect it and expect to be treated like everyone elserdquo
In a February 2015 interview with the business magazine Corporate Knights he did allow that having the Dene communities at his own board table gives him a home-court advantage
ldquoI think community engagement is our competitive edge And that edge is available because we are a Northern Dene-owned com-
14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Ground-level (above) and aerial (opposite page) of mill and camp at Terra Silver Mine near Great Bear Lake
Bradenindd 14 2016-01-12 1138 AM
pany And wersquore operating in a territory where indigenous people have a significant influence on our activityrdquo he said
Don Bubar as President and CEO of Avalon Rare Metals Inc and in previous roles with the PDAC is a passionate advocate for indigenous inclusion in Canadarsquos mining sector He believes that future mineral exploration in northern Canada will be led by indig-enous businesses
ldquoIt is natural that this participation would progress from a pas-sive one as a service provider to a more active one as an owner of a mineral development business with title to active projects Darrell Beaulieu and DEMCo are providing the leadership for the Dene Nation in going down this pathrdquo said Bubar in an email
ldquoPart of the challenge the industry faces is simply creating more public awareness of the importance of the industry to the northern economy especially for aboriginal communities Eco-activists have been successful in demonizing the industry in the North DEMCo has a key role to play in changing the perception that mineral exploration and development creates only unwanted environmental impacts without creating significant economic benefits for north-ernersrdquo CMJ
JANUARY 2016 CANADIAN MINING JOURNAL | 15
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FIRST NATIONS and MINING
Bradenindd 15 2016-01-12 1138 AM
COMMUNITY EFFORT HELPSSOLVE FISHWAY PROBLEMBy Russell Noble
PARTNERSHIPA WINNING
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Shannon Haizimsque Chief Operating Officer of the Yinka Dene Economic Limited Partnership the commercial business arm of the Wetrsquosuwetrsquoen First Nations at the Huckleberry Mine site Adjacent photo shows a series of steps lined with geotextiles and anchored with rock fill as part of the minersquos Fish Compensation Plan
Huckleberryindd 16 2016-01-12 1052 AM
Almost everybody associates the name ldquoHuckleberryrdquo with Mark Twainrsquos Huckleberry Finn and his comrade Tom Sawyer but in the mining community Huckleberry is also the name of a Canadian mine that has been in production in northwestern British Columbia
since October 1997 Huckleberry Mines Ltd is an active open-pit coppermolyb-
denum mine located approximately 100km south of Houston BC Production rates (in 2014) were 34 million pounds of copper 2202 ounces of gold and 183218 ounces of silver and like many mines today itrsquos owned by a consortium of companies under one name Huckleberry Mines Ltd (HML) of Vancouver
The mine is owned and operated by Huckleberry Mines Ltd which in turn is owned 50 per cent by Imperial Metals Corporation of Vancouver and 50 per cent by a Japanese consor-tium including Mitsubishi Materials Corporation Dowa Mining Co Ltd and Furukawa Co
Partnering with First NationsSince 2013 Huckleberry Mines Ltd has signed communication amp partnership agreements with five separate First Nations orga-nizations Wetrsquosuwetrsquoen First Nation Cheslatta Carrier Nation Office of Wetrsquosuwetrsquoen Nee Tahi Buhn Indian Band and Skin Tyee Nation
Marke Wong Manager of Environmental amp Community Affairs for Huckleberry Mines Ltd says ldquoThese types of agree-ments have been instrumental in the success of Huckleberry Mine Because of the open dialogue with Indigenous communi-ties we have generated better understanding among all parties and this has increased First Nations access to economic opportu-nities such as job training employment and service contracts and has provided Huckleberry with dedicated community part-ners and a strong reliable work force and able contractorsrdquo
JANUARY 2016 CANADIAN MINING JOURNAL | 17
FIRST NATIONS and MININGHUCKLEBERRY MINE
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For example Wong says Huckleberry works directly with the economic development arm of its partners to provide training jobs and developing on-call labour contracts including the Yinka Dene Economic Development Limited Partnership (YLP) (Wetrsquosuwetrsquoen First Nation) the Nootsenay Enterprises (Cheslatta Carrier Nation) the Hunustrsquo ot en Investment Corp (Nee Tahi Buhn Indian Band) and the Skin Tyee Nation
He says that in 2014 and 2015 the company spent more than 1200 hours of on-the-job training to students and interns from the Wetrsquosuwetrsquoen and Cheslatta Carrier First Nations who recently graduated from the Northwest Community Collegersquos School of Exploration and Mining Environmental Monitoring Assistant Program (EMAP) and other programs
In keeping with Huckleberryrsquos involvement with the commu-nity the company also supports the College of New Caledoniarsquos Mineral Processing Assistants Course by providing instructors on-site mill tours and job opportunities at the mine Several member of the Nee Tahi Buhn Indian Band have been working as on-call positions as environmental monitors and confined space guards in the mill Huckleberry staff regularly respond to community requests to attend speak and sponsor community events such as career days annual meetings mine tours and traditional community gatherings
ldquoDeveloping successful mining arrangements with Indigenous people isnrsquot only about technical astuteness itrsquos about relation-ships reconciliation and the balancing of interestsrdquo says Wong
Itrsquos obvious from these brief examples that Huckleberry Mines Ltd is taking its work with the First Nations seriously but itrsquos more than that
Mike Robertson Chief Policy Advisor Cheslatta Carrier Nation says ldquoIn 2005 the Cheslatta Carrier Nation challenged the mine of its commitment to sound environmental manage-ment During the subsequent 10 years Huckleberry manage-ment and staff committed to engage our people directly in planning and implementing a progressive reclamation program of old mining zone areas and in the development of new zones
Just like the re-vegetated dams and tailings sites our environ-mental relationship has blossomed toordquo
Chief Rene Skin Skin Tyee Nation added ldquoMarke Wong of Huckleberry Mines has participated in our Nationrsquos annual gath-erings including community open houses and cultural camps Hersquos engaged directly with our youth and elders for the past two years He has been diligent in keeping us informed of changes to the on-going miner operation and opportunities for our peoplerdquo
Managing Impacts and Restoring the LandLike all mining therersquos a certain impact to the natural environ-ment and following the closure of a mine there are permanent changes to the landscape The Huckleberry Mine is no exception
Conventional drilling blasting loading and hauling using a combination of electric drills and shovels diesel hydraulic exca-vators and both 100 and 150-ton diesel-powered haul trucks are used to process approximately 17000 tonnes of ore a day
Milling is accomplished by grinding the ore in a 975m diam-eter SAG mill and then through two ball mills The resulting slurry is processed by flotation to produce a concentrate of 27 per cent copper that is subsequently shipped by truck to the port at Stewart for storage and shipment to Japan
Tailings from the milling process is discharged into a tailings management facility and supernatant water is discharged to the aquatic environment through a pipeline to a submersed outfall and diffuser located in Tahtsa Reach part of a man-made hydro-power reservoir developed in the 1950s All water discharged falls within their provincial and federal permit limits
With this comes noise dust and all of the other factors asso-ciated with mining but as mentioned earlier Huckleberry Mines Ltd is aware of the situation and addresses them through its Environment and Community Affairs Program which includes a Fish Habitat Compensation Program
And itrsquos because of its efforts in this area that Huckleberry Mines Ltd recently received the 2014 BC Metal Mine Reclamation Award from the BC Technical Research Committee
Aerial photo of Huckleberry Mine located between Huckleberry Mountain and Tahtsa Reach
Huckleberryindd 18 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 19
on Reclamation (BCTRCR) and the Mining Association of BC (MABC) in recognition for outstanding practices in its fish habitat restoration program a program that actually increased the available fish habitat in the area of the mine as well as its successful relationship building efforts with First Nations
Even before the mine was built the company recognized that its minersquos footprint could have an impact on the available fisher-ies habitat in the area In particular ldquoCreek 4rdquo a known fish-bearing stream was expected to be impacted and so a plan was made to conduct some habitat enhancements in the area
Fisheries surveys conducted by Hatfield Consultants of North Vancouver identified nearby ldquoCreek Mrdquo which at the time was not a fish-bearing stream due to a naturally occurring barrier to fish ndashie a steep gradient reach that stopped any fish from reaching a headwater pond
Huckleberry Minersquos plan involved constructing a series of steps or weirs lined with geotextiles and anchored with rock fill These works were constructed by a team from Cariboo Divers from designs prepared by Hatfield Consultants
Subsequent fish surveys conducted between 2001 and 2011 showed initial success and that adult rainbow trout were present in the headwater pond and juveniles were present in the lower reaches
However subsequent surveys conducted between 2008 and 2011 indicated that the juvenile fish numbers decreased to record lows in 2011 The decline in fish numbers was attributed to failure of the weirs in the lower and middle fishways causing juveniles to become stranded in isolated pools and precluding adults from reaching the preferred spawning habitat between the lower and middle fishways
When initial monitoring of the remediated area in 2013 and 2014 was conducted Environmental Monitoring Assistants from the Yinka Dene Economic Limited Partnership and the Nootsenay Enterprises Ltd were called to assist in the evaluation of the stability of the constructed works as well as presence of fish and the structural integrity of the fishways have remained intact through high-flow periods with no erosion or undermin-ing of the weir structures
Cody Reid Deputy Chief amp Environmental Coordinator Nee Tahi Buhn Indian Band said ldquoThe design construction monitoring and maintenance of the Creek M fishway has led to an overall net increase in fish habitat in the area surrounding the mine in Tahtsa Reachrdquo
And David Belford Mineral and Natural Resources Liaison Officer Wetrsquosuwetrsquoen addedrdquo The HML Environmental team and participating consultants are to be commended on their proactive approach to reclaiming the fish habitat and to increas-ing that habitat within the mine footrdquo
During the 2013 fish survey 39 rainbow trout were captured the largest number of fish observed since 2008 These observa-tions were made even while construction of the middle reach fishways was ongoing
Marke Wong says that Huckleberryrsquos plans are to continue monitoring to confirm the effectiveness of the restoration work including hydraulic functioning physical stability and structural integrity fish distribution and net gain
From the operation of a mine in the mountains to the refur-bishing of a fishway in a local waterway Huckleberry Mines Ltd continues to show its appreciation and respect for the environment and the First Nations communities it works with in British Columbia
Perhaps the most important message for industry is that the example set by Huckleberry Mine and its First Nation commu-nity partners demonstrates that when parties begin to have meaningful dialogue and understanding develops on both sides then the path to cooperation and partnership is open
In the case of Huckleberry Mine this has led to the devel-opment of partnerships that have helped it expand its opera-tions and have help provide support during tough economic times
The nomination of Huckleberry Mines Ltd for the 2014 BC Metal Mine Reclamation Award came from its First Nation Partners because as Chief Karen Ogen said ldquoOur partnership with Huckleberry Mines has made a big difference in our small community Since the 2013 partnership agreement was signed our people have benefitted from jobs training and business opportunities Our experience with Huckleberry has been very positive and we have greatly appreciated Huckleberryrsquos efforts to engage with our community and to work with our business arm the Yinka Dene Economic Partnership The Wetrsquosuwetrsquoen First Nation is very pleased to nominate Huckleberry Mines for this awardrdquo
And lastly Mike Robertson added ldquo The Cheslatta Carrier Nation has been a successful Huckleberry Mines Limited con-tractor on a number of projects including a tailings dam We have our members employed by Huckleberry Mines and we maintain regular contact with its staff and management on all aspects of operations We support the nomination because we are confident they will continue and enhance their innovative and progressive practices of returning the land to a near natural self-sustaining staterdquo CMJ
FIRST NATIONS and MININGHUCKLEBERRY MINE
Material for Huckleberry Minersquos step-building program being delivered to the site by helicopter
Huckleberryindd 19 2016-01-12 1141 AM
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FIRST NATIONS COMPANY PROVIDES VITAL ROADBUILDING SERVICES
TO REMOTE COMMUNITIESStaff Report
REWARDSROADto
Creeindd 20 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 21
FIRST NATIONS and MINING
K imesskanemenow is a Cree word that means ldquoThis is our Roadrdquo a fitting name for the winter road management company that is owned and operated by four northern First Nations Attawapiskat Fort
Albany Kashechewan and Moose Cree Their company Kimesskanemenow Corporation (also
known as K Corp) was founded in 2001 and for the past 15 years has been responsible for building and maintaining the Western James Bay Winter Road (JBWR) which starts in Moosonee and travels 312km up the western coast of James Bay connecting the communities of Fort Albany and Kashechewan and eventually ending at the Attawapiskat First Nation
The road is a lifeline to the remote areas in the James Bay Lowlands of Northern Ontario and without it existing and future development of this part of the country would not be possible
In fact itrsquos thanks to the road that K Corp helped build that companies like De Beers Canada are in the north
As most people know De Beers Canada made international headlines when it built the Victor Mine in 2006 (the first dia-mond mine in Ontario at a cost of about $1 billion) approxi-mately 90km west of the coastal community of Attawapiskat First Nation
Since the open-pit mine began production in 2008 with an annual tonne processing capacity of about 27 million tonnes and an annual carat production capacity of 600000 carats it has proven to be a key to Northern Ontario development and its communities
With an estimated mine life to 2018 the Victor Minersquos ener-gy and equipment needs will continue for at least two more years and according to K Corp cannot be met without the JBWR
Air transport is prohibitively expensive so the winter road is considered by far the most affordable way to supply the remote mine with the necessary 450 loads of cargo and 10 to 11 million litres of diesel fuel that it consumes each year
But the Victor Mine is not the only site that requires a reliable supply of goods and services Similar transportation challenges also face other remote northern First Nations communities that need to truck goods and fuel via seasonal winter roads
With the exception of Moose Cree First Nation which has a railway line to Cochrane air travel is the only transportation available year-round for the three other First Nations which for most community residents is prohibitively expensive
Thanks again to the JBWR it provides a critical socio-eco-nomic tie between the communities as well as a significant source of employment and to keep relationship going Kimesskanemenow Corporation and De Beers Canada have entered into a productive partnership
In 2004 the two parties signed a Winter Road Agreement which was re-negotiated in 2014 Under the agreement De Beers pays the bulk of the costs of the roadrsquos construction and maintenance costs while the balance of the costs are provided by the Provincial and Federal governments
Kimesskanemenow Corporation is guided by three central priorities Building capacity in its communities ensuring that its
member communities receive maximum benefits and mainte-nance of traditional culture which naturally includes environ-mental protection
The company also ensures that money from building and main-taining the road stays in the hands of local First Nation members
To do this the road is constructed and maintained entirely by local community members either as direct employees or through local contractors This has required developing capacity which the company has done through training and education programs
The practical effect of these guiding principals is that during the winter months roughly 200 individuals work on the road helping ensure that the road brings economic benefits to individ-uals families and communities
For many seasonal employment gained through constructing and maintaining the winter road is the only consistently avail-able work in the community Furthermore dividends from the company go back to the hands of the communities to be used as they see fit
Finally Kimesskanemenow Corporation donates to commu-nity-based initiatives that will benefit the communities with each of the four communities allotted an annual amount
Reflecting the corporationrsquos central values the money is used to fund initiatives that benefit youth the environment or main-tain traditional ways of living
One example of the programs that the corporation helps fund is CreeFest a celebration of Cree culture that is held annually in the Mushkegowuk communities
The company also funds the Edward W Chilton scholarship at Northern College in honour of the late Ed Chilton the com-panyrsquos first president The scholarship is awarded to community members to further their education
K Corprsquos list of smaller grants available online include many community and cultural programs that maintain the vitality of all these communities
Kimesskanemenow Corporation maintains an important piece of infrastructure that benefits the communities and allows for the ongoing operation of the Victor Diamond Mine As a cooperative venture the corporation has proven itself to be invaluable to both the communities and the mining company CMJ
Thanks to the efforts of K Corp the Western James Bay Winter Road provides access to the remote areas of Northern Ontario
Creeindd 21 2016-01-12 1052 AM
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It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
WHERE WE STANDSERIOUS QUESTIONS DESERVE SOME SERIOUS ANSWERS Staff Report
I trsquos been just over a year since the Native Womenrsquos Association of Canada (NWAC) received funding from Aboriginal Affairs and Northern Development Canada (AANDC) to identify and ask questions about the barriers
indigenous women face and secondly to get direct and honest answers as to what are the realistic opportunities for them in the mining industry
Basically as the headline says they want to know where they stand insofar as their positions within the mining industry are concerned
The questions NWAC put on the table at a recent forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development dealt with two perspectives the first looked into resource development corporations and sought to understand what these corporations knew about aboriginal women and the second was from aboriginal women and how they viewed the mining industry with regards to economic devel-opment and employment opportunities
The forum was attended by an impressive gathering of female indigenous leaders and representatives from the resource devel-opment sector A full list of the participants is featured in the adjacent box
The intent of the engagementdiscussion session was to initi-ate a constructive dialogue amongst the participants with the overall goal of
s increasing the labour market participation of indigenous women in the resource development sector
s ensuring indigenous womenrsquos voices are heard in the devel-opment of these projects
s sharing of information on the industry and
s discussing the various opportunities and barriers facing indigenous women who wish to work in the industry
A DISTINGUISHED PANEL OF WOMEN ATTEND OTTAWA FORUM
Siobhan Dooley Hatch EngineeringGrant Goddard New Gold Inc (Rainy River Project)Karina Kesserwan Kesserwan (Law ndash Strategy ndash Solutions)Stacey Jack New Gold Inc (Rainy River Project)Christopher Lefebvre Aramark CanadaMireille Pilotte New Millennium IronRachel Pineault Detour Gold CorporationKate Rafter Employment and Social Development CanadaLouise Reid-Schloen Hydro OttawaJamie Saulnier Running Deer ResourcesNancy Veal Resolute Forest ProductsMarilyn Capreol Shawanaga First NationPamela Eyles BC Native Womenrsquos AssociationSusan Forth Shawanaga First NationElize Hartley Ontario Native Womenrsquos AssociationMarian Horne Yukon Aboriginal Womenrsquos CouncilNoreen McAteer Alberta Aboriginal Womenrsquos SocietyVerna Polson Quebec Native Women IncTori-Lynn Wanotch Saskatchewan Aboriginal Womenrsquos Circle CorpBeverly Blanchard Native Womenrsquos Association of CanadaSydney Ducharme Native Womenrsquos Association of CanadaClaudette Dumont-Smith Native Womenrsquos Association of CanadaDan Peters Native Womenrsquos Association of CanadaMerv McLeod McLeod-Wood Associates IncNancy Wood McLeod-Wood Associates Inc
Beverly Blanchard (standing) of the Native Womenrsquos Association of Canada addresses delegates attending a forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development
Women in Miningindd 22 2016-01-12 1053 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 23
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
andor economic opportunitiesFor example when impact benefit agreements (IBAs) are
completed they tend to be locally focused and may not consider indigenous women that do not reside in the community or indigenous individuals who are not members of the particular community
From the indigenous womenrsquos perspective at the forum it was noted that indigenous womenrsquos opinions on the resource devel-opment sector were varied and divergent Like most things in life there were some women who are in favour of the mining industry and there are some who are against it
Many who are against the sector perceived it to be counter to the traditional role of indigenous women as water-keepers and caretakers of Mother Earth but on the other hand research found that there was also a significant percentage of indigenous women who were ambivalent towards the industry
Due to length and detail of the forum (from which this article is based) the information has been drastically reduced to fit the space
For complete details and a copy of the full Bridging the Gap Aboriginal Women and Resource Development Report please contact Beverly Blanchard Strategic Policy Partnership and Planning NWAC Ottawa bblanchardnwacca CMJ
INDIGENOUS WOMEN and MINING
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d e P e n d a B L e P r o J e c t d e v e L o P M e n t
Women in Miningindd 23 2016-01-12 1053 AM
24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
A s probably many of you know times are tough right now Commodity prices are slumping across the board affected by an overall slowing global economy that is being felt throughout Canada
But even during a stubborn downturn in global demand for many minerals and metals itrsquos no time to get down on mining because mining never goes away
Minerals and metals are the very foundation of virtually all of the goods we depend on in our daily lives The world will con-tinue to need mining and Canada can and should continue to be an important place where mining happens
A Look at Market ConditionsSo first how bad is the market
Global economic growth has been volatile in recent years Every time the Bank of Canada the IMF World Bank or others make growth projections it seems they amend them a few months later and always downwards With few exceptions the global economy is not doing well at all
The key economy for the mining sector is China which today consumes almost 50 per cent of the worldrsquos minerals and metals And Chinarsquos growth rate has been slowing along with growth rates in other emerging markets like Brazil Mexico and several Asian and African countries that are also falling
The one major exception is India whose growth is around 75 per cent and with its 13 billion people is seen as the next China in terms of minerals and metals consumption as the coun-try begins to rapidly industrialize
A Bedrock of the Canadian EconomyEven in a slump miningrsquos contribution to Canada is enormous
Despite some job losses at some operations mining and min-eral processing are directly employing more than 375000 Canadians including well over 10000 Indigenous Canadians paying the highest average industrial wage in the country Mining remains proportionally the largest employer of indige-nous Canadians
Mining accounts for roughly 20 per cent of the overall value of Canadian exports valued at nearly $90 billion
Nationally we pay an average of $38 billion annually in corporate taxes and royalties to federal provincial and territorial governments
Mining companies are also paying significant royalties to indig-enous communities across the country indirectly through govern-ment resource revenue sharing and in some cases directly
Wersquore also supporting the second largest mining-supply sector in the world More than 3700 companies provide a wide spec-trum of services to the Canadian mining industry with an increasing number of these being indigenous-owned businesses
A major challenge facing mining in Canadarsquos north today is its lack of infrastructure The north is our industryrsquos future but the territories and the northern parts of our provinces lack criti-cal infrastructuremdashroads electricity ports railwaysmdashto service mines and get products to market
This lack of infrastructure is felt by communities many of them indigenous located in the north
According to the Mining Association of Canadarsquos (MAC)
MINING AND INDIGENOUS PEOPLES CANADArsquoS FUTURE By Pierre Gratton
Delegates attending the 23rd Annual Conference of the Canadian Aboriginal Minerals Association in Vancouver listen to talks during the three-day event
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 24 2016-01-12 1054 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 25
FIRST NATIONS and MINING
research it costs about 2 to 25 times as much to build and operate a gold and base metal mine in northern Canada off grid than in the south
We should be looking at ways to level the playing field in the north where infrastructure is lacking Canada needs a strategic collaboration involving industry and governments federal pro-vincial territorial and Indigenous to get this nation-building infrastructure in place
This can be done by increasing government investment in new infrastructure or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good
Additionally there is the issue of indigenous rights and title and how this affects the project certainty
Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and if necessary accommo-dated for activities on traditional indigenous territories affects project timelines and certainty
Connected to this is the concept of social license which in general terms defines the support earned by proponents to pro-ceed with and operate their project
The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects
That is a very complex issue The Supreme Court of Canada in its recent decision on the
Tsilhqotrsquoin First Nationrsquos claim recognized indigenous title a first in Canadian law
It also provided clear guidance on the criteria needed to demonstrate title and on the rights and obligations that flow from that in the process also identifying where title was found not to exist
It is a significant decision that provides us all with much more clarity going forward
But back to the question of the vetoThe Court clearly recognizes that in some circumstances the
right to title can be limited by the Crown So there is no abso-lute veto under Canadian law even in the case where title has been proven
But for the Crown to place limits on indigenous title it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead ndash a very significant test
At its core the decision continues a balancing act between empowering and limiting the authority of both indigenous peo-ples and governments The Court was very wise
So what does this mean for proponents There is the law and then there is reality No proponent
wants or should want to build a project that is unwelcome or opposed by local communities This is quite frankly an unsus-tainable option and one best avoided And most communities are open to the opportunities mining brings and increasingly so
Letrsquos look at reality in a different way
Today there are more than 250 agreements between mining companies and indigenous communities across the country It is decidedly rare that projects proceed without impact benefit or other such agreements concluded
These agreements which have matured with time and experi-ence provide significant local benefits and assurances including
Commitments on business procurement and often assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide
Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight
Support for skills training and mentoringDirect economic or financial benefitsSome of these agreements are transforming communities in
very significant waysNewgoldrsquos New Afton project in Kamloops is one such exam-
ple The diamond mines in the NWT are others as is Voiseyrsquos Bay We are seeing high levels of indigenous participation as high as 60 per cent in the case of Voiseyrsquos Bay increasing levels of post-secondary education and significantly improved eco-nomic and social outcomes
Nonetheless it is undeniable that the negotiation of these agreements takes time Trust must be built between the parties and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the pro-posed mine prior to it proceeding
Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association Photo by Tracey Sanders Photography
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 25 2016-01-12 1054 AM
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
AME BCindd 27 2016-01-12 110 PM
28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Nfld Reportindd 30 2016-01-12 1055 AM
Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
PROFESSIONAL DIRECTORYA
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DMC Mining33 wwwdmcminingcom
Stu Blattner 33 wwwstublattnercom
Hard-Line35 wwwhard-linecom
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ROBERT SEAGRAVES 416-510-6891 Fax 416-447-7658 rseagravescanadianminingjournalcom
JOELLE GLASROTH 416-510-5104 Fax 416-447-7658
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W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
- 002
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- 004
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- 006
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We are proud to partner with Aboriginal communities and companies to develop innovative outreach and engagement programs across Canada By working together we can build sustainable solutions for our clients in the mining and metals energy and infrastructure sectors
To learn more about how Aboriginal communities and Hatch are partnering to create positive change visit hatchca
E N G I N E E R I N G bull C O N S U LT I N G bull P R O J E C T D E L I V E RY bull T E C H N O L O G I E S bull O P E R AT I O N A L P E R F O R M A N C E
Building a stronger futuremdashtogether
HatchAdindd 2 2016-01-12 1041 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 3
For More InformationPlease visit wwwcanadianminingjournalcom for regular updates on whats happening with Canadian mining companies and their personnel both here and abroad A digital version of the magazine is also available at wwwdigitalcanadianminingjournalcom
Coming in FebruaryCanadian Mining Journal features Mining in Ontario plus its PDAC Issue
ABOUT THE COVER
This monthrsquos cover photo of Mark Amarok Chesterfield Inlet Nunavut by Dave Brosha Photography Long Creek PEI
January 2016
c a n a d a rsquo s f i r s t m i n i n g p u b l i c a t i o n
wwwcanadianminingjournalcom
A CLOSE LOOK AT FIRST NATIONS amp MINING RELATIONS
JOURNEYA TOUGH
FEATURESFIRST NATIONS AND MINING RELATIONS8 THE ENVIRONMENTConcern for ldquoThe Environmentrdquo is one of the many things that both the First Nations and the Canadian Mining Industry have in common
10 FIRST NATIONS MINER Indigenous Junior Miner takes aggressive leap into ownership of NWT mining company
16 PARTNERING HELPS SAVE FISHERIES BC mining company partners with five Indigenous communities to help protect aquatic environment near mine
20 INDIGENOUS ROAD BUILDERS PROVIDE VITAL LINK First Nations company keeps vital road into Ontario diamond mine safe and open year round
22 INDIGENOUS WOMEN ASK QUESTIONS Itrsquos been a year since the Native Womenrsquos Association of Canada was formed and during that time theyrsquove taken a serious look at job opportunities in the mining industry
24 THE MINING ASSOCIATION OF CANADArsquoS PERSPECTIVE MAC President and CEO Pierre Gratton addresses the Canadian Aboriginal Minerals Associationrsquos 23rd Annual Conference in Vancouver and ldquoMining and Indigenous Peoples Canadarsquos Futurerdquo
COAST-TO-COAST-TO-COAST REVIEW27 MINERAL EXPLORATION amp DEVELOPMENT IN THE WESTAn overview of activities on the west coast of Canada provided by the Association of Mineral Exploration British Columbia (AME BC)
28 MINERAL EXPLORATION amp DEVELOPMENT IN THE EASTAn overview of activities on the east coast of Canada provided by the Department of Natural Resources Government of Newfoundland and Labrador
DEPARTMENTS5 EDITORIALLike most January issues of magazines the editorials focus on the year ahead and Canadian Mining Journal is no exception This month Editor Russ Noble talks about the sad situation the mining industry is in but goes one step further to talk about The Environment too and how itrsquos being equally challenged by these tough times
6 LAWJames Clare a Partner with the Toronto-based law firm of Bennett Jones looks at the TSX Venture Exchangersquos response to the commodities slump
7 FIRST NATIONSA regular column by First Nations of Ontario
8 CSR amp MININGA regular column by Michael Torrance a lawyer in Norton Rose Fulbrightrsquos Toronto office on Corporate Social Responsibility
34 UNEARTHING TRENDSBruce Sprague a Partner and EYrsquos Canadian Mining amp Metals Leader Vancouver looks at First Nationsrsquo women as an untapped resource and possible solution to Canadarsquos skilled labour shortage
wwwcanadianminingjournalcom
CANADIANCANADIANMining JournalMining Journal
8
10
16
JANUARY 2016 VOL 137 NO 1
Contentsindd 3 2016-01-12 1042 AM
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CAMHAdindd 4 2016-01-12 1042 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 5
CANADIANCANADIANMining Journal
Established 1882
Canadian Mining Journal provides articles and information of practical use to those who work in the technical administrative and supervi-sory aspects of exploration mining and processing in the Canadian mineral exploration and mining industry Canadian Mining Journal (ISSN 0008-4492) is published 10 times a year by BIG LP Mining BIG is located at 38 Lesmill Rd Unit 2 Toronto ON M3B 2T5 Phone (416) 510-6891
Legal deposit National Library Ottawa Printed in Canada All rights reserved 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 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 please contact Russell Noble at 416-510-6742
Subscriptions mdash Canada $4795 per year $7695 for two years USA US$6095 per year Foreign US$7295 per year Single copies Canada $10 USA and foreign US$10 Canadian subscribers must add HST and Provincial tax where necessary HST registration 809744071RT001
From time to time we make our subscription list available to select companies 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 of the following methods Phone 1-888-502-3456 ext 2 Fax 416-447-7658 E-mail cholderglacier-bizinfocom Mail to Cindi Holder BIG Mining LP 38 Lesmill Rd Unit 2 Toronto ON M3B 2T5
We acknowledge the financial support of the Government of Canada through the Canada Magazine Fund toward our editorial costs
January 2016 Vol 137 mdash No 1 38 Lesmill Rd Unit 2 Toronto Ontario M3B 2T5 Tel (416) 510-6789 Fax (416) 447-7658 wwwcanadianminingjournalcom
Editor Russell B Noble 416-510-6742 rnoblecanadianminingjournalcom
Field Editor Marilyn Scales 613-270-0213 mscalescanadianminingjournalcom
Production Manager Jessica Jubb
Circulation Manager Cindi Holder 416-510-6789 ext 43544 cholderglacierbizinfocom
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Toll Free Canada amp USA 1-888-502-3456 ext 2 or 43734
Group Publisher Anthony Vaccaro
EDITORIAL
By Russell Noble
ldquoNo workrdquo is the least of our worries
Now that wersquore heading into what forecasters say will be another dismal year itrsquos hard to get excited about the months ahead knowing wersquore going to continue hearing more about layoffs care and maintenance and worst of all outright closures
After the past couple of years of what the industry has experienced the words ldquoThey Shoot Horses Donrsquot Theyrdquo the title of Horace McCoyrsquos 1935 novel and later of a 1969 movie by the same name starring Jane Fonda pretty much describes the lsquoput me out of my miseryrsquo feeling that many in the mining industry are feeling
But like all doom-and-gloom stories therersquos usually something good to say and thank-fully and somewhat surprisingly thatrsquos where the theme of this issue ldquoFirst Nations and the Canadian Mining Industryrdquo comes in with a lsquopositiversquo message thatrsquos encouraging for almost all miners
As both sides of the fence have known for years the words ldquoFirst Nationsrdquo and ldquoMiningrdquo havenrsquot necessarily homogenized to make for a creamy-smooth feeling towards the use of lands and the extraction of the minerals they contain
In fact itrsquos safe to say that itrsquos been an oil-and-water relationship for centuries but like I just said things are looking a little more positive thanks to the recent emergence and under-standing that therersquos far more at stake than territorial lands and their contents
The Environment is something that almost everyone now agrees is far more important than quibbling over boundaries and minerals because as witnessed at the recent World Climate Summit in Paris France where even the United States Russia and China agreed on climate-change issues Mother Nature has been beaten to her knees because of emissions from the industrialized world
And admit it or not the resources industry is partly to blame for the mess of the worldBut to get back to my point of First Nations and Mining Industry relations the recent
federal election and the subsequent meeting of Prime Minister Trudeau with the Assembly of First Nations was a decade-late meeting that at least showed that the federal government was about to listen to the ldquocanaries of the coal minerdquo as First Nations communities were described at a recent conference in Vancouver because ldquotheyrsquore out there to warnrdquo
Those phrases were used during one of the presentations at the Canadian Aboriginal Minerals Associationrsquos three-day conference where more than 500 delegates from across the country heard speakers from First Nations and mining companies alike talk about a num-ber of things and in almost every case The Environment was mentioned
It was a common thread throughout the Conference and regardless of who was speak-ing the message was clear itrsquos time to clean up our act
And the ldquoourrdquo was collective and not directed at any one group because as everyone in the room agreed the issue at hand (The Environment) was far more important than terri-torial rights and mining privileges
As I quoted at the outset ldquoThey Shoot Horses Donrsquot Theyrdquo and unless everyone pulls together and that certainly means First Nations and the Mining Industry then the forecast-ers I mentioned earlier will be predicting dismal times far beyond the coming year CMJ
Editorialindd 5 2016-01-12 1139 AM
In 2015 Canadarsquos junior stock exchange the TSX Venture Exchange sunk to levels that a few years ago would have been inconceivable This drop caused primarily by the sustained slump in commodities led the SampPTSX Venture
Composite Index to sink below 500 points for the first time since the TMX group bought the Canadian Venture Exchange in 2001 The low point represents a 29 drop from where the TSXV started at the beginning of 2015 and a staggering 85 drop from its peak in 2007
A primary cause of the exchangersquos poor performance has been the extremely challenging market conditions facing extractive resource issuers At present more than 70 of the companies listed on the exchange operate within the mining or energy sec-tor After a two plus year depression in mining equities com-bined with weak prices for most metals as well as well as hydro-carbon products junior resource issuers have fallen out of favour with investors
TSXV White PaperThe TSXV conscious of the market realities facing its issuers and with the aim of attracting new investment conducted a lengthy consultation process with clients and stakeholders These consultations focused on identifying new initiatives to respond to realities facing its listed issuers and other market participants in light of the sluggish capital market conditions The outcome of the consultations was a White Paper issued on December 17 2015 It contains proposed broad based reforms to various TSXV rules policies and strategies aimed at fostering renewed interest in the exchange and its services The full text can be found at httpswwwtsxcomresourceen1252
The recommendations of the White Paper were synthesized into a three-pronged strategic reform program The first and second prongs of this program are particularly relevant for cur-rent and potential resource based issuers
Cost of complianceThe first prong of the program focuses on reducing the cost of compliance a primary area of concern for most resource issuers The White Paper proposes a number of rule changes including
s eliminating the general requirement for sponsorship of new issuers undertaking a reverse takeover (RTO) change of
business (COB) or other business combinations narrowing the application of shareholder approval require-
ments for inactive issuers undertaking an RTO or COBs implementing a director and officer ldquoNEXUS-typerdquo status
certification program to reduce or eliminate ongoing require-ments for certain individuals
s extending the shelf life of on-file personal information forms for directors and officers from three to five years
eliminating escrow requirements that overlap with similar requirements of the Canadian Securities Administrators
s implementing an automated system for transaction filing and accelerating response times to speed up overall transaction processing
Attracting new capitalThe second prong of the White Paperrsquos strategic reform pro-gram focuses on attracting new and more diverse capital to the TSXV The initiatives proposed under this prong are less tech-nical and less defined than those proposed under the first prong but include commitments to undertake active and ongoing promotion of TSXV-listed issuers through roadshow presentations to fund managers retail investors investment advisors and banks and research analysts instituting an ongo-ing streaming summary service of available public offerings and introducing a new market making program to be adminis-tered by the exchange
TSXV seeking feedbackWhile the exchange has committed to implementing the above listed reforms under an ldquoaggressive timelinerdquo prior to doing so it plans to host a series of town hall meetings where it will entertain feedback on the strategy and proposed initiatives In the coming months existing issuers and other interested parties who may be impacted by these reforms should carefully monitor the develop-ments and provide feedback as appropriate
Whether these initiatives will be successful in achieving their intended results remains to be seen but given the extremely challenging market environment for resource issuers the pro-posed reforms should be implemented efficiently and effectively to reduce the headwinds facing junior issuers CMJ
JAMES CLARE is a partner with Bennett Jones in Toronto
LAW
By James Clare
TSXV response to commodities slump
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Lawindd 6 2016-01-12 1043 AM
T he Truth and Reconciliation Commissionrsquos six-vol-ume 23-million-word final report was issued on December 15 2015 It not only contains stories from survivors of residential schools but a set of 10 guid-
ing principles and 94 recommendations or Calls to Action While the federal provincial and territorial governments
must act upon the majority of the 94 recommendations there are also recommendations for all sectors of society including the churches media arts academia and industry
For example the churches now have less than 90 days before issuing a joint statement by March 31 2016 on how they will implement the spiritual and religious components of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP)
The churches must also reject the concepts ndash such as ldquoterra nullisrdquo and the Doctrine of Discovery -- used by the church and state to assert sovereignty over Indigenous peoples and their lands
However I must point out that First Nations do not expect industry to atone for the sins of the past But we do however expect to be treated as equals and as the rightful owners of the land
Mining companies in Canada must recognize and acknowl-edge the era of Reconciliation as common place in all of its dealings with First Nations as it relates to mining exploration development extraction and remediation This also includes training and educating management and staff on First Nation history culture human rights and anti-racism
Here are some key points to consider s The Truth and Reconciliation process is becoming an institu-
tion in Canada that will inspire and influence positive approaches to relationships between Canada and its First Peoples
s Implementing the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) and respecting Treaties is a major focus within the TRC Calls for Action
s Business and industry in all Canadian sectors are being prompted by the TRC Report to become aware of the report and make efforts to build bridges This will close the divide between First Nations and Industry that was created as a
result of ignorance of history of Canadarsquos Indian Residential School past
s First Nations deep connection to the land is evident in lan-guage culture and world view ndash this is a key focus in many of the calls for action
s The respect and responsibilities that First Nation peoples have for the land is an important element to the process of Reconciliation that is now being recognized by federal juris-diction As noted in the 2015 Speech from the Throne the environmental assessment process will soon become formal-ized adding First Nations to the decision-making process as it pertains to the protection of the environment
s Benefits to First Nations regarding mining development are also a key factor in reconciliation The era of sealing a deal solely with an IBA (Impact Benefit Agreement) is a thing of the past First Nations seek to take on their roles as govern-ments beneficiaries and providers for their people
s The lsquoReconciliation Lensrsquo can be a way for industry to create stronger relations avoid conflicts build strong business partner-ships and help achieve collective prosperity with First Nations In conclusion here are four key messages that sum up the
outcomes from acting upon Reconciliation and forming a new relationship with our Peoples 1 Reconciliation can be a benefit to building strong mining
partnerships with First Nations2 Reconciliation as a policy approach for mining companies
will expedite relationship-building beyond most conflicts that arise out of resisting First Nation history and Cultural competence
3 The cost benefit to a Reconciliation approach in the mining industry is invaluable
4 Reconciliation in Canadian mining can cultivate a social con-sciousness that could define the industry as a 21st century legacy maker
I look forward to continued dialogue with the mining indus-try as we work together on making 2016 a breakthrough year for positive change Together we will build a better more inclusive Canada for our children and future generations CMJ
By Ontario Regional Chief Isadore Day Wiindawtegowinini
Mining must includeTruth amp Reconciliation
FIRST NATIONS
JANUARY 2016 CANADIAN MINING JOURNAL | 7
First Nationsindd 7 2016-01-12 1043 AM
8 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
NMENTENVIROTHE
Pho
to
Thin
ksto
ckc
om
THE WORLD AGREES ENOUGH IS ENOUGHBy Russell Noble
FN Introindd 8 2016-01-12 1044 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 9
NMENTENVIROMother Nature canrsquot take it much longer
E ver since John Cabot landed in Newfoundland in 1497 and started trekking westward into the unknown exploration and later development has left its mark on The Environment
In fact itrsquos left more than a mark itrsquos scarred the earth forev-er thanks to an unquenchable thirst for discovery but like it or not the world wouldnrsquot be what it is today if not for yesterdayrsquos adventurers
Regardless of how appreciative we are to John Cabot and The Vikings before him Mother Nature has taken the brunt of their quests through the loss of trees the displacement of wildlife polluted waterways and often the disappearance of fish and most recently in the news air quality because of toxic emissions resulting in climate changes
In just over 500 years the world has gone from pristine to polluted and it wasnrsquot until recently when the ldquoWorld Leaders Unanimously Agreedrdquo at the United Nationsrsquo Climate Summit in Paris France that everyone became more aware of the fact that the world has had enough it canrsquot take any more
And thatrsquos when The Environment started receiving the worldwide attention it deserves
ldquoAnd itrsquos about timerdquo says The Assembly of First Nations of
Canada and the 634 bands it represent across the country because thatrsquos what indigenous people from coast-to-coast-coast want mosthellip a clean safe and bountiful place to live and work
As one delegate attending the 23rd Annual Canadian Aboriginal Minerals Associationrsquos meeting in Vancouver said late last year ldquoWersquore the canaries in the coal mines wersquore out there to warnrdquo
Philosophical yes straightforward no question but more-over it was a sincere and insightful message that Federal Indigenous Affairs Minister Carolyn Bennett later echoed by saying ldquoThere is every evidence Canadarsquos Aboriginal Peoples are indeed on the front lines of climate changerdquo
As already mentioned concern for the well being of The Environment is a centuries-old topic for discussion and when you look at the photo on these pages itrsquos hard to understand how mankind can do what itrsquos doing to endanger such perfection
But it is and doing so at such an alarming rate that no matter what the 197 world leaders agreed to in Paris last year scenes like this are being threatened around the world every day and unless we take The Environment seriously future generations will have only photographic images of the lsquoWay We Werersquo
Thankfully both the First Nations and the Canadian Mining Industry are two groups working on improving the lsquoWay We Arersquo so that future generations donrsquot have to look back on refer-ence material to see how things used to be
Stories on the following pages take a closer look at First Nations and Mining Relations and how theyrsquore working in har-mony and in the best interest of everyone and everything involved CMJ
FIRST NATIONS and MINING
FN Introindd 9 2016-01-12 1044 AM
NWT INDIGENOUS JUNIOR MINER ANTES UP IN ITS AGGRESSIVE LEAP INTO OWNERSHIP IN MINING ECONOMY
By Northern Correspondent Bill Braden
BOLD amp BRAVE
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T wo years ago the Dene of the NWT bold-ly jumped into the dragonrsquos jaw and launched their own mining company
The targets significant polymetallic potential near Great Bear Lake and dia-monds near the Ekati and Snap Lake mines
The vision be more than a source of labour and supplier of services to other miners They want to be
their own stand-alone producer among the first in Canada to pursue indigenous mine ownership
Wait a minute Arenrsquot First Nations usually railing against resource development the constant thorn in miningrsquos side And in the face of NWTrsquos gnarly record as a high-risk mining envi-ronment with dwindling exploration and labyrinthine regula-tions what is driving a home-grown indigenous company to do this in the first place
Aerial photo of the mill and camp at Terra Silver Mine abandoned near the south shore of Great Bear Lake since 1985 Photo courtesy of DEMCo LP
Bradenindd 10 2016-01-12 1138 AM
ldquoThe main thing is people want to participate and take ownership Itrsquos coming from the simple statements that have been made at the Dene Nation assemblies for yearsrdquo says Darrell Beaulieu the President and CEO of Denendeh Investments Incorporated (DII) and its latest ven-ture DEMCo Ltd
ldquoNo one ever said we are against business or development We said we want to be participants in development meaningful participantsrdquo
To a considerable extent that has indeed been the case in the NWT Beaulieu points to the prosperous part-nerships among more than 60 NWT indigenous businesses and diamond giants De Beers Dominion and Rio Tinto
Between 1996 and 2011 $42 bil-lion or 33 per cent of their northern spend was with indigenous companies and almost 9500 person years of employment were filled by indigenous workers in that period about 25 per cent of the total labour quantum
But he wanted to go beyond the jobs and servicesupply deals and take the ambitious jump to the equity level The current slump in mining activity and eroding values on existing properties gave momentum to Beaulieursquos plan to create DEMCo in the spring of 2013
ldquoSo the timing to pick up properties andor junior mining companies is upon usrdquo said DIIrsquos website at the time
JANUARY 2016 CANADIAN MINING JOURNAL | 11
FIRST NATIONS and MINING
Darrell Beaulieu CEO of DEMCo LP and this yearrsquos winner of the Skookum Jim Award from PDAC for outstanding achievement and contribution to mining by an aboriginal group or individual
Bradenindd 11 2016-01-12 1138 AM
12 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It continued on a note of high optimism ldquoThe silver lining to present and initiate a Denendeh exploration and mining compa-ny at this time may help create momentum for fundamental change in First Nation participation in resource development in the Northwest Territories and Canadardquo
The soft-spoken Beaulieu 58 is an Akaitcho Dene born and raised in Yellowknife who has earned numerous accolades for his leadership The most recent is the 2016 Skookum Jim Award from the Prospectors and Developers Association of Canada acknowledging significant achievement and contribution to mining by an indigenous group or individual
Hersquos is no stranger to indigenous and northern corporate governance Hersquos a three-time Chief of the Yellowknives First Nation and has held directorships with Northland Utilities the NWT Business Development and Investment Corporation and numerous industry associations
And hersquos no stranger to mining either as one of his first jobs was with Noranda Exploration doing EM surveys mapping prospecting claim staking and general exploration work
Beaulieu has been an influential advocate for Dene invest-ment through the parent group Denendeh Investments Limited Partnership an alliance of 27 First Nations communi-ties across the NWT It boasts a diverse portfolio including oil and gas drilling services electric utilities communications real estate and now exploration and eventually mining
Optimistic StartTo get DEMCo set up Beaulieu hired Yellowknife prospector
Trevor Teed into the shop as exploration vice president Teed brought with him a hunch hersquod been plugging away at for almost two decades the potential for a new discovery in the Camsell River region southeast of Great Bear Lake directly under four historic silver producers that operated from the 1960s to 1985
rdquoI suggested to him that the potential for IOCG (iron oxide-copper-gold) is what attracted me to it not silverrdquo says Teed ldquoDarrell agreed and despite the initial doubt of two of our three contract geologists our initial thoughts have been proven and there is IOCG at Camsell Riverrdquo
ldquoFirst it was kind of a desktop jobrdquo says Beaulieu ldquoThe data was all over the place We had to go to the United Sates Alberta BC the Geoscience office here in Yellowknife personal homes and at site too it was amazing where all the data ended up after 30 yearsrdquo
They resampled thousands of metres of decades-old core at site (that saved millions of exploration dollars) The results first disclosed in late 2014 proved out their early optimism
ldquoBack in the 70s they were only looking for silver We looked at the core and did some more prospecting and we found that hey therersquos a lot of gold there Whatrsquos more after our first field season was confirmation therersquos a huge magnetic body there also It looks like we have an IOCG depositrdquo
Beaulieu is too savvy to get excited at this point but polymet-alic IOCG deposits (Australiarsquos mammoth Olympic Dam is one) can be truly massive The discovery of the zone estimated roughly at some seven by 16 kilometres in size was first announced in late 2014
Teed says he had taken his hunch to other miners but credits Beaulieu with the vision and the belief to carry it forward His investigation so far has uncovered an extensive magnetic zone under the old silver digs
ldquoIt is a significant event I think that when the rest of Canada catches up to what we have wersquore going to see significant explo-ration again in the areasrdquo predicts Teed
That significance is backed up by mapping and geophysical
Noel Michel of Lutsel Krsquoe takes a break during a prospecting trip near Great Bear Lake Photo courtesy of DEMCo LP
DEMCo Exploration Vice-president Trevor Teed CEO Darrell Beaulieu and COO Margaret Gorman billbradenphoto
Bradenindd 12 2016-01-12 1138 AM
work carried out by the Geological Survey of Canada and the NWT Geological Survey over the past decade
Geologist Scott Cairns Manager of Bedrock Mapping and Mineral Deposits at the NTGSrsquos Yellowknife office says the historic production of silver and uranium is indicative of larger polymetallic IOCG deposits in the Great Bear magmat-ic zone
ldquoThey are definitely in a high mineral potential area thererdquo says Cairns adding that DEMCorsquos claims are at the north end of that zone while Fortune Mineralrsquos NICO project about 200km to the south is on its southern edge
Cairns says federal GSC geologists have recently completed a large study of alterations that can help identify IOCGs ldquoSo therersquos an enormous volume of work of geophysical characterisa-tions ways to track down where these potentially valuable deposits might be hiddenrdquo he says
DEMCorsquos IOCG discovery has not sparked any new rush of interest in the region But on a territory-wide basis says Cairns the number of inquiries website and office visits to his library and data bases has been spiking in the past few months
ldquoI think what wersquore seeing is that while itrsquos difficult to fund boots-on-the-ground exploration companies are doing their homework right now and will be using that when conditions improverdquo
In The GameAs of late December 2015 DEMCo was fully engaged in plan-ning the 2016 field program which Beaulieu hopes will include airborne geophysical work as well as more ground sampling They will spin off another subsidiary Camsell River Minerals Ltd to carry the project
But just like any other junior the team will be out there looking for private cash during one of the metal marketrsquos deepest and most prolonged slumps
And predictably thatrsquos not the only hurdle The claim block is within an overlapping boundary of both the Tlicho and Sahtu land claim regions
The four old mines on the claim block are among dozens across the NWT deemed for rehabilitation by the federal govern-ment There is an existing airstrip but land access would largely be on the historic Denison Ice Road from Behchoko first opened in the 1960s but dormant for 30 years
Yet another layer is working with the NWT Government as it gets used to managing the mines portfolio after its transfer from Ottawa to the NWT in April of 2013
And because DEMCorsquos parent corporation is governed by an alliance of all NWTrsquos First Nations - and itrsquos their money thatrsquos at risk - Beaulieu also has to satisfy a board that isnrsquot all that familiar with being on the investor side of the mining equation
Was it a hard sell to get his board on side in the first place No says Beaulieu pointing to DIIrsquos investment of about $2
million in cash and time to date ldquoThe hard sell is going to be finding the money to add value without diluting too muchrdquo
He says hersquoll be walking the floors at the Vancouver Cordilleran Roundup and Torontorsquos PDAC in 2016 promoting DEMCo
The Camsell project is where DEMCo is now fully focused but it is also invested in the NWTrsquos prolific diamond fields
In the Lac de Gras region east of the Ekati diamond mine the Fin claim block hosts known diamondiferous kimberlites while the Jen block has six known geophysical targets that have not yet been drilled
The Jaedenz block sandwiched between the Gahcho Kue and Snap Lake mines was explored and drilled by both De Beers and Winspear in the 1990s
JANUARY 2016 CANADIAN MINING JOURNAL | 13
Yellowknife-born Trevor Teed prospector and DEMCo VP of Exploration at the Camsell River properties Photo courtesy of DEMCo LP
Among the available resources combed over by DEMCo were these teetering core racks some dating back decades Photo courtesy of DEMCo LP
Bradenindd 13 2016-01-12 1138 AM
No work was done during the 2015 season and the company has not yet announced whether it will commit anything this year
An Indigenous AdvantageDoes being an Aboriginal-owned venture mean DEMCo will get a better reception from investors or an easier ride through the Northrsquos rocky regulatory regime
ldquoWe havenrsquot really pushed itrdquo says Beaulieu ldquoWersquore focussed on doing our own thing for now It takes time to grasp and understand what is it you have [Wersquore ask-ing] the same type of questions that any junior asks wearing the same boots same gloves We know itrsquos a high-risk business but itrsquos a high reward too Whoever is in there has really got to manage and yoursquove got to be able to sustain your own neck In terms of the regulatory regime that is an independent process we respect it and expect to be treated like everyone elserdquo
In a February 2015 interview with the business magazine Corporate Knights he did allow that having the Dene communities at his own board table gives him a home-court advantage
ldquoI think community engagement is our competitive edge And that edge is available because we are a Northern Dene-owned com-
14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Ground-level (above) and aerial (opposite page) of mill and camp at Terra Silver Mine near Great Bear Lake
Bradenindd 14 2016-01-12 1138 AM
pany And wersquore operating in a territory where indigenous people have a significant influence on our activityrdquo he said
Don Bubar as President and CEO of Avalon Rare Metals Inc and in previous roles with the PDAC is a passionate advocate for indigenous inclusion in Canadarsquos mining sector He believes that future mineral exploration in northern Canada will be led by indig-enous businesses
ldquoIt is natural that this participation would progress from a pas-sive one as a service provider to a more active one as an owner of a mineral development business with title to active projects Darrell Beaulieu and DEMCo are providing the leadership for the Dene Nation in going down this pathrdquo said Bubar in an email
ldquoPart of the challenge the industry faces is simply creating more public awareness of the importance of the industry to the northern economy especially for aboriginal communities Eco-activists have been successful in demonizing the industry in the North DEMCo has a key role to play in changing the perception that mineral exploration and development creates only unwanted environmental impacts without creating significant economic benefits for north-ernersrdquo CMJ
JANUARY 2016 CANADIAN MINING JOURNAL | 15
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Consider it done
FIRST NATIONS and MINING
Bradenindd 15 2016-01-12 1138 AM
COMMUNITY EFFORT HELPSSOLVE FISHWAY PROBLEMBy Russell Noble
PARTNERSHIPA WINNING
16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Shannon Haizimsque Chief Operating Officer of the Yinka Dene Economic Limited Partnership the commercial business arm of the Wetrsquosuwetrsquoen First Nations at the Huckleberry Mine site Adjacent photo shows a series of steps lined with geotextiles and anchored with rock fill as part of the minersquos Fish Compensation Plan
Huckleberryindd 16 2016-01-12 1052 AM
Almost everybody associates the name ldquoHuckleberryrdquo with Mark Twainrsquos Huckleberry Finn and his comrade Tom Sawyer but in the mining community Huckleberry is also the name of a Canadian mine that has been in production in northwestern British Columbia
since October 1997 Huckleberry Mines Ltd is an active open-pit coppermolyb-
denum mine located approximately 100km south of Houston BC Production rates (in 2014) were 34 million pounds of copper 2202 ounces of gold and 183218 ounces of silver and like many mines today itrsquos owned by a consortium of companies under one name Huckleberry Mines Ltd (HML) of Vancouver
The mine is owned and operated by Huckleberry Mines Ltd which in turn is owned 50 per cent by Imperial Metals Corporation of Vancouver and 50 per cent by a Japanese consor-tium including Mitsubishi Materials Corporation Dowa Mining Co Ltd and Furukawa Co
Partnering with First NationsSince 2013 Huckleberry Mines Ltd has signed communication amp partnership agreements with five separate First Nations orga-nizations Wetrsquosuwetrsquoen First Nation Cheslatta Carrier Nation Office of Wetrsquosuwetrsquoen Nee Tahi Buhn Indian Band and Skin Tyee Nation
Marke Wong Manager of Environmental amp Community Affairs for Huckleberry Mines Ltd says ldquoThese types of agree-ments have been instrumental in the success of Huckleberry Mine Because of the open dialogue with Indigenous communi-ties we have generated better understanding among all parties and this has increased First Nations access to economic opportu-nities such as job training employment and service contracts and has provided Huckleberry with dedicated community part-ners and a strong reliable work force and able contractorsrdquo
JANUARY 2016 CANADIAN MINING JOURNAL | 17
FIRST NATIONS and MININGHUCKLEBERRY MINE
Huckleberryindd 17 2016-01-12 1052 AM
18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
For example Wong says Huckleberry works directly with the economic development arm of its partners to provide training jobs and developing on-call labour contracts including the Yinka Dene Economic Development Limited Partnership (YLP) (Wetrsquosuwetrsquoen First Nation) the Nootsenay Enterprises (Cheslatta Carrier Nation) the Hunustrsquo ot en Investment Corp (Nee Tahi Buhn Indian Band) and the Skin Tyee Nation
He says that in 2014 and 2015 the company spent more than 1200 hours of on-the-job training to students and interns from the Wetrsquosuwetrsquoen and Cheslatta Carrier First Nations who recently graduated from the Northwest Community Collegersquos School of Exploration and Mining Environmental Monitoring Assistant Program (EMAP) and other programs
In keeping with Huckleberryrsquos involvement with the commu-nity the company also supports the College of New Caledoniarsquos Mineral Processing Assistants Course by providing instructors on-site mill tours and job opportunities at the mine Several member of the Nee Tahi Buhn Indian Band have been working as on-call positions as environmental monitors and confined space guards in the mill Huckleberry staff regularly respond to community requests to attend speak and sponsor community events such as career days annual meetings mine tours and traditional community gatherings
ldquoDeveloping successful mining arrangements with Indigenous people isnrsquot only about technical astuteness itrsquos about relation-ships reconciliation and the balancing of interestsrdquo says Wong
Itrsquos obvious from these brief examples that Huckleberry Mines Ltd is taking its work with the First Nations seriously but itrsquos more than that
Mike Robertson Chief Policy Advisor Cheslatta Carrier Nation says ldquoIn 2005 the Cheslatta Carrier Nation challenged the mine of its commitment to sound environmental manage-ment During the subsequent 10 years Huckleberry manage-ment and staff committed to engage our people directly in planning and implementing a progressive reclamation program of old mining zone areas and in the development of new zones
Just like the re-vegetated dams and tailings sites our environ-mental relationship has blossomed toordquo
Chief Rene Skin Skin Tyee Nation added ldquoMarke Wong of Huckleberry Mines has participated in our Nationrsquos annual gath-erings including community open houses and cultural camps Hersquos engaged directly with our youth and elders for the past two years He has been diligent in keeping us informed of changes to the on-going miner operation and opportunities for our peoplerdquo
Managing Impacts and Restoring the LandLike all mining therersquos a certain impact to the natural environ-ment and following the closure of a mine there are permanent changes to the landscape The Huckleberry Mine is no exception
Conventional drilling blasting loading and hauling using a combination of electric drills and shovels diesel hydraulic exca-vators and both 100 and 150-ton diesel-powered haul trucks are used to process approximately 17000 tonnes of ore a day
Milling is accomplished by grinding the ore in a 975m diam-eter SAG mill and then through two ball mills The resulting slurry is processed by flotation to produce a concentrate of 27 per cent copper that is subsequently shipped by truck to the port at Stewart for storage and shipment to Japan
Tailings from the milling process is discharged into a tailings management facility and supernatant water is discharged to the aquatic environment through a pipeline to a submersed outfall and diffuser located in Tahtsa Reach part of a man-made hydro-power reservoir developed in the 1950s All water discharged falls within their provincial and federal permit limits
With this comes noise dust and all of the other factors asso-ciated with mining but as mentioned earlier Huckleberry Mines Ltd is aware of the situation and addresses them through its Environment and Community Affairs Program which includes a Fish Habitat Compensation Program
And itrsquos because of its efforts in this area that Huckleberry Mines Ltd recently received the 2014 BC Metal Mine Reclamation Award from the BC Technical Research Committee
Aerial photo of Huckleberry Mine located between Huckleberry Mountain and Tahtsa Reach
Huckleberryindd 18 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 19
on Reclamation (BCTRCR) and the Mining Association of BC (MABC) in recognition for outstanding practices in its fish habitat restoration program a program that actually increased the available fish habitat in the area of the mine as well as its successful relationship building efforts with First Nations
Even before the mine was built the company recognized that its minersquos footprint could have an impact on the available fisher-ies habitat in the area In particular ldquoCreek 4rdquo a known fish-bearing stream was expected to be impacted and so a plan was made to conduct some habitat enhancements in the area
Fisheries surveys conducted by Hatfield Consultants of North Vancouver identified nearby ldquoCreek Mrdquo which at the time was not a fish-bearing stream due to a naturally occurring barrier to fish ndashie a steep gradient reach that stopped any fish from reaching a headwater pond
Huckleberry Minersquos plan involved constructing a series of steps or weirs lined with geotextiles and anchored with rock fill These works were constructed by a team from Cariboo Divers from designs prepared by Hatfield Consultants
Subsequent fish surveys conducted between 2001 and 2011 showed initial success and that adult rainbow trout were present in the headwater pond and juveniles were present in the lower reaches
However subsequent surveys conducted between 2008 and 2011 indicated that the juvenile fish numbers decreased to record lows in 2011 The decline in fish numbers was attributed to failure of the weirs in the lower and middle fishways causing juveniles to become stranded in isolated pools and precluding adults from reaching the preferred spawning habitat between the lower and middle fishways
When initial monitoring of the remediated area in 2013 and 2014 was conducted Environmental Monitoring Assistants from the Yinka Dene Economic Limited Partnership and the Nootsenay Enterprises Ltd were called to assist in the evaluation of the stability of the constructed works as well as presence of fish and the structural integrity of the fishways have remained intact through high-flow periods with no erosion or undermin-ing of the weir structures
Cody Reid Deputy Chief amp Environmental Coordinator Nee Tahi Buhn Indian Band said ldquoThe design construction monitoring and maintenance of the Creek M fishway has led to an overall net increase in fish habitat in the area surrounding the mine in Tahtsa Reachrdquo
And David Belford Mineral and Natural Resources Liaison Officer Wetrsquosuwetrsquoen addedrdquo The HML Environmental team and participating consultants are to be commended on their proactive approach to reclaiming the fish habitat and to increas-ing that habitat within the mine footrdquo
During the 2013 fish survey 39 rainbow trout were captured the largest number of fish observed since 2008 These observa-tions were made even while construction of the middle reach fishways was ongoing
Marke Wong says that Huckleberryrsquos plans are to continue monitoring to confirm the effectiveness of the restoration work including hydraulic functioning physical stability and structural integrity fish distribution and net gain
From the operation of a mine in the mountains to the refur-bishing of a fishway in a local waterway Huckleberry Mines Ltd continues to show its appreciation and respect for the environment and the First Nations communities it works with in British Columbia
Perhaps the most important message for industry is that the example set by Huckleberry Mine and its First Nation commu-nity partners demonstrates that when parties begin to have meaningful dialogue and understanding develops on both sides then the path to cooperation and partnership is open
In the case of Huckleberry Mine this has led to the devel-opment of partnerships that have helped it expand its opera-tions and have help provide support during tough economic times
The nomination of Huckleberry Mines Ltd for the 2014 BC Metal Mine Reclamation Award came from its First Nation Partners because as Chief Karen Ogen said ldquoOur partnership with Huckleberry Mines has made a big difference in our small community Since the 2013 partnership agreement was signed our people have benefitted from jobs training and business opportunities Our experience with Huckleberry has been very positive and we have greatly appreciated Huckleberryrsquos efforts to engage with our community and to work with our business arm the Yinka Dene Economic Partnership The Wetrsquosuwetrsquoen First Nation is very pleased to nominate Huckleberry Mines for this awardrdquo
And lastly Mike Robertson added ldquo The Cheslatta Carrier Nation has been a successful Huckleberry Mines Limited con-tractor on a number of projects including a tailings dam We have our members employed by Huckleberry Mines and we maintain regular contact with its staff and management on all aspects of operations We support the nomination because we are confident they will continue and enhance their innovative and progressive practices of returning the land to a near natural self-sustaining staterdquo CMJ
FIRST NATIONS and MININGHUCKLEBERRY MINE
Material for Huckleberry Minersquos step-building program being delivered to the site by helicopter
Huckleberryindd 19 2016-01-12 1141 AM
20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
FIRST NATIONS COMPANY PROVIDES VITAL ROADBUILDING SERVICES
TO REMOTE COMMUNITIESStaff Report
REWARDSROADto
Creeindd 20 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 21
FIRST NATIONS and MINING
K imesskanemenow is a Cree word that means ldquoThis is our Roadrdquo a fitting name for the winter road management company that is owned and operated by four northern First Nations Attawapiskat Fort
Albany Kashechewan and Moose Cree Their company Kimesskanemenow Corporation (also
known as K Corp) was founded in 2001 and for the past 15 years has been responsible for building and maintaining the Western James Bay Winter Road (JBWR) which starts in Moosonee and travels 312km up the western coast of James Bay connecting the communities of Fort Albany and Kashechewan and eventually ending at the Attawapiskat First Nation
The road is a lifeline to the remote areas in the James Bay Lowlands of Northern Ontario and without it existing and future development of this part of the country would not be possible
In fact itrsquos thanks to the road that K Corp helped build that companies like De Beers Canada are in the north
As most people know De Beers Canada made international headlines when it built the Victor Mine in 2006 (the first dia-mond mine in Ontario at a cost of about $1 billion) approxi-mately 90km west of the coastal community of Attawapiskat First Nation
Since the open-pit mine began production in 2008 with an annual tonne processing capacity of about 27 million tonnes and an annual carat production capacity of 600000 carats it has proven to be a key to Northern Ontario development and its communities
With an estimated mine life to 2018 the Victor Minersquos ener-gy and equipment needs will continue for at least two more years and according to K Corp cannot be met without the JBWR
Air transport is prohibitively expensive so the winter road is considered by far the most affordable way to supply the remote mine with the necessary 450 loads of cargo and 10 to 11 million litres of diesel fuel that it consumes each year
But the Victor Mine is not the only site that requires a reliable supply of goods and services Similar transportation challenges also face other remote northern First Nations communities that need to truck goods and fuel via seasonal winter roads
With the exception of Moose Cree First Nation which has a railway line to Cochrane air travel is the only transportation available year-round for the three other First Nations which for most community residents is prohibitively expensive
Thanks again to the JBWR it provides a critical socio-eco-nomic tie between the communities as well as a significant source of employment and to keep relationship going Kimesskanemenow Corporation and De Beers Canada have entered into a productive partnership
In 2004 the two parties signed a Winter Road Agreement which was re-negotiated in 2014 Under the agreement De Beers pays the bulk of the costs of the roadrsquos construction and maintenance costs while the balance of the costs are provided by the Provincial and Federal governments
Kimesskanemenow Corporation is guided by three central priorities Building capacity in its communities ensuring that its
member communities receive maximum benefits and mainte-nance of traditional culture which naturally includes environ-mental protection
The company also ensures that money from building and main-taining the road stays in the hands of local First Nation members
To do this the road is constructed and maintained entirely by local community members either as direct employees or through local contractors This has required developing capacity which the company has done through training and education programs
The practical effect of these guiding principals is that during the winter months roughly 200 individuals work on the road helping ensure that the road brings economic benefits to individ-uals families and communities
For many seasonal employment gained through constructing and maintaining the winter road is the only consistently avail-able work in the community Furthermore dividends from the company go back to the hands of the communities to be used as they see fit
Finally Kimesskanemenow Corporation donates to commu-nity-based initiatives that will benefit the communities with each of the four communities allotted an annual amount
Reflecting the corporationrsquos central values the money is used to fund initiatives that benefit youth the environment or main-tain traditional ways of living
One example of the programs that the corporation helps fund is CreeFest a celebration of Cree culture that is held annually in the Mushkegowuk communities
The company also funds the Edward W Chilton scholarship at Northern College in honour of the late Ed Chilton the com-panyrsquos first president The scholarship is awarded to community members to further their education
K Corprsquos list of smaller grants available online include many community and cultural programs that maintain the vitality of all these communities
Kimesskanemenow Corporation maintains an important piece of infrastructure that benefits the communities and allows for the ongoing operation of the Victor Diamond Mine As a cooperative venture the corporation has proven itself to be invaluable to both the communities and the mining company CMJ
Thanks to the efforts of K Corp the Western James Bay Winter Road provides access to the remote areas of Northern Ontario
Creeindd 21 2016-01-12 1052 AM
22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
WHERE WE STANDSERIOUS QUESTIONS DESERVE SOME SERIOUS ANSWERS Staff Report
I trsquos been just over a year since the Native Womenrsquos Association of Canada (NWAC) received funding from Aboriginal Affairs and Northern Development Canada (AANDC) to identify and ask questions about the barriers
indigenous women face and secondly to get direct and honest answers as to what are the realistic opportunities for them in the mining industry
Basically as the headline says they want to know where they stand insofar as their positions within the mining industry are concerned
The questions NWAC put on the table at a recent forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development dealt with two perspectives the first looked into resource development corporations and sought to understand what these corporations knew about aboriginal women and the second was from aboriginal women and how they viewed the mining industry with regards to economic devel-opment and employment opportunities
The forum was attended by an impressive gathering of female indigenous leaders and representatives from the resource devel-opment sector A full list of the participants is featured in the adjacent box
The intent of the engagementdiscussion session was to initi-ate a constructive dialogue amongst the participants with the overall goal of
s increasing the labour market participation of indigenous women in the resource development sector
s ensuring indigenous womenrsquos voices are heard in the devel-opment of these projects
s sharing of information on the industry and
s discussing the various opportunities and barriers facing indigenous women who wish to work in the industry
A DISTINGUISHED PANEL OF WOMEN ATTEND OTTAWA FORUM
Siobhan Dooley Hatch EngineeringGrant Goddard New Gold Inc (Rainy River Project)Karina Kesserwan Kesserwan (Law ndash Strategy ndash Solutions)Stacey Jack New Gold Inc (Rainy River Project)Christopher Lefebvre Aramark CanadaMireille Pilotte New Millennium IronRachel Pineault Detour Gold CorporationKate Rafter Employment and Social Development CanadaLouise Reid-Schloen Hydro OttawaJamie Saulnier Running Deer ResourcesNancy Veal Resolute Forest ProductsMarilyn Capreol Shawanaga First NationPamela Eyles BC Native Womenrsquos AssociationSusan Forth Shawanaga First NationElize Hartley Ontario Native Womenrsquos AssociationMarian Horne Yukon Aboriginal Womenrsquos CouncilNoreen McAteer Alberta Aboriginal Womenrsquos SocietyVerna Polson Quebec Native Women IncTori-Lynn Wanotch Saskatchewan Aboriginal Womenrsquos Circle CorpBeverly Blanchard Native Womenrsquos Association of CanadaSydney Ducharme Native Womenrsquos Association of CanadaClaudette Dumont-Smith Native Womenrsquos Association of CanadaDan Peters Native Womenrsquos Association of CanadaMerv McLeod McLeod-Wood Associates IncNancy Wood McLeod-Wood Associates Inc
Beverly Blanchard (standing) of the Native Womenrsquos Association of Canada addresses delegates attending a forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development
Women in Miningindd 22 2016-01-12 1053 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 23
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
andor economic opportunitiesFor example when impact benefit agreements (IBAs) are
completed they tend to be locally focused and may not consider indigenous women that do not reside in the community or indigenous individuals who are not members of the particular community
From the indigenous womenrsquos perspective at the forum it was noted that indigenous womenrsquos opinions on the resource devel-opment sector were varied and divergent Like most things in life there were some women who are in favour of the mining industry and there are some who are against it
Many who are against the sector perceived it to be counter to the traditional role of indigenous women as water-keepers and caretakers of Mother Earth but on the other hand research found that there was also a significant percentage of indigenous women who were ambivalent towards the industry
Due to length and detail of the forum (from which this article is based) the information has been drastically reduced to fit the space
For complete details and a copy of the full Bridging the Gap Aboriginal Women and Resource Development Report please contact Beverly Blanchard Strategic Policy Partnership and Planning NWAC Ottawa bblanchardnwacca CMJ
INDIGENOUS WOMEN and MINING
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d e P e n d a B L e P r o J e c t d e v e L o P M e n t
Women in Miningindd 23 2016-01-12 1053 AM
24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
A s probably many of you know times are tough right now Commodity prices are slumping across the board affected by an overall slowing global economy that is being felt throughout Canada
But even during a stubborn downturn in global demand for many minerals and metals itrsquos no time to get down on mining because mining never goes away
Minerals and metals are the very foundation of virtually all of the goods we depend on in our daily lives The world will con-tinue to need mining and Canada can and should continue to be an important place where mining happens
A Look at Market ConditionsSo first how bad is the market
Global economic growth has been volatile in recent years Every time the Bank of Canada the IMF World Bank or others make growth projections it seems they amend them a few months later and always downwards With few exceptions the global economy is not doing well at all
The key economy for the mining sector is China which today consumes almost 50 per cent of the worldrsquos minerals and metals And Chinarsquos growth rate has been slowing along with growth rates in other emerging markets like Brazil Mexico and several Asian and African countries that are also falling
The one major exception is India whose growth is around 75 per cent and with its 13 billion people is seen as the next China in terms of minerals and metals consumption as the coun-try begins to rapidly industrialize
A Bedrock of the Canadian EconomyEven in a slump miningrsquos contribution to Canada is enormous
Despite some job losses at some operations mining and min-eral processing are directly employing more than 375000 Canadians including well over 10000 Indigenous Canadians paying the highest average industrial wage in the country Mining remains proportionally the largest employer of indige-nous Canadians
Mining accounts for roughly 20 per cent of the overall value of Canadian exports valued at nearly $90 billion
Nationally we pay an average of $38 billion annually in corporate taxes and royalties to federal provincial and territorial governments
Mining companies are also paying significant royalties to indig-enous communities across the country indirectly through govern-ment resource revenue sharing and in some cases directly
Wersquore also supporting the second largest mining-supply sector in the world More than 3700 companies provide a wide spec-trum of services to the Canadian mining industry with an increasing number of these being indigenous-owned businesses
A major challenge facing mining in Canadarsquos north today is its lack of infrastructure The north is our industryrsquos future but the territories and the northern parts of our provinces lack criti-cal infrastructuremdashroads electricity ports railwaysmdashto service mines and get products to market
This lack of infrastructure is felt by communities many of them indigenous located in the north
According to the Mining Association of Canadarsquos (MAC)
MINING AND INDIGENOUS PEOPLES CANADArsquoS FUTURE By Pierre Gratton
Delegates attending the 23rd Annual Conference of the Canadian Aboriginal Minerals Association in Vancouver listen to talks during the three-day event
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 24 2016-01-12 1054 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 25
FIRST NATIONS and MINING
research it costs about 2 to 25 times as much to build and operate a gold and base metal mine in northern Canada off grid than in the south
We should be looking at ways to level the playing field in the north where infrastructure is lacking Canada needs a strategic collaboration involving industry and governments federal pro-vincial territorial and Indigenous to get this nation-building infrastructure in place
This can be done by increasing government investment in new infrastructure or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good
Additionally there is the issue of indigenous rights and title and how this affects the project certainty
Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and if necessary accommo-dated for activities on traditional indigenous territories affects project timelines and certainty
Connected to this is the concept of social license which in general terms defines the support earned by proponents to pro-ceed with and operate their project
The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects
That is a very complex issue The Supreme Court of Canada in its recent decision on the
Tsilhqotrsquoin First Nationrsquos claim recognized indigenous title a first in Canadian law
It also provided clear guidance on the criteria needed to demonstrate title and on the rights and obligations that flow from that in the process also identifying where title was found not to exist
It is a significant decision that provides us all with much more clarity going forward
But back to the question of the vetoThe Court clearly recognizes that in some circumstances the
right to title can be limited by the Crown So there is no abso-lute veto under Canadian law even in the case where title has been proven
But for the Crown to place limits on indigenous title it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead ndash a very significant test
At its core the decision continues a balancing act between empowering and limiting the authority of both indigenous peo-ples and governments The Court was very wise
So what does this mean for proponents There is the law and then there is reality No proponent
wants or should want to build a project that is unwelcome or opposed by local communities This is quite frankly an unsus-tainable option and one best avoided And most communities are open to the opportunities mining brings and increasingly so
Letrsquos look at reality in a different way
Today there are more than 250 agreements between mining companies and indigenous communities across the country It is decidedly rare that projects proceed without impact benefit or other such agreements concluded
These agreements which have matured with time and experi-ence provide significant local benefits and assurances including
Commitments on business procurement and often assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide
Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight
Support for skills training and mentoringDirect economic or financial benefitsSome of these agreements are transforming communities in
very significant waysNewgoldrsquos New Afton project in Kamloops is one such exam-
ple The diamond mines in the NWT are others as is Voiseyrsquos Bay We are seeing high levels of indigenous participation as high as 60 per cent in the case of Voiseyrsquos Bay increasing levels of post-secondary education and significantly improved eco-nomic and social outcomes
Nonetheless it is undeniable that the negotiation of these agreements takes time Trust must be built between the parties and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the pro-posed mine prior to it proceeding
Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association Photo by Tracey Sanders Photography
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 25 2016-01-12 1054 AM
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
AME BCindd 27 2016-01-12 110 PM
28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Nfld Reportindd 30 2016-01-12 1055 AM
Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
PROFESSIONAL DIRECTORYA
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ERT
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DEX
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Galaxy Broadband 30 wwwgalaxybroadbandca
DMC Mining33 wwwdmcminingcom
Stu Blattner 33 wwwstublattnercom
Hard-Line35 wwwhard-linecom
Duke Electric36 wwwdukeelectriccom
ROBERT SEAGRAVES 416-510-6891 Fax 416-447-7658 rseagravescanadianminingjournalcom
JOELLE GLASROTH 416-510-5104 Fax 416-447-7658
jglasrothcanadianminingjournalcom
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Professional Directoryindd 33 2016-01-12 1056 AM
W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
- 002
- 003
- 004
- 005
- 006
- 007
- 008-009
- 010-015
- 016-019
- 020-021
- 022-023
- 024-026
- 027
- 028-030
- 031
- 032
- 033
- 034
- 035
- 036
-
JANUARY 2016 CANADIAN MINING JOURNAL | 3
For More InformationPlease visit wwwcanadianminingjournalcom for regular updates on whats happening with Canadian mining companies and their personnel both here and abroad A digital version of the magazine is also available at wwwdigitalcanadianminingjournalcom
Coming in FebruaryCanadian Mining Journal features Mining in Ontario plus its PDAC Issue
ABOUT THE COVER
This monthrsquos cover photo of Mark Amarok Chesterfield Inlet Nunavut by Dave Brosha Photography Long Creek PEI
January 2016
c a n a d a rsquo s f i r s t m i n i n g p u b l i c a t i o n
wwwcanadianminingjournalcom
A CLOSE LOOK AT FIRST NATIONS amp MINING RELATIONS
JOURNEYA TOUGH
FEATURESFIRST NATIONS AND MINING RELATIONS8 THE ENVIRONMENTConcern for ldquoThe Environmentrdquo is one of the many things that both the First Nations and the Canadian Mining Industry have in common
10 FIRST NATIONS MINER Indigenous Junior Miner takes aggressive leap into ownership of NWT mining company
16 PARTNERING HELPS SAVE FISHERIES BC mining company partners with five Indigenous communities to help protect aquatic environment near mine
20 INDIGENOUS ROAD BUILDERS PROVIDE VITAL LINK First Nations company keeps vital road into Ontario diamond mine safe and open year round
22 INDIGENOUS WOMEN ASK QUESTIONS Itrsquos been a year since the Native Womenrsquos Association of Canada was formed and during that time theyrsquove taken a serious look at job opportunities in the mining industry
24 THE MINING ASSOCIATION OF CANADArsquoS PERSPECTIVE MAC President and CEO Pierre Gratton addresses the Canadian Aboriginal Minerals Associationrsquos 23rd Annual Conference in Vancouver and ldquoMining and Indigenous Peoples Canadarsquos Futurerdquo
COAST-TO-COAST-TO-COAST REVIEW27 MINERAL EXPLORATION amp DEVELOPMENT IN THE WESTAn overview of activities on the west coast of Canada provided by the Association of Mineral Exploration British Columbia (AME BC)
28 MINERAL EXPLORATION amp DEVELOPMENT IN THE EASTAn overview of activities on the east coast of Canada provided by the Department of Natural Resources Government of Newfoundland and Labrador
DEPARTMENTS5 EDITORIALLike most January issues of magazines the editorials focus on the year ahead and Canadian Mining Journal is no exception This month Editor Russ Noble talks about the sad situation the mining industry is in but goes one step further to talk about The Environment too and how itrsquos being equally challenged by these tough times
6 LAWJames Clare a Partner with the Toronto-based law firm of Bennett Jones looks at the TSX Venture Exchangersquos response to the commodities slump
7 FIRST NATIONSA regular column by First Nations of Ontario
8 CSR amp MININGA regular column by Michael Torrance a lawyer in Norton Rose Fulbrightrsquos Toronto office on Corporate Social Responsibility
34 UNEARTHING TRENDSBruce Sprague a Partner and EYrsquos Canadian Mining amp Metals Leader Vancouver looks at First Nationsrsquo women as an untapped resource and possible solution to Canadarsquos skilled labour shortage
wwwcanadianminingjournalcom
CANADIANCANADIANMining JournalMining Journal
8
10
16
JANUARY 2016 VOL 137 NO 1
Contentsindd 3 2016-01-12 1042 AM
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Featuring comprehensive pro les on over 2000 active publicly-traded mining companies as well as over 1400 mines and advanced projects related to those companies your business decisions will always be backed up by the most up-to-date industry data
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Call 1-888-502-3456or by email at infonorthernminercom
wwwmineshandbookcom
Mines Handbook - 38 Lesmill Rd Unit 2 Toronto ON M3B 2T5
$136+ SH
CAMHAdindd 4 2016-01-12 1042 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 5
CANADIANCANADIANMining Journal
Established 1882
Canadian Mining Journal provides articles and information of practical use to those who work in the technical administrative and supervi-sory aspects of exploration mining and processing in the Canadian mineral exploration and mining industry Canadian Mining Journal (ISSN 0008-4492) is published 10 times a year by BIG LP Mining BIG is located at 38 Lesmill Rd Unit 2 Toronto ON M3B 2T5 Phone (416) 510-6891
Legal deposit National Library Ottawa Printed in Canada All rights reserved 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 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 please contact Russell Noble at 416-510-6742
Subscriptions mdash Canada $4795 per year $7695 for two years USA US$6095 per year Foreign US$7295 per year Single copies Canada $10 USA and foreign US$10 Canadian subscribers must add HST and Provincial tax where necessary HST registration 809744071RT001
From time to time we make our subscription list available to select companies 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 of the following methods Phone 1-888-502-3456 ext 2 Fax 416-447-7658 E-mail cholderglacier-bizinfocom Mail to Cindi Holder BIG Mining LP 38 Lesmill Rd Unit 2 Toronto ON M3B 2T5
We acknowledge the financial support of the Government of Canada through the Canada Magazine Fund toward our editorial costs
January 2016 Vol 137 mdash No 1 38 Lesmill Rd Unit 2 Toronto Ontario M3B 2T5 Tel (416) 510-6789 Fax (416) 447-7658 wwwcanadianminingjournalcom
Editor Russell B Noble 416-510-6742 rnoblecanadianminingjournalcom
Field Editor Marilyn Scales 613-270-0213 mscalescanadianminingjournalcom
Production Manager Jessica Jubb
Circulation Manager Cindi Holder 416-510-6789 ext 43544 cholderglacierbizinfocom
Publisher amp Sales Robert Seagraves 416-510-6891 rseagravescanadianminingjournalcom
Sales Western Canada Western USA and Quebec Joelle Glasroth 416-510-5104 jglasrothcanadianminingjournalcom
Toll Free Canada amp USA 1-888-502-3456 ext 2 or 43734
Group Publisher Anthony Vaccaro
EDITORIAL
By Russell Noble
ldquoNo workrdquo is the least of our worries
Now that wersquore heading into what forecasters say will be another dismal year itrsquos hard to get excited about the months ahead knowing wersquore going to continue hearing more about layoffs care and maintenance and worst of all outright closures
After the past couple of years of what the industry has experienced the words ldquoThey Shoot Horses Donrsquot Theyrdquo the title of Horace McCoyrsquos 1935 novel and later of a 1969 movie by the same name starring Jane Fonda pretty much describes the lsquoput me out of my miseryrsquo feeling that many in the mining industry are feeling
But like all doom-and-gloom stories therersquos usually something good to say and thank-fully and somewhat surprisingly thatrsquos where the theme of this issue ldquoFirst Nations and the Canadian Mining Industryrdquo comes in with a lsquopositiversquo message thatrsquos encouraging for almost all miners
As both sides of the fence have known for years the words ldquoFirst Nationsrdquo and ldquoMiningrdquo havenrsquot necessarily homogenized to make for a creamy-smooth feeling towards the use of lands and the extraction of the minerals they contain
In fact itrsquos safe to say that itrsquos been an oil-and-water relationship for centuries but like I just said things are looking a little more positive thanks to the recent emergence and under-standing that therersquos far more at stake than territorial lands and their contents
The Environment is something that almost everyone now agrees is far more important than quibbling over boundaries and minerals because as witnessed at the recent World Climate Summit in Paris France where even the United States Russia and China agreed on climate-change issues Mother Nature has been beaten to her knees because of emissions from the industrialized world
And admit it or not the resources industry is partly to blame for the mess of the worldBut to get back to my point of First Nations and Mining Industry relations the recent
federal election and the subsequent meeting of Prime Minister Trudeau with the Assembly of First Nations was a decade-late meeting that at least showed that the federal government was about to listen to the ldquocanaries of the coal minerdquo as First Nations communities were described at a recent conference in Vancouver because ldquotheyrsquore out there to warnrdquo
Those phrases were used during one of the presentations at the Canadian Aboriginal Minerals Associationrsquos three-day conference where more than 500 delegates from across the country heard speakers from First Nations and mining companies alike talk about a num-ber of things and in almost every case The Environment was mentioned
It was a common thread throughout the Conference and regardless of who was speak-ing the message was clear itrsquos time to clean up our act
And the ldquoourrdquo was collective and not directed at any one group because as everyone in the room agreed the issue at hand (The Environment) was far more important than terri-torial rights and mining privileges
As I quoted at the outset ldquoThey Shoot Horses Donrsquot Theyrdquo and unless everyone pulls together and that certainly means First Nations and the Mining Industry then the forecast-ers I mentioned earlier will be predicting dismal times far beyond the coming year CMJ
Editorialindd 5 2016-01-12 1139 AM
In 2015 Canadarsquos junior stock exchange the TSX Venture Exchange sunk to levels that a few years ago would have been inconceivable This drop caused primarily by the sustained slump in commodities led the SampPTSX Venture
Composite Index to sink below 500 points for the first time since the TMX group bought the Canadian Venture Exchange in 2001 The low point represents a 29 drop from where the TSXV started at the beginning of 2015 and a staggering 85 drop from its peak in 2007
A primary cause of the exchangersquos poor performance has been the extremely challenging market conditions facing extractive resource issuers At present more than 70 of the companies listed on the exchange operate within the mining or energy sec-tor After a two plus year depression in mining equities com-bined with weak prices for most metals as well as well as hydro-carbon products junior resource issuers have fallen out of favour with investors
TSXV White PaperThe TSXV conscious of the market realities facing its issuers and with the aim of attracting new investment conducted a lengthy consultation process with clients and stakeholders These consultations focused on identifying new initiatives to respond to realities facing its listed issuers and other market participants in light of the sluggish capital market conditions The outcome of the consultations was a White Paper issued on December 17 2015 It contains proposed broad based reforms to various TSXV rules policies and strategies aimed at fostering renewed interest in the exchange and its services The full text can be found at httpswwwtsxcomresourceen1252
The recommendations of the White Paper were synthesized into a three-pronged strategic reform program The first and second prongs of this program are particularly relevant for cur-rent and potential resource based issuers
Cost of complianceThe first prong of the program focuses on reducing the cost of compliance a primary area of concern for most resource issuers The White Paper proposes a number of rule changes including
s eliminating the general requirement for sponsorship of new issuers undertaking a reverse takeover (RTO) change of
business (COB) or other business combinations narrowing the application of shareholder approval require-
ments for inactive issuers undertaking an RTO or COBs implementing a director and officer ldquoNEXUS-typerdquo status
certification program to reduce or eliminate ongoing require-ments for certain individuals
s extending the shelf life of on-file personal information forms for directors and officers from three to five years
eliminating escrow requirements that overlap with similar requirements of the Canadian Securities Administrators
s implementing an automated system for transaction filing and accelerating response times to speed up overall transaction processing
Attracting new capitalThe second prong of the White Paperrsquos strategic reform pro-gram focuses on attracting new and more diverse capital to the TSXV The initiatives proposed under this prong are less tech-nical and less defined than those proposed under the first prong but include commitments to undertake active and ongoing promotion of TSXV-listed issuers through roadshow presentations to fund managers retail investors investment advisors and banks and research analysts instituting an ongo-ing streaming summary service of available public offerings and introducing a new market making program to be adminis-tered by the exchange
TSXV seeking feedbackWhile the exchange has committed to implementing the above listed reforms under an ldquoaggressive timelinerdquo prior to doing so it plans to host a series of town hall meetings where it will entertain feedback on the strategy and proposed initiatives In the coming months existing issuers and other interested parties who may be impacted by these reforms should carefully monitor the develop-ments and provide feedback as appropriate
Whether these initiatives will be successful in achieving their intended results remains to be seen but given the extremely challenging market environment for resource issuers the pro-posed reforms should be implemented efficiently and effectively to reduce the headwinds facing junior issuers CMJ
JAMES CLARE is a partner with Bennett Jones in Toronto
LAW
By James Clare
TSXV response to commodities slump
6 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Lawindd 6 2016-01-12 1043 AM
T he Truth and Reconciliation Commissionrsquos six-vol-ume 23-million-word final report was issued on December 15 2015 It not only contains stories from survivors of residential schools but a set of 10 guid-
ing principles and 94 recommendations or Calls to Action While the federal provincial and territorial governments
must act upon the majority of the 94 recommendations there are also recommendations for all sectors of society including the churches media arts academia and industry
For example the churches now have less than 90 days before issuing a joint statement by March 31 2016 on how they will implement the spiritual and religious components of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP)
The churches must also reject the concepts ndash such as ldquoterra nullisrdquo and the Doctrine of Discovery -- used by the church and state to assert sovereignty over Indigenous peoples and their lands
However I must point out that First Nations do not expect industry to atone for the sins of the past But we do however expect to be treated as equals and as the rightful owners of the land
Mining companies in Canada must recognize and acknowl-edge the era of Reconciliation as common place in all of its dealings with First Nations as it relates to mining exploration development extraction and remediation This also includes training and educating management and staff on First Nation history culture human rights and anti-racism
Here are some key points to consider s The Truth and Reconciliation process is becoming an institu-
tion in Canada that will inspire and influence positive approaches to relationships between Canada and its First Peoples
s Implementing the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) and respecting Treaties is a major focus within the TRC Calls for Action
s Business and industry in all Canadian sectors are being prompted by the TRC Report to become aware of the report and make efforts to build bridges This will close the divide between First Nations and Industry that was created as a
result of ignorance of history of Canadarsquos Indian Residential School past
s First Nations deep connection to the land is evident in lan-guage culture and world view ndash this is a key focus in many of the calls for action
s The respect and responsibilities that First Nation peoples have for the land is an important element to the process of Reconciliation that is now being recognized by federal juris-diction As noted in the 2015 Speech from the Throne the environmental assessment process will soon become formal-ized adding First Nations to the decision-making process as it pertains to the protection of the environment
s Benefits to First Nations regarding mining development are also a key factor in reconciliation The era of sealing a deal solely with an IBA (Impact Benefit Agreement) is a thing of the past First Nations seek to take on their roles as govern-ments beneficiaries and providers for their people
s The lsquoReconciliation Lensrsquo can be a way for industry to create stronger relations avoid conflicts build strong business partner-ships and help achieve collective prosperity with First Nations In conclusion here are four key messages that sum up the
outcomes from acting upon Reconciliation and forming a new relationship with our Peoples 1 Reconciliation can be a benefit to building strong mining
partnerships with First Nations2 Reconciliation as a policy approach for mining companies
will expedite relationship-building beyond most conflicts that arise out of resisting First Nation history and Cultural competence
3 The cost benefit to a Reconciliation approach in the mining industry is invaluable
4 Reconciliation in Canadian mining can cultivate a social con-sciousness that could define the industry as a 21st century legacy maker
I look forward to continued dialogue with the mining indus-try as we work together on making 2016 a breakthrough year for positive change Together we will build a better more inclusive Canada for our children and future generations CMJ
By Ontario Regional Chief Isadore Day Wiindawtegowinini
Mining must includeTruth amp Reconciliation
FIRST NATIONS
JANUARY 2016 CANADIAN MINING JOURNAL | 7
First Nationsindd 7 2016-01-12 1043 AM
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NMENTENVIROTHE
Pho
to
Thin
ksto
ckc
om
THE WORLD AGREES ENOUGH IS ENOUGHBy Russell Noble
FN Introindd 8 2016-01-12 1044 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 9
NMENTENVIROMother Nature canrsquot take it much longer
E ver since John Cabot landed in Newfoundland in 1497 and started trekking westward into the unknown exploration and later development has left its mark on The Environment
In fact itrsquos left more than a mark itrsquos scarred the earth forev-er thanks to an unquenchable thirst for discovery but like it or not the world wouldnrsquot be what it is today if not for yesterdayrsquos adventurers
Regardless of how appreciative we are to John Cabot and The Vikings before him Mother Nature has taken the brunt of their quests through the loss of trees the displacement of wildlife polluted waterways and often the disappearance of fish and most recently in the news air quality because of toxic emissions resulting in climate changes
In just over 500 years the world has gone from pristine to polluted and it wasnrsquot until recently when the ldquoWorld Leaders Unanimously Agreedrdquo at the United Nationsrsquo Climate Summit in Paris France that everyone became more aware of the fact that the world has had enough it canrsquot take any more
And thatrsquos when The Environment started receiving the worldwide attention it deserves
ldquoAnd itrsquos about timerdquo says The Assembly of First Nations of
Canada and the 634 bands it represent across the country because thatrsquos what indigenous people from coast-to-coast-coast want mosthellip a clean safe and bountiful place to live and work
As one delegate attending the 23rd Annual Canadian Aboriginal Minerals Associationrsquos meeting in Vancouver said late last year ldquoWersquore the canaries in the coal mines wersquore out there to warnrdquo
Philosophical yes straightforward no question but more-over it was a sincere and insightful message that Federal Indigenous Affairs Minister Carolyn Bennett later echoed by saying ldquoThere is every evidence Canadarsquos Aboriginal Peoples are indeed on the front lines of climate changerdquo
As already mentioned concern for the well being of The Environment is a centuries-old topic for discussion and when you look at the photo on these pages itrsquos hard to understand how mankind can do what itrsquos doing to endanger such perfection
But it is and doing so at such an alarming rate that no matter what the 197 world leaders agreed to in Paris last year scenes like this are being threatened around the world every day and unless we take The Environment seriously future generations will have only photographic images of the lsquoWay We Werersquo
Thankfully both the First Nations and the Canadian Mining Industry are two groups working on improving the lsquoWay We Arersquo so that future generations donrsquot have to look back on refer-ence material to see how things used to be
Stories on the following pages take a closer look at First Nations and Mining Relations and how theyrsquore working in har-mony and in the best interest of everyone and everything involved CMJ
FIRST NATIONS and MINING
FN Introindd 9 2016-01-12 1044 AM
NWT INDIGENOUS JUNIOR MINER ANTES UP IN ITS AGGRESSIVE LEAP INTO OWNERSHIP IN MINING ECONOMY
By Northern Correspondent Bill Braden
BOLD amp BRAVE
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T wo years ago the Dene of the NWT bold-ly jumped into the dragonrsquos jaw and launched their own mining company
The targets significant polymetallic potential near Great Bear Lake and dia-monds near the Ekati and Snap Lake mines
The vision be more than a source of labour and supplier of services to other miners They want to be
their own stand-alone producer among the first in Canada to pursue indigenous mine ownership
Wait a minute Arenrsquot First Nations usually railing against resource development the constant thorn in miningrsquos side And in the face of NWTrsquos gnarly record as a high-risk mining envi-ronment with dwindling exploration and labyrinthine regula-tions what is driving a home-grown indigenous company to do this in the first place
Aerial photo of the mill and camp at Terra Silver Mine abandoned near the south shore of Great Bear Lake since 1985 Photo courtesy of DEMCo LP
Bradenindd 10 2016-01-12 1138 AM
ldquoThe main thing is people want to participate and take ownership Itrsquos coming from the simple statements that have been made at the Dene Nation assemblies for yearsrdquo says Darrell Beaulieu the President and CEO of Denendeh Investments Incorporated (DII) and its latest ven-ture DEMCo Ltd
ldquoNo one ever said we are against business or development We said we want to be participants in development meaningful participantsrdquo
To a considerable extent that has indeed been the case in the NWT Beaulieu points to the prosperous part-nerships among more than 60 NWT indigenous businesses and diamond giants De Beers Dominion and Rio Tinto
Between 1996 and 2011 $42 bil-lion or 33 per cent of their northern spend was with indigenous companies and almost 9500 person years of employment were filled by indigenous workers in that period about 25 per cent of the total labour quantum
But he wanted to go beyond the jobs and servicesupply deals and take the ambitious jump to the equity level The current slump in mining activity and eroding values on existing properties gave momentum to Beaulieursquos plan to create DEMCo in the spring of 2013
ldquoSo the timing to pick up properties andor junior mining companies is upon usrdquo said DIIrsquos website at the time
JANUARY 2016 CANADIAN MINING JOURNAL | 11
FIRST NATIONS and MINING
Darrell Beaulieu CEO of DEMCo LP and this yearrsquos winner of the Skookum Jim Award from PDAC for outstanding achievement and contribution to mining by an aboriginal group or individual
Bradenindd 11 2016-01-12 1138 AM
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It continued on a note of high optimism ldquoThe silver lining to present and initiate a Denendeh exploration and mining compa-ny at this time may help create momentum for fundamental change in First Nation participation in resource development in the Northwest Territories and Canadardquo
The soft-spoken Beaulieu 58 is an Akaitcho Dene born and raised in Yellowknife who has earned numerous accolades for his leadership The most recent is the 2016 Skookum Jim Award from the Prospectors and Developers Association of Canada acknowledging significant achievement and contribution to mining by an indigenous group or individual
Hersquos is no stranger to indigenous and northern corporate governance Hersquos a three-time Chief of the Yellowknives First Nation and has held directorships with Northland Utilities the NWT Business Development and Investment Corporation and numerous industry associations
And hersquos no stranger to mining either as one of his first jobs was with Noranda Exploration doing EM surveys mapping prospecting claim staking and general exploration work
Beaulieu has been an influential advocate for Dene invest-ment through the parent group Denendeh Investments Limited Partnership an alliance of 27 First Nations communi-ties across the NWT It boasts a diverse portfolio including oil and gas drilling services electric utilities communications real estate and now exploration and eventually mining
Optimistic StartTo get DEMCo set up Beaulieu hired Yellowknife prospector
Trevor Teed into the shop as exploration vice president Teed brought with him a hunch hersquod been plugging away at for almost two decades the potential for a new discovery in the Camsell River region southeast of Great Bear Lake directly under four historic silver producers that operated from the 1960s to 1985
rdquoI suggested to him that the potential for IOCG (iron oxide-copper-gold) is what attracted me to it not silverrdquo says Teed ldquoDarrell agreed and despite the initial doubt of two of our three contract geologists our initial thoughts have been proven and there is IOCG at Camsell Riverrdquo
ldquoFirst it was kind of a desktop jobrdquo says Beaulieu ldquoThe data was all over the place We had to go to the United Sates Alberta BC the Geoscience office here in Yellowknife personal homes and at site too it was amazing where all the data ended up after 30 yearsrdquo
They resampled thousands of metres of decades-old core at site (that saved millions of exploration dollars) The results first disclosed in late 2014 proved out their early optimism
ldquoBack in the 70s they were only looking for silver We looked at the core and did some more prospecting and we found that hey therersquos a lot of gold there Whatrsquos more after our first field season was confirmation therersquos a huge magnetic body there also It looks like we have an IOCG depositrdquo
Beaulieu is too savvy to get excited at this point but polymet-alic IOCG deposits (Australiarsquos mammoth Olympic Dam is one) can be truly massive The discovery of the zone estimated roughly at some seven by 16 kilometres in size was first announced in late 2014
Teed says he had taken his hunch to other miners but credits Beaulieu with the vision and the belief to carry it forward His investigation so far has uncovered an extensive magnetic zone under the old silver digs
ldquoIt is a significant event I think that when the rest of Canada catches up to what we have wersquore going to see significant explo-ration again in the areasrdquo predicts Teed
That significance is backed up by mapping and geophysical
Noel Michel of Lutsel Krsquoe takes a break during a prospecting trip near Great Bear Lake Photo courtesy of DEMCo LP
DEMCo Exploration Vice-president Trevor Teed CEO Darrell Beaulieu and COO Margaret Gorman billbradenphoto
Bradenindd 12 2016-01-12 1138 AM
work carried out by the Geological Survey of Canada and the NWT Geological Survey over the past decade
Geologist Scott Cairns Manager of Bedrock Mapping and Mineral Deposits at the NTGSrsquos Yellowknife office says the historic production of silver and uranium is indicative of larger polymetallic IOCG deposits in the Great Bear magmat-ic zone
ldquoThey are definitely in a high mineral potential area thererdquo says Cairns adding that DEMCorsquos claims are at the north end of that zone while Fortune Mineralrsquos NICO project about 200km to the south is on its southern edge
Cairns says federal GSC geologists have recently completed a large study of alterations that can help identify IOCGs ldquoSo therersquos an enormous volume of work of geophysical characterisa-tions ways to track down where these potentially valuable deposits might be hiddenrdquo he says
DEMCorsquos IOCG discovery has not sparked any new rush of interest in the region But on a territory-wide basis says Cairns the number of inquiries website and office visits to his library and data bases has been spiking in the past few months
ldquoI think what wersquore seeing is that while itrsquos difficult to fund boots-on-the-ground exploration companies are doing their homework right now and will be using that when conditions improverdquo
In The GameAs of late December 2015 DEMCo was fully engaged in plan-ning the 2016 field program which Beaulieu hopes will include airborne geophysical work as well as more ground sampling They will spin off another subsidiary Camsell River Minerals Ltd to carry the project
But just like any other junior the team will be out there looking for private cash during one of the metal marketrsquos deepest and most prolonged slumps
And predictably thatrsquos not the only hurdle The claim block is within an overlapping boundary of both the Tlicho and Sahtu land claim regions
The four old mines on the claim block are among dozens across the NWT deemed for rehabilitation by the federal govern-ment There is an existing airstrip but land access would largely be on the historic Denison Ice Road from Behchoko first opened in the 1960s but dormant for 30 years
Yet another layer is working with the NWT Government as it gets used to managing the mines portfolio after its transfer from Ottawa to the NWT in April of 2013
And because DEMCorsquos parent corporation is governed by an alliance of all NWTrsquos First Nations - and itrsquos their money thatrsquos at risk - Beaulieu also has to satisfy a board that isnrsquot all that familiar with being on the investor side of the mining equation
Was it a hard sell to get his board on side in the first place No says Beaulieu pointing to DIIrsquos investment of about $2
million in cash and time to date ldquoThe hard sell is going to be finding the money to add value without diluting too muchrdquo
He says hersquoll be walking the floors at the Vancouver Cordilleran Roundup and Torontorsquos PDAC in 2016 promoting DEMCo
The Camsell project is where DEMCo is now fully focused but it is also invested in the NWTrsquos prolific diamond fields
In the Lac de Gras region east of the Ekati diamond mine the Fin claim block hosts known diamondiferous kimberlites while the Jen block has six known geophysical targets that have not yet been drilled
The Jaedenz block sandwiched between the Gahcho Kue and Snap Lake mines was explored and drilled by both De Beers and Winspear in the 1990s
JANUARY 2016 CANADIAN MINING JOURNAL | 13
Yellowknife-born Trevor Teed prospector and DEMCo VP of Exploration at the Camsell River properties Photo courtesy of DEMCo LP
Among the available resources combed over by DEMCo were these teetering core racks some dating back decades Photo courtesy of DEMCo LP
Bradenindd 13 2016-01-12 1138 AM
No work was done during the 2015 season and the company has not yet announced whether it will commit anything this year
An Indigenous AdvantageDoes being an Aboriginal-owned venture mean DEMCo will get a better reception from investors or an easier ride through the Northrsquos rocky regulatory regime
ldquoWe havenrsquot really pushed itrdquo says Beaulieu ldquoWersquore focussed on doing our own thing for now It takes time to grasp and understand what is it you have [Wersquore ask-ing] the same type of questions that any junior asks wearing the same boots same gloves We know itrsquos a high-risk business but itrsquos a high reward too Whoever is in there has really got to manage and yoursquove got to be able to sustain your own neck In terms of the regulatory regime that is an independent process we respect it and expect to be treated like everyone elserdquo
In a February 2015 interview with the business magazine Corporate Knights he did allow that having the Dene communities at his own board table gives him a home-court advantage
ldquoI think community engagement is our competitive edge And that edge is available because we are a Northern Dene-owned com-
14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Ground-level (above) and aerial (opposite page) of mill and camp at Terra Silver Mine near Great Bear Lake
Bradenindd 14 2016-01-12 1138 AM
pany And wersquore operating in a territory where indigenous people have a significant influence on our activityrdquo he said
Don Bubar as President and CEO of Avalon Rare Metals Inc and in previous roles with the PDAC is a passionate advocate for indigenous inclusion in Canadarsquos mining sector He believes that future mineral exploration in northern Canada will be led by indig-enous businesses
ldquoIt is natural that this participation would progress from a pas-sive one as a service provider to a more active one as an owner of a mineral development business with title to active projects Darrell Beaulieu and DEMCo are providing the leadership for the Dene Nation in going down this pathrdquo said Bubar in an email
ldquoPart of the challenge the industry faces is simply creating more public awareness of the importance of the industry to the northern economy especially for aboriginal communities Eco-activists have been successful in demonizing the industry in the North DEMCo has a key role to play in changing the perception that mineral exploration and development creates only unwanted environmental impacts without creating significant economic benefits for north-ernersrdquo CMJ
JANUARY 2016 CANADIAN MINING JOURNAL | 15
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Consider it done
FIRST NATIONS and MINING
Bradenindd 15 2016-01-12 1138 AM
COMMUNITY EFFORT HELPSSOLVE FISHWAY PROBLEMBy Russell Noble
PARTNERSHIPA WINNING
16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Shannon Haizimsque Chief Operating Officer of the Yinka Dene Economic Limited Partnership the commercial business arm of the Wetrsquosuwetrsquoen First Nations at the Huckleberry Mine site Adjacent photo shows a series of steps lined with geotextiles and anchored with rock fill as part of the minersquos Fish Compensation Plan
Huckleberryindd 16 2016-01-12 1052 AM
Almost everybody associates the name ldquoHuckleberryrdquo with Mark Twainrsquos Huckleberry Finn and his comrade Tom Sawyer but in the mining community Huckleberry is also the name of a Canadian mine that has been in production in northwestern British Columbia
since October 1997 Huckleberry Mines Ltd is an active open-pit coppermolyb-
denum mine located approximately 100km south of Houston BC Production rates (in 2014) were 34 million pounds of copper 2202 ounces of gold and 183218 ounces of silver and like many mines today itrsquos owned by a consortium of companies under one name Huckleberry Mines Ltd (HML) of Vancouver
The mine is owned and operated by Huckleberry Mines Ltd which in turn is owned 50 per cent by Imperial Metals Corporation of Vancouver and 50 per cent by a Japanese consor-tium including Mitsubishi Materials Corporation Dowa Mining Co Ltd and Furukawa Co
Partnering with First NationsSince 2013 Huckleberry Mines Ltd has signed communication amp partnership agreements with five separate First Nations orga-nizations Wetrsquosuwetrsquoen First Nation Cheslatta Carrier Nation Office of Wetrsquosuwetrsquoen Nee Tahi Buhn Indian Band and Skin Tyee Nation
Marke Wong Manager of Environmental amp Community Affairs for Huckleberry Mines Ltd says ldquoThese types of agree-ments have been instrumental in the success of Huckleberry Mine Because of the open dialogue with Indigenous communi-ties we have generated better understanding among all parties and this has increased First Nations access to economic opportu-nities such as job training employment and service contracts and has provided Huckleberry with dedicated community part-ners and a strong reliable work force and able contractorsrdquo
JANUARY 2016 CANADIAN MINING JOURNAL | 17
FIRST NATIONS and MININGHUCKLEBERRY MINE
Huckleberryindd 17 2016-01-12 1052 AM
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For example Wong says Huckleberry works directly with the economic development arm of its partners to provide training jobs and developing on-call labour contracts including the Yinka Dene Economic Development Limited Partnership (YLP) (Wetrsquosuwetrsquoen First Nation) the Nootsenay Enterprises (Cheslatta Carrier Nation) the Hunustrsquo ot en Investment Corp (Nee Tahi Buhn Indian Band) and the Skin Tyee Nation
He says that in 2014 and 2015 the company spent more than 1200 hours of on-the-job training to students and interns from the Wetrsquosuwetrsquoen and Cheslatta Carrier First Nations who recently graduated from the Northwest Community Collegersquos School of Exploration and Mining Environmental Monitoring Assistant Program (EMAP) and other programs
In keeping with Huckleberryrsquos involvement with the commu-nity the company also supports the College of New Caledoniarsquos Mineral Processing Assistants Course by providing instructors on-site mill tours and job opportunities at the mine Several member of the Nee Tahi Buhn Indian Band have been working as on-call positions as environmental monitors and confined space guards in the mill Huckleberry staff regularly respond to community requests to attend speak and sponsor community events such as career days annual meetings mine tours and traditional community gatherings
ldquoDeveloping successful mining arrangements with Indigenous people isnrsquot only about technical astuteness itrsquos about relation-ships reconciliation and the balancing of interestsrdquo says Wong
Itrsquos obvious from these brief examples that Huckleberry Mines Ltd is taking its work with the First Nations seriously but itrsquos more than that
Mike Robertson Chief Policy Advisor Cheslatta Carrier Nation says ldquoIn 2005 the Cheslatta Carrier Nation challenged the mine of its commitment to sound environmental manage-ment During the subsequent 10 years Huckleberry manage-ment and staff committed to engage our people directly in planning and implementing a progressive reclamation program of old mining zone areas and in the development of new zones
Just like the re-vegetated dams and tailings sites our environ-mental relationship has blossomed toordquo
Chief Rene Skin Skin Tyee Nation added ldquoMarke Wong of Huckleberry Mines has participated in our Nationrsquos annual gath-erings including community open houses and cultural camps Hersquos engaged directly with our youth and elders for the past two years He has been diligent in keeping us informed of changes to the on-going miner operation and opportunities for our peoplerdquo
Managing Impacts and Restoring the LandLike all mining therersquos a certain impact to the natural environ-ment and following the closure of a mine there are permanent changes to the landscape The Huckleberry Mine is no exception
Conventional drilling blasting loading and hauling using a combination of electric drills and shovels diesel hydraulic exca-vators and both 100 and 150-ton diesel-powered haul trucks are used to process approximately 17000 tonnes of ore a day
Milling is accomplished by grinding the ore in a 975m diam-eter SAG mill and then through two ball mills The resulting slurry is processed by flotation to produce a concentrate of 27 per cent copper that is subsequently shipped by truck to the port at Stewart for storage and shipment to Japan
Tailings from the milling process is discharged into a tailings management facility and supernatant water is discharged to the aquatic environment through a pipeline to a submersed outfall and diffuser located in Tahtsa Reach part of a man-made hydro-power reservoir developed in the 1950s All water discharged falls within their provincial and federal permit limits
With this comes noise dust and all of the other factors asso-ciated with mining but as mentioned earlier Huckleberry Mines Ltd is aware of the situation and addresses them through its Environment and Community Affairs Program which includes a Fish Habitat Compensation Program
And itrsquos because of its efforts in this area that Huckleberry Mines Ltd recently received the 2014 BC Metal Mine Reclamation Award from the BC Technical Research Committee
Aerial photo of Huckleberry Mine located between Huckleberry Mountain and Tahtsa Reach
Huckleberryindd 18 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 19
on Reclamation (BCTRCR) and the Mining Association of BC (MABC) in recognition for outstanding practices in its fish habitat restoration program a program that actually increased the available fish habitat in the area of the mine as well as its successful relationship building efforts with First Nations
Even before the mine was built the company recognized that its minersquos footprint could have an impact on the available fisher-ies habitat in the area In particular ldquoCreek 4rdquo a known fish-bearing stream was expected to be impacted and so a plan was made to conduct some habitat enhancements in the area
Fisheries surveys conducted by Hatfield Consultants of North Vancouver identified nearby ldquoCreek Mrdquo which at the time was not a fish-bearing stream due to a naturally occurring barrier to fish ndashie a steep gradient reach that stopped any fish from reaching a headwater pond
Huckleberry Minersquos plan involved constructing a series of steps or weirs lined with geotextiles and anchored with rock fill These works were constructed by a team from Cariboo Divers from designs prepared by Hatfield Consultants
Subsequent fish surveys conducted between 2001 and 2011 showed initial success and that adult rainbow trout were present in the headwater pond and juveniles were present in the lower reaches
However subsequent surveys conducted between 2008 and 2011 indicated that the juvenile fish numbers decreased to record lows in 2011 The decline in fish numbers was attributed to failure of the weirs in the lower and middle fishways causing juveniles to become stranded in isolated pools and precluding adults from reaching the preferred spawning habitat between the lower and middle fishways
When initial monitoring of the remediated area in 2013 and 2014 was conducted Environmental Monitoring Assistants from the Yinka Dene Economic Limited Partnership and the Nootsenay Enterprises Ltd were called to assist in the evaluation of the stability of the constructed works as well as presence of fish and the structural integrity of the fishways have remained intact through high-flow periods with no erosion or undermin-ing of the weir structures
Cody Reid Deputy Chief amp Environmental Coordinator Nee Tahi Buhn Indian Band said ldquoThe design construction monitoring and maintenance of the Creek M fishway has led to an overall net increase in fish habitat in the area surrounding the mine in Tahtsa Reachrdquo
And David Belford Mineral and Natural Resources Liaison Officer Wetrsquosuwetrsquoen addedrdquo The HML Environmental team and participating consultants are to be commended on their proactive approach to reclaiming the fish habitat and to increas-ing that habitat within the mine footrdquo
During the 2013 fish survey 39 rainbow trout were captured the largest number of fish observed since 2008 These observa-tions were made even while construction of the middle reach fishways was ongoing
Marke Wong says that Huckleberryrsquos plans are to continue monitoring to confirm the effectiveness of the restoration work including hydraulic functioning physical stability and structural integrity fish distribution and net gain
From the operation of a mine in the mountains to the refur-bishing of a fishway in a local waterway Huckleberry Mines Ltd continues to show its appreciation and respect for the environment and the First Nations communities it works with in British Columbia
Perhaps the most important message for industry is that the example set by Huckleberry Mine and its First Nation commu-nity partners demonstrates that when parties begin to have meaningful dialogue and understanding develops on both sides then the path to cooperation and partnership is open
In the case of Huckleberry Mine this has led to the devel-opment of partnerships that have helped it expand its opera-tions and have help provide support during tough economic times
The nomination of Huckleberry Mines Ltd for the 2014 BC Metal Mine Reclamation Award came from its First Nation Partners because as Chief Karen Ogen said ldquoOur partnership with Huckleberry Mines has made a big difference in our small community Since the 2013 partnership agreement was signed our people have benefitted from jobs training and business opportunities Our experience with Huckleberry has been very positive and we have greatly appreciated Huckleberryrsquos efforts to engage with our community and to work with our business arm the Yinka Dene Economic Partnership The Wetrsquosuwetrsquoen First Nation is very pleased to nominate Huckleberry Mines for this awardrdquo
And lastly Mike Robertson added ldquo The Cheslatta Carrier Nation has been a successful Huckleberry Mines Limited con-tractor on a number of projects including a tailings dam We have our members employed by Huckleberry Mines and we maintain regular contact with its staff and management on all aspects of operations We support the nomination because we are confident they will continue and enhance their innovative and progressive practices of returning the land to a near natural self-sustaining staterdquo CMJ
FIRST NATIONS and MININGHUCKLEBERRY MINE
Material for Huckleberry Minersquos step-building program being delivered to the site by helicopter
Huckleberryindd 19 2016-01-12 1141 AM
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FIRST NATIONS COMPANY PROVIDES VITAL ROADBUILDING SERVICES
TO REMOTE COMMUNITIESStaff Report
REWARDSROADto
Creeindd 20 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 21
FIRST NATIONS and MINING
K imesskanemenow is a Cree word that means ldquoThis is our Roadrdquo a fitting name for the winter road management company that is owned and operated by four northern First Nations Attawapiskat Fort
Albany Kashechewan and Moose Cree Their company Kimesskanemenow Corporation (also
known as K Corp) was founded in 2001 and for the past 15 years has been responsible for building and maintaining the Western James Bay Winter Road (JBWR) which starts in Moosonee and travels 312km up the western coast of James Bay connecting the communities of Fort Albany and Kashechewan and eventually ending at the Attawapiskat First Nation
The road is a lifeline to the remote areas in the James Bay Lowlands of Northern Ontario and without it existing and future development of this part of the country would not be possible
In fact itrsquos thanks to the road that K Corp helped build that companies like De Beers Canada are in the north
As most people know De Beers Canada made international headlines when it built the Victor Mine in 2006 (the first dia-mond mine in Ontario at a cost of about $1 billion) approxi-mately 90km west of the coastal community of Attawapiskat First Nation
Since the open-pit mine began production in 2008 with an annual tonne processing capacity of about 27 million tonnes and an annual carat production capacity of 600000 carats it has proven to be a key to Northern Ontario development and its communities
With an estimated mine life to 2018 the Victor Minersquos ener-gy and equipment needs will continue for at least two more years and according to K Corp cannot be met without the JBWR
Air transport is prohibitively expensive so the winter road is considered by far the most affordable way to supply the remote mine with the necessary 450 loads of cargo and 10 to 11 million litres of diesel fuel that it consumes each year
But the Victor Mine is not the only site that requires a reliable supply of goods and services Similar transportation challenges also face other remote northern First Nations communities that need to truck goods and fuel via seasonal winter roads
With the exception of Moose Cree First Nation which has a railway line to Cochrane air travel is the only transportation available year-round for the three other First Nations which for most community residents is prohibitively expensive
Thanks again to the JBWR it provides a critical socio-eco-nomic tie between the communities as well as a significant source of employment and to keep relationship going Kimesskanemenow Corporation and De Beers Canada have entered into a productive partnership
In 2004 the two parties signed a Winter Road Agreement which was re-negotiated in 2014 Under the agreement De Beers pays the bulk of the costs of the roadrsquos construction and maintenance costs while the balance of the costs are provided by the Provincial and Federal governments
Kimesskanemenow Corporation is guided by three central priorities Building capacity in its communities ensuring that its
member communities receive maximum benefits and mainte-nance of traditional culture which naturally includes environ-mental protection
The company also ensures that money from building and main-taining the road stays in the hands of local First Nation members
To do this the road is constructed and maintained entirely by local community members either as direct employees or through local contractors This has required developing capacity which the company has done through training and education programs
The practical effect of these guiding principals is that during the winter months roughly 200 individuals work on the road helping ensure that the road brings economic benefits to individ-uals families and communities
For many seasonal employment gained through constructing and maintaining the winter road is the only consistently avail-able work in the community Furthermore dividends from the company go back to the hands of the communities to be used as they see fit
Finally Kimesskanemenow Corporation donates to commu-nity-based initiatives that will benefit the communities with each of the four communities allotted an annual amount
Reflecting the corporationrsquos central values the money is used to fund initiatives that benefit youth the environment or main-tain traditional ways of living
One example of the programs that the corporation helps fund is CreeFest a celebration of Cree culture that is held annually in the Mushkegowuk communities
The company also funds the Edward W Chilton scholarship at Northern College in honour of the late Ed Chilton the com-panyrsquos first president The scholarship is awarded to community members to further their education
K Corprsquos list of smaller grants available online include many community and cultural programs that maintain the vitality of all these communities
Kimesskanemenow Corporation maintains an important piece of infrastructure that benefits the communities and allows for the ongoing operation of the Victor Diamond Mine As a cooperative venture the corporation has proven itself to be invaluable to both the communities and the mining company CMJ
Thanks to the efforts of K Corp the Western James Bay Winter Road provides access to the remote areas of Northern Ontario
Creeindd 21 2016-01-12 1052 AM
22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
WHERE WE STANDSERIOUS QUESTIONS DESERVE SOME SERIOUS ANSWERS Staff Report
I trsquos been just over a year since the Native Womenrsquos Association of Canada (NWAC) received funding from Aboriginal Affairs and Northern Development Canada (AANDC) to identify and ask questions about the barriers
indigenous women face and secondly to get direct and honest answers as to what are the realistic opportunities for them in the mining industry
Basically as the headline says they want to know where they stand insofar as their positions within the mining industry are concerned
The questions NWAC put on the table at a recent forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development dealt with two perspectives the first looked into resource development corporations and sought to understand what these corporations knew about aboriginal women and the second was from aboriginal women and how they viewed the mining industry with regards to economic devel-opment and employment opportunities
The forum was attended by an impressive gathering of female indigenous leaders and representatives from the resource devel-opment sector A full list of the participants is featured in the adjacent box
The intent of the engagementdiscussion session was to initi-ate a constructive dialogue amongst the participants with the overall goal of
s increasing the labour market participation of indigenous women in the resource development sector
s ensuring indigenous womenrsquos voices are heard in the devel-opment of these projects
s sharing of information on the industry and
s discussing the various opportunities and barriers facing indigenous women who wish to work in the industry
A DISTINGUISHED PANEL OF WOMEN ATTEND OTTAWA FORUM
Siobhan Dooley Hatch EngineeringGrant Goddard New Gold Inc (Rainy River Project)Karina Kesserwan Kesserwan (Law ndash Strategy ndash Solutions)Stacey Jack New Gold Inc (Rainy River Project)Christopher Lefebvre Aramark CanadaMireille Pilotte New Millennium IronRachel Pineault Detour Gold CorporationKate Rafter Employment and Social Development CanadaLouise Reid-Schloen Hydro OttawaJamie Saulnier Running Deer ResourcesNancy Veal Resolute Forest ProductsMarilyn Capreol Shawanaga First NationPamela Eyles BC Native Womenrsquos AssociationSusan Forth Shawanaga First NationElize Hartley Ontario Native Womenrsquos AssociationMarian Horne Yukon Aboriginal Womenrsquos CouncilNoreen McAteer Alberta Aboriginal Womenrsquos SocietyVerna Polson Quebec Native Women IncTori-Lynn Wanotch Saskatchewan Aboriginal Womenrsquos Circle CorpBeverly Blanchard Native Womenrsquos Association of CanadaSydney Ducharme Native Womenrsquos Association of CanadaClaudette Dumont-Smith Native Womenrsquos Association of CanadaDan Peters Native Womenrsquos Association of CanadaMerv McLeod McLeod-Wood Associates IncNancy Wood McLeod-Wood Associates Inc
Beverly Blanchard (standing) of the Native Womenrsquos Association of Canada addresses delegates attending a forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development
Women in Miningindd 22 2016-01-12 1053 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 23
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
andor economic opportunitiesFor example when impact benefit agreements (IBAs) are
completed they tend to be locally focused and may not consider indigenous women that do not reside in the community or indigenous individuals who are not members of the particular community
From the indigenous womenrsquos perspective at the forum it was noted that indigenous womenrsquos opinions on the resource devel-opment sector were varied and divergent Like most things in life there were some women who are in favour of the mining industry and there are some who are against it
Many who are against the sector perceived it to be counter to the traditional role of indigenous women as water-keepers and caretakers of Mother Earth but on the other hand research found that there was also a significant percentage of indigenous women who were ambivalent towards the industry
Due to length and detail of the forum (from which this article is based) the information has been drastically reduced to fit the space
For complete details and a copy of the full Bridging the Gap Aboriginal Women and Resource Development Report please contact Beverly Blanchard Strategic Policy Partnership and Planning NWAC Ottawa bblanchardnwacca CMJ
INDIGENOUS WOMEN and MINING
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Women in Miningindd 23 2016-01-12 1053 AM
24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
A s probably many of you know times are tough right now Commodity prices are slumping across the board affected by an overall slowing global economy that is being felt throughout Canada
But even during a stubborn downturn in global demand for many minerals and metals itrsquos no time to get down on mining because mining never goes away
Minerals and metals are the very foundation of virtually all of the goods we depend on in our daily lives The world will con-tinue to need mining and Canada can and should continue to be an important place where mining happens
A Look at Market ConditionsSo first how bad is the market
Global economic growth has been volatile in recent years Every time the Bank of Canada the IMF World Bank or others make growth projections it seems they amend them a few months later and always downwards With few exceptions the global economy is not doing well at all
The key economy for the mining sector is China which today consumes almost 50 per cent of the worldrsquos minerals and metals And Chinarsquos growth rate has been slowing along with growth rates in other emerging markets like Brazil Mexico and several Asian and African countries that are also falling
The one major exception is India whose growth is around 75 per cent and with its 13 billion people is seen as the next China in terms of minerals and metals consumption as the coun-try begins to rapidly industrialize
A Bedrock of the Canadian EconomyEven in a slump miningrsquos contribution to Canada is enormous
Despite some job losses at some operations mining and min-eral processing are directly employing more than 375000 Canadians including well over 10000 Indigenous Canadians paying the highest average industrial wage in the country Mining remains proportionally the largest employer of indige-nous Canadians
Mining accounts for roughly 20 per cent of the overall value of Canadian exports valued at nearly $90 billion
Nationally we pay an average of $38 billion annually in corporate taxes and royalties to federal provincial and territorial governments
Mining companies are also paying significant royalties to indig-enous communities across the country indirectly through govern-ment resource revenue sharing and in some cases directly
Wersquore also supporting the second largest mining-supply sector in the world More than 3700 companies provide a wide spec-trum of services to the Canadian mining industry with an increasing number of these being indigenous-owned businesses
A major challenge facing mining in Canadarsquos north today is its lack of infrastructure The north is our industryrsquos future but the territories and the northern parts of our provinces lack criti-cal infrastructuremdashroads electricity ports railwaysmdashto service mines and get products to market
This lack of infrastructure is felt by communities many of them indigenous located in the north
According to the Mining Association of Canadarsquos (MAC)
MINING AND INDIGENOUS PEOPLES CANADArsquoS FUTURE By Pierre Gratton
Delegates attending the 23rd Annual Conference of the Canadian Aboriginal Minerals Association in Vancouver listen to talks during the three-day event
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 24 2016-01-12 1054 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 25
FIRST NATIONS and MINING
research it costs about 2 to 25 times as much to build and operate a gold and base metal mine in northern Canada off grid than in the south
We should be looking at ways to level the playing field in the north where infrastructure is lacking Canada needs a strategic collaboration involving industry and governments federal pro-vincial territorial and Indigenous to get this nation-building infrastructure in place
This can be done by increasing government investment in new infrastructure or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good
Additionally there is the issue of indigenous rights and title and how this affects the project certainty
Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and if necessary accommo-dated for activities on traditional indigenous territories affects project timelines and certainty
Connected to this is the concept of social license which in general terms defines the support earned by proponents to pro-ceed with and operate their project
The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects
That is a very complex issue The Supreme Court of Canada in its recent decision on the
Tsilhqotrsquoin First Nationrsquos claim recognized indigenous title a first in Canadian law
It also provided clear guidance on the criteria needed to demonstrate title and on the rights and obligations that flow from that in the process also identifying where title was found not to exist
It is a significant decision that provides us all with much more clarity going forward
But back to the question of the vetoThe Court clearly recognizes that in some circumstances the
right to title can be limited by the Crown So there is no abso-lute veto under Canadian law even in the case where title has been proven
But for the Crown to place limits on indigenous title it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead ndash a very significant test
At its core the decision continues a balancing act between empowering and limiting the authority of both indigenous peo-ples and governments The Court was very wise
So what does this mean for proponents There is the law and then there is reality No proponent
wants or should want to build a project that is unwelcome or opposed by local communities This is quite frankly an unsus-tainable option and one best avoided And most communities are open to the opportunities mining brings and increasingly so
Letrsquos look at reality in a different way
Today there are more than 250 agreements between mining companies and indigenous communities across the country It is decidedly rare that projects proceed without impact benefit or other such agreements concluded
These agreements which have matured with time and experi-ence provide significant local benefits and assurances including
Commitments on business procurement and often assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide
Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight
Support for skills training and mentoringDirect economic or financial benefitsSome of these agreements are transforming communities in
very significant waysNewgoldrsquos New Afton project in Kamloops is one such exam-
ple The diamond mines in the NWT are others as is Voiseyrsquos Bay We are seeing high levels of indigenous participation as high as 60 per cent in the case of Voiseyrsquos Bay increasing levels of post-secondary education and significantly improved eco-nomic and social outcomes
Nonetheless it is undeniable that the negotiation of these agreements takes time Trust must be built between the parties and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the pro-posed mine prior to it proceeding
Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association Photo by Tracey Sanders Photography
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 25 2016-01-12 1054 AM
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
AME BCindd 27 2016-01-12 110 PM
28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
PROFESSIONAL DIRECTORYA
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Hard-Line35 wwwhard-linecom
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ROBERT SEAGRAVES 416-510-6891 Fax 416-447-7658 rseagravescanadianminingjournalcom
JOELLE GLASROTH 416-510-5104 Fax 416-447-7658
jglasrothcanadianminingjournalcom
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W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
- 002
- 003
- 004
- 005
- 006
- 007
- 008-009
- 010-015
- 016-019
- 020-021
- 022-023
- 024-026
- 027
- 028-030
- 031
- 032
- 033
- 034
- 035
- 036
-
GET ON BOARDWITH A LEADING SOURCE OF MINING COMPANY amp PROPERTY DATA
The 2016 Mines Handbookis an incredibly powerful resource in your business arsenal
Featuring comprehensive pro les on over 2000 active publicly-traded mining companies as well as over 1400 mines and advanced projects related to those companies your business decisions will always be backed up by the most up-to-date industry data
Order Your Copy Today
Call 1-888-502-3456or by email at infonorthernminercom
wwwmineshandbookcom
Mines Handbook - 38 Lesmill Rd Unit 2 Toronto ON M3B 2T5
$136+ SH
CAMHAdindd 4 2016-01-12 1042 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 5
CANADIANCANADIANMining Journal
Established 1882
Canadian Mining Journal provides articles and information of practical use to those who work in the technical administrative and supervi-sory aspects of exploration mining and processing in the Canadian mineral exploration and mining industry Canadian Mining Journal (ISSN 0008-4492) is published 10 times a year by BIG LP Mining BIG is located at 38 Lesmill Rd Unit 2 Toronto ON M3B 2T5 Phone (416) 510-6891
Legal deposit National Library Ottawa Printed in Canada All rights reserved 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 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 please contact Russell Noble at 416-510-6742
Subscriptions mdash Canada $4795 per year $7695 for two years USA US$6095 per year Foreign US$7295 per year Single copies Canada $10 USA and foreign US$10 Canadian subscribers must add HST and Provincial tax where necessary HST registration 809744071RT001
From time to time we make our subscription list available to select companies 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 of the following methods Phone 1-888-502-3456 ext 2 Fax 416-447-7658 E-mail cholderglacier-bizinfocom Mail to Cindi Holder BIG Mining LP 38 Lesmill Rd Unit 2 Toronto ON M3B 2T5
We acknowledge the financial support of the Government of Canada through the Canada Magazine Fund toward our editorial costs
January 2016 Vol 137 mdash No 1 38 Lesmill Rd Unit 2 Toronto Ontario M3B 2T5 Tel (416) 510-6789 Fax (416) 447-7658 wwwcanadianminingjournalcom
Editor Russell B Noble 416-510-6742 rnoblecanadianminingjournalcom
Field Editor Marilyn Scales 613-270-0213 mscalescanadianminingjournalcom
Production Manager Jessica Jubb
Circulation Manager Cindi Holder 416-510-6789 ext 43544 cholderglacierbizinfocom
Publisher amp Sales Robert Seagraves 416-510-6891 rseagravescanadianminingjournalcom
Sales Western Canada Western USA and Quebec Joelle Glasroth 416-510-5104 jglasrothcanadianminingjournalcom
Toll Free Canada amp USA 1-888-502-3456 ext 2 or 43734
Group Publisher Anthony Vaccaro
EDITORIAL
By Russell Noble
ldquoNo workrdquo is the least of our worries
Now that wersquore heading into what forecasters say will be another dismal year itrsquos hard to get excited about the months ahead knowing wersquore going to continue hearing more about layoffs care and maintenance and worst of all outright closures
After the past couple of years of what the industry has experienced the words ldquoThey Shoot Horses Donrsquot Theyrdquo the title of Horace McCoyrsquos 1935 novel and later of a 1969 movie by the same name starring Jane Fonda pretty much describes the lsquoput me out of my miseryrsquo feeling that many in the mining industry are feeling
But like all doom-and-gloom stories therersquos usually something good to say and thank-fully and somewhat surprisingly thatrsquos where the theme of this issue ldquoFirst Nations and the Canadian Mining Industryrdquo comes in with a lsquopositiversquo message thatrsquos encouraging for almost all miners
As both sides of the fence have known for years the words ldquoFirst Nationsrdquo and ldquoMiningrdquo havenrsquot necessarily homogenized to make for a creamy-smooth feeling towards the use of lands and the extraction of the minerals they contain
In fact itrsquos safe to say that itrsquos been an oil-and-water relationship for centuries but like I just said things are looking a little more positive thanks to the recent emergence and under-standing that therersquos far more at stake than territorial lands and their contents
The Environment is something that almost everyone now agrees is far more important than quibbling over boundaries and minerals because as witnessed at the recent World Climate Summit in Paris France where even the United States Russia and China agreed on climate-change issues Mother Nature has been beaten to her knees because of emissions from the industrialized world
And admit it or not the resources industry is partly to blame for the mess of the worldBut to get back to my point of First Nations and Mining Industry relations the recent
federal election and the subsequent meeting of Prime Minister Trudeau with the Assembly of First Nations was a decade-late meeting that at least showed that the federal government was about to listen to the ldquocanaries of the coal minerdquo as First Nations communities were described at a recent conference in Vancouver because ldquotheyrsquore out there to warnrdquo
Those phrases were used during one of the presentations at the Canadian Aboriginal Minerals Associationrsquos three-day conference where more than 500 delegates from across the country heard speakers from First Nations and mining companies alike talk about a num-ber of things and in almost every case The Environment was mentioned
It was a common thread throughout the Conference and regardless of who was speak-ing the message was clear itrsquos time to clean up our act
And the ldquoourrdquo was collective and not directed at any one group because as everyone in the room agreed the issue at hand (The Environment) was far more important than terri-torial rights and mining privileges
As I quoted at the outset ldquoThey Shoot Horses Donrsquot Theyrdquo and unless everyone pulls together and that certainly means First Nations and the Mining Industry then the forecast-ers I mentioned earlier will be predicting dismal times far beyond the coming year CMJ
Editorialindd 5 2016-01-12 1139 AM
In 2015 Canadarsquos junior stock exchange the TSX Venture Exchange sunk to levels that a few years ago would have been inconceivable This drop caused primarily by the sustained slump in commodities led the SampPTSX Venture
Composite Index to sink below 500 points for the first time since the TMX group bought the Canadian Venture Exchange in 2001 The low point represents a 29 drop from where the TSXV started at the beginning of 2015 and a staggering 85 drop from its peak in 2007
A primary cause of the exchangersquos poor performance has been the extremely challenging market conditions facing extractive resource issuers At present more than 70 of the companies listed on the exchange operate within the mining or energy sec-tor After a two plus year depression in mining equities com-bined with weak prices for most metals as well as well as hydro-carbon products junior resource issuers have fallen out of favour with investors
TSXV White PaperThe TSXV conscious of the market realities facing its issuers and with the aim of attracting new investment conducted a lengthy consultation process with clients and stakeholders These consultations focused on identifying new initiatives to respond to realities facing its listed issuers and other market participants in light of the sluggish capital market conditions The outcome of the consultations was a White Paper issued on December 17 2015 It contains proposed broad based reforms to various TSXV rules policies and strategies aimed at fostering renewed interest in the exchange and its services The full text can be found at httpswwwtsxcomresourceen1252
The recommendations of the White Paper were synthesized into a three-pronged strategic reform program The first and second prongs of this program are particularly relevant for cur-rent and potential resource based issuers
Cost of complianceThe first prong of the program focuses on reducing the cost of compliance a primary area of concern for most resource issuers The White Paper proposes a number of rule changes including
s eliminating the general requirement for sponsorship of new issuers undertaking a reverse takeover (RTO) change of
business (COB) or other business combinations narrowing the application of shareholder approval require-
ments for inactive issuers undertaking an RTO or COBs implementing a director and officer ldquoNEXUS-typerdquo status
certification program to reduce or eliminate ongoing require-ments for certain individuals
s extending the shelf life of on-file personal information forms for directors and officers from three to five years
eliminating escrow requirements that overlap with similar requirements of the Canadian Securities Administrators
s implementing an automated system for transaction filing and accelerating response times to speed up overall transaction processing
Attracting new capitalThe second prong of the White Paperrsquos strategic reform pro-gram focuses on attracting new and more diverse capital to the TSXV The initiatives proposed under this prong are less tech-nical and less defined than those proposed under the first prong but include commitments to undertake active and ongoing promotion of TSXV-listed issuers through roadshow presentations to fund managers retail investors investment advisors and banks and research analysts instituting an ongo-ing streaming summary service of available public offerings and introducing a new market making program to be adminis-tered by the exchange
TSXV seeking feedbackWhile the exchange has committed to implementing the above listed reforms under an ldquoaggressive timelinerdquo prior to doing so it plans to host a series of town hall meetings where it will entertain feedback on the strategy and proposed initiatives In the coming months existing issuers and other interested parties who may be impacted by these reforms should carefully monitor the develop-ments and provide feedback as appropriate
Whether these initiatives will be successful in achieving their intended results remains to be seen but given the extremely challenging market environment for resource issuers the pro-posed reforms should be implemented efficiently and effectively to reduce the headwinds facing junior issuers CMJ
JAMES CLARE is a partner with Bennett Jones in Toronto
LAW
By James Clare
TSXV response to commodities slump
6 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Lawindd 6 2016-01-12 1043 AM
T he Truth and Reconciliation Commissionrsquos six-vol-ume 23-million-word final report was issued on December 15 2015 It not only contains stories from survivors of residential schools but a set of 10 guid-
ing principles and 94 recommendations or Calls to Action While the federal provincial and territorial governments
must act upon the majority of the 94 recommendations there are also recommendations for all sectors of society including the churches media arts academia and industry
For example the churches now have less than 90 days before issuing a joint statement by March 31 2016 on how they will implement the spiritual and religious components of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP)
The churches must also reject the concepts ndash such as ldquoterra nullisrdquo and the Doctrine of Discovery -- used by the church and state to assert sovereignty over Indigenous peoples and their lands
However I must point out that First Nations do not expect industry to atone for the sins of the past But we do however expect to be treated as equals and as the rightful owners of the land
Mining companies in Canada must recognize and acknowl-edge the era of Reconciliation as common place in all of its dealings with First Nations as it relates to mining exploration development extraction and remediation This also includes training and educating management and staff on First Nation history culture human rights and anti-racism
Here are some key points to consider s The Truth and Reconciliation process is becoming an institu-
tion in Canada that will inspire and influence positive approaches to relationships between Canada and its First Peoples
s Implementing the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) and respecting Treaties is a major focus within the TRC Calls for Action
s Business and industry in all Canadian sectors are being prompted by the TRC Report to become aware of the report and make efforts to build bridges This will close the divide between First Nations and Industry that was created as a
result of ignorance of history of Canadarsquos Indian Residential School past
s First Nations deep connection to the land is evident in lan-guage culture and world view ndash this is a key focus in many of the calls for action
s The respect and responsibilities that First Nation peoples have for the land is an important element to the process of Reconciliation that is now being recognized by federal juris-diction As noted in the 2015 Speech from the Throne the environmental assessment process will soon become formal-ized adding First Nations to the decision-making process as it pertains to the protection of the environment
s Benefits to First Nations regarding mining development are also a key factor in reconciliation The era of sealing a deal solely with an IBA (Impact Benefit Agreement) is a thing of the past First Nations seek to take on their roles as govern-ments beneficiaries and providers for their people
s The lsquoReconciliation Lensrsquo can be a way for industry to create stronger relations avoid conflicts build strong business partner-ships and help achieve collective prosperity with First Nations In conclusion here are four key messages that sum up the
outcomes from acting upon Reconciliation and forming a new relationship with our Peoples 1 Reconciliation can be a benefit to building strong mining
partnerships with First Nations2 Reconciliation as a policy approach for mining companies
will expedite relationship-building beyond most conflicts that arise out of resisting First Nation history and Cultural competence
3 The cost benefit to a Reconciliation approach in the mining industry is invaluable
4 Reconciliation in Canadian mining can cultivate a social con-sciousness that could define the industry as a 21st century legacy maker
I look forward to continued dialogue with the mining indus-try as we work together on making 2016 a breakthrough year for positive change Together we will build a better more inclusive Canada for our children and future generations CMJ
By Ontario Regional Chief Isadore Day Wiindawtegowinini
Mining must includeTruth amp Reconciliation
FIRST NATIONS
JANUARY 2016 CANADIAN MINING JOURNAL | 7
First Nationsindd 7 2016-01-12 1043 AM
8 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
NMENTENVIROTHE
Pho
to
Thin
ksto
ckc
om
THE WORLD AGREES ENOUGH IS ENOUGHBy Russell Noble
FN Introindd 8 2016-01-12 1044 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 9
NMENTENVIROMother Nature canrsquot take it much longer
E ver since John Cabot landed in Newfoundland in 1497 and started trekking westward into the unknown exploration and later development has left its mark on The Environment
In fact itrsquos left more than a mark itrsquos scarred the earth forev-er thanks to an unquenchable thirst for discovery but like it or not the world wouldnrsquot be what it is today if not for yesterdayrsquos adventurers
Regardless of how appreciative we are to John Cabot and The Vikings before him Mother Nature has taken the brunt of their quests through the loss of trees the displacement of wildlife polluted waterways and often the disappearance of fish and most recently in the news air quality because of toxic emissions resulting in climate changes
In just over 500 years the world has gone from pristine to polluted and it wasnrsquot until recently when the ldquoWorld Leaders Unanimously Agreedrdquo at the United Nationsrsquo Climate Summit in Paris France that everyone became more aware of the fact that the world has had enough it canrsquot take any more
And thatrsquos when The Environment started receiving the worldwide attention it deserves
ldquoAnd itrsquos about timerdquo says The Assembly of First Nations of
Canada and the 634 bands it represent across the country because thatrsquos what indigenous people from coast-to-coast-coast want mosthellip a clean safe and bountiful place to live and work
As one delegate attending the 23rd Annual Canadian Aboriginal Minerals Associationrsquos meeting in Vancouver said late last year ldquoWersquore the canaries in the coal mines wersquore out there to warnrdquo
Philosophical yes straightforward no question but more-over it was a sincere and insightful message that Federal Indigenous Affairs Minister Carolyn Bennett later echoed by saying ldquoThere is every evidence Canadarsquos Aboriginal Peoples are indeed on the front lines of climate changerdquo
As already mentioned concern for the well being of The Environment is a centuries-old topic for discussion and when you look at the photo on these pages itrsquos hard to understand how mankind can do what itrsquos doing to endanger such perfection
But it is and doing so at such an alarming rate that no matter what the 197 world leaders agreed to in Paris last year scenes like this are being threatened around the world every day and unless we take The Environment seriously future generations will have only photographic images of the lsquoWay We Werersquo
Thankfully both the First Nations and the Canadian Mining Industry are two groups working on improving the lsquoWay We Arersquo so that future generations donrsquot have to look back on refer-ence material to see how things used to be
Stories on the following pages take a closer look at First Nations and Mining Relations and how theyrsquore working in har-mony and in the best interest of everyone and everything involved CMJ
FIRST NATIONS and MINING
FN Introindd 9 2016-01-12 1044 AM
NWT INDIGENOUS JUNIOR MINER ANTES UP IN ITS AGGRESSIVE LEAP INTO OWNERSHIP IN MINING ECONOMY
By Northern Correspondent Bill Braden
BOLD amp BRAVE
10 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
T wo years ago the Dene of the NWT bold-ly jumped into the dragonrsquos jaw and launched their own mining company
The targets significant polymetallic potential near Great Bear Lake and dia-monds near the Ekati and Snap Lake mines
The vision be more than a source of labour and supplier of services to other miners They want to be
their own stand-alone producer among the first in Canada to pursue indigenous mine ownership
Wait a minute Arenrsquot First Nations usually railing against resource development the constant thorn in miningrsquos side And in the face of NWTrsquos gnarly record as a high-risk mining envi-ronment with dwindling exploration and labyrinthine regula-tions what is driving a home-grown indigenous company to do this in the first place
Aerial photo of the mill and camp at Terra Silver Mine abandoned near the south shore of Great Bear Lake since 1985 Photo courtesy of DEMCo LP
Bradenindd 10 2016-01-12 1138 AM
ldquoThe main thing is people want to participate and take ownership Itrsquos coming from the simple statements that have been made at the Dene Nation assemblies for yearsrdquo says Darrell Beaulieu the President and CEO of Denendeh Investments Incorporated (DII) and its latest ven-ture DEMCo Ltd
ldquoNo one ever said we are against business or development We said we want to be participants in development meaningful participantsrdquo
To a considerable extent that has indeed been the case in the NWT Beaulieu points to the prosperous part-nerships among more than 60 NWT indigenous businesses and diamond giants De Beers Dominion and Rio Tinto
Between 1996 and 2011 $42 bil-lion or 33 per cent of their northern spend was with indigenous companies and almost 9500 person years of employment were filled by indigenous workers in that period about 25 per cent of the total labour quantum
But he wanted to go beyond the jobs and servicesupply deals and take the ambitious jump to the equity level The current slump in mining activity and eroding values on existing properties gave momentum to Beaulieursquos plan to create DEMCo in the spring of 2013
ldquoSo the timing to pick up properties andor junior mining companies is upon usrdquo said DIIrsquos website at the time
JANUARY 2016 CANADIAN MINING JOURNAL | 11
FIRST NATIONS and MINING
Darrell Beaulieu CEO of DEMCo LP and this yearrsquos winner of the Skookum Jim Award from PDAC for outstanding achievement and contribution to mining by an aboriginal group or individual
Bradenindd 11 2016-01-12 1138 AM
12 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It continued on a note of high optimism ldquoThe silver lining to present and initiate a Denendeh exploration and mining compa-ny at this time may help create momentum for fundamental change in First Nation participation in resource development in the Northwest Territories and Canadardquo
The soft-spoken Beaulieu 58 is an Akaitcho Dene born and raised in Yellowknife who has earned numerous accolades for his leadership The most recent is the 2016 Skookum Jim Award from the Prospectors and Developers Association of Canada acknowledging significant achievement and contribution to mining by an indigenous group or individual
Hersquos is no stranger to indigenous and northern corporate governance Hersquos a three-time Chief of the Yellowknives First Nation and has held directorships with Northland Utilities the NWT Business Development and Investment Corporation and numerous industry associations
And hersquos no stranger to mining either as one of his first jobs was with Noranda Exploration doing EM surveys mapping prospecting claim staking and general exploration work
Beaulieu has been an influential advocate for Dene invest-ment through the parent group Denendeh Investments Limited Partnership an alliance of 27 First Nations communi-ties across the NWT It boasts a diverse portfolio including oil and gas drilling services electric utilities communications real estate and now exploration and eventually mining
Optimistic StartTo get DEMCo set up Beaulieu hired Yellowknife prospector
Trevor Teed into the shop as exploration vice president Teed brought with him a hunch hersquod been plugging away at for almost two decades the potential for a new discovery in the Camsell River region southeast of Great Bear Lake directly under four historic silver producers that operated from the 1960s to 1985
rdquoI suggested to him that the potential for IOCG (iron oxide-copper-gold) is what attracted me to it not silverrdquo says Teed ldquoDarrell agreed and despite the initial doubt of two of our three contract geologists our initial thoughts have been proven and there is IOCG at Camsell Riverrdquo
ldquoFirst it was kind of a desktop jobrdquo says Beaulieu ldquoThe data was all over the place We had to go to the United Sates Alberta BC the Geoscience office here in Yellowknife personal homes and at site too it was amazing where all the data ended up after 30 yearsrdquo
They resampled thousands of metres of decades-old core at site (that saved millions of exploration dollars) The results first disclosed in late 2014 proved out their early optimism
ldquoBack in the 70s they were only looking for silver We looked at the core and did some more prospecting and we found that hey therersquos a lot of gold there Whatrsquos more after our first field season was confirmation therersquos a huge magnetic body there also It looks like we have an IOCG depositrdquo
Beaulieu is too savvy to get excited at this point but polymet-alic IOCG deposits (Australiarsquos mammoth Olympic Dam is one) can be truly massive The discovery of the zone estimated roughly at some seven by 16 kilometres in size was first announced in late 2014
Teed says he had taken his hunch to other miners but credits Beaulieu with the vision and the belief to carry it forward His investigation so far has uncovered an extensive magnetic zone under the old silver digs
ldquoIt is a significant event I think that when the rest of Canada catches up to what we have wersquore going to see significant explo-ration again in the areasrdquo predicts Teed
That significance is backed up by mapping and geophysical
Noel Michel of Lutsel Krsquoe takes a break during a prospecting trip near Great Bear Lake Photo courtesy of DEMCo LP
DEMCo Exploration Vice-president Trevor Teed CEO Darrell Beaulieu and COO Margaret Gorman billbradenphoto
Bradenindd 12 2016-01-12 1138 AM
work carried out by the Geological Survey of Canada and the NWT Geological Survey over the past decade
Geologist Scott Cairns Manager of Bedrock Mapping and Mineral Deposits at the NTGSrsquos Yellowknife office says the historic production of silver and uranium is indicative of larger polymetallic IOCG deposits in the Great Bear magmat-ic zone
ldquoThey are definitely in a high mineral potential area thererdquo says Cairns adding that DEMCorsquos claims are at the north end of that zone while Fortune Mineralrsquos NICO project about 200km to the south is on its southern edge
Cairns says federal GSC geologists have recently completed a large study of alterations that can help identify IOCGs ldquoSo therersquos an enormous volume of work of geophysical characterisa-tions ways to track down where these potentially valuable deposits might be hiddenrdquo he says
DEMCorsquos IOCG discovery has not sparked any new rush of interest in the region But on a territory-wide basis says Cairns the number of inquiries website and office visits to his library and data bases has been spiking in the past few months
ldquoI think what wersquore seeing is that while itrsquos difficult to fund boots-on-the-ground exploration companies are doing their homework right now and will be using that when conditions improverdquo
In The GameAs of late December 2015 DEMCo was fully engaged in plan-ning the 2016 field program which Beaulieu hopes will include airborne geophysical work as well as more ground sampling They will spin off another subsidiary Camsell River Minerals Ltd to carry the project
But just like any other junior the team will be out there looking for private cash during one of the metal marketrsquos deepest and most prolonged slumps
And predictably thatrsquos not the only hurdle The claim block is within an overlapping boundary of both the Tlicho and Sahtu land claim regions
The four old mines on the claim block are among dozens across the NWT deemed for rehabilitation by the federal govern-ment There is an existing airstrip but land access would largely be on the historic Denison Ice Road from Behchoko first opened in the 1960s but dormant for 30 years
Yet another layer is working with the NWT Government as it gets used to managing the mines portfolio after its transfer from Ottawa to the NWT in April of 2013
And because DEMCorsquos parent corporation is governed by an alliance of all NWTrsquos First Nations - and itrsquos their money thatrsquos at risk - Beaulieu also has to satisfy a board that isnrsquot all that familiar with being on the investor side of the mining equation
Was it a hard sell to get his board on side in the first place No says Beaulieu pointing to DIIrsquos investment of about $2
million in cash and time to date ldquoThe hard sell is going to be finding the money to add value without diluting too muchrdquo
He says hersquoll be walking the floors at the Vancouver Cordilleran Roundup and Torontorsquos PDAC in 2016 promoting DEMCo
The Camsell project is where DEMCo is now fully focused but it is also invested in the NWTrsquos prolific diamond fields
In the Lac de Gras region east of the Ekati diamond mine the Fin claim block hosts known diamondiferous kimberlites while the Jen block has six known geophysical targets that have not yet been drilled
The Jaedenz block sandwiched between the Gahcho Kue and Snap Lake mines was explored and drilled by both De Beers and Winspear in the 1990s
JANUARY 2016 CANADIAN MINING JOURNAL | 13
Yellowknife-born Trevor Teed prospector and DEMCo VP of Exploration at the Camsell River properties Photo courtesy of DEMCo LP
Among the available resources combed over by DEMCo were these teetering core racks some dating back decades Photo courtesy of DEMCo LP
Bradenindd 13 2016-01-12 1138 AM
No work was done during the 2015 season and the company has not yet announced whether it will commit anything this year
An Indigenous AdvantageDoes being an Aboriginal-owned venture mean DEMCo will get a better reception from investors or an easier ride through the Northrsquos rocky regulatory regime
ldquoWe havenrsquot really pushed itrdquo says Beaulieu ldquoWersquore focussed on doing our own thing for now It takes time to grasp and understand what is it you have [Wersquore ask-ing] the same type of questions that any junior asks wearing the same boots same gloves We know itrsquos a high-risk business but itrsquos a high reward too Whoever is in there has really got to manage and yoursquove got to be able to sustain your own neck In terms of the regulatory regime that is an independent process we respect it and expect to be treated like everyone elserdquo
In a February 2015 interview with the business magazine Corporate Knights he did allow that having the Dene communities at his own board table gives him a home-court advantage
ldquoI think community engagement is our competitive edge And that edge is available because we are a Northern Dene-owned com-
14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Ground-level (above) and aerial (opposite page) of mill and camp at Terra Silver Mine near Great Bear Lake
Bradenindd 14 2016-01-12 1138 AM
pany And wersquore operating in a territory where indigenous people have a significant influence on our activityrdquo he said
Don Bubar as President and CEO of Avalon Rare Metals Inc and in previous roles with the PDAC is a passionate advocate for indigenous inclusion in Canadarsquos mining sector He believes that future mineral exploration in northern Canada will be led by indig-enous businesses
ldquoIt is natural that this participation would progress from a pas-sive one as a service provider to a more active one as an owner of a mineral development business with title to active projects Darrell Beaulieu and DEMCo are providing the leadership for the Dene Nation in going down this pathrdquo said Bubar in an email
ldquoPart of the challenge the industry faces is simply creating more public awareness of the importance of the industry to the northern economy especially for aboriginal communities Eco-activists have been successful in demonizing the industry in the North DEMCo has a key role to play in changing the perception that mineral exploration and development creates only unwanted environmental impacts without creating significant economic benefits for north-ernersrdquo CMJ
JANUARY 2016 CANADIAN MINING JOURNAL | 15
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FIRST NATIONS and MINING
Bradenindd 15 2016-01-12 1138 AM
COMMUNITY EFFORT HELPSSOLVE FISHWAY PROBLEMBy Russell Noble
PARTNERSHIPA WINNING
16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Shannon Haizimsque Chief Operating Officer of the Yinka Dene Economic Limited Partnership the commercial business arm of the Wetrsquosuwetrsquoen First Nations at the Huckleberry Mine site Adjacent photo shows a series of steps lined with geotextiles and anchored with rock fill as part of the minersquos Fish Compensation Plan
Huckleberryindd 16 2016-01-12 1052 AM
Almost everybody associates the name ldquoHuckleberryrdquo with Mark Twainrsquos Huckleberry Finn and his comrade Tom Sawyer but in the mining community Huckleberry is also the name of a Canadian mine that has been in production in northwestern British Columbia
since October 1997 Huckleberry Mines Ltd is an active open-pit coppermolyb-
denum mine located approximately 100km south of Houston BC Production rates (in 2014) were 34 million pounds of copper 2202 ounces of gold and 183218 ounces of silver and like many mines today itrsquos owned by a consortium of companies under one name Huckleberry Mines Ltd (HML) of Vancouver
The mine is owned and operated by Huckleberry Mines Ltd which in turn is owned 50 per cent by Imperial Metals Corporation of Vancouver and 50 per cent by a Japanese consor-tium including Mitsubishi Materials Corporation Dowa Mining Co Ltd and Furukawa Co
Partnering with First NationsSince 2013 Huckleberry Mines Ltd has signed communication amp partnership agreements with five separate First Nations orga-nizations Wetrsquosuwetrsquoen First Nation Cheslatta Carrier Nation Office of Wetrsquosuwetrsquoen Nee Tahi Buhn Indian Band and Skin Tyee Nation
Marke Wong Manager of Environmental amp Community Affairs for Huckleberry Mines Ltd says ldquoThese types of agree-ments have been instrumental in the success of Huckleberry Mine Because of the open dialogue with Indigenous communi-ties we have generated better understanding among all parties and this has increased First Nations access to economic opportu-nities such as job training employment and service contracts and has provided Huckleberry with dedicated community part-ners and a strong reliable work force and able contractorsrdquo
JANUARY 2016 CANADIAN MINING JOURNAL | 17
FIRST NATIONS and MININGHUCKLEBERRY MINE
Huckleberryindd 17 2016-01-12 1052 AM
18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
For example Wong says Huckleberry works directly with the economic development arm of its partners to provide training jobs and developing on-call labour contracts including the Yinka Dene Economic Development Limited Partnership (YLP) (Wetrsquosuwetrsquoen First Nation) the Nootsenay Enterprises (Cheslatta Carrier Nation) the Hunustrsquo ot en Investment Corp (Nee Tahi Buhn Indian Band) and the Skin Tyee Nation
He says that in 2014 and 2015 the company spent more than 1200 hours of on-the-job training to students and interns from the Wetrsquosuwetrsquoen and Cheslatta Carrier First Nations who recently graduated from the Northwest Community Collegersquos School of Exploration and Mining Environmental Monitoring Assistant Program (EMAP) and other programs
In keeping with Huckleberryrsquos involvement with the commu-nity the company also supports the College of New Caledoniarsquos Mineral Processing Assistants Course by providing instructors on-site mill tours and job opportunities at the mine Several member of the Nee Tahi Buhn Indian Band have been working as on-call positions as environmental monitors and confined space guards in the mill Huckleberry staff regularly respond to community requests to attend speak and sponsor community events such as career days annual meetings mine tours and traditional community gatherings
ldquoDeveloping successful mining arrangements with Indigenous people isnrsquot only about technical astuteness itrsquos about relation-ships reconciliation and the balancing of interestsrdquo says Wong
Itrsquos obvious from these brief examples that Huckleberry Mines Ltd is taking its work with the First Nations seriously but itrsquos more than that
Mike Robertson Chief Policy Advisor Cheslatta Carrier Nation says ldquoIn 2005 the Cheslatta Carrier Nation challenged the mine of its commitment to sound environmental manage-ment During the subsequent 10 years Huckleberry manage-ment and staff committed to engage our people directly in planning and implementing a progressive reclamation program of old mining zone areas and in the development of new zones
Just like the re-vegetated dams and tailings sites our environ-mental relationship has blossomed toordquo
Chief Rene Skin Skin Tyee Nation added ldquoMarke Wong of Huckleberry Mines has participated in our Nationrsquos annual gath-erings including community open houses and cultural camps Hersquos engaged directly with our youth and elders for the past two years He has been diligent in keeping us informed of changes to the on-going miner operation and opportunities for our peoplerdquo
Managing Impacts and Restoring the LandLike all mining therersquos a certain impact to the natural environ-ment and following the closure of a mine there are permanent changes to the landscape The Huckleberry Mine is no exception
Conventional drilling blasting loading and hauling using a combination of electric drills and shovels diesel hydraulic exca-vators and both 100 and 150-ton diesel-powered haul trucks are used to process approximately 17000 tonnes of ore a day
Milling is accomplished by grinding the ore in a 975m diam-eter SAG mill and then through two ball mills The resulting slurry is processed by flotation to produce a concentrate of 27 per cent copper that is subsequently shipped by truck to the port at Stewart for storage and shipment to Japan
Tailings from the milling process is discharged into a tailings management facility and supernatant water is discharged to the aquatic environment through a pipeline to a submersed outfall and diffuser located in Tahtsa Reach part of a man-made hydro-power reservoir developed in the 1950s All water discharged falls within their provincial and federal permit limits
With this comes noise dust and all of the other factors asso-ciated with mining but as mentioned earlier Huckleberry Mines Ltd is aware of the situation and addresses them through its Environment and Community Affairs Program which includes a Fish Habitat Compensation Program
And itrsquos because of its efforts in this area that Huckleberry Mines Ltd recently received the 2014 BC Metal Mine Reclamation Award from the BC Technical Research Committee
Aerial photo of Huckleberry Mine located between Huckleberry Mountain and Tahtsa Reach
Huckleberryindd 18 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 19
on Reclamation (BCTRCR) and the Mining Association of BC (MABC) in recognition for outstanding practices in its fish habitat restoration program a program that actually increased the available fish habitat in the area of the mine as well as its successful relationship building efforts with First Nations
Even before the mine was built the company recognized that its minersquos footprint could have an impact on the available fisher-ies habitat in the area In particular ldquoCreek 4rdquo a known fish-bearing stream was expected to be impacted and so a plan was made to conduct some habitat enhancements in the area
Fisheries surveys conducted by Hatfield Consultants of North Vancouver identified nearby ldquoCreek Mrdquo which at the time was not a fish-bearing stream due to a naturally occurring barrier to fish ndashie a steep gradient reach that stopped any fish from reaching a headwater pond
Huckleberry Minersquos plan involved constructing a series of steps or weirs lined with geotextiles and anchored with rock fill These works were constructed by a team from Cariboo Divers from designs prepared by Hatfield Consultants
Subsequent fish surveys conducted between 2001 and 2011 showed initial success and that adult rainbow trout were present in the headwater pond and juveniles were present in the lower reaches
However subsequent surveys conducted between 2008 and 2011 indicated that the juvenile fish numbers decreased to record lows in 2011 The decline in fish numbers was attributed to failure of the weirs in the lower and middle fishways causing juveniles to become stranded in isolated pools and precluding adults from reaching the preferred spawning habitat between the lower and middle fishways
When initial monitoring of the remediated area in 2013 and 2014 was conducted Environmental Monitoring Assistants from the Yinka Dene Economic Limited Partnership and the Nootsenay Enterprises Ltd were called to assist in the evaluation of the stability of the constructed works as well as presence of fish and the structural integrity of the fishways have remained intact through high-flow periods with no erosion or undermin-ing of the weir structures
Cody Reid Deputy Chief amp Environmental Coordinator Nee Tahi Buhn Indian Band said ldquoThe design construction monitoring and maintenance of the Creek M fishway has led to an overall net increase in fish habitat in the area surrounding the mine in Tahtsa Reachrdquo
And David Belford Mineral and Natural Resources Liaison Officer Wetrsquosuwetrsquoen addedrdquo The HML Environmental team and participating consultants are to be commended on their proactive approach to reclaiming the fish habitat and to increas-ing that habitat within the mine footrdquo
During the 2013 fish survey 39 rainbow trout were captured the largest number of fish observed since 2008 These observa-tions were made even while construction of the middle reach fishways was ongoing
Marke Wong says that Huckleberryrsquos plans are to continue monitoring to confirm the effectiveness of the restoration work including hydraulic functioning physical stability and structural integrity fish distribution and net gain
From the operation of a mine in the mountains to the refur-bishing of a fishway in a local waterway Huckleberry Mines Ltd continues to show its appreciation and respect for the environment and the First Nations communities it works with in British Columbia
Perhaps the most important message for industry is that the example set by Huckleberry Mine and its First Nation commu-nity partners demonstrates that when parties begin to have meaningful dialogue and understanding develops on both sides then the path to cooperation and partnership is open
In the case of Huckleberry Mine this has led to the devel-opment of partnerships that have helped it expand its opera-tions and have help provide support during tough economic times
The nomination of Huckleberry Mines Ltd for the 2014 BC Metal Mine Reclamation Award came from its First Nation Partners because as Chief Karen Ogen said ldquoOur partnership with Huckleberry Mines has made a big difference in our small community Since the 2013 partnership agreement was signed our people have benefitted from jobs training and business opportunities Our experience with Huckleberry has been very positive and we have greatly appreciated Huckleberryrsquos efforts to engage with our community and to work with our business arm the Yinka Dene Economic Partnership The Wetrsquosuwetrsquoen First Nation is very pleased to nominate Huckleberry Mines for this awardrdquo
And lastly Mike Robertson added ldquo The Cheslatta Carrier Nation has been a successful Huckleberry Mines Limited con-tractor on a number of projects including a tailings dam We have our members employed by Huckleberry Mines and we maintain regular contact with its staff and management on all aspects of operations We support the nomination because we are confident they will continue and enhance their innovative and progressive practices of returning the land to a near natural self-sustaining staterdquo CMJ
FIRST NATIONS and MININGHUCKLEBERRY MINE
Material for Huckleberry Minersquos step-building program being delivered to the site by helicopter
Huckleberryindd 19 2016-01-12 1141 AM
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FIRST NATIONS COMPANY PROVIDES VITAL ROADBUILDING SERVICES
TO REMOTE COMMUNITIESStaff Report
REWARDSROADto
Creeindd 20 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 21
FIRST NATIONS and MINING
K imesskanemenow is a Cree word that means ldquoThis is our Roadrdquo a fitting name for the winter road management company that is owned and operated by four northern First Nations Attawapiskat Fort
Albany Kashechewan and Moose Cree Their company Kimesskanemenow Corporation (also
known as K Corp) was founded in 2001 and for the past 15 years has been responsible for building and maintaining the Western James Bay Winter Road (JBWR) which starts in Moosonee and travels 312km up the western coast of James Bay connecting the communities of Fort Albany and Kashechewan and eventually ending at the Attawapiskat First Nation
The road is a lifeline to the remote areas in the James Bay Lowlands of Northern Ontario and without it existing and future development of this part of the country would not be possible
In fact itrsquos thanks to the road that K Corp helped build that companies like De Beers Canada are in the north
As most people know De Beers Canada made international headlines when it built the Victor Mine in 2006 (the first dia-mond mine in Ontario at a cost of about $1 billion) approxi-mately 90km west of the coastal community of Attawapiskat First Nation
Since the open-pit mine began production in 2008 with an annual tonne processing capacity of about 27 million tonnes and an annual carat production capacity of 600000 carats it has proven to be a key to Northern Ontario development and its communities
With an estimated mine life to 2018 the Victor Minersquos ener-gy and equipment needs will continue for at least two more years and according to K Corp cannot be met without the JBWR
Air transport is prohibitively expensive so the winter road is considered by far the most affordable way to supply the remote mine with the necessary 450 loads of cargo and 10 to 11 million litres of diesel fuel that it consumes each year
But the Victor Mine is not the only site that requires a reliable supply of goods and services Similar transportation challenges also face other remote northern First Nations communities that need to truck goods and fuel via seasonal winter roads
With the exception of Moose Cree First Nation which has a railway line to Cochrane air travel is the only transportation available year-round for the three other First Nations which for most community residents is prohibitively expensive
Thanks again to the JBWR it provides a critical socio-eco-nomic tie between the communities as well as a significant source of employment and to keep relationship going Kimesskanemenow Corporation and De Beers Canada have entered into a productive partnership
In 2004 the two parties signed a Winter Road Agreement which was re-negotiated in 2014 Under the agreement De Beers pays the bulk of the costs of the roadrsquos construction and maintenance costs while the balance of the costs are provided by the Provincial and Federal governments
Kimesskanemenow Corporation is guided by three central priorities Building capacity in its communities ensuring that its
member communities receive maximum benefits and mainte-nance of traditional culture which naturally includes environ-mental protection
The company also ensures that money from building and main-taining the road stays in the hands of local First Nation members
To do this the road is constructed and maintained entirely by local community members either as direct employees or through local contractors This has required developing capacity which the company has done through training and education programs
The practical effect of these guiding principals is that during the winter months roughly 200 individuals work on the road helping ensure that the road brings economic benefits to individ-uals families and communities
For many seasonal employment gained through constructing and maintaining the winter road is the only consistently avail-able work in the community Furthermore dividends from the company go back to the hands of the communities to be used as they see fit
Finally Kimesskanemenow Corporation donates to commu-nity-based initiatives that will benefit the communities with each of the four communities allotted an annual amount
Reflecting the corporationrsquos central values the money is used to fund initiatives that benefit youth the environment or main-tain traditional ways of living
One example of the programs that the corporation helps fund is CreeFest a celebration of Cree culture that is held annually in the Mushkegowuk communities
The company also funds the Edward W Chilton scholarship at Northern College in honour of the late Ed Chilton the com-panyrsquos first president The scholarship is awarded to community members to further their education
K Corprsquos list of smaller grants available online include many community and cultural programs that maintain the vitality of all these communities
Kimesskanemenow Corporation maintains an important piece of infrastructure that benefits the communities and allows for the ongoing operation of the Victor Diamond Mine As a cooperative venture the corporation has proven itself to be invaluable to both the communities and the mining company CMJ
Thanks to the efforts of K Corp the Western James Bay Winter Road provides access to the remote areas of Northern Ontario
Creeindd 21 2016-01-12 1052 AM
22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
WHERE WE STANDSERIOUS QUESTIONS DESERVE SOME SERIOUS ANSWERS Staff Report
I trsquos been just over a year since the Native Womenrsquos Association of Canada (NWAC) received funding from Aboriginal Affairs and Northern Development Canada (AANDC) to identify and ask questions about the barriers
indigenous women face and secondly to get direct and honest answers as to what are the realistic opportunities for them in the mining industry
Basically as the headline says they want to know where they stand insofar as their positions within the mining industry are concerned
The questions NWAC put on the table at a recent forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development dealt with two perspectives the first looked into resource development corporations and sought to understand what these corporations knew about aboriginal women and the second was from aboriginal women and how they viewed the mining industry with regards to economic devel-opment and employment opportunities
The forum was attended by an impressive gathering of female indigenous leaders and representatives from the resource devel-opment sector A full list of the participants is featured in the adjacent box
The intent of the engagementdiscussion session was to initi-ate a constructive dialogue amongst the participants with the overall goal of
s increasing the labour market participation of indigenous women in the resource development sector
s ensuring indigenous womenrsquos voices are heard in the devel-opment of these projects
s sharing of information on the industry and
s discussing the various opportunities and barriers facing indigenous women who wish to work in the industry
A DISTINGUISHED PANEL OF WOMEN ATTEND OTTAWA FORUM
Siobhan Dooley Hatch EngineeringGrant Goddard New Gold Inc (Rainy River Project)Karina Kesserwan Kesserwan (Law ndash Strategy ndash Solutions)Stacey Jack New Gold Inc (Rainy River Project)Christopher Lefebvre Aramark CanadaMireille Pilotte New Millennium IronRachel Pineault Detour Gold CorporationKate Rafter Employment and Social Development CanadaLouise Reid-Schloen Hydro OttawaJamie Saulnier Running Deer ResourcesNancy Veal Resolute Forest ProductsMarilyn Capreol Shawanaga First NationPamela Eyles BC Native Womenrsquos AssociationSusan Forth Shawanaga First NationElize Hartley Ontario Native Womenrsquos AssociationMarian Horne Yukon Aboriginal Womenrsquos CouncilNoreen McAteer Alberta Aboriginal Womenrsquos SocietyVerna Polson Quebec Native Women IncTori-Lynn Wanotch Saskatchewan Aboriginal Womenrsquos Circle CorpBeverly Blanchard Native Womenrsquos Association of CanadaSydney Ducharme Native Womenrsquos Association of CanadaClaudette Dumont-Smith Native Womenrsquos Association of CanadaDan Peters Native Womenrsquos Association of CanadaMerv McLeod McLeod-Wood Associates IncNancy Wood McLeod-Wood Associates Inc
Beverly Blanchard (standing) of the Native Womenrsquos Association of Canada addresses delegates attending a forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development
Women in Miningindd 22 2016-01-12 1053 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 23
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
andor economic opportunitiesFor example when impact benefit agreements (IBAs) are
completed they tend to be locally focused and may not consider indigenous women that do not reside in the community or indigenous individuals who are not members of the particular community
From the indigenous womenrsquos perspective at the forum it was noted that indigenous womenrsquos opinions on the resource devel-opment sector were varied and divergent Like most things in life there were some women who are in favour of the mining industry and there are some who are against it
Many who are against the sector perceived it to be counter to the traditional role of indigenous women as water-keepers and caretakers of Mother Earth but on the other hand research found that there was also a significant percentage of indigenous women who were ambivalent towards the industry
Due to length and detail of the forum (from which this article is based) the information has been drastically reduced to fit the space
For complete details and a copy of the full Bridging the Gap Aboriginal Women and Resource Development Report please contact Beverly Blanchard Strategic Policy Partnership and Planning NWAC Ottawa bblanchardnwacca CMJ
INDIGENOUS WOMEN and MINING
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Women in Miningindd 23 2016-01-12 1053 AM
24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
A s probably many of you know times are tough right now Commodity prices are slumping across the board affected by an overall slowing global economy that is being felt throughout Canada
But even during a stubborn downturn in global demand for many minerals and metals itrsquos no time to get down on mining because mining never goes away
Minerals and metals are the very foundation of virtually all of the goods we depend on in our daily lives The world will con-tinue to need mining and Canada can and should continue to be an important place where mining happens
A Look at Market ConditionsSo first how bad is the market
Global economic growth has been volatile in recent years Every time the Bank of Canada the IMF World Bank or others make growth projections it seems they amend them a few months later and always downwards With few exceptions the global economy is not doing well at all
The key economy for the mining sector is China which today consumes almost 50 per cent of the worldrsquos minerals and metals And Chinarsquos growth rate has been slowing along with growth rates in other emerging markets like Brazil Mexico and several Asian and African countries that are also falling
The one major exception is India whose growth is around 75 per cent and with its 13 billion people is seen as the next China in terms of minerals and metals consumption as the coun-try begins to rapidly industrialize
A Bedrock of the Canadian EconomyEven in a slump miningrsquos contribution to Canada is enormous
Despite some job losses at some operations mining and min-eral processing are directly employing more than 375000 Canadians including well over 10000 Indigenous Canadians paying the highest average industrial wage in the country Mining remains proportionally the largest employer of indige-nous Canadians
Mining accounts for roughly 20 per cent of the overall value of Canadian exports valued at nearly $90 billion
Nationally we pay an average of $38 billion annually in corporate taxes and royalties to federal provincial and territorial governments
Mining companies are also paying significant royalties to indig-enous communities across the country indirectly through govern-ment resource revenue sharing and in some cases directly
Wersquore also supporting the second largest mining-supply sector in the world More than 3700 companies provide a wide spec-trum of services to the Canadian mining industry with an increasing number of these being indigenous-owned businesses
A major challenge facing mining in Canadarsquos north today is its lack of infrastructure The north is our industryrsquos future but the territories and the northern parts of our provinces lack criti-cal infrastructuremdashroads electricity ports railwaysmdashto service mines and get products to market
This lack of infrastructure is felt by communities many of them indigenous located in the north
According to the Mining Association of Canadarsquos (MAC)
MINING AND INDIGENOUS PEOPLES CANADArsquoS FUTURE By Pierre Gratton
Delegates attending the 23rd Annual Conference of the Canadian Aboriginal Minerals Association in Vancouver listen to talks during the three-day event
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ande
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hy
Macindd 24 2016-01-12 1054 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 25
FIRST NATIONS and MINING
research it costs about 2 to 25 times as much to build and operate a gold and base metal mine in northern Canada off grid than in the south
We should be looking at ways to level the playing field in the north where infrastructure is lacking Canada needs a strategic collaboration involving industry and governments federal pro-vincial territorial and Indigenous to get this nation-building infrastructure in place
This can be done by increasing government investment in new infrastructure or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good
Additionally there is the issue of indigenous rights and title and how this affects the project certainty
Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and if necessary accommo-dated for activities on traditional indigenous territories affects project timelines and certainty
Connected to this is the concept of social license which in general terms defines the support earned by proponents to pro-ceed with and operate their project
The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects
That is a very complex issue The Supreme Court of Canada in its recent decision on the
Tsilhqotrsquoin First Nationrsquos claim recognized indigenous title a first in Canadian law
It also provided clear guidance on the criteria needed to demonstrate title and on the rights and obligations that flow from that in the process also identifying where title was found not to exist
It is a significant decision that provides us all with much more clarity going forward
But back to the question of the vetoThe Court clearly recognizes that in some circumstances the
right to title can be limited by the Crown So there is no abso-lute veto under Canadian law even in the case where title has been proven
But for the Crown to place limits on indigenous title it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead ndash a very significant test
At its core the decision continues a balancing act between empowering and limiting the authority of both indigenous peo-ples and governments The Court was very wise
So what does this mean for proponents There is the law and then there is reality No proponent
wants or should want to build a project that is unwelcome or opposed by local communities This is quite frankly an unsus-tainable option and one best avoided And most communities are open to the opportunities mining brings and increasingly so
Letrsquos look at reality in a different way
Today there are more than 250 agreements between mining companies and indigenous communities across the country It is decidedly rare that projects proceed without impact benefit or other such agreements concluded
These agreements which have matured with time and experi-ence provide significant local benefits and assurances including
Commitments on business procurement and often assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide
Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight
Support for skills training and mentoringDirect economic or financial benefitsSome of these agreements are transforming communities in
very significant waysNewgoldrsquos New Afton project in Kamloops is one such exam-
ple The diamond mines in the NWT are others as is Voiseyrsquos Bay We are seeing high levels of indigenous participation as high as 60 per cent in the case of Voiseyrsquos Bay increasing levels of post-secondary education and significantly improved eco-nomic and social outcomes
Nonetheless it is undeniable that the negotiation of these agreements takes time Trust must be built between the parties and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the pro-posed mine prior to it proceeding
Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association Photo by Tracey Sanders Photography
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to
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ey S
ande
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Macindd 25 2016-01-12 1054 AM
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
AME BCindd 27 2016-01-12 110 PM
28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Nfld Reportindd 30 2016-01-12 1055 AM
Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
PROFESSIONAL DIRECTORYA
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W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
- 002
- 003
- 004
- 005
- 006
- 007
- 008-009
- 010-015
- 016-019
- 020-021
- 022-023
- 024-026
- 027
- 028-030
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JANUARY 2016 CANADIAN MINING JOURNAL | 5
CANADIANCANADIANMining Journal
Established 1882
Canadian Mining Journal provides articles and information of practical use to those who work in the technical administrative and supervi-sory aspects of exploration mining and processing in the Canadian mineral exploration and mining industry Canadian Mining Journal (ISSN 0008-4492) is published 10 times a year by BIG LP Mining BIG is located at 38 Lesmill Rd Unit 2 Toronto ON M3B 2T5 Phone (416) 510-6891
Legal deposit National Library Ottawa Printed in Canada All rights reserved 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 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 please contact Russell Noble at 416-510-6742
Subscriptions mdash Canada $4795 per year $7695 for two years USA US$6095 per year Foreign US$7295 per year Single copies Canada $10 USA and foreign US$10 Canadian subscribers must add HST and Provincial tax where necessary HST registration 809744071RT001
From time to time we make our subscription list available to select companies 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 of the following methods Phone 1-888-502-3456 ext 2 Fax 416-447-7658 E-mail cholderglacier-bizinfocom Mail to Cindi Holder BIG Mining LP 38 Lesmill Rd Unit 2 Toronto ON M3B 2T5
We acknowledge the financial support of the Government of Canada through the Canada Magazine Fund toward our editorial costs
January 2016 Vol 137 mdash No 1 38 Lesmill Rd Unit 2 Toronto Ontario M3B 2T5 Tel (416) 510-6789 Fax (416) 447-7658 wwwcanadianminingjournalcom
Editor Russell B Noble 416-510-6742 rnoblecanadianminingjournalcom
Field Editor Marilyn Scales 613-270-0213 mscalescanadianminingjournalcom
Production Manager Jessica Jubb
Circulation Manager Cindi Holder 416-510-6789 ext 43544 cholderglacierbizinfocom
Publisher amp Sales Robert Seagraves 416-510-6891 rseagravescanadianminingjournalcom
Sales Western Canada Western USA and Quebec Joelle Glasroth 416-510-5104 jglasrothcanadianminingjournalcom
Toll Free Canada amp USA 1-888-502-3456 ext 2 or 43734
Group Publisher Anthony Vaccaro
EDITORIAL
By Russell Noble
ldquoNo workrdquo is the least of our worries
Now that wersquore heading into what forecasters say will be another dismal year itrsquos hard to get excited about the months ahead knowing wersquore going to continue hearing more about layoffs care and maintenance and worst of all outright closures
After the past couple of years of what the industry has experienced the words ldquoThey Shoot Horses Donrsquot Theyrdquo the title of Horace McCoyrsquos 1935 novel and later of a 1969 movie by the same name starring Jane Fonda pretty much describes the lsquoput me out of my miseryrsquo feeling that many in the mining industry are feeling
But like all doom-and-gloom stories therersquos usually something good to say and thank-fully and somewhat surprisingly thatrsquos where the theme of this issue ldquoFirst Nations and the Canadian Mining Industryrdquo comes in with a lsquopositiversquo message thatrsquos encouraging for almost all miners
As both sides of the fence have known for years the words ldquoFirst Nationsrdquo and ldquoMiningrdquo havenrsquot necessarily homogenized to make for a creamy-smooth feeling towards the use of lands and the extraction of the minerals they contain
In fact itrsquos safe to say that itrsquos been an oil-and-water relationship for centuries but like I just said things are looking a little more positive thanks to the recent emergence and under-standing that therersquos far more at stake than territorial lands and their contents
The Environment is something that almost everyone now agrees is far more important than quibbling over boundaries and minerals because as witnessed at the recent World Climate Summit in Paris France where even the United States Russia and China agreed on climate-change issues Mother Nature has been beaten to her knees because of emissions from the industrialized world
And admit it or not the resources industry is partly to blame for the mess of the worldBut to get back to my point of First Nations and Mining Industry relations the recent
federal election and the subsequent meeting of Prime Minister Trudeau with the Assembly of First Nations was a decade-late meeting that at least showed that the federal government was about to listen to the ldquocanaries of the coal minerdquo as First Nations communities were described at a recent conference in Vancouver because ldquotheyrsquore out there to warnrdquo
Those phrases were used during one of the presentations at the Canadian Aboriginal Minerals Associationrsquos three-day conference where more than 500 delegates from across the country heard speakers from First Nations and mining companies alike talk about a num-ber of things and in almost every case The Environment was mentioned
It was a common thread throughout the Conference and regardless of who was speak-ing the message was clear itrsquos time to clean up our act
And the ldquoourrdquo was collective and not directed at any one group because as everyone in the room agreed the issue at hand (The Environment) was far more important than terri-torial rights and mining privileges
As I quoted at the outset ldquoThey Shoot Horses Donrsquot Theyrdquo and unless everyone pulls together and that certainly means First Nations and the Mining Industry then the forecast-ers I mentioned earlier will be predicting dismal times far beyond the coming year CMJ
Editorialindd 5 2016-01-12 1139 AM
In 2015 Canadarsquos junior stock exchange the TSX Venture Exchange sunk to levels that a few years ago would have been inconceivable This drop caused primarily by the sustained slump in commodities led the SampPTSX Venture
Composite Index to sink below 500 points for the first time since the TMX group bought the Canadian Venture Exchange in 2001 The low point represents a 29 drop from where the TSXV started at the beginning of 2015 and a staggering 85 drop from its peak in 2007
A primary cause of the exchangersquos poor performance has been the extremely challenging market conditions facing extractive resource issuers At present more than 70 of the companies listed on the exchange operate within the mining or energy sec-tor After a two plus year depression in mining equities com-bined with weak prices for most metals as well as well as hydro-carbon products junior resource issuers have fallen out of favour with investors
TSXV White PaperThe TSXV conscious of the market realities facing its issuers and with the aim of attracting new investment conducted a lengthy consultation process with clients and stakeholders These consultations focused on identifying new initiatives to respond to realities facing its listed issuers and other market participants in light of the sluggish capital market conditions The outcome of the consultations was a White Paper issued on December 17 2015 It contains proposed broad based reforms to various TSXV rules policies and strategies aimed at fostering renewed interest in the exchange and its services The full text can be found at httpswwwtsxcomresourceen1252
The recommendations of the White Paper were synthesized into a three-pronged strategic reform program The first and second prongs of this program are particularly relevant for cur-rent and potential resource based issuers
Cost of complianceThe first prong of the program focuses on reducing the cost of compliance a primary area of concern for most resource issuers The White Paper proposes a number of rule changes including
s eliminating the general requirement for sponsorship of new issuers undertaking a reverse takeover (RTO) change of
business (COB) or other business combinations narrowing the application of shareholder approval require-
ments for inactive issuers undertaking an RTO or COBs implementing a director and officer ldquoNEXUS-typerdquo status
certification program to reduce or eliminate ongoing require-ments for certain individuals
s extending the shelf life of on-file personal information forms for directors and officers from three to five years
eliminating escrow requirements that overlap with similar requirements of the Canadian Securities Administrators
s implementing an automated system for transaction filing and accelerating response times to speed up overall transaction processing
Attracting new capitalThe second prong of the White Paperrsquos strategic reform pro-gram focuses on attracting new and more diverse capital to the TSXV The initiatives proposed under this prong are less tech-nical and less defined than those proposed under the first prong but include commitments to undertake active and ongoing promotion of TSXV-listed issuers through roadshow presentations to fund managers retail investors investment advisors and banks and research analysts instituting an ongo-ing streaming summary service of available public offerings and introducing a new market making program to be adminis-tered by the exchange
TSXV seeking feedbackWhile the exchange has committed to implementing the above listed reforms under an ldquoaggressive timelinerdquo prior to doing so it plans to host a series of town hall meetings where it will entertain feedback on the strategy and proposed initiatives In the coming months existing issuers and other interested parties who may be impacted by these reforms should carefully monitor the develop-ments and provide feedback as appropriate
Whether these initiatives will be successful in achieving their intended results remains to be seen but given the extremely challenging market environment for resource issuers the pro-posed reforms should be implemented efficiently and effectively to reduce the headwinds facing junior issuers CMJ
JAMES CLARE is a partner with Bennett Jones in Toronto
LAW
By James Clare
TSXV response to commodities slump
6 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Lawindd 6 2016-01-12 1043 AM
T he Truth and Reconciliation Commissionrsquos six-vol-ume 23-million-word final report was issued on December 15 2015 It not only contains stories from survivors of residential schools but a set of 10 guid-
ing principles and 94 recommendations or Calls to Action While the federal provincial and territorial governments
must act upon the majority of the 94 recommendations there are also recommendations for all sectors of society including the churches media arts academia and industry
For example the churches now have less than 90 days before issuing a joint statement by March 31 2016 on how they will implement the spiritual and religious components of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP)
The churches must also reject the concepts ndash such as ldquoterra nullisrdquo and the Doctrine of Discovery -- used by the church and state to assert sovereignty over Indigenous peoples and their lands
However I must point out that First Nations do not expect industry to atone for the sins of the past But we do however expect to be treated as equals and as the rightful owners of the land
Mining companies in Canada must recognize and acknowl-edge the era of Reconciliation as common place in all of its dealings with First Nations as it relates to mining exploration development extraction and remediation This also includes training and educating management and staff on First Nation history culture human rights and anti-racism
Here are some key points to consider s The Truth and Reconciliation process is becoming an institu-
tion in Canada that will inspire and influence positive approaches to relationships between Canada and its First Peoples
s Implementing the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) and respecting Treaties is a major focus within the TRC Calls for Action
s Business and industry in all Canadian sectors are being prompted by the TRC Report to become aware of the report and make efforts to build bridges This will close the divide between First Nations and Industry that was created as a
result of ignorance of history of Canadarsquos Indian Residential School past
s First Nations deep connection to the land is evident in lan-guage culture and world view ndash this is a key focus in many of the calls for action
s The respect and responsibilities that First Nation peoples have for the land is an important element to the process of Reconciliation that is now being recognized by federal juris-diction As noted in the 2015 Speech from the Throne the environmental assessment process will soon become formal-ized adding First Nations to the decision-making process as it pertains to the protection of the environment
s Benefits to First Nations regarding mining development are also a key factor in reconciliation The era of sealing a deal solely with an IBA (Impact Benefit Agreement) is a thing of the past First Nations seek to take on their roles as govern-ments beneficiaries and providers for their people
s The lsquoReconciliation Lensrsquo can be a way for industry to create stronger relations avoid conflicts build strong business partner-ships and help achieve collective prosperity with First Nations In conclusion here are four key messages that sum up the
outcomes from acting upon Reconciliation and forming a new relationship with our Peoples 1 Reconciliation can be a benefit to building strong mining
partnerships with First Nations2 Reconciliation as a policy approach for mining companies
will expedite relationship-building beyond most conflicts that arise out of resisting First Nation history and Cultural competence
3 The cost benefit to a Reconciliation approach in the mining industry is invaluable
4 Reconciliation in Canadian mining can cultivate a social con-sciousness that could define the industry as a 21st century legacy maker
I look forward to continued dialogue with the mining indus-try as we work together on making 2016 a breakthrough year for positive change Together we will build a better more inclusive Canada for our children and future generations CMJ
By Ontario Regional Chief Isadore Day Wiindawtegowinini
Mining must includeTruth amp Reconciliation
FIRST NATIONS
JANUARY 2016 CANADIAN MINING JOURNAL | 7
First Nationsindd 7 2016-01-12 1043 AM
8 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
NMENTENVIROTHE
Pho
to
Thin
ksto
ckc
om
THE WORLD AGREES ENOUGH IS ENOUGHBy Russell Noble
FN Introindd 8 2016-01-12 1044 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 9
NMENTENVIROMother Nature canrsquot take it much longer
E ver since John Cabot landed in Newfoundland in 1497 and started trekking westward into the unknown exploration and later development has left its mark on The Environment
In fact itrsquos left more than a mark itrsquos scarred the earth forev-er thanks to an unquenchable thirst for discovery but like it or not the world wouldnrsquot be what it is today if not for yesterdayrsquos adventurers
Regardless of how appreciative we are to John Cabot and The Vikings before him Mother Nature has taken the brunt of their quests through the loss of trees the displacement of wildlife polluted waterways and often the disappearance of fish and most recently in the news air quality because of toxic emissions resulting in climate changes
In just over 500 years the world has gone from pristine to polluted and it wasnrsquot until recently when the ldquoWorld Leaders Unanimously Agreedrdquo at the United Nationsrsquo Climate Summit in Paris France that everyone became more aware of the fact that the world has had enough it canrsquot take any more
And thatrsquos when The Environment started receiving the worldwide attention it deserves
ldquoAnd itrsquos about timerdquo says The Assembly of First Nations of
Canada and the 634 bands it represent across the country because thatrsquos what indigenous people from coast-to-coast-coast want mosthellip a clean safe and bountiful place to live and work
As one delegate attending the 23rd Annual Canadian Aboriginal Minerals Associationrsquos meeting in Vancouver said late last year ldquoWersquore the canaries in the coal mines wersquore out there to warnrdquo
Philosophical yes straightforward no question but more-over it was a sincere and insightful message that Federal Indigenous Affairs Minister Carolyn Bennett later echoed by saying ldquoThere is every evidence Canadarsquos Aboriginal Peoples are indeed on the front lines of climate changerdquo
As already mentioned concern for the well being of The Environment is a centuries-old topic for discussion and when you look at the photo on these pages itrsquos hard to understand how mankind can do what itrsquos doing to endanger such perfection
But it is and doing so at such an alarming rate that no matter what the 197 world leaders agreed to in Paris last year scenes like this are being threatened around the world every day and unless we take The Environment seriously future generations will have only photographic images of the lsquoWay We Werersquo
Thankfully both the First Nations and the Canadian Mining Industry are two groups working on improving the lsquoWay We Arersquo so that future generations donrsquot have to look back on refer-ence material to see how things used to be
Stories on the following pages take a closer look at First Nations and Mining Relations and how theyrsquore working in har-mony and in the best interest of everyone and everything involved CMJ
FIRST NATIONS and MINING
FN Introindd 9 2016-01-12 1044 AM
NWT INDIGENOUS JUNIOR MINER ANTES UP IN ITS AGGRESSIVE LEAP INTO OWNERSHIP IN MINING ECONOMY
By Northern Correspondent Bill Braden
BOLD amp BRAVE
10 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
T wo years ago the Dene of the NWT bold-ly jumped into the dragonrsquos jaw and launched their own mining company
The targets significant polymetallic potential near Great Bear Lake and dia-monds near the Ekati and Snap Lake mines
The vision be more than a source of labour and supplier of services to other miners They want to be
their own stand-alone producer among the first in Canada to pursue indigenous mine ownership
Wait a minute Arenrsquot First Nations usually railing against resource development the constant thorn in miningrsquos side And in the face of NWTrsquos gnarly record as a high-risk mining envi-ronment with dwindling exploration and labyrinthine regula-tions what is driving a home-grown indigenous company to do this in the first place
Aerial photo of the mill and camp at Terra Silver Mine abandoned near the south shore of Great Bear Lake since 1985 Photo courtesy of DEMCo LP
Bradenindd 10 2016-01-12 1138 AM
ldquoThe main thing is people want to participate and take ownership Itrsquos coming from the simple statements that have been made at the Dene Nation assemblies for yearsrdquo says Darrell Beaulieu the President and CEO of Denendeh Investments Incorporated (DII) and its latest ven-ture DEMCo Ltd
ldquoNo one ever said we are against business or development We said we want to be participants in development meaningful participantsrdquo
To a considerable extent that has indeed been the case in the NWT Beaulieu points to the prosperous part-nerships among more than 60 NWT indigenous businesses and diamond giants De Beers Dominion and Rio Tinto
Between 1996 and 2011 $42 bil-lion or 33 per cent of their northern spend was with indigenous companies and almost 9500 person years of employment were filled by indigenous workers in that period about 25 per cent of the total labour quantum
But he wanted to go beyond the jobs and servicesupply deals and take the ambitious jump to the equity level The current slump in mining activity and eroding values on existing properties gave momentum to Beaulieursquos plan to create DEMCo in the spring of 2013
ldquoSo the timing to pick up properties andor junior mining companies is upon usrdquo said DIIrsquos website at the time
JANUARY 2016 CANADIAN MINING JOURNAL | 11
FIRST NATIONS and MINING
Darrell Beaulieu CEO of DEMCo LP and this yearrsquos winner of the Skookum Jim Award from PDAC for outstanding achievement and contribution to mining by an aboriginal group or individual
Bradenindd 11 2016-01-12 1138 AM
12 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It continued on a note of high optimism ldquoThe silver lining to present and initiate a Denendeh exploration and mining compa-ny at this time may help create momentum for fundamental change in First Nation participation in resource development in the Northwest Territories and Canadardquo
The soft-spoken Beaulieu 58 is an Akaitcho Dene born and raised in Yellowknife who has earned numerous accolades for his leadership The most recent is the 2016 Skookum Jim Award from the Prospectors and Developers Association of Canada acknowledging significant achievement and contribution to mining by an indigenous group or individual
Hersquos is no stranger to indigenous and northern corporate governance Hersquos a three-time Chief of the Yellowknives First Nation and has held directorships with Northland Utilities the NWT Business Development and Investment Corporation and numerous industry associations
And hersquos no stranger to mining either as one of his first jobs was with Noranda Exploration doing EM surveys mapping prospecting claim staking and general exploration work
Beaulieu has been an influential advocate for Dene invest-ment through the parent group Denendeh Investments Limited Partnership an alliance of 27 First Nations communi-ties across the NWT It boasts a diverse portfolio including oil and gas drilling services electric utilities communications real estate and now exploration and eventually mining
Optimistic StartTo get DEMCo set up Beaulieu hired Yellowknife prospector
Trevor Teed into the shop as exploration vice president Teed brought with him a hunch hersquod been plugging away at for almost two decades the potential for a new discovery in the Camsell River region southeast of Great Bear Lake directly under four historic silver producers that operated from the 1960s to 1985
rdquoI suggested to him that the potential for IOCG (iron oxide-copper-gold) is what attracted me to it not silverrdquo says Teed ldquoDarrell agreed and despite the initial doubt of two of our three contract geologists our initial thoughts have been proven and there is IOCG at Camsell Riverrdquo
ldquoFirst it was kind of a desktop jobrdquo says Beaulieu ldquoThe data was all over the place We had to go to the United Sates Alberta BC the Geoscience office here in Yellowknife personal homes and at site too it was amazing where all the data ended up after 30 yearsrdquo
They resampled thousands of metres of decades-old core at site (that saved millions of exploration dollars) The results first disclosed in late 2014 proved out their early optimism
ldquoBack in the 70s they were only looking for silver We looked at the core and did some more prospecting and we found that hey therersquos a lot of gold there Whatrsquos more after our first field season was confirmation therersquos a huge magnetic body there also It looks like we have an IOCG depositrdquo
Beaulieu is too savvy to get excited at this point but polymet-alic IOCG deposits (Australiarsquos mammoth Olympic Dam is one) can be truly massive The discovery of the zone estimated roughly at some seven by 16 kilometres in size was first announced in late 2014
Teed says he had taken his hunch to other miners but credits Beaulieu with the vision and the belief to carry it forward His investigation so far has uncovered an extensive magnetic zone under the old silver digs
ldquoIt is a significant event I think that when the rest of Canada catches up to what we have wersquore going to see significant explo-ration again in the areasrdquo predicts Teed
That significance is backed up by mapping and geophysical
Noel Michel of Lutsel Krsquoe takes a break during a prospecting trip near Great Bear Lake Photo courtesy of DEMCo LP
DEMCo Exploration Vice-president Trevor Teed CEO Darrell Beaulieu and COO Margaret Gorman billbradenphoto
Bradenindd 12 2016-01-12 1138 AM
work carried out by the Geological Survey of Canada and the NWT Geological Survey over the past decade
Geologist Scott Cairns Manager of Bedrock Mapping and Mineral Deposits at the NTGSrsquos Yellowknife office says the historic production of silver and uranium is indicative of larger polymetallic IOCG deposits in the Great Bear magmat-ic zone
ldquoThey are definitely in a high mineral potential area thererdquo says Cairns adding that DEMCorsquos claims are at the north end of that zone while Fortune Mineralrsquos NICO project about 200km to the south is on its southern edge
Cairns says federal GSC geologists have recently completed a large study of alterations that can help identify IOCGs ldquoSo therersquos an enormous volume of work of geophysical characterisa-tions ways to track down where these potentially valuable deposits might be hiddenrdquo he says
DEMCorsquos IOCG discovery has not sparked any new rush of interest in the region But on a territory-wide basis says Cairns the number of inquiries website and office visits to his library and data bases has been spiking in the past few months
ldquoI think what wersquore seeing is that while itrsquos difficult to fund boots-on-the-ground exploration companies are doing their homework right now and will be using that when conditions improverdquo
In The GameAs of late December 2015 DEMCo was fully engaged in plan-ning the 2016 field program which Beaulieu hopes will include airborne geophysical work as well as more ground sampling They will spin off another subsidiary Camsell River Minerals Ltd to carry the project
But just like any other junior the team will be out there looking for private cash during one of the metal marketrsquos deepest and most prolonged slumps
And predictably thatrsquos not the only hurdle The claim block is within an overlapping boundary of both the Tlicho and Sahtu land claim regions
The four old mines on the claim block are among dozens across the NWT deemed for rehabilitation by the federal govern-ment There is an existing airstrip but land access would largely be on the historic Denison Ice Road from Behchoko first opened in the 1960s but dormant for 30 years
Yet another layer is working with the NWT Government as it gets used to managing the mines portfolio after its transfer from Ottawa to the NWT in April of 2013
And because DEMCorsquos parent corporation is governed by an alliance of all NWTrsquos First Nations - and itrsquos their money thatrsquos at risk - Beaulieu also has to satisfy a board that isnrsquot all that familiar with being on the investor side of the mining equation
Was it a hard sell to get his board on side in the first place No says Beaulieu pointing to DIIrsquos investment of about $2
million in cash and time to date ldquoThe hard sell is going to be finding the money to add value without diluting too muchrdquo
He says hersquoll be walking the floors at the Vancouver Cordilleran Roundup and Torontorsquos PDAC in 2016 promoting DEMCo
The Camsell project is where DEMCo is now fully focused but it is also invested in the NWTrsquos prolific diamond fields
In the Lac de Gras region east of the Ekati diamond mine the Fin claim block hosts known diamondiferous kimberlites while the Jen block has six known geophysical targets that have not yet been drilled
The Jaedenz block sandwiched between the Gahcho Kue and Snap Lake mines was explored and drilled by both De Beers and Winspear in the 1990s
JANUARY 2016 CANADIAN MINING JOURNAL | 13
Yellowknife-born Trevor Teed prospector and DEMCo VP of Exploration at the Camsell River properties Photo courtesy of DEMCo LP
Among the available resources combed over by DEMCo were these teetering core racks some dating back decades Photo courtesy of DEMCo LP
Bradenindd 13 2016-01-12 1138 AM
No work was done during the 2015 season and the company has not yet announced whether it will commit anything this year
An Indigenous AdvantageDoes being an Aboriginal-owned venture mean DEMCo will get a better reception from investors or an easier ride through the Northrsquos rocky regulatory regime
ldquoWe havenrsquot really pushed itrdquo says Beaulieu ldquoWersquore focussed on doing our own thing for now It takes time to grasp and understand what is it you have [Wersquore ask-ing] the same type of questions that any junior asks wearing the same boots same gloves We know itrsquos a high-risk business but itrsquos a high reward too Whoever is in there has really got to manage and yoursquove got to be able to sustain your own neck In terms of the regulatory regime that is an independent process we respect it and expect to be treated like everyone elserdquo
In a February 2015 interview with the business magazine Corporate Knights he did allow that having the Dene communities at his own board table gives him a home-court advantage
ldquoI think community engagement is our competitive edge And that edge is available because we are a Northern Dene-owned com-
14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Ground-level (above) and aerial (opposite page) of mill and camp at Terra Silver Mine near Great Bear Lake
Bradenindd 14 2016-01-12 1138 AM
pany And wersquore operating in a territory where indigenous people have a significant influence on our activityrdquo he said
Don Bubar as President and CEO of Avalon Rare Metals Inc and in previous roles with the PDAC is a passionate advocate for indigenous inclusion in Canadarsquos mining sector He believes that future mineral exploration in northern Canada will be led by indig-enous businesses
ldquoIt is natural that this participation would progress from a pas-sive one as a service provider to a more active one as an owner of a mineral development business with title to active projects Darrell Beaulieu and DEMCo are providing the leadership for the Dene Nation in going down this pathrdquo said Bubar in an email
ldquoPart of the challenge the industry faces is simply creating more public awareness of the importance of the industry to the northern economy especially for aboriginal communities Eco-activists have been successful in demonizing the industry in the North DEMCo has a key role to play in changing the perception that mineral exploration and development creates only unwanted environmental impacts without creating significant economic benefits for north-ernersrdquo CMJ
JANUARY 2016 CANADIAN MINING JOURNAL | 15
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Consider it done
FIRST NATIONS and MINING
Bradenindd 15 2016-01-12 1138 AM
COMMUNITY EFFORT HELPSSOLVE FISHWAY PROBLEMBy Russell Noble
PARTNERSHIPA WINNING
16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Shannon Haizimsque Chief Operating Officer of the Yinka Dene Economic Limited Partnership the commercial business arm of the Wetrsquosuwetrsquoen First Nations at the Huckleberry Mine site Adjacent photo shows a series of steps lined with geotextiles and anchored with rock fill as part of the minersquos Fish Compensation Plan
Huckleberryindd 16 2016-01-12 1052 AM
Almost everybody associates the name ldquoHuckleberryrdquo with Mark Twainrsquos Huckleberry Finn and his comrade Tom Sawyer but in the mining community Huckleberry is also the name of a Canadian mine that has been in production in northwestern British Columbia
since October 1997 Huckleberry Mines Ltd is an active open-pit coppermolyb-
denum mine located approximately 100km south of Houston BC Production rates (in 2014) were 34 million pounds of copper 2202 ounces of gold and 183218 ounces of silver and like many mines today itrsquos owned by a consortium of companies under one name Huckleberry Mines Ltd (HML) of Vancouver
The mine is owned and operated by Huckleberry Mines Ltd which in turn is owned 50 per cent by Imperial Metals Corporation of Vancouver and 50 per cent by a Japanese consor-tium including Mitsubishi Materials Corporation Dowa Mining Co Ltd and Furukawa Co
Partnering with First NationsSince 2013 Huckleberry Mines Ltd has signed communication amp partnership agreements with five separate First Nations orga-nizations Wetrsquosuwetrsquoen First Nation Cheslatta Carrier Nation Office of Wetrsquosuwetrsquoen Nee Tahi Buhn Indian Band and Skin Tyee Nation
Marke Wong Manager of Environmental amp Community Affairs for Huckleberry Mines Ltd says ldquoThese types of agree-ments have been instrumental in the success of Huckleberry Mine Because of the open dialogue with Indigenous communi-ties we have generated better understanding among all parties and this has increased First Nations access to economic opportu-nities such as job training employment and service contracts and has provided Huckleberry with dedicated community part-ners and a strong reliable work force and able contractorsrdquo
JANUARY 2016 CANADIAN MINING JOURNAL | 17
FIRST NATIONS and MININGHUCKLEBERRY MINE
Huckleberryindd 17 2016-01-12 1052 AM
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For example Wong says Huckleberry works directly with the economic development arm of its partners to provide training jobs and developing on-call labour contracts including the Yinka Dene Economic Development Limited Partnership (YLP) (Wetrsquosuwetrsquoen First Nation) the Nootsenay Enterprises (Cheslatta Carrier Nation) the Hunustrsquo ot en Investment Corp (Nee Tahi Buhn Indian Band) and the Skin Tyee Nation
He says that in 2014 and 2015 the company spent more than 1200 hours of on-the-job training to students and interns from the Wetrsquosuwetrsquoen and Cheslatta Carrier First Nations who recently graduated from the Northwest Community Collegersquos School of Exploration and Mining Environmental Monitoring Assistant Program (EMAP) and other programs
In keeping with Huckleberryrsquos involvement with the commu-nity the company also supports the College of New Caledoniarsquos Mineral Processing Assistants Course by providing instructors on-site mill tours and job opportunities at the mine Several member of the Nee Tahi Buhn Indian Band have been working as on-call positions as environmental monitors and confined space guards in the mill Huckleberry staff regularly respond to community requests to attend speak and sponsor community events such as career days annual meetings mine tours and traditional community gatherings
ldquoDeveloping successful mining arrangements with Indigenous people isnrsquot only about technical astuteness itrsquos about relation-ships reconciliation and the balancing of interestsrdquo says Wong
Itrsquos obvious from these brief examples that Huckleberry Mines Ltd is taking its work with the First Nations seriously but itrsquos more than that
Mike Robertson Chief Policy Advisor Cheslatta Carrier Nation says ldquoIn 2005 the Cheslatta Carrier Nation challenged the mine of its commitment to sound environmental manage-ment During the subsequent 10 years Huckleberry manage-ment and staff committed to engage our people directly in planning and implementing a progressive reclamation program of old mining zone areas and in the development of new zones
Just like the re-vegetated dams and tailings sites our environ-mental relationship has blossomed toordquo
Chief Rene Skin Skin Tyee Nation added ldquoMarke Wong of Huckleberry Mines has participated in our Nationrsquos annual gath-erings including community open houses and cultural camps Hersquos engaged directly with our youth and elders for the past two years He has been diligent in keeping us informed of changes to the on-going miner operation and opportunities for our peoplerdquo
Managing Impacts and Restoring the LandLike all mining therersquos a certain impact to the natural environ-ment and following the closure of a mine there are permanent changes to the landscape The Huckleberry Mine is no exception
Conventional drilling blasting loading and hauling using a combination of electric drills and shovels diesel hydraulic exca-vators and both 100 and 150-ton diesel-powered haul trucks are used to process approximately 17000 tonnes of ore a day
Milling is accomplished by grinding the ore in a 975m diam-eter SAG mill and then through two ball mills The resulting slurry is processed by flotation to produce a concentrate of 27 per cent copper that is subsequently shipped by truck to the port at Stewart for storage and shipment to Japan
Tailings from the milling process is discharged into a tailings management facility and supernatant water is discharged to the aquatic environment through a pipeline to a submersed outfall and diffuser located in Tahtsa Reach part of a man-made hydro-power reservoir developed in the 1950s All water discharged falls within their provincial and federal permit limits
With this comes noise dust and all of the other factors asso-ciated with mining but as mentioned earlier Huckleberry Mines Ltd is aware of the situation and addresses them through its Environment and Community Affairs Program which includes a Fish Habitat Compensation Program
And itrsquos because of its efforts in this area that Huckleberry Mines Ltd recently received the 2014 BC Metal Mine Reclamation Award from the BC Technical Research Committee
Aerial photo of Huckleberry Mine located between Huckleberry Mountain and Tahtsa Reach
Huckleberryindd 18 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 19
on Reclamation (BCTRCR) and the Mining Association of BC (MABC) in recognition for outstanding practices in its fish habitat restoration program a program that actually increased the available fish habitat in the area of the mine as well as its successful relationship building efforts with First Nations
Even before the mine was built the company recognized that its minersquos footprint could have an impact on the available fisher-ies habitat in the area In particular ldquoCreek 4rdquo a known fish-bearing stream was expected to be impacted and so a plan was made to conduct some habitat enhancements in the area
Fisheries surveys conducted by Hatfield Consultants of North Vancouver identified nearby ldquoCreek Mrdquo which at the time was not a fish-bearing stream due to a naturally occurring barrier to fish ndashie a steep gradient reach that stopped any fish from reaching a headwater pond
Huckleberry Minersquos plan involved constructing a series of steps or weirs lined with geotextiles and anchored with rock fill These works were constructed by a team from Cariboo Divers from designs prepared by Hatfield Consultants
Subsequent fish surveys conducted between 2001 and 2011 showed initial success and that adult rainbow trout were present in the headwater pond and juveniles were present in the lower reaches
However subsequent surveys conducted between 2008 and 2011 indicated that the juvenile fish numbers decreased to record lows in 2011 The decline in fish numbers was attributed to failure of the weirs in the lower and middle fishways causing juveniles to become stranded in isolated pools and precluding adults from reaching the preferred spawning habitat between the lower and middle fishways
When initial monitoring of the remediated area in 2013 and 2014 was conducted Environmental Monitoring Assistants from the Yinka Dene Economic Limited Partnership and the Nootsenay Enterprises Ltd were called to assist in the evaluation of the stability of the constructed works as well as presence of fish and the structural integrity of the fishways have remained intact through high-flow periods with no erosion or undermin-ing of the weir structures
Cody Reid Deputy Chief amp Environmental Coordinator Nee Tahi Buhn Indian Band said ldquoThe design construction monitoring and maintenance of the Creek M fishway has led to an overall net increase in fish habitat in the area surrounding the mine in Tahtsa Reachrdquo
And David Belford Mineral and Natural Resources Liaison Officer Wetrsquosuwetrsquoen addedrdquo The HML Environmental team and participating consultants are to be commended on their proactive approach to reclaiming the fish habitat and to increas-ing that habitat within the mine footrdquo
During the 2013 fish survey 39 rainbow trout were captured the largest number of fish observed since 2008 These observa-tions were made even while construction of the middle reach fishways was ongoing
Marke Wong says that Huckleberryrsquos plans are to continue monitoring to confirm the effectiveness of the restoration work including hydraulic functioning physical stability and structural integrity fish distribution and net gain
From the operation of a mine in the mountains to the refur-bishing of a fishway in a local waterway Huckleberry Mines Ltd continues to show its appreciation and respect for the environment and the First Nations communities it works with in British Columbia
Perhaps the most important message for industry is that the example set by Huckleberry Mine and its First Nation commu-nity partners demonstrates that when parties begin to have meaningful dialogue and understanding develops on both sides then the path to cooperation and partnership is open
In the case of Huckleberry Mine this has led to the devel-opment of partnerships that have helped it expand its opera-tions and have help provide support during tough economic times
The nomination of Huckleberry Mines Ltd for the 2014 BC Metal Mine Reclamation Award came from its First Nation Partners because as Chief Karen Ogen said ldquoOur partnership with Huckleberry Mines has made a big difference in our small community Since the 2013 partnership agreement was signed our people have benefitted from jobs training and business opportunities Our experience with Huckleberry has been very positive and we have greatly appreciated Huckleberryrsquos efforts to engage with our community and to work with our business arm the Yinka Dene Economic Partnership The Wetrsquosuwetrsquoen First Nation is very pleased to nominate Huckleberry Mines for this awardrdquo
And lastly Mike Robertson added ldquo The Cheslatta Carrier Nation has been a successful Huckleberry Mines Limited con-tractor on a number of projects including a tailings dam We have our members employed by Huckleberry Mines and we maintain regular contact with its staff and management on all aspects of operations We support the nomination because we are confident they will continue and enhance their innovative and progressive practices of returning the land to a near natural self-sustaining staterdquo CMJ
FIRST NATIONS and MININGHUCKLEBERRY MINE
Material for Huckleberry Minersquos step-building program being delivered to the site by helicopter
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FIRST NATIONS COMPANY PROVIDES VITAL ROADBUILDING SERVICES
TO REMOTE COMMUNITIESStaff Report
REWARDSROADto
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JANUARY 2016 CANADIAN MINING JOURNAL | 21
FIRST NATIONS and MINING
K imesskanemenow is a Cree word that means ldquoThis is our Roadrdquo a fitting name for the winter road management company that is owned and operated by four northern First Nations Attawapiskat Fort
Albany Kashechewan and Moose Cree Their company Kimesskanemenow Corporation (also
known as K Corp) was founded in 2001 and for the past 15 years has been responsible for building and maintaining the Western James Bay Winter Road (JBWR) which starts in Moosonee and travels 312km up the western coast of James Bay connecting the communities of Fort Albany and Kashechewan and eventually ending at the Attawapiskat First Nation
The road is a lifeline to the remote areas in the James Bay Lowlands of Northern Ontario and without it existing and future development of this part of the country would not be possible
In fact itrsquos thanks to the road that K Corp helped build that companies like De Beers Canada are in the north
As most people know De Beers Canada made international headlines when it built the Victor Mine in 2006 (the first dia-mond mine in Ontario at a cost of about $1 billion) approxi-mately 90km west of the coastal community of Attawapiskat First Nation
Since the open-pit mine began production in 2008 with an annual tonne processing capacity of about 27 million tonnes and an annual carat production capacity of 600000 carats it has proven to be a key to Northern Ontario development and its communities
With an estimated mine life to 2018 the Victor Minersquos ener-gy and equipment needs will continue for at least two more years and according to K Corp cannot be met without the JBWR
Air transport is prohibitively expensive so the winter road is considered by far the most affordable way to supply the remote mine with the necessary 450 loads of cargo and 10 to 11 million litres of diesel fuel that it consumes each year
But the Victor Mine is not the only site that requires a reliable supply of goods and services Similar transportation challenges also face other remote northern First Nations communities that need to truck goods and fuel via seasonal winter roads
With the exception of Moose Cree First Nation which has a railway line to Cochrane air travel is the only transportation available year-round for the three other First Nations which for most community residents is prohibitively expensive
Thanks again to the JBWR it provides a critical socio-eco-nomic tie between the communities as well as a significant source of employment and to keep relationship going Kimesskanemenow Corporation and De Beers Canada have entered into a productive partnership
In 2004 the two parties signed a Winter Road Agreement which was re-negotiated in 2014 Under the agreement De Beers pays the bulk of the costs of the roadrsquos construction and maintenance costs while the balance of the costs are provided by the Provincial and Federal governments
Kimesskanemenow Corporation is guided by three central priorities Building capacity in its communities ensuring that its
member communities receive maximum benefits and mainte-nance of traditional culture which naturally includes environ-mental protection
The company also ensures that money from building and main-taining the road stays in the hands of local First Nation members
To do this the road is constructed and maintained entirely by local community members either as direct employees or through local contractors This has required developing capacity which the company has done through training and education programs
The practical effect of these guiding principals is that during the winter months roughly 200 individuals work on the road helping ensure that the road brings economic benefits to individ-uals families and communities
For many seasonal employment gained through constructing and maintaining the winter road is the only consistently avail-able work in the community Furthermore dividends from the company go back to the hands of the communities to be used as they see fit
Finally Kimesskanemenow Corporation donates to commu-nity-based initiatives that will benefit the communities with each of the four communities allotted an annual amount
Reflecting the corporationrsquos central values the money is used to fund initiatives that benefit youth the environment or main-tain traditional ways of living
One example of the programs that the corporation helps fund is CreeFest a celebration of Cree culture that is held annually in the Mushkegowuk communities
The company also funds the Edward W Chilton scholarship at Northern College in honour of the late Ed Chilton the com-panyrsquos first president The scholarship is awarded to community members to further their education
K Corprsquos list of smaller grants available online include many community and cultural programs that maintain the vitality of all these communities
Kimesskanemenow Corporation maintains an important piece of infrastructure that benefits the communities and allows for the ongoing operation of the Victor Diamond Mine As a cooperative venture the corporation has proven itself to be invaluable to both the communities and the mining company CMJ
Thanks to the efforts of K Corp the Western James Bay Winter Road provides access to the remote areas of Northern Ontario
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It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
WHERE WE STANDSERIOUS QUESTIONS DESERVE SOME SERIOUS ANSWERS Staff Report
I trsquos been just over a year since the Native Womenrsquos Association of Canada (NWAC) received funding from Aboriginal Affairs and Northern Development Canada (AANDC) to identify and ask questions about the barriers
indigenous women face and secondly to get direct and honest answers as to what are the realistic opportunities for them in the mining industry
Basically as the headline says they want to know where they stand insofar as their positions within the mining industry are concerned
The questions NWAC put on the table at a recent forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development dealt with two perspectives the first looked into resource development corporations and sought to understand what these corporations knew about aboriginal women and the second was from aboriginal women and how they viewed the mining industry with regards to economic devel-opment and employment opportunities
The forum was attended by an impressive gathering of female indigenous leaders and representatives from the resource devel-opment sector A full list of the participants is featured in the adjacent box
The intent of the engagementdiscussion session was to initi-ate a constructive dialogue amongst the participants with the overall goal of
s increasing the labour market participation of indigenous women in the resource development sector
s ensuring indigenous womenrsquos voices are heard in the devel-opment of these projects
s sharing of information on the industry and
s discussing the various opportunities and barriers facing indigenous women who wish to work in the industry
A DISTINGUISHED PANEL OF WOMEN ATTEND OTTAWA FORUM
Siobhan Dooley Hatch EngineeringGrant Goddard New Gold Inc (Rainy River Project)Karina Kesserwan Kesserwan (Law ndash Strategy ndash Solutions)Stacey Jack New Gold Inc (Rainy River Project)Christopher Lefebvre Aramark CanadaMireille Pilotte New Millennium IronRachel Pineault Detour Gold CorporationKate Rafter Employment and Social Development CanadaLouise Reid-Schloen Hydro OttawaJamie Saulnier Running Deer ResourcesNancy Veal Resolute Forest ProductsMarilyn Capreol Shawanaga First NationPamela Eyles BC Native Womenrsquos AssociationSusan Forth Shawanaga First NationElize Hartley Ontario Native Womenrsquos AssociationMarian Horne Yukon Aboriginal Womenrsquos CouncilNoreen McAteer Alberta Aboriginal Womenrsquos SocietyVerna Polson Quebec Native Women IncTori-Lynn Wanotch Saskatchewan Aboriginal Womenrsquos Circle CorpBeverly Blanchard Native Womenrsquos Association of CanadaSydney Ducharme Native Womenrsquos Association of CanadaClaudette Dumont-Smith Native Womenrsquos Association of CanadaDan Peters Native Womenrsquos Association of CanadaMerv McLeod McLeod-Wood Associates IncNancy Wood McLeod-Wood Associates Inc
Beverly Blanchard (standing) of the Native Womenrsquos Association of Canada addresses delegates attending a forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development
Women in Miningindd 22 2016-01-12 1053 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 23
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
andor economic opportunitiesFor example when impact benefit agreements (IBAs) are
completed they tend to be locally focused and may not consider indigenous women that do not reside in the community or indigenous individuals who are not members of the particular community
From the indigenous womenrsquos perspective at the forum it was noted that indigenous womenrsquos opinions on the resource devel-opment sector were varied and divergent Like most things in life there were some women who are in favour of the mining industry and there are some who are against it
Many who are against the sector perceived it to be counter to the traditional role of indigenous women as water-keepers and caretakers of Mother Earth but on the other hand research found that there was also a significant percentage of indigenous women who were ambivalent towards the industry
Due to length and detail of the forum (from which this article is based) the information has been drastically reduced to fit the space
For complete details and a copy of the full Bridging the Gap Aboriginal Women and Resource Development Report please contact Beverly Blanchard Strategic Policy Partnership and Planning NWAC Ottawa bblanchardnwacca CMJ
INDIGENOUS WOMEN and MINING
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d e P e n d a B L e P r o J e c t d e v e L o P M e n t
Women in Miningindd 23 2016-01-12 1053 AM
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A s probably many of you know times are tough right now Commodity prices are slumping across the board affected by an overall slowing global economy that is being felt throughout Canada
But even during a stubborn downturn in global demand for many minerals and metals itrsquos no time to get down on mining because mining never goes away
Minerals and metals are the very foundation of virtually all of the goods we depend on in our daily lives The world will con-tinue to need mining and Canada can and should continue to be an important place where mining happens
A Look at Market ConditionsSo first how bad is the market
Global economic growth has been volatile in recent years Every time the Bank of Canada the IMF World Bank or others make growth projections it seems they amend them a few months later and always downwards With few exceptions the global economy is not doing well at all
The key economy for the mining sector is China which today consumes almost 50 per cent of the worldrsquos minerals and metals And Chinarsquos growth rate has been slowing along with growth rates in other emerging markets like Brazil Mexico and several Asian and African countries that are also falling
The one major exception is India whose growth is around 75 per cent and with its 13 billion people is seen as the next China in terms of minerals and metals consumption as the coun-try begins to rapidly industrialize
A Bedrock of the Canadian EconomyEven in a slump miningrsquos contribution to Canada is enormous
Despite some job losses at some operations mining and min-eral processing are directly employing more than 375000 Canadians including well over 10000 Indigenous Canadians paying the highest average industrial wage in the country Mining remains proportionally the largest employer of indige-nous Canadians
Mining accounts for roughly 20 per cent of the overall value of Canadian exports valued at nearly $90 billion
Nationally we pay an average of $38 billion annually in corporate taxes and royalties to federal provincial and territorial governments
Mining companies are also paying significant royalties to indig-enous communities across the country indirectly through govern-ment resource revenue sharing and in some cases directly
Wersquore also supporting the second largest mining-supply sector in the world More than 3700 companies provide a wide spec-trum of services to the Canadian mining industry with an increasing number of these being indigenous-owned businesses
A major challenge facing mining in Canadarsquos north today is its lack of infrastructure The north is our industryrsquos future but the territories and the northern parts of our provinces lack criti-cal infrastructuremdashroads electricity ports railwaysmdashto service mines and get products to market
This lack of infrastructure is felt by communities many of them indigenous located in the north
According to the Mining Association of Canadarsquos (MAC)
MINING AND INDIGENOUS PEOPLES CANADArsquoS FUTURE By Pierre Gratton
Delegates attending the 23rd Annual Conference of the Canadian Aboriginal Minerals Association in Vancouver listen to talks during the three-day event
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 24 2016-01-12 1054 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 25
FIRST NATIONS and MINING
research it costs about 2 to 25 times as much to build and operate a gold and base metal mine in northern Canada off grid than in the south
We should be looking at ways to level the playing field in the north where infrastructure is lacking Canada needs a strategic collaboration involving industry and governments federal pro-vincial territorial and Indigenous to get this nation-building infrastructure in place
This can be done by increasing government investment in new infrastructure or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good
Additionally there is the issue of indigenous rights and title and how this affects the project certainty
Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and if necessary accommo-dated for activities on traditional indigenous territories affects project timelines and certainty
Connected to this is the concept of social license which in general terms defines the support earned by proponents to pro-ceed with and operate their project
The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects
That is a very complex issue The Supreme Court of Canada in its recent decision on the
Tsilhqotrsquoin First Nationrsquos claim recognized indigenous title a first in Canadian law
It also provided clear guidance on the criteria needed to demonstrate title and on the rights and obligations that flow from that in the process also identifying where title was found not to exist
It is a significant decision that provides us all with much more clarity going forward
But back to the question of the vetoThe Court clearly recognizes that in some circumstances the
right to title can be limited by the Crown So there is no abso-lute veto under Canadian law even in the case where title has been proven
But for the Crown to place limits on indigenous title it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead ndash a very significant test
At its core the decision continues a balancing act between empowering and limiting the authority of both indigenous peo-ples and governments The Court was very wise
So what does this mean for proponents There is the law and then there is reality No proponent
wants or should want to build a project that is unwelcome or opposed by local communities This is quite frankly an unsus-tainable option and one best avoided And most communities are open to the opportunities mining brings and increasingly so
Letrsquos look at reality in a different way
Today there are more than 250 agreements between mining companies and indigenous communities across the country It is decidedly rare that projects proceed without impact benefit or other such agreements concluded
These agreements which have matured with time and experi-ence provide significant local benefits and assurances including
Commitments on business procurement and often assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide
Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight
Support for skills training and mentoringDirect economic or financial benefitsSome of these agreements are transforming communities in
very significant waysNewgoldrsquos New Afton project in Kamloops is one such exam-
ple The diamond mines in the NWT are others as is Voiseyrsquos Bay We are seeing high levels of indigenous participation as high as 60 per cent in the case of Voiseyrsquos Bay increasing levels of post-secondary education and significantly improved eco-nomic and social outcomes
Nonetheless it is undeniable that the negotiation of these agreements takes time Trust must be built between the parties and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the pro-posed mine prior to it proceeding
Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association Photo by Tracey Sanders Photography
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 25 2016-01-12 1054 AM
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
AME BCindd 27 2016-01-12 110 PM
28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Nfld Reportindd 30 2016-01-12 1055 AM
Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
PROFESSIONAL DIRECTORYA
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Stu Blattner 33 wwwstublattnercom
Hard-Line35 wwwhard-linecom
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W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
- 002
- 003
- 004
- 005
- 006
- 007
- 008-009
- 010-015
- 016-019
- 020-021
- 022-023
- 024-026
- 027
- 028-030
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-
In 2015 Canadarsquos junior stock exchange the TSX Venture Exchange sunk to levels that a few years ago would have been inconceivable This drop caused primarily by the sustained slump in commodities led the SampPTSX Venture
Composite Index to sink below 500 points for the first time since the TMX group bought the Canadian Venture Exchange in 2001 The low point represents a 29 drop from where the TSXV started at the beginning of 2015 and a staggering 85 drop from its peak in 2007
A primary cause of the exchangersquos poor performance has been the extremely challenging market conditions facing extractive resource issuers At present more than 70 of the companies listed on the exchange operate within the mining or energy sec-tor After a two plus year depression in mining equities com-bined with weak prices for most metals as well as well as hydro-carbon products junior resource issuers have fallen out of favour with investors
TSXV White PaperThe TSXV conscious of the market realities facing its issuers and with the aim of attracting new investment conducted a lengthy consultation process with clients and stakeholders These consultations focused on identifying new initiatives to respond to realities facing its listed issuers and other market participants in light of the sluggish capital market conditions The outcome of the consultations was a White Paper issued on December 17 2015 It contains proposed broad based reforms to various TSXV rules policies and strategies aimed at fostering renewed interest in the exchange and its services The full text can be found at httpswwwtsxcomresourceen1252
The recommendations of the White Paper were synthesized into a three-pronged strategic reform program The first and second prongs of this program are particularly relevant for cur-rent and potential resource based issuers
Cost of complianceThe first prong of the program focuses on reducing the cost of compliance a primary area of concern for most resource issuers The White Paper proposes a number of rule changes including
s eliminating the general requirement for sponsorship of new issuers undertaking a reverse takeover (RTO) change of
business (COB) or other business combinations narrowing the application of shareholder approval require-
ments for inactive issuers undertaking an RTO or COBs implementing a director and officer ldquoNEXUS-typerdquo status
certification program to reduce or eliminate ongoing require-ments for certain individuals
s extending the shelf life of on-file personal information forms for directors and officers from three to five years
eliminating escrow requirements that overlap with similar requirements of the Canadian Securities Administrators
s implementing an automated system for transaction filing and accelerating response times to speed up overall transaction processing
Attracting new capitalThe second prong of the White Paperrsquos strategic reform pro-gram focuses on attracting new and more diverse capital to the TSXV The initiatives proposed under this prong are less tech-nical and less defined than those proposed under the first prong but include commitments to undertake active and ongoing promotion of TSXV-listed issuers through roadshow presentations to fund managers retail investors investment advisors and banks and research analysts instituting an ongo-ing streaming summary service of available public offerings and introducing a new market making program to be adminis-tered by the exchange
TSXV seeking feedbackWhile the exchange has committed to implementing the above listed reforms under an ldquoaggressive timelinerdquo prior to doing so it plans to host a series of town hall meetings where it will entertain feedback on the strategy and proposed initiatives In the coming months existing issuers and other interested parties who may be impacted by these reforms should carefully monitor the develop-ments and provide feedback as appropriate
Whether these initiatives will be successful in achieving their intended results remains to be seen but given the extremely challenging market environment for resource issuers the pro-posed reforms should be implemented efficiently and effectively to reduce the headwinds facing junior issuers CMJ
JAMES CLARE is a partner with Bennett Jones in Toronto
LAW
By James Clare
TSXV response to commodities slump
6 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Lawindd 6 2016-01-12 1043 AM
T he Truth and Reconciliation Commissionrsquos six-vol-ume 23-million-word final report was issued on December 15 2015 It not only contains stories from survivors of residential schools but a set of 10 guid-
ing principles and 94 recommendations or Calls to Action While the federal provincial and territorial governments
must act upon the majority of the 94 recommendations there are also recommendations for all sectors of society including the churches media arts academia and industry
For example the churches now have less than 90 days before issuing a joint statement by March 31 2016 on how they will implement the spiritual and religious components of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP)
The churches must also reject the concepts ndash such as ldquoterra nullisrdquo and the Doctrine of Discovery -- used by the church and state to assert sovereignty over Indigenous peoples and their lands
However I must point out that First Nations do not expect industry to atone for the sins of the past But we do however expect to be treated as equals and as the rightful owners of the land
Mining companies in Canada must recognize and acknowl-edge the era of Reconciliation as common place in all of its dealings with First Nations as it relates to mining exploration development extraction and remediation This also includes training and educating management and staff on First Nation history culture human rights and anti-racism
Here are some key points to consider s The Truth and Reconciliation process is becoming an institu-
tion in Canada that will inspire and influence positive approaches to relationships between Canada and its First Peoples
s Implementing the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) and respecting Treaties is a major focus within the TRC Calls for Action
s Business and industry in all Canadian sectors are being prompted by the TRC Report to become aware of the report and make efforts to build bridges This will close the divide between First Nations and Industry that was created as a
result of ignorance of history of Canadarsquos Indian Residential School past
s First Nations deep connection to the land is evident in lan-guage culture and world view ndash this is a key focus in many of the calls for action
s The respect and responsibilities that First Nation peoples have for the land is an important element to the process of Reconciliation that is now being recognized by federal juris-diction As noted in the 2015 Speech from the Throne the environmental assessment process will soon become formal-ized adding First Nations to the decision-making process as it pertains to the protection of the environment
s Benefits to First Nations regarding mining development are also a key factor in reconciliation The era of sealing a deal solely with an IBA (Impact Benefit Agreement) is a thing of the past First Nations seek to take on their roles as govern-ments beneficiaries and providers for their people
s The lsquoReconciliation Lensrsquo can be a way for industry to create stronger relations avoid conflicts build strong business partner-ships and help achieve collective prosperity with First Nations In conclusion here are four key messages that sum up the
outcomes from acting upon Reconciliation and forming a new relationship with our Peoples 1 Reconciliation can be a benefit to building strong mining
partnerships with First Nations2 Reconciliation as a policy approach for mining companies
will expedite relationship-building beyond most conflicts that arise out of resisting First Nation history and Cultural competence
3 The cost benefit to a Reconciliation approach in the mining industry is invaluable
4 Reconciliation in Canadian mining can cultivate a social con-sciousness that could define the industry as a 21st century legacy maker
I look forward to continued dialogue with the mining indus-try as we work together on making 2016 a breakthrough year for positive change Together we will build a better more inclusive Canada for our children and future generations CMJ
By Ontario Regional Chief Isadore Day Wiindawtegowinini
Mining must includeTruth amp Reconciliation
FIRST NATIONS
JANUARY 2016 CANADIAN MINING JOURNAL | 7
First Nationsindd 7 2016-01-12 1043 AM
8 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
NMENTENVIROTHE
Pho
to
Thin
ksto
ckc
om
THE WORLD AGREES ENOUGH IS ENOUGHBy Russell Noble
FN Introindd 8 2016-01-12 1044 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 9
NMENTENVIROMother Nature canrsquot take it much longer
E ver since John Cabot landed in Newfoundland in 1497 and started trekking westward into the unknown exploration and later development has left its mark on The Environment
In fact itrsquos left more than a mark itrsquos scarred the earth forev-er thanks to an unquenchable thirst for discovery but like it or not the world wouldnrsquot be what it is today if not for yesterdayrsquos adventurers
Regardless of how appreciative we are to John Cabot and The Vikings before him Mother Nature has taken the brunt of their quests through the loss of trees the displacement of wildlife polluted waterways and often the disappearance of fish and most recently in the news air quality because of toxic emissions resulting in climate changes
In just over 500 years the world has gone from pristine to polluted and it wasnrsquot until recently when the ldquoWorld Leaders Unanimously Agreedrdquo at the United Nationsrsquo Climate Summit in Paris France that everyone became more aware of the fact that the world has had enough it canrsquot take any more
And thatrsquos when The Environment started receiving the worldwide attention it deserves
ldquoAnd itrsquos about timerdquo says The Assembly of First Nations of
Canada and the 634 bands it represent across the country because thatrsquos what indigenous people from coast-to-coast-coast want mosthellip a clean safe and bountiful place to live and work
As one delegate attending the 23rd Annual Canadian Aboriginal Minerals Associationrsquos meeting in Vancouver said late last year ldquoWersquore the canaries in the coal mines wersquore out there to warnrdquo
Philosophical yes straightforward no question but more-over it was a sincere and insightful message that Federal Indigenous Affairs Minister Carolyn Bennett later echoed by saying ldquoThere is every evidence Canadarsquos Aboriginal Peoples are indeed on the front lines of climate changerdquo
As already mentioned concern for the well being of The Environment is a centuries-old topic for discussion and when you look at the photo on these pages itrsquos hard to understand how mankind can do what itrsquos doing to endanger such perfection
But it is and doing so at such an alarming rate that no matter what the 197 world leaders agreed to in Paris last year scenes like this are being threatened around the world every day and unless we take The Environment seriously future generations will have only photographic images of the lsquoWay We Werersquo
Thankfully both the First Nations and the Canadian Mining Industry are two groups working on improving the lsquoWay We Arersquo so that future generations donrsquot have to look back on refer-ence material to see how things used to be
Stories on the following pages take a closer look at First Nations and Mining Relations and how theyrsquore working in har-mony and in the best interest of everyone and everything involved CMJ
FIRST NATIONS and MINING
FN Introindd 9 2016-01-12 1044 AM
NWT INDIGENOUS JUNIOR MINER ANTES UP IN ITS AGGRESSIVE LEAP INTO OWNERSHIP IN MINING ECONOMY
By Northern Correspondent Bill Braden
BOLD amp BRAVE
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T wo years ago the Dene of the NWT bold-ly jumped into the dragonrsquos jaw and launched their own mining company
The targets significant polymetallic potential near Great Bear Lake and dia-monds near the Ekati and Snap Lake mines
The vision be more than a source of labour and supplier of services to other miners They want to be
their own stand-alone producer among the first in Canada to pursue indigenous mine ownership
Wait a minute Arenrsquot First Nations usually railing against resource development the constant thorn in miningrsquos side And in the face of NWTrsquos gnarly record as a high-risk mining envi-ronment with dwindling exploration and labyrinthine regula-tions what is driving a home-grown indigenous company to do this in the first place
Aerial photo of the mill and camp at Terra Silver Mine abandoned near the south shore of Great Bear Lake since 1985 Photo courtesy of DEMCo LP
Bradenindd 10 2016-01-12 1138 AM
ldquoThe main thing is people want to participate and take ownership Itrsquos coming from the simple statements that have been made at the Dene Nation assemblies for yearsrdquo says Darrell Beaulieu the President and CEO of Denendeh Investments Incorporated (DII) and its latest ven-ture DEMCo Ltd
ldquoNo one ever said we are against business or development We said we want to be participants in development meaningful participantsrdquo
To a considerable extent that has indeed been the case in the NWT Beaulieu points to the prosperous part-nerships among more than 60 NWT indigenous businesses and diamond giants De Beers Dominion and Rio Tinto
Between 1996 and 2011 $42 bil-lion or 33 per cent of their northern spend was with indigenous companies and almost 9500 person years of employment were filled by indigenous workers in that period about 25 per cent of the total labour quantum
But he wanted to go beyond the jobs and servicesupply deals and take the ambitious jump to the equity level The current slump in mining activity and eroding values on existing properties gave momentum to Beaulieursquos plan to create DEMCo in the spring of 2013
ldquoSo the timing to pick up properties andor junior mining companies is upon usrdquo said DIIrsquos website at the time
JANUARY 2016 CANADIAN MINING JOURNAL | 11
FIRST NATIONS and MINING
Darrell Beaulieu CEO of DEMCo LP and this yearrsquos winner of the Skookum Jim Award from PDAC for outstanding achievement and contribution to mining by an aboriginal group or individual
Bradenindd 11 2016-01-12 1138 AM
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It continued on a note of high optimism ldquoThe silver lining to present and initiate a Denendeh exploration and mining compa-ny at this time may help create momentum for fundamental change in First Nation participation in resource development in the Northwest Territories and Canadardquo
The soft-spoken Beaulieu 58 is an Akaitcho Dene born and raised in Yellowknife who has earned numerous accolades for his leadership The most recent is the 2016 Skookum Jim Award from the Prospectors and Developers Association of Canada acknowledging significant achievement and contribution to mining by an indigenous group or individual
Hersquos is no stranger to indigenous and northern corporate governance Hersquos a three-time Chief of the Yellowknives First Nation and has held directorships with Northland Utilities the NWT Business Development and Investment Corporation and numerous industry associations
And hersquos no stranger to mining either as one of his first jobs was with Noranda Exploration doing EM surveys mapping prospecting claim staking and general exploration work
Beaulieu has been an influential advocate for Dene invest-ment through the parent group Denendeh Investments Limited Partnership an alliance of 27 First Nations communi-ties across the NWT It boasts a diverse portfolio including oil and gas drilling services electric utilities communications real estate and now exploration and eventually mining
Optimistic StartTo get DEMCo set up Beaulieu hired Yellowknife prospector
Trevor Teed into the shop as exploration vice president Teed brought with him a hunch hersquod been plugging away at for almost two decades the potential for a new discovery in the Camsell River region southeast of Great Bear Lake directly under four historic silver producers that operated from the 1960s to 1985
rdquoI suggested to him that the potential for IOCG (iron oxide-copper-gold) is what attracted me to it not silverrdquo says Teed ldquoDarrell agreed and despite the initial doubt of two of our three contract geologists our initial thoughts have been proven and there is IOCG at Camsell Riverrdquo
ldquoFirst it was kind of a desktop jobrdquo says Beaulieu ldquoThe data was all over the place We had to go to the United Sates Alberta BC the Geoscience office here in Yellowknife personal homes and at site too it was amazing where all the data ended up after 30 yearsrdquo
They resampled thousands of metres of decades-old core at site (that saved millions of exploration dollars) The results first disclosed in late 2014 proved out their early optimism
ldquoBack in the 70s they were only looking for silver We looked at the core and did some more prospecting and we found that hey therersquos a lot of gold there Whatrsquos more after our first field season was confirmation therersquos a huge magnetic body there also It looks like we have an IOCG depositrdquo
Beaulieu is too savvy to get excited at this point but polymet-alic IOCG deposits (Australiarsquos mammoth Olympic Dam is one) can be truly massive The discovery of the zone estimated roughly at some seven by 16 kilometres in size was first announced in late 2014
Teed says he had taken his hunch to other miners but credits Beaulieu with the vision and the belief to carry it forward His investigation so far has uncovered an extensive magnetic zone under the old silver digs
ldquoIt is a significant event I think that when the rest of Canada catches up to what we have wersquore going to see significant explo-ration again in the areasrdquo predicts Teed
That significance is backed up by mapping and geophysical
Noel Michel of Lutsel Krsquoe takes a break during a prospecting trip near Great Bear Lake Photo courtesy of DEMCo LP
DEMCo Exploration Vice-president Trevor Teed CEO Darrell Beaulieu and COO Margaret Gorman billbradenphoto
Bradenindd 12 2016-01-12 1138 AM
work carried out by the Geological Survey of Canada and the NWT Geological Survey over the past decade
Geologist Scott Cairns Manager of Bedrock Mapping and Mineral Deposits at the NTGSrsquos Yellowknife office says the historic production of silver and uranium is indicative of larger polymetallic IOCG deposits in the Great Bear magmat-ic zone
ldquoThey are definitely in a high mineral potential area thererdquo says Cairns adding that DEMCorsquos claims are at the north end of that zone while Fortune Mineralrsquos NICO project about 200km to the south is on its southern edge
Cairns says federal GSC geologists have recently completed a large study of alterations that can help identify IOCGs ldquoSo therersquos an enormous volume of work of geophysical characterisa-tions ways to track down where these potentially valuable deposits might be hiddenrdquo he says
DEMCorsquos IOCG discovery has not sparked any new rush of interest in the region But on a territory-wide basis says Cairns the number of inquiries website and office visits to his library and data bases has been spiking in the past few months
ldquoI think what wersquore seeing is that while itrsquos difficult to fund boots-on-the-ground exploration companies are doing their homework right now and will be using that when conditions improverdquo
In The GameAs of late December 2015 DEMCo was fully engaged in plan-ning the 2016 field program which Beaulieu hopes will include airborne geophysical work as well as more ground sampling They will spin off another subsidiary Camsell River Minerals Ltd to carry the project
But just like any other junior the team will be out there looking for private cash during one of the metal marketrsquos deepest and most prolonged slumps
And predictably thatrsquos not the only hurdle The claim block is within an overlapping boundary of both the Tlicho and Sahtu land claim regions
The four old mines on the claim block are among dozens across the NWT deemed for rehabilitation by the federal govern-ment There is an existing airstrip but land access would largely be on the historic Denison Ice Road from Behchoko first opened in the 1960s but dormant for 30 years
Yet another layer is working with the NWT Government as it gets used to managing the mines portfolio after its transfer from Ottawa to the NWT in April of 2013
And because DEMCorsquos parent corporation is governed by an alliance of all NWTrsquos First Nations - and itrsquos their money thatrsquos at risk - Beaulieu also has to satisfy a board that isnrsquot all that familiar with being on the investor side of the mining equation
Was it a hard sell to get his board on side in the first place No says Beaulieu pointing to DIIrsquos investment of about $2
million in cash and time to date ldquoThe hard sell is going to be finding the money to add value without diluting too muchrdquo
He says hersquoll be walking the floors at the Vancouver Cordilleran Roundup and Torontorsquos PDAC in 2016 promoting DEMCo
The Camsell project is where DEMCo is now fully focused but it is also invested in the NWTrsquos prolific diamond fields
In the Lac de Gras region east of the Ekati diamond mine the Fin claim block hosts known diamondiferous kimberlites while the Jen block has six known geophysical targets that have not yet been drilled
The Jaedenz block sandwiched between the Gahcho Kue and Snap Lake mines was explored and drilled by both De Beers and Winspear in the 1990s
JANUARY 2016 CANADIAN MINING JOURNAL | 13
Yellowknife-born Trevor Teed prospector and DEMCo VP of Exploration at the Camsell River properties Photo courtesy of DEMCo LP
Among the available resources combed over by DEMCo were these teetering core racks some dating back decades Photo courtesy of DEMCo LP
Bradenindd 13 2016-01-12 1138 AM
No work was done during the 2015 season and the company has not yet announced whether it will commit anything this year
An Indigenous AdvantageDoes being an Aboriginal-owned venture mean DEMCo will get a better reception from investors or an easier ride through the Northrsquos rocky regulatory regime
ldquoWe havenrsquot really pushed itrdquo says Beaulieu ldquoWersquore focussed on doing our own thing for now It takes time to grasp and understand what is it you have [Wersquore ask-ing] the same type of questions that any junior asks wearing the same boots same gloves We know itrsquos a high-risk business but itrsquos a high reward too Whoever is in there has really got to manage and yoursquove got to be able to sustain your own neck In terms of the regulatory regime that is an independent process we respect it and expect to be treated like everyone elserdquo
In a February 2015 interview with the business magazine Corporate Knights he did allow that having the Dene communities at his own board table gives him a home-court advantage
ldquoI think community engagement is our competitive edge And that edge is available because we are a Northern Dene-owned com-
14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Ground-level (above) and aerial (opposite page) of mill and camp at Terra Silver Mine near Great Bear Lake
Bradenindd 14 2016-01-12 1138 AM
pany And wersquore operating in a territory where indigenous people have a significant influence on our activityrdquo he said
Don Bubar as President and CEO of Avalon Rare Metals Inc and in previous roles with the PDAC is a passionate advocate for indigenous inclusion in Canadarsquos mining sector He believes that future mineral exploration in northern Canada will be led by indig-enous businesses
ldquoIt is natural that this participation would progress from a pas-sive one as a service provider to a more active one as an owner of a mineral development business with title to active projects Darrell Beaulieu and DEMCo are providing the leadership for the Dene Nation in going down this pathrdquo said Bubar in an email
ldquoPart of the challenge the industry faces is simply creating more public awareness of the importance of the industry to the northern economy especially for aboriginal communities Eco-activists have been successful in demonizing the industry in the North DEMCo has a key role to play in changing the perception that mineral exploration and development creates only unwanted environmental impacts without creating significant economic benefits for north-ernersrdquo CMJ
JANUARY 2016 CANADIAN MINING JOURNAL | 15
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FIRST NATIONS and MINING
Bradenindd 15 2016-01-12 1138 AM
COMMUNITY EFFORT HELPSSOLVE FISHWAY PROBLEMBy Russell Noble
PARTNERSHIPA WINNING
16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Shannon Haizimsque Chief Operating Officer of the Yinka Dene Economic Limited Partnership the commercial business arm of the Wetrsquosuwetrsquoen First Nations at the Huckleberry Mine site Adjacent photo shows a series of steps lined with geotextiles and anchored with rock fill as part of the minersquos Fish Compensation Plan
Huckleberryindd 16 2016-01-12 1052 AM
Almost everybody associates the name ldquoHuckleberryrdquo with Mark Twainrsquos Huckleberry Finn and his comrade Tom Sawyer but in the mining community Huckleberry is also the name of a Canadian mine that has been in production in northwestern British Columbia
since October 1997 Huckleberry Mines Ltd is an active open-pit coppermolyb-
denum mine located approximately 100km south of Houston BC Production rates (in 2014) were 34 million pounds of copper 2202 ounces of gold and 183218 ounces of silver and like many mines today itrsquos owned by a consortium of companies under one name Huckleberry Mines Ltd (HML) of Vancouver
The mine is owned and operated by Huckleberry Mines Ltd which in turn is owned 50 per cent by Imperial Metals Corporation of Vancouver and 50 per cent by a Japanese consor-tium including Mitsubishi Materials Corporation Dowa Mining Co Ltd and Furukawa Co
Partnering with First NationsSince 2013 Huckleberry Mines Ltd has signed communication amp partnership agreements with five separate First Nations orga-nizations Wetrsquosuwetrsquoen First Nation Cheslatta Carrier Nation Office of Wetrsquosuwetrsquoen Nee Tahi Buhn Indian Band and Skin Tyee Nation
Marke Wong Manager of Environmental amp Community Affairs for Huckleberry Mines Ltd says ldquoThese types of agree-ments have been instrumental in the success of Huckleberry Mine Because of the open dialogue with Indigenous communi-ties we have generated better understanding among all parties and this has increased First Nations access to economic opportu-nities such as job training employment and service contracts and has provided Huckleberry with dedicated community part-ners and a strong reliable work force and able contractorsrdquo
JANUARY 2016 CANADIAN MINING JOURNAL | 17
FIRST NATIONS and MININGHUCKLEBERRY MINE
Huckleberryindd 17 2016-01-12 1052 AM
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For example Wong says Huckleberry works directly with the economic development arm of its partners to provide training jobs and developing on-call labour contracts including the Yinka Dene Economic Development Limited Partnership (YLP) (Wetrsquosuwetrsquoen First Nation) the Nootsenay Enterprises (Cheslatta Carrier Nation) the Hunustrsquo ot en Investment Corp (Nee Tahi Buhn Indian Band) and the Skin Tyee Nation
He says that in 2014 and 2015 the company spent more than 1200 hours of on-the-job training to students and interns from the Wetrsquosuwetrsquoen and Cheslatta Carrier First Nations who recently graduated from the Northwest Community Collegersquos School of Exploration and Mining Environmental Monitoring Assistant Program (EMAP) and other programs
In keeping with Huckleberryrsquos involvement with the commu-nity the company also supports the College of New Caledoniarsquos Mineral Processing Assistants Course by providing instructors on-site mill tours and job opportunities at the mine Several member of the Nee Tahi Buhn Indian Band have been working as on-call positions as environmental monitors and confined space guards in the mill Huckleberry staff regularly respond to community requests to attend speak and sponsor community events such as career days annual meetings mine tours and traditional community gatherings
ldquoDeveloping successful mining arrangements with Indigenous people isnrsquot only about technical astuteness itrsquos about relation-ships reconciliation and the balancing of interestsrdquo says Wong
Itrsquos obvious from these brief examples that Huckleberry Mines Ltd is taking its work with the First Nations seriously but itrsquos more than that
Mike Robertson Chief Policy Advisor Cheslatta Carrier Nation says ldquoIn 2005 the Cheslatta Carrier Nation challenged the mine of its commitment to sound environmental manage-ment During the subsequent 10 years Huckleberry manage-ment and staff committed to engage our people directly in planning and implementing a progressive reclamation program of old mining zone areas and in the development of new zones
Just like the re-vegetated dams and tailings sites our environ-mental relationship has blossomed toordquo
Chief Rene Skin Skin Tyee Nation added ldquoMarke Wong of Huckleberry Mines has participated in our Nationrsquos annual gath-erings including community open houses and cultural camps Hersquos engaged directly with our youth and elders for the past two years He has been diligent in keeping us informed of changes to the on-going miner operation and opportunities for our peoplerdquo
Managing Impacts and Restoring the LandLike all mining therersquos a certain impact to the natural environ-ment and following the closure of a mine there are permanent changes to the landscape The Huckleberry Mine is no exception
Conventional drilling blasting loading and hauling using a combination of electric drills and shovels diesel hydraulic exca-vators and both 100 and 150-ton diesel-powered haul trucks are used to process approximately 17000 tonnes of ore a day
Milling is accomplished by grinding the ore in a 975m diam-eter SAG mill and then through two ball mills The resulting slurry is processed by flotation to produce a concentrate of 27 per cent copper that is subsequently shipped by truck to the port at Stewart for storage and shipment to Japan
Tailings from the milling process is discharged into a tailings management facility and supernatant water is discharged to the aquatic environment through a pipeline to a submersed outfall and diffuser located in Tahtsa Reach part of a man-made hydro-power reservoir developed in the 1950s All water discharged falls within their provincial and federal permit limits
With this comes noise dust and all of the other factors asso-ciated with mining but as mentioned earlier Huckleberry Mines Ltd is aware of the situation and addresses them through its Environment and Community Affairs Program which includes a Fish Habitat Compensation Program
And itrsquos because of its efforts in this area that Huckleberry Mines Ltd recently received the 2014 BC Metal Mine Reclamation Award from the BC Technical Research Committee
Aerial photo of Huckleberry Mine located between Huckleberry Mountain and Tahtsa Reach
Huckleberryindd 18 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 19
on Reclamation (BCTRCR) and the Mining Association of BC (MABC) in recognition for outstanding practices in its fish habitat restoration program a program that actually increased the available fish habitat in the area of the mine as well as its successful relationship building efforts with First Nations
Even before the mine was built the company recognized that its minersquos footprint could have an impact on the available fisher-ies habitat in the area In particular ldquoCreek 4rdquo a known fish-bearing stream was expected to be impacted and so a plan was made to conduct some habitat enhancements in the area
Fisheries surveys conducted by Hatfield Consultants of North Vancouver identified nearby ldquoCreek Mrdquo which at the time was not a fish-bearing stream due to a naturally occurring barrier to fish ndashie a steep gradient reach that stopped any fish from reaching a headwater pond
Huckleberry Minersquos plan involved constructing a series of steps or weirs lined with geotextiles and anchored with rock fill These works were constructed by a team from Cariboo Divers from designs prepared by Hatfield Consultants
Subsequent fish surveys conducted between 2001 and 2011 showed initial success and that adult rainbow trout were present in the headwater pond and juveniles were present in the lower reaches
However subsequent surveys conducted between 2008 and 2011 indicated that the juvenile fish numbers decreased to record lows in 2011 The decline in fish numbers was attributed to failure of the weirs in the lower and middle fishways causing juveniles to become stranded in isolated pools and precluding adults from reaching the preferred spawning habitat between the lower and middle fishways
When initial monitoring of the remediated area in 2013 and 2014 was conducted Environmental Monitoring Assistants from the Yinka Dene Economic Limited Partnership and the Nootsenay Enterprises Ltd were called to assist in the evaluation of the stability of the constructed works as well as presence of fish and the structural integrity of the fishways have remained intact through high-flow periods with no erosion or undermin-ing of the weir structures
Cody Reid Deputy Chief amp Environmental Coordinator Nee Tahi Buhn Indian Band said ldquoThe design construction monitoring and maintenance of the Creek M fishway has led to an overall net increase in fish habitat in the area surrounding the mine in Tahtsa Reachrdquo
And David Belford Mineral and Natural Resources Liaison Officer Wetrsquosuwetrsquoen addedrdquo The HML Environmental team and participating consultants are to be commended on their proactive approach to reclaiming the fish habitat and to increas-ing that habitat within the mine footrdquo
During the 2013 fish survey 39 rainbow trout were captured the largest number of fish observed since 2008 These observa-tions were made even while construction of the middle reach fishways was ongoing
Marke Wong says that Huckleberryrsquos plans are to continue monitoring to confirm the effectiveness of the restoration work including hydraulic functioning physical stability and structural integrity fish distribution and net gain
From the operation of a mine in the mountains to the refur-bishing of a fishway in a local waterway Huckleberry Mines Ltd continues to show its appreciation and respect for the environment and the First Nations communities it works with in British Columbia
Perhaps the most important message for industry is that the example set by Huckleberry Mine and its First Nation commu-nity partners demonstrates that when parties begin to have meaningful dialogue and understanding develops on both sides then the path to cooperation and partnership is open
In the case of Huckleberry Mine this has led to the devel-opment of partnerships that have helped it expand its opera-tions and have help provide support during tough economic times
The nomination of Huckleberry Mines Ltd for the 2014 BC Metal Mine Reclamation Award came from its First Nation Partners because as Chief Karen Ogen said ldquoOur partnership with Huckleberry Mines has made a big difference in our small community Since the 2013 partnership agreement was signed our people have benefitted from jobs training and business opportunities Our experience with Huckleberry has been very positive and we have greatly appreciated Huckleberryrsquos efforts to engage with our community and to work with our business arm the Yinka Dene Economic Partnership The Wetrsquosuwetrsquoen First Nation is very pleased to nominate Huckleberry Mines for this awardrdquo
And lastly Mike Robertson added ldquo The Cheslatta Carrier Nation has been a successful Huckleberry Mines Limited con-tractor on a number of projects including a tailings dam We have our members employed by Huckleberry Mines and we maintain regular contact with its staff and management on all aspects of operations We support the nomination because we are confident they will continue and enhance their innovative and progressive practices of returning the land to a near natural self-sustaining staterdquo CMJ
FIRST NATIONS and MININGHUCKLEBERRY MINE
Material for Huckleberry Minersquos step-building program being delivered to the site by helicopter
Huckleberryindd 19 2016-01-12 1141 AM
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FIRST NATIONS COMPANY PROVIDES VITAL ROADBUILDING SERVICES
TO REMOTE COMMUNITIESStaff Report
REWARDSROADto
Creeindd 20 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 21
FIRST NATIONS and MINING
K imesskanemenow is a Cree word that means ldquoThis is our Roadrdquo a fitting name for the winter road management company that is owned and operated by four northern First Nations Attawapiskat Fort
Albany Kashechewan and Moose Cree Their company Kimesskanemenow Corporation (also
known as K Corp) was founded in 2001 and for the past 15 years has been responsible for building and maintaining the Western James Bay Winter Road (JBWR) which starts in Moosonee and travels 312km up the western coast of James Bay connecting the communities of Fort Albany and Kashechewan and eventually ending at the Attawapiskat First Nation
The road is a lifeline to the remote areas in the James Bay Lowlands of Northern Ontario and without it existing and future development of this part of the country would not be possible
In fact itrsquos thanks to the road that K Corp helped build that companies like De Beers Canada are in the north
As most people know De Beers Canada made international headlines when it built the Victor Mine in 2006 (the first dia-mond mine in Ontario at a cost of about $1 billion) approxi-mately 90km west of the coastal community of Attawapiskat First Nation
Since the open-pit mine began production in 2008 with an annual tonne processing capacity of about 27 million tonnes and an annual carat production capacity of 600000 carats it has proven to be a key to Northern Ontario development and its communities
With an estimated mine life to 2018 the Victor Minersquos ener-gy and equipment needs will continue for at least two more years and according to K Corp cannot be met without the JBWR
Air transport is prohibitively expensive so the winter road is considered by far the most affordable way to supply the remote mine with the necessary 450 loads of cargo and 10 to 11 million litres of diesel fuel that it consumes each year
But the Victor Mine is not the only site that requires a reliable supply of goods and services Similar transportation challenges also face other remote northern First Nations communities that need to truck goods and fuel via seasonal winter roads
With the exception of Moose Cree First Nation which has a railway line to Cochrane air travel is the only transportation available year-round for the three other First Nations which for most community residents is prohibitively expensive
Thanks again to the JBWR it provides a critical socio-eco-nomic tie between the communities as well as a significant source of employment and to keep relationship going Kimesskanemenow Corporation and De Beers Canada have entered into a productive partnership
In 2004 the two parties signed a Winter Road Agreement which was re-negotiated in 2014 Under the agreement De Beers pays the bulk of the costs of the roadrsquos construction and maintenance costs while the balance of the costs are provided by the Provincial and Federal governments
Kimesskanemenow Corporation is guided by three central priorities Building capacity in its communities ensuring that its
member communities receive maximum benefits and mainte-nance of traditional culture which naturally includes environ-mental protection
The company also ensures that money from building and main-taining the road stays in the hands of local First Nation members
To do this the road is constructed and maintained entirely by local community members either as direct employees or through local contractors This has required developing capacity which the company has done through training and education programs
The practical effect of these guiding principals is that during the winter months roughly 200 individuals work on the road helping ensure that the road brings economic benefits to individ-uals families and communities
For many seasonal employment gained through constructing and maintaining the winter road is the only consistently avail-able work in the community Furthermore dividends from the company go back to the hands of the communities to be used as they see fit
Finally Kimesskanemenow Corporation donates to commu-nity-based initiatives that will benefit the communities with each of the four communities allotted an annual amount
Reflecting the corporationrsquos central values the money is used to fund initiatives that benefit youth the environment or main-tain traditional ways of living
One example of the programs that the corporation helps fund is CreeFest a celebration of Cree culture that is held annually in the Mushkegowuk communities
The company also funds the Edward W Chilton scholarship at Northern College in honour of the late Ed Chilton the com-panyrsquos first president The scholarship is awarded to community members to further their education
K Corprsquos list of smaller grants available online include many community and cultural programs that maintain the vitality of all these communities
Kimesskanemenow Corporation maintains an important piece of infrastructure that benefits the communities and allows for the ongoing operation of the Victor Diamond Mine As a cooperative venture the corporation has proven itself to be invaluable to both the communities and the mining company CMJ
Thanks to the efforts of K Corp the Western James Bay Winter Road provides access to the remote areas of Northern Ontario
Creeindd 21 2016-01-12 1052 AM
22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
WHERE WE STANDSERIOUS QUESTIONS DESERVE SOME SERIOUS ANSWERS Staff Report
I trsquos been just over a year since the Native Womenrsquos Association of Canada (NWAC) received funding from Aboriginal Affairs and Northern Development Canada (AANDC) to identify and ask questions about the barriers
indigenous women face and secondly to get direct and honest answers as to what are the realistic opportunities for them in the mining industry
Basically as the headline says they want to know where they stand insofar as their positions within the mining industry are concerned
The questions NWAC put on the table at a recent forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development dealt with two perspectives the first looked into resource development corporations and sought to understand what these corporations knew about aboriginal women and the second was from aboriginal women and how they viewed the mining industry with regards to economic devel-opment and employment opportunities
The forum was attended by an impressive gathering of female indigenous leaders and representatives from the resource devel-opment sector A full list of the participants is featured in the adjacent box
The intent of the engagementdiscussion session was to initi-ate a constructive dialogue amongst the participants with the overall goal of
s increasing the labour market participation of indigenous women in the resource development sector
s ensuring indigenous womenrsquos voices are heard in the devel-opment of these projects
s sharing of information on the industry and
s discussing the various opportunities and barriers facing indigenous women who wish to work in the industry
A DISTINGUISHED PANEL OF WOMEN ATTEND OTTAWA FORUM
Siobhan Dooley Hatch EngineeringGrant Goddard New Gold Inc (Rainy River Project)Karina Kesserwan Kesserwan (Law ndash Strategy ndash Solutions)Stacey Jack New Gold Inc (Rainy River Project)Christopher Lefebvre Aramark CanadaMireille Pilotte New Millennium IronRachel Pineault Detour Gold CorporationKate Rafter Employment and Social Development CanadaLouise Reid-Schloen Hydro OttawaJamie Saulnier Running Deer ResourcesNancy Veal Resolute Forest ProductsMarilyn Capreol Shawanaga First NationPamela Eyles BC Native Womenrsquos AssociationSusan Forth Shawanaga First NationElize Hartley Ontario Native Womenrsquos AssociationMarian Horne Yukon Aboriginal Womenrsquos CouncilNoreen McAteer Alberta Aboriginal Womenrsquos SocietyVerna Polson Quebec Native Women IncTori-Lynn Wanotch Saskatchewan Aboriginal Womenrsquos Circle CorpBeverly Blanchard Native Womenrsquos Association of CanadaSydney Ducharme Native Womenrsquos Association of CanadaClaudette Dumont-Smith Native Womenrsquos Association of CanadaDan Peters Native Womenrsquos Association of CanadaMerv McLeod McLeod-Wood Associates IncNancy Wood McLeod-Wood Associates Inc
Beverly Blanchard (standing) of the Native Womenrsquos Association of Canada addresses delegates attending a forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development
Women in Miningindd 22 2016-01-12 1053 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 23
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
andor economic opportunitiesFor example when impact benefit agreements (IBAs) are
completed they tend to be locally focused and may not consider indigenous women that do not reside in the community or indigenous individuals who are not members of the particular community
From the indigenous womenrsquos perspective at the forum it was noted that indigenous womenrsquos opinions on the resource devel-opment sector were varied and divergent Like most things in life there were some women who are in favour of the mining industry and there are some who are against it
Many who are against the sector perceived it to be counter to the traditional role of indigenous women as water-keepers and caretakers of Mother Earth but on the other hand research found that there was also a significant percentage of indigenous women who were ambivalent towards the industry
Due to length and detail of the forum (from which this article is based) the information has been drastically reduced to fit the space
For complete details and a copy of the full Bridging the Gap Aboriginal Women and Resource Development Report please contact Beverly Blanchard Strategic Policy Partnership and Planning NWAC Ottawa bblanchardnwacca CMJ
INDIGENOUS WOMEN and MINING
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Women in Miningindd 23 2016-01-12 1053 AM
24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
A s probably many of you know times are tough right now Commodity prices are slumping across the board affected by an overall slowing global economy that is being felt throughout Canada
But even during a stubborn downturn in global demand for many minerals and metals itrsquos no time to get down on mining because mining never goes away
Minerals and metals are the very foundation of virtually all of the goods we depend on in our daily lives The world will con-tinue to need mining and Canada can and should continue to be an important place where mining happens
A Look at Market ConditionsSo first how bad is the market
Global economic growth has been volatile in recent years Every time the Bank of Canada the IMF World Bank or others make growth projections it seems they amend them a few months later and always downwards With few exceptions the global economy is not doing well at all
The key economy for the mining sector is China which today consumes almost 50 per cent of the worldrsquos minerals and metals And Chinarsquos growth rate has been slowing along with growth rates in other emerging markets like Brazil Mexico and several Asian and African countries that are also falling
The one major exception is India whose growth is around 75 per cent and with its 13 billion people is seen as the next China in terms of minerals and metals consumption as the coun-try begins to rapidly industrialize
A Bedrock of the Canadian EconomyEven in a slump miningrsquos contribution to Canada is enormous
Despite some job losses at some operations mining and min-eral processing are directly employing more than 375000 Canadians including well over 10000 Indigenous Canadians paying the highest average industrial wage in the country Mining remains proportionally the largest employer of indige-nous Canadians
Mining accounts for roughly 20 per cent of the overall value of Canadian exports valued at nearly $90 billion
Nationally we pay an average of $38 billion annually in corporate taxes and royalties to federal provincial and territorial governments
Mining companies are also paying significant royalties to indig-enous communities across the country indirectly through govern-ment resource revenue sharing and in some cases directly
Wersquore also supporting the second largest mining-supply sector in the world More than 3700 companies provide a wide spec-trum of services to the Canadian mining industry with an increasing number of these being indigenous-owned businesses
A major challenge facing mining in Canadarsquos north today is its lack of infrastructure The north is our industryrsquos future but the territories and the northern parts of our provinces lack criti-cal infrastructuremdashroads electricity ports railwaysmdashto service mines and get products to market
This lack of infrastructure is felt by communities many of them indigenous located in the north
According to the Mining Association of Canadarsquos (MAC)
MINING AND INDIGENOUS PEOPLES CANADArsquoS FUTURE By Pierre Gratton
Delegates attending the 23rd Annual Conference of the Canadian Aboriginal Minerals Association in Vancouver listen to talks during the three-day event
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to
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ey S
ande
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hoto
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hy
Macindd 24 2016-01-12 1054 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 25
FIRST NATIONS and MINING
research it costs about 2 to 25 times as much to build and operate a gold and base metal mine in northern Canada off grid than in the south
We should be looking at ways to level the playing field in the north where infrastructure is lacking Canada needs a strategic collaboration involving industry and governments federal pro-vincial territorial and Indigenous to get this nation-building infrastructure in place
This can be done by increasing government investment in new infrastructure or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good
Additionally there is the issue of indigenous rights and title and how this affects the project certainty
Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and if necessary accommo-dated for activities on traditional indigenous territories affects project timelines and certainty
Connected to this is the concept of social license which in general terms defines the support earned by proponents to pro-ceed with and operate their project
The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects
That is a very complex issue The Supreme Court of Canada in its recent decision on the
Tsilhqotrsquoin First Nationrsquos claim recognized indigenous title a first in Canadian law
It also provided clear guidance on the criteria needed to demonstrate title and on the rights and obligations that flow from that in the process also identifying where title was found not to exist
It is a significant decision that provides us all with much more clarity going forward
But back to the question of the vetoThe Court clearly recognizes that in some circumstances the
right to title can be limited by the Crown So there is no abso-lute veto under Canadian law even in the case where title has been proven
But for the Crown to place limits on indigenous title it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead ndash a very significant test
At its core the decision continues a balancing act between empowering and limiting the authority of both indigenous peo-ples and governments The Court was very wise
So what does this mean for proponents There is the law and then there is reality No proponent
wants or should want to build a project that is unwelcome or opposed by local communities This is quite frankly an unsus-tainable option and one best avoided And most communities are open to the opportunities mining brings and increasingly so
Letrsquos look at reality in a different way
Today there are more than 250 agreements between mining companies and indigenous communities across the country It is decidedly rare that projects proceed without impact benefit or other such agreements concluded
These agreements which have matured with time and experi-ence provide significant local benefits and assurances including
Commitments on business procurement and often assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide
Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight
Support for skills training and mentoringDirect economic or financial benefitsSome of these agreements are transforming communities in
very significant waysNewgoldrsquos New Afton project in Kamloops is one such exam-
ple The diamond mines in the NWT are others as is Voiseyrsquos Bay We are seeing high levels of indigenous participation as high as 60 per cent in the case of Voiseyrsquos Bay increasing levels of post-secondary education and significantly improved eco-nomic and social outcomes
Nonetheless it is undeniable that the negotiation of these agreements takes time Trust must be built between the parties and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the pro-posed mine prior to it proceeding
Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association Photo by Tracey Sanders Photography
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to
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ey S
ande
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Macindd 25 2016-01-12 1054 AM
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
AME BCindd 27 2016-01-12 110 PM
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Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Nfld Reportindd 30 2016-01-12 1055 AM
Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
PROFESSIONAL DIRECTORYA
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Professional Directoryindd 33 2016-01-12 1056 AM
W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
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UNEARTHING TRENDS
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DukeAdindd 36 2016-01-12 1058 AM
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T he Truth and Reconciliation Commissionrsquos six-vol-ume 23-million-word final report was issued on December 15 2015 It not only contains stories from survivors of residential schools but a set of 10 guid-
ing principles and 94 recommendations or Calls to Action While the federal provincial and territorial governments
must act upon the majority of the 94 recommendations there are also recommendations for all sectors of society including the churches media arts academia and industry
For example the churches now have less than 90 days before issuing a joint statement by March 31 2016 on how they will implement the spiritual and religious components of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP)
The churches must also reject the concepts ndash such as ldquoterra nullisrdquo and the Doctrine of Discovery -- used by the church and state to assert sovereignty over Indigenous peoples and their lands
However I must point out that First Nations do not expect industry to atone for the sins of the past But we do however expect to be treated as equals and as the rightful owners of the land
Mining companies in Canada must recognize and acknowl-edge the era of Reconciliation as common place in all of its dealings with First Nations as it relates to mining exploration development extraction and remediation This also includes training and educating management and staff on First Nation history culture human rights and anti-racism
Here are some key points to consider s The Truth and Reconciliation process is becoming an institu-
tion in Canada that will inspire and influence positive approaches to relationships between Canada and its First Peoples
s Implementing the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) and respecting Treaties is a major focus within the TRC Calls for Action
s Business and industry in all Canadian sectors are being prompted by the TRC Report to become aware of the report and make efforts to build bridges This will close the divide between First Nations and Industry that was created as a
result of ignorance of history of Canadarsquos Indian Residential School past
s First Nations deep connection to the land is evident in lan-guage culture and world view ndash this is a key focus in many of the calls for action
s The respect and responsibilities that First Nation peoples have for the land is an important element to the process of Reconciliation that is now being recognized by federal juris-diction As noted in the 2015 Speech from the Throne the environmental assessment process will soon become formal-ized adding First Nations to the decision-making process as it pertains to the protection of the environment
s Benefits to First Nations regarding mining development are also a key factor in reconciliation The era of sealing a deal solely with an IBA (Impact Benefit Agreement) is a thing of the past First Nations seek to take on their roles as govern-ments beneficiaries and providers for their people
s The lsquoReconciliation Lensrsquo can be a way for industry to create stronger relations avoid conflicts build strong business partner-ships and help achieve collective prosperity with First Nations In conclusion here are four key messages that sum up the
outcomes from acting upon Reconciliation and forming a new relationship with our Peoples 1 Reconciliation can be a benefit to building strong mining
partnerships with First Nations2 Reconciliation as a policy approach for mining companies
will expedite relationship-building beyond most conflicts that arise out of resisting First Nation history and Cultural competence
3 The cost benefit to a Reconciliation approach in the mining industry is invaluable
4 Reconciliation in Canadian mining can cultivate a social con-sciousness that could define the industry as a 21st century legacy maker
I look forward to continued dialogue with the mining indus-try as we work together on making 2016 a breakthrough year for positive change Together we will build a better more inclusive Canada for our children and future generations CMJ
By Ontario Regional Chief Isadore Day Wiindawtegowinini
Mining must includeTruth amp Reconciliation
FIRST NATIONS
JANUARY 2016 CANADIAN MINING JOURNAL | 7
First Nationsindd 7 2016-01-12 1043 AM
8 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
NMENTENVIROTHE
Pho
to
Thin
ksto
ckc
om
THE WORLD AGREES ENOUGH IS ENOUGHBy Russell Noble
FN Introindd 8 2016-01-12 1044 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 9
NMENTENVIROMother Nature canrsquot take it much longer
E ver since John Cabot landed in Newfoundland in 1497 and started trekking westward into the unknown exploration and later development has left its mark on The Environment
In fact itrsquos left more than a mark itrsquos scarred the earth forev-er thanks to an unquenchable thirst for discovery but like it or not the world wouldnrsquot be what it is today if not for yesterdayrsquos adventurers
Regardless of how appreciative we are to John Cabot and The Vikings before him Mother Nature has taken the brunt of their quests through the loss of trees the displacement of wildlife polluted waterways and often the disappearance of fish and most recently in the news air quality because of toxic emissions resulting in climate changes
In just over 500 years the world has gone from pristine to polluted and it wasnrsquot until recently when the ldquoWorld Leaders Unanimously Agreedrdquo at the United Nationsrsquo Climate Summit in Paris France that everyone became more aware of the fact that the world has had enough it canrsquot take any more
And thatrsquos when The Environment started receiving the worldwide attention it deserves
ldquoAnd itrsquos about timerdquo says The Assembly of First Nations of
Canada and the 634 bands it represent across the country because thatrsquos what indigenous people from coast-to-coast-coast want mosthellip a clean safe and bountiful place to live and work
As one delegate attending the 23rd Annual Canadian Aboriginal Minerals Associationrsquos meeting in Vancouver said late last year ldquoWersquore the canaries in the coal mines wersquore out there to warnrdquo
Philosophical yes straightforward no question but more-over it was a sincere and insightful message that Federal Indigenous Affairs Minister Carolyn Bennett later echoed by saying ldquoThere is every evidence Canadarsquos Aboriginal Peoples are indeed on the front lines of climate changerdquo
As already mentioned concern for the well being of The Environment is a centuries-old topic for discussion and when you look at the photo on these pages itrsquos hard to understand how mankind can do what itrsquos doing to endanger such perfection
But it is and doing so at such an alarming rate that no matter what the 197 world leaders agreed to in Paris last year scenes like this are being threatened around the world every day and unless we take The Environment seriously future generations will have only photographic images of the lsquoWay We Werersquo
Thankfully both the First Nations and the Canadian Mining Industry are two groups working on improving the lsquoWay We Arersquo so that future generations donrsquot have to look back on refer-ence material to see how things used to be
Stories on the following pages take a closer look at First Nations and Mining Relations and how theyrsquore working in har-mony and in the best interest of everyone and everything involved CMJ
FIRST NATIONS and MINING
FN Introindd 9 2016-01-12 1044 AM
NWT INDIGENOUS JUNIOR MINER ANTES UP IN ITS AGGRESSIVE LEAP INTO OWNERSHIP IN MINING ECONOMY
By Northern Correspondent Bill Braden
BOLD amp BRAVE
10 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
T wo years ago the Dene of the NWT bold-ly jumped into the dragonrsquos jaw and launched their own mining company
The targets significant polymetallic potential near Great Bear Lake and dia-monds near the Ekati and Snap Lake mines
The vision be more than a source of labour and supplier of services to other miners They want to be
their own stand-alone producer among the first in Canada to pursue indigenous mine ownership
Wait a minute Arenrsquot First Nations usually railing against resource development the constant thorn in miningrsquos side And in the face of NWTrsquos gnarly record as a high-risk mining envi-ronment with dwindling exploration and labyrinthine regula-tions what is driving a home-grown indigenous company to do this in the first place
Aerial photo of the mill and camp at Terra Silver Mine abandoned near the south shore of Great Bear Lake since 1985 Photo courtesy of DEMCo LP
Bradenindd 10 2016-01-12 1138 AM
ldquoThe main thing is people want to participate and take ownership Itrsquos coming from the simple statements that have been made at the Dene Nation assemblies for yearsrdquo says Darrell Beaulieu the President and CEO of Denendeh Investments Incorporated (DII) and its latest ven-ture DEMCo Ltd
ldquoNo one ever said we are against business or development We said we want to be participants in development meaningful participantsrdquo
To a considerable extent that has indeed been the case in the NWT Beaulieu points to the prosperous part-nerships among more than 60 NWT indigenous businesses and diamond giants De Beers Dominion and Rio Tinto
Between 1996 and 2011 $42 bil-lion or 33 per cent of their northern spend was with indigenous companies and almost 9500 person years of employment were filled by indigenous workers in that period about 25 per cent of the total labour quantum
But he wanted to go beyond the jobs and servicesupply deals and take the ambitious jump to the equity level The current slump in mining activity and eroding values on existing properties gave momentum to Beaulieursquos plan to create DEMCo in the spring of 2013
ldquoSo the timing to pick up properties andor junior mining companies is upon usrdquo said DIIrsquos website at the time
JANUARY 2016 CANADIAN MINING JOURNAL | 11
FIRST NATIONS and MINING
Darrell Beaulieu CEO of DEMCo LP and this yearrsquos winner of the Skookum Jim Award from PDAC for outstanding achievement and contribution to mining by an aboriginal group or individual
Bradenindd 11 2016-01-12 1138 AM
12 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It continued on a note of high optimism ldquoThe silver lining to present and initiate a Denendeh exploration and mining compa-ny at this time may help create momentum for fundamental change in First Nation participation in resource development in the Northwest Territories and Canadardquo
The soft-spoken Beaulieu 58 is an Akaitcho Dene born and raised in Yellowknife who has earned numerous accolades for his leadership The most recent is the 2016 Skookum Jim Award from the Prospectors and Developers Association of Canada acknowledging significant achievement and contribution to mining by an indigenous group or individual
Hersquos is no stranger to indigenous and northern corporate governance Hersquos a three-time Chief of the Yellowknives First Nation and has held directorships with Northland Utilities the NWT Business Development and Investment Corporation and numerous industry associations
And hersquos no stranger to mining either as one of his first jobs was with Noranda Exploration doing EM surveys mapping prospecting claim staking and general exploration work
Beaulieu has been an influential advocate for Dene invest-ment through the parent group Denendeh Investments Limited Partnership an alliance of 27 First Nations communi-ties across the NWT It boasts a diverse portfolio including oil and gas drilling services electric utilities communications real estate and now exploration and eventually mining
Optimistic StartTo get DEMCo set up Beaulieu hired Yellowknife prospector
Trevor Teed into the shop as exploration vice president Teed brought with him a hunch hersquod been plugging away at for almost two decades the potential for a new discovery in the Camsell River region southeast of Great Bear Lake directly under four historic silver producers that operated from the 1960s to 1985
rdquoI suggested to him that the potential for IOCG (iron oxide-copper-gold) is what attracted me to it not silverrdquo says Teed ldquoDarrell agreed and despite the initial doubt of two of our three contract geologists our initial thoughts have been proven and there is IOCG at Camsell Riverrdquo
ldquoFirst it was kind of a desktop jobrdquo says Beaulieu ldquoThe data was all over the place We had to go to the United Sates Alberta BC the Geoscience office here in Yellowknife personal homes and at site too it was amazing where all the data ended up after 30 yearsrdquo
They resampled thousands of metres of decades-old core at site (that saved millions of exploration dollars) The results first disclosed in late 2014 proved out their early optimism
ldquoBack in the 70s they were only looking for silver We looked at the core and did some more prospecting and we found that hey therersquos a lot of gold there Whatrsquos more after our first field season was confirmation therersquos a huge magnetic body there also It looks like we have an IOCG depositrdquo
Beaulieu is too savvy to get excited at this point but polymet-alic IOCG deposits (Australiarsquos mammoth Olympic Dam is one) can be truly massive The discovery of the zone estimated roughly at some seven by 16 kilometres in size was first announced in late 2014
Teed says he had taken his hunch to other miners but credits Beaulieu with the vision and the belief to carry it forward His investigation so far has uncovered an extensive magnetic zone under the old silver digs
ldquoIt is a significant event I think that when the rest of Canada catches up to what we have wersquore going to see significant explo-ration again in the areasrdquo predicts Teed
That significance is backed up by mapping and geophysical
Noel Michel of Lutsel Krsquoe takes a break during a prospecting trip near Great Bear Lake Photo courtesy of DEMCo LP
DEMCo Exploration Vice-president Trevor Teed CEO Darrell Beaulieu and COO Margaret Gorman billbradenphoto
Bradenindd 12 2016-01-12 1138 AM
work carried out by the Geological Survey of Canada and the NWT Geological Survey over the past decade
Geologist Scott Cairns Manager of Bedrock Mapping and Mineral Deposits at the NTGSrsquos Yellowknife office says the historic production of silver and uranium is indicative of larger polymetallic IOCG deposits in the Great Bear magmat-ic zone
ldquoThey are definitely in a high mineral potential area thererdquo says Cairns adding that DEMCorsquos claims are at the north end of that zone while Fortune Mineralrsquos NICO project about 200km to the south is on its southern edge
Cairns says federal GSC geologists have recently completed a large study of alterations that can help identify IOCGs ldquoSo therersquos an enormous volume of work of geophysical characterisa-tions ways to track down where these potentially valuable deposits might be hiddenrdquo he says
DEMCorsquos IOCG discovery has not sparked any new rush of interest in the region But on a territory-wide basis says Cairns the number of inquiries website and office visits to his library and data bases has been spiking in the past few months
ldquoI think what wersquore seeing is that while itrsquos difficult to fund boots-on-the-ground exploration companies are doing their homework right now and will be using that when conditions improverdquo
In The GameAs of late December 2015 DEMCo was fully engaged in plan-ning the 2016 field program which Beaulieu hopes will include airborne geophysical work as well as more ground sampling They will spin off another subsidiary Camsell River Minerals Ltd to carry the project
But just like any other junior the team will be out there looking for private cash during one of the metal marketrsquos deepest and most prolonged slumps
And predictably thatrsquos not the only hurdle The claim block is within an overlapping boundary of both the Tlicho and Sahtu land claim regions
The four old mines on the claim block are among dozens across the NWT deemed for rehabilitation by the federal govern-ment There is an existing airstrip but land access would largely be on the historic Denison Ice Road from Behchoko first opened in the 1960s but dormant for 30 years
Yet another layer is working with the NWT Government as it gets used to managing the mines portfolio after its transfer from Ottawa to the NWT in April of 2013
And because DEMCorsquos parent corporation is governed by an alliance of all NWTrsquos First Nations - and itrsquos their money thatrsquos at risk - Beaulieu also has to satisfy a board that isnrsquot all that familiar with being on the investor side of the mining equation
Was it a hard sell to get his board on side in the first place No says Beaulieu pointing to DIIrsquos investment of about $2
million in cash and time to date ldquoThe hard sell is going to be finding the money to add value without diluting too muchrdquo
He says hersquoll be walking the floors at the Vancouver Cordilleran Roundup and Torontorsquos PDAC in 2016 promoting DEMCo
The Camsell project is where DEMCo is now fully focused but it is also invested in the NWTrsquos prolific diamond fields
In the Lac de Gras region east of the Ekati diamond mine the Fin claim block hosts known diamondiferous kimberlites while the Jen block has six known geophysical targets that have not yet been drilled
The Jaedenz block sandwiched between the Gahcho Kue and Snap Lake mines was explored and drilled by both De Beers and Winspear in the 1990s
JANUARY 2016 CANADIAN MINING JOURNAL | 13
Yellowknife-born Trevor Teed prospector and DEMCo VP of Exploration at the Camsell River properties Photo courtesy of DEMCo LP
Among the available resources combed over by DEMCo were these teetering core racks some dating back decades Photo courtesy of DEMCo LP
Bradenindd 13 2016-01-12 1138 AM
No work was done during the 2015 season and the company has not yet announced whether it will commit anything this year
An Indigenous AdvantageDoes being an Aboriginal-owned venture mean DEMCo will get a better reception from investors or an easier ride through the Northrsquos rocky regulatory regime
ldquoWe havenrsquot really pushed itrdquo says Beaulieu ldquoWersquore focussed on doing our own thing for now It takes time to grasp and understand what is it you have [Wersquore ask-ing] the same type of questions that any junior asks wearing the same boots same gloves We know itrsquos a high-risk business but itrsquos a high reward too Whoever is in there has really got to manage and yoursquove got to be able to sustain your own neck In terms of the regulatory regime that is an independent process we respect it and expect to be treated like everyone elserdquo
In a February 2015 interview with the business magazine Corporate Knights he did allow that having the Dene communities at his own board table gives him a home-court advantage
ldquoI think community engagement is our competitive edge And that edge is available because we are a Northern Dene-owned com-
14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Ground-level (above) and aerial (opposite page) of mill and camp at Terra Silver Mine near Great Bear Lake
Bradenindd 14 2016-01-12 1138 AM
pany And wersquore operating in a territory where indigenous people have a significant influence on our activityrdquo he said
Don Bubar as President and CEO of Avalon Rare Metals Inc and in previous roles with the PDAC is a passionate advocate for indigenous inclusion in Canadarsquos mining sector He believes that future mineral exploration in northern Canada will be led by indig-enous businesses
ldquoIt is natural that this participation would progress from a pas-sive one as a service provider to a more active one as an owner of a mineral development business with title to active projects Darrell Beaulieu and DEMCo are providing the leadership for the Dene Nation in going down this pathrdquo said Bubar in an email
ldquoPart of the challenge the industry faces is simply creating more public awareness of the importance of the industry to the northern economy especially for aboriginal communities Eco-activists have been successful in demonizing the industry in the North DEMCo has a key role to play in changing the perception that mineral exploration and development creates only unwanted environmental impacts without creating significant economic benefits for north-ernersrdquo CMJ
JANUARY 2016 CANADIAN MINING JOURNAL | 15
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FIRST NATIONS and MINING
Bradenindd 15 2016-01-12 1138 AM
COMMUNITY EFFORT HELPSSOLVE FISHWAY PROBLEMBy Russell Noble
PARTNERSHIPA WINNING
16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Shannon Haizimsque Chief Operating Officer of the Yinka Dene Economic Limited Partnership the commercial business arm of the Wetrsquosuwetrsquoen First Nations at the Huckleberry Mine site Adjacent photo shows a series of steps lined with geotextiles and anchored with rock fill as part of the minersquos Fish Compensation Plan
Huckleberryindd 16 2016-01-12 1052 AM
Almost everybody associates the name ldquoHuckleberryrdquo with Mark Twainrsquos Huckleberry Finn and his comrade Tom Sawyer but in the mining community Huckleberry is also the name of a Canadian mine that has been in production in northwestern British Columbia
since October 1997 Huckleberry Mines Ltd is an active open-pit coppermolyb-
denum mine located approximately 100km south of Houston BC Production rates (in 2014) were 34 million pounds of copper 2202 ounces of gold and 183218 ounces of silver and like many mines today itrsquos owned by a consortium of companies under one name Huckleberry Mines Ltd (HML) of Vancouver
The mine is owned and operated by Huckleberry Mines Ltd which in turn is owned 50 per cent by Imperial Metals Corporation of Vancouver and 50 per cent by a Japanese consor-tium including Mitsubishi Materials Corporation Dowa Mining Co Ltd and Furukawa Co
Partnering with First NationsSince 2013 Huckleberry Mines Ltd has signed communication amp partnership agreements with five separate First Nations orga-nizations Wetrsquosuwetrsquoen First Nation Cheslatta Carrier Nation Office of Wetrsquosuwetrsquoen Nee Tahi Buhn Indian Band and Skin Tyee Nation
Marke Wong Manager of Environmental amp Community Affairs for Huckleberry Mines Ltd says ldquoThese types of agree-ments have been instrumental in the success of Huckleberry Mine Because of the open dialogue with Indigenous communi-ties we have generated better understanding among all parties and this has increased First Nations access to economic opportu-nities such as job training employment and service contracts and has provided Huckleberry with dedicated community part-ners and a strong reliable work force and able contractorsrdquo
JANUARY 2016 CANADIAN MINING JOURNAL | 17
FIRST NATIONS and MININGHUCKLEBERRY MINE
Huckleberryindd 17 2016-01-12 1052 AM
18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
For example Wong says Huckleberry works directly with the economic development arm of its partners to provide training jobs and developing on-call labour contracts including the Yinka Dene Economic Development Limited Partnership (YLP) (Wetrsquosuwetrsquoen First Nation) the Nootsenay Enterprises (Cheslatta Carrier Nation) the Hunustrsquo ot en Investment Corp (Nee Tahi Buhn Indian Band) and the Skin Tyee Nation
He says that in 2014 and 2015 the company spent more than 1200 hours of on-the-job training to students and interns from the Wetrsquosuwetrsquoen and Cheslatta Carrier First Nations who recently graduated from the Northwest Community Collegersquos School of Exploration and Mining Environmental Monitoring Assistant Program (EMAP) and other programs
In keeping with Huckleberryrsquos involvement with the commu-nity the company also supports the College of New Caledoniarsquos Mineral Processing Assistants Course by providing instructors on-site mill tours and job opportunities at the mine Several member of the Nee Tahi Buhn Indian Band have been working as on-call positions as environmental monitors and confined space guards in the mill Huckleberry staff regularly respond to community requests to attend speak and sponsor community events such as career days annual meetings mine tours and traditional community gatherings
ldquoDeveloping successful mining arrangements with Indigenous people isnrsquot only about technical astuteness itrsquos about relation-ships reconciliation and the balancing of interestsrdquo says Wong
Itrsquos obvious from these brief examples that Huckleberry Mines Ltd is taking its work with the First Nations seriously but itrsquos more than that
Mike Robertson Chief Policy Advisor Cheslatta Carrier Nation says ldquoIn 2005 the Cheslatta Carrier Nation challenged the mine of its commitment to sound environmental manage-ment During the subsequent 10 years Huckleberry manage-ment and staff committed to engage our people directly in planning and implementing a progressive reclamation program of old mining zone areas and in the development of new zones
Just like the re-vegetated dams and tailings sites our environ-mental relationship has blossomed toordquo
Chief Rene Skin Skin Tyee Nation added ldquoMarke Wong of Huckleberry Mines has participated in our Nationrsquos annual gath-erings including community open houses and cultural camps Hersquos engaged directly with our youth and elders for the past two years He has been diligent in keeping us informed of changes to the on-going miner operation and opportunities for our peoplerdquo
Managing Impacts and Restoring the LandLike all mining therersquos a certain impact to the natural environ-ment and following the closure of a mine there are permanent changes to the landscape The Huckleberry Mine is no exception
Conventional drilling blasting loading and hauling using a combination of electric drills and shovels diesel hydraulic exca-vators and both 100 and 150-ton diesel-powered haul trucks are used to process approximately 17000 tonnes of ore a day
Milling is accomplished by grinding the ore in a 975m diam-eter SAG mill and then through two ball mills The resulting slurry is processed by flotation to produce a concentrate of 27 per cent copper that is subsequently shipped by truck to the port at Stewart for storage and shipment to Japan
Tailings from the milling process is discharged into a tailings management facility and supernatant water is discharged to the aquatic environment through a pipeline to a submersed outfall and diffuser located in Tahtsa Reach part of a man-made hydro-power reservoir developed in the 1950s All water discharged falls within their provincial and federal permit limits
With this comes noise dust and all of the other factors asso-ciated with mining but as mentioned earlier Huckleberry Mines Ltd is aware of the situation and addresses them through its Environment and Community Affairs Program which includes a Fish Habitat Compensation Program
And itrsquos because of its efforts in this area that Huckleberry Mines Ltd recently received the 2014 BC Metal Mine Reclamation Award from the BC Technical Research Committee
Aerial photo of Huckleberry Mine located between Huckleberry Mountain and Tahtsa Reach
Huckleberryindd 18 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 19
on Reclamation (BCTRCR) and the Mining Association of BC (MABC) in recognition for outstanding practices in its fish habitat restoration program a program that actually increased the available fish habitat in the area of the mine as well as its successful relationship building efforts with First Nations
Even before the mine was built the company recognized that its minersquos footprint could have an impact on the available fisher-ies habitat in the area In particular ldquoCreek 4rdquo a known fish-bearing stream was expected to be impacted and so a plan was made to conduct some habitat enhancements in the area
Fisheries surveys conducted by Hatfield Consultants of North Vancouver identified nearby ldquoCreek Mrdquo which at the time was not a fish-bearing stream due to a naturally occurring barrier to fish ndashie a steep gradient reach that stopped any fish from reaching a headwater pond
Huckleberry Minersquos plan involved constructing a series of steps or weirs lined with geotextiles and anchored with rock fill These works were constructed by a team from Cariboo Divers from designs prepared by Hatfield Consultants
Subsequent fish surveys conducted between 2001 and 2011 showed initial success and that adult rainbow trout were present in the headwater pond and juveniles were present in the lower reaches
However subsequent surveys conducted between 2008 and 2011 indicated that the juvenile fish numbers decreased to record lows in 2011 The decline in fish numbers was attributed to failure of the weirs in the lower and middle fishways causing juveniles to become stranded in isolated pools and precluding adults from reaching the preferred spawning habitat between the lower and middle fishways
When initial monitoring of the remediated area in 2013 and 2014 was conducted Environmental Monitoring Assistants from the Yinka Dene Economic Limited Partnership and the Nootsenay Enterprises Ltd were called to assist in the evaluation of the stability of the constructed works as well as presence of fish and the structural integrity of the fishways have remained intact through high-flow periods with no erosion or undermin-ing of the weir structures
Cody Reid Deputy Chief amp Environmental Coordinator Nee Tahi Buhn Indian Band said ldquoThe design construction monitoring and maintenance of the Creek M fishway has led to an overall net increase in fish habitat in the area surrounding the mine in Tahtsa Reachrdquo
And David Belford Mineral and Natural Resources Liaison Officer Wetrsquosuwetrsquoen addedrdquo The HML Environmental team and participating consultants are to be commended on their proactive approach to reclaiming the fish habitat and to increas-ing that habitat within the mine footrdquo
During the 2013 fish survey 39 rainbow trout were captured the largest number of fish observed since 2008 These observa-tions were made even while construction of the middle reach fishways was ongoing
Marke Wong says that Huckleberryrsquos plans are to continue monitoring to confirm the effectiveness of the restoration work including hydraulic functioning physical stability and structural integrity fish distribution and net gain
From the operation of a mine in the mountains to the refur-bishing of a fishway in a local waterway Huckleberry Mines Ltd continues to show its appreciation and respect for the environment and the First Nations communities it works with in British Columbia
Perhaps the most important message for industry is that the example set by Huckleberry Mine and its First Nation commu-nity partners demonstrates that when parties begin to have meaningful dialogue and understanding develops on both sides then the path to cooperation and partnership is open
In the case of Huckleberry Mine this has led to the devel-opment of partnerships that have helped it expand its opera-tions and have help provide support during tough economic times
The nomination of Huckleberry Mines Ltd for the 2014 BC Metal Mine Reclamation Award came from its First Nation Partners because as Chief Karen Ogen said ldquoOur partnership with Huckleberry Mines has made a big difference in our small community Since the 2013 partnership agreement was signed our people have benefitted from jobs training and business opportunities Our experience with Huckleberry has been very positive and we have greatly appreciated Huckleberryrsquos efforts to engage with our community and to work with our business arm the Yinka Dene Economic Partnership The Wetrsquosuwetrsquoen First Nation is very pleased to nominate Huckleberry Mines for this awardrdquo
And lastly Mike Robertson added ldquo The Cheslatta Carrier Nation has been a successful Huckleberry Mines Limited con-tractor on a number of projects including a tailings dam We have our members employed by Huckleberry Mines and we maintain regular contact with its staff and management on all aspects of operations We support the nomination because we are confident they will continue and enhance their innovative and progressive practices of returning the land to a near natural self-sustaining staterdquo CMJ
FIRST NATIONS and MININGHUCKLEBERRY MINE
Material for Huckleberry Minersquos step-building program being delivered to the site by helicopter
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20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
FIRST NATIONS COMPANY PROVIDES VITAL ROADBUILDING SERVICES
TO REMOTE COMMUNITIESStaff Report
REWARDSROADto
Creeindd 20 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 21
FIRST NATIONS and MINING
K imesskanemenow is a Cree word that means ldquoThis is our Roadrdquo a fitting name for the winter road management company that is owned and operated by four northern First Nations Attawapiskat Fort
Albany Kashechewan and Moose Cree Their company Kimesskanemenow Corporation (also
known as K Corp) was founded in 2001 and for the past 15 years has been responsible for building and maintaining the Western James Bay Winter Road (JBWR) which starts in Moosonee and travels 312km up the western coast of James Bay connecting the communities of Fort Albany and Kashechewan and eventually ending at the Attawapiskat First Nation
The road is a lifeline to the remote areas in the James Bay Lowlands of Northern Ontario and without it existing and future development of this part of the country would not be possible
In fact itrsquos thanks to the road that K Corp helped build that companies like De Beers Canada are in the north
As most people know De Beers Canada made international headlines when it built the Victor Mine in 2006 (the first dia-mond mine in Ontario at a cost of about $1 billion) approxi-mately 90km west of the coastal community of Attawapiskat First Nation
Since the open-pit mine began production in 2008 with an annual tonne processing capacity of about 27 million tonnes and an annual carat production capacity of 600000 carats it has proven to be a key to Northern Ontario development and its communities
With an estimated mine life to 2018 the Victor Minersquos ener-gy and equipment needs will continue for at least two more years and according to K Corp cannot be met without the JBWR
Air transport is prohibitively expensive so the winter road is considered by far the most affordable way to supply the remote mine with the necessary 450 loads of cargo and 10 to 11 million litres of diesel fuel that it consumes each year
But the Victor Mine is not the only site that requires a reliable supply of goods and services Similar transportation challenges also face other remote northern First Nations communities that need to truck goods and fuel via seasonal winter roads
With the exception of Moose Cree First Nation which has a railway line to Cochrane air travel is the only transportation available year-round for the three other First Nations which for most community residents is prohibitively expensive
Thanks again to the JBWR it provides a critical socio-eco-nomic tie between the communities as well as a significant source of employment and to keep relationship going Kimesskanemenow Corporation and De Beers Canada have entered into a productive partnership
In 2004 the two parties signed a Winter Road Agreement which was re-negotiated in 2014 Under the agreement De Beers pays the bulk of the costs of the roadrsquos construction and maintenance costs while the balance of the costs are provided by the Provincial and Federal governments
Kimesskanemenow Corporation is guided by three central priorities Building capacity in its communities ensuring that its
member communities receive maximum benefits and mainte-nance of traditional culture which naturally includes environ-mental protection
The company also ensures that money from building and main-taining the road stays in the hands of local First Nation members
To do this the road is constructed and maintained entirely by local community members either as direct employees or through local contractors This has required developing capacity which the company has done through training and education programs
The practical effect of these guiding principals is that during the winter months roughly 200 individuals work on the road helping ensure that the road brings economic benefits to individ-uals families and communities
For many seasonal employment gained through constructing and maintaining the winter road is the only consistently avail-able work in the community Furthermore dividends from the company go back to the hands of the communities to be used as they see fit
Finally Kimesskanemenow Corporation donates to commu-nity-based initiatives that will benefit the communities with each of the four communities allotted an annual amount
Reflecting the corporationrsquos central values the money is used to fund initiatives that benefit youth the environment or main-tain traditional ways of living
One example of the programs that the corporation helps fund is CreeFest a celebration of Cree culture that is held annually in the Mushkegowuk communities
The company also funds the Edward W Chilton scholarship at Northern College in honour of the late Ed Chilton the com-panyrsquos first president The scholarship is awarded to community members to further their education
K Corprsquos list of smaller grants available online include many community and cultural programs that maintain the vitality of all these communities
Kimesskanemenow Corporation maintains an important piece of infrastructure that benefits the communities and allows for the ongoing operation of the Victor Diamond Mine As a cooperative venture the corporation has proven itself to be invaluable to both the communities and the mining company CMJ
Thanks to the efforts of K Corp the Western James Bay Winter Road provides access to the remote areas of Northern Ontario
Creeindd 21 2016-01-12 1052 AM
22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
WHERE WE STANDSERIOUS QUESTIONS DESERVE SOME SERIOUS ANSWERS Staff Report
I trsquos been just over a year since the Native Womenrsquos Association of Canada (NWAC) received funding from Aboriginal Affairs and Northern Development Canada (AANDC) to identify and ask questions about the barriers
indigenous women face and secondly to get direct and honest answers as to what are the realistic opportunities for them in the mining industry
Basically as the headline says they want to know where they stand insofar as their positions within the mining industry are concerned
The questions NWAC put on the table at a recent forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development dealt with two perspectives the first looked into resource development corporations and sought to understand what these corporations knew about aboriginal women and the second was from aboriginal women and how they viewed the mining industry with regards to economic devel-opment and employment opportunities
The forum was attended by an impressive gathering of female indigenous leaders and representatives from the resource devel-opment sector A full list of the participants is featured in the adjacent box
The intent of the engagementdiscussion session was to initi-ate a constructive dialogue amongst the participants with the overall goal of
s increasing the labour market participation of indigenous women in the resource development sector
s ensuring indigenous womenrsquos voices are heard in the devel-opment of these projects
s sharing of information on the industry and
s discussing the various opportunities and barriers facing indigenous women who wish to work in the industry
A DISTINGUISHED PANEL OF WOMEN ATTEND OTTAWA FORUM
Siobhan Dooley Hatch EngineeringGrant Goddard New Gold Inc (Rainy River Project)Karina Kesserwan Kesserwan (Law ndash Strategy ndash Solutions)Stacey Jack New Gold Inc (Rainy River Project)Christopher Lefebvre Aramark CanadaMireille Pilotte New Millennium IronRachel Pineault Detour Gold CorporationKate Rafter Employment and Social Development CanadaLouise Reid-Schloen Hydro OttawaJamie Saulnier Running Deer ResourcesNancy Veal Resolute Forest ProductsMarilyn Capreol Shawanaga First NationPamela Eyles BC Native Womenrsquos AssociationSusan Forth Shawanaga First NationElize Hartley Ontario Native Womenrsquos AssociationMarian Horne Yukon Aboriginal Womenrsquos CouncilNoreen McAteer Alberta Aboriginal Womenrsquos SocietyVerna Polson Quebec Native Women IncTori-Lynn Wanotch Saskatchewan Aboriginal Womenrsquos Circle CorpBeverly Blanchard Native Womenrsquos Association of CanadaSydney Ducharme Native Womenrsquos Association of CanadaClaudette Dumont-Smith Native Womenrsquos Association of CanadaDan Peters Native Womenrsquos Association of CanadaMerv McLeod McLeod-Wood Associates IncNancy Wood McLeod-Wood Associates Inc
Beverly Blanchard (standing) of the Native Womenrsquos Association of Canada addresses delegates attending a forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development
Women in Miningindd 22 2016-01-12 1053 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 23
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
andor economic opportunitiesFor example when impact benefit agreements (IBAs) are
completed they tend to be locally focused and may not consider indigenous women that do not reside in the community or indigenous individuals who are not members of the particular community
From the indigenous womenrsquos perspective at the forum it was noted that indigenous womenrsquos opinions on the resource devel-opment sector were varied and divergent Like most things in life there were some women who are in favour of the mining industry and there are some who are against it
Many who are against the sector perceived it to be counter to the traditional role of indigenous women as water-keepers and caretakers of Mother Earth but on the other hand research found that there was also a significant percentage of indigenous women who were ambivalent towards the industry
Due to length and detail of the forum (from which this article is based) the information has been drastically reduced to fit the space
For complete details and a copy of the full Bridging the Gap Aboriginal Women and Resource Development Report please contact Beverly Blanchard Strategic Policy Partnership and Planning NWAC Ottawa bblanchardnwacca CMJ
INDIGENOUS WOMEN and MINING
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d e P e n d a B L e P r o J e c t d e v e L o P M e n t
Women in Miningindd 23 2016-01-12 1053 AM
24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
A s probably many of you know times are tough right now Commodity prices are slumping across the board affected by an overall slowing global economy that is being felt throughout Canada
But even during a stubborn downturn in global demand for many minerals and metals itrsquos no time to get down on mining because mining never goes away
Minerals and metals are the very foundation of virtually all of the goods we depend on in our daily lives The world will con-tinue to need mining and Canada can and should continue to be an important place where mining happens
A Look at Market ConditionsSo first how bad is the market
Global economic growth has been volatile in recent years Every time the Bank of Canada the IMF World Bank or others make growth projections it seems they amend them a few months later and always downwards With few exceptions the global economy is not doing well at all
The key economy for the mining sector is China which today consumes almost 50 per cent of the worldrsquos minerals and metals And Chinarsquos growth rate has been slowing along with growth rates in other emerging markets like Brazil Mexico and several Asian and African countries that are also falling
The one major exception is India whose growth is around 75 per cent and with its 13 billion people is seen as the next China in terms of minerals and metals consumption as the coun-try begins to rapidly industrialize
A Bedrock of the Canadian EconomyEven in a slump miningrsquos contribution to Canada is enormous
Despite some job losses at some operations mining and min-eral processing are directly employing more than 375000 Canadians including well over 10000 Indigenous Canadians paying the highest average industrial wage in the country Mining remains proportionally the largest employer of indige-nous Canadians
Mining accounts for roughly 20 per cent of the overall value of Canadian exports valued at nearly $90 billion
Nationally we pay an average of $38 billion annually in corporate taxes and royalties to federal provincial and territorial governments
Mining companies are also paying significant royalties to indig-enous communities across the country indirectly through govern-ment resource revenue sharing and in some cases directly
Wersquore also supporting the second largest mining-supply sector in the world More than 3700 companies provide a wide spec-trum of services to the Canadian mining industry with an increasing number of these being indigenous-owned businesses
A major challenge facing mining in Canadarsquos north today is its lack of infrastructure The north is our industryrsquos future but the territories and the northern parts of our provinces lack criti-cal infrastructuremdashroads electricity ports railwaysmdashto service mines and get products to market
This lack of infrastructure is felt by communities many of them indigenous located in the north
According to the Mining Association of Canadarsquos (MAC)
MINING AND INDIGENOUS PEOPLES CANADArsquoS FUTURE By Pierre Gratton
Delegates attending the 23rd Annual Conference of the Canadian Aboriginal Minerals Association in Vancouver listen to talks during the three-day event
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 24 2016-01-12 1054 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 25
FIRST NATIONS and MINING
research it costs about 2 to 25 times as much to build and operate a gold and base metal mine in northern Canada off grid than in the south
We should be looking at ways to level the playing field in the north where infrastructure is lacking Canada needs a strategic collaboration involving industry and governments federal pro-vincial territorial and Indigenous to get this nation-building infrastructure in place
This can be done by increasing government investment in new infrastructure or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good
Additionally there is the issue of indigenous rights and title and how this affects the project certainty
Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and if necessary accommo-dated for activities on traditional indigenous territories affects project timelines and certainty
Connected to this is the concept of social license which in general terms defines the support earned by proponents to pro-ceed with and operate their project
The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects
That is a very complex issue The Supreme Court of Canada in its recent decision on the
Tsilhqotrsquoin First Nationrsquos claim recognized indigenous title a first in Canadian law
It also provided clear guidance on the criteria needed to demonstrate title and on the rights and obligations that flow from that in the process also identifying where title was found not to exist
It is a significant decision that provides us all with much more clarity going forward
But back to the question of the vetoThe Court clearly recognizes that in some circumstances the
right to title can be limited by the Crown So there is no abso-lute veto under Canadian law even in the case where title has been proven
But for the Crown to place limits on indigenous title it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead ndash a very significant test
At its core the decision continues a balancing act between empowering and limiting the authority of both indigenous peo-ples and governments The Court was very wise
So what does this mean for proponents There is the law and then there is reality No proponent
wants or should want to build a project that is unwelcome or opposed by local communities This is quite frankly an unsus-tainable option and one best avoided And most communities are open to the opportunities mining brings and increasingly so
Letrsquos look at reality in a different way
Today there are more than 250 agreements between mining companies and indigenous communities across the country It is decidedly rare that projects proceed without impact benefit or other such agreements concluded
These agreements which have matured with time and experi-ence provide significant local benefits and assurances including
Commitments on business procurement and often assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide
Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight
Support for skills training and mentoringDirect economic or financial benefitsSome of these agreements are transforming communities in
very significant waysNewgoldrsquos New Afton project in Kamloops is one such exam-
ple The diamond mines in the NWT are others as is Voiseyrsquos Bay We are seeing high levels of indigenous participation as high as 60 per cent in the case of Voiseyrsquos Bay increasing levels of post-secondary education and significantly improved eco-nomic and social outcomes
Nonetheless it is undeniable that the negotiation of these agreements takes time Trust must be built between the parties and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the pro-posed mine prior to it proceeding
Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association Photo by Tracey Sanders Photography
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 25 2016-01-12 1054 AM
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
AME BCindd 27 2016-01-12 110 PM
28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Nfld Reportindd 30 2016-01-12 1055 AM
Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
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Professional Directoryindd 33 2016-01-12 1056 AM
W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
- 002
- 003
- 004
- 005
- 006
- 007
- 008-009
- 010-015
- 016-019
- 020-021
- 022-023
- 024-026
- 027
- 028-030
- 031
- 032
- 033
- 034
- 035
- 036
-
8 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
NMENTENVIROTHE
Pho
to
Thin
ksto
ckc
om
THE WORLD AGREES ENOUGH IS ENOUGHBy Russell Noble
FN Introindd 8 2016-01-12 1044 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 9
NMENTENVIROMother Nature canrsquot take it much longer
E ver since John Cabot landed in Newfoundland in 1497 and started trekking westward into the unknown exploration and later development has left its mark on The Environment
In fact itrsquos left more than a mark itrsquos scarred the earth forev-er thanks to an unquenchable thirst for discovery but like it or not the world wouldnrsquot be what it is today if not for yesterdayrsquos adventurers
Regardless of how appreciative we are to John Cabot and The Vikings before him Mother Nature has taken the brunt of their quests through the loss of trees the displacement of wildlife polluted waterways and often the disappearance of fish and most recently in the news air quality because of toxic emissions resulting in climate changes
In just over 500 years the world has gone from pristine to polluted and it wasnrsquot until recently when the ldquoWorld Leaders Unanimously Agreedrdquo at the United Nationsrsquo Climate Summit in Paris France that everyone became more aware of the fact that the world has had enough it canrsquot take any more
And thatrsquos when The Environment started receiving the worldwide attention it deserves
ldquoAnd itrsquos about timerdquo says The Assembly of First Nations of
Canada and the 634 bands it represent across the country because thatrsquos what indigenous people from coast-to-coast-coast want mosthellip a clean safe and bountiful place to live and work
As one delegate attending the 23rd Annual Canadian Aboriginal Minerals Associationrsquos meeting in Vancouver said late last year ldquoWersquore the canaries in the coal mines wersquore out there to warnrdquo
Philosophical yes straightforward no question but more-over it was a sincere and insightful message that Federal Indigenous Affairs Minister Carolyn Bennett later echoed by saying ldquoThere is every evidence Canadarsquos Aboriginal Peoples are indeed on the front lines of climate changerdquo
As already mentioned concern for the well being of The Environment is a centuries-old topic for discussion and when you look at the photo on these pages itrsquos hard to understand how mankind can do what itrsquos doing to endanger such perfection
But it is and doing so at such an alarming rate that no matter what the 197 world leaders agreed to in Paris last year scenes like this are being threatened around the world every day and unless we take The Environment seriously future generations will have only photographic images of the lsquoWay We Werersquo
Thankfully both the First Nations and the Canadian Mining Industry are two groups working on improving the lsquoWay We Arersquo so that future generations donrsquot have to look back on refer-ence material to see how things used to be
Stories on the following pages take a closer look at First Nations and Mining Relations and how theyrsquore working in har-mony and in the best interest of everyone and everything involved CMJ
FIRST NATIONS and MINING
FN Introindd 9 2016-01-12 1044 AM
NWT INDIGENOUS JUNIOR MINER ANTES UP IN ITS AGGRESSIVE LEAP INTO OWNERSHIP IN MINING ECONOMY
By Northern Correspondent Bill Braden
BOLD amp BRAVE
10 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
T wo years ago the Dene of the NWT bold-ly jumped into the dragonrsquos jaw and launched their own mining company
The targets significant polymetallic potential near Great Bear Lake and dia-monds near the Ekati and Snap Lake mines
The vision be more than a source of labour and supplier of services to other miners They want to be
their own stand-alone producer among the first in Canada to pursue indigenous mine ownership
Wait a minute Arenrsquot First Nations usually railing against resource development the constant thorn in miningrsquos side And in the face of NWTrsquos gnarly record as a high-risk mining envi-ronment with dwindling exploration and labyrinthine regula-tions what is driving a home-grown indigenous company to do this in the first place
Aerial photo of the mill and camp at Terra Silver Mine abandoned near the south shore of Great Bear Lake since 1985 Photo courtesy of DEMCo LP
Bradenindd 10 2016-01-12 1138 AM
ldquoThe main thing is people want to participate and take ownership Itrsquos coming from the simple statements that have been made at the Dene Nation assemblies for yearsrdquo says Darrell Beaulieu the President and CEO of Denendeh Investments Incorporated (DII) and its latest ven-ture DEMCo Ltd
ldquoNo one ever said we are against business or development We said we want to be participants in development meaningful participantsrdquo
To a considerable extent that has indeed been the case in the NWT Beaulieu points to the prosperous part-nerships among more than 60 NWT indigenous businesses and diamond giants De Beers Dominion and Rio Tinto
Between 1996 and 2011 $42 bil-lion or 33 per cent of their northern spend was with indigenous companies and almost 9500 person years of employment were filled by indigenous workers in that period about 25 per cent of the total labour quantum
But he wanted to go beyond the jobs and servicesupply deals and take the ambitious jump to the equity level The current slump in mining activity and eroding values on existing properties gave momentum to Beaulieursquos plan to create DEMCo in the spring of 2013
ldquoSo the timing to pick up properties andor junior mining companies is upon usrdquo said DIIrsquos website at the time
JANUARY 2016 CANADIAN MINING JOURNAL | 11
FIRST NATIONS and MINING
Darrell Beaulieu CEO of DEMCo LP and this yearrsquos winner of the Skookum Jim Award from PDAC for outstanding achievement and contribution to mining by an aboriginal group or individual
Bradenindd 11 2016-01-12 1138 AM
12 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It continued on a note of high optimism ldquoThe silver lining to present and initiate a Denendeh exploration and mining compa-ny at this time may help create momentum for fundamental change in First Nation participation in resource development in the Northwest Territories and Canadardquo
The soft-spoken Beaulieu 58 is an Akaitcho Dene born and raised in Yellowknife who has earned numerous accolades for his leadership The most recent is the 2016 Skookum Jim Award from the Prospectors and Developers Association of Canada acknowledging significant achievement and contribution to mining by an indigenous group or individual
Hersquos is no stranger to indigenous and northern corporate governance Hersquos a three-time Chief of the Yellowknives First Nation and has held directorships with Northland Utilities the NWT Business Development and Investment Corporation and numerous industry associations
And hersquos no stranger to mining either as one of his first jobs was with Noranda Exploration doing EM surveys mapping prospecting claim staking and general exploration work
Beaulieu has been an influential advocate for Dene invest-ment through the parent group Denendeh Investments Limited Partnership an alliance of 27 First Nations communi-ties across the NWT It boasts a diverse portfolio including oil and gas drilling services electric utilities communications real estate and now exploration and eventually mining
Optimistic StartTo get DEMCo set up Beaulieu hired Yellowknife prospector
Trevor Teed into the shop as exploration vice president Teed brought with him a hunch hersquod been plugging away at for almost two decades the potential for a new discovery in the Camsell River region southeast of Great Bear Lake directly under four historic silver producers that operated from the 1960s to 1985
rdquoI suggested to him that the potential for IOCG (iron oxide-copper-gold) is what attracted me to it not silverrdquo says Teed ldquoDarrell agreed and despite the initial doubt of two of our three contract geologists our initial thoughts have been proven and there is IOCG at Camsell Riverrdquo
ldquoFirst it was kind of a desktop jobrdquo says Beaulieu ldquoThe data was all over the place We had to go to the United Sates Alberta BC the Geoscience office here in Yellowknife personal homes and at site too it was amazing where all the data ended up after 30 yearsrdquo
They resampled thousands of metres of decades-old core at site (that saved millions of exploration dollars) The results first disclosed in late 2014 proved out their early optimism
ldquoBack in the 70s they were only looking for silver We looked at the core and did some more prospecting and we found that hey therersquos a lot of gold there Whatrsquos more after our first field season was confirmation therersquos a huge magnetic body there also It looks like we have an IOCG depositrdquo
Beaulieu is too savvy to get excited at this point but polymet-alic IOCG deposits (Australiarsquos mammoth Olympic Dam is one) can be truly massive The discovery of the zone estimated roughly at some seven by 16 kilometres in size was first announced in late 2014
Teed says he had taken his hunch to other miners but credits Beaulieu with the vision and the belief to carry it forward His investigation so far has uncovered an extensive magnetic zone under the old silver digs
ldquoIt is a significant event I think that when the rest of Canada catches up to what we have wersquore going to see significant explo-ration again in the areasrdquo predicts Teed
That significance is backed up by mapping and geophysical
Noel Michel of Lutsel Krsquoe takes a break during a prospecting trip near Great Bear Lake Photo courtesy of DEMCo LP
DEMCo Exploration Vice-president Trevor Teed CEO Darrell Beaulieu and COO Margaret Gorman billbradenphoto
Bradenindd 12 2016-01-12 1138 AM
work carried out by the Geological Survey of Canada and the NWT Geological Survey over the past decade
Geologist Scott Cairns Manager of Bedrock Mapping and Mineral Deposits at the NTGSrsquos Yellowknife office says the historic production of silver and uranium is indicative of larger polymetallic IOCG deposits in the Great Bear magmat-ic zone
ldquoThey are definitely in a high mineral potential area thererdquo says Cairns adding that DEMCorsquos claims are at the north end of that zone while Fortune Mineralrsquos NICO project about 200km to the south is on its southern edge
Cairns says federal GSC geologists have recently completed a large study of alterations that can help identify IOCGs ldquoSo therersquos an enormous volume of work of geophysical characterisa-tions ways to track down where these potentially valuable deposits might be hiddenrdquo he says
DEMCorsquos IOCG discovery has not sparked any new rush of interest in the region But on a territory-wide basis says Cairns the number of inquiries website and office visits to his library and data bases has been spiking in the past few months
ldquoI think what wersquore seeing is that while itrsquos difficult to fund boots-on-the-ground exploration companies are doing their homework right now and will be using that when conditions improverdquo
In The GameAs of late December 2015 DEMCo was fully engaged in plan-ning the 2016 field program which Beaulieu hopes will include airborne geophysical work as well as more ground sampling They will spin off another subsidiary Camsell River Minerals Ltd to carry the project
But just like any other junior the team will be out there looking for private cash during one of the metal marketrsquos deepest and most prolonged slumps
And predictably thatrsquos not the only hurdle The claim block is within an overlapping boundary of both the Tlicho and Sahtu land claim regions
The four old mines on the claim block are among dozens across the NWT deemed for rehabilitation by the federal govern-ment There is an existing airstrip but land access would largely be on the historic Denison Ice Road from Behchoko first opened in the 1960s but dormant for 30 years
Yet another layer is working with the NWT Government as it gets used to managing the mines portfolio after its transfer from Ottawa to the NWT in April of 2013
And because DEMCorsquos parent corporation is governed by an alliance of all NWTrsquos First Nations - and itrsquos their money thatrsquos at risk - Beaulieu also has to satisfy a board that isnrsquot all that familiar with being on the investor side of the mining equation
Was it a hard sell to get his board on side in the first place No says Beaulieu pointing to DIIrsquos investment of about $2
million in cash and time to date ldquoThe hard sell is going to be finding the money to add value without diluting too muchrdquo
He says hersquoll be walking the floors at the Vancouver Cordilleran Roundup and Torontorsquos PDAC in 2016 promoting DEMCo
The Camsell project is where DEMCo is now fully focused but it is also invested in the NWTrsquos prolific diamond fields
In the Lac de Gras region east of the Ekati diamond mine the Fin claim block hosts known diamondiferous kimberlites while the Jen block has six known geophysical targets that have not yet been drilled
The Jaedenz block sandwiched between the Gahcho Kue and Snap Lake mines was explored and drilled by both De Beers and Winspear in the 1990s
JANUARY 2016 CANADIAN MINING JOURNAL | 13
Yellowknife-born Trevor Teed prospector and DEMCo VP of Exploration at the Camsell River properties Photo courtesy of DEMCo LP
Among the available resources combed over by DEMCo were these teetering core racks some dating back decades Photo courtesy of DEMCo LP
Bradenindd 13 2016-01-12 1138 AM
No work was done during the 2015 season and the company has not yet announced whether it will commit anything this year
An Indigenous AdvantageDoes being an Aboriginal-owned venture mean DEMCo will get a better reception from investors or an easier ride through the Northrsquos rocky regulatory regime
ldquoWe havenrsquot really pushed itrdquo says Beaulieu ldquoWersquore focussed on doing our own thing for now It takes time to grasp and understand what is it you have [Wersquore ask-ing] the same type of questions that any junior asks wearing the same boots same gloves We know itrsquos a high-risk business but itrsquos a high reward too Whoever is in there has really got to manage and yoursquove got to be able to sustain your own neck In terms of the regulatory regime that is an independent process we respect it and expect to be treated like everyone elserdquo
In a February 2015 interview with the business magazine Corporate Knights he did allow that having the Dene communities at his own board table gives him a home-court advantage
ldquoI think community engagement is our competitive edge And that edge is available because we are a Northern Dene-owned com-
14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Ground-level (above) and aerial (opposite page) of mill and camp at Terra Silver Mine near Great Bear Lake
Bradenindd 14 2016-01-12 1138 AM
pany And wersquore operating in a territory where indigenous people have a significant influence on our activityrdquo he said
Don Bubar as President and CEO of Avalon Rare Metals Inc and in previous roles with the PDAC is a passionate advocate for indigenous inclusion in Canadarsquos mining sector He believes that future mineral exploration in northern Canada will be led by indig-enous businesses
ldquoIt is natural that this participation would progress from a pas-sive one as a service provider to a more active one as an owner of a mineral development business with title to active projects Darrell Beaulieu and DEMCo are providing the leadership for the Dene Nation in going down this pathrdquo said Bubar in an email
ldquoPart of the challenge the industry faces is simply creating more public awareness of the importance of the industry to the northern economy especially for aboriginal communities Eco-activists have been successful in demonizing the industry in the North DEMCo has a key role to play in changing the perception that mineral exploration and development creates only unwanted environmental impacts without creating significant economic benefits for north-ernersrdquo CMJ
JANUARY 2016 CANADIAN MINING JOURNAL | 15
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FIRST NATIONS and MINING
Bradenindd 15 2016-01-12 1138 AM
COMMUNITY EFFORT HELPSSOLVE FISHWAY PROBLEMBy Russell Noble
PARTNERSHIPA WINNING
16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Shannon Haizimsque Chief Operating Officer of the Yinka Dene Economic Limited Partnership the commercial business arm of the Wetrsquosuwetrsquoen First Nations at the Huckleberry Mine site Adjacent photo shows a series of steps lined with geotextiles and anchored with rock fill as part of the minersquos Fish Compensation Plan
Huckleberryindd 16 2016-01-12 1052 AM
Almost everybody associates the name ldquoHuckleberryrdquo with Mark Twainrsquos Huckleberry Finn and his comrade Tom Sawyer but in the mining community Huckleberry is also the name of a Canadian mine that has been in production in northwestern British Columbia
since October 1997 Huckleberry Mines Ltd is an active open-pit coppermolyb-
denum mine located approximately 100km south of Houston BC Production rates (in 2014) were 34 million pounds of copper 2202 ounces of gold and 183218 ounces of silver and like many mines today itrsquos owned by a consortium of companies under one name Huckleberry Mines Ltd (HML) of Vancouver
The mine is owned and operated by Huckleberry Mines Ltd which in turn is owned 50 per cent by Imperial Metals Corporation of Vancouver and 50 per cent by a Japanese consor-tium including Mitsubishi Materials Corporation Dowa Mining Co Ltd and Furukawa Co
Partnering with First NationsSince 2013 Huckleberry Mines Ltd has signed communication amp partnership agreements with five separate First Nations orga-nizations Wetrsquosuwetrsquoen First Nation Cheslatta Carrier Nation Office of Wetrsquosuwetrsquoen Nee Tahi Buhn Indian Band and Skin Tyee Nation
Marke Wong Manager of Environmental amp Community Affairs for Huckleberry Mines Ltd says ldquoThese types of agree-ments have been instrumental in the success of Huckleberry Mine Because of the open dialogue with Indigenous communi-ties we have generated better understanding among all parties and this has increased First Nations access to economic opportu-nities such as job training employment and service contracts and has provided Huckleberry with dedicated community part-ners and a strong reliable work force and able contractorsrdquo
JANUARY 2016 CANADIAN MINING JOURNAL | 17
FIRST NATIONS and MININGHUCKLEBERRY MINE
Huckleberryindd 17 2016-01-12 1052 AM
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For example Wong says Huckleberry works directly with the economic development arm of its partners to provide training jobs and developing on-call labour contracts including the Yinka Dene Economic Development Limited Partnership (YLP) (Wetrsquosuwetrsquoen First Nation) the Nootsenay Enterprises (Cheslatta Carrier Nation) the Hunustrsquo ot en Investment Corp (Nee Tahi Buhn Indian Band) and the Skin Tyee Nation
He says that in 2014 and 2015 the company spent more than 1200 hours of on-the-job training to students and interns from the Wetrsquosuwetrsquoen and Cheslatta Carrier First Nations who recently graduated from the Northwest Community Collegersquos School of Exploration and Mining Environmental Monitoring Assistant Program (EMAP) and other programs
In keeping with Huckleberryrsquos involvement with the commu-nity the company also supports the College of New Caledoniarsquos Mineral Processing Assistants Course by providing instructors on-site mill tours and job opportunities at the mine Several member of the Nee Tahi Buhn Indian Band have been working as on-call positions as environmental monitors and confined space guards in the mill Huckleberry staff regularly respond to community requests to attend speak and sponsor community events such as career days annual meetings mine tours and traditional community gatherings
ldquoDeveloping successful mining arrangements with Indigenous people isnrsquot only about technical astuteness itrsquos about relation-ships reconciliation and the balancing of interestsrdquo says Wong
Itrsquos obvious from these brief examples that Huckleberry Mines Ltd is taking its work with the First Nations seriously but itrsquos more than that
Mike Robertson Chief Policy Advisor Cheslatta Carrier Nation says ldquoIn 2005 the Cheslatta Carrier Nation challenged the mine of its commitment to sound environmental manage-ment During the subsequent 10 years Huckleberry manage-ment and staff committed to engage our people directly in planning and implementing a progressive reclamation program of old mining zone areas and in the development of new zones
Just like the re-vegetated dams and tailings sites our environ-mental relationship has blossomed toordquo
Chief Rene Skin Skin Tyee Nation added ldquoMarke Wong of Huckleberry Mines has participated in our Nationrsquos annual gath-erings including community open houses and cultural camps Hersquos engaged directly with our youth and elders for the past two years He has been diligent in keeping us informed of changes to the on-going miner operation and opportunities for our peoplerdquo
Managing Impacts and Restoring the LandLike all mining therersquos a certain impact to the natural environ-ment and following the closure of a mine there are permanent changes to the landscape The Huckleberry Mine is no exception
Conventional drilling blasting loading and hauling using a combination of electric drills and shovels diesel hydraulic exca-vators and both 100 and 150-ton diesel-powered haul trucks are used to process approximately 17000 tonnes of ore a day
Milling is accomplished by grinding the ore in a 975m diam-eter SAG mill and then through two ball mills The resulting slurry is processed by flotation to produce a concentrate of 27 per cent copper that is subsequently shipped by truck to the port at Stewart for storage and shipment to Japan
Tailings from the milling process is discharged into a tailings management facility and supernatant water is discharged to the aquatic environment through a pipeline to a submersed outfall and diffuser located in Tahtsa Reach part of a man-made hydro-power reservoir developed in the 1950s All water discharged falls within their provincial and federal permit limits
With this comes noise dust and all of the other factors asso-ciated with mining but as mentioned earlier Huckleberry Mines Ltd is aware of the situation and addresses them through its Environment and Community Affairs Program which includes a Fish Habitat Compensation Program
And itrsquos because of its efforts in this area that Huckleberry Mines Ltd recently received the 2014 BC Metal Mine Reclamation Award from the BC Technical Research Committee
Aerial photo of Huckleberry Mine located between Huckleberry Mountain and Tahtsa Reach
Huckleberryindd 18 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 19
on Reclamation (BCTRCR) and the Mining Association of BC (MABC) in recognition for outstanding practices in its fish habitat restoration program a program that actually increased the available fish habitat in the area of the mine as well as its successful relationship building efforts with First Nations
Even before the mine was built the company recognized that its minersquos footprint could have an impact on the available fisher-ies habitat in the area In particular ldquoCreek 4rdquo a known fish-bearing stream was expected to be impacted and so a plan was made to conduct some habitat enhancements in the area
Fisheries surveys conducted by Hatfield Consultants of North Vancouver identified nearby ldquoCreek Mrdquo which at the time was not a fish-bearing stream due to a naturally occurring barrier to fish ndashie a steep gradient reach that stopped any fish from reaching a headwater pond
Huckleberry Minersquos plan involved constructing a series of steps or weirs lined with geotextiles and anchored with rock fill These works were constructed by a team from Cariboo Divers from designs prepared by Hatfield Consultants
Subsequent fish surveys conducted between 2001 and 2011 showed initial success and that adult rainbow trout were present in the headwater pond and juveniles were present in the lower reaches
However subsequent surveys conducted between 2008 and 2011 indicated that the juvenile fish numbers decreased to record lows in 2011 The decline in fish numbers was attributed to failure of the weirs in the lower and middle fishways causing juveniles to become stranded in isolated pools and precluding adults from reaching the preferred spawning habitat between the lower and middle fishways
When initial monitoring of the remediated area in 2013 and 2014 was conducted Environmental Monitoring Assistants from the Yinka Dene Economic Limited Partnership and the Nootsenay Enterprises Ltd were called to assist in the evaluation of the stability of the constructed works as well as presence of fish and the structural integrity of the fishways have remained intact through high-flow periods with no erosion or undermin-ing of the weir structures
Cody Reid Deputy Chief amp Environmental Coordinator Nee Tahi Buhn Indian Band said ldquoThe design construction monitoring and maintenance of the Creek M fishway has led to an overall net increase in fish habitat in the area surrounding the mine in Tahtsa Reachrdquo
And David Belford Mineral and Natural Resources Liaison Officer Wetrsquosuwetrsquoen addedrdquo The HML Environmental team and participating consultants are to be commended on their proactive approach to reclaiming the fish habitat and to increas-ing that habitat within the mine footrdquo
During the 2013 fish survey 39 rainbow trout were captured the largest number of fish observed since 2008 These observa-tions were made even while construction of the middle reach fishways was ongoing
Marke Wong says that Huckleberryrsquos plans are to continue monitoring to confirm the effectiveness of the restoration work including hydraulic functioning physical stability and structural integrity fish distribution and net gain
From the operation of a mine in the mountains to the refur-bishing of a fishway in a local waterway Huckleberry Mines Ltd continues to show its appreciation and respect for the environment and the First Nations communities it works with in British Columbia
Perhaps the most important message for industry is that the example set by Huckleberry Mine and its First Nation commu-nity partners demonstrates that when parties begin to have meaningful dialogue and understanding develops on both sides then the path to cooperation and partnership is open
In the case of Huckleberry Mine this has led to the devel-opment of partnerships that have helped it expand its opera-tions and have help provide support during tough economic times
The nomination of Huckleberry Mines Ltd for the 2014 BC Metal Mine Reclamation Award came from its First Nation Partners because as Chief Karen Ogen said ldquoOur partnership with Huckleberry Mines has made a big difference in our small community Since the 2013 partnership agreement was signed our people have benefitted from jobs training and business opportunities Our experience with Huckleberry has been very positive and we have greatly appreciated Huckleberryrsquos efforts to engage with our community and to work with our business arm the Yinka Dene Economic Partnership The Wetrsquosuwetrsquoen First Nation is very pleased to nominate Huckleberry Mines for this awardrdquo
And lastly Mike Robertson added ldquo The Cheslatta Carrier Nation has been a successful Huckleberry Mines Limited con-tractor on a number of projects including a tailings dam We have our members employed by Huckleberry Mines and we maintain regular contact with its staff and management on all aspects of operations We support the nomination because we are confident they will continue and enhance their innovative and progressive practices of returning the land to a near natural self-sustaining staterdquo CMJ
FIRST NATIONS and MININGHUCKLEBERRY MINE
Material for Huckleberry Minersquos step-building program being delivered to the site by helicopter
Huckleberryindd 19 2016-01-12 1141 AM
20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
FIRST NATIONS COMPANY PROVIDES VITAL ROADBUILDING SERVICES
TO REMOTE COMMUNITIESStaff Report
REWARDSROADto
Creeindd 20 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 21
FIRST NATIONS and MINING
K imesskanemenow is a Cree word that means ldquoThis is our Roadrdquo a fitting name for the winter road management company that is owned and operated by four northern First Nations Attawapiskat Fort
Albany Kashechewan and Moose Cree Their company Kimesskanemenow Corporation (also
known as K Corp) was founded in 2001 and for the past 15 years has been responsible for building and maintaining the Western James Bay Winter Road (JBWR) which starts in Moosonee and travels 312km up the western coast of James Bay connecting the communities of Fort Albany and Kashechewan and eventually ending at the Attawapiskat First Nation
The road is a lifeline to the remote areas in the James Bay Lowlands of Northern Ontario and without it existing and future development of this part of the country would not be possible
In fact itrsquos thanks to the road that K Corp helped build that companies like De Beers Canada are in the north
As most people know De Beers Canada made international headlines when it built the Victor Mine in 2006 (the first dia-mond mine in Ontario at a cost of about $1 billion) approxi-mately 90km west of the coastal community of Attawapiskat First Nation
Since the open-pit mine began production in 2008 with an annual tonne processing capacity of about 27 million tonnes and an annual carat production capacity of 600000 carats it has proven to be a key to Northern Ontario development and its communities
With an estimated mine life to 2018 the Victor Minersquos ener-gy and equipment needs will continue for at least two more years and according to K Corp cannot be met without the JBWR
Air transport is prohibitively expensive so the winter road is considered by far the most affordable way to supply the remote mine with the necessary 450 loads of cargo and 10 to 11 million litres of diesel fuel that it consumes each year
But the Victor Mine is not the only site that requires a reliable supply of goods and services Similar transportation challenges also face other remote northern First Nations communities that need to truck goods and fuel via seasonal winter roads
With the exception of Moose Cree First Nation which has a railway line to Cochrane air travel is the only transportation available year-round for the three other First Nations which for most community residents is prohibitively expensive
Thanks again to the JBWR it provides a critical socio-eco-nomic tie between the communities as well as a significant source of employment and to keep relationship going Kimesskanemenow Corporation and De Beers Canada have entered into a productive partnership
In 2004 the two parties signed a Winter Road Agreement which was re-negotiated in 2014 Under the agreement De Beers pays the bulk of the costs of the roadrsquos construction and maintenance costs while the balance of the costs are provided by the Provincial and Federal governments
Kimesskanemenow Corporation is guided by three central priorities Building capacity in its communities ensuring that its
member communities receive maximum benefits and mainte-nance of traditional culture which naturally includes environ-mental protection
The company also ensures that money from building and main-taining the road stays in the hands of local First Nation members
To do this the road is constructed and maintained entirely by local community members either as direct employees or through local contractors This has required developing capacity which the company has done through training and education programs
The practical effect of these guiding principals is that during the winter months roughly 200 individuals work on the road helping ensure that the road brings economic benefits to individ-uals families and communities
For many seasonal employment gained through constructing and maintaining the winter road is the only consistently avail-able work in the community Furthermore dividends from the company go back to the hands of the communities to be used as they see fit
Finally Kimesskanemenow Corporation donates to commu-nity-based initiatives that will benefit the communities with each of the four communities allotted an annual amount
Reflecting the corporationrsquos central values the money is used to fund initiatives that benefit youth the environment or main-tain traditional ways of living
One example of the programs that the corporation helps fund is CreeFest a celebration of Cree culture that is held annually in the Mushkegowuk communities
The company also funds the Edward W Chilton scholarship at Northern College in honour of the late Ed Chilton the com-panyrsquos first president The scholarship is awarded to community members to further their education
K Corprsquos list of smaller grants available online include many community and cultural programs that maintain the vitality of all these communities
Kimesskanemenow Corporation maintains an important piece of infrastructure that benefits the communities and allows for the ongoing operation of the Victor Diamond Mine As a cooperative venture the corporation has proven itself to be invaluable to both the communities and the mining company CMJ
Thanks to the efforts of K Corp the Western James Bay Winter Road provides access to the remote areas of Northern Ontario
Creeindd 21 2016-01-12 1052 AM
22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
WHERE WE STANDSERIOUS QUESTIONS DESERVE SOME SERIOUS ANSWERS Staff Report
I trsquos been just over a year since the Native Womenrsquos Association of Canada (NWAC) received funding from Aboriginal Affairs and Northern Development Canada (AANDC) to identify and ask questions about the barriers
indigenous women face and secondly to get direct and honest answers as to what are the realistic opportunities for them in the mining industry
Basically as the headline says they want to know where they stand insofar as their positions within the mining industry are concerned
The questions NWAC put on the table at a recent forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development dealt with two perspectives the first looked into resource development corporations and sought to understand what these corporations knew about aboriginal women and the second was from aboriginal women and how they viewed the mining industry with regards to economic devel-opment and employment opportunities
The forum was attended by an impressive gathering of female indigenous leaders and representatives from the resource devel-opment sector A full list of the participants is featured in the adjacent box
The intent of the engagementdiscussion session was to initi-ate a constructive dialogue amongst the participants with the overall goal of
s increasing the labour market participation of indigenous women in the resource development sector
s ensuring indigenous womenrsquos voices are heard in the devel-opment of these projects
s sharing of information on the industry and
s discussing the various opportunities and barriers facing indigenous women who wish to work in the industry
A DISTINGUISHED PANEL OF WOMEN ATTEND OTTAWA FORUM
Siobhan Dooley Hatch EngineeringGrant Goddard New Gold Inc (Rainy River Project)Karina Kesserwan Kesserwan (Law ndash Strategy ndash Solutions)Stacey Jack New Gold Inc (Rainy River Project)Christopher Lefebvre Aramark CanadaMireille Pilotte New Millennium IronRachel Pineault Detour Gold CorporationKate Rafter Employment and Social Development CanadaLouise Reid-Schloen Hydro OttawaJamie Saulnier Running Deer ResourcesNancy Veal Resolute Forest ProductsMarilyn Capreol Shawanaga First NationPamela Eyles BC Native Womenrsquos AssociationSusan Forth Shawanaga First NationElize Hartley Ontario Native Womenrsquos AssociationMarian Horne Yukon Aboriginal Womenrsquos CouncilNoreen McAteer Alberta Aboriginal Womenrsquos SocietyVerna Polson Quebec Native Women IncTori-Lynn Wanotch Saskatchewan Aboriginal Womenrsquos Circle CorpBeverly Blanchard Native Womenrsquos Association of CanadaSydney Ducharme Native Womenrsquos Association of CanadaClaudette Dumont-Smith Native Womenrsquos Association of CanadaDan Peters Native Womenrsquos Association of CanadaMerv McLeod McLeod-Wood Associates IncNancy Wood McLeod-Wood Associates Inc
Beverly Blanchard (standing) of the Native Womenrsquos Association of Canada addresses delegates attending a forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development
Women in Miningindd 22 2016-01-12 1053 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 23
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
andor economic opportunitiesFor example when impact benefit agreements (IBAs) are
completed they tend to be locally focused and may not consider indigenous women that do not reside in the community or indigenous individuals who are not members of the particular community
From the indigenous womenrsquos perspective at the forum it was noted that indigenous womenrsquos opinions on the resource devel-opment sector were varied and divergent Like most things in life there were some women who are in favour of the mining industry and there are some who are against it
Many who are against the sector perceived it to be counter to the traditional role of indigenous women as water-keepers and caretakers of Mother Earth but on the other hand research found that there was also a significant percentage of indigenous women who were ambivalent towards the industry
Due to length and detail of the forum (from which this article is based) the information has been drastically reduced to fit the space
For complete details and a copy of the full Bridging the Gap Aboriginal Women and Resource Development Report please contact Beverly Blanchard Strategic Policy Partnership and Planning NWAC Ottawa bblanchardnwacca CMJ
INDIGENOUS WOMEN and MINING
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Women in Miningindd 23 2016-01-12 1053 AM
24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
A s probably many of you know times are tough right now Commodity prices are slumping across the board affected by an overall slowing global economy that is being felt throughout Canada
But even during a stubborn downturn in global demand for many minerals and metals itrsquos no time to get down on mining because mining never goes away
Minerals and metals are the very foundation of virtually all of the goods we depend on in our daily lives The world will con-tinue to need mining and Canada can and should continue to be an important place where mining happens
A Look at Market ConditionsSo first how bad is the market
Global economic growth has been volatile in recent years Every time the Bank of Canada the IMF World Bank or others make growth projections it seems they amend them a few months later and always downwards With few exceptions the global economy is not doing well at all
The key economy for the mining sector is China which today consumes almost 50 per cent of the worldrsquos minerals and metals And Chinarsquos growth rate has been slowing along with growth rates in other emerging markets like Brazil Mexico and several Asian and African countries that are also falling
The one major exception is India whose growth is around 75 per cent and with its 13 billion people is seen as the next China in terms of minerals and metals consumption as the coun-try begins to rapidly industrialize
A Bedrock of the Canadian EconomyEven in a slump miningrsquos contribution to Canada is enormous
Despite some job losses at some operations mining and min-eral processing are directly employing more than 375000 Canadians including well over 10000 Indigenous Canadians paying the highest average industrial wage in the country Mining remains proportionally the largest employer of indige-nous Canadians
Mining accounts for roughly 20 per cent of the overall value of Canadian exports valued at nearly $90 billion
Nationally we pay an average of $38 billion annually in corporate taxes and royalties to federal provincial and territorial governments
Mining companies are also paying significant royalties to indig-enous communities across the country indirectly through govern-ment resource revenue sharing and in some cases directly
Wersquore also supporting the second largest mining-supply sector in the world More than 3700 companies provide a wide spec-trum of services to the Canadian mining industry with an increasing number of these being indigenous-owned businesses
A major challenge facing mining in Canadarsquos north today is its lack of infrastructure The north is our industryrsquos future but the territories and the northern parts of our provinces lack criti-cal infrastructuremdashroads electricity ports railwaysmdashto service mines and get products to market
This lack of infrastructure is felt by communities many of them indigenous located in the north
According to the Mining Association of Canadarsquos (MAC)
MINING AND INDIGENOUS PEOPLES CANADArsquoS FUTURE By Pierre Gratton
Delegates attending the 23rd Annual Conference of the Canadian Aboriginal Minerals Association in Vancouver listen to talks during the three-day event
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 24 2016-01-12 1054 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 25
FIRST NATIONS and MINING
research it costs about 2 to 25 times as much to build and operate a gold and base metal mine in northern Canada off grid than in the south
We should be looking at ways to level the playing field in the north where infrastructure is lacking Canada needs a strategic collaboration involving industry and governments federal pro-vincial territorial and Indigenous to get this nation-building infrastructure in place
This can be done by increasing government investment in new infrastructure or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good
Additionally there is the issue of indigenous rights and title and how this affects the project certainty
Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and if necessary accommo-dated for activities on traditional indigenous territories affects project timelines and certainty
Connected to this is the concept of social license which in general terms defines the support earned by proponents to pro-ceed with and operate their project
The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects
That is a very complex issue The Supreme Court of Canada in its recent decision on the
Tsilhqotrsquoin First Nationrsquos claim recognized indigenous title a first in Canadian law
It also provided clear guidance on the criteria needed to demonstrate title and on the rights and obligations that flow from that in the process also identifying where title was found not to exist
It is a significant decision that provides us all with much more clarity going forward
But back to the question of the vetoThe Court clearly recognizes that in some circumstances the
right to title can be limited by the Crown So there is no abso-lute veto under Canadian law even in the case where title has been proven
But for the Crown to place limits on indigenous title it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead ndash a very significant test
At its core the decision continues a balancing act between empowering and limiting the authority of both indigenous peo-ples and governments The Court was very wise
So what does this mean for proponents There is the law and then there is reality No proponent
wants or should want to build a project that is unwelcome or opposed by local communities This is quite frankly an unsus-tainable option and one best avoided And most communities are open to the opportunities mining brings and increasingly so
Letrsquos look at reality in a different way
Today there are more than 250 agreements between mining companies and indigenous communities across the country It is decidedly rare that projects proceed without impact benefit or other such agreements concluded
These agreements which have matured with time and experi-ence provide significant local benefits and assurances including
Commitments on business procurement and often assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide
Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight
Support for skills training and mentoringDirect economic or financial benefitsSome of these agreements are transforming communities in
very significant waysNewgoldrsquos New Afton project in Kamloops is one such exam-
ple The diamond mines in the NWT are others as is Voiseyrsquos Bay We are seeing high levels of indigenous participation as high as 60 per cent in the case of Voiseyrsquos Bay increasing levels of post-secondary education and significantly improved eco-nomic and social outcomes
Nonetheless it is undeniable that the negotiation of these agreements takes time Trust must be built between the parties and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the pro-posed mine prior to it proceeding
Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association Photo by Tracey Sanders Photography
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 25 2016-01-12 1054 AM
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
AME BCindd 27 2016-01-12 110 PM
28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Nfld Reportindd 30 2016-01-12 1055 AM
Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
PROFESSIONAL DIRECTORYA
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W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
- 002
- 003
- 004
- 005
- 006
- 007
- 008-009
- 010-015
- 016-019
- 020-021
- 022-023
- 024-026
- 027
- 028-030
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JANUARY 2016 CANADIAN MINING JOURNAL | 9
NMENTENVIROMother Nature canrsquot take it much longer
E ver since John Cabot landed in Newfoundland in 1497 and started trekking westward into the unknown exploration and later development has left its mark on The Environment
In fact itrsquos left more than a mark itrsquos scarred the earth forev-er thanks to an unquenchable thirst for discovery but like it or not the world wouldnrsquot be what it is today if not for yesterdayrsquos adventurers
Regardless of how appreciative we are to John Cabot and The Vikings before him Mother Nature has taken the brunt of their quests through the loss of trees the displacement of wildlife polluted waterways and often the disappearance of fish and most recently in the news air quality because of toxic emissions resulting in climate changes
In just over 500 years the world has gone from pristine to polluted and it wasnrsquot until recently when the ldquoWorld Leaders Unanimously Agreedrdquo at the United Nationsrsquo Climate Summit in Paris France that everyone became more aware of the fact that the world has had enough it canrsquot take any more
And thatrsquos when The Environment started receiving the worldwide attention it deserves
ldquoAnd itrsquos about timerdquo says The Assembly of First Nations of
Canada and the 634 bands it represent across the country because thatrsquos what indigenous people from coast-to-coast-coast want mosthellip a clean safe and bountiful place to live and work
As one delegate attending the 23rd Annual Canadian Aboriginal Minerals Associationrsquos meeting in Vancouver said late last year ldquoWersquore the canaries in the coal mines wersquore out there to warnrdquo
Philosophical yes straightforward no question but more-over it was a sincere and insightful message that Federal Indigenous Affairs Minister Carolyn Bennett later echoed by saying ldquoThere is every evidence Canadarsquos Aboriginal Peoples are indeed on the front lines of climate changerdquo
As already mentioned concern for the well being of The Environment is a centuries-old topic for discussion and when you look at the photo on these pages itrsquos hard to understand how mankind can do what itrsquos doing to endanger such perfection
But it is and doing so at such an alarming rate that no matter what the 197 world leaders agreed to in Paris last year scenes like this are being threatened around the world every day and unless we take The Environment seriously future generations will have only photographic images of the lsquoWay We Werersquo
Thankfully both the First Nations and the Canadian Mining Industry are two groups working on improving the lsquoWay We Arersquo so that future generations donrsquot have to look back on refer-ence material to see how things used to be
Stories on the following pages take a closer look at First Nations and Mining Relations and how theyrsquore working in har-mony and in the best interest of everyone and everything involved CMJ
FIRST NATIONS and MINING
FN Introindd 9 2016-01-12 1044 AM
NWT INDIGENOUS JUNIOR MINER ANTES UP IN ITS AGGRESSIVE LEAP INTO OWNERSHIP IN MINING ECONOMY
By Northern Correspondent Bill Braden
BOLD amp BRAVE
10 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
T wo years ago the Dene of the NWT bold-ly jumped into the dragonrsquos jaw and launched their own mining company
The targets significant polymetallic potential near Great Bear Lake and dia-monds near the Ekati and Snap Lake mines
The vision be more than a source of labour and supplier of services to other miners They want to be
their own stand-alone producer among the first in Canada to pursue indigenous mine ownership
Wait a minute Arenrsquot First Nations usually railing against resource development the constant thorn in miningrsquos side And in the face of NWTrsquos gnarly record as a high-risk mining envi-ronment with dwindling exploration and labyrinthine regula-tions what is driving a home-grown indigenous company to do this in the first place
Aerial photo of the mill and camp at Terra Silver Mine abandoned near the south shore of Great Bear Lake since 1985 Photo courtesy of DEMCo LP
Bradenindd 10 2016-01-12 1138 AM
ldquoThe main thing is people want to participate and take ownership Itrsquos coming from the simple statements that have been made at the Dene Nation assemblies for yearsrdquo says Darrell Beaulieu the President and CEO of Denendeh Investments Incorporated (DII) and its latest ven-ture DEMCo Ltd
ldquoNo one ever said we are against business or development We said we want to be participants in development meaningful participantsrdquo
To a considerable extent that has indeed been the case in the NWT Beaulieu points to the prosperous part-nerships among more than 60 NWT indigenous businesses and diamond giants De Beers Dominion and Rio Tinto
Between 1996 and 2011 $42 bil-lion or 33 per cent of their northern spend was with indigenous companies and almost 9500 person years of employment were filled by indigenous workers in that period about 25 per cent of the total labour quantum
But he wanted to go beyond the jobs and servicesupply deals and take the ambitious jump to the equity level The current slump in mining activity and eroding values on existing properties gave momentum to Beaulieursquos plan to create DEMCo in the spring of 2013
ldquoSo the timing to pick up properties andor junior mining companies is upon usrdquo said DIIrsquos website at the time
JANUARY 2016 CANADIAN MINING JOURNAL | 11
FIRST NATIONS and MINING
Darrell Beaulieu CEO of DEMCo LP and this yearrsquos winner of the Skookum Jim Award from PDAC for outstanding achievement and contribution to mining by an aboriginal group or individual
Bradenindd 11 2016-01-12 1138 AM
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It continued on a note of high optimism ldquoThe silver lining to present and initiate a Denendeh exploration and mining compa-ny at this time may help create momentum for fundamental change in First Nation participation in resource development in the Northwest Territories and Canadardquo
The soft-spoken Beaulieu 58 is an Akaitcho Dene born and raised in Yellowknife who has earned numerous accolades for his leadership The most recent is the 2016 Skookum Jim Award from the Prospectors and Developers Association of Canada acknowledging significant achievement and contribution to mining by an indigenous group or individual
Hersquos is no stranger to indigenous and northern corporate governance Hersquos a three-time Chief of the Yellowknives First Nation and has held directorships with Northland Utilities the NWT Business Development and Investment Corporation and numerous industry associations
And hersquos no stranger to mining either as one of his first jobs was with Noranda Exploration doing EM surveys mapping prospecting claim staking and general exploration work
Beaulieu has been an influential advocate for Dene invest-ment through the parent group Denendeh Investments Limited Partnership an alliance of 27 First Nations communi-ties across the NWT It boasts a diverse portfolio including oil and gas drilling services electric utilities communications real estate and now exploration and eventually mining
Optimistic StartTo get DEMCo set up Beaulieu hired Yellowknife prospector
Trevor Teed into the shop as exploration vice president Teed brought with him a hunch hersquod been plugging away at for almost two decades the potential for a new discovery in the Camsell River region southeast of Great Bear Lake directly under four historic silver producers that operated from the 1960s to 1985
rdquoI suggested to him that the potential for IOCG (iron oxide-copper-gold) is what attracted me to it not silverrdquo says Teed ldquoDarrell agreed and despite the initial doubt of two of our three contract geologists our initial thoughts have been proven and there is IOCG at Camsell Riverrdquo
ldquoFirst it was kind of a desktop jobrdquo says Beaulieu ldquoThe data was all over the place We had to go to the United Sates Alberta BC the Geoscience office here in Yellowknife personal homes and at site too it was amazing where all the data ended up after 30 yearsrdquo
They resampled thousands of metres of decades-old core at site (that saved millions of exploration dollars) The results first disclosed in late 2014 proved out their early optimism
ldquoBack in the 70s they were only looking for silver We looked at the core and did some more prospecting and we found that hey therersquos a lot of gold there Whatrsquos more after our first field season was confirmation therersquos a huge magnetic body there also It looks like we have an IOCG depositrdquo
Beaulieu is too savvy to get excited at this point but polymet-alic IOCG deposits (Australiarsquos mammoth Olympic Dam is one) can be truly massive The discovery of the zone estimated roughly at some seven by 16 kilometres in size was first announced in late 2014
Teed says he had taken his hunch to other miners but credits Beaulieu with the vision and the belief to carry it forward His investigation so far has uncovered an extensive magnetic zone under the old silver digs
ldquoIt is a significant event I think that when the rest of Canada catches up to what we have wersquore going to see significant explo-ration again in the areasrdquo predicts Teed
That significance is backed up by mapping and geophysical
Noel Michel of Lutsel Krsquoe takes a break during a prospecting trip near Great Bear Lake Photo courtesy of DEMCo LP
DEMCo Exploration Vice-president Trevor Teed CEO Darrell Beaulieu and COO Margaret Gorman billbradenphoto
Bradenindd 12 2016-01-12 1138 AM
work carried out by the Geological Survey of Canada and the NWT Geological Survey over the past decade
Geologist Scott Cairns Manager of Bedrock Mapping and Mineral Deposits at the NTGSrsquos Yellowknife office says the historic production of silver and uranium is indicative of larger polymetallic IOCG deposits in the Great Bear magmat-ic zone
ldquoThey are definitely in a high mineral potential area thererdquo says Cairns adding that DEMCorsquos claims are at the north end of that zone while Fortune Mineralrsquos NICO project about 200km to the south is on its southern edge
Cairns says federal GSC geologists have recently completed a large study of alterations that can help identify IOCGs ldquoSo therersquos an enormous volume of work of geophysical characterisa-tions ways to track down where these potentially valuable deposits might be hiddenrdquo he says
DEMCorsquos IOCG discovery has not sparked any new rush of interest in the region But on a territory-wide basis says Cairns the number of inquiries website and office visits to his library and data bases has been spiking in the past few months
ldquoI think what wersquore seeing is that while itrsquos difficult to fund boots-on-the-ground exploration companies are doing their homework right now and will be using that when conditions improverdquo
In The GameAs of late December 2015 DEMCo was fully engaged in plan-ning the 2016 field program which Beaulieu hopes will include airborne geophysical work as well as more ground sampling They will spin off another subsidiary Camsell River Minerals Ltd to carry the project
But just like any other junior the team will be out there looking for private cash during one of the metal marketrsquos deepest and most prolonged slumps
And predictably thatrsquos not the only hurdle The claim block is within an overlapping boundary of both the Tlicho and Sahtu land claim regions
The four old mines on the claim block are among dozens across the NWT deemed for rehabilitation by the federal govern-ment There is an existing airstrip but land access would largely be on the historic Denison Ice Road from Behchoko first opened in the 1960s but dormant for 30 years
Yet another layer is working with the NWT Government as it gets used to managing the mines portfolio after its transfer from Ottawa to the NWT in April of 2013
And because DEMCorsquos parent corporation is governed by an alliance of all NWTrsquos First Nations - and itrsquos their money thatrsquos at risk - Beaulieu also has to satisfy a board that isnrsquot all that familiar with being on the investor side of the mining equation
Was it a hard sell to get his board on side in the first place No says Beaulieu pointing to DIIrsquos investment of about $2
million in cash and time to date ldquoThe hard sell is going to be finding the money to add value without diluting too muchrdquo
He says hersquoll be walking the floors at the Vancouver Cordilleran Roundup and Torontorsquos PDAC in 2016 promoting DEMCo
The Camsell project is where DEMCo is now fully focused but it is also invested in the NWTrsquos prolific diamond fields
In the Lac de Gras region east of the Ekati diamond mine the Fin claim block hosts known diamondiferous kimberlites while the Jen block has six known geophysical targets that have not yet been drilled
The Jaedenz block sandwiched between the Gahcho Kue and Snap Lake mines was explored and drilled by both De Beers and Winspear in the 1990s
JANUARY 2016 CANADIAN MINING JOURNAL | 13
Yellowknife-born Trevor Teed prospector and DEMCo VP of Exploration at the Camsell River properties Photo courtesy of DEMCo LP
Among the available resources combed over by DEMCo were these teetering core racks some dating back decades Photo courtesy of DEMCo LP
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No work was done during the 2015 season and the company has not yet announced whether it will commit anything this year
An Indigenous AdvantageDoes being an Aboriginal-owned venture mean DEMCo will get a better reception from investors or an easier ride through the Northrsquos rocky regulatory regime
ldquoWe havenrsquot really pushed itrdquo says Beaulieu ldquoWersquore focussed on doing our own thing for now It takes time to grasp and understand what is it you have [Wersquore ask-ing] the same type of questions that any junior asks wearing the same boots same gloves We know itrsquos a high-risk business but itrsquos a high reward too Whoever is in there has really got to manage and yoursquove got to be able to sustain your own neck In terms of the regulatory regime that is an independent process we respect it and expect to be treated like everyone elserdquo
In a February 2015 interview with the business magazine Corporate Knights he did allow that having the Dene communities at his own board table gives him a home-court advantage
ldquoI think community engagement is our competitive edge And that edge is available because we are a Northern Dene-owned com-
14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Ground-level (above) and aerial (opposite page) of mill and camp at Terra Silver Mine near Great Bear Lake
Bradenindd 14 2016-01-12 1138 AM
pany And wersquore operating in a territory where indigenous people have a significant influence on our activityrdquo he said
Don Bubar as President and CEO of Avalon Rare Metals Inc and in previous roles with the PDAC is a passionate advocate for indigenous inclusion in Canadarsquos mining sector He believes that future mineral exploration in northern Canada will be led by indig-enous businesses
ldquoIt is natural that this participation would progress from a pas-sive one as a service provider to a more active one as an owner of a mineral development business with title to active projects Darrell Beaulieu and DEMCo are providing the leadership for the Dene Nation in going down this pathrdquo said Bubar in an email
ldquoPart of the challenge the industry faces is simply creating more public awareness of the importance of the industry to the northern economy especially for aboriginal communities Eco-activists have been successful in demonizing the industry in the North DEMCo has a key role to play in changing the perception that mineral exploration and development creates only unwanted environmental impacts without creating significant economic benefits for north-ernersrdquo CMJ
JANUARY 2016 CANADIAN MINING JOURNAL | 15
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FIRST NATIONS and MINING
Bradenindd 15 2016-01-12 1138 AM
COMMUNITY EFFORT HELPSSOLVE FISHWAY PROBLEMBy Russell Noble
PARTNERSHIPA WINNING
16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Shannon Haizimsque Chief Operating Officer of the Yinka Dene Economic Limited Partnership the commercial business arm of the Wetrsquosuwetrsquoen First Nations at the Huckleberry Mine site Adjacent photo shows a series of steps lined with geotextiles and anchored with rock fill as part of the minersquos Fish Compensation Plan
Huckleberryindd 16 2016-01-12 1052 AM
Almost everybody associates the name ldquoHuckleberryrdquo with Mark Twainrsquos Huckleberry Finn and his comrade Tom Sawyer but in the mining community Huckleberry is also the name of a Canadian mine that has been in production in northwestern British Columbia
since October 1997 Huckleberry Mines Ltd is an active open-pit coppermolyb-
denum mine located approximately 100km south of Houston BC Production rates (in 2014) were 34 million pounds of copper 2202 ounces of gold and 183218 ounces of silver and like many mines today itrsquos owned by a consortium of companies under one name Huckleberry Mines Ltd (HML) of Vancouver
The mine is owned and operated by Huckleberry Mines Ltd which in turn is owned 50 per cent by Imperial Metals Corporation of Vancouver and 50 per cent by a Japanese consor-tium including Mitsubishi Materials Corporation Dowa Mining Co Ltd and Furukawa Co
Partnering with First NationsSince 2013 Huckleberry Mines Ltd has signed communication amp partnership agreements with five separate First Nations orga-nizations Wetrsquosuwetrsquoen First Nation Cheslatta Carrier Nation Office of Wetrsquosuwetrsquoen Nee Tahi Buhn Indian Band and Skin Tyee Nation
Marke Wong Manager of Environmental amp Community Affairs for Huckleberry Mines Ltd says ldquoThese types of agree-ments have been instrumental in the success of Huckleberry Mine Because of the open dialogue with Indigenous communi-ties we have generated better understanding among all parties and this has increased First Nations access to economic opportu-nities such as job training employment and service contracts and has provided Huckleberry with dedicated community part-ners and a strong reliable work force and able contractorsrdquo
JANUARY 2016 CANADIAN MINING JOURNAL | 17
FIRST NATIONS and MININGHUCKLEBERRY MINE
Huckleberryindd 17 2016-01-12 1052 AM
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For example Wong says Huckleberry works directly with the economic development arm of its partners to provide training jobs and developing on-call labour contracts including the Yinka Dene Economic Development Limited Partnership (YLP) (Wetrsquosuwetrsquoen First Nation) the Nootsenay Enterprises (Cheslatta Carrier Nation) the Hunustrsquo ot en Investment Corp (Nee Tahi Buhn Indian Band) and the Skin Tyee Nation
He says that in 2014 and 2015 the company spent more than 1200 hours of on-the-job training to students and interns from the Wetrsquosuwetrsquoen and Cheslatta Carrier First Nations who recently graduated from the Northwest Community Collegersquos School of Exploration and Mining Environmental Monitoring Assistant Program (EMAP) and other programs
In keeping with Huckleberryrsquos involvement with the commu-nity the company also supports the College of New Caledoniarsquos Mineral Processing Assistants Course by providing instructors on-site mill tours and job opportunities at the mine Several member of the Nee Tahi Buhn Indian Band have been working as on-call positions as environmental monitors and confined space guards in the mill Huckleberry staff regularly respond to community requests to attend speak and sponsor community events such as career days annual meetings mine tours and traditional community gatherings
ldquoDeveloping successful mining arrangements with Indigenous people isnrsquot only about technical astuteness itrsquos about relation-ships reconciliation and the balancing of interestsrdquo says Wong
Itrsquos obvious from these brief examples that Huckleberry Mines Ltd is taking its work with the First Nations seriously but itrsquos more than that
Mike Robertson Chief Policy Advisor Cheslatta Carrier Nation says ldquoIn 2005 the Cheslatta Carrier Nation challenged the mine of its commitment to sound environmental manage-ment During the subsequent 10 years Huckleberry manage-ment and staff committed to engage our people directly in planning and implementing a progressive reclamation program of old mining zone areas and in the development of new zones
Just like the re-vegetated dams and tailings sites our environ-mental relationship has blossomed toordquo
Chief Rene Skin Skin Tyee Nation added ldquoMarke Wong of Huckleberry Mines has participated in our Nationrsquos annual gath-erings including community open houses and cultural camps Hersquos engaged directly with our youth and elders for the past two years He has been diligent in keeping us informed of changes to the on-going miner operation and opportunities for our peoplerdquo
Managing Impacts and Restoring the LandLike all mining therersquos a certain impact to the natural environ-ment and following the closure of a mine there are permanent changes to the landscape The Huckleberry Mine is no exception
Conventional drilling blasting loading and hauling using a combination of electric drills and shovels diesel hydraulic exca-vators and both 100 and 150-ton diesel-powered haul trucks are used to process approximately 17000 tonnes of ore a day
Milling is accomplished by grinding the ore in a 975m diam-eter SAG mill and then through two ball mills The resulting slurry is processed by flotation to produce a concentrate of 27 per cent copper that is subsequently shipped by truck to the port at Stewart for storage and shipment to Japan
Tailings from the milling process is discharged into a tailings management facility and supernatant water is discharged to the aquatic environment through a pipeline to a submersed outfall and diffuser located in Tahtsa Reach part of a man-made hydro-power reservoir developed in the 1950s All water discharged falls within their provincial and federal permit limits
With this comes noise dust and all of the other factors asso-ciated with mining but as mentioned earlier Huckleberry Mines Ltd is aware of the situation and addresses them through its Environment and Community Affairs Program which includes a Fish Habitat Compensation Program
And itrsquos because of its efforts in this area that Huckleberry Mines Ltd recently received the 2014 BC Metal Mine Reclamation Award from the BC Technical Research Committee
Aerial photo of Huckleberry Mine located between Huckleberry Mountain and Tahtsa Reach
Huckleberryindd 18 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 19
on Reclamation (BCTRCR) and the Mining Association of BC (MABC) in recognition for outstanding practices in its fish habitat restoration program a program that actually increased the available fish habitat in the area of the mine as well as its successful relationship building efforts with First Nations
Even before the mine was built the company recognized that its minersquos footprint could have an impact on the available fisher-ies habitat in the area In particular ldquoCreek 4rdquo a known fish-bearing stream was expected to be impacted and so a plan was made to conduct some habitat enhancements in the area
Fisheries surveys conducted by Hatfield Consultants of North Vancouver identified nearby ldquoCreek Mrdquo which at the time was not a fish-bearing stream due to a naturally occurring barrier to fish ndashie a steep gradient reach that stopped any fish from reaching a headwater pond
Huckleberry Minersquos plan involved constructing a series of steps or weirs lined with geotextiles and anchored with rock fill These works were constructed by a team from Cariboo Divers from designs prepared by Hatfield Consultants
Subsequent fish surveys conducted between 2001 and 2011 showed initial success and that adult rainbow trout were present in the headwater pond and juveniles were present in the lower reaches
However subsequent surveys conducted between 2008 and 2011 indicated that the juvenile fish numbers decreased to record lows in 2011 The decline in fish numbers was attributed to failure of the weirs in the lower and middle fishways causing juveniles to become stranded in isolated pools and precluding adults from reaching the preferred spawning habitat between the lower and middle fishways
When initial monitoring of the remediated area in 2013 and 2014 was conducted Environmental Monitoring Assistants from the Yinka Dene Economic Limited Partnership and the Nootsenay Enterprises Ltd were called to assist in the evaluation of the stability of the constructed works as well as presence of fish and the structural integrity of the fishways have remained intact through high-flow periods with no erosion or undermin-ing of the weir structures
Cody Reid Deputy Chief amp Environmental Coordinator Nee Tahi Buhn Indian Band said ldquoThe design construction monitoring and maintenance of the Creek M fishway has led to an overall net increase in fish habitat in the area surrounding the mine in Tahtsa Reachrdquo
And David Belford Mineral and Natural Resources Liaison Officer Wetrsquosuwetrsquoen addedrdquo The HML Environmental team and participating consultants are to be commended on their proactive approach to reclaiming the fish habitat and to increas-ing that habitat within the mine footrdquo
During the 2013 fish survey 39 rainbow trout were captured the largest number of fish observed since 2008 These observa-tions were made even while construction of the middle reach fishways was ongoing
Marke Wong says that Huckleberryrsquos plans are to continue monitoring to confirm the effectiveness of the restoration work including hydraulic functioning physical stability and structural integrity fish distribution and net gain
From the operation of a mine in the mountains to the refur-bishing of a fishway in a local waterway Huckleberry Mines Ltd continues to show its appreciation and respect for the environment and the First Nations communities it works with in British Columbia
Perhaps the most important message for industry is that the example set by Huckleberry Mine and its First Nation commu-nity partners demonstrates that when parties begin to have meaningful dialogue and understanding develops on both sides then the path to cooperation and partnership is open
In the case of Huckleberry Mine this has led to the devel-opment of partnerships that have helped it expand its opera-tions and have help provide support during tough economic times
The nomination of Huckleberry Mines Ltd for the 2014 BC Metal Mine Reclamation Award came from its First Nation Partners because as Chief Karen Ogen said ldquoOur partnership with Huckleberry Mines has made a big difference in our small community Since the 2013 partnership agreement was signed our people have benefitted from jobs training and business opportunities Our experience with Huckleberry has been very positive and we have greatly appreciated Huckleberryrsquos efforts to engage with our community and to work with our business arm the Yinka Dene Economic Partnership The Wetrsquosuwetrsquoen First Nation is very pleased to nominate Huckleberry Mines for this awardrdquo
And lastly Mike Robertson added ldquo The Cheslatta Carrier Nation has been a successful Huckleberry Mines Limited con-tractor on a number of projects including a tailings dam We have our members employed by Huckleberry Mines and we maintain regular contact with its staff and management on all aspects of operations We support the nomination because we are confident they will continue and enhance their innovative and progressive practices of returning the land to a near natural self-sustaining staterdquo CMJ
FIRST NATIONS and MININGHUCKLEBERRY MINE
Material for Huckleberry Minersquos step-building program being delivered to the site by helicopter
Huckleberryindd 19 2016-01-12 1141 AM
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FIRST NATIONS COMPANY PROVIDES VITAL ROADBUILDING SERVICES
TO REMOTE COMMUNITIESStaff Report
REWARDSROADto
Creeindd 20 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 21
FIRST NATIONS and MINING
K imesskanemenow is a Cree word that means ldquoThis is our Roadrdquo a fitting name for the winter road management company that is owned and operated by four northern First Nations Attawapiskat Fort
Albany Kashechewan and Moose Cree Their company Kimesskanemenow Corporation (also
known as K Corp) was founded in 2001 and for the past 15 years has been responsible for building and maintaining the Western James Bay Winter Road (JBWR) which starts in Moosonee and travels 312km up the western coast of James Bay connecting the communities of Fort Albany and Kashechewan and eventually ending at the Attawapiskat First Nation
The road is a lifeline to the remote areas in the James Bay Lowlands of Northern Ontario and without it existing and future development of this part of the country would not be possible
In fact itrsquos thanks to the road that K Corp helped build that companies like De Beers Canada are in the north
As most people know De Beers Canada made international headlines when it built the Victor Mine in 2006 (the first dia-mond mine in Ontario at a cost of about $1 billion) approxi-mately 90km west of the coastal community of Attawapiskat First Nation
Since the open-pit mine began production in 2008 with an annual tonne processing capacity of about 27 million tonnes and an annual carat production capacity of 600000 carats it has proven to be a key to Northern Ontario development and its communities
With an estimated mine life to 2018 the Victor Minersquos ener-gy and equipment needs will continue for at least two more years and according to K Corp cannot be met without the JBWR
Air transport is prohibitively expensive so the winter road is considered by far the most affordable way to supply the remote mine with the necessary 450 loads of cargo and 10 to 11 million litres of diesel fuel that it consumes each year
But the Victor Mine is not the only site that requires a reliable supply of goods and services Similar transportation challenges also face other remote northern First Nations communities that need to truck goods and fuel via seasonal winter roads
With the exception of Moose Cree First Nation which has a railway line to Cochrane air travel is the only transportation available year-round for the three other First Nations which for most community residents is prohibitively expensive
Thanks again to the JBWR it provides a critical socio-eco-nomic tie between the communities as well as a significant source of employment and to keep relationship going Kimesskanemenow Corporation and De Beers Canada have entered into a productive partnership
In 2004 the two parties signed a Winter Road Agreement which was re-negotiated in 2014 Under the agreement De Beers pays the bulk of the costs of the roadrsquos construction and maintenance costs while the balance of the costs are provided by the Provincial and Federal governments
Kimesskanemenow Corporation is guided by three central priorities Building capacity in its communities ensuring that its
member communities receive maximum benefits and mainte-nance of traditional culture which naturally includes environ-mental protection
The company also ensures that money from building and main-taining the road stays in the hands of local First Nation members
To do this the road is constructed and maintained entirely by local community members either as direct employees or through local contractors This has required developing capacity which the company has done through training and education programs
The practical effect of these guiding principals is that during the winter months roughly 200 individuals work on the road helping ensure that the road brings economic benefits to individ-uals families and communities
For many seasonal employment gained through constructing and maintaining the winter road is the only consistently avail-able work in the community Furthermore dividends from the company go back to the hands of the communities to be used as they see fit
Finally Kimesskanemenow Corporation donates to commu-nity-based initiatives that will benefit the communities with each of the four communities allotted an annual amount
Reflecting the corporationrsquos central values the money is used to fund initiatives that benefit youth the environment or main-tain traditional ways of living
One example of the programs that the corporation helps fund is CreeFest a celebration of Cree culture that is held annually in the Mushkegowuk communities
The company also funds the Edward W Chilton scholarship at Northern College in honour of the late Ed Chilton the com-panyrsquos first president The scholarship is awarded to community members to further their education
K Corprsquos list of smaller grants available online include many community and cultural programs that maintain the vitality of all these communities
Kimesskanemenow Corporation maintains an important piece of infrastructure that benefits the communities and allows for the ongoing operation of the Victor Diamond Mine As a cooperative venture the corporation has proven itself to be invaluable to both the communities and the mining company CMJ
Thanks to the efforts of K Corp the Western James Bay Winter Road provides access to the remote areas of Northern Ontario
Creeindd 21 2016-01-12 1052 AM
22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
WHERE WE STANDSERIOUS QUESTIONS DESERVE SOME SERIOUS ANSWERS Staff Report
I trsquos been just over a year since the Native Womenrsquos Association of Canada (NWAC) received funding from Aboriginal Affairs and Northern Development Canada (AANDC) to identify and ask questions about the barriers
indigenous women face and secondly to get direct and honest answers as to what are the realistic opportunities for them in the mining industry
Basically as the headline says they want to know where they stand insofar as their positions within the mining industry are concerned
The questions NWAC put on the table at a recent forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development dealt with two perspectives the first looked into resource development corporations and sought to understand what these corporations knew about aboriginal women and the second was from aboriginal women and how they viewed the mining industry with regards to economic devel-opment and employment opportunities
The forum was attended by an impressive gathering of female indigenous leaders and representatives from the resource devel-opment sector A full list of the participants is featured in the adjacent box
The intent of the engagementdiscussion session was to initi-ate a constructive dialogue amongst the participants with the overall goal of
s increasing the labour market participation of indigenous women in the resource development sector
s ensuring indigenous womenrsquos voices are heard in the devel-opment of these projects
s sharing of information on the industry and
s discussing the various opportunities and barriers facing indigenous women who wish to work in the industry
A DISTINGUISHED PANEL OF WOMEN ATTEND OTTAWA FORUM
Siobhan Dooley Hatch EngineeringGrant Goddard New Gold Inc (Rainy River Project)Karina Kesserwan Kesserwan (Law ndash Strategy ndash Solutions)Stacey Jack New Gold Inc (Rainy River Project)Christopher Lefebvre Aramark CanadaMireille Pilotte New Millennium IronRachel Pineault Detour Gold CorporationKate Rafter Employment and Social Development CanadaLouise Reid-Schloen Hydro OttawaJamie Saulnier Running Deer ResourcesNancy Veal Resolute Forest ProductsMarilyn Capreol Shawanaga First NationPamela Eyles BC Native Womenrsquos AssociationSusan Forth Shawanaga First NationElize Hartley Ontario Native Womenrsquos AssociationMarian Horne Yukon Aboriginal Womenrsquos CouncilNoreen McAteer Alberta Aboriginal Womenrsquos SocietyVerna Polson Quebec Native Women IncTori-Lynn Wanotch Saskatchewan Aboriginal Womenrsquos Circle CorpBeverly Blanchard Native Womenrsquos Association of CanadaSydney Ducharme Native Womenrsquos Association of CanadaClaudette Dumont-Smith Native Womenrsquos Association of CanadaDan Peters Native Womenrsquos Association of CanadaMerv McLeod McLeod-Wood Associates IncNancy Wood McLeod-Wood Associates Inc
Beverly Blanchard (standing) of the Native Womenrsquos Association of Canada addresses delegates attending a forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development
Women in Miningindd 22 2016-01-12 1053 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 23
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
andor economic opportunitiesFor example when impact benefit agreements (IBAs) are
completed they tend to be locally focused and may not consider indigenous women that do not reside in the community or indigenous individuals who are not members of the particular community
From the indigenous womenrsquos perspective at the forum it was noted that indigenous womenrsquos opinions on the resource devel-opment sector were varied and divergent Like most things in life there were some women who are in favour of the mining industry and there are some who are against it
Many who are against the sector perceived it to be counter to the traditional role of indigenous women as water-keepers and caretakers of Mother Earth but on the other hand research found that there was also a significant percentage of indigenous women who were ambivalent towards the industry
Due to length and detail of the forum (from which this article is based) the information has been drastically reduced to fit the space
For complete details and a copy of the full Bridging the Gap Aboriginal Women and Resource Development Report please contact Beverly Blanchard Strategic Policy Partnership and Planning NWAC Ottawa bblanchardnwacca CMJ
INDIGENOUS WOMEN and MINING
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Women in Miningindd 23 2016-01-12 1053 AM
24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
A s probably many of you know times are tough right now Commodity prices are slumping across the board affected by an overall slowing global economy that is being felt throughout Canada
But even during a stubborn downturn in global demand for many minerals and metals itrsquos no time to get down on mining because mining never goes away
Minerals and metals are the very foundation of virtually all of the goods we depend on in our daily lives The world will con-tinue to need mining and Canada can and should continue to be an important place where mining happens
A Look at Market ConditionsSo first how bad is the market
Global economic growth has been volatile in recent years Every time the Bank of Canada the IMF World Bank or others make growth projections it seems they amend them a few months later and always downwards With few exceptions the global economy is not doing well at all
The key economy for the mining sector is China which today consumes almost 50 per cent of the worldrsquos minerals and metals And Chinarsquos growth rate has been slowing along with growth rates in other emerging markets like Brazil Mexico and several Asian and African countries that are also falling
The one major exception is India whose growth is around 75 per cent and with its 13 billion people is seen as the next China in terms of minerals and metals consumption as the coun-try begins to rapidly industrialize
A Bedrock of the Canadian EconomyEven in a slump miningrsquos contribution to Canada is enormous
Despite some job losses at some operations mining and min-eral processing are directly employing more than 375000 Canadians including well over 10000 Indigenous Canadians paying the highest average industrial wage in the country Mining remains proportionally the largest employer of indige-nous Canadians
Mining accounts for roughly 20 per cent of the overall value of Canadian exports valued at nearly $90 billion
Nationally we pay an average of $38 billion annually in corporate taxes and royalties to federal provincial and territorial governments
Mining companies are also paying significant royalties to indig-enous communities across the country indirectly through govern-ment resource revenue sharing and in some cases directly
Wersquore also supporting the second largest mining-supply sector in the world More than 3700 companies provide a wide spec-trum of services to the Canadian mining industry with an increasing number of these being indigenous-owned businesses
A major challenge facing mining in Canadarsquos north today is its lack of infrastructure The north is our industryrsquos future but the territories and the northern parts of our provinces lack criti-cal infrastructuremdashroads electricity ports railwaysmdashto service mines and get products to market
This lack of infrastructure is felt by communities many of them indigenous located in the north
According to the Mining Association of Canadarsquos (MAC)
MINING AND INDIGENOUS PEOPLES CANADArsquoS FUTURE By Pierre Gratton
Delegates attending the 23rd Annual Conference of the Canadian Aboriginal Minerals Association in Vancouver listen to talks during the three-day event
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Macindd 24 2016-01-12 1054 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 25
FIRST NATIONS and MINING
research it costs about 2 to 25 times as much to build and operate a gold and base metal mine in northern Canada off grid than in the south
We should be looking at ways to level the playing field in the north where infrastructure is lacking Canada needs a strategic collaboration involving industry and governments federal pro-vincial territorial and Indigenous to get this nation-building infrastructure in place
This can be done by increasing government investment in new infrastructure or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good
Additionally there is the issue of indigenous rights and title and how this affects the project certainty
Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and if necessary accommo-dated for activities on traditional indigenous territories affects project timelines and certainty
Connected to this is the concept of social license which in general terms defines the support earned by proponents to pro-ceed with and operate their project
The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects
That is a very complex issue The Supreme Court of Canada in its recent decision on the
Tsilhqotrsquoin First Nationrsquos claim recognized indigenous title a first in Canadian law
It also provided clear guidance on the criteria needed to demonstrate title and on the rights and obligations that flow from that in the process also identifying where title was found not to exist
It is a significant decision that provides us all with much more clarity going forward
But back to the question of the vetoThe Court clearly recognizes that in some circumstances the
right to title can be limited by the Crown So there is no abso-lute veto under Canadian law even in the case where title has been proven
But for the Crown to place limits on indigenous title it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead ndash a very significant test
At its core the decision continues a balancing act between empowering and limiting the authority of both indigenous peo-ples and governments The Court was very wise
So what does this mean for proponents There is the law and then there is reality No proponent
wants or should want to build a project that is unwelcome or opposed by local communities This is quite frankly an unsus-tainable option and one best avoided And most communities are open to the opportunities mining brings and increasingly so
Letrsquos look at reality in a different way
Today there are more than 250 agreements between mining companies and indigenous communities across the country It is decidedly rare that projects proceed without impact benefit or other such agreements concluded
These agreements which have matured with time and experi-ence provide significant local benefits and assurances including
Commitments on business procurement and often assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide
Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight
Support for skills training and mentoringDirect economic or financial benefitsSome of these agreements are transforming communities in
very significant waysNewgoldrsquos New Afton project in Kamloops is one such exam-
ple The diamond mines in the NWT are others as is Voiseyrsquos Bay We are seeing high levels of indigenous participation as high as 60 per cent in the case of Voiseyrsquos Bay increasing levels of post-secondary education and significantly improved eco-nomic and social outcomes
Nonetheless it is undeniable that the negotiation of these agreements takes time Trust must be built between the parties and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the pro-posed mine prior to it proceeding
Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association Photo by Tracey Sanders Photography
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Macindd 25 2016-01-12 1054 AM
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
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Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
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JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Nfld Reportindd 30 2016-01-12 1055 AM
Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
PROFESSIONAL DIRECTORYA
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W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
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UNEARTHING TRENDS
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NWT INDIGENOUS JUNIOR MINER ANTES UP IN ITS AGGRESSIVE LEAP INTO OWNERSHIP IN MINING ECONOMY
By Northern Correspondent Bill Braden
BOLD amp BRAVE
10 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
T wo years ago the Dene of the NWT bold-ly jumped into the dragonrsquos jaw and launched their own mining company
The targets significant polymetallic potential near Great Bear Lake and dia-monds near the Ekati and Snap Lake mines
The vision be more than a source of labour and supplier of services to other miners They want to be
their own stand-alone producer among the first in Canada to pursue indigenous mine ownership
Wait a minute Arenrsquot First Nations usually railing against resource development the constant thorn in miningrsquos side And in the face of NWTrsquos gnarly record as a high-risk mining envi-ronment with dwindling exploration and labyrinthine regula-tions what is driving a home-grown indigenous company to do this in the first place
Aerial photo of the mill and camp at Terra Silver Mine abandoned near the south shore of Great Bear Lake since 1985 Photo courtesy of DEMCo LP
Bradenindd 10 2016-01-12 1138 AM
ldquoThe main thing is people want to participate and take ownership Itrsquos coming from the simple statements that have been made at the Dene Nation assemblies for yearsrdquo says Darrell Beaulieu the President and CEO of Denendeh Investments Incorporated (DII) and its latest ven-ture DEMCo Ltd
ldquoNo one ever said we are against business or development We said we want to be participants in development meaningful participantsrdquo
To a considerable extent that has indeed been the case in the NWT Beaulieu points to the prosperous part-nerships among more than 60 NWT indigenous businesses and diamond giants De Beers Dominion and Rio Tinto
Between 1996 and 2011 $42 bil-lion or 33 per cent of their northern spend was with indigenous companies and almost 9500 person years of employment were filled by indigenous workers in that period about 25 per cent of the total labour quantum
But he wanted to go beyond the jobs and servicesupply deals and take the ambitious jump to the equity level The current slump in mining activity and eroding values on existing properties gave momentum to Beaulieursquos plan to create DEMCo in the spring of 2013
ldquoSo the timing to pick up properties andor junior mining companies is upon usrdquo said DIIrsquos website at the time
JANUARY 2016 CANADIAN MINING JOURNAL | 11
FIRST NATIONS and MINING
Darrell Beaulieu CEO of DEMCo LP and this yearrsquos winner of the Skookum Jim Award from PDAC for outstanding achievement and contribution to mining by an aboriginal group or individual
Bradenindd 11 2016-01-12 1138 AM
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It continued on a note of high optimism ldquoThe silver lining to present and initiate a Denendeh exploration and mining compa-ny at this time may help create momentum for fundamental change in First Nation participation in resource development in the Northwest Territories and Canadardquo
The soft-spoken Beaulieu 58 is an Akaitcho Dene born and raised in Yellowknife who has earned numerous accolades for his leadership The most recent is the 2016 Skookum Jim Award from the Prospectors and Developers Association of Canada acknowledging significant achievement and contribution to mining by an indigenous group or individual
Hersquos is no stranger to indigenous and northern corporate governance Hersquos a three-time Chief of the Yellowknives First Nation and has held directorships with Northland Utilities the NWT Business Development and Investment Corporation and numerous industry associations
And hersquos no stranger to mining either as one of his first jobs was with Noranda Exploration doing EM surveys mapping prospecting claim staking and general exploration work
Beaulieu has been an influential advocate for Dene invest-ment through the parent group Denendeh Investments Limited Partnership an alliance of 27 First Nations communi-ties across the NWT It boasts a diverse portfolio including oil and gas drilling services electric utilities communications real estate and now exploration and eventually mining
Optimistic StartTo get DEMCo set up Beaulieu hired Yellowknife prospector
Trevor Teed into the shop as exploration vice president Teed brought with him a hunch hersquod been plugging away at for almost two decades the potential for a new discovery in the Camsell River region southeast of Great Bear Lake directly under four historic silver producers that operated from the 1960s to 1985
rdquoI suggested to him that the potential for IOCG (iron oxide-copper-gold) is what attracted me to it not silverrdquo says Teed ldquoDarrell agreed and despite the initial doubt of two of our three contract geologists our initial thoughts have been proven and there is IOCG at Camsell Riverrdquo
ldquoFirst it was kind of a desktop jobrdquo says Beaulieu ldquoThe data was all over the place We had to go to the United Sates Alberta BC the Geoscience office here in Yellowknife personal homes and at site too it was amazing where all the data ended up after 30 yearsrdquo
They resampled thousands of metres of decades-old core at site (that saved millions of exploration dollars) The results first disclosed in late 2014 proved out their early optimism
ldquoBack in the 70s they were only looking for silver We looked at the core and did some more prospecting and we found that hey therersquos a lot of gold there Whatrsquos more after our first field season was confirmation therersquos a huge magnetic body there also It looks like we have an IOCG depositrdquo
Beaulieu is too savvy to get excited at this point but polymet-alic IOCG deposits (Australiarsquos mammoth Olympic Dam is one) can be truly massive The discovery of the zone estimated roughly at some seven by 16 kilometres in size was first announced in late 2014
Teed says he had taken his hunch to other miners but credits Beaulieu with the vision and the belief to carry it forward His investigation so far has uncovered an extensive magnetic zone under the old silver digs
ldquoIt is a significant event I think that when the rest of Canada catches up to what we have wersquore going to see significant explo-ration again in the areasrdquo predicts Teed
That significance is backed up by mapping and geophysical
Noel Michel of Lutsel Krsquoe takes a break during a prospecting trip near Great Bear Lake Photo courtesy of DEMCo LP
DEMCo Exploration Vice-president Trevor Teed CEO Darrell Beaulieu and COO Margaret Gorman billbradenphoto
Bradenindd 12 2016-01-12 1138 AM
work carried out by the Geological Survey of Canada and the NWT Geological Survey over the past decade
Geologist Scott Cairns Manager of Bedrock Mapping and Mineral Deposits at the NTGSrsquos Yellowknife office says the historic production of silver and uranium is indicative of larger polymetallic IOCG deposits in the Great Bear magmat-ic zone
ldquoThey are definitely in a high mineral potential area thererdquo says Cairns adding that DEMCorsquos claims are at the north end of that zone while Fortune Mineralrsquos NICO project about 200km to the south is on its southern edge
Cairns says federal GSC geologists have recently completed a large study of alterations that can help identify IOCGs ldquoSo therersquos an enormous volume of work of geophysical characterisa-tions ways to track down where these potentially valuable deposits might be hiddenrdquo he says
DEMCorsquos IOCG discovery has not sparked any new rush of interest in the region But on a territory-wide basis says Cairns the number of inquiries website and office visits to his library and data bases has been spiking in the past few months
ldquoI think what wersquore seeing is that while itrsquos difficult to fund boots-on-the-ground exploration companies are doing their homework right now and will be using that when conditions improverdquo
In The GameAs of late December 2015 DEMCo was fully engaged in plan-ning the 2016 field program which Beaulieu hopes will include airborne geophysical work as well as more ground sampling They will spin off another subsidiary Camsell River Minerals Ltd to carry the project
But just like any other junior the team will be out there looking for private cash during one of the metal marketrsquos deepest and most prolonged slumps
And predictably thatrsquos not the only hurdle The claim block is within an overlapping boundary of both the Tlicho and Sahtu land claim regions
The four old mines on the claim block are among dozens across the NWT deemed for rehabilitation by the federal govern-ment There is an existing airstrip but land access would largely be on the historic Denison Ice Road from Behchoko first opened in the 1960s but dormant for 30 years
Yet another layer is working with the NWT Government as it gets used to managing the mines portfolio after its transfer from Ottawa to the NWT in April of 2013
And because DEMCorsquos parent corporation is governed by an alliance of all NWTrsquos First Nations - and itrsquos their money thatrsquos at risk - Beaulieu also has to satisfy a board that isnrsquot all that familiar with being on the investor side of the mining equation
Was it a hard sell to get his board on side in the first place No says Beaulieu pointing to DIIrsquos investment of about $2
million in cash and time to date ldquoThe hard sell is going to be finding the money to add value without diluting too muchrdquo
He says hersquoll be walking the floors at the Vancouver Cordilleran Roundup and Torontorsquos PDAC in 2016 promoting DEMCo
The Camsell project is where DEMCo is now fully focused but it is also invested in the NWTrsquos prolific diamond fields
In the Lac de Gras region east of the Ekati diamond mine the Fin claim block hosts known diamondiferous kimberlites while the Jen block has six known geophysical targets that have not yet been drilled
The Jaedenz block sandwiched between the Gahcho Kue and Snap Lake mines was explored and drilled by both De Beers and Winspear in the 1990s
JANUARY 2016 CANADIAN MINING JOURNAL | 13
Yellowknife-born Trevor Teed prospector and DEMCo VP of Exploration at the Camsell River properties Photo courtesy of DEMCo LP
Among the available resources combed over by DEMCo were these teetering core racks some dating back decades Photo courtesy of DEMCo LP
Bradenindd 13 2016-01-12 1138 AM
No work was done during the 2015 season and the company has not yet announced whether it will commit anything this year
An Indigenous AdvantageDoes being an Aboriginal-owned venture mean DEMCo will get a better reception from investors or an easier ride through the Northrsquos rocky regulatory regime
ldquoWe havenrsquot really pushed itrdquo says Beaulieu ldquoWersquore focussed on doing our own thing for now It takes time to grasp and understand what is it you have [Wersquore ask-ing] the same type of questions that any junior asks wearing the same boots same gloves We know itrsquos a high-risk business but itrsquos a high reward too Whoever is in there has really got to manage and yoursquove got to be able to sustain your own neck In terms of the regulatory regime that is an independent process we respect it and expect to be treated like everyone elserdquo
In a February 2015 interview with the business magazine Corporate Knights he did allow that having the Dene communities at his own board table gives him a home-court advantage
ldquoI think community engagement is our competitive edge And that edge is available because we are a Northern Dene-owned com-
14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Ground-level (above) and aerial (opposite page) of mill and camp at Terra Silver Mine near Great Bear Lake
Bradenindd 14 2016-01-12 1138 AM
pany And wersquore operating in a territory where indigenous people have a significant influence on our activityrdquo he said
Don Bubar as President and CEO of Avalon Rare Metals Inc and in previous roles with the PDAC is a passionate advocate for indigenous inclusion in Canadarsquos mining sector He believes that future mineral exploration in northern Canada will be led by indig-enous businesses
ldquoIt is natural that this participation would progress from a pas-sive one as a service provider to a more active one as an owner of a mineral development business with title to active projects Darrell Beaulieu and DEMCo are providing the leadership for the Dene Nation in going down this pathrdquo said Bubar in an email
ldquoPart of the challenge the industry faces is simply creating more public awareness of the importance of the industry to the northern economy especially for aboriginal communities Eco-activists have been successful in demonizing the industry in the North DEMCo has a key role to play in changing the perception that mineral exploration and development creates only unwanted environmental impacts without creating significant economic benefits for north-ernersrdquo CMJ
JANUARY 2016 CANADIAN MINING JOURNAL | 15
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FIRST NATIONS and MINING
Bradenindd 15 2016-01-12 1138 AM
COMMUNITY EFFORT HELPSSOLVE FISHWAY PROBLEMBy Russell Noble
PARTNERSHIPA WINNING
16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Shannon Haizimsque Chief Operating Officer of the Yinka Dene Economic Limited Partnership the commercial business arm of the Wetrsquosuwetrsquoen First Nations at the Huckleberry Mine site Adjacent photo shows a series of steps lined with geotextiles and anchored with rock fill as part of the minersquos Fish Compensation Plan
Huckleberryindd 16 2016-01-12 1052 AM
Almost everybody associates the name ldquoHuckleberryrdquo with Mark Twainrsquos Huckleberry Finn and his comrade Tom Sawyer but in the mining community Huckleberry is also the name of a Canadian mine that has been in production in northwestern British Columbia
since October 1997 Huckleberry Mines Ltd is an active open-pit coppermolyb-
denum mine located approximately 100km south of Houston BC Production rates (in 2014) were 34 million pounds of copper 2202 ounces of gold and 183218 ounces of silver and like many mines today itrsquos owned by a consortium of companies under one name Huckleberry Mines Ltd (HML) of Vancouver
The mine is owned and operated by Huckleberry Mines Ltd which in turn is owned 50 per cent by Imperial Metals Corporation of Vancouver and 50 per cent by a Japanese consor-tium including Mitsubishi Materials Corporation Dowa Mining Co Ltd and Furukawa Co
Partnering with First NationsSince 2013 Huckleberry Mines Ltd has signed communication amp partnership agreements with five separate First Nations orga-nizations Wetrsquosuwetrsquoen First Nation Cheslatta Carrier Nation Office of Wetrsquosuwetrsquoen Nee Tahi Buhn Indian Band and Skin Tyee Nation
Marke Wong Manager of Environmental amp Community Affairs for Huckleberry Mines Ltd says ldquoThese types of agree-ments have been instrumental in the success of Huckleberry Mine Because of the open dialogue with Indigenous communi-ties we have generated better understanding among all parties and this has increased First Nations access to economic opportu-nities such as job training employment and service contracts and has provided Huckleberry with dedicated community part-ners and a strong reliable work force and able contractorsrdquo
JANUARY 2016 CANADIAN MINING JOURNAL | 17
FIRST NATIONS and MININGHUCKLEBERRY MINE
Huckleberryindd 17 2016-01-12 1052 AM
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For example Wong says Huckleberry works directly with the economic development arm of its partners to provide training jobs and developing on-call labour contracts including the Yinka Dene Economic Development Limited Partnership (YLP) (Wetrsquosuwetrsquoen First Nation) the Nootsenay Enterprises (Cheslatta Carrier Nation) the Hunustrsquo ot en Investment Corp (Nee Tahi Buhn Indian Band) and the Skin Tyee Nation
He says that in 2014 and 2015 the company spent more than 1200 hours of on-the-job training to students and interns from the Wetrsquosuwetrsquoen and Cheslatta Carrier First Nations who recently graduated from the Northwest Community Collegersquos School of Exploration and Mining Environmental Monitoring Assistant Program (EMAP) and other programs
In keeping with Huckleberryrsquos involvement with the commu-nity the company also supports the College of New Caledoniarsquos Mineral Processing Assistants Course by providing instructors on-site mill tours and job opportunities at the mine Several member of the Nee Tahi Buhn Indian Band have been working as on-call positions as environmental monitors and confined space guards in the mill Huckleberry staff regularly respond to community requests to attend speak and sponsor community events such as career days annual meetings mine tours and traditional community gatherings
ldquoDeveloping successful mining arrangements with Indigenous people isnrsquot only about technical astuteness itrsquos about relation-ships reconciliation and the balancing of interestsrdquo says Wong
Itrsquos obvious from these brief examples that Huckleberry Mines Ltd is taking its work with the First Nations seriously but itrsquos more than that
Mike Robertson Chief Policy Advisor Cheslatta Carrier Nation says ldquoIn 2005 the Cheslatta Carrier Nation challenged the mine of its commitment to sound environmental manage-ment During the subsequent 10 years Huckleberry manage-ment and staff committed to engage our people directly in planning and implementing a progressive reclamation program of old mining zone areas and in the development of new zones
Just like the re-vegetated dams and tailings sites our environ-mental relationship has blossomed toordquo
Chief Rene Skin Skin Tyee Nation added ldquoMarke Wong of Huckleberry Mines has participated in our Nationrsquos annual gath-erings including community open houses and cultural camps Hersquos engaged directly with our youth and elders for the past two years He has been diligent in keeping us informed of changes to the on-going miner operation and opportunities for our peoplerdquo
Managing Impacts and Restoring the LandLike all mining therersquos a certain impact to the natural environ-ment and following the closure of a mine there are permanent changes to the landscape The Huckleberry Mine is no exception
Conventional drilling blasting loading and hauling using a combination of electric drills and shovels diesel hydraulic exca-vators and both 100 and 150-ton diesel-powered haul trucks are used to process approximately 17000 tonnes of ore a day
Milling is accomplished by grinding the ore in a 975m diam-eter SAG mill and then through two ball mills The resulting slurry is processed by flotation to produce a concentrate of 27 per cent copper that is subsequently shipped by truck to the port at Stewart for storage and shipment to Japan
Tailings from the milling process is discharged into a tailings management facility and supernatant water is discharged to the aquatic environment through a pipeline to a submersed outfall and diffuser located in Tahtsa Reach part of a man-made hydro-power reservoir developed in the 1950s All water discharged falls within their provincial and federal permit limits
With this comes noise dust and all of the other factors asso-ciated with mining but as mentioned earlier Huckleberry Mines Ltd is aware of the situation and addresses them through its Environment and Community Affairs Program which includes a Fish Habitat Compensation Program
And itrsquos because of its efforts in this area that Huckleberry Mines Ltd recently received the 2014 BC Metal Mine Reclamation Award from the BC Technical Research Committee
Aerial photo of Huckleberry Mine located between Huckleberry Mountain and Tahtsa Reach
Huckleberryindd 18 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 19
on Reclamation (BCTRCR) and the Mining Association of BC (MABC) in recognition for outstanding practices in its fish habitat restoration program a program that actually increased the available fish habitat in the area of the mine as well as its successful relationship building efforts with First Nations
Even before the mine was built the company recognized that its minersquos footprint could have an impact on the available fisher-ies habitat in the area In particular ldquoCreek 4rdquo a known fish-bearing stream was expected to be impacted and so a plan was made to conduct some habitat enhancements in the area
Fisheries surveys conducted by Hatfield Consultants of North Vancouver identified nearby ldquoCreek Mrdquo which at the time was not a fish-bearing stream due to a naturally occurring barrier to fish ndashie a steep gradient reach that stopped any fish from reaching a headwater pond
Huckleberry Minersquos plan involved constructing a series of steps or weirs lined with geotextiles and anchored with rock fill These works were constructed by a team from Cariboo Divers from designs prepared by Hatfield Consultants
Subsequent fish surveys conducted between 2001 and 2011 showed initial success and that adult rainbow trout were present in the headwater pond and juveniles were present in the lower reaches
However subsequent surveys conducted between 2008 and 2011 indicated that the juvenile fish numbers decreased to record lows in 2011 The decline in fish numbers was attributed to failure of the weirs in the lower and middle fishways causing juveniles to become stranded in isolated pools and precluding adults from reaching the preferred spawning habitat between the lower and middle fishways
When initial monitoring of the remediated area in 2013 and 2014 was conducted Environmental Monitoring Assistants from the Yinka Dene Economic Limited Partnership and the Nootsenay Enterprises Ltd were called to assist in the evaluation of the stability of the constructed works as well as presence of fish and the structural integrity of the fishways have remained intact through high-flow periods with no erosion or undermin-ing of the weir structures
Cody Reid Deputy Chief amp Environmental Coordinator Nee Tahi Buhn Indian Band said ldquoThe design construction monitoring and maintenance of the Creek M fishway has led to an overall net increase in fish habitat in the area surrounding the mine in Tahtsa Reachrdquo
And David Belford Mineral and Natural Resources Liaison Officer Wetrsquosuwetrsquoen addedrdquo The HML Environmental team and participating consultants are to be commended on their proactive approach to reclaiming the fish habitat and to increas-ing that habitat within the mine footrdquo
During the 2013 fish survey 39 rainbow trout were captured the largest number of fish observed since 2008 These observa-tions were made even while construction of the middle reach fishways was ongoing
Marke Wong says that Huckleberryrsquos plans are to continue monitoring to confirm the effectiveness of the restoration work including hydraulic functioning physical stability and structural integrity fish distribution and net gain
From the operation of a mine in the mountains to the refur-bishing of a fishway in a local waterway Huckleberry Mines Ltd continues to show its appreciation and respect for the environment and the First Nations communities it works with in British Columbia
Perhaps the most important message for industry is that the example set by Huckleberry Mine and its First Nation commu-nity partners demonstrates that when parties begin to have meaningful dialogue and understanding develops on both sides then the path to cooperation and partnership is open
In the case of Huckleberry Mine this has led to the devel-opment of partnerships that have helped it expand its opera-tions and have help provide support during tough economic times
The nomination of Huckleberry Mines Ltd for the 2014 BC Metal Mine Reclamation Award came from its First Nation Partners because as Chief Karen Ogen said ldquoOur partnership with Huckleberry Mines has made a big difference in our small community Since the 2013 partnership agreement was signed our people have benefitted from jobs training and business opportunities Our experience with Huckleberry has been very positive and we have greatly appreciated Huckleberryrsquos efforts to engage with our community and to work with our business arm the Yinka Dene Economic Partnership The Wetrsquosuwetrsquoen First Nation is very pleased to nominate Huckleberry Mines for this awardrdquo
And lastly Mike Robertson added ldquo The Cheslatta Carrier Nation has been a successful Huckleberry Mines Limited con-tractor on a number of projects including a tailings dam We have our members employed by Huckleberry Mines and we maintain regular contact with its staff and management on all aspects of operations We support the nomination because we are confident they will continue and enhance their innovative and progressive practices of returning the land to a near natural self-sustaining staterdquo CMJ
FIRST NATIONS and MININGHUCKLEBERRY MINE
Material for Huckleberry Minersquos step-building program being delivered to the site by helicopter
Huckleberryindd 19 2016-01-12 1141 AM
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FIRST NATIONS COMPANY PROVIDES VITAL ROADBUILDING SERVICES
TO REMOTE COMMUNITIESStaff Report
REWARDSROADto
Creeindd 20 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 21
FIRST NATIONS and MINING
K imesskanemenow is a Cree word that means ldquoThis is our Roadrdquo a fitting name for the winter road management company that is owned and operated by four northern First Nations Attawapiskat Fort
Albany Kashechewan and Moose Cree Their company Kimesskanemenow Corporation (also
known as K Corp) was founded in 2001 and for the past 15 years has been responsible for building and maintaining the Western James Bay Winter Road (JBWR) which starts in Moosonee and travels 312km up the western coast of James Bay connecting the communities of Fort Albany and Kashechewan and eventually ending at the Attawapiskat First Nation
The road is a lifeline to the remote areas in the James Bay Lowlands of Northern Ontario and without it existing and future development of this part of the country would not be possible
In fact itrsquos thanks to the road that K Corp helped build that companies like De Beers Canada are in the north
As most people know De Beers Canada made international headlines when it built the Victor Mine in 2006 (the first dia-mond mine in Ontario at a cost of about $1 billion) approxi-mately 90km west of the coastal community of Attawapiskat First Nation
Since the open-pit mine began production in 2008 with an annual tonne processing capacity of about 27 million tonnes and an annual carat production capacity of 600000 carats it has proven to be a key to Northern Ontario development and its communities
With an estimated mine life to 2018 the Victor Minersquos ener-gy and equipment needs will continue for at least two more years and according to K Corp cannot be met without the JBWR
Air transport is prohibitively expensive so the winter road is considered by far the most affordable way to supply the remote mine with the necessary 450 loads of cargo and 10 to 11 million litres of diesel fuel that it consumes each year
But the Victor Mine is not the only site that requires a reliable supply of goods and services Similar transportation challenges also face other remote northern First Nations communities that need to truck goods and fuel via seasonal winter roads
With the exception of Moose Cree First Nation which has a railway line to Cochrane air travel is the only transportation available year-round for the three other First Nations which for most community residents is prohibitively expensive
Thanks again to the JBWR it provides a critical socio-eco-nomic tie between the communities as well as a significant source of employment and to keep relationship going Kimesskanemenow Corporation and De Beers Canada have entered into a productive partnership
In 2004 the two parties signed a Winter Road Agreement which was re-negotiated in 2014 Under the agreement De Beers pays the bulk of the costs of the roadrsquos construction and maintenance costs while the balance of the costs are provided by the Provincial and Federal governments
Kimesskanemenow Corporation is guided by three central priorities Building capacity in its communities ensuring that its
member communities receive maximum benefits and mainte-nance of traditional culture which naturally includes environ-mental protection
The company also ensures that money from building and main-taining the road stays in the hands of local First Nation members
To do this the road is constructed and maintained entirely by local community members either as direct employees or through local contractors This has required developing capacity which the company has done through training and education programs
The practical effect of these guiding principals is that during the winter months roughly 200 individuals work on the road helping ensure that the road brings economic benefits to individ-uals families and communities
For many seasonal employment gained through constructing and maintaining the winter road is the only consistently avail-able work in the community Furthermore dividends from the company go back to the hands of the communities to be used as they see fit
Finally Kimesskanemenow Corporation donates to commu-nity-based initiatives that will benefit the communities with each of the four communities allotted an annual amount
Reflecting the corporationrsquos central values the money is used to fund initiatives that benefit youth the environment or main-tain traditional ways of living
One example of the programs that the corporation helps fund is CreeFest a celebration of Cree culture that is held annually in the Mushkegowuk communities
The company also funds the Edward W Chilton scholarship at Northern College in honour of the late Ed Chilton the com-panyrsquos first president The scholarship is awarded to community members to further their education
K Corprsquos list of smaller grants available online include many community and cultural programs that maintain the vitality of all these communities
Kimesskanemenow Corporation maintains an important piece of infrastructure that benefits the communities and allows for the ongoing operation of the Victor Diamond Mine As a cooperative venture the corporation has proven itself to be invaluable to both the communities and the mining company CMJ
Thanks to the efforts of K Corp the Western James Bay Winter Road provides access to the remote areas of Northern Ontario
Creeindd 21 2016-01-12 1052 AM
22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
WHERE WE STANDSERIOUS QUESTIONS DESERVE SOME SERIOUS ANSWERS Staff Report
I trsquos been just over a year since the Native Womenrsquos Association of Canada (NWAC) received funding from Aboriginal Affairs and Northern Development Canada (AANDC) to identify and ask questions about the barriers
indigenous women face and secondly to get direct and honest answers as to what are the realistic opportunities for them in the mining industry
Basically as the headline says they want to know where they stand insofar as their positions within the mining industry are concerned
The questions NWAC put on the table at a recent forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development dealt with two perspectives the first looked into resource development corporations and sought to understand what these corporations knew about aboriginal women and the second was from aboriginal women and how they viewed the mining industry with regards to economic devel-opment and employment opportunities
The forum was attended by an impressive gathering of female indigenous leaders and representatives from the resource devel-opment sector A full list of the participants is featured in the adjacent box
The intent of the engagementdiscussion session was to initi-ate a constructive dialogue amongst the participants with the overall goal of
s increasing the labour market participation of indigenous women in the resource development sector
s ensuring indigenous womenrsquos voices are heard in the devel-opment of these projects
s sharing of information on the industry and
s discussing the various opportunities and barriers facing indigenous women who wish to work in the industry
A DISTINGUISHED PANEL OF WOMEN ATTEND OTTAWA FORUM
Siobhan Dooley Hatch EngineeringGrant Goddard New Gold Inc (Rainy River Project)Karina Kesserwan Kesserwan (Law ndash Strategy ndash Solutions)Stacey Jack New Gold Inc (Rainy River Project)Christopher Lefebvre Aramark CanadaMireille Pilotte New Millennium IronRachel Pineault Detour Gold CorporationKate Rafter Employment and Social Development CanadaLouise Reid-Schloen Hydro OttawaJamie Saulnier Running Deer ResourcesNancy Veal Resolute Forest ProductsMarilyn Capreol Shawanaga First NationPamela Eyles BC Native Womenrsquos AssociationSusan Forth Shawanaga First NationElize Hartley Ontario Native Womenrsquos AssociationMarian Horne Yukon Aboriginal Womenrsquos CouncilNoreen McAteer Alberta Aboriginal Womenrsquos SocietyVerna Polson Quebec Native Women IncTori-Lynn Wanotch Saskatchewan Aboriginal Womenrsquos Circle CorpBeverly Blanchard Native Womenrsquos Association of CanadaSydney Ducharme Native Womenrsquos Association of CanadaClaudette Dumont-Smith Native Womenrsquos Association of CanadaDan Peters Native Womenrsquos Association of CanadaMerv McLeod McLeod-Wood Associates IncNancy Wood McLeod-Wood Associates Inc
Beverly Blanchard (standing) of the Native Womenrsquos Association of Canada addresses delegates attending a forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development
Women in Miningindd 22 2016-01-12 1053 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 23
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
andor economic opportunitiesFor example when impact benefit agreements (IBAs) are
completed they tend to be locally focused and may not consider indigenous women that do not reside in the community or indigenous individuals who are not members of the particular community
From the indigenous womenrsquos perspective at the forum it was noted that indigenous womenrsquos opinions on the resource devel-opment sector were varied and divergent Like most things in life there were some women who are in favour of the mining industry and there are some who are against it
Many who are against the sector perceived it to be counter to the traditional role of indigenous women as water-keepers and caretakers of Mother Earth but on the other hand research found that there was also a significant percentage of indigenous women who were ambivalent towards the industry
Due to length and detail of the forum (from which this article is based) the information has been drastically reduced to fit the space
For complete details and a copy of the full Bridging the Gap Aboriginal Women and Resource Development Report please contact Beverly Blanchard Strategic Policy Partnership and Planning NWAC Ottawa bblanchardnwacca CMJ
INDIGENOUS WOMEN and MINING
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Women in Miningindd 23 2016-01-12 1053 AM
24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
A s probably many of you know times are tough right now Commodity prices are slumping across the board affected by an overall slowing global economy that is being felt throughout Canada
But even during a stubborn downturn in global demand for many minerals and metals itrsquos no time to get down on mining because mining never goes away
Minerals and metals are the very foundation of virtually all of the goods we depend on in our daily lives The world will con-tinue to need mining and Canada can and should continue to be an important place where mining happens
A Look at Market ConditionsSo first how bad is the market
Global economic growth has been volatile in recent years Every time the Bank of Canada the IMF World Bank or others make growth projections it seems they amend them a few months later and always downwards With few exceptions the global economy is not doing well at all
The key economy for the mining sector is China which today consumes almost 50 per cent of the worldrsquos minerals and metals And Chinarsquos growth rate has been slowing along with growth rates in other emerging markets like Brazil Mexico and several Asian and African countries that are also falling
The one major exception is India whose growth is around 75 per cent and with its 13 billion people is seen as the next China in terms of minerals and metals consumption as the coun-try begins to rapidly industrialize
A Bedrock of the Canadian EconomyEven in a slump miningrsquos contribution to Canada is enormous
Despite some job losses at some operations mining and min-eral processing are directly employing more than 375000 Canadians including well over 10000 Indigenous Canadians paying the highest average industrial wage in the country Mining remains proportionally the largest employer of indige-nous Canadians
Mining accounts for roughly 20 per cent of the overall value of Canadian exports valued at nearly $90 billion
Nationally we pay an average of $38 billion annually in corporate taxes and royalties to federal provincial and territorial governments
Mining companies are also paying significant royalties to indig-enous communities across the country indirectly through govern-ment resource revenue sharing and in some cases directly
Wersquore also supporting the second largest mining-supply sector in the world More than 3700 companies provide a wide spec-trum of services to the Canadian mining industry with an increasing number of these being indigenous-owned businesses
A major challenge facing mining in Canadarsquos north today is its lack of infrastructure The north is our industryrsquos future but the territories and the northern parts of our provinces lack criti-cal infrastructuremdashroads electricity ports railwaysmdashto service mines and get products to market
This lack of infrastructure is felt by communities many of them indigenous located in the north
According to the Mining Association of Canadarsquos (MAC)
MINING AND INDIGENOUS PEOPLES CANADArsquoS FUTURE By Pierre Gratton
Delegates attending the 23rd Annual Conference of the Canadian Aboriginal Minerals Association in Vancouver listen to talks during the three-day event
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to
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ey S
ande
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hoto
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hy
Macindd 24 2016-01-12 1054 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 25
FIRST NATIONS and MINING
research it costs about 2 to 25 times as much to build and operate a gold and base metal mine in northern Canada off grid than in the south
We should be looking at ways to level the playing field in the north where infrastructure is lacking Canada needs a strategic collaboration involving industry and governments federal pro-vincial territorial and Indigenous to get this nation-building infrastructure in place
This can be done by increasing government investment in new infrastructure or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good
Additionally there is the issue of indigenous rights and title and how this affects the project certainty
Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and if necessary accommo-dated for activities on traditional indigenous territories affects project timelines and certainty
Connected to this is the concept of social license which in general terms defines the support earned by proponents to pro-ceed with and operate their project
The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects
That is a very complex issue The Supreme Court of Canada in its recent decision on the
Tsilhqotrsquoin First Nationrsquos claim recognized indigenous title a first in Canadian law
It also provided clear guidance on the criteria needed to demonstrate title and on the rights and obligations that flow from that in the process also identifying where title was found not to exist
It is a significant decision that provides us all with much more clarity going forward
But back to the question of the vetoThe Court clearly recognizes that in some circumstances the
right to title can be limited by the Crown So there is no abso-lute veto under Canadian law even in the case where title has been proven
But for the Crown to place limits on indigenous title it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead ndash a very significant test
At its core the decision continues a balancing act between empowering and limiting the authority of both indigenous peo-ples and governments The Court was very wise
So what does this mean for proponents There is the law and then there is reality No proponent
wants or should want to build a project that is unwelcome or opposed by local communities This is quite frankly an unsus-tainable option and one best avoided And most communities are open to the opportunities mining brings and increasingly so
Letrsquos look at reality in a different way
Today there are more than 250 agreements between mining companies and indigenous communities across the country It is decidedly rare that projects proceed without impact benefit or other such agreements concluded
These agreements which have matured with time and experi-ence provide significant local benefits and assurances including
Commitments on business procurement and often assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide
Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight
Support for skills training and mentoringDirect economic or financial benefitsSome of these agreements are transforming communities in
very significant waysNewgoldrsquos New Afton project in Kamloops is one such exam-
ple The diamond mines in the NWT are others as is Voiseyrsquos Bay We are seeing high levels of indigenous participation as high as 60 per cent in the case of Voiseyrsquos Bay increasing levels of post-secondary education and significantly improved eco-nomic and social outcomes
Nonetheless it is undeniable that the negotiation of these agreements takes time Trust must be built between the parties and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the pro-posed mine prior to it proceeding
Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association Photo by Tracey Sanders Photography
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to
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ey S
ande
rs P
hoto
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Macindd 25 2016-01-12 1054 AM
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
AME BCindd 27 2016-01-12 110 PM
28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Nfld Reportindd 30 2016-01-12 1055 AM
Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
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W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
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ldquoThe main thing is people want to participate and take ownership Itrsquos coming from the simple statements that have been made at the Dene Nation assemblies for yearsrdquo says Darrell Beaulieu the President and CEO of Denendeh Investments Incorporated (DII) and its latest ven-ture DEMCo Ltd
ldquoNo one ever said we are against business or development We said we want to be participants in development meaningful participantsrdquo
To a considerable extent that has indeed been the case in the NWT Beaulieu points to the prosperous part-nerships among more than 60 NWT indigenous businesses and diamond giants De Beers Dominion and Rio Tinto
Between 1996 and 2011 $42 bil-lion or 33 per cent of their northern spend was with indigenous companies and almost 9500 person years of employment were filled by indigenous workers in that period about 25 per cent of the total labour quantum
But he wanted to go beyond the jobs and servicesupply deals and take the ambitious jump to the equity level The current slump in mining activity and eroding values on existing properties gave momentum to Beaulieursquos plan to create DEMCo in the spring of 2013
ldquoSo the timing to pick up properties andor junior mining companies is upon usrdquo said DIIrsquos website at the time
JANUARY 2016 CANADIAN MINING JOURNAL | 11
FIRST NATIONS and MINING
Darrell Beaulieu CEO of DEMCo LP and this yearrsquos winner of the Skookum Jim Award from PDAC for outstanding achievement and contribution to mining by an aboriginal group or individual
Bradenindd 11 2016-01-12 1138 AM
12 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It continued on a note of high optimism ldquoThe silver lining to present and initiate a Denendeh exploration and mining compa-ny at this time may help create momentum for fundamental change in First Nation participation in resource development in the Northwest Territories and Canadardquo
The soft-spoken Beaulieu 58 is an Akaitcho Dene born and raised in Yellowknife who has earned numerous accolades for his leadership The most recent is the 2016 Skookum Jim Award from the Prospectors and Developers Association of Canada acknowledging significant achievement and contribution to mining by an indigenous group or individual
Hersquos is no stranger to indigenous and northern corporate governance Hersquos a three-time Chief of the Yellowknives First Nation and has held directorships with Northland Utilities the NWT Business Development and Investment Corporation and numerous industry associations
And hersquos no stranger to mining either as one of his first jobs was with Noranda Exploration doing EM surveys mapping prospecting claim staking and general exploration work
Beaulieu has been an influential advocate for Dene invest-ment through the parent group Denendeh Investments Limited Partnership an alliance of 27 First Nations communi-ties across the NWT It boasts a diverse portfolio including oil and gas drilling services electric utilities communications real estate and now exploration and eventually mining
Optimistic StartTo get DEMCo set up Beaulieu hired Yellowknife prospector
Trevor Teed into the shop as exploration vice president Teed brought with him a hunch hersquod been plugging away at for almost two decades the potential for a new discovery in the Camsell River region southeast of Great Bear Lake directly under four historic silver producers that operated from the 1960s to 1985
rdquoI suggested to him that the potential for IOCG (iron oxide-copper-gold) is what attracted me to it not silverrdquo says Teed ldquoDarrell agreed and despite the initial doubt of two of our three contract geologists our initial thoughts have been proven and there is IOCG at Camsell Riverrdquo
ldquoFirst it was kind of a desktop jobrdquo says Beaulieu ldquoThe data was all over the place We had to go to the United Sates Alberta BC the Geoscience office here in Yellowknife personal homes and at site too it was amazing where all the data ended up after 30 yearsrdquo
They resampled thousands of metres of decades-old core at site (that saved millions of exploration dollars) The results first disclosed in late 2014 proved out their early optimism
ldquoBack in the 70s they were only looking for silver We looked at the core and did some more prospecting and we found that hey therersquos a lot of gold there Whatrsquos more after our first field season was confirmation therersquos a huge magnetic body there also It looks like we have an IOCG depositrdquo
Beaulieu is too savvy to get excited at this point but polymet-alic IOCG deposits (Australiarsquos mammoth Olympic Dam is one) can be truly massive The discovery of the zone estimated roughly at some seven by 16 kilometres in size was first announced in late 2014
Teed says he had taken his hunch to other miners but credits Beaulieu with the vision and the belief to carry it forward His investigation so far has uncovered an extensive magnetic zone under the old silver digs
ldquoIt is a significant event I think that when the rest of Canada catches up to what we have wersquore going to see significant explo-ration again in the areasrdquo predicts Teed
That significance is backed up by mapping and geophysical
Noel Michel of Lutsel Krsquoe takes a break during a prospecting trip near Great Bear Lake Photo courtesy of DEMCo LP
DEMCo Exploration Vice-president Trevor Teed CEO Darrell Beaulieu and COO Margaret Gorman billbradenphoto
Bradenindd 12 2016-01-12 1138 AM
work carried out by the Geological Survey of Canada and the NWT Geological Survey over the past decade
Geologist Scott Cairns Manager of Bedrock Mapping and Mineral Deposits at the NTGSrsquos Yellowknife office says the historic production of silver and uranium is indicative of larger polymetallic IOCG deposits in the Great Bear magmat-ic zone
ldquoThey are definitely in a high mineral potential area thererdquo says Cairns adding that DEMCorsquos claims are at the north end of that zone while Fortune Mineralrsquos NICO project about 200km to the south is on its southern edge
Cairns says federal GSC geologists have recently completed a large study of alterations that can help identify IOCGs ldquoSo therersquos an enormous volume of work of geophysical characterisa-tions ways to track down where these potentially valuable deposits might be hiddenrdquo he says
DEMCorsquos IOCG discovery has not sparked any new rush of interest in the region But on a territory-wide basis says Cairns the number of inquiries website and office visits to his library and data bases has been spiking in the past few months
ldquoI think what wersquore seeing is that while itrsquos difficult to fund boots-on-the-ground exploration companies are doing their homework right now and will be using that when conditions improverdquo
In The GameAs of late December 2015 DEMCo was fully engaged in plan-ning the 2016 field program which Beaulieu hopes will include airborne geophysical work as well as more ground sampling They will spin off another subsidiary Camsell River Minerals Ltd to carry the project
But just like any other junior the team will be out there looking for private cash during one of the metal marketrsquos deepest and most prolonged slumps
And predictably thatrsquos not the only hurdle The claim block is within an overlapping boundary of both the Tlicho and Sahtu land claim regions
The four old mines on the claim block are among dozens across the NWT deemed for rehabilitation by the federal govern-ment There is an existing airstrip but land access would largely be on the historic Denison Ice Road from Behchoko first opened in the 1960s but dormant for 30 years
Yet another layer is working with the NWT Government as it gets used to managing the mines portfolio after its transfer from Ottawa to the NWT in April of 2013
And because DEMCorsquos parent corporation is governed by an alliance of all NWTrsquos First Nations - and itrsquos their money thatrsquos at risk - Beaulieu also has to satisfy a board that isnrsquot all that familiar with being on the investor side of the mining equation
Was it a hard sell to get his board on side in the first place No says Beaulieu pointing to DIIrsquos investment of about $2
million in cash and time to date ldquoThe hard sell is going to be finding the money to add value without diluting too muchrdquo
He says hersquoll be walking the floors at the Vancouver Cordilleran Roundup and Torontorsquos PDAC in 2016 promoting DEMCo
The Camsell project is where DEMCo is now fully focused but it is also invested in the NWTrsquos prolific diamond fields
In the Lac de Gras region east of the Ekati diamond mine the Fin claim block hosts known diamondiferous kimberlites while the Jen block has six known geophysical targets that have not yet been drilled
The Jaedenz block sandwiched between the Gahcho Kue and Snap Lake mines was explored and drilled by both De Beers and Winspear in the 1990s
JANUARY 2016 CANADIAN MINING JOURNAL | 13
Yellowknife-born Trevor Teed prospector and DEMCo VP of Exploration at the Camsell River properties Photo courtesy of DEMCo LP
Among the available resources combed over by DEMCo were these teetering core racks some dating back decades Photo courtesy of DEMCo LP
Bradenindd 13 2016-01-12 1138 AM
No work was done during the 2015 season and the company has not yet announced whether it will commit anything this year
An Indigenous AdvantageDoes being an Aboriginal-owned venture mean DEMCo will get a better reception from investors or an easier ride through the Northrsquos rocky regulatory regime
ldquoWe havenrsquot really pushed itrdquo says Beaulieu ldquoWersquore focussed on doing our own thing for now It takes time to grasp and understand what is it you have [Wersquore ask-ing] the same type of questions that any junior asks wearing the same boots same gloves We know itrsquos a high-risk business but itrsquos a high reward too Whoever is in there has really got to manage and yoursquove got to be able to sustain your own neck In terms of the regulatory regime that is an independent process we respect it and expect to be treated like everyone elserdquo
In a February 2015 interview with the business magazine Corporate Knights he did allow that having the Dene communities at his own board table gives him a home-court advantage
ldquoI think community engagement is our competitive edge And that edge is available because we are a Northern Dene-owned com-
14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Ground-level (above) and aerial (opposite page) of mill and camp at Terra Silver Mine near Great Bear Lake
Bradenindd 14 2016-01-12 1138 AM
pany And wersquore operating in a territory where indigenous people have a significant influence on our activityrdquo he said
Don Bubar as President and CEO of Avalon Rare Metals Inc and in previous roles with the PDAC is a passionate advocate for indigenous inclusion in Canadarsquos mining sector He believes that future mineral exploration in northern Canada will be led by indig-enous businesses
ldquoIt is natural that this participation would progress from a pas-sive one as a service provider to a more active one as an owner of a mineral development business with title to active projects Darrell Beaulieu and DEMCo are providing the leadership for the Dene Nation in going down this pathrdquo said Bubar in an email
ldquoPart of the challenge the industry faces is simply creating more public awareness of the importance of the industry to the northern economy especially for aboriginal communities Eco-activists have been successful in demonizing the industry in the North DEMCo has a key role to play in changing the perception that mineral exploration and development creates only unwanted environmental impacts without creating significant economic benefits for north-ernersrdquo CMJ
JANUARY 2016 CANADIAN MINING JOURNAL | 15
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FIRST NATIONS and MINING
Bradenindd 15 2016-01-12 1138 AM
COMMUNITY EFFORT HELPSSOLVE FISHWAY PROBLEMBy Russell Noble
PARTNERSHIPA WINNING
16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Shannon Haizimsque Chief Operating Officer of the Yinka Dene Economic Limited Partnership the commercial business arm of the Wetrsquosuwetrsquoen First Nations at the Huckleberry Mine site Adjacent photo shows a series of steps lined with geotextiles and anchored with rock fill as part of the minersquos Fish Compensation Plan
Huckleberryindd 16 2016-01-12 1052 AM
Almost everybody associates the name ldquoHuckleberryrdquo with Mark Twainrsquos Huckleberry Finn and his comrade Tom Sawyer but in the mining community Huckleberry is also the name of a Canadian mine that has been in production in northwestern British Columbia
since October 1997 Huckleberry Mines Ltd is an active open-pit coppermolyb-
denum mine located approximately 100km south of Houston BC Production rates (in 2014) were 34 million pounds of copper 2202 ounces of gold and 183218 ounces of silver and like many mines today itrsquos owned by a consortium of companies under one name Huckleberry Mines Ltd (HML) of Vancouver
The mine is owned and operated by Huckleberry Mines Ltd which in turn is owned 50 per cent by Imperial Metals Corporation of Vancouver and 50 per cent by a Japanese consor-tium including Mitsubishi Materials Corporation Dowa Mining Co Ltd and Furukawa Co
Partnering with First NationsSince 2013 Huckleberry Mines Ltd has signed communication amp partnership agreements with five separate First Nations orga-nizations Wetrsquosuwetrsquoen First Nation Cheslatta Carrier Nation Office of Wetrsquosuwetrsquoen Nee Tahi Buhn Indian Band and Skin Tyee Nation
Marke Wong Manager of Environmental amp Community Affairs for Huckleberry Mines Ltd says ldquoThese types of agree-ments have been instrumental in the success of Huckleberry Mine Because of the open dialogue with Indigenous communi-ties we have generated better understanding among all parties and this has increased First Nations access to economic opportu-nities such as job training employment and service contracts and has provided Huckleberry with dedicated community part-ners and a strong reliable work force and able contractorsrdquo
JANUARY 2016 CANADIAN MINING JOURNAL | 17
FIRST NATIONS and MININGHUCKLEBERRY MINE
Huckleberryindd 17 2016-01-12 1052 AM
18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
For example Wong says Huckleberry works directly with the economic development arm of its partners to provide training jobs and developing on-call labour contracts including the Yinka Dene Economic Development Limited Partnership (YLP) (Wetrsquosuwetrsquoen First Nation) the Nootsenay Enterprises (Cheslatta Carrier Nation) the Hunustrsquo ot en Investment Corp (Nee Tahi Buhn Indian Band) and the Skin Tyee Nation
He says that in 2014 and 2015 the company spent more than 1200 hours of on-the-job training to students and interns from the Wetrsquosuwetrsquoen and Cheslatta Carrier First Nations who recently graduated from the Northwest Community Collegersquos School of Exploration and Mining Environmental Monitoring Assistant Program (EMAP) and other programs
In keeping with Huckleberryrsquos involvement with the commu-nity the company also supports the College of New Caledoniarsquos Mineral Processing Assistants Course by providing instructors on-site mill tours and job opportunities at the mine Several member of the Nee Tahi Buhn Indian Band have been working as on-call positions as environmental monitors and confined space guards in the mill Huckleberry staff regularly respond to community requests to attend speak and sponsor community events such as career days annual meetings mine tours and traditional community gatherings
ldquoDeveloping successful mining arrangements with Indigenous people isnrsquot only about technical astuteness itrsquos about relation-ships reconciliation and the balancing of interestsrdquo says Wong
Itrsquos obvious from these brief examples that Huckleberry Mines Ltd is taking its work with the First Nations seriously but itrsquos more than that
Mike Robertson Chief Policy Advisor Cheslatta Carrier Nation says ldquoIn 2005 the Cheslatta Carrier Nation challenged the mine of its commitment to sound environmental manage-ment During the subsequent 10 years Huckleberry manage-ment and staff committed to engage our people directly in planning and implementing a progressive reclamation program of old mining zone areas and in the development of new zones
Just like the re-vegetated dams and tailings sites our environ-mental relationship has blossomed toordquo
Chief Rene Skin Skin Tyee Nation added ldquoMarke Wong of Huckleberry Mines has participated in our Nationrsquos annual gath-erings including community open houses and cultural camps Hersquos engaged directly with our youth and elders for the past two years He has been diligent in keeping us informed of changes to the on-going miner operation and opportunities for our peoplerdquo
Managing Impacts and Restoring the LandLike all mining therersquos a certain impact to the natural environ-ment and following the closure of a mine there are permanent changes to the landscape The Huckleberry Mine is no exception
Conventional drilling blasting loading and hauling using a combination of electric drills and shovels diesel hydraulic exca-vators and both 100 and 150-ton diesel-powered haul trucks are used to process approximately 17000 tonnes of ore a day
Milling is accomplished by grinding the ore in a 975m diam-eter SAG mill and then through two ball mills The resulting slurry is processed by flotation to produce a concentrate of 27 per cent copper that is subsequently shipped by truck to the port at Stewart for storage and shipment to Japan
Tailings from the milling process is discharged into a tailings management facility and supernatant water is discharged to the aquatic environment through a pipeline to a submersed outfall and diffuser located in Tahtsa Reach part of a man-made hydro-power reservoir developed in the 1950s All water discharged falls within their provincial and federal permit limits
With this comes noise dust and all of the other factors asso-ciated with mining but as mentioned earlier Huckleberry Mines Ltd is aware of the situation and addresses them through its Environment and Community Affairs Program which includes a Fish Habitat Compensation Program
And itrsquos because of its efforts in this area that Huckleberry Mines Ltd recently received the 2014 BC Metal Mine Reclamation Award from the BC Technical Research Committee
Aerial photo of Huckleberry Mine located between Huckleberry Mountain and Tahtsa Reach
Huckleberryindd 18 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 19
on Reclamation (BCTRCR) and the Mining Association of BC (MABC) in recognition for outstanding practices in its fish habitat restoration program a program that actually increased the available fish habitat in the area of the mine as well as its successful relationship building efforts with First Nations
Even before the mine was built the company recognized that its minersquos footprint could have an impact on the available fisher-ies habitat in the area In particular ldquoCreek 4rdquo a known fish-bearing stream was expected to be impacted and so a plan was made to conduct some habitat enhancements in the area
Fisheries surveys conducted by Hatfield Consultants of North Vancouver identified nearby ldquoCreek Mrdquo which at the time was not a fish-bearing stream due to a naturally occurring barrier to fish ndashie a steep gradient reach that stopped any fish from reaching a headwater pond
Huckleberry Minersquos plan involved constructing a series of steps or weirs lined with geotextiles and anchored with rock fill These works were constructed by a team from Cariboo Divers from designs prepared by Hatfield Consultants
Subsequent fish surveys conducted between 2001 and 2011 showed initial success and that adult rainbow trout were present in the headwater pond and juveniles were present in the lower reaches
However subsequent surveys conducted between 2008 and 2011 indicated that the juvenile fish numbers decreased to record lows in 2011 The decline in fish numbers was attributed to failure of the weirs in the lower and middle fishways causing juveniles to become stranded in isolated pools and precluding adults from reaching the preferred spawning habitat between the lower and middle fishways
When initial monitoring of the remediated area in 2013 and 2014 was conducted Environmental Monitoring Assistants from the Yinka Dene Economic Limited Partnership and the Nootsenay Enterprises Ltd were called to assist in the evaluation of the stability of the constructed works as well as presence of fish and the structural integrity of the fishways have remained intact through high-flow periods with no erosion or undermin-ing of the weir structures
Cody Reid Deputy Chief amp Environmental Coordinator Nee Tahi Buhn Indian Band said ldquoThe design construction monitoring and maintenance of the Creek M fishway has led to an overall net increase in fish habitat in the area surrounding the mine in Tahtsa Reachrdquo
And David Belford Mineral and Natural Resources Liaison Officer Wetrsquosuwetrsquoen addedrdquo The HML Environmental team and participating consultants are to be commended on their proactive approach to reclaiming the fish habitat and to increas-ing that habitat within the mine footrdquo
During the 2013 fish survey 39 rainbow trout were captured the largest number of fish observed since 2008 These observa-tions were made even while construction of the middle reach fishways was ongoing
Marke Wong says that Huckleberryrsquos plans are to continue monitoring to confirm the effectiveness of the restoration work including hydraulic functioning physical stability and structural integrity fish distribution and net gain
From the operation of a mine in the mountains to the refur-bishing of a fishway in a local waterway Huckleberry Mines Ltd continues to show its appreciation and respect for the environment and the First Nations communities it works with in British Columbia
Perhaps the most important message for industry is that the example set by Huckleberry Mine and its First Nation commu-nity partners demonstrates that when parties begin to have meaningful dialogue and understanding develops on both sides then the path to cooperation and partnership is open
In the case of Huckleberry Mine this has led to the devel-opment of partnerships that have helped it expand its opera-tions and have help provide support during tough economic times
The nomination of Huckleberry Mines Ltd for the 2014 BC Metal Mine Reclamation Award came from its First Nation Partners because as Chief Karen Ogen said ldquoOur partnership with Huckleberry Mines has made a big difference in our small community Since the 2013 partnership agreement was signed our people have benefitted from jobs training and business opportunities Our experience with Huckleberry has been very positive and we have greatly appreciated Huckleberryrsquos efforts to engage with our community and to work with our business arm the Yinka Dene Economic Partnership The Wetrsquosuwetrsquoen First Nation is very pleased to nominate Huckleberry Mines for this awardrdquo
And lastly Mike Robertson added ldquo The Cheslatta Carrier Nation has been a successful Huckleberry Mines Limited con-tractor on a number of projects including a tailings dam We have our members employed by Huckleberry Mines and we maintain regular contact with its staff and management on all aspects of operations We support the nomination because we are confident they will continue and enhance their innovative and progressive practices of returning the land to a near natural self-sustaining staterdquo CMJ
FIRST NATIONS and MININGHUCKLEBERRY MINE
Material for Huckleberry Minersquos step-building program being delivered to the site by helicopter
Huckleberryindd 19 2016-01-12 1141 AM
20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
FIRST NATIONS COMPANY PROVIDES VITAL ROADBUILDING SERVICES
TO REMOTE COMMUNITIESStaff Report
REWARDSROADto
Creeindd 20 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 21
FIRST NATIONS and MINING
K imesskanemenow is a Cree word that means ldquoThis is our Roadrdquo a fitting name for the winter road management company that is owned and operated by four northern First Nations Attawapiskat Fort
Albany Kashechewan and Moose Cree Their company Kimesskanemenow Corporation (also
known as K Corp) was founded in 2001 and for the past 15 years has been responsible for building and maintaining the Western James Bay Winter Road (JBWR) which starts in Moosonee and travels 312km up the western coast of James Bay connecting the communities of Fort Albany and Kashechewan and eventually ending at the Attawapiskat First Nation
The road is a lifeline to the remote areas in the James Bay Lowlands of Northern Ontario and without it existing and future development of this part of the country would not be possible
In fact itrsquos thanks to the road that K Corp helped build that companies like De Beers Canada are in the north
As most people know De Beers Canada made international headlines when it built the Victor Mine in 2006 (the first dia-mond mine in Ontario at a cost of about $1 billion) approxi-mately 90km west of the coastal community of Attawapiskat First Nation
Since the open-pit mine began production in 2008 with an annual tonne processing capacity of about 27 million tonnes and an annual carat production capacity of 600000 carats it has proven to be a key to Northern Ontario development and its communities
With an estimated mine life to 2018 the Victor Minersquos ener-gy and equipment needs will continue for at least two more years and according to K Corp cannot be met without the JBWR
Air transport is prohibitively expensive so the winter road is considered by far the most affordable way to supply the remote mine with the necessary 450 loads of cargo and 10 to 11 million litres of diesel fuel that it consumes each year
But the Victor Mine is not the only site that requires a reliable supply of goods and services Similar transportation challenges also face other remote northern First Nations communities that need to truck goods and fuel via seasonal winter roads
With the exception of Moose Cree First Nation which has a railway line to Cochrane air travel is the only transportation available year-round for the three other First Nations which for most community residents is prohibitively expensive
Thanks again to the JBWR it provides a critical socio-eco-nomic tie between the communities as well as a significant source of employment and to keep relationship going Kimesskanemenow Corporation and De Beers Canada have entered into a productive partnership
In 2004 the two parties signed a Winter Road Agreement which was re-negotiated in 2014 Under the agreement De Beers pays the bulk of the costs of the roadrsquos construction and maintenance costs while the balance of the costs are provided by the Provincial and Federal governments
Kimesskanemenow Corporation is guided by three central priorities Building capacity in its communities ensuring that its
member communities receive maximum benefits and mainte-nance of traditional culture which naturally includes environ-mental protection
The company also ensures that money from building and main-taining the road stays in the hands of local First Nation members
To do this the road is constructed and maintained entirely by local community members either as direct employees or through local contractors This has required developing capacity which the company has done through training and education programs
The practical effect of these guiding principals is that during the winter months roughly 200 individuals work on the road helping ensure that the road brings economic benefits to individ-uals families and communities
For many seasonal employment gained through constructing and maintaining the winter road is the only consistently avail-able work in the community Furthermore dividends from the company go back to the hands of the communities to be used as they see fit
Finally Kimesskanemenow Corporation donates to commu-nity-based initiatives that will benefit the communities with each of the four communities allotted an annual amount
Reflecting the corporationrsquos central values the money is used to fund initiatives that benefit youth the environment or main-tain traditional ways of living
One example of the programs that the corporation helps fund is CreeFest a celebration of Cree culture that is held annually in the Mushkegowuk communities
The company also funds the Edward W Chilton scholarship at Northern College in honour of the late Ed Chilton the com-panyrsquos first president The scholarship is awarded to community members to further their education
K Corprsquos list of smaller grants available online include many community and cultural programs that maintain the vitality of all these communities
Kimesskanemenow Corporation maintains an important piece of infrastructure that benefits the communities and allows for the ongoing operation of the Victor Diamond Mine As a cooperative venture the corporation has proven itself to be invaluable to both the communities and the mining company CMJ
Thanks to the efforts of K Corp the Western James Bay Winter Road provides access to the remote areas of Northern Ontario
Creeindd 21 2016-01-12 1052 AM
22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
WHERE WE STANDSERIOUS QUESTIONS DESERVE SOME SERIOUS ANSWERS Staff Report
I trsquos been just over a year since the Native Womenrsquos Association of Canada (NWAC) received funding from Aboriginal Affairs and Northern Development Canada (AANDC) to identify and ask questions about the barriers
indigenous women face and secondly to get direct and honest answers as to what are the realistic opportunities for them in the mining industry
Basically as the headline says they want to know where they stand insofar as their positions within the mining industry are concerned
The questions NWAC put on the table at a recent forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development dealt with two perspectives the first looked into resource development corporations and sought to understand what these corporations knew about aboriginal women and the second was from aboriginal women and how they viewed the mining industry with regards to economic devel-opment and employment opportunities
The forum was attended by an impressive gathering of female indigenous leaders and representatives from the resource devel-opment sector A full list of the participants is featured in the adjacent box
The intent of the engagementdiscussion session was to initi-ate a constructive dialogue amongst the participants with the overall goal of
s increasing the labour market participation of indigenous women in the resource development sector
s ensuring indigenous womenrsquos voices are heard in the devel-opment of these projects
s sharing of information on the industry and
s discussing the various opportunities and barriers facing indigenous women who wish to work in the industry
A DISTINGUISHED PANEL OF WOMEN ATTEND OTTAWA FORUM
Siobhan Dooley Hatch EngineeringGrant Goddard New Gold Inc (Rainy River Project)Karina Kesserwan Kesserwan (Law ndash Strategy ndash Solutions)Stacey Jack New Gold Inc (Rainy River Project)Christopher Lefebvre Aramark CanadaMireille Pilotte New Millennium IronRachel Pineault Detour Gold CorporationKate Rafter Employment and Social Development CanadaLouise Reid-Schloen Hydro OttawaJamie Saulnier Running Deer ResourcesNancy Veal Resolute Forest ProductsMarilyn Capreol Shawanaga First NationPamela Eyles BC Native Womenrsquos AssociationSusan Forth Shawanaga First NationElize Hartley Ontario Native Womenrsquos AssociationMarian Horne Yukon Aboriginal Womenrsquos CouncilNoreen McAteer Alberta Aboriginal Womenrsquos SocietyVerna Polson Quebec Native Women IncTori-Lynn Wanotch Saskatchewan Aboriginal Womenrsquos Circle CorpBeverly Blanchard Native Womenrsquos Association of CanadaSydney Ducharme Native Womenrsquos Association of CanadaClaudette Dumont-Smith Native Womenrsquos Association of CanadaDan Peters Native Womenrsquos Association of CanadaMerv McLeod McLeod-Wood Associates IncNancy Wood McLeod-Wood Associates Inc
Beverly Blanchard (standing) of the Native Womenrsquos Association of Canada addresses delegates attending a forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development
Women in Miningindd 22 2016-01-12 1053 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 23
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
andor economic opportunitiesFor example when impact benefit agreements (IBAs) are
completed they tend to be locally focused and may not consider indigenous women that do not reside in the community or indigenous individuals who are not members of the particular community
From the indigenous womenrsquos perspective at the forum it was noted that indigenous womenrsquos opinions on the resource devel-opment sector were varied and divergent Like most things in life there were some women who are in favour of the mining industry and there are some who are against it
Many who are against the sector perceived it to be counter to the traditional role of indigenous women as water-keepers and caretakers of Mother Earth but on the other hand research found that there was also a significant percentage of indigenous women who were ambivalent towards the industry
Due to length and detail of the forum (from which this article is based) the information has been drastically reduced to fit the space
For complete details and a copy of the full Bridging the Gap Aboriginal Women and Resource Development Report please contact Beverly Blanchard Strategic Policy Partnership and Planning NWAC Ottawa bblanchardnwacca CMJ
INDIGENOUS WOMEN and MINING
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d e P e n d a B L e P r o J e c t d e v e L o P M e n t
Women in Miningindd 23 2016-01-12 1053 AM
24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
A s probably many of you know times are tough right now Commodity prices are slumping across the board affected by an overall slowing global economy that is being felt throughout Canada
But even during a stubborn downturn in global demand for many minerals and metals itrsquos no time to get down on mining because mining never goes away
Minerals and metals are the very foundation of virtually all of the goods we depend on in our daily lives The world will con-tinue to need mining and Canada can and should continue to be an important place where mining happens
A Look at Market ConditionsSo first how bad is the market
Global economic growth has been volatile in recent years Every time the Bank of Canada the IMF World Bank or others make growth projections it seems they amend them a few months later and always downwards With few exceptions the global economy is not doing well at all
The key economy for the mining sector is China which today consumes almost 50 per cent of the worldrsquos minerals and metals And Chinarsquos growth rate has been slowing along with growth rates in other emerging markets like Brazil Mexico and several Asian and African countries that are also falling
The one major exception is India whose growth is around 75 per cent and with its 13 billion people is seen as the next China in terms of minerals and metals consumption as the coun-try begins to rapidly industrialize
A Bedrock of the Canadian EconomyEven in a slump miningrsquos contribution to Canada is enormous
Despite some job losses at some operations mining and min-eral processing are directly employing more than 375000 Canadians including well over 10000 Indigenous Canadians paying the highest average industrial wage in the country Mining remains proportionally the largest employer of indige-nous Canadians
Mining accounts for roughly 20 per cent of the overall value of Canadian exports valued at nearly $90 billion
Nationally we pay an average of $38 billion annually in corporate taxes and royalties to federal provincial and territorial governments
Mining companies are also paying significant royalties to indig-enous communities across the country indirectly through govern-ment resource revenue sharing and in some cases directly
Wersquore also supporting the second largest mining-supply sector in the world More than 3700 companies provide a wide spec-trum of services to the Canadian mining industry with an increasing number of these being indigenous-owned businesses
A major challenge facing mining in Canadarsquos north today is its lack of infrastructure The north is our industryrsquos future but the territories and the northern parts of our provinces lack criti-cal infrastructuremdashroads electricity ports railwaysmdashto service mines and get products to market
This lack of infrastructure is felt by communities many of them indigenous located in the north
According to the Mining Association of Canadarsquos (MAC)
MINING AND INDIGENOUS PEOPLES CANADArsquoS FUTURE By Pierre Gratton
Delegates attending the 23rd Annual Conference of the Canadian Aboriginal Minerals Association in Vancouver listen to talks during the three-day event
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 24 2016-01-12 1054 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 25
FIRST NATIONS and MINING
research it costs about 2 to 25 times as much to build and operate a gold and base metal mine in northern Canada off grid than in the south
We should be looking at ways to level the playing field in the north where infrastructure is lacking Canada needs a strategic collaboration involving industry and governments federal pro-vincial territorial and Indigenous to get this nation-building infrastructure in place
This can be done by increasing government investment in new infrastructure or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good
Additionally there is the issue of indigenous rights and title and how this affects the project certainty
Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and if necessary accommo-dated for activities on traditional indigenous territories affects project timelines and certainty
Connected to this is the concept of social license which in general terms defines the support earned by proponents to pro-ceed with and operate their project
The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects
That is a very complex issue The Supreme Court of Canada in its recent decision on the
Tsilhqotrsquoin First Nationrsquos claim recognized indigenous title a first in Canadian law
It also provided clear guidance on the criteria needed to demonstrate title and on the rights and obligations that flow from that in the process also identifying where title was found not to exist
It is a significant decision that provides us all with much more clarity going forward
But back to the question of the vetoThe Court clearly recognizes that in some circumstances the
right to title can be limited by the Crown So there is no abso-lute veto under Canadian law even in the case where title has been proven
But for the Crown to place limits on indigenous title it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead ndash a very significant test
At its core the decision continues a balancing act between empowering and limiting the authority of both indigenous peo-ples and governments The Court was very wise
So what does this mean for proponents There is the law and then there is reality No proponent
wants or should want to build a project that is unwelcome or opposed by local communities This is quite frankly an unsus-tainable option and one best avoided And most communities are open to the opportunities mining brings and increasingly so
Letrsquos look at reality in a different way
Today there are more than 250 agreements between mining companies and indigenous communities across the country It is decidedly rare that projects proceed without impact benefit or other such agreements concluded
These agreements which have matured with time and experi-ence provide significant local benefits and assurances including
Commitments on business procurement and often assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide
Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight
Support for skills training and mentoringDirect economic or financial benefitsSome of these agreements are transforming communities in
very significant waysNewgoldrsquos New Afton project in Kamloops is one such exam-
ple The diamond mines in the NWT are others as is Voiseyrsquos Bay We are seeing high levels of indigenous participation as high as 60 per cent in the case of Voiseyrsquos Bay increasing levels of post-secondary education and significantly improved eco-nomic and social outcomes
Nonetheless it is undeniable that the negotiation of these agreements takes time Trust must be built between the parties and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the pro-posed mine prior to it proceeding
Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association Photo by Tracey Sanders Photography
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 25 2016-01-12 1054 AM
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
AME BCindd 27 2016-01-12 110 PM
28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
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W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
- 002
- 003
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- 005
- 006
- 007
- 008-009
- 010-015
- 016-019
- 020-021
- 022-023
- 024-026
- 027
- 028-030
- 031
- 032
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12 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It continued on a note of high optimism ldquoThe silver lining to present and initiate a Denendeh exploration and mining compa-ny at this time may help create momentum for fundamental change in First Nation participation in resource development in the Northwest Territories and Canadardquo
The soft-spoken Beaulieu 58 is an Akaitcho Dene born and raised in Yellowknife who has earned numerous accolades for his leadership The most recent is the 2016 Skookum Jim Award from the Prospectors and Developers Association of Canada acknowledging significant achievement and contribution to mining by an indigenous group or individual
Hersquos is no stranger to indigenous and northern corporate governance Hersquos a three-time Chief of the Yellowknives First Nation and has held directorships with Northland Utilities the NWT Business Development and Investment Corporation and numerous industry associations
And hersquos no stranger to mining either as one of his first jobs was with Noranda Exploration doing EM surveys mapping prospecting claim staking and general exploration work
Beaulieu has been an influential advocate for Dene invest-ment through the parent group Denendeh Investments Limited Partnership an alliance of 27 First Nations communi-ties across the NWT It boasts a diverse portfolio including oil and gas drilling services electric utilities communications real estate and now exploration and eventually mining
Optimistic StartTo get DEMCo set up Beaulieu hired Yellowknife prospector
Trevor Teed into the shop as exploration vice president Teed brought with him a hunch hersquod been plugging away at for almost two decades the potential for a new discovery in the Camsell River region southeast of Great Bear Lake directly under four historic silver producers that operated from the 1960s to 1985
rdquoI suggested to him that the potential for IOCG (iron oxide-copper-gold) is what attracted me to it not silverrdquo says Teed ldquoDarrell agreed and despite the initial doubt of two of our three contract geologists our initial thoughts have been proven and there is IOCG at Camsell Riverrdquo
ldquoFirst it was kind of a desktop jobrdquo says Beaulieu ldquoThe data was all over the place We had to go to the United Sates Alberta BC the Geoscience office here in Yellowknife personal homes and at site too it was amazing where all the data ended up after 30 yearsrdquo
They resampled thousands of metres of decades-old core at site (that saved millions of exploration dollars) The results first disclosed in late 2014 proved out their early optimism
ldquoBack in the 70s they were only looking for silver We looked at the core and did some more prospecting and we found that hey therersquos a lot of gold there Whatrsquos more after our first field season was confirmation therersquos a huge magnetic body there also It looks like we have an IOCG depositrdquo
Beaulieu is too savvy to get excited at this point but polymet-alic IOCG deposits (Australiarsquos mammoth Olympic Dam is one) can be truly massive The discovery of the zone estimated roughly at some seven by 16 kilometres in size was first announced in late 2014
Teed says he had taken his hunch to other miners but credits Beaulieu with the vision and the belief to carry it forward His investigation so far has uncovered an extensive magnetic zone under the old silver digs
ldquoIt is a significant event I think that when the rest of Canada catches up to what we have wersquore going to see significant explo-ration again in the areasrdquo predicts Teed
That significance is backed up by mapping and geophysical
Noel Michel of Lutsel Krsquoe takes a break during a prospecting trip near Great Bear Lake Photo courtesy of DEMCo LP
DEMCo Exploration Vice-president Trevor Teed CEO Darrell Beaulieu and COO Margaret Gorman billbradenphoto
Bradenindd 12 2016-01-12 1138 AM
work carried out by the Geological Survey of Canada and the NWT Geological Survey over the past decade
Geologist Scott Cairns Manager of Bedrock Mapping and Mineral Deposits at the NTGSrsquos Yellowknife office says the historic production of silver and uranium is indicative of larger polymetallic IOCG deposits in the Great Bear magmat-ic zone
ldquoThey are definitely in a high mineral potential area thererdquo says Cairns adding that DEMCorsquos claims are at the north end of that zone while Fortune Mineralrsquos NICO project about 200km to the south is on its southern edge
Cairns says federal GSC geologists have recently completed a large study of alterations that can help identify IOCGs ldquoSo therersquos an enormous volume of work of geophysical characterisa-tions ways to track down where these potentially valuable deposits might be hiddenrdquo he says
DEMCorsquos IOCG discovery has not sparked any new rush of interest in the region But on a territory-wide basis says Cairns the number of inquiries website and office visits to his library and data bases has been spiking in the past few months
ldquoI think what wersquore seeing is that while itrsquos difficult to fund boots-on-the-ground exploration companies are doing their homework right now and will be using that when conditions improverdquo
In The GameAs of late December 2015 DEMCo was fully engaged in plan-ning the 2016 field program which Beaulieu hopes will include airborne geophysical work as well as more ground sampling They will spin off another subsidiary Camsell River Minerals Ltd to carry the project
But just like any other junior the team will be out there looking for private cash during one of the metal marketrsquos deepest and most prolonged slumps
And predictably thatrsquos not the only hurdle The claim block is within an overlapping boundary of both the Tlicho and Sahtu land claim regions
The four old mines on the claim block are among dozens across the NWT deemed for rehabilitation by the federal govern-ment There is an existing airstrip but land access would largely be on the historic Denison Ice Road from Behchoko first opened in the 1960s but dormant for 30 years
Yet another layer is working with the NWT Government as it gets used to managing the mines portfolio after its transfer from Ottawa to the NWT in April of 2013
And because DEMCorsquos parent corporation is governed by an alliance of all NWTrsquos First Nations - and itrsquos their money thatrsquos at risk - Beaulieu also has to satisfy a board that isnrsquot all that familiar with being on the investor side of the mining equation
Was it a hard sell to get his board on side in the first place No says Beaulieu pointing to DIIrsquos investment of about $2
million in cash and time to date ldquoThe hard sell is going to be finding the money to add value without diluting too muchrdquo
He says hersquoll be walking the floors at the Vancouver Cordilleran Roundup and Torontorsquos PDAC in 2016 promoting DEMCo
The Camsell project is where DEMCo is now fully focused but it is also invested in the NWTrsquos prolific diamond fields
In the Lac de Gras region east of the Ekati diamond mine the Fin claim block hosts known diamondiferous kimberlites while the Jen block has six known geophysical targets that have not yet been drilled
The Jaedenz block sandwiched between the Gahcho Kue and Snap Lake mines was explored and drilled by both De Beers and Winspear in the 1990s
JANUARY 2016 CANADIAN MINING JOURNAL | 13
Yellowknife-born Trevor Teed prospector and DEMCo VP of Exploration at the Camsell River properties Photo courtesy of DEMCo LP
Among the available resources combed over by DEMCo were these teetering core racks some dating back decades Photo courtesy of DEMCo LP
Bradenindd 13 2016-01-12 1138 AM
No work was done during the 2015 season and the company has not yet announced whether it will commit anything this year
An Indigenous AdvantageDoes being an Aboriginal-owned venture mean DEMCo will get a better reception from investors or an easier ride through the Northrsquos rocky regulatory regime
ldquoWe havenrsquot really pushed itrdquo says Beaulieu ldquoWersquore focussed on doing our own thing for now It takes time to grasp and understand what is it you have [Wersquore ask-ing] the same type of questions that any junior asks wearing the same boots same gloves We know itrsquos a high-risk business but itrsquos a high reward too Whoever is in there has really got to manage and yoursquove got to be able to sustain your own neck In terms of the regulatory regime that is an independent process we respect it and expect to be treated like everyone elserdquo
In a February 2015 interview with the business magazine Corporate Knights he did allow that having the Dene communities at his own board table gives him a home-court advantage
ldquoI think community engagement is our competitive edge And that edge is available because we are a Northern Dene-owned com-
14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Ground-level (above) and aerial (opposite page) of mill and camp at Terra Silver Mine near Great Bear Lake
Bradenindd 14 2016-01-12 1138 AM
pany And wersquore operating in a territory where indigenous people have a significant influence on our activityrdquo he said
Don Bubar as President and CEO of Avalon Rare Metals Inc and in previous roles with the PDAC is a passionate advocate for indigenous inclusion in Canadarsquos mining sector He believes that future mineral exploration in northern Canada will be led by indig-enous businesses
ldquoIt is natural that this participation would progress from a pas-sive one as a service provider to a more active one as an owner of a mineral development business with title to active projects Darrell Beaulieu and DEMCo are providing the leadership for the Dene Nation in going down this pathrdquo said Bubar in an email
ldquoPart of the challenge the industry faces is simply creating more public awareness of the importance of the industry to the northern economy especially for aboriginal communities Eco-activists have been successful in demonizing the industry in the North DEMCo has a key role to play in changing the perception that mineral exploration and development creates only unwanted environmental impacts without creating significant economic benefits for north-ernersrdquo CMJ
JANUARY 2016 CANADIAN MINING JOURNAL | 15
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FIRST NATIONS and MINING
Bradenindd 15 2016-01-12 1138 AM
COMMUNITY EFFORT HELPSSOLVE FISHWAY PROBLEMBy Russell Noble
PARTNERSHIPA WINNING
16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Shannon Haizimsque Chief Operating Officer of the Yinka Dene Economic Limited Partnership the commercial business arm of the Wetrsquosuwetrsquoen First Nations at the Huckleberry Mine site Adjacent photo shows a series of steps lined with geotextiles and anchored with rock fill as part of the minersquos Fish Compensation Plan
Huckleberryindd 16 2016-01-12 1052 AM
Almost everybody associates the name ldquoHuckleberryrdquo with Mark Twainrsquos Huckleberry Finn and his comrade Tom Sawyer but in the mining community Huckleberry is also the name of a Canadian mine that has been in production in northwestern British Columbia
since October 1997 Huckleberry Mines Ltd is an active open-pit coppermolyb-
denum mine located approximately 100km south of Houston BC Production rates (in 2014) were 34 million pounds of copper 2202 ounces of gold and 183218 ounces of silver and like many mines today itrsquos owned by a consortium of companies under one name Huckleberry Mines Ltd (HML) of Vancouver
The mine is owned and operated by Huckleberry Mines Ltd which in turn is owned 50 per cent by Imperial Metals Corporation of Vancouver and 50 per cent by a Japanese consor-tium including Mitsubishi Materials Corporation Dowa Mining Co Ltd and Furukawa Co
Partnering with First NationsSince 2013 Huckleberry Mines Ltd has signed communication amp partnership agreements with five separate First Nations orga-nizations Wetrsquosuwetrsquoen First Nation Cheslatta Carrier Nation Office of Wetrsquosuwetrsquoen Nee Tahi Buhn Indian Band and Skin Tyee Nation
Marke Wong Manager of Environmental amp Community Affairs for Huckleberry Mines Ltd says ldquoThese types of agree-ments have been instrumental in the success of Huckleberry Mine Because of the open dialogue with Indigenous communi-ties we have generated better understanding among all parties and this has increased First Nations access to economic opportu-nities such as job training employment and service contracts and has provided Huckleberry with dedicated community part-ners and a strong reliable work force and able contractorsrdquo
JANUARY 2016 CANADIAN MINING JOURNAL | 17
FIRST NATIONS and MININGHUCKLEBERRY MINE
Huckleberryindd 17 2016-01-12 1052 AM
18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
For example Wong says Huckleberry works directly with the economic development arm of its partners to provide training jobs and developing on-call labour contracts including the Yinka Dene Economic Development Limited Partnership (YLP) (Wetrsquosuwetrsquoen First Nation) the Nootsenay Enterprises (Cheslatta Carrier Nation) the Hunustrsquo ot en Investment Corp (Nee Tahi Buhn Indian Band) and the Skin Tyee Nation
He says that in 2014 and 2015 the company spent more than 1200 hours of on-the-job training to students and interns from the Wetrsquosuwetrsquoen and Cheslatta Carrier First Nations who recently graduated from the Northwest Community Collegersquos School of Exploration and Mining Environmental Monitoring Assistant Program (EMAP) and other programs
In keeping with Huckleberryrsquos involvement with the commu-nity the company also supports the College of New Caledoniarsquos Mineral Processing Assistants Course by providing instructors on-site mill tours and job opportunities at the mine Several member of the Nee Tahi Buhn Indian Band have been working as on-call positions as environmental monitors and confined space guards in the mill Huckleberry staff regularly respond to community requests to attend speak and sponsor community events such as career days annual meetings mine tours and traditional community gatherings
ldquoDeveloping successful mining arrangements with Indigenous people isnrsquot only about technical astuteness itrsquos about relation-ships reconciliation and the balancing of interestsrdquo says Wong
Itrsquos obvious from these brief examples that Huckleberry Mines Ltd is taking its work with the First Nations seriously but itrsquos more than that
Mike Robertson Chief Policy Advisor Cheslatta Carrier Nation says ldquoIn 2005 the Cheslatta Carrier Nation challenged the mine of its commitment to sound environmental manage-ment During the subsequent 10 years Huckleberry manage-ment and staff committed to engage our people directly in planning and implementing a progressive reclamation program of old mining zone areas and in the development of new zones
Just like the re-vegetated dams and tailings sites our environ-mental relationship has blossomed toordquo
Chief Rene Skin Skin Tyee Nation added ldquoMarke Wong of Huckleberry Mines has participated in our Nationrsquos annual gath-erings including community open houses and cultural camps Hersquos engaged directly with our youth and elders for the past two years He has been diligent in keeping us informed of changes to the on-going miner operation and opportunities for our peoplerdquo
Managing Impacts and Restoring the LandLike all mining therersquos a certain impact to the natural environ-ment and following the closure of a mine there are permanent changes to the landscape The Huckleberry Mine is no exception
Conventional drilling blasting loading and hauling using a combination of electric drills and shovels diesel hydraulic exca-vators and both 100 and 150-ton diesel-powered haul trucks are used to process approximately 17000 tonnes of ore a day
Milling is accomplished by grinding the ore in a 975m diam-eter SAG mill and then through two ball mills The resulting slurry is processed by flotation to produce a concentrate of 27 per cent copper that is subsequently shipped by truck to the port at Stewart for storage and shipment to Japan
Tailings from the milling process is discharged into a tailings management facility and supernatant water is discharged to the aquatic environment through a pipeline to a submersed outfall and diffuser located in Tahtsa Reach part of a man-made hydro-power reservoir developed in the 1950s All water discharged falls within their provincial and federal permit limits
With this comes noise dust and all of the other factors asso-ciated with mining but as mentioned earlier Huckleberry Mines Ltd is aware of the situation and addresses them through its Environment and Community Affairs Program which includes a Fish Habitat Compensation Program
And itrsquos because of its efforts in this area that Huckleberry Mines Ltd recently received the 2014 BC Metal Mine Reclamation Award from the BC Technical Research Committee
Aerial photo of Huckleberry Mine located between Huckleberry Mountain and Tahtsa Reach
Huckleberryindd 18 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 19
on Reclamation (BCTRCR) and the Mining Association of BC (MABC) in recognition for outstanding practices in its fish habitat restoration program a program that actually increased the available fish habitat in the area of the mine as well as its successful relationship building efforts with First Nations
Even before the mine was built the company recognized that its minersquos footprint could have an impact on the available fisher-ies habitat in the area In particular ldquoCreek 4rdquo a known fish-bearing stream was expected to be impacted and so a plan was made to conduct some habitat enhancements in the area
Fisheries surveys conducted by Hatfield Consultants of North Vancouver identified nearby ldquoCreek Mrdquo which at the time was not a fish-bearing stream due to a naturally occurring barrier to fish ndashie a steep gradient reach that stopped any fish from reaching a headwater pond
Huckleberry Minersquos plan involved constructing a series of steps or weirs lined with geotextiles and anchored with rock fill These works were constructed by a team from Cariboo Divers from designs prepared by Hatfield Consultants
Subsequent fish surveys conducted between 2001 and 2011 showed initial success and that adult rainbow trout were present in the headwater pond and juveniles were present in the lower reaches
However subsequent surveys conducted between 2008 and 2011 indicated that the juvenile fish numbers decreased to record lows in 2011 The decline in fish numbers was attributed to failure of the weirs in the lower and middle fishways causing juveniles to become stranded in isolated pools and precluding adults from reaching the preferred spawning habitat between the lower and middle fishways
When initial monitoring of the remediated area in 2013 and 2014 was conducted Environmental Monitoring Assistants from the Yinka Dene Economic Limited Partnership and the Nootsenay Enterprises Ltd were called to assist in the evaluation of the stability of the constructed works as well as presence of fish and the structural integrity of the fishways have remained intact through high-flow periods with no erosion or undermin-ing of the weir structures
Cody Reid Deputy Chief amp Environmental Coordinator Nee Tahi Buhn Indian Band said ldquoThe design construction monitoring and maintenance of the Creek M fishway has led to an overall net increase in fish habitat in the area surrounding the mine in Tahtsa Reachrdquo
And David Belford Mineral and Natural Resources Liaison Officer Wetrsquosuwetrsquoen addedrdquo The HML Environmental team and participating consultants are to be commended on their proactive approach to reclaiming the fish habitat and to increas-ing that habitat within the mine footrdquo
During the 2013 fish survey 39 rainbow trout were captured the largest number of fish observed since 2008 These observa-tions were made even while construction of the middle reach fishways was ongoing
Marke Wong says that Huckleberryrsquos plans are to continue monitoring to confirm the effectiveness of the restoration work including hydraulic functioning physical stability and structural integrity fish distribution and net gain
From the operation of a mine in the mountains to the refur-bishing of a fishway in a local waterway Huckleberry Mines Ltd continues to show its appreciation and respect for the environment and the First Nations communities it works with in British Columbia
Perhaps the most important message for industry is that the example set by Huckleberry Mine and its First Nation commu-nity partners demonstrates that when parties begin to have meaningful dialogue and understanding develops on both sides then the path to cooperation and partnership is open
In the case of Huckleberry Mine this has led to the devel-opment of partnerships that have helped it expand its opera-tions and have help provide support during tough economic times
The nomination of Huckleberry Mines Ltd for the 2014 BC Metal Mine Reclamation Award came from its First Nation Partners because as Chief Karen Ogen said ldquoOur partnership with Huckleberry Mines has made a big difference in our small community Since the 2013 partnership agreement was signed our people have benefitted from jobs training and business opportunities Our experience with Huckleberry has been very positive and we have greatly appreciated Huckleberryrsquos efforts to engage with our community and to work with our business arm the Yinka Dene Economic Partnership The Wetrsquosuwetrsquoen First Nation is very pleased to nominate Huckleberry Mines for this awardrdquo
And lastly Mike Robertson added ldquo The Cheslatta Carrier Nation has been a successful Huckleberry Mines Limited con-tractor on a number of projects including a tailings dam We have our members employed by Huckleberry Mines and we maintain regular contact with its staff and management on all aspects of operations We support the nomination because we are confident they will continue and enhance their innovative and progressive practices of returning the land to a near natural self-sustaining staterdquo CMJ
FIRST NATIONS and MININGHUCKLEBERRY MINE
Material for Huckleberry Minersquos step-building program being delivered to the site by helicopter
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20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
FIRST NATIONS COMPANY PROVIDES VITAL ROADBUILDING SERVICES
TO REMOTE COMMUNITIESStaff Report
REWARDSROADto
Creeindd 20 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 21
FIRST NATIONS and MINING
K imesskanemenow is a Cree word that means ldquoThis is our Roadrdquo a fitting name for the winter road management company that is owned and operated by four northern First Nations Attawapiskat Fort
Albany Kashechewan and Moose Cree Their company Kimesskanemenow Corporation (also
known as K Corp) was founded in 2001 and for the past 15 years has been responsible for building and maintaining the Western James Bay Winter Road (JBWR) which starts in Moosonee and travels 312km up the western coast of James Bay connecting the communities of Fort Albany and Kashechewan and eventually ending at the Attawapiskat First Nation
The road is a lifeline to the remote areas in the James Bay Lowlands of Northern Ontario and without it existing and future development of this part of the country would not be possible
In fact itrsquos thanks to the road that K Corp helped build that companies like De Beers Canada are in the north
As most people know De Beers Canada made international headlines when it built the Victor Mine in 2006 (the first dia-mond mine in Ontario at a cost of about $1 billion) approxi-mately 90km west of the coastal community of Attawapiskat First Nation
Since the open-pit mine began production in 2008 with an annual tonne processing capacity of about 27 million tonnes and an annual carat production capacity of 600000 carats it has proven to be a key to Northern Ontario development and its communities
With an estimated mine life to 2018 the Victor Minersquos ener-gy and equipment needs will continue for at least two more years and according to K Corp cannot be met without the JBWR
Air transport is prohibitively expensive so the winter road is considered by far the most affordable way to supply the remote mine with the necessary 450 loads of cargo and 10 to 11 million litres of diesel fuel that it consumes each year
But the Victor Mine is not the only site that requires a reliable supply of goods and services Similar transportation challenges also face other remote northern First Nations communities that need to truck goods and fuel via seasonal winter roads
With the exception of Moose Cree First Nation which has a railway line to Cochrane air travel is the only transportation available year-round for the three other First Nations which for most community residents is prohibitively expensive
Thanks again to the JBWR it provides a critical socio-eco-nomic tie between the communities as well as a significant source of employment and to keep relationship going Kimesskanemenow Corporation and De Beers Canada have entered into a productive partnership
In 2004 the two parties signed a Winter Road Agreement which was re-negotiated in 2014 Under the agreement De Beers pays the bulk of the costs of the roadrsquos construction and maintenance costs while the balance of the costs are provided by the Provincial and Federal governments
Kimesskanemenow Corporation is guided by three central priorities Building capacity in its communities ensuring that its
member communities receive maximum benefits and mainte-nance of traditional culture which naturally includes environ-mental protection
The company also ensures that money from building and main-taining the road stays in the hands of local First Nation members
To do this the road is constructed and maintained entirely by local community members either as direct employees or through local contractors This has required developing capacity which the company has done through training and education programs
The practical effect of these guiding principals is that during the winter months roughly 200 individuals work on the road helping ensure that the road brings economic benefits to individ-uals families and communities
For many seasonal employment gained through constructing and maintaining the winter road is the only consistently avail-able work in the community Furthermore dividends from the company go back to the hands of the communities to be used as they see fit
Finally Kimesskanemenow Corporation donates to commu-nity-based initiatives that will benefit the communities with each of the four communities allotted an annual amount
Reflecting the corporationrsquos central values the money is used to fund initiatives that benefit youth the environment or main-tain traditional ways of living
One example of the programs that the corporation helps fund is CreeFest a celebration of Cree culture that is held annually in the Mushkegowuk communities
The company also funds the Edward W Chilton scholarship at Northern College in honour of the late Ed Chilton the com-panyrsquos first president The scholarship is awarded to community members to further their education
K Corprsquos list of smaller grants available online include many community and cultural programs that maintain the vitality of all these communities
Kimesskanemenow Corporation maintains an important piece of infrastructure that benefits the communities and allows for the ongoing operation of the Victor Diamond Mine As a cooperative venture the corporation has proven itself to be invaluable to both the communities and the mining company CMJ
Thanks to the efforts of K Corp the Western James Bay Winter Road provides access to the remote areas of Northern Ontario
Creeindd 21 2016-01-12 1052 AM
22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
WHERE WE STANDSERIOUS QUESTIONS DESERVE SOME SERIOUS ANSWERS Staff Report
I trsquos been just over a year since the Native Womenrsquos Association of Canada (NWAC) received funding from Aboriginal Affairs and Northern Development Canada (AANDC) to identify and ask questions about the barriers
indigenous women face and secondly to get direct and honest answers as to what are the realistic opportunities for them in the mining industry
Basically as the headline says they want to know where they stand insofar as their positions within the mining industry are concerned
The questions NWAC put on the table at a recent forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development dealt with two perspectives the first looked into resource development corporations and sought to understand what these corporations knew about aboriginal women and the second was from aboriginal women and how they viewed the mining industry with regards to economic devel-opment and employment opportunities
The forum was attended by an impressive gathering of female indigenous leaders and representatives from the resource devel-opment sector A full list of the participants is featured in the adjacent box
The intent of the engagementdiscussion session was to initi-ate a constructive dialogue amongst the participants with the overall goal of
s increasing the labour market participation of indigenous women in the resource development sector
s ensuring indigenous womenrsquos voices are heard in the devel-opment of these projects
s sharing of information on the industry and
s discussing the various opportunities and barriers facing indigenous women who wish to work in the industry
A DISTINGUISHED PANEL OF WOMEN ATTEND OTTAWA FORUM
Siobhan Dooley Hatch EngineeringGrant Goddard New Gold Inc (Rainy River Project)Karina Kesserwan Kesserwan (Law ndash Strategy ndash Solutions)Stacey Jack New Gold Inc (Rainy River Project)Christopher Lefebvre Aramark CanadaMireille Pilotte New Millennium IronRachel Pineault Detour Gold CorporationKate Rafter Employment and Social Development CanadaLouise Reid-Schloen Hydro OttawaJamie Saulnier Running Deer ResourcesNancy Veal Resolute Forest ProductsMarilyn Capreol Shawanaga First NationPamela Eyles BC Native Womenrsquos AssociationSusan Forth Shawanaga First NationElize Hartley Ontario Native Womenrsquos AssociationMarian Horne Yukon Aboriginal Womenrsquos CouncilNoreen McAteer Alberta Aboriginal Womenrsquos SocietyVerna Polson Quebec Native Women IncTori-Lynn Wanotch Saskatchewan Aboriginal Womenrsquos Circle CorpBeverly Blanchard Native Womenrsquos Association of CanadaSydney Ducharme Native Womenrsquos Association of CanadaClaudette Dumont-Smith Native Womenrsquos Association of CanadaDan Peters Native Womenrsquos Association of CanadaMerv McLeod McLeod-Wood Associates IncNancy Wood McLeod-Wood Associates Inc
Beverly Blanchard (standing) of the Native Womenrsquos Association of Canada addresses delegates attending a forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development
Women in Miningindd 22 2016-01-12 1053 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 23
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
andor economic opportunitiesFor example when impact benefit agreements (IBAs) are
completed they tend to be locally focused and may not consider indigenous women that do not reside in the community or indigenous individuals who are not members of the particular community
From the indigenous womenrsquos perspective at the forum it was noted that indigenous womenrsquos opinions on the resource devel-opment sector were varied and divergent Like most things in life there were some women who are in favour of the mining industry and there are some who are against it
Many who are against the sector perceived it to be counter to the traditional role of indigenous women as water-keepers and caretakers of Mother Earth but on the other hand research found that there was also a significant percentage of indigenous women who were ambivalent towards the industry
Due to length and detail of the forum (from which this article is based) the information has been drastically reduced to fit the space
For complete details and a copy of the full Bridging the Gap Aboriginal Women and Resource Development Report please contact Beverly Blanchard Strategic Policy Partnership and Planning NWAC Ottawa bblanchardnwacca CMJ
INDIGENOUS WOMEN and MINING
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d e P e n d a B L e P r o J e c t d e v e L o P M e n t
Women in Miningindd 23 2016-01-12 1053 AM
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A s probably many of you know times are tough right now Commodity prices are slumping across the board affected by an overall slowing global economy that is being felt throughout Canada
But even during a stubborn downturn in global demand for many minerals and metals itrsquos no time to get down on mining because mining never goes away
Minerals and metals are the very foundation of virtually all of the goods we depend on in our daily lives The world will con-tinue to need mining and Canada can and should continue to be an important place where mining happens
A Look at Market ConditionsSo first how bad is the market
Global economic growth has been volatile in recent years Every time the Bank of Canada the IMF World Bank or others make growth projections it seems they amend them a few months later and always downwards With few exceptions the global economy is not doing well at all
The key economy for the mining sector is China which today consumes almost 50 per cent of the worldrsquos minerals and metals And Chinarsquos growth rate has been slowing along with growth rates in other emerging markets like Brazil Mexico and several Asian and African countries that are also falling
The one major exception is India whose growth is around 75 per cent and with its 13 billion people is seen as the next China in terms of minerals and metals consumption as the coun-try begins to rapidly industrialize
A Bedrock of the Canadian EconomyEven in a slump miningrsquos contribution to Canada is enormous
Despite some job losses at some operations mining and min-eral processing are directly employing more than 375000 Canadians including well over 10000 Indigenous Canadians paying the highest average industrial wage in the country Mining remains proportionally the largest employer of indige-nous Canadians
Mining accounts for roughly 20 per cent of the overall value of Canadian exports valued at nearly $90 billion
Nationally we pay an average of $38 billion annually in corporate taxes and royalties to federal provincial and territorial governments
Mining companies are also paying significant royalties to indig-enous communities across the country indirectly through govern-ment resource revenue sharing and in some cases directly
Wersquore also supporting the second largest mining-supply sector in the world More than 3700 companies provide a wide spec-trum of services to the Canadian mining industry with an increasing number of these being indigenous-owned businesses
A major challenge facing mining in Canadarsquos north today is its lack of infrastructure The north is our industryrsquos future but the territories and the northern parts of our provinces lack criti-cal infrastructuremdashroads electricity ports railwaysmdashto service mines and get products to market
This lack of infrastructure is felt by communities many of them indigenous located in the north
According to the Mining Association of Canadarsquos (MAC)
MINING AND INDIGENOUS PEOPLES CANADArsquoS FUTURE By Pierre Gratton
Delegates attending the 23rd Annual Conference of the Canadian Aboriginal Minerals Association in Vancouver listen to talks during the three-day event
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 24 2016-01-12 1054 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 25
FIRST NATIONS and MINING
research it costs about 2 to 25 times as much to build and operate a gold and base metal mine in northern Canada off grid than in the south
We should be looking at ways to level the playing field in the north where infrastructure is lacking Canada needs a strategic collaboration involving industry and governments federal pro-vincial territorial and Indigenous to get this nation-building infrastructure in place
This can be done by increasing government investment in new infrastructure or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good
Additionally there is the issue of indigenous rights and title and how this affects the project certainty
Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and if necessary accommo-dated for activities on traditional indigenous territories affects project timelines and certainty
Connected to this is the concept of social license which in general terms defines the support earned by proponents to pro-ceed with and operate their project
The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects
That is a very complex issue The Supreme Court of Canada in its recent decision on the
Tsilhqotrsquoin First Nationrsquos claim recognized indigenous title a first in Canadian law
It also provided clear guidance on the criteria needed to demonstrate title and on the rights and obligations that flow from that in the process also identifying where title was found not to exist
It is a significant decision that provides us all with much more clarity going forward
But back to the question of the vetoThe Court clearly recognizes that in some circumstances the
right to title can be limited by the Crown So there is no abso-lute veto under Canadian law even in the case where title has been proven
But for the Crown to place limits on indigenous title it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead ndash a very significant test
At its core the decision continues a balancing act between empowering and limiting the authority of both indigenous peo-ples and governments The Court was very wise
So what does this mean for proponents There is the law and then there is reality No proponent
wants or should want to build a project that is unwelcome or opposed by local communities This is quite frankly an unsus-tainable option and one best avoided And most communities are open to the opportunities mining brings and increasingly so
Letrsquos look at reality in a different way
Today there are more than 250 agreements between mining companies and indigenous communities across the country It is decidedly rare that projects proceed without impact benefit or other such agreements concluded
These agreements which have matured with time and experi-ence provide significant local benefits and assurances including
Commitments on business procurement and often assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide
Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight
Support for skills training and mentoringDirect economic or financial benefitsSome of these agreements are transforming communities in
very significant waysNewgoldrsquos New Afton project in Kamloops is one such exam-
ple The diamond mines in the NWT are others as is Voiseyrsquos Bay We are seeing high levels of indigenous participation as high as 60 per cent in the case of Voiseyrsquos Bay increasing levels of post-secondary education and significantly improved eco-nomic and social outcomes
Nonetheless it is undeniable that the negotiation of these agreements takes time Trust must be built between the parties and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the pro-posed mine prior to it proceeding
Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association Photo by Tracey Sanders Photography
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 25 2016-01-12 1054 AM
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
AME BCindd 27 2016-01-12 110 PM
28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Nfld Reportindd 30 2016-01-12 1055 AM
Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
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W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
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work carried out by the Geological Survey of Canada and the NWT Geological Survey over the past decade
Geologist Scott Cairns Manager of Bedrock Mapping and Mineral Deposits at the NTGSrsquos Yellowknife office says the historic production of silver and uranium is indicative of larger polymetallic IOCG deposits in the Great Bear magmat-ic zone
ldquoThey are definitely in a high mineral potential area thererdquo says Cairns adding that DEMCorsquos claims are at the north end of that zone while Fortune Mineralrsquos NICO project about 200km to the south is on its southern edge
Cairns says federal GSC geologists have recently completed a large study of alterations that can help identify IOCGs ldquoSo therersquos an enormous volume of work of geophysical characterisa-tions ways to track down where these potentially valuable deposits might be hiddenrdquo he says
DEMCorsquos IOCG discovery has not sparked any new rush of interest in the region But on a territory-wide basis says Cairns the number of inquiries website and office visits to his library and data bases has been spiking in the past few months
ldquoI think what wersquore seeing is that while itrsquos difficult to fund boots-on-the-ground exploration companies are doing their homework right now and will be using that when conditions improverdquo
In The GameAs of late December 2015 DEMCo was fully engaged in plan-ning the 2016 field program which Beaulieu hopes will include airborne geophysical work as well as more ground sampling They will spin off another subsidiary Camsell River Minerals Ltd to carry the project
But just like any other junior the team will be out there looking for private cash during one of the metal marketrsquos deepest and most prolonged slumps
And predictably thatrsquos not the only hurdle The claim block is within an overlapping boundary of both the Tlicho and Sahtu land claim regions
The four old mines on the claim block are among dozens across the NWT deemed for rehabilitation by the federal govern-ment There is an existing airstrip but land access would largely be on the historic Denison Ice Road from Behchoko first opened in the 1960s but dormant for 30 years
Yet another layer is working with the NWT Government as it gets used to managing the mines portfolio after its transfer from Ottawa to the NWT in April of 2013
And because DEMCorsquos parent corporation is governed by an alliance of all NWTrsquos First Nations - and itrsquos their money thatrsquos at risk - Beaulieu also has to satisfy a board that isnrsquot all that familiar with being on the investor side of the mining equation
Was it a hard sell to get his board on side in the first place No says Beaulieu pointing to DIIrsquos investment of about $2
million in cash and time to date ldquoThe hard sell is going to be finding the money to add value without diluting too muchrdquo
He says hersquoll be walking the floors at the Vancouver Cordilleran Roundup and Torontorsquos PDAC in 2016 promoting DEMCo
The Camsell project is where DEMCo is now fully focused but it is also invested in the NWTrsquos prolific diamond fields
In the Lac de Gras region east of the Ekati diamond mine the Fin claim block hosts known diamondiferous kimberlites while the Jen block has six known geophysical targets that have not yet been drilled
The Jaedenz block sandwiched between the Gahcho Kue and Snap Lake mines was explored and drilled by both De Beers and Winspear in the 1990s
JANUARY 2016 CANADIAN MINING JOURNAL | 13
Yellowknife-born Trevor Teed prospector and DEMCo VP of Exploration at the Camsell River properties Photo courtesy of DEMCo LP
Among the available resources combed over by DEMCo were these teetering core racks some dating back decades Photo courtesy of DEMCo LP
Bradenindd 13 2016-01-12 1138 AM
No work was done during the 2015 season and the company has not yet announced whether it will commit anything this year
An Indigenous AdvantageDoes being an Aboriginal-owned venture mean DEMCo will get a better reception from investors or an easier ride through the Northrsquos rocky regulatory regime
ldquoWe havenrsquot really pushed itrdquo says Beaulieu ldquoWersquore focussed on doing our own thing for now It takes time to grasp and understand what is it you have [Wersquore ask-ing] the same type of questions that any junior asks wearing the same boots same gloves We know itrsquos a high-risk business but itrsquos a high reward too Whoever is in there has really got to manage and yoursquove got to be able to sustain your own neck In terms of the regulatory regime that is an independent process we respect it and expect to be treated like everyone elserdquo
In a February 2015 interview with the business magazine Corporate Knights he did allow that having the Dene communities at his own board table gives him a home-court advantage
ldquoI think community engagement is our competitive edge And that edge is available because we are a Northern Dene-owned com-
14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Ground-level (above) and aerial (opposite page) of mill and camp at Terra Silver Mine near Great Bear Lake
Bradenindd 14 2016-01-12 1138 AM
pany And wersquore operating in a territory where indigenous people have a significant influence on our activityrdquo he said
Don Bubar as President and CEO of Avalon Rare Metals Inc and in previous roles with the PDAC is a passionate advocate for indigenous inclusion in Canadarsquos mining sector He believes that future mineral exploration in northern Canada will be led by indig-enous businesses
ldquoIt is natural that this participation would progress from a pas-sive one as a service provider to a more active one as an owner of a mineral development business with title to active projects Darrell Beaulieu and DEMCo are providing the leadership for the Dene Nation in going down this pathrdquo said Bubar in an email
ldquoPart of the challenge the industry faces is simply creating more public awareness of the importance of the industry to the northern economy especially for aboriginal communities Eco-activists have been successful in demonizing the industry in the North DEMCo has a key role to play in changing the perception that mineral exploration and development creates only unwanted environmental impacts without creating significant economic benefits for north-ernersrdquo CMJ
JANUARY 2016 CANADIAN MINING JOURNAL | 15
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FIRST NATIONS and MINING
Bradenindd 15 2016-01-12 1138 AM
COMMUNITY EFFORT HELPSSOLVE FISHWAY PROBLEMBy Russell Noble
PARTNERSHIPA WINNING
16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Shannon Haizimsque Chief Operating Officer of the Yinka Dene Economic Limited Partnership the commercial business arm of the Wetrsquosuwetrsquoen First Nations at the Huckleberry Mine site Adjacent photo shows a series of steps lined with geotextiles and anchored with rock fill as part of the minersquos Fish Compensation Plan
Huckleberryindd 16 2016-01-12 1052 AM
Almost everybody associates the name ldquoHuckleberryrdquo with Mark Twainrsquos Huckleberry Finn and his comrade Tom Sawyer but in the mining community Huckleberry is also the name of a Canadian mine that has been in production in northwestern British Columbia
since October 1997 Huckleberry Mines Ltd is an active open-pit coppermolyb-
denum mine located approximately 100km south of Houston BC Production rates (in 2014) were 34 million pounds of copper 2202 ounces of gold and 183218 ounces of silver and like many mines today itrsquos owned by a consortium of companies under one name Huckleberry Mines Ltd (HML) of Vancouver
The mine is owned and operated by Huckleberry Mines Ltd which in turn is owned 50 per cent by Imperial Metals Corporation of Vancouver and 50 per cent by a Japanese consor-tium including Mitsubishi Materials Corporation Dowa Mining Co Ltd and Furukawa Co
Partnering with First NationsSince 2013 Huckleberry Mines Ltd has signed communication amp partnership agreements with five separate First Nations orga-nizations Wetrsquosuwetrsquoen First Nation Cheslatta Carrier Nation Office of Wetrsquosuwetrsquoen Nee Tahi Buhn Indian Band and Skin Tyee Nation
Marke Wong Manager of Environmental amp Community Affairs for Huckleberry Mines Ltd says ldquoThese types of agree-ments have been instrumental in the success of Huckleberry Mine Because of the open dialogue with Indigenous communi-ties we have generated better understanding among all parties and this has increased First Nations access to economic opportu-nities such as job training employment and service contracts and has provided Huckleberry with dedicated community part-ners and a strong reliable work force and able contractorsrdquo
JANUARY 2016 CANADIAN MINING JOURNAL | 17
FIRST NATIONS and MININGHUCKLEBERRY MINE
Huckleberryindd 17 2016-01-12 1052 AM
18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
For example Wong says Huckleberry works directly with the economic development arm of its partners to provide training jobs and developing on-call labour contracts including the Yinka Dene Economic Development Limited Partnership (YLP) (Wetrsquosuwetrsquoen First Nation) the Nootsenay Enterprises (Cheslatta Carrier Nation) the Hunustrsquo ot en Investment Corp (Nee Tahi Buhn Indian Band) and the Skin Tyee Nation
He says that in 2014 and 2015 the company spent more than 1200 hours of on-the-job training to students and interns from the Wetrsquosuwetrsquoen and Cheslatta Carrier First Nations who recently graduated from the Northwest Community Collegersquos School of Exploration and Mining Environmental Monitoring Assistant Program (EMAP) and other programs
In keeping with Huckleberryrsquos involvement with the commu-nity the company also supports the College of New Caledoniarsquos Mineral Processing Assistants Course by providing instructors on-site mill tours and job opportunities at the mine Several member of the Nee Tahi Buhn Indian Band have been working as on-call positions as environmental monitors and confined space guards in the mill Huckleberry staff regularly respond to community requests to attend speak and sponsor community events such as career days annual meetings mine tours and traditional community gatherings
ldquoDeveloping successful mining arrangements with Indigenous people isnrsquot only about technical astuteness itrsquos about relation-ships reconciliation and the balancing of interestsrdquo says Wong
Itrsquos obvious from these brief examples that Huckleberry Mines Ltd is taking its work with the First Nations seriously but itrsquos more than that
Mike Robertson Chief Policy Advisor Cheslatta Carrier Nation says ldquoIn 2005 the Cheslatta Carrier Nation challenged the mine of its commitment to sound environmental manage-ment During the subsequent 10 years Huckleberry manage-ment and staff committed to engage our people directly in planning and implementing a progressive reclamation program of old mining zone areas and in the development of new zones
Just like the re-vegetated dams and tailings sites our environ-mental relationship has blossomed toordquo
Chief Rene Skin Skin Tyee Nation added ldquoMarke Wong of Huckleberry Mines has participated in our Nationrsquos annual gath-erings including community open houses and cultural camps Hersquos engaged directly with our youth and elders for the past two years He has been diligent in keeping us informed of changes to the on-going miner operation and opportunities for our peoplerdquo
Managing Impacts and Restoring the LandLike all mining therersquos a certain impact to the natural environ-ment and following the closure of a mine there are permanent changes to the landscape The Huckleberry Mine is no exception
Conventional drilling blasting loading and hauling using a combination of electric drills and shovels diesel hydraulic exca-vators and both 100 and 150-ton diesel-powered haul trucks are used to process approximately 17000 tonnes of ore a day
Milling is accomplished by grinding the ore in a 975m diam-eter SAG mill and then through two ball mills The resulting slurry is processed by flotation to produce a concentrate of 27 per cent copper that is subsequently shipped by truck to the port at Stewart for storage and shipment to Japan
Tailings from the milling process is discharged into a tailings management facility and supernatant water is discharged to the aquatic environment through a pipeline to a submersed outfall and diffuser located in Tahtsa Reach part of a man-made hydro-power reservoir developed in the 1950s All water discharged falls within their provincial and federal permit limits
With this comes noise dust and all of the other factors asso-ciated with mining but as mentioned earlier Huckleberry Mines Ltd is aware of the situation and addresses them through its Environment and Community Affairs Program which includes a Fish Habitat Compensation Program
And itrsquos because of its efforts in this area that Huckleberry Mines Ltd recently received the 2014 BC Metal Mine Reclamation Award from the BC Technical Research Committee
Aerial photo of Huckleberry Mine located between Huckleberry Mountain and Tahtsa Reach
Huckleberryindd 18 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 19
on Reclamation (BCTRCR) and the Mining Association of BC (MABC) in recognition for outstanding practices in its fish habitat restoration program a program that actually increased the available fish habitat in the area of the mine as well as its successful relationship building efforts with First Nations
Even before the mine was built the company recognized that its minersquos footprint could have an impact on the available fisher-ies habitat in the area In particular ldquoCreek 4rdquo a known fish-bearing stream was expected to be impacted and so a plan was made to conduct some habitat enhancements in the area
Fisheries surveys conducted by Hatfield Consultants of North Vancouver identified nearby ldquoCreek Mrdquo which at the time was not a fish-bearing stream due to a naturally occurring barrier to fish ndashie a steep gradient reach that stopped any fish from reaching a headwater pond
Huckleberry Minersquos plan involved constructing a series of steps or weirs lined with geotextiles and anchored with rock fill These works were constructed by a team from Cariboo Divers from designs prepared by Hatfield Consultants
Subsequent fish surveys conducted between 2001 and 2011 showed initial success and that adult rainbow trout were present in the headwater pond and juveniles were present in the lower reaches
However subsequent surveys conducted between 2008 and 2011 indicated that the juvenile fish numbers decreased to record lows in 2011 The decline in fish numbers was attributed to failure of the weirs in the lower and middle fishways causing juveniles to become stranded in isolated pools and precluding adults from reaching the preferred spawning habitat between the lower and middle fishways
When initial monitoring of the remediated area in 2013 and 2014 was conducted Environmental Monitoring Assistants from the Yinka Dene Economic Limited Partnership and the Nootsenay Enterprises Ltd were called to assist in the evaluation of the stability of the constructed works as well as presence of fish and the structural integrity of the fishways have remained intact through high-flow periods with no erosion or undermin-ing of the weir structures
Cody Reid Deputy Chief amp Environmental Coordinator Nee Tahi Buhn Indian Band said ldquoThe design construction monitoring and maintenance of the Creek M fishway has led to an overall net increase in fish habitat in the area surrounding the mine in Tahtsa Reachrdquo
And David Belford Mineral and Natural Resources Liaison Officer Wetrsquosuwetrsquoen addedrdquo The HML Environmental team and participating consultants are to be commended on their proactive approach to reclaiming the fish habitat and to increas-ing that habitat within the mine footrdquo
During the 2013 fish survey 39 rainbow trout were captured the largest number of fish observed since 2008 These observa-tions were made even while construction of the middle reach fishways was ongoing
Marke Wong says that Huckleberryrsquos plans are to continue monitoring to confirm the effectiveness of the restoration work including hydraulic functioning physical stability and structural integrity fish distribution and net gain
From the operation of a mine in the mountains to the refur-bishing of a fishway in a local waterway Huckleberry Mines Ltd continues to show its appreciation and respect for the environment and the First Nations communities it works with in British Columbia
Perhaps the most important message for industry is that the example set by Huckleberry Mine and its First Nation commu-nity partners demonstrates that when parties begin to have meaningful dialogue and understanding develops on both sides then the path to cooperation and partnership is open
In the case of Huckleberry Mine this has led to the devel-opment of partnerships that have helped it expand its opera-tions and have help provide support during tough economic times
The nomination of Huckleberry Mines Ltd for the 2014 BC Metal Mine Reclamation Award came from its First Nation Partners because as Chief Karen Ogen said ldquoOur partnership with Huckleberry Mines has made a big difference in our small community Since the 2013 partnership agreement was signed our people have benefitted from jobs training and business opportunities Our experience with Huckleberry has been very positive and we have greatly appreciated Huckleberryrsquos efforts to engage with our community and to work with our business arm the Yinka Dene Economic Partnership The Wetrsquosuwetrsquoen First Nation is very pleased to nominate Huckleberry Mines for this awardrdquo
And lastly Mike Robertson added ldquo The Cheslatta Carrier Nation has been a successful Huckleberry Mines Limited con-tractor on a number of projects including a tailings dam We have our members employed by Huckleberry Mines and we maintain regular contact with its staff and management on all aspects of operations We support the nomination because we are confident they will continue and enhance their innovative and progressive practices of returning the land to a near natural self-sustaining staterdquo CMJ
FIRST NATIONS and MININGHUCKLEBERRY MINE
Material for Huckleberry Minersquos step-building program being delivered to the site by helicopter
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20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
FIRST NATIONS COMPANY PROVIDES VITAL ROADBUILDING SERVICES
TO REMOTE COMMUNITIESStaff Report
REWARDSROADto
Creeindd 20 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 21
FIRST NATIONS and MINING
K imesskanemenow is a Cree word that means ldquoThis is our Roadrdquo a fitting name for the winter road management company that is owned and operated by four northern First Nations Attawapiskat Fort
Albany Kashechewan and Moose Cree Their company Kimesskanemenow Corporation (also
known as K Corp) was founded in 2001 and for the past 15 years has been responsible for building and maintaining the Western James Bay Winter Road (JBWR) which starts in Moosonee and travels 312km up the western coast of James Bay connecting the communities of Fort Albany and Kashechewan and eventually ending at the Attawapiskat First Nation
The road is a lifeline to the remote areas in the James Bay Lowlands of Northern Ontario and without it existing and future development of this part of the country would not be possible
In fact itrsquos thanks to the road that K Corp helped build that companies like De Beers Canada are in the north
As most people know De Beers Canada made international headlines when it built the Victor Mine in 2006 (the first dia-mond mine in Ontario at a cost of about $1 billion) approxi-mately 90km west of the coastal community of Attawapiskat First Nation
Since the open-pit mine began production in 2008 with an annual tonne processing capacity of about 27 million tonnes and an annual carat production capacity of 600000 carats it has proven to be a key to Northern Ontario development and its communities
With an estimated mine life to 2018 the Victor Minersquos ener-gy and equipment needs will continue for at least two more years and according to K Corp cannot be met without the JBWR
Air transport is prohibitively expensive so the winter road is considered by far the most affordable way to supply the remote mine with the necessary 450 loads of cargo and 10 to 11 million litres of diesel fuel that it consumes each year
But the Victor Mine is not the only site that requires a reliable supply of goods and services Similar transportation challenges also face other remote northern First Nations communities that need to truck goods and fuel via seasonal winter roads
With the exception of Moose Cree First Nation which has a railway line to Cochrane air travel is the only transportation available year-round for the three other First Nations which for most community residents is prohibitively expensive
Thanks again to the JBWR it provides a critical socio-eco-nomic tie between the communities as well as a significant source of employment and to keep relationship going Kimesskanemenow Corporation and De Beers Canada have entered into a productive partnership
In 2004 the two parties signed a Winter Road Agreement which was re-negotiated in 2014 Under the agreement De Beers pays the bulk of the costs of the roadrsquos construction and maintenance costs while the balance of the costs are provided by the Provincial and Federal governments
Kimesskanemenow Corporation is guided by three central priorities Building capacity in its communities ensuring that its
member communities receive maximum benefits and mainte-nance of traditional culture which naturally includes environ-mental protection
The company also ensures that money from building and main-taining the road stays in the hands of local First Nation members
To do this the road is constructed and maintained entirely by local community members either as direct employees or through local contractors This has required developing capacity which the company has done through training and education programs
The practical effect of these guiding principals is that during the winter months roughly 200 individuals work on the road helping ensure that the road brings economic benefits to individ-uals families and communities
For many seasonal employment gained through constructing and maintaining the winter road is the only consistently avail-able work in the community Furthermore dividends from the company go back to the hands of the communities to be used as they see fit
Finally Kimesskanemenow Corporation donates to commu-nity-based initiatives that will benefit the communities with each of the four communities allotted an annual amount
Reflecting the corporationrsquos central values the money is used to fund initiatives that benefit youth the environment or main-tain traditional ways of living
One example of the programs that the corporation helps fund is CreeFest a celebration of Cree culture that is held annually in the Mushkegowuk communities
The company also funds the Edward W Chilton scholarship at Northern College in honour of the late Ed Chilton the com-panyrsquos first president The scholarship is awarded to community members to further their education
K Corprsquos list of smaller grants available online include many community and cultural programs that maintain the vitality of all these communities
Kimesskanemenow Corporation maintains an important piece of infrastructure that benefits the communities and allows for the ongoing operation of the Victor Diamond Mine As a cooperative venture the corporation has proven itself to be invaluable to both the communities and the mining company CMJ
Thanks to the efforts of K Corp the Western James Bay Winter Road provides access to the remote areas of Northern Ontario
Creeindd 21 2016-01-12 1052 AM
22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
WHERE WE STANDSERIOUS QUESTIONS DESERVE SOME SERIOUS ANSWERS Staff Report
I trsquos been just over a year since the Native Womenrsquos Association of Canada (NWAC) received funding from Aboriginal Affairs and Northern Development Canada (AANDC) to identify and ask questions about the barriers
indigenous women face and secondly to get direct and honest answers as to what are the realistic opportunities for them in the mining industry
Basically as the headline says they want to know where they stand insofar as their positions within the mining industry are concerned
The questions NWAC put on the table at a recent forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development dealt with two perspectives the first looked into resource development corporations and sought to understand what these corporations knew about aboriginal women and the second was from aboriginal women and how they viewed the mining industry with regards to economic devel-opment and employment opportunities
The forum was attended by an impressive gathering of female indigenous leaders and representatives from the resource devel-opment sector A full list of the participants is featured in the adjacent box
The intent of the engagementdiscussion session was to initi-ate a constructive dialogue amongst the participants with the overall goal of
s increasing the labour market participation of indigenous women in the resource development sector
s ensuring indigenous womenrsquos voices are heard in the devel-opment of these projects
s sharing of information on the industry and
s discussing the various opportunities and barriers facing indigenous women who wish to work in the industry
A DISTINGUISHED PANEL OF WOMEN ATTEND OTTAWA FORUM
Siobhan Dooley Hatch EngineeringGrant Goddard New Gold Inc (Rainy River Project)Karina Kesserwan Kesserwan (Law ndash Strategy ndash Solutions)Stacey Jack New Gold Inc (Rainy River Project)Christopher Lefebvre Aramark CanadaMireille Pilotte New Millennium IronRachel Pineault Detour Gold CorporationKate Rafter Employment and Social Development CanadaLouise Reid-Schloen Hydro OttawaJamie Saulnier Running Deer ResourcesNancy Veal Resolute Forest ProductsMarilyn Capreol Shawanaga First NationPamela Eyles BC Native Womenrsquos AssociationSusan Forth Shawanaga First NationElize Hartley Ontario Native Womenrsquos AssociationMarian Horne Yukon Aboriginal Womenrsquos CouncilNoreen McAteer Alberta Aboriginal Womenrsquos SocietyVerna Polson Quebec Native Women IncTori-Lynn Wanotch Saskatchewan Aboriginal Womenrsquos Circle CorpBeverly Blanchard Native Womenrsquos Association of CanadaSydney Ducharme Native Womenrsquos Association of CanadaClaudette Dumont-Smith Native Womenrsquos Association of CanadaDan Peters Native Womenrsquos Association of CanadaMerv McLeod McLeod-Wood Associates IncNancy Wood McLeod-Wood Associates Inc
Beverly Blanchard (standing) of the Native Womenrsquos Association of Canada addresses delegates attending a forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development
Women in Miningindd 22 2016-01-12 1053 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 23
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
andor economic opportunitiesFor example when impact benefit agreements (IBAs) are
completed they tend to be locally focused and may not consider indigenous women that do not reside in the community or indigenous individuals who are not members of the particular community
From the indigenous womenrsquos perspective at the forum it was noted that indigenous womenrsquos opinions on the resource devel-opment sector were varied and divergent Like most things in life there were some women who are in favour of the mining industry and there are some who are against it
Many who are against the sector perceived it to be counter to the traditional role of indigenous women as water-keepers and caretakers of Mother Earth but on the other hand research found that there was also a significant percentage of indigenous women who were ambivalent towards the industry
Due to length and detail of the forum (from which this article is based) the information has been drastically reduced to fit the space
For complete details and a copy of the full Bridging the Gap Aboriginal Women and Resource Development Report please contact Beverly Blanchard Strategic Policy Partnership and Planning NWAC Ottawa bblanchardnwacca CMJ
INDIGENOUS WOMEN and MINING
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d e P e n d a B L e P r o J e c t d e v e L o P M e n t
Women in Miningindd 23 2016-01-12 1053 AM
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A s probably many of you know times are tough right now Commodity prices are slumping across the board affected by an overall slowing global economy that is being felt throughout Canada
But even during a stubborn downturn in global demand for many minerals and metals itrsquos no time to get down on mining because mining never goes away
Minerals and metals are the very foundation of virtually all of the goods we depend on in our daily lives The world will con-tinue to need mining and Canada can and should continue to be an important place where mining happens
A Look at Market ConditionsSo first how bad is the market
Global economic growth has been volatile in recent years Every time the Bank of Canada the IMF World Bank or others make growth projections it seems they amend them a few months later and always downwards With few exceptions the global economy is not doing well at all
The key economy for the mining sector is China which today consumes almost 50 per cent of the worldrsquos minerals and metals And Chinarsquos growth rate has been slowing along with growth rates in other emerging markets like Brazil Mexico and several Asian and African countries that are also falling
The one major exception is India whose growth is around 75 per cent and with its 13 billion people is seen as the next China in terms of minerals and metals consumption as the coun-try begins to rapidly industrialize
A Bedrock of the Canadian EconomyEven in a slump miningrsquos contribution to Canada is enormous
Despite some job losses at some operations mining and min-eral processing are directly employing more than 375000 Canadians including well over 10000 Indigenous Canadians paying the highest average industrial wage in the country Mining remains proportionally the largest employer of indige-nous Canadians
Mining accounts for roughly 20 per cent of the overall value of Canadian exports valued at nearly $90 billion
Nationally we pay an average of $38 billion annually in corporate taxes and royalties to federal provincial and territorial governments
Mining companies are also paying significant royalties to indig-enous communities across the country indirectly through govern-ment resource revenue sharing and in some cases directly
Wersquore also supporting the second largest mining-supply sector in the world More than 3700 companies provide a wide spec-trum of services to the Canadian mining industry with an increasing number of these being indigenous-owned businesses
A major challenge facing mining in Canadarsquos north today is its lack of infrastructure The north is our industryrsquos future but the territories and the northern parts of our provinces lack criti-cal infrastructuremdashroads electricity ports railwaysmdashto service mines and get products to market
This lack of infrastructure is felt by communities many of them indigenous located in the north
According to the Mining Association of Canadarsquos (MAC)
MINING AND INDIGENOUS PEOPLES CANADArsquoS FUTURE By Pierre Gratton
Delegates attending the 23rd Annual Conference of the Canadian Aboriginal Minerals Association in Vancouver listen to talks during the three-day event
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 24 2016-01-12 1054 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 25
FIRST NATIONS and MINING
research it costs about 2 to 25 times as much to build and operate a gold and base metal mine in northern Canada off grid than in the south
We should be looking at ways to level the playing field in the north where infrastructure is lacking Canada needs a strategic collaboration involving industry and governments federal pro-vincial territorial and Indigenous to get this nation-building infrastructure in place
This can be done by increasing government investment in new infrastructure or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good
Additionally there is the issue of indigenous rights and title and how this affects the project certainty
Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and if necessary accommo-dated for activities on traditional indigenous territories affects project timelines and certainty
Connected to this is the concept of social license which in general terms defines the support earned by proponents to pro-ceed with and operate their project
The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects
That is a very complex issue The Supreme Court of Canada in its recent decision on the
Tsilhqotrsquoin First Nationrsquos claim recognized indigenous title a first in Canadian law
It also provided clear guidance on the criteria needed to demonstrate title and on the rights and obligations that flow from that in the process also identifying where title was found not to exist
It is a significant decision that provides us all with much more clarity going forward
But back to the question of the vetoThe Court clearly recognizes that in some circumstances the
right to title can be limited by the Crown So there is no abso-lute veto under Canadian law even in the case where title has been proven
But for the Crown to place limits on indigenous title it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead ndash a very significant test
At its core the decision continues a balancing act between empowering and limiting the authority of both indigenous peo-ples and governments The Court was very wise
So what does this mean for proponents There is the law and then there is reality No proponent
wants or should want to build a project that is unwelcome or opposed by local communities This is quite frankly an unsus-tainable option and one best avoided And most communities are open to the opportunities mining brings and increasingly so
Letrsquos look at reality in a different way
Today there are more than 250 agreements between mining companies and indigenous communities across the country It is decidedly rare that projects proceed without impact benefit or other such agreements concluded
These agreements which have matured with time and experi-ence provide significant local benefits and assurances including
Commitments on business procurement and often assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide
Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight
Support for skills training and mentoringDirect economic or financial benefitsSome of these agreements are transforming communities in
very significant waysNewgoldrsquos New Afton project in Kamloops is one such exam-
ple The diamond mines in the NWT are others as is Voiseyrsquos Bay We are seeing high levels of indigenous participation as high as 60 per cent in the case of Voiseyrsquos Bay increasing levels of post-secondary education and significantly improved eco-nomic and social outcomes
Nonetheless it is undeniable that the negotiation of these agreements takes time Trust must be built between the parties and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the pro-posed mine prior to it proceeding
Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association Photo by Tracey Sanders Photography
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 25 2016-01-12 1054 AM
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
AME BCindd 27 2016-01-12 110 PM
28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Nfld Reportindd 30 2016-01-12 1055 AM
Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
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W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
- 002
- 003
- 004
- 005
- 006
- 007
- 008-009
- 010-015
- 016-019
- 020-021
- 022-023
- 024-026
- 027
- 028-030
- 031
- 032
- 033
- 034
- 035
- 036
-
No work was done during the 2015 season and the company has not yet announced whether it will commit anything this year
An Indigenous AdvantageDoes being an Aboriginal-owned venture mean DEMCo will get a better reception from investors or an easier ride through the Northrsquos rocky regulatory regime
ldquoWe havenrsquot really pushed itrdquo says Beaulieu ldquoWersquore focussed on doing our own thing for now It takes time to grasp and understand what is it you have [Wersquore ask-ing] the same type of questions that any junior asks wearing the same boots same gloves We know itrsquos a high-risk business but itrsquos a high reward too Whoever is in there has really got to manage and yoursquove got to be able to sustain your own neck In terms of the regulatory regime that is an independent process we respect it and expect to be treated like everyone elserdquo
In a February 2015 interview with the business magazine Corporate Knights he did allow that having the Dene communities at his own board table gives him a home-court advantage
ldquoI think community engagement is our competitive edge And that edge is available because we are a Northern Dene-owned com-
14 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Ground-level (above) and aerial (opposite page) of mill and camp at Terra Silver Mine near Great Bear Lake
Bradenindd 14 2016-01-12 1138 AM
pany And wersquore operating in a territory where indigenous people have a significant influence on our activityrdquo he said
Don Bubar as President and CEO of Avalon Rare Metals Inc and in previous roles with the PDAC is a passionate advocate for indigenous inclusion in Canadarsquos mining sector He believes that future mineral exploration in northern Canada will be led by indig-enous businesses
ldquoIt is natural that this participation would progress from a pas-sive one as a service provider to a more active one as an owner of a mineral development business with title to active projects Darrell Beaulieu and DEMCo are providing the leadership for the Dene Nation in going down this pathrdquo said Bubar in an email
ldquoPart of the challenge the industry faces is simply creating more public awareness of the importance of the industry to the northern economy especially for aboriginal communities Eco-activists have been successful in demonizing the industry in the North DEMCo has a key role to play in changing the perception that mineral exploration and development creates only unwanted environmental impacts without creating significant economic benefits for north-ernersrdquo CMJ
JANUARY 2016 CANADIAN MINING JOURNAL | 15
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FIRST NATIONS and MINING
Bradenindd 15 2016-01-12 1138 AM
COMMUNITY EFFORT HELPSSOLVE FISHWAY PROBLEMBy Russell Noble
PARTNERSHIPA WINNING
16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Shannon Haizimsque Chief Operating Officer of the Yinka Dene Economic Limited Partnership the commercial business arm of the Wetrsquosuwetrsquoen First Nations at the Huckleberry Mine site Adjacent photo shows a series of steps lined with geotextiles and anchored with rock fill as part of the minersquos Fish Compensation Plan
Huckleberryindd 16 2016-01-12 1052 AM
Almost everybody associates the name ldquoHuckleberryrdquo with Mark Twainrsquos Huckleberry Finn and his comrade Tom Sawyer but in the mining community Huckleberry is also the name of a Canadian mine that has been in production in northwestern British Columbia
since October 1997 Huckleberry Mines Ltd is an active open-pit coppermolyb-
denum mine located approximately 100km south of Houston BC Production rates (in 2014) were 34 million pounds of copper 2202 ounces of gold and 183218 ounces of silver and like many mines today itrsquos owned by a consortium of companies under one name Huckleberry Mines Ltd (HML) of Vancouver
The mine is owned and operated by Huckleberry Mines Ltd which in turn is owned 50 per cent by Imperial Metals Corporation of Vancouver and 50 per cent by a Japanese consor-tium including Mitsubishi Materials Corporation Dowa Mining Co Ltd and Furukawa Co
Partnering with First NationsSince 2013 Huckleberry Mines Ltd has signed communication amp partnership agreements with five separate First Nations orga-nizations Wetrsquosuwetrsquoen First Nation Cheslatta Carrier Nation Office of Wetrsquosuwetrsquoen Nee Tahi Buhn Indian Band and Skin Tyee Nation
Marke Wong Manager of Environmental amp Community Affairs for Huckleberry Mines Ltd says ldquoThese types of agree-ments have been instrumental in the success of Huckleberry Mine Because of the open dialogue with Indigenous communi-ties we have generated better understanding among all parties and this has increased First Nations access to economic opportu-nities such as job training employment and service contracts and has provided Huckleberry with dedicated community part-ners and a strong reliable work force and able contractorsrdquo
JANUARY 2016 CANADIAN MINING JOURNAL | 17
FIRST NATIONS and MININGHUCKLEBERRY MINE
Huckleberryindd 17 2016-01-12 1052 AM
18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
For example Wong says Huckleberry works directly with the economic development arm of its partners to provide training jobs and developing on-call labour contracts including the Yinka Dene Economic Development Limited Partnership (YLP) (Wetrsquosuwetrsquoen First Nation) the Nootsenay Enterprises (Cheslatta Carrier Nation) the Hunustrsquo ot en Investment Corp (Nee Tahi Buhn Indian Band) and the Skin Tyee Nation
He says that in 2014 and 2015 the company spent more than 1200 hours of on-the-job training to students and interns from the Wetrsquosuwetrsquoen and Cheslatta Carrier First Nations who recently graduated from the Northwest Community Collegersquos School of Exploration and Mining Environmental Monitoring Assistant Program (EMAP) and other programs
In keeping with Huckleberryrsquos involvement with the commu-nity the company also supports the College of New Caledoniarsquos Mineral Processing Assistants Course by providing instructors on-site mill tours and job opportunities at the mine Several member of the Nee Tahi Buhn Indian Band have been working as on-call positions as environmental monitors and confined space guards in the mill Huckleberry staff regularly respond to community requests to attend speak and sponsor community events such as career days annual meetings mine tours and traditional community gatherings
ldquoDeveloping successful mining arrangements with Indigenous people isnrsquot only about technical astuteness itrsquos about relation-ships reconciliation and the balancing of interestsrdquo says Wong
Itrsquos obvious from these brief examples that Huckleberry Mines Ltd is taking its work with the First Nations seriously but itrsquos more than that
Mike Robertson Chief Policy Advisor Cheslatta Carrier Nation says ldquoIn 2005 the Cheslatta Carrier Nation challenged the mine of its commitment to sound environmental manage-ment During the subsequent 10 years Huckleberry manage-ment and staff committed to engage our people directly in planning and implementing a progressive reclamation program of old mining zone areas and in the development of new zones
Just like the re-vegetated dams and tailings sites our environ-mental relationship has blossomed toordquo
Chief Rene Skin Skin Tyee Nation added ldquoMarke Wong of Huckleberry Mines has participated in our Nationrsquos annual gath-erings including community open houses and cultural camps Hersquos engaged directly with our youth and elders for the past two years He has been diligent in keeping us informed of changes to the on-going miner operation and opportunities for our peoplerdquo
Managing Impacts and Restoring the LandLike all mining therersquos a certain impact to the natural environ-ment and following the closure of a mine there are permanent changes to the landscape The Huckleberry Mine is no exception
Conventional drilling blasting loading and hauling using a combination of electric drills and shovels diesel hydraulic exca-vators and both 100 and 150-ton diesel-powered haul trucks are used to process approximately 17000 tonnes of ore a day
Milling is accomplished by grinding the ore in a 975m diam-eter SAG mill and then through two ball mills The resulting slurry is processed by flotation to produce a concentrate of 27 per cent copper that is subsequently shipped by truck to the port at Stewart for storage and shipment to Japan
Tailings from the milling process is discharged into a tailings management facility and supernatant water is discharged to the aquatic environment through a pipeline to a submersed outfall and diffuser located in Tahtsa Reach part of a man-made hydro-power reservoir developed in the 1950s All water discharged falls within their provincial and federal permit limits
With this comes noise dust and all of the other factors asso-ciated with mining but as mentioned earlier Huckleberry Mines Ltd is aware of the situation and addresses them through its Environment and Community Affairs Program which includes a Fish Habitat Compensation Program
And itrsquos because of its efforts in this area that Huckleberry Mines Ltd recently received the 2014 BC Metal Mine Reclamation Award from the BC Technical Research Committee
Aerial photo of Huckleberry Mine located between Huckleberry Mountain and Tahtsa Reach
Huckleberryindd 18 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 19
on Reclamation (BCTRCR) and the Mining Association of BC (MABC) in recognition for outstanding practices in its fish habitat restoration program a program that actually increased the available fish habitat in the area of the mine as well as its successful relationship building efforts with First Nations
Even before the mine was built the company recognized that its minersquos footprint could have an impact on the available fisher-ies habitat in the area In particular ldquoCreek 4rdquo a known fish-bearing stream was expected to be impacted and so a plan was made to conduct some habitat enhancements in the area
Fisheries surveys conducted by Hatfield Consultants of North Vancouver identified nearby ldquoCreek Mrdquo which at the time was not a fish-bearing stream due to a naturally occurring barrier to fish ndashie a steep gradient reach that stopped any fish from reaching a headwater pond
Huckleberry Minersquos plan involved constructing a series of steps or weirs lined with geotextiles and anchored with rock fill These works were constructed by a team from Cariboo Divers from designs prepared by Hatfield Consultants
Subsequent fish surveys conducted between 2001 and 2011 showed initial success and that adult rainbow trout were present in the headwater pond and juveniles were present in the lower reaches
However subsequent surveys conducted between 2008 and 2011 indicated that the juvenile fish numbers decreased to record lows in 2011 The decline in fish numbers was attributed to failure of the weirs in the lower and middle fishways causing juveniles to become stranded in isolated pools and precluding adults from reaching the preferred spawning habitat between the lower and middle fishways
When initial monitoring of the remediated area in 2013 and 2014 was conducted Environmental Monitoring Assistants from the Yinka Dene Economic Limited Partnership and the Nootsenay Enterprises Ltd were called to assist in the evaluation of the stability of the constructed works as well as presence of fish and the structural integrity of the fishways have remained intact through high-flow periods with no erosion or undermin-ing of the weir structures
Cody Reid Deputy Chief amp Environmental Coordinator Nee Tahi Buhn Indian Band said ldquoThe design construction monitoring and maintenance of the Creek M fishway has led to an overall net increase in fish habitat in the area surrounding the mine in Tahtsa Reachrdquo
And David Belford Mineral and Natural Resources Liaison Officer Wetrsquosuwetrsquoen addedrdquo The HML Environmental team and participating consultants are to be commended on their proactive approach to reclaiming the fish habitat and to increas-ing that habitat within the mine footrdquo
During the 2013 fish survey 39 rainbow trout were captured the largest number of fish observed since 2008 These observa-tions were made even while construction of the middle reach fishways was ongoing
Marke Wong says that Huckleberryrsquos plans are to continue monitoring to confirm the effectiveness of the restoration work including hydraulic functioning physical stability and structural integrity fish distribution and net gain
From the operation of a mine in the mountains to the refur-bishing of a fishway in a local waterway Huckleberry Mines Ltd continues to show its appreciation and respect for the environment and the First Nations communities it works with in British Columbia
Perhaps the most important message for industry is that the example set by Huckleberry Mine and its First Nation commu-nity partners demonstrates that when parties begin to have meaningful dialogue and understanding develops on both sides then the path to cooperation and partnership is open
In the case of Huckleberry Mine this has led to the devel-opment of partnerships that have helped it expand its opera-tions and have help provide support during tough economic times
The nomination of Huckleberry Mines Ltd for the 2014 BC Metal Mine Reclamation Award came from its First Nation Partners because as Chief Karen Ogen said ldquoOur partnership with Huckleberry Mines has made a big difference in our small community Since the 2013 partnership agreement was signed our people have benefitted from jobs training and business opportunities Our experience with Huckleberry has been very positive and we have greatly appreciated Huckleberryrsquos efforts to engage with our community and to work with our business arm the Yinka Dene Economic Partnership The Wetrsquosuwetrsquoen First Nation is very pleased to nominate Huckleberry Mines for this awardrdquo
And lastly Mike Robertson added ldquo The Cheslatta Carrier Nation has been a successful Huckleberry Mines Limited con-tractor on a number of projects including a tailings dam We have our members employed by Huckleberry Mines and we maintain regular contact with its staff and management on all aspects of operations We support the nomination because we are confident they will continue and enhance their innovative and progressive practices of returning the land to a near natural self-sustaining staterdquo CMJ
FIRST NATIONS and MININGHUCKLEBERRY MINE
Material for Huckleberry Minersquos step-building program being delivered to the site by helicopter
Huckleberryindd 19 2016-01-12 1141 AM
20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
FIRST NATIONS COMPANY PROVIDES VITAL ROADBUILDING SERVICES
TO REMOTE COMMUNITIESStaff Report
REWARDSROADto
Creeindd 20 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 21
FIRST NATIONS and MINING
K imesskanemenow is a Cree word that means ldquoThis is our Roadrdquo a fitting name for the winter road management company that is owned and operated by four northern First Nations Attawapiskat Fort
Albany Kashechewan and Moose Cree Their company Kimesskanemenow Corporation (also
known as K Corp) was founded in 2001 and for the past 15 years has been responsible for building and maintaining the Western James Bay Winter Road (JBWR) which starts in Moosonee and travels 312km up the western coast of James Bay connecting the communities of Fort Albany and Kashechewan and eventually ending at the Attawapiskat First Nation
The road is a lifeline to the remote areas in the James Bay Lowlands of Northern Ontario and without it existing and future development of this part of the country would not be possible
In fact itrsquos thanks to the road that K Corp helped build that companies like De Beers Canada are in the north
As most people know De Beers Canada made international headlines when it built the Victor Mine in 2006 (the first dia-mond mine in Ontario at a cost of about $1 billion) approxi-mately 90km west of the coastal community of Attawapiskat First Nation
Since the open-pit mine began production in 2008 with an annual tonne processing capacity of about 27 million tonnes and an annual carat production capacity of 600000 carats it has proven to be a key to Northern Ontario development and its communities
With an estimated mine life to 2018 the Victor Minersquos ener-gy and equipment needs will continue for at least two more years and according to K Corp cannot be met without the JBWR
Air transport is prohibitively expensive so the winter road is considered by far the most affordable way to supply the remote mine with the necessary 450 loads of cargo and 10 to 11 million litres of diesel fuel that it consumes each year
But the Victor Mine is not the only site that requires a reliable supply of goods and services Similar transportation challenges also face other remote northern First Nations communities that need to truck goods and fuel via seasonal winter roads
With the exception of Moose Cree First Nation which has a railway line to Cochrane air travel is the only transportation available year-round for the three other First Nations which for most community residents is prohibitively expensive
Thanks again to the JBWR it provides a critical socio-eco-nomic tie between the communities as well as a significant source of employment and to keep relationship going Kimesskanemenow Corporation and De Beers Canada have entered into a productive partnership
In 2004 the two parties signed a Winter Road Agreement which was re-negotiated in 2014 Under the agreement De Beers pays the bulk of the costs of the roadrsquos construction and maintenance costs while the balance of the costs are provided by the Provincial and Federal governments
Kimesskanemenow Corporation is guided by three central priorities Building capacity in its communities ensuring that its
member communities receive maximum benefits and mainte-nance of traditional culture which naturally includes environ-mental protection
The company also ensures that money from building and main-taining the road stays in the hands of local First Nation members
To do this the road is constructed and maintained entirely by local community members either as direct employees or through local contractors This has required developing capacity which the company has done through training and education programs
The practical effect of these guiding principals is that during the winter months roughly 200 individuals work on the road helping ensure that the road brings economic benefits to individ-uals families and communities
For many seasonal employment gained through constructing and maintaining the winter road is the only consistently avail-able work in the community Furthermore dividends from the company go back to the hands of the communities to be used as they see fit
Finally Kimesskanemenow Corporation donates to commu-nity-based initiatives that will benefit the communities with each of the four communities allotted an annual amount
Reflecting the corporationrsquos central values the money is used to fund initiatives that benefit youth the environment or main-tain traditional ways of living
One example of the programs that the corporation helps fund is CreeFest a celebration of Cree culture that is held annually in the Mushkegowuk communities
The company also funds the Edward W Chilton scholarship at Northern College in honour of the late Ed Chilton the com-panyrsquos first president The scholarship is awarded to community members to further their education
K Corprsquos list of smaller grants available online include many community and cultural programs that maintain the vitality of all these communities
Kimesskanemenow Corporation maintains an important piece of infrastructure that benefits the communities and allows for the ongoing operation of the Victor Diamond Mine As a cooperative venture the corporation has proven itself to be invaluable to both the communities and the mining company CMJ
Thanks to the efforts of K Corp the Western James Bay Winter Road provides access to the remote areas of Northern Ontario
Creeindd 21 2016-01-12 1052 AM
22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
WHERE WE STANDSERIOUS QUESTIONS DESERVE SOME SERIOUS ANSWERS Staff Report
I trsquos been just over a year since the Native Womenrsquos Association of Canada (NWAC) received funding from Aboriginal Affairs and Northern Development Canada (AANDC) to identify and ask questions about the barriers
indigenous women face and secondly to get direct and honest answers as to what are the realistic opportunities for them in the mining industry
Basically as the headline says they want to know where they stand insofar as their positions within the mining industry are concerned
The questions NWAC put on the table at a recent forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development dealt with two perspectives the first looked into resource development corporations and sought to understand what these corporations knew about aboriginal women and the second was from aboriginal women and how they viewed the mining industry with regards to economic devel-opment and employment opportunities
The forum was attended by an impressive gathering of female indigenous leaders and representatives from the resource devel-opment sector A full list of the participants is featured in the adjacent box
The intent of the engagementdiscussion session was to initi-ate a constructive dialogue amongst the participants with the overall goal of
s increasing the labour market participation of indigenous women in the resource development sector
s ensuring indigenous womenrsquos voices are heard in the devel-opment of these projects
s sharing of information on the industry and
s discussing the various opportunities and barriers facing indigenous women who wish to work in the industry
A DISTINGUISHED PANEL OF WOMEN ATTEND OTTAWA FORUM
Siobhan Dooley Hatch EngineeringGrant Goddard New Gold Inc (Rainy River Project)Karina Kesserwan Kesserwan (Law ndash Strategy ndash Solutions)Stacey Jack New Gold Inc (Rainy River Project)Christopher Lefebvre Aramark CanadaMireille Pilotte New Millennium IronRachel Pineault Detour Gold CorporationKate Rafter Employment and Social Development CanadaLouise Reid-Schloen Hydro OttawaJamie Saulnier Running Deer ResourcesNancy Veal Resolute Forest ProductsMarilyn Capreol Shawanaga First NationPamela Eyles BC Native Womenrsquos AssociationSusan Forth Shawanaga First NationElize Hartley Ontario Native Womenrsquos AssociationMarian Horne Yukon Aboriginal Womenrsquos CouncilNoreen McAteer Alberta Aboriginal Womenrsquos SocietyVerna Polson Quebec Native Women IncTori-Lynn Wanotch Saskatchewan Aboriginal Womenrsquos Circle CorpBeverly Blanchard Native Womenrsquos Association of CanadaSydney Ducharme Native Womenrsquos Association of CanadaClaudette Dumont-Smith Native Womenrsquos Association of CanadaDan Peters Native Womenrsquos Association of CanadaMerv McLeod McLeod-Wood Associates IncNancy Wood McLeod-Wood Associates Inc
Beverly Blanchard (standing) of the Native Womenrsquos Association of Canada addresses delegates attending a forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development
Women in Miningindd 22 2016-01-12 1053 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 23
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
andor economic opportunitiesFor example when impact benefit agreements (IBAs) are
completed they tend to be locally focused and may not consider indigenous women that do not reside in the community or indigenous individuals who are not members of the particular community
From the indigenous womenrsquos perspective at the forum it was noted that indigenous womenrsquos opinions on the resource devel-opment sector were varied and divergent Like most things in life there were some women who are in favour of the mining industry and there are some who are against it
Many who are against the sector perceived it to be counter to the traditional role of indigenous women as water-keepers and caretakers of Mother Earth but on the other hand research found that there was also a significant percentage of indigenous women who were ambivalent towards the industry
Due to length and detail of the forum (from which this article is based) the information has been drastically reduced to fit the space
For complete details and a copy of the full Bridging the Gap Aboriginal Women and Resource Development Report please contact Beverly Blanchard Strategic Policy Partnership and Planning NWAC Ottawa bblanchardnwacca CMJ
INDIGENOUS WOMEN and MINING
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d e P e n d a B L e P r o J e c t d e v e L o P M e n t
Women in Miningindd 23 2016-01-12 1053 AM
24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
A s probably many of you know times are tough right now Commodity prices are slumping across the board affected by an overall slowing global economy that is being felt throughout Canada
But even during a stubborn downturn in global demand for many minerals and metals itrsquos no time to get down on mining because mining never goes away
Minerals and metals are the very foundation of virtually all of the goods we depend on in our daily lives The world will con-tinue to need mining and Canada can and should continue to be an important place where mining happens
A Look at Market ConditionsSo first how bad is the market
Global economic growth has been volatile in recent years Every time the Bank of Canada the IMF World Bank or others make growth projections it seems they amend them a few months later and always downwards With few exceptions the global economy is not doing well at all
The key economy for the mining sector is China which today consumes almost 50 per cent of the worldrsquos minerals and metals And Chinarsquos growth rate has been slowing along with growth rates in other emerging markets like Brazil Mexico and several Asian and African countries that are also falling
The one major exception is India whose growth is around 75 per cent and with its 13 billion people is seen as the next China in terms of minerals and metals consumption as the coun-try begins to rapidly industrialize
A Bedrock of the Canadian EconomyEven in a slump miningrsquos contribution to Canada is enormous
Despite some job losses at some operations mining and min-eral processing are directly employing more than 375000 Canadians including well over 10000 Indigenous Canadians paying the highest average industrial wage in the country Mining remains proportionally the largest employer of indige-nous Canadians
Mining accounts for roughly 20 per cent of the overall value of Canadian exports valued at nearly $90 billion
Nationally we pay an average of $38 billion annually in corporate taxes and royalties to federal provincial and territorial governments
Mining companies are also paying significant royalties to indig-enous communities across the country indirectly through govern-ment resource revenue sharing and in some cases directly
Wersquore also supporting the second largest mining-supply sector in the world More than 3700 companies provide a wide spec-trum of services to the Canadian mining industry with an increasing number of these being indigenous-owned businesses
A major challenge facing mining in Canadarsquos north today is its lack of infrastructure The north is our industryrsquos future but the territories and the northern parts of our provinces lack criti-cal infrastructuremdashroads electricity ports railwaysmdashto service mines and get products to market
This lack of infrastructure is felt by communities many of them indigenous located in the north
According to the Mining Association of Canadarsquos (MAC)
MINING AND INDIGENOUS PEOPLES CANADArsquoS FUTURE By Pierre Gratton
Delegates attending the 23rd Annual Conference of the Canadian Aboriginal Minerals Association in Vancouver listen to talks during the three-day event
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 24 2016-01-12 1054 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 25
FIRST NATIONS and MINING
research it costs about 2 to 25 times as much to build and operate a gold and base metal mine in northern Canada off grid than in the south
We should be looking at ways to level the playing field in the north where infrastructure is lacking Canada needs a strategic collaboration involving industry and governments federal pro-vincial territorial and Indigenous to get this nation-building infrastructure in place
This can be done by increasing government investment in new infrastructure or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good
Additionally there is the issue of indigenous rights and title and how this affects the project certainty
Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and if necessary accommo-dated for activities on traditional indigenous territories affects project timelines and certainty
Connected to this is the concept of social license which in general terms defines the support earned by proponents to pro-ceed with and operate their project
The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects
That is a very complex issue The Supreme Court of Canada in its recent decision on the
Tsilhqotrsquoin First Nationrsquos claim recognized indigenous title a first in Canadian law
It also provided clear guidance on the criteria needed to demonstrate title and on the rights and obligations that flow from that in the process also identifying where title was found not to exist
It is a significant decision that provides us all with much more clarity going forward
But back to the question of the vetoThe Court clearly recognizes that in some circumstances the
right to title can be limited by the Crown So there is no abso-lute veto under Canadian law even in the case where title has been proven
But for the Crown to place limits on indigenous title it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead ndash a very significant test
At its core the decision continues a balancing act between empowering and limiting the authority of both indigenous peo-ples and governments The Court was very wise
So what does this mean for proponents There is the law and then there is reality No proponent
wants or should want to build a project that is unwelcome or opposed by local communities This is quite frankly an unsus-tainable option and one best avoided And most communities are open to the opportunities mining brings and increasingly so
Letrsquos look at reality in a different way
Today there are more than 250 agreements between mining companies and indigenous communities across the country It is decidedly rare that projects proceed without impact benefit or other such agreements concluded
These agreements which have matured with time and experi-ence provide significant local benefits and assurances including
Commitments on business procurement and often assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide
Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight
Support for skills training and mentoringDirect economic or financial benefitsSome of these agreements are transforming communities in
very significant waysNewgoldrsquos New Afton project in Kamloops is one such exam-
ple The diamond mines in the NWT are others as is Voiseyrsquos Bay We are seeing high levels of indigenous participation as high as 60 per cent in the case of Voiseyrsquos Bay increasing levels of post-secondary education and significantly improved eco-nomic and social outcomes
Nonetheless it is undeniable that the negotiation of these agreements takes time Trust must be built between the parties and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the pro-posed mine prior to it proceeding
Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association Photo by Tracey Sanders Photography
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 25 2016-01-12 1054 AM
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
AME BCindd 27 2016-01-12 110 PM
28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Nfld Reportindd 30 2016-01-12 1055 AM
Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
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W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
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pany And wersquore operating in a territory where indigenous people have a significant influence on our activityrdquo he said
Don Bubar as President and CEO of Avalon Rare Metals Inc and in previous roles with the PDAC is a passionate advocate for indigenous inclusion in Canadarsquos mining sector He believes that future mineral exploration in northern Canada will be led by indig-enous businesses
ldquoIt is natural that this participation would progress from a pas-sive one as a service provider to a more active one as an owner of a mineral development business with title to active projects Darrell Beaulieu and DEMCo are providing the leadership for the Dene Nation in going down this pathrdquo said Bubar in an email
ldquoPart of the challenge the industry faces is simply creating more public awareness of the importance of the industry to the northern economy especially for aboriginal communities Eco-activists have been successful in demonizing the industry in the North DEMCo has a key role to play in changing the perception that mineral exploration and development creates only unwanted environmental impacts without creating significant economic benefits for north-ernersrdquo CMJ
JANUARY 2016 CANADIAN MINING JOURNAL | 15
Mining Contractors and Engineers
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FIRST NATIONS and MINING
Bradenindd 15 2016-01-12 1138 AM
COMMUNITY EFFORT HELPSSOLVE FISHWAY PROBLEMBy Russell Noble
PARTNERSHIPA WINNING
16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Shannon Haizimsque Chief Operating Officer of the Yinka Dene Economic Limited Partnership the commercial business arm of the Wetrsquosuwetrsquoen First Nations at the Huckleberry Mine site Adjacent photo shows a series of steps lined with geotextiles and anchored with rock fill as part of the minersquos Fish Compensation Plan
Huckleberryindd 16 2016-01-12 1052 AM
Almost everybody associates the name ldquoHuckleberryrdquo with Mark Twainrsquos Huckleberry Finn and his comrade Tom Sawyer but in the mining community Huckleberry is also the name of a Canadian mine that has been in production in northwestern British Columbia
since October 1997 Huckleberry Mines Ltd is an active open-pit coppermolyb-
denum mine located approximately 100km south of Houston BC Production rates (in 2014) were 34 million pounds of copper 2202 ounces of gold and 183218 ounces of silver and like many mines today itrsquos owned by a consortium of companies under one name Huckleberry Mines Ltd (HML) of Vancouver
The mine is owned and operated by Huckleberry Mines Ltd which in turn is owned 50 per cent by Imperial Metals Corporation of Vancouver and 50 per cent by a Japanese consor-tium including Mitsubishi Materials Corporation Dowa Mining Co Ltd and Furukawa Co
Partnering with First NationsSince 2013 Huckleberry Mines Ltd has signed communication amp partnership agreements with five separate First Nations orga-nizations Wetrsquosuwetrsquoen First Nation Cheslatta Carrier Nation Office of Wetrsquosuwetrsquoen Nee Tahi Buhn Indian Band and Skin Tyee Nation
Marke Wong Manager of Environmental amp Community Affairs for Huckleberry Mines Ltd says ldquoThese types of agree-ments have been instrumental in the success of Huckleberry Mine Because of the open dialogue with Indigenous communi-ties we have generated better understanding among all parties and this has increased First Nations access to economic opportu-nities such as job training employment and service contracts and has provided Huckleberry with dedicated community part-ners and a strong reliable work force and able contractorsrdquo
JANUARY 2016 CANADIAN MINING JOURNAL | 17
FIRST NATIONS and MININGHUCKLEBERRY MINE
Huckleberryindd 17 2016-01-12 1052 AM
18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
For example Wong says Huckleberry works directly with the economic development arm of its partners to provide training jobs and developing on-call labour contracts including the Yinka Dene Economic Development Limited Partnership (YLP) (Wetrsquosuwetrsquoen First Nation) the Nootsenay Enterprises (Cheslatta Carrier Nation) the Hunustrsquo ot en Investment Corp (Nee Tahi Buhn Indian Band) and the Skin Tyee Nation
He says that in 2014 and 2015 the company spent more than 1200 hours of on-the-job training to students and interns from the Wetrsquosuwetrsquoen and Cheslatta Carrier First Nations who recently graduated from the Northwest Community Collegersquos School of Exploration and Mining Environmental Monitoring Assistant Program (EMAP) and other programs
In keeping with Huckleberryrsquos involvement with the commu-nity the company also supports the College of New Caledoniarsquos Mineral Processing Assistants Course by providing instructors on-site mill tours and job opportunities at the mine Several member of the Nee Tahi Buhn Indian Band have been working as on-call positions as environmental monitors and confined space guards in the mill Huckleberry staff regularly respond to community requests to attend speak and sponsor community events such as career days annual meetings mine tours and traditional community gatherings
ldquoDeveloping successful mining arrangements with Indigenous people isnrsquot only about technical astuteness itrsquos about relation-ships reconciliation and the balancing of interestsrdquo says Wong
Itrsquos obvious from these brief examples that Huckleberry Mines Ltd is taking its work with the First Nations seriously but itrsquos more than that
Mike Robertson Chief Policy Advisor Cheslatta Carrier Nation says ldquoIn 2005 the Cheslatta Carrier Nation challenged the mine of its commitment to sound environmental manage-ment During the subsequent 10 years Huckleberry manage-ment and staff committed to engage our people directly in planning and implementing a progressive reclamation program of old mining zone areas and in the development of new zones
Just like the re-vegetated dams and tailings sites our environ-mental relationship has blossomed toordquo
Chief Rene Skin Skin Tyee Nation added ldquoMarke Wong of Huckleberry Mines has participated in our Nationrsquos annual gath-erings including community open houses and cultural camps Hersquos engaged directly with our youth and elders for the past two years He has been diligent in keeping us informed of changes to the on-going miner operation and opportunities for our peoplerdquo
Managing Impacts and Restoring the LandLike all mining therersquos a certain impact to the natural environ-ment and following the closure of a mine there are permanent changes to the landscape The Huckleberry Mine is no exception
Conventional drilling blasting loading and hauling using a combination of electric drills and shovels diesel hydraulic exca-vators and both 100 and 150-ton diesel-powered haul trucks are used to process approximately 17000 tonnes of ore a day
Milling is accomplished by grinding the ore in a 975m diam-eter SAG mill and then through two ball mills The resulting slurry is processed by flotation to produce a concentrate of 27 per cent copper that is subsequently shipped by truck to the port at Stewart for storage and shipment to Japan
Tailings from the milling process is discharged into a tailings management facility and supernatant water is discharged to the aquatic environment through a pipeline to a submersed outfall and diffuser located in Tahtsa Reach part of a man-made hydro-power reservoir developed in the 1950s All water discharged falls within their provincial and federal permit limits
With this comes noise dust and all of the other factors asso-ciated with mining but as mentioned earlier Huckleberry Mines Ltd is aware of the situation and addresses them through its Environment and Community Affairs Program which includes a Fish Habitat Compensation Program
And itrsquos because of its efforts in this area that Huckleberry Mines Ltd recently received the 2014 BC Metal Mine Reclamation Award from the BC Technical Research Committee
Aerial photo of Huckleberry Mine located between Huckleberry Mountain and Tahtsa Reach
Huckleberryindd 18 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 19
on Reclamation (BCTRCR) and the Mining Association of BC (MABC) in recognition for outstanding practices in its fish habitat restoration program a program that actually increased the available fish habitat in the area of the mine as well as its successful relationship building efforts with First Nations
Even before the mine was built the company recognized that its minersquos footprint could have an impact on the available fisher-ies habitat in the area In particular ldquoCreek 4rdquo a known fish-bearing stream was expected to be impacted and so a plan was made to conduct some habitat enhancements in the area
Fisheries surveys conducted by Hatfield Consultants of North Vancouver identified nearby ldquoCreek Mrdquo which at the time was not a fish-bearing stream due to a naturally occurring barrier to fish ndashie a steep gradient reach that stopped any fish from reaching a headwater pond
Huckleberry Minersquos plan involved constructing a series of steps or weirs lined with geotextiles and anchored with rock fill These works were constructed by a team from Cariboo Divers from designs prepared by Hatfield Consultants
Subsequent fish surveys conducted between 2001 and 2011 showed initial success and that adult rainbow trout were present in the headwater pond and juveniles were present in the lower reaches
However subsequent surveys conducted between 2008 and 2011 indicated that the juvenile fish numbers decreased to record lows in 2011 The decline in fish numbers was attributed to failure of the weirs in the lower and middle fishways causing juveniles to become stranded in isolated pools and precluding adults from reaching the preferred spawning habitat between the lower and middle fishways
When initial monitoring of the remediated area in 2013 and 2014 was conducted Environmental Monitoring Assistants from the Yinka Dene Economic Limited Partnership and the Nootsenay Enterprises Ltd were called to assist in the evaluation of the stability of the constructed works as well as presence of fish and the structural integrity of the fishways have remained intact through high-flow periods with no erosion or undermin-ing of the weir structures
Cody Reid Deputy Chief amp Environmental Coordinator Nee Tahi Buhn Indian Band said ldquoThe design construction monitoring and maintenance of the Creek M fishway has led to an overall net increase in fish habitat in the area surrounding the mine in Tahtsa Reachrdquo
And David Belford Mineral and Natural Resources Liaison Officer Wetrsquosuwetrsquoen addedrdquo The HML Environmental team and participating consultants are to be commended on their proactive approach to reclaiming the fish habitat and to increas-ing that habitat within the mine footrdquo
During the 2013 fish survey 39 rainbow trout were captured the largest number of fish observed since 2008 These observa-tions were made even while construction of the middle reach fishways was ongoing
Marke Wong says that Huckleberryrsquos plans are to continue monitoring to confirm the effectiveness of the restoration work including hydraulic functioning physical stability and structural integrity fish distribution and net gain
From the operation of a mine in the mountains to the refur-bishing of a fishway in a local waterway Huckleberry Mines Ltd continues to show its appreciation and respect for the environment and the First Nations communities it works with in British Columbia
Perhaps the most important message for industry is that the example set by Huckleberry Mine and its First Nation commu-nity partners demonstrates that when parties begin to have meaningful dialogue and understanding develops on both sides then the path to cooperation and partnership is open
In the case of Huckleberry Mine this has led to the devel-opment of partnerships that have helped it expand its opera-tions and have help provide support during tough economic times
The nomination of Huckleberry Mines Ltd for the 2014 BC Metal Mine Reclamation Award came from its First Nation Partners because as Chief Karen Ogen said ldquoOur partnership with Huckleberry Mines has made a big difference in our small community Since the 2013 partnership agreement was signed our people have benefitted from jobs training and business opportunities Our experience with Huckleberry has been very positive and we have greatly appreciated Huckleberryrsquos efforts to engage with our community and to work with our business arm the Yinka Dene Economic Partnership The Wetrsquosuwetrsquoen First Nation is very pleased to nominate Huckleberry Mines for this awardrdquo
And lastly Mike Robertson added ldquo The Cheslatta Carrier Nation has been a successful Huckleberry Mines Limited con-tractor on a number of projects including a tailings dam We have our members employed by Huckleberry Mines and we maintain regular contact with its staff and management on all aspects of operations We support the nomination because we are confident they will continue and enhance their innovative and progressive practices of returning the land to a near natural self-sustaining staterdquo CMJ
FIRST NATIONS and MININGHUCKLEBERRY MINE
Material for Huckleberry Minersquos step-building program being delivered to the site by helicopter
Huckleberryindd 19 2016-01-12 1141 AM
20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
FIRST NATIONS COMPANY PROVIDES VITAL ROADBUILDING SERVICES
TO REMOTE COMMUNITIESStaff Report
REWARDSROADto
Creeindd 20 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 21
FIRST NATIONS and MINING
K imesskanemenow is a Cree word that means ldquoThis is our Roadrdquo a fitting name for the winter road management company that is owned and operated by four northern First Nations Attawapiskat Fort
Albany Kashechewan and Moose Cree Their company Kimesskanemenow Corporation (also
known as K Corp) was founded in 2001 and for the past 15 years has been responsible for building and maintaining the Western James Bay Winter Road (JBWR) which starts in Moosonee and travels 312km up the western coast of James Bay connecting the communities of Fort Albany and Kashechewan and eventually ending at the Attawapiskat First Nation
The road is a lifeline to the remote areas in the James Bay Lowlands of Northern Ontario and without it existing and future development of this part of the country would not be possible
In fact itrsquos thanks to the road that K Corp helped build that companies like De Beers Canada are in the north
As most people know De Beers Canada made international headlines when it built the Victor Mine in 2006 (the first dia-mond mine in Ontario at a cost of about $1 billion) approxi-mately 90km west of the coastal community of Attawapiskat First Nation
Since the open-pit mine began production in 2008 with an annual tonne processing capacity of about 27 million tonnes and an annual carat production capacity of 600000 carats it has proven to be a key to Northern Ontario development and its communities
With an estimated mine life to 2018 the Victor Minersquos ener-gy and equipment needs will continue for at least two more years and according to K Corp cannot be met without the JBWR
Air transport is prohibitively expensive so the winter road is considered by far the most affordable way to supply the remote mine with the necessary 450 loads of cargo and 10 to 11 million litres of diesel fuel that it consumes each year
But the Victor Mine is not the only site that requires a reliable supply of goods and services Similar transportation challenges also face other remote northern First Nations communities that need to truck goods and fuel via seasonal winter roads
With the exception of Moose Cree First Nation which has a railway line to Cochrane air travel is the only transportation available year-round for the three other First Nations which for most community residents is prohibitively expensive
Thanks again to the JBWR it provides a critical socio-eco-nomic tie between the communities as well as a significant source of employment and to keep relationship going Kimesskanemenow Corporation and De Beers Canada have entered into a productive partnership
In 2004 the two parties signed a Winter Road Agreement which was re-negotiated in 2014 Under the agreement De Beers pays the bulk of the costs of the roadrsquos construction and maintenance costs while the balance of the costs are provided by the Provincial and Federal governments
Kimesskanemenow Corporation is guided by three central priorities Building capacity in its communities ensuring that its
member communities receive maximum benefits and mainte-nance of traditional culture which naturally includes environ-mental protection
The company also ensures that money from building and main-taining the road stays in the hands of local First Nation members
To do this the road is constructed and maintained entirely by local community members either as direct employees or through local contractors This has required developing capacity which the company has done through training and education programs
The practical effect of these guiding principals is that during the winter months roughly 200 individuals work on the road helping ensure that the road brings economic benefits to individ-uals families and communities
For many seasonal employment gained through constructing and maintaining the winter road is the only consistently avail-able work in the community Furthermore dividends from the company go back to the hands of the communities to be used as they see fit
Finally Kimesskanemenow Corporation donates to commu-nity-based initiatives that will benefit the communities with each of the four communities allotted an annual amount
Reflecting the corporationrsquos central values the money is used to fund initiatives that benefit youth the environment or main-tain traditional ways of living
One example of the programs that the corporation helps fund is CreeFest a celebration of Cree culture that is held annually in the Mushkegowuk communities
The company also funds the Edward W Chilton scholarship at Northern College in honour of the late Ed Chilton the com-panyrsquos first president The scholarship is awarded to community members to further their education
K Corprsquos list of smaller grants available online include many community and cultural programs that maintain the vitality of all these communities
Kimesskanemenow Corporation maintains an important piece of infrastructure that benefits the communities and allows for the ongoing operation of the Victor Diamond Mine As a cooperative venture the corporation has proven itself to be invaluable to both the communities and the mining company CMJ
Thanks to the efforts of K Corp the Western James Bay Winter Road provides access to the remote areas of Northern Ontario
Creeindd 21 2016-01-12 1052 AM
22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
WHERE WE STANDSERIOUS QUESTIONS DESERVE SOME SERIOUS ANSWERS Staff Report
I trsquos been just over a year since the Native Womenrsquos Association of Canada (NWAC) received funding from Aboriginal Affairs and Northern Development Canada (AANDC) to identify and ask questions about the barriers
indigenous women face and secondly to get direct and honest answers as to what are the realistic opportunities for them in the mining industry
Basically as the headline says they want to know where they stand insofar as their positions within the mining industry are concerned
The questions NWAC put on the table at a recent forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development dealt with two perspectives the first looked into resource development corporations and sought to understand what these corporations knew about aboriginal women and the second was from aboriginal women and how they viewed the mining industry with regards to economic devel-opment and employment opportunities
The forum was attended by an impressive gathering of female indigenous leaders and representatives from the resource devel-opment sector A full list of the participants is featured in the adjacent box
The intent of the engagementdiscussion session was to initi-ate a constructive dialogue amongst the participants with the overall goal of
s increasing the labour market participation of indigenous women in the resource development sector
s ensuring indigenous womenrsquos voices are heard in the devel-opment of these projects
s sharing of information on the industry and
s discussing the various opportunities and barriers facing indigenous women who wish to work in the industry
A DISTINGUISHED PANEL OF WOMEN ATTEND OTTAWA FORUM
Siobhan Dooley Hatch EngineeringGrant Goddard New Gold Inc (Rainy River Project)Karina Kesserwan Kesserwan (Law ndash Strategy ndash Solutions)Stacey Jack New Gold Inc (Rainy River Project)Christopher Lefebvre Aramark CanadaMireille Pilotte New Millennium IronRachel Pineault Detour Gold CorporationKate Rafter Employment and Social Development CanadaLouise Reid-Schloen Hydro OttawaJamie Saulnier Running Deer ResourcesNancy Veal Resolute Forest ProductsMarilyn Capreol Shawanaga First NationPamela Eyles BC Native Womenrsquos AssociationSusan Forth Shawanaga First NationElize Hartley Ontario Native Womenrsquos AssociationMarian Horne Yukon Aboriginal Womenrsquos CouncilNoreen McAteer Alberta Aboriginal Womenrsquos SocietyVerna Polson Quebec Native Women IncTori-Lynn Wanotch Saskatchewan Aboriginal Womenrsquos Circle CorpBeverly Blanchard Native Womenrsquos Association of CanadaSydney Ducharme Native Womenrsquos Association of CanadaClaudette Dumont-Smith Native Womenrsquos Association of CanadaDan Peters Native Womenrsquos Association of CanadaMerv McLeod McLeod-Wood Associates IncNancy Wood McLeod-Wood Associates Inc
Beverly Blanchard (standing) of the Native Womenrsquos Association of Canada addresses delegates attending a forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development
Women in Miningindd 22 2016-01-12 1053 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 23
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
andor economic opportunitiesFor example when impact benefit agreements (IBAs) are
completed they tend to be locally focused and may not consider indigenous women that do not reside in the community or indigenous individuals who are not members of the particular community
From the indigenous womenrsquos perspective at the forum it was noted that indigenous womenrsquos opinions on the resource devel-opment sector were varied and divergent Like most things in life there were some women who are in favour of the mining industry and there are some who are against it
Many who are against the sector perceived it to be counter to the traditional role of indigenous women as water-keepers and caretakers of Mother Earth but on the other hand research found that there was also a significant percentage of indigenous women who were ambivalent towards the industry
Due to length and detail of the forum (from which this article is based) the information has been drastically reduced to fit the space
For complete details and a copy of the full Bridging the Gap Aboriginal Women and Resource Development Report please contact Beverly Blanchard Strategic Policy Partnership and Planning NWAC Ottawa bblanchardnwacca CMJ
INDIGENOUS WOMEN and MINING
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Women in Miningindd 23 2016-01-12 1053 AM
24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
A s probably many of you know times are tough right now Commodity prices are slumping across the board affected by an overall slowing global economy that is being felt throughout Canada
But even during a stubborn downturn in global demand for many minerals and metals itrsquos no time to get down on mining because mining never goes away
Minerals and metals are the very foundation of virtually all of the goods we depend on in our daily lives The world will con-tinue to need mining and Canada can and should continue to be an important place where mining happens
A Look at Market ConditionsSo first how bad is the market
Global economic growth has been volatile in recent years Every time the Bank of Canada the IMF World Bank or others make growth projections it seems they amend them a few months later and always downwards With few exceptions the global economy is not doing well at all
The key economy for the mining sector is China which today consumes almost 50 per cent of the worldrsquos minerals and metals And Chinarsquos growth rate has been slowing along with growth rates in other emerging markets like Brazil Mexico and several Asian and African countries that are also falling
The one major exception is India whose growth is around 75 per cent and with its 13 billion people is seen as the next China in terms of minerals and metals consumption as the coun-try begins to rapidly industrialize
A Bedrock of the Canadian EconomyEven in a slump miningrsquos contribution to Canada is enormous
Despite some job losses at some operations mining and min-eral processing are directly employing more than 375000 Canadians including well over 10000 Indigenous Canadians paying the highest average industrial wage in the country Mining remains proportionally the largest employer of indige-nous Canadians
Mining accounts for roughly 20 per cent of the overall value of Canadian exports valued at nearly $90 billion
Nationally we pay an average of $38 billion annually in corporate taxes and royalties to federal provincial and territorial governments
Mining companies are also paying significant royalties to indig-enous communities across the country indirectly through govern-ment resource revenue sharing and in some cases directly
Wersquore also supporting the second largest mining-supply sector in the world More than 3700 companies provide a wide spec-trum of services to the Canadian mining industry with an increasing number of these being indigenous-owned businesses
A major challenge facing mining in Canadarsquos north today is its lack of infrastructure The north is our industryrsquos future but the territories and the northern parts of our provinces lack criti-cal infrastructuremdashroads electricity ports railwaysmdashto service mines and get products to market
This lack of infrastructure is felt by communities many of them indigenous located in the north
According to the Mining Association of Canadarsquos (MAC)
MINING AND INDIGENOUS PEOPLES CANADArsquoS FUTURE By Pierre Gratton
Delegates attending the 23rd Annual Conference of the Canadian Aboriginal Minerals Association in Vancouver listen to talks during the three-day event
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to
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ey S
ande
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hoto
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hy
Macindd 24 2016-01-12 1054 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 25
FIRST NATIONS and MINING
research it costs about 2 to 25 times as much to build and operate a gold and base metal mine in northern Canada off grid than in the south
We should be looking at ways to level the playing field in the north where infrastructure is lacking Canada needs a strategic collaboration involving industry and governments federal pro-vincial territorial and Indigenous to get this nation-building infrastructure in place
This can be done by increasing government investment in new infrastructure or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good
Additionally there is the issue of indigenous rights and title and how this affects the project certainty
Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and if necessary accommo-dated for activities on traditional indigenous territories affects project timelines and certainty
Connected to this is the concept of social license which in general terms defines the support earned by proponents to pro-ceed with and operate their project
The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects
That is a very complex issue The Supreme Court of Canada in its recent decision on the
Tsilhqotrsquoin First Nationrsquos claim recognized indigenous title a first in Canadian law
It also provided clear guidance on the criteria needed to demonstrate title and on the rights and obligations that flow from that in the process also identifying where title was found not to exist
It is a significant decision that provides us all with much more clarity going forward
But back to the question of the vetoThe Court clearly recognizes that in some circumstances the
right to title can be limited by the Crown So there is no abso-lute veto under Canadian law even in the case where title has been proven
But for the Crown to place limits on indigenous title it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead ndash a very significant test
At its core the decision continues a balancing act between empowering and limiting the authority of both indigenous peo-ples and governments The Court was very wise
So what does this mean for proponents There is the law and then there is reality No proponent
wants or should want to build a project that is unwelcome or opposed by local communities This is quite frankly an unsus-tainable option and one best avoided And most communities are open to the opportunities mining brings and increasingly so
Letrsquos look at reality in a different way
Today there are more than 250 agreements between mining companies and indigenous communities across the country It is decidedly rare that projects proceed without impact benefit or other such agreements concluded
These agreements which have matured with time and experi-ence provide significant local benefits and assurances including
Commitments on business procurement and often assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide
Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight
Support for skills training and mentoringDirect economic or financial benefitsSome of these agreements are transforming communities in
very significant waysNewgoldrsquos New Afton project in Kamloops is one such exam-
ple The diamond mines in the NWT are others as is Voiseyrsquos Bay We are seeing high levels of indigenous participation as high as 60 per cent in the case of Voiseyrsquos Bay increasing levels of post-secondary education and significantly improved eco-nomic and social outcomes
Nonetheless it is undeniable that the negotiation of these agreements takes time Trust must be built between the parties and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the pro-posed mine prior to it proceeding
Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association Photo by Tracey Sanders Photography
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to
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ey S
ande
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hoto
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Macindd 25 2016-01-12 1054 AM
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
AME BCindd 27 2016-01-12 110 PM
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Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Nfld Reportindd 30 2016-01-12 1055 AM
Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
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W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
- 002
- 003
- 004
- 005
- 006
- 007
- 008-009
- 010-015
- 016-019
- 020-021
- 022-023
- 024-026
- 027
- 028-030
- 031
- 032
- 033
- 034
- 035
- 036
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COMMUNITY EFFORT HELPSSOLVE FISHWAY PROBLEMBy Russell Noble
PARTNERSHIPA WINNING
16 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Shannon Haizimsque Chief Operating Officer of the Yinka Dene Economic Limited Partnership the commercial business arm of the Wetrsquosuwetrsquoen First Nations at the Huckleberry Mine site Adjacent photo shows a series of steps lined with geotextiles and anchored with rock fill as part of the minersquos Fish Compensation Plan
Huckleberryindd 16 2016-01-12 1052 AM
Almost everybody associates the name ldquoHuckleberryrdquo with Mark Twainrsquos Huckleberry Finn and his comrade Tom Sawyer but in the mining community Huckleberry is also the name of a Canadian mine that has been in production in northwestern British Columbia
since October 1997 Huckleberry Mines Ltd is an active open-pit coppermolyb-
denum mine located approximately 100km south of Houston BC Production rates (in 2014) were 34 million pounds of copper 2202 ounces of gold and 183218 ounces of silver and like many mines today itrsquos owned by a consortium of companies under one name Huckleberry Mines Ltd (HML) of Vancouver
The mine is owned and operated by Huckleberry Mines Ltd which in turn is owned 50 per cent by Imperial Metals Corporation of Vancouver and 50 per cent by a Japanese consor-tium including Mitsubishi Materials Corporation Dowa Mining Co Ltd and Furukawa Co
Partnering with First NationsSince 2013 Huckleberry Mines Ltd has signed communication amp partnership agreements with five separate First Nations orga-nizations Wetrsquosuwetrsquoen First Nation Cheslatta Carrier Nation Office of Wetrsquosuwetrsquoen Nee Tahi Buhn Indian Band and Skin Tyee Nation
Marke Wong Manager of Environmental amp Community Affairs for Huckleberry Mines Ltd says ldquoThese types of agree-ments have been instrumental in the success of Huckleberry Mine Because of the open dialogue with Indigenous communi-ties we have generated better understanding among all parties and this has increased First Nations access to economic opportu-nities such as job training employment and service contracts and has provided Huckleberry with dedicated community part-ners and a strong reliable work force and able contractorsrdquo
JANUARY 2016 CANADIAN MINING JOURNAL | 17
FIRST NATIONS and MININGHUCKLEBERRY MINE
Huckleberryindd 17 2016-01-12 1052 AM
18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
For example Wong says Huckleberry works directly with the economic development arm of its partners to provide training jobs and developing on-call labour contracts including the Yinka Dene Economic Development Limited Partnership (YLP) (Wetrsquosuwetrsquoen First Nation) the Nootsenay Enterprises (Cheslatta Carrier Nation) the Hunustrsquo ot en Investment Corp (Nee Tahi Buhn Indian Band) and the Skin Tyee Nation
He says that in 2014 and 2015 the company spent more than 1200 hours of on-the-job training to students and interns from the Wetrsquosuwetrsquoen and Cheslatta Carrier First Nations who recently graduated from the Northwest Community Collegersquos School of Exploration and Mining Environmental Monitoring Assistant Program (EMAP) and other programs
In keeping with Huckleberryrsquos involvement with the commu-nity the company also supports the College of New Caledoniarsquos Mineral Processing Assistants Course by providing instructors on-site mill tours and job opportunities at the mine Several member of the Nee Tahi Buhn Indian Band have been working as on-call positions as environmental monitors and confined space guards in the mill Huckleberry staff regularly respond to community requests to attend speak and sponsor community events such as career days annual meetings mine tours and traditional community gatherings
ldquoDeveloping successful mining arrangements with Indigenous people isnrsquot only about technical astuteness itrsquos about relation-ships reconciliation and the balancing of interestsrdquo says Wong
Itrsquos obvious from these brief examples that Huckleberry Mines Ltd is taking its work with the First Nations seriously but itrsquos more than that
Mike Robertson Chief Policy Advisor Cheslatta Carrier Nation says ldquoIn 2005 the Cheslatta Carrier Nation challenged the mine of its commitment to sound environmental manage-ment During the subsequent 10 years Huckleberry manage-ment and staff committed to engage our people directly in planning and implementing a progressive reclamation program of old mining zone areas and in the development of new zones
Just like the re-vegetated dams and tailings sites our environ-mental relationship has blossomed toordquo
Chief Rene Skin Skin Tyee Nation added ldquoMarke Wong of Huckleberry Mines has participated in our Nationrsquos annual gath-erings including community open houses and cultural camps Hersquos engaged directly with our youth and elders for the past two years He has been diligent in keeping us informed of changes to the on-going miner operation and opportunities for our peoplerdquo
Managing Impacts and Restoring the LandLike all mining therersquos a certain impact to the natural environ-ment and following the closure of a mine there are permanent changes to the landscape The Huckleberry Mine is no exception
Conventional drilling blasting loading and hauling using a combination of electric drills and shovels diesel hydraulic exca-vators and both 100 and 150-ton diesel-powered haul trucks are used to process approximately 17000 tonnes of ore a day
Milling is accomplished by grinding the ore in a 975m diam-eter SAG mill and then through two ball mills The resulting slurry is processed by flotation to produce a concentrate of 27 per cent copper that is subsequently shipped by truck to the port at Stewart for storage and shipment to Japan
Tailings from the milling process is discharged into a tailings management facility and supernatant water is discharged to the aquatic environment through a pipeline to a submersed outfall and diffuser located in Tahtsa Reach part of a man-made hydro-power reservoir developed in the 1950s All water discharged falls within their provincial and federal permit limits
With this comes noise dust and all of the other factors asso-ciated with mining but as mentioned earlier Huckleberry Mines Ltd is aware of the situation and addresses them through its Environment and Community Affairs Program which includes a Fish Habitat Compensation Program
And itrsquos because of its efforts in this area that Huckleberry Mines Ltd recently received the 2014 BC Metal Mine Reclamation Award from the BC Technical Research Committee
Aerial photo of Huckleberry Mine located between Huckleberry Mountain and Tahtsa Reach
Huckleberryindd 18 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 19
on Reclamation (BCTRCR) and the Mining Association of BC (MABC) in recognition for outstanding practices in its fish habitat restoration program a program that actually increased the available fish habitat in the area of the mine as well as its successful relationship building efforts with First Nations
Even before the mine was built the company recognized that its minersquos footprint could have an impact on the available fisher-ies habitat in the area In particular ldquoCreek 4rdquo a known fish-bearing stream was expected to be impacted and so a plan was made to conduct some habitat enhancements in the area
Fisheries surveys conducted by Hatfield Consultants of North Vancouver identified nearby ldquoCreek Mrdquo which at the time was not a fish-bearing stream due to a naturally occurring barrier to fish ndashie a steep gradient reach that stopped any fish from reaching a headwater pond
Huckleberry Minersquos plan involved constructing a series of steps or weirs lined with geotextiles and anchored with rock fill These works were constructed by a team from Cariboo Divers from designs prepared by Hatfield Consultants
Subsequent fish surveys conducted between 2001 and 2011 showed initial success and that adult rainbow trout were present in the headwater pond and juveniles were present in the lower reaches
However subsequent surveys conducted between 2008 and 2011 indicated that the juvenile fish numbers decreased to record lows in 2011 The decline in fish numbers was attributed to failure of the weirs in the lower and middle fishways causing juveniles to become stranded in isolated pools and precluding adults from reaching the preferred spawning habitat between the lower and middle fishways
When initial monitoring of the remediated area in 2013 and 2014 was conducted Environmental Monitoring Assistants from the Yinka Dene Economic Limited Partnership and the Nootsenay Enterprises Ltd were called to assist in the evaluation of the stability of the constructed works as well as presence of fish and the structural integrity of the fishways have remained intact through high-flow periods with no erosion or undermin-ing of the weir structures
Cody Reid Deputy Chief amp Environmental Coordinator Nee Tahi Buhn Indian Band said ldquoThe design construction monitoring and maintenance of the Creek M fishway has led to an overall net increase in fish habitat in the area surrounding the mine in Tahtsa Reachrdquo
And David Belford Mineral and Natural Resources Liaison Officer Wetrsquosuwetrsquoen addedrdquo The HML Environmental team and participating consultants are to be commended on their proactive approach to reclaiming the fish habitat and to increas-ing that habitat within the mine footrdquo
During the 2013 fish survey 39 rainbow trout were captured the largest number of fish observed since 2008 These observa-tions were made even while construction of the middle reach fishways was ongoing
Marke Wong says that Huckleberryrsquos plans are to continue monitoring to confirm the effectiveness of the restoration work including hydraulic functioning physical stability and structural integrity fish distribution and net gain
From the operation of a mine in the mountains to the refur-bishing of a fishway in a local waterway Huckleberry Mines Ltd continues to show its appreciation and respect for the environment and the First Nations communities it works with in British Columbia
Perhaps the most important message for industry is that the example set by Huckleberry Mine and its First Nation commu-nity partners demonstrates that when parties begin to have meaningful dialogue and understanding develops on both sides then the path to cooperation and partnership is open
In the case of Huckleberry Mine this has led to the devel-opment of partnerships that have helped it expand its opera-tions and have help provide support during tough economic times
The nomination of Huckleberry Mines Ltd for the 2014 BC Metal Mine Reclamation Award came from its First Nation Partners because as Chief Karen Ogen said ldquoOur partnership with Huckleberry Mines has made a big difference in our small community Since the 2013 partnership agreement was signed our people have benefitted from jobs training and business opportunities Our experience with Huckleberry has been very positive and we have greatly appreciated Huckleberryrsquos efforts to engage with our community and to work with our business arm the Yinka Dene Economic Partnership The Wetrsquosuwetrsquoen First Nation is very pleased to nominate Huckleberry Mines for this awardrdquo
And lastly Mike Robertson added ldquo The Cheslatta Carrier Nation has been a successful Huckleberry Mines Limited con-tractor on a number of projects including a tailings dam We have our members employed by Huckleberry Mines and we maintain regular contact with its staff and management on all aspects of operations We support the nomination because we are confident they will continue and enhance their innovative and progressive practices of returning the land to a near natural self-sustaining staterdquo CMJ
FIRST NATIONS and MININGHUCKLEBERRY MINE
Material for Huckleberry Minersquos step-building program being delivered to the site by helicopter
Huckleberryindd 19 2016-01-12 1141 AM
20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
FIRST NATIONS COMPANY PROVIDES VITAL ROADBUILDING SERVICES
TO REMOTE COMMUNITIESStaff Report
REWARDSROADto
Creeindd 20 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 21
FIRST NATIONS and MINING
K imesskanemenow is a Cree word that means ldquoThis is our Roadrdquo a fitting name for the winter road management company that is owned and operated by four northern First Nations Attawapiskat Fort
Albany Kashechewan and Moose Cree Their company Kimesskanemenow Corporation (also
known as K Corp) was founded in 2001 and for the past 15 years has been responsible for building and maintaining the Western James Bay Winter Road (JBWR) which starts in Moosonee and travels 312km up the western coast of James Bay connecting the communities of Fort Albany and Kashechewan and eventually ending at the Attawapiskat First Nation
The road is a lifeline to the remote areas in the James Bay Lowlands of Northern Ontario and without it existing and future development of this part of the country would not be possible
In fact itrsquos thanks to the road that K Corp helped build that companies like De Beers Canada are in the north
As most people know De Beers Canada made international headlines when it built the Victor Mine in 2006 (the first dia-mond mine in Ontario at a cost of about $1 billion) approxi-mately 90km west of the coastal community of Attawapiskat First Nation
Since the open-pit mine began production in 2008 with an annual tonne processing capacity of about 27 million tonnes and an annual carat production capacity of 600000 carats it has proven to be a key to Northern Ontario development and its communities
With an estimated mine life to 2018 the Victor Minersquos ener-gy and equipment needs will continue for at least two more years and according to K Corp cannot be met without the JBWR
Air transport is prohibitively expensive so the winter road is considered by far the most affordable way to supply the remote mine with the necessary 450 loads of cargo and 10 to 11 million litres of diesel fuel that it consumes each year
But the Victor Mine is not the only site that requires a reliable supply of goods and services Similar transportation challenges also face other remote northern First Nations communities that need to truck goods and fuel via seasonal winter roads
With the exception of Moose Cree First Nation which has a railway line to Cochrane air travel is the only transportation available year-round for the three other First Nations which for most community residents is prohibitively expensive
Thanks again to the JBWR it provides a critical socio-eco-nomic tie between the communities as well as a significant source of employment and to keep relationship going Kimesskanemenow Corporation and De Beers Canada have entered into a productive partnership
In 2004 the two parties signed a Winter Road Agreement which was re-negotiated in 2014 Under the agreement De Beers pays the bulk of the costs of the roadrsquos construction and maintenance costs while the balance of the costs are provided by the Provincial and Federal governments
Kimesskanemenow Corporation is guided by three central priorities Building capacity in its communities ensuring that its
member communities receive maximum benefits and mainte-nance of traditional culture which naturally includes environ-mental protection
The company also ensures that money from building and main-taining the road stays in the hands of local First Nation members
To do this the road is constructed and maintained entirely by local community members either as direct employees or through local contractors This has required developing capacity which the company has done through training and education programs
The practical effect of these guiding principals is that during the winter months roughly 200 individuals work on the road helping ensure that the road brings economic benefits to individ-uals families and communities
For many seasonal employment gained through constructing and maintaining the winter road is the only consistently avail-able work in the community Furthermore dividends from the company go back to the hands of the communities to be used as they see fit
Finally Kimesskanemenow Corporation donates to commu-nity-based initiatives that will benefit the communities with each of the four communities allotted an annual amount
Reflecting the corporationrsquos central values the money is used to fund initiatives that benefit youth the environment or main-tain traditional ways of living
One example of the programs that the corporation helps fund is CreeFest a celebration of Cree culture that is held annually in the Mushkegowuk communities
The company also funds the Edward W Chilton scholarship at Northern College in honour of the late Ed Chilton the com-panyrsquos first president The scholarship is awarded to community members to further their education
K Corprsquos list of smaller grants available online include many community and cultural programs that maintain the vitality of all these communities
Kimesskanemenow Corporation maintains an important piece of infrastructure that benefits the communities and allows for the ongoing operation of the Victor Diamond Mine As a cooperative venture the corporation has proven itself to be invaluable to both the communities and the mining company CMJ
Thanks to the efforts of K Corp the Western James Bay Winter Road provides access to the remote areas of Northern Ontario
Creeindd 21 2016-01-12 1052 AM
22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
WHERE WE STANDSERIOUS QUESTIONS DESERVE SOME SERIOUS ANSWERS Staff Report
I trsquos been just over a year since the Native Womenrsquos Association of Canada (NWAC) received funding from Aboriginal Affairs and Northern Development Canada (AANDC) to identify and ask questions about the barriers
indigenous women face and secondly to get direct and honest answers as to what are the realistic opportunities for them in the mining industry
Basically as the headline says they want to know where they stand insofar as their positions within the mining industry are concerned
The questions NWAC put on the table at a recent forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development dealt with two perspectives the first looked into resource development corporations and sought to understand what these corporations knew about aboriginal women and the second was from aboriginal women and how they viewed the mining industry with regards to economic devel-opment and employment opportunities
The forum was attended by an impressive gathering of female indigenous leaders and representatives from the resource devel-opment sector A full list of the participants is featured in the adjacent box
The intent of the engagementdiscussion session was to initi-ate a constructive dialogue amongst the participants with the overall goal of
s increasing the labour market participation of indigenous women in the resource development sector
s ensuring indigenous womenrsquos voices are heard in the devel-opment of these projects
s sharing of information on the industry and
s discussing the various opportunities and barriers facing indigenous women who wish to work in the industry
A DISTINGUISHED PANEL OF WOMEN ATTEND OTTAWA FORUM
Siobhan Dooley Hatch EngineeringGrant Goddard New Gold Inc (Rainy River Project)Karina Kesserwan Kesserwan (Law ndash Strategy ndash Solutions)Stacey Jack New Gold Inc (Rainy River Project)Christopher Lefebvre Aramark CanadaMireille Pilotte New Millennium IronRachel Pineault Detour Gold CorporationKate Rafter Employment and Social Development CanadaLouise Reid-Schloen Hydro OttawaJamie Saulnier Running Deer ResourcesNancy Veal Resolute Forest ProductsMarilyn Capreol Shawanaga First NationPamela Eyles BC Native Womenrsquos AssociationSusan Forth Shawanaga First NationElize Hartley Ontario Native Womenrsquos AssociationMarian Horne Yukon Aboriginal Womenrsquos CouncilNoreen McAteer Alberta Aboriginal Womenrsquos SocietyVerna Polson Quebec Native Women IncTori-Lynn Wanotch Saskatchewan Aboriginal Womenrsquos Circle CorpBeverly Blanchard Native Womenrsquos Association of CanadaSydney Ducharme Native Womenrsquos Association of CanadaClaudette Dumont-Smith Native Womenrsquos Association of CanadaDan Peters Native Womenrsquos Association of CanadaMerv McLeod McLeod-Wood Associates IncNancy Wood McLeod-Wood Associates Inc
Beverly Blanchard (standing) of the Native Womenrsquos Association of Canada addresses delegates attending a forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development
Women in Miningindd 22 2016-01-12 1053 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 23
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
andor economic opportunitiesFor example when impact benefit agreements (IBAs) are
completed they tend to be locally focused and may not consider indigenous women that do not reside in the community or indigenous individuals who are not members of the particular community
From the indigenous womenrsquos perspective at the forum it was noted that indigenous womenrsquos opinions on the resource devel-opment sector were varied and divergent Like most things in life there were some women who are in favour of the mining industry and there are some who are against it
Many who are against the sector perceived it to be counter to the traditional role of indigenous women as water-keepers and caretakers of Mother Earth but on the other hand research found that there was also a significant percentage of indigenous women who were ambivalent towards the industry
Due to length and detail of the forum (from which this article is based) the information has been drastically reduced to fit the space
For complete details and a copy of the full Bridging the Gap Aboriginal Women and Resource Development Report please contact Beverly Blanchard Strategic Policy Partnership and Planning NWAC Ottawa bblanchardnwacca CMJ
INDIGENOUS WOMEN and MINING
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Women in Miningindd 23 2016-01-12 1053 AM
24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
A s probably many of you know times are tough right now Commodity prices are slumping across the board affected by an overall slowing global economy that is being felt throughout Canada
But even during a stubborn downturn in global demand for many minerals and metals itrsquos no time to get down on mining because mining never goes away
Minerals and metals are the very foundation of virtually all of the goods we depend on in our daily lives The world will con-tinue to need mining and Canada can and should continue to be an important place where mining happens
A Look at Market ConditionsSo first how bad is the market
Global economic growth has been volatile in recent years Every time the Bank of Canada the IMF World Bank or others make growth projections it seems they amend them a few months later and always downwards With few exceptions the global economy is not doing well at all
The key economy for the mining sector is China which today consumes almost 50 per cent of the worldrsquos minerals and metals And Chinarsquos growth rate has been slowing along with growth rates in other emerging markets like Brazil Mexico and several Asian and African countries that are also falling
The one major exception is India whose growth is around 75 per cent and with its 13 billion people is seen as the next China in terms of minerals and metals consumption as the coun-try begins to rapidly industrialize
A Bedrock of the Canadian EconomyEven in a slump miningrsquos contribution to Canada is enormous
Despite some job losses at some operations mining and min-eral processing are directly employing more than 375000 Canadians including well over 10000 Indigenous Canadians paying the highest average industrial wage in the country Mining remains proportionally the largest employer of indige-nous Canadians
Mining accounts for roughly 20 per cent of the overall value of Canadian exports valued at nearly $90 billion
Nationally we pay an average of $38 billion annually in corporate taxes and royalties to federal provincial and territorial governments
Mining companies are also paying significant royalties to indig-enous communities across the country indirectly through govern-ment resource revenue sharing and in some cases directly
Wersquore also supporting the second largest mining-supply sector in the world More than 3700 companies provide a wide spec-trum of services to the Canadian mining industry with an increasing number of these being indigenous-owned businesses
A major challenge facing mining in Canadarsquos north today is its lack of infrastructure The north is our industryrsquos future but the territories and the northern parts of our provinces lack criti-cal infrastructuremdashroads electricity ports railwaysmdashto service mines and get products to market
This lack of infrastructure is felt by communities many of them indigenous located in the north
According to the Mining Association of Canadarsquos (MAC)
MINING AND INDIGENOUS PEOPLES CANADArsquoS FUTURE By Pierre Gratton
Delegates attending the 23rd Annual Conference of the Canadian Aboriginal Minerals Association in Vancouver listen to talks during the three-day event
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ey S
ande
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hy
Macindd 24 2016-01-12 1054 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 25
FIRST NATIONS and MINING
research it costs about 2 to 25 times as much to build and operate a gold and base metal mine in northern Canada off grid than in the south
We should be looking at ways to level the playing field in the north where infrastructure is lacking Canada needs a strategic collaboration involving industry and governments federal pro-vincial territorial and Indigenous to get this nation-building infrastructure in place
This can be done by increasing government investment in new infrastructure or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good
Additionally there is the issue of indigenous rights and title and how this affects the project certainty
Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and if necessary accommo-dated for activities on traditional indigenous territories affects project timelines and certainty
Connected to this is the concept of social license which in general terms defines the support earned by proponents to pro-ceed with and operate their project
The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects
That is a very complex issue The Supreme Court of Canada in its recent decision on the
Tsilhqotrsquoin First Nationrsquos claim recognized indigenous title a first in Canadian law
It also provided clear guidance on the criteria needed to demonstrate title and on the rights and obligations that flow from that in the process also identifying where title was found not to exist
It is a significant decision that provides us all with much more clarity going forward
But back to the question of the vetoThe Court clearly recognizes that in some circumstances the
right to title can be limited by the Crown So there is no abso-lute veto under Canadian law even in the case where title has been proven
But for the Crown to place limits on indigenous title it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead ndash a very significant test
At its core the decision continues a balancing act between empowering and limiting the authority of both indigenous peo-ples and governments The Court was very wise
So what does this mean for proponents There is the law and then there is reality No proponent
wants or should want to build a project that is unwelcome or opposed by local communities This is quite frankly an unsus-tainable option and one best avoided And most communities are open to the opportunities mining brings and increasingly so
Letrsquos look at reality in a different way
Today there are more than 250 agreements between mining companies and indigenous communities across the country It is decidedly rare that projects proceed without impact benefit or other such agreements concluded
These agreements which have matured with time and experi-ence provide significant local benefits and assurances including
Commitments on business procurement and often assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide
Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight
Support for skills training and mentoringDirect economic or financial benefitsSome of these agreements are transforming communities in
very significant waysNewgoldrsquos New Afton project in Kamloops is one such exam-
ple The diamond mines in the NWT are others as is Voiseyrsquos Bay We are seeing high levels of indigenous participation as high as 60 per cent in the case of Voiseyrsquos Bay increasing levels of post-secondary education and significantly improved eco-nomic and social outcomes
Nonetheless it is undeniable that the negotiation of these agreements takes time Trust must be built between the parties and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the pro-posed mine prior to it proceeding
Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association Photo by Tracey Sanders Photography
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to
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ey S
ande
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Macindd 25 2016-01-12 1054 AM
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
AME BCindd 27 2016-01-12 110 PM
28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Nfld Reportindd 30 2016-01-12 1055 AM
Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
PROFESSIONAL DIRECTORYA
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W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
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Almost everybody associates the name ldquoHuckleberryrdquo with Mark Twainrsquos Huckleberry Finn and his comrade Tom Sawyer but in the mining community Huckleberry is also the name of a Canadian mine that has been in production in northwestern British Columbia
since October 1997 Huckleberry Mines Ltd is an active open-pit coppermolyb-
denum mine located approximately 100km south of Houston BC Production rates (in 2014) were 34 million pounds of copper 2202 ounces of gold and 183218 ounces of silver and like many mines today itrsquos owned by a consortium of companies under one name Huckleberry Mines Ltd (HML) of Vancouver
The mine is owned and operated by Huckleberry Mines Ltd which in turn is owned 50 per cent by Imperial Metals Corporation of Vancouver and 50 per cent by a Japanese consor-tium including Mitsubishi Materials Corporation Dowa Mining Co Ltd and Furukawa Co
Partnering with First NationsSince 2013 Huckleberry Mines Ltd has signed communication amp partnership agreements with five separate First Nations orga-nizations Wetrsquosuwetrsquoen First Nation Cheslatta Carrier Nation Office of Wetrsquosuwetrsquoen Nee Tahi Buhn Indian Band and Skin Tyee Nation
Marke Wong Manager of Environmental amp Community Affairs for Huckleberry Mines Ltd says ldquoThese types of agree-ments have been instrumental in the success of Huckleberry Mine Because of the open dialogue with Indigenous communi-ties we have generated better understanding among all parties and this has increased First Nations access to economic opportu-nities such as job training employment and service contracts and has provided Huckleberry with dedicated community part-ners and a strong reliable work force and able contractorsrdquo
JANUARY 2016 CANADIAN MINING JOURNAL | 17
FIRST NATIONS and MININGHUCKLEBERRY MINE
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18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
For example Wong says Huckleberry works directly with the economic development arm of its partners to provide training jobs and developing on-call labour contracts including the Yinka Dene Economic Development Limited Partnership (YLP) (Wetrsquosuwetrsquoen First Nation) the Nootsenay Enterprises (Cheslatta Carrier Nation) the Hunustrsquo ot en Investment Corp (Nee Tahi Buhn Indian Band) and the Skin Tyee Nation
He says that in 2014 and 2015 the company spent more than 1200 hours of on-the-job training to students and interns from the Wetrsquosuwetrsquoen and Cheslatta Carrier First Nations who recently graduated from the Northwest Community Collegersquos School of Exploration and Mining Environmental Monitoring Assistant Program (EMAP) and other programs
In keeping with Huckleberryrsquos involvement with the commu-nity the company also supports the College of New Caledoniarsquos Mineral Processing Assistants Course by providing instructors on-site mill tours and job opportunities at the mine Several member of the Nee Tahi Buhn Indian Band have been working as on-call positions as environmental monitors and confined space guards in the mill Huckleberry staff regularly respond to community requests to attend speak and sponsor community events such as career days annual meetings mine tours and traditional community gatherings
ldquoDeveloping successful mining arrangements with Indigenous people isnrsquot only about technical astuteness itrsquos about relation-ships reconciliation and the balancing of interestsrdquo says Wong
Itrsquos obvious from these brief examples that Huckleberry Mines Ltd is taking its work with the First Nations seriously but itrsquos more than that
Mike Robertson Chief Policy Advisor Cheslatta Carrier Nation says ldquoIn 2005 the Cheslatta Carrier Nation challenged the mine of its commitment to sound environmental manage-ment During the subsequent 10 years Huckleberry manage-ment and staff committed to engage our people directly in planning and implementing a progressive reclamation program of old mining zone areas and in the development of new zones
Just like the re-vegetated dams and tailings sites our environ-mental relationship has blossomed toordquo
Chief Rene Skin Skin Tyee Nation added ldquoMarke Wong of Huckleberry Mines has participated in our Nationrsquos annual gath-erings including community open houses and cultural camps Hersquos engaged directly with our youth and elders for the past two years He has been diligent in keeping us informed of changes to the on-going miner operation and opportunities for our peoplerdquo
Managing Impacts and Restoring the LandLike all mining therersquos a certain impact to the natural environ-ment and following the closure of a mine there are permanent changes to the landscape The Huckleberry Mine is no exception
Conventional drilling blasting loading and hauling using a combination of electric drills and shovels diesel hydraulic exca-vators and both 100 and 150-ton diesel-powered haul trucks are used to process approximately 17000 tonnes of ore a day
Milling is accomplished by grinding the ore in a 975m diam-eter SAG mill and then through two ball mills The resulting slurry is processed by flotation to produce a concentrate of 27 per cent copper that is subsequently shipped by truck to the port at Stewart for storage and shipment to Japan
Tailings from the milling process is discharged into a tailings management facility and supernatant water is discharged to the aquatic environment through a pipeline to a submersed outfall and diffuser located in Tahtsa Reach part of a man-made hydro-power reservoir developed in the 1950s All water discharged falls within their provincial and federal permit limits
With this comes noise dust and all of the other factors asso-ciated with mining but as mentioned earlier Huckleberry Mines Ltd is aware of the situation and addresses them through its Environment and Community Affairs Program which includes a Fish Habitat Compensation Program
And itrsquos because of its efforts in this area that Huckleberry Mines Ltd recently received the 2014 BC Metal Mine Reclamation Award from the BC Technical Research Committee
Aerial photo of Huckleberry Mine located between Huckleberry Mountain and Tahtsa Reach
Huckleberryindd 18 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 19
on Reclamation (BCTRCR) and the Mining Association of BC (MABC) in recognition for outstanding practices in its fish habitat restoration program a program that actually increased the available fish habitat in the area of the mine as well as its successful relationship building efforts with First Nations
Even before the mine was built the company recognized that its minersquos footprint could have an impact on the available fisher-ies habitat in the area In particular ldquoCreek 4rdquo a known fish-bearing stream was expected to be impacted and so a plan was made to conduct some habitat enhancements in the area
Fisheries surveys conducted by Hatfield Consultants of North Vancouver identified nearby ldquoCreek Mrdquo which at the time was not a fish-bearing stream due to a naturally occurring barrier to fish ndashie a steep gradient reach that stopped any fish from reaching a headwater pond
Huckleberry Minersquos plan involved constructing a series of steps or weirs lined with geotextiles and anchored with rock fill These works were constructed by a team from Cariboo Divers from designs prepared by Hatfield Consultants
Subsequent fish surveys conducted between 2001 and 2011 showed initial success and that adult rainbow trout were present in the headwater pond and juveniles were present in the lower reaches
However subsequent surveys conducted between 2008 and 2011 indicated that the juvenile fish numbers decreased to record lows in 2011 The decline in fish numbers was attributed to failure of the weirs in the lower and middle fishways causing juveniles to become stranded in isolated pools and precluding adults from reaching the preferred spawning habitat between the lower and middle fishways
When initial monitoring of the remediated area in 2013 and 2014 was conducted Environmental Monitoring Assistants from the Yinka Dene Economic Limited Partnership and the Nootsenay Enterprises Ltd were called to assist in the evaluation of the stability of the constructed works as well as presence of fish and the structural integrity of the fishways have remained intact through high-flow periods with no erosion or undermin-ing of the weir structures
Cody Reid Deputy Chief amp Environmental Coordinator Nee Tahi Buhn Indian Band said ldquoThe design construction monitoring and maintenance of the Creek M fishway has led to an overall net increase in fish habitat in the area surrounding the mine in Tahtsa Reachrdquo
And David Belford Mineral and Natural Resources Liaison Officer Wetrsquosuwetrsquoen addedrdquo The HML Environmental team and participating consultants are to be commended on their proactive approach to reclaiming the fish habitat and to increas-ing that habitat within the mine footrdquo
During the 2013 fish survey 39 rainbow trout were captured the largest number of fish observed since 2008 These observa-tions were made even while construction of the middle reach fishways was ongoing
Marke Wong says that Huckleberryrsquos plans are to continue monitoring to confirm the effectiveness of the restoration work including hydraulic functioning physical stability and structural integrity fish distribution and net gain
From the operation of a mine in the mountains to the refur-bishing of a fishway in a local waterway Huckleberry Mines Ltd continues to show its appreciation and respect for the environment and the First Nations communities it works with in British Columbia
Perhaps the most important message for industry is that the example set by Huckleberry Mine and its First Nation commu-nity partners demonstrates that when parties begin to have meaningful dialogue and understanding develops on both sides then the path to cooperation and partnership is open
In the case of Huckleberry Mine this has led to the devel-opment of partnerships that have helped it expand its opera-tions and have help provide support during tough economic times
The nomination of Huckleberry Mines Ltd for the 2014 BC Metal Mine Reclamation Award came from its First Nation Partners because as Chief Karen Ogen said ldquoOur partnership with Huckleberry Mines has made a big difference in our small community Since the 2013 partnership agreement was signed our people have benefitted from jobs training and business opportunities Our experience with Huckleberry has been very positive and we have greatly appreciated Huckleberryrsquos efforts to engage with our community and to work with our business arm the Yinka Dene Economic Partnership The Wetrsquosuwetrsquoen First Nation is very pleased to nominate Huckleberry Mines for this awardrdquo
And lastly Mike Robertson added ldquo The Cheslatta Carrier Nation has been a successful Huckleberry Mines Limited con-tractor on a number of projects including a tailings dam We have our members employed by Huckleberry Mines and we maintain regular contact with its staff and management on all aspects of operations We support the nomination because we are confident they will continue and enhance their innovative and progressive practices of returning the land to a near natural self-sustaining staterdquo CMJ
FIRST NATIONS and MININGHUCKLEBERRY MINE
Material for Huckleberry Minersquos step-building program being delivered to the site by helicopter
Huckleberryindd 19 2016-01-12 1141 AM
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FIRST NATIONS COMPANY PROVIDES VITAL ROADBUILDING SERVICES
TO REMOTE COMMUNITIESStaff Report
REWARDSROADto
Creeindd 20 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 21
FIRST NATIONS and MINING
K imesskanemenow is a Cree word that means ldquoThis is our Roadrdquo a fitting name for the winter road management company that is owned and operated by four northern First Nations Attawapiskat Fort
Albany Kashechewan and Moose Cree Their company Kimesskanemenow Corporation (also
known as K Corp) was founded in 2001 and for the past 15 years has been responsible for building and maintaining the Western James Bay Winter Road (JBWR) which starts in Moosonee and travels 312km up the western coast of James Bay connecting the communities of Fort Albany and Kashechewan and eventually ending at the Attawapiskat First Nation
The road is a lifeline to the remote areas in the James Bay Lowlands of Northern Ontario and without it existing and future development of this part of the country would not be possible
In fact itrsquos thanks to the road that K Corp helped build that companies like De Beers Canada are in the north
As most people know De Beers Canada made international headlines when it built the Victor Mine in 2006 (the first dia-mond mine in Ontario at a cost of about $1 billion) approxi-mately 90km west of the coastal community of Attawapiskat First Nation
Since the open-pit mine began production in 2008 with an annual tonne processing capacity of about 27 million tonnes and an annual carat production capacity of 600000 carats it has proven to be a key to Northern Ontario development and its communities
With an estimated mine life to 2018 the Victor Minersquos ener-gy and equipment needs will continue for at least two more years and according to K Corp cannot be met without the JBWR
Air transport is prohibitively expensive so the winter road is considered by far the most affordable way to supply the remote mine with the necessary 450 loads of cargo and 10 to 11 million litres of diesel fuel that it consumes each year
But the Victor Mine is not the only site that requires a reliable supply of goods and services Similar transportation challenges also face other remote northern First Nations communities that need to truck goods and fuel via seasonal winter roads
With the exception of Moose Cree First Nation which has a railway line to Cochrane air travel is the only transportation available year-round for the three other First Nations which for most community residents is prohibitively expensive
Thanks again to the JBWR it provides a critical socio-eco-nomic tie between the communities as well as a significant source of employment and to keep relationship going Kimesskanemenow Corporation and De Beers Canada have entered into a productive partnership
In 2004 the two parties signed a Winter Road Agreement which was re-negotiated in 2014 Under the agreement De Beers pays the bulk of the costs of the roadrsquos construction and maintenance costs while the balance of the costs are provided by the Provincial and Federal governments
Kimesskanemenow Corporation is guided by three central priorities Building capacity in its communities ensuring that its
member communities receive maximum benefits and mainte-nance of traditional culture which naturally includes environ-mental protection
The company also ensures that money from building and main-taining the road stays in the hands of local First Nation members
To do this the road is constructed and maintained entirely by local community members either as direct employees or through local contractors This has required developing capacity which the company has done through training and education programs
The practical effect of these guiding principals is that during the winter months roughly 200 individuals work on the road helping ensure that the road brings economic benefits to individ-uals families and communities
For many seasonal employment gained through constructing and maintaining the winter road is the only consistently avail-able work in the community Furthermore dividends from the company go back to the hands of the communities to be used as they see fit
Finally Kimesskanemenow Corporation donates to commu-nity-based initiatives that will benefit the communities with each of the four communities allotted an annual amount
Reflecting the corporationrsquos central values the money is used to fund initiatives that benefit youth the environment or main-tain traditional ways of living
One example of the programs that the corporation helps fund is CreeFest a celebration of Cree culture that is held annually in the Mushkegowuk communities
The company also funds the Edward W Chilton scholarship at Northern College in honour of the late Ed Chilton the com-panyrsquos first president The scholarship is awarded to community members to further their education
K Corprsquos list of smaller grants available online include many community and cultural programs that maintain the vitality of all these communities
Kimesskanemenow Corporation maintains an important piece of infrastructure that benefits the communities and allows for the ongoing operation of the Victor Diamond Mine As a cooperative venture the corporation has proven itself to be invaluable to both the communities and the mining company CMJ
Thanks to the efforts of K Corp the Western James Bay Winter Road provides access to the remote areas of Northern Ontario
Creeindd 21 2016-01-12 1052 AM
22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
WHERE WE STANDSERIOUS QUESTIONS DESERVE SOME SERIOUS ANSWERS Staff Report
I trsquos been just over a year since the Native Womenrsquos Association of Canada (NWAC) received funding from Aboriginal Affairs and Northern Development Canada (AANDC) to identify and ask questions about the barriers
indigenous women face and secondly to get direct and honest answers as to what are the realistic opportunities for them in the mining industry
Basically as the headline says they want to know where they stand insofar as their positions within the mining industry are concerned
The questions NWAC put on the table at a recent forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development dealt with two perspectives the first looked into resource development corporations and sought to understand what these corporations knew about aboriginal women and the second was from aboriginal women and how they viewed the mining industry with regards to economic devel-opment and employment opportunities
The forum was attended by an impressive gathering of female indigenous leaders and representatives from the resource devel-opment sector A full list of the participants is featured in the adjacent box
The intent of the engagementdiscussion session was to initi-ate a constructive dialogue amongst the participants with the overall goal of
s increasing the labour market participation of indigenous women in the resource development sector
s ensuring indigenous womenrsquos voices are heard in the devel-opment of these projects
s sharing of information on the industry and
s discussing the various opportunities and barriers facing indigenous women who wish to work in the industry
A DISTINGUISHED PANEL OF WOMEN ATTEND OTTAWA FORUM
Siobhan Dooley Hatch EngineeringGrant Goddard New Gold Inc (Rainy River Project)Karina Kesserwan Kesserwan (Law ndash Strategy ndash Solutions)Stacey Jack New Gold Inc (Rainy River Project)Christopher Lefebvre Aramark CanadaMireille Pilotte New Millennium IronRachel Pineault Detour Gold CorporationKate Rafter Employment and Social Development CanadaLouise Reid-Schloen Hydro OttawaJamie Saulnier Running Deer ResourcesNancy Veal Resolute Forest ProductsMarilyn Capreol Shawanaga First NationPamela Eyles BC Native Womenrsquos AssociationSusan Forth Shawanaga First NationElize Hartley Ontario Native Womenrsquos AssociationMarian Horne Yukon Aboriginal Womenrsquos CouncilNoreen McAteer Alberta Aboriginal Womenrsquos SocietyVerna Polson Quebec Native Women IncTori-Lynn Wanotch Saskatchewan Aboriginal Womenrsquos Circle CorpBeverly Blanchard Native Womenrsquos Association of CanadaSydney Ducharme Native Womenrsquos Association of CanadaClaudette Dumont-Smith Native Womenrsquos Association of CanadaDan Peters Native Womenrsquos Association of CanadaMerv McLeod McLeod-Wood Associates IncNancy Wood McLeod-Wood Associates Inc
Beverly Blanchard (standing) of the Native Womenrsquos Association of Canada addresses delegates attending a forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development
Women in Miningindd 22 2016-01-12 1053 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 23
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
andor economic opportunitiesFor example when impact benefit agreements (IBAs) are
completed they tend to be locally focused and may not consider indigenous women that do not reside in the community or indigenous individuals who are not members of the particular community
From the indigenous womenrsquos perspective at the forum it was noted that indigenous womenrsquos opinions on the resource devel-opment sector were varied and divergent Like most things in life there were some women who are in favour of the mining industry and there are some who are against it
Many who are against the sector perceived it to be counter to the traditional role of indigenous women as water-keepers and caretakers of Mother Earth but on the other hand research found that there was also a significant percentage of indigenous women who were ambivalent towards the industry
Due to length and detail of the forum (from which this article is based) the information has been drastically reduced to fit the space
For complete details and a copy of the full Bridging the Gap Aboriginal Women and Resource Development Report please contact Beverly Blanchard Strategic Policy Partnership and Planning NWAC Ottawa bblanchardnwacca CMJ
INDIGENOUS WOMEN and MINING
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d e P e n d a B L e P r o J e c t d e v e L o P M e n t
Women in Miningindd 23 2016-01-12 1053 AM
24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
A s probably many of you know times are tough right now Commodity prices are slumping across the board affected by an overall slowing global economy that is being felt throughout Canada
But even during a stubborn downturn in global demand for many minerals and metals itrsquos no time to get down on mining because mining never goes away
Minerals and metals are the very foundation of virtually all of the goods we depend on in our daily lives The world will con-tinue to need mining and Canada can and should continue to be an important place where mining happens
A Look at Market ConditionsSo first how bad is the market
Global economic growth has been volatile in recent years Every time the Bank of Canada the IMF World Bank or others make growth projections it seems they amend them a few months later and always downwards With few exceptions the global economy is not doing well at all
The key economy for the mining sector is China which today consumes almost 50 per cent of the worldrsquos minerals and metals And Chinarsquos growth rate has been slowing along with growth rates in other emerging markets like Brazil Mexico and several Asian and African countries that are also falling
The one major exception is India whose growth is around 75 per cent and with its 13 billion people is seen as the next China in terms of minerals and metals consumption as the coun-try begins to rapidly industrialize
A Bedrock of the Canadian EconomyEven in a slump miningrsquos contribution to Canada is enormous
Despite some job losses at some operations mining and min-eral processing are directly employing more than 375000 Canadians including well over 10000 Indigenous Canadians paying the highest average industrial wage in the country Mining remains proportionally the largest employer of indige-nous Canadians
Mining accounts for roughly 20 per cent of the overall value of Canadian exports valued at nearly $90 billion
Nationally we pay an average of $38 billion annually in corporate taxes and royalties to federal provincial and territorial governments
Mining companies are also paying significant royalties to indig-enous communities across the country indirectly through govern-ment resource revenue sharing and in some cases directly
Wersquore also supporting the second largest mining-supply sector in the world More than 3700 companies provide a wide spec-trum of services to the Canadian mining industry with an increasing number of these being indigenous-owned businesses
A major challenge facing mining in Canadarsquos north today is its lack of infrastructure The north is our industryrsquos future but the territories and the northern parts of our provinces lack criti-cal infrastructuremdashroads electricity ports railwaysmdashto service mines and get products to market
This lack of infrastructure is felt by communities many of them indigenous located in the north
According to the Mining Association of Canadarsquos (MAC)
MINING AND INDIGENOUS PEOPLES CANADArsquoS FUTURE By Pierre Gratton
Delegates attending the 23rd Annual Conference of the Canadian Aboriginal Minerals Association in Vancouver listen to talks during the three-day event
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 24 2016-01-12 1054 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 25
FIRST NATIONS and MINING
research it costs about 2 to 25 times as much to build and operate a gold and base metal mine in northern Canada off grid than in the south
We should be looking at ways to level the playing field in the north where infrastructure is lacking Canada needs a strategic collaboration involving industry and governments federal pro-vincial territorial and Indigenous to get this nation-building infrastructure in place
This can be done by increasing government investment in new infrastructure or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good
Additionally there is the issue of indigenous rights and title and how this affects the project certainty
Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and if necessary accommo-dated for activities on traditional indigenous territories affects project timelines and certainty
Connected to this is the concept of social license which in general terms defines the support earned by proponents to pro-ceed with and operate their project
The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects
That is a very complex issue The Supreme Court of Canada in its recent decision on the
Tsilhqotrsquoin First Nationrsquos claim recognized indigenous title a first in Canadian law
It also provided clear guidance on the criteria needed to demonstrate title and on the rights and obligations that flow from that in the process also identifying where title was found not to exist
It is a significant decision that provides us all with much more clarity going forward
But back to the question of the vetoThe Court clearly recognizes that in some circumstances the
right to title can be limited by the Crown So there is no abso-lute veto under Canadian law even in the case where title has been proven
But for the Crown to place limits on indigenous title it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead ndash a very significant test
At its core the decision continues a balancing act between empowering and limiting the authority of both indigenous peo-ples and governments The Court was very wise
So what does this mean for proponents There is the law and then there is reality No proponent
wants or should want to build a project that is unwelcome or opposed by local communities This is quite frankly an unsus-tainable option and one best avoided And most communities are open to the opportunities mining brings and increasingly so
Letrsquos look at reality in a different way
Today there are more than 250 agreements between mining companies and indigenous communities across the country It is decidedly rare that projects proceed without impact benefit or other such agreements concluded
These agreements which have matured with time and experi-ence provide significant local benefits and assurances including
Commitments on business procurement and often assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide
Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight
Support for skills training and mentoringDirect economic or financial benefitsSome of these agreements are transforming communities in
very significant waysNewgoldrsquos New Afton project in Kamloops is one such exam-
ple The diamond mines in the NWT are others as is Voiseyrsquos Bay We are seeing high levels of indigenous participation as high as 60 per cent in the case of Voiseyrsquos Bay increasing levels of post-secondary education and significantly improved eco-nomic and social outcomes
Nonetheless it is undeniable that the negotiation of these agreements takes time Trust must be built between the parties and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the pro-posed mine prior to it proceeding
Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association Photo by Tracey Sanders Photography
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 25 2016-01-12 1054 AM
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
AME BCindd 27 2016-01-12 110 PM
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Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
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W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
- 002
- 003
- 004
- 005
- 006
- 007
- 008-009
- 010-015
- 016-019
- 020-021
- 022-023
- 024-026
- 027
- 028-030
- 031
- 032
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18 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
For example Wong says Huckleberry works directly with the economic development arm of its partners to provide training jobs and developing on-call labour contracts including the Yinka Dene Economic Development Limited Partnership (YLP) (Wetrsquosuwetrsquoen First Nation) the Nootsenay Enterprises (Cheslatta Carrier Nation) the Hunustrsquo ot en Investment Corp (Nee Tahi Buhn Indian Band) and the Skin Tyee Nation
He says that in 2014 and 2015 the company spent more than 1200 hours of on-the-job training to students and interns from the Wetrsquosuwetrsquoen and Cheslatta Carrier First Nations who recently graduated from the Northwest Community Collegersquos School of Exploration and Mining Environmental Monitoring Assistant Program (EMAP) and other programs
In keeping with Huckleberryrsquos involvement with the commu-nity the company also supports the College of New Caledoniarsquos Mineral Processing Assistants Course by providing instructors on-site mill tours and job opportunities at the mine Several member of the Nee Tahi Buhn Indian Band have been working as on-call positions as environmental monitors and confined space guards in the mill Huckleberry staff regularly respond to community requests to attend speak and sponsor community events such as career days annual meetings mine tours and traditional community gatherings
ldquoDeveloping successful mining arrangements with Indigenous people isnrsquot only about technical astuteness itrsquos about relation-ships reconciliation and the balancing of interestsrdquo says Wong
Itrsquos obvious from these brief examples that Huckleberry Mines Ltd is taking its work with the First Nations seriously but itrsquos more than that
Mike Robertson Chief Policy Advisor Cheslatta Carrier Nation says ldquoIn 2005 the Cheslatta Carrier Nation challenged the mine of its commitment to sound environmental manage-ment During the subsequent 10 years Huckleberry manage-ment and staff committed to engage our people directly in planning and implementing a progressive reclamation program of old mining zone areas and in the development of new zones
Just like the re-vegetated dams and tailings sites our environ-mental relationship has blossomed toordquo
Chief Rene Skin Skin Tyee Nation added ldquoMarke Wong of Huckleberry Mines has participated in our Nationrsquos annual gath-erings including community open houses and cultural camps Hersquos engaged directly with our youth and elders for the past two years He has been diligent in keeping us informed of changes to the on-going miner operation and opportunities for our peoplerdquo
Managing Impacts and Restoring the LandLike all mining therersquos a certain impact to the natural environ-ment and following the closure of a mine there are permanent changes to the landscape The Huckleberry Mine is no exception
Conventional drilling blasting loading and hauling using a combination of electric drills and shovels diesel hydraulic exca-vators and both 100 and 150-ton diesel-powered haul trucks are used to process approximately 17000 tonnes of ore a day
Milling is accomplished by grinding the ore in a 975m diam-eter SAG mill and then through two ball mills The resulting slurry is processed by flotation to produce a concentrate of 27 per cent copper that is subsequently shipped by truck to the port at Stewart for storage and shipment to Japan
Tailings from the milling process is discharged into a tailings management facility and supernatant water is discharged to the aquatic environment through a pipeline to a submersed outfall and diffuser located in Tahtsa Reach part of a man-made hydro-power reservoir developed in the 1950s All water discharged falls within their provincial and federal permit limits
With this comes noise dust and all of the other factors asso-ciated with mining but as mentioned earlier Huckleberry Mines Ltd is aware of the situation and addresses them through its Environment and Community Affairs Program which includes a Fish Habitat Compensation Program
And itrsquos because of its efforts in this area that Huckleberry Mines Ltd recently received the 2014 BC Metal Mine Reclamation Award from the BC Technical Research Committee
Aerial photo of Huckleberry Mine located between Huckleberry Mountain and Tahtsa Reach
Huckleberryindd 18 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 19
on Reclamation (BCTRCR) and the Mining Association of BC (MABC) in recognition for outstanding practices in its fish habitat restoration program a program that actually increased the available fish habitat in the area of the mine as well as its successful relationship building efforts with First Nations
Even before the mine was built the company recognized that its minersquos footprint could have an impact on the available fisher-ies habitat in the area In particular ldquoCreek 4rdquo a known fish-bearing stream was expected to be impacted and so a plan was made to conduct some habitat enhancements in the area
Fisheries surveys conducted by Hatfield Consultants of North Vancouver identified nearby ldquoCreek Mrdquo which at the time was not a fish-bearing stream due to a naturally occurring barrier to fish ndashie a steep gradient reach that stopped any fish from reaching a headwater pond
Huckleberry Minersquos plan involved constructing a series of steps or weirs lined with geotextiles and anchored with rock fill These works were constructed by a team from Cariboo Divers from designs prepared by Hatfield Consultants
Subsequent fish surveys conducted between 2001 and 2011 showed initial success and that adult rainbow trout were present in the headwater pond and juveniles were present in the lower reaches
However subsequent surveys conducted between 2008 and 2011 indicated that the juvenile fish numbers decreased to record lows in 2011 The decline in fish numbers was attributed to failure of the weirs in the lower and middle fishways causing juveniles to become stranded in isolated pools and precluding adults from reaching the preferred spawning habitat between the lower and middle fishways
When initial monitoring of the remediated area in 2013 and 2014 was conducted Environmental Monitoring Assistants from the Yinka Dene Economic Limited Partnership and the Nootsenay Enterprises Ltd were called to assist in the evaluation of the stability of the constructed works as well as presence of fish and the structural integrity of the fishways have remained intact through high-flow periods with no erosion or undermin-ing of the weir structures
Cody Reid Deputy Chief amp Environmental Coordinator Nee Tahi Buhn Indian Band said ldquoThe design construction monitoring and maintenance of the Creek M fishway has led to an overall net increase in fish habitat in the area surrounding the mine in Tahtsa Reachrdquo
And David Belford Mineral and Natural Resources Liaison Officer Wetrsquosuwetrsquoen addedrdquo The HML Environmental team and participating consultants are to be commended on their proactive approach to reclaiming the fish habitat and to increas-ing that habitat within the mine footrdquo
During the 2013 fish survey 39 rainbow trout were captured the largest number of fish observed since 2008 These observa-tions were made even while construction of the middle reach fishways was ongoing
Marke Wong says that Huckleberryrsquos plans are to continue monitoring to confirm the effectiveness of the restoration work including hydraulic functioning physical stability and structural integrity fish distribution and net gain
From the operation of a mine in the mountains to the refur-bishing of a fishway in a local waterway Huckleberry Mines Ltd continues to show its appreciation and respect for the environment and the First Nations communities it works with in British Columbia
Perhaps the most important message for industry is that the example set by Huckleberry Mine and its First Nation commu-nity partners demonstrates that when parties begin to have meaningful dialogue and understanding develops on both sides then the path to cooperation and partnership is open
In the case of Huckleberry Mine this has led to the devel-opment of partnerships that have helped it expand its opera-tions and have help provide support during tough economic times
The nomination of Huckleberry Mines Ltd for the 2014 BC Metal Mine Reclamation Award came from its First Nation Partners because as Chief Karen Ogen said ldquoOur partnership with Huckleberry Mines has made a big difference in our small community Since the 2013 partnership agreement was signed our people have benefitted from jobs training and business opportunities Our experience with Huckleberry has been very positive and we have greatly appreciated Huckleberryrsquos efforts to engage with our community and to work with our business arm the Yinka Dene Economic Partnership The Wetrsquosuwetrsquoen First Nation is very pleased to nominate Huckleberry Mines for this awardrdquo
And lastly Mike Robertson added ldquo The Cheslatta Carrier Nation has been a successful Huckleberry Mines Limited con-tractor on a number of projects including a tailings dam We have our members employed by Huckleberry Mines and we maintain regular contact with its staff and management on all aspects of operations We support the nomination because we are confident they will continue and enhance their innovative and progressive practices of returning the land to a near natural self-sustaining staterdquo CMJ
FIRST NATIONS and MININGHUCKLEBERRY MINE
Material for Huckleberry Minersquos step-building program being delivered to the site by helicopter
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20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
FIRST NATIONS COMPANY PROVIDES VITAL ROADBUILDING SERVICES
TO REMOTE COMMUNITIESStaff Report
REWARDSROADto
Creeindd 20 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 21
FIRST NATIONS and MINING
K imesskanemenow is a Cree word that means ldquoThis is our Roadrdquo a fitting name for the winter road management company that is owned and operated by four northern First Nations Attawapiskat Fort
Albany Kashechewan and Moose Cree Their company Kimesskanemenow Corporation (also
known as K Corp) was founded in 2001 and for the past 15 years has been responsible for building and maintaining the Western James Bay Winter Road (JBWR) which starts in Moosonee and travels 312km up the western coast of James Bay connecting the communities of Fort Albany and Kashechewan and eventually ending at the Attawapiskat First Nation
The road is a lifeline to the remote areas in the James Bay Lowlands of Northern Ontario and without it existing and future development of this part of the country would not be possible
In fact itrsquos thanks to the road that K Corp helped build that companies like De Beers Canada are in the north
As most people know De Beers Canada made international headlines when it built the Victor Mine in 2006 (the first dia-mond mine in Ontario at a cost of about $1 billion) approxi-mately 90km west of the coastal community of Attawapiskat First Nation
Since the open-pit mine began production in 2008 with an annual tonne processing capacity of about 27 million tonnes and an annual carat production capacity of 600000 carats it has proven to be a key to Northern Ontario development and its communities
With an estimated mine life to 2018 the Victor Minersquos ener-gy and equipment needs will continue for at least two more years and according to K Corp cannot be met without the JBWR
Air transport is prohibitively expensive so the winter road is considered by far the most affordable way to supply the remote mine with the necessary 450 loads of cargo and 10 to 11 million litres of diesel fuel that it consumes each year
But the Victor Mine is not the only site that requires a reliable supply of goods and services Similar transportation challenges also face other remote northern First Nations communities that need to truck goods and fuel via seasonal winter roads
With the exception of Moose Cree First Nation which has a railway line to Cochrane air travel is the only transportation available year-round for the three other First Nations which for most community residents is prohibitively expensive
Thanks again to the JBWR it provides a critical socio-eco-nomic tie between the communities as well as a significant source of employment and to keep relationship going Kimesskanemenow Corporation and De Beers Canada have entered into a productive partnership
In 2004 the two parties signed a Winter Road Agreement which was re-negotiated in 2014 Under the agreement De Beers pays the bulk of the costs of the roadrsquos construction and maintenance costs while the balance of the costs are provided by the Provincial and Federal governments
Kimesskanemenow Corporation is guided by three central priorities Building capacity in its communities ensuring that its
member communities receive maximum benefits and mainte-nance of traditional culture which naturally includes environ-mental protection
The company also ensures that money from building and main-taining the road stays in the hands of local First Nation members
To do this the road is constructed and maintained entirely by local community members either as direct employees or through local contractors This has required developing capacity which the company has done through training and education programs
The practical effect of these guiding principals is that during the winter months roughly 200 individuals work on the road helping ensure that the road brings economic benefits to individ-uals families and communities
For many seasonal employment gained through constructing and maintaining the winter road is the only consistently avail-able work in the community Furthermore dividends from the company go back to the hands of the communities to be used as they see fit
Finally Kimesskanemenow Corporation donates to commu-nity-based initiatives that will benefit the communities with each of the four communities allotted an annual amount
Reflecting the corporationrsquos central values the money is used to fund initiatives that benefit youth the environment or main-tain traditional ways of living
One example of the programs that the corporation helps fund is CreeFest a celebration of Cree culture that is held annually in the Mushkegowuk communities
The company also funds the Edward W Chilton scholarship at Northern College in honour of the late Ed Chilton the com-panyrsquos first president The scholarship is awarded to community members to further their education
K Corprsquos list of smaller grants available online include many community and cultural programs that maintain the vitality of all these communities
Kimesskanemenow Corporation maintains an important piece of infrastructure that benefits the communities and allows for the ongoing operation of the Victor Diamond Mine As a cooperative venture the corporation has proven itself to be invaluable to both the communities and the mining company CMJ
Thanks to the efforts of K Corp the Western James Bay Winter Road provides access to the remote areas of Northern Ontario
Creeindd 21 2016-01-12 1052 AM
22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
WHERE WE STANDSERIOUS QUESTIONS DESERVE SOME SERIOUS ANSWERS Staff Report
I trsquos been just over a year since the Native Womenrsquos Association of Canada (NWAC) received funding from Aboriginal Affairs and Northern Development Canada (AANDC) to identify and ask questions about the barriers
indigenous women face and secondly to get direct and honest answers as to what are the realistic opportunities for them in the mining industry
Basically as the headline says they want to know where they stand insofar as their positions within the mining industry are concerned
The questions NWAC put on the table at a recent forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development dealt with two perspectives the first looked into resource development corporations and sought to understand what these corporations knew about aboriginal women and the second was from aboriginal women and how they viewed the mining industry with regards to economic devel-opment and employment opportunities
The forum was attended by an impressive gathering of female indigenous leaders and representatives from the resource devel-opment sector A full list of the participants is featured in the adjacent box
The intent of the engagementdiscussion session was to initi-ate a constructive dialogue amongst the participants with the overall goal of
s increasing the labour market participation of indigenous women in the resource development sector
s ensuring indigenous womenrsquos voices are heard in the devel-opment of these projects
s sharing of information on the industry and
s discussing the various opportunities and barriers facing indigenous women who wish to work in the industry
A DISTINGUISHED PANEL OF WOMEN ATTEND OTTAWA FORUM
Siobhan Dooley Hatch EngineeringGrant Goddard New Gold Inc (Rainy River Project)Karina Kesserwan Kesserwan (Law ndash Strategy ndash Solutions)Stacey Jack New Gold Inc (Rainy River Project)Christopher Lefebvre Aramark CanadaMireille Pilotte New Millennium IronRachel Pineault Detour Gold CorporationKate Rafter Employment and Social Development CanadaLouise Reid-Schloen Hydro OttawaJamie Saulnier Running Deer ResourcesNancy Veal Resolute Forest ProductsMarilyn Capreol Shawanaga First NationPamela Eyles BC Native Womenrsquos AssociationSusan Forth Shawanaga First NationElize Hartley Ontario Native Womenrsquos AssociationMarian Horne Yukon Aboriginal Womenrsquos CouncilNoreen McAteer Alberta Aboriginal Womenrsquos SocietyVerna Polson Quebec Native Women IncTori-Lynn Wanotch Saskatchewan Aboriginal Womenrsquos Circle CorpBeverly Blanchard Native Womenrsquos Association of CanadaSydney Ducharme Native Womenrsquos Association of CanadaClaudette Dumont-Smith Native Womenrsquos Association of CanadaDan Peters Native Womenrsquos Association of CanadaMerv McLeod McLeod-Wood Associates IncNancy Wood McLeod-Wood Associates Inc
Beverly Blanchard (standing) of the Native Womenrsquos Association of Canada addresses delegates attending a forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development
Women in Miningindd 22 2016-01-12 1053 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 23
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
andor economic opportunitiesFor example when impact benefit agreements (IBAs) are
completed they tend to be locally focused and may not consider indigenous women that do not reside in the community or indigenous individuals who are not members of the particular community
From the indigenous womenrsquos perspective at the forum it was noted that indigenous womenrsquos opinions on the resource devel-opment sector were varied and divergent Like most things in life there were some women who are in favour of the mining industry and there are some who are against it
Many who are against the sector perceived it to be counter to the traditional role of indigenous women as water-keepers and caretakers of Mother Earth but on the other hand research found that there was also a significant percentage of indigenous women who were ambivalent towards the industry
Due to length and detail of the forum (from which this article is based) the information has been drastically reduced to fit the space
For complete details and a copy of the full Bridging the Gap Aboriginal Women and Resource Development Report please contact Beverly Blanchard Strategic Policy Partnership and Planning NWAC Ottawa bblanchardnwacca CMJ
INDIGENOUS WOMEN and MINING
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d e P e n d a B L e P r o J e c t d e v e L o P M e n t
Women in Miningindd 23 2016-01-12 1053 AM
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A s probably many of you know times are tough right now Commodity prices are slumping across the board affected by an overall slowing global economy that is being felt throughout Canada
But even during a stubborn downturn in global demand for many minerals and metals itrsquos no time to get down on mining because mining never goes away
Minerals and metals are the very foundation of virtually all of the goods we depend on in our daily lives The world will con-tinue to need mining and Canada can and should continue to be an important place where mining happens
A Look at Market ConditionsSo first how bad is the market
Global economic growth has been volatile in recent years Every time the Bank of Canada the IMF World Bank or others make growth projections it seems they amend them a few months later and always downwards With few exceptions the global economy is not doing well at all
The key economy for the mining sector is China which today consumes almost 50 per cent of the worldrsquos minerals and metals And Chinarsquos growth rate has been slowing along with growth rates in other emerging markets like Brazil Mexico and several Asian and African countries that are also falling
The one major exception is India whose growth is around 75 per cent and with its 13 billion people is seen as the next China in terms of minerals and metals consumption as the coun-try begins to rapidly industrialize
A Bedrock of the Canadian EconomyEven in a slump miningrsquos contribution to Canada is enormous
Despite some job losses at some operations mining and min-eral processing are directly employing more than 375000 Canadians including well over 10000 Indigenous Canadians paying the highest average industrial wage in the country Mining remains proportionally the largest employer of indige-nous Canadians
Mining accounts for roughly 20 per cent of the overall value of Canadian exports valued at nearly $90 billion
Nationally we pay an average of $38 billion annually in corporate taxes and royalties to federal provincial and territorial governments
Mining companies are also paying significant royalties to indig-enous communities across the country indirectly through govern-ment resource revenue sharing and in some cases directly
Wersquore also supporting the second largest mining-supply sector in the world More than 3700 companies provide a wide spec-trum of services to the Canadian mining industry with an increasing number of these being indigenous-owned businesses
A major challenge facing mining in Canadarsquos north today is its lack of infrastructure The north is our industryrsquos future but the territories and the northern parts of our provinces lack criti-cal infrastructuremdashroads electricity ports railwaysmdashto service mines and get products to market
This lack of infrastructure is felt by communities many of them indigenous located in the north
According to the Mining Association of Canadarsquos (MAC)
MINING AND INDIGENOUS PEOPLES CANADArsquoS FUTURE By Pierre Gratton
Delegates attending the 23rd Annual Conference of the Canadian Aboriginal Minerals Association in Vancouver listen to talks during the three-day event
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 24 2016-01-12 1054 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 25
FIRST NATIONS and MINING
research it costs about 2 to 25 times as much to build and operate a gold and base metal mine in northern Canada off grid than in the south
We should be looking at ways to level the playing field in the north where infrastructure is lacking Canada needs a strategic collaboration involving industry and governments federal pro-vincial territorial and Indigenous to get this nation-building infrastructure in place
This can be done by increasing government investment in new infrastructure or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good
Additionally there is the issue of indigenous rights and title and how this affects the project certainty
Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and if necessary accommo-dated for activities on traditional indigenous territories affects project timelines and certainty
Connected to this is the concept of social license which in general terms defines the support earned by proponents to pro-ceed with and operate their project
The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects
That is a very complex issue The Supreme Court of Canada in its recent decision on the
Tsilhqotrsquoin First Nationrsquos claim recognized indigenous title a first in Canadian law
It also provided clear guidance on the criteria needed to demonstrate title and on the rights and obligations that flow from that in the process also identifying where title was found not to exist
It is a significant decision that provides us all with much more clarity going forward
But back to the question of the vetoThe Court clearly recognizes that in some circumstances the
right to title can be limited by the Crown So there is no abso-lute veto under Canadian law even in the case where title has been proven
But for the Crown to place limits on indigenous title it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead ndash a very significant test
At its core the decision continues a balancing act between empowering and limiting the authority of both indigenous peo-ples and governments The Court was very wise
So what does this mean for proponents There is the law and then there is reality No proponent
wants or should want to build a project that is unwelcome or opposed by local communities This is quite frankly an unsus-tainable option and one best avoided And most communities are open to the opportunities mining brings and increasingly so
Letrsquos look at reality in a different way
Today there are more than 250 agreements between mining companies and indigenous communities across the country It is decidedly rare that projects proceed without impact benefit or other such agreements concluded
These agreements which have matured with time and experi-ence provide significant local benefits and assurances including
Commitments on business procurement and often assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide
Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight
Support for skills training and mentoringDirect economic or financial benefitsSome of these agreements are transforming communities in
very significant waysNewgoldrsquos New Afton project in Kamloops is one such exam-
ple The diamond mines in the NWT are others as is Voiseyrsquos Bay We are seeing high levels of indigenous participation as high as 60 per cent in the case of Voiseyrsquos Bay increasing levels of post-secondary education and significantly improved eco-nomic and social outcomes
Nonetheless it is undeniable that the negotiation of these agreements takes time Trust must be built between the parties and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the pro-posed mine prior to it proceeding
Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association Photo by Tracey Sanders Photography
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 25 2016-01-12 1054 AM
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
AME BCindd 27 2016-01-12 110 PM
28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
PROFESSIONAL DIRECTORYA
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Professional Directoryindd 33 2016-01-12 1056 AM
W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
- 002
- 003
- 004
- 005
- 006
- 007
- 008-009
- 010-015
- 016-019
- 020-021
- 022-023
- 024-026
- 027
- 028-030
- 031
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JANUARY 2016 CANADIAN MINING JOURNAL | 19
on Reclamation (BCTRCR) and the Mining Association of BC (MABC) in recognition for outstanding practices in its fish habitat restoration program a program that actually increased the available fish habitat in the area of the mine as well as its successful relationship building efforts with First Nations
Even before the mine was built the company recognized that its minersquos footprint could have an impact on the available fisher-ies habitat in the area In particular ldquoCreek 4rdquo a known fish-bearing stream was expected to be impacted and so a plan was made to conduct some habitat enhancements in the area
Fisheries surveys conducted by Hatfield Consultants of North Vancouver identified nearby ldquoCreek Mrdquo which at the time was not a fish-bearing stream due to a naturally occurring barrier to fish ndashie a steep gradient reach that stopped any fish from reaching a headwater pond
Huckleberry Minersquos plan involved constructing a series of steps or weirs lined with geotextiles and anchored with rock fill These works were constructed by a team from Cariboo Divers from designs prepared by Hatfield Consultants
Subsequent fish surveys conducted between 2001 and 2011 showed initial success and that adult rainbow trout were present in the headwater pond and juveniles were present in the lower reaches
However subsequent surveys conducted between 2008 and 2011 indicated that the juvenile fish numbers decreased to record lows in 2011 The decline in fish numbers was attributed to failure of the weirs in the lower and middle fishways causing juveniles to become stranded in isolated pools and precluding adults from reaching the preferred spawning habitat between the lower and middle fishways
When initial monitoring of the remediated area in 2013 and 2014 was conducted Environmental Monitoring Assistants from the Yinka Dene Economic Limited Partnership and the Nootsenay Enterprises Ltd were called to assist in the evaluation of the stability of the constructed works as well as presence of fish and the structural integrity of the fishways have remained intact through high-flow periods with no erosion or undermin-ing of the weir structures
Cody Reid Deputy Chief amp Environmental Coordinator Nee Tahi Buhn Indian Band said ldquoThe design construction monitoring and maintenance of the Creek M fishway has led to an overall net increase in fish habitat in the area surrounding the mine in Tahtsa Reachrdquo
And David Belford Mineral and Natural Resources Liaison Officer Wetrsquosuwetrsquoen addedrdquo The HML Environmental team and participating consultants are to be commended on their proactive approach to reclaiming the fish habitat and to increas-ing that habitat within the mine footrdquo
During the 2013 fish survey 39 rainbow trout were captured the largest number of fish observed since 2008 These observa-tions were made even while construction of the middle reach fishways was ongoing
Marke Wong says that Huckleberryrsquos plans are to continue monitoring to confirm the effectiveness of the restoration work including hydraulic functioning physical stability and structural integrity fish distribution and net gain
From the operation of a mine in the mountains to the refur-bishing of a fishway in a local waterway Huckleberry Mines Ltd continues to show its appreciation and respect for the environment and the First Nations communities it works with in British Columbia
Perhaps the most important message for industry is that the example set by Huckleberry Mine and its First Nation commu-nity partners demonstrates that when parties begin to have meaningful dialogue and understanding develops on both sides then the path to cooperation and partnership is open
In the case of Huckleberry Mine this has led to the devel-opment of partnerships that have helped it expand its opera-tions and have help provide support during tough economic times
The nomination of Huckleberry Mines Ltd for the 2014 BC Metal Mine Reclamation Award came from its First Nation Partners because as Chief Karen Ogen said ldquoOur partnership with Huckleberry Mines has made a big difference in our small community Since the 2013 partnership agreement was signed our people have benefitted from jobs training and business opportunities Our experience with Huckleberry has been very positive and we have greatly appreciated Huckleberryrsquos efforts to engage with our community and to work with our business arm the Yinka Dene Economic Partnership The Wetrsquosuwetrsquoen First Nation is very pleased to nominate Huckleberry Mines for this awardrdquo
And lastly Mike Robertson added ldquo The Cheslatta Carrier Nation has been a successful Huckleberry Mines Limited con-tractor on a number of projects including a tailings dam We have our members employed by Huckleberry Mines and we maintain regular contact with its staff and management on all aspects of operations We support the nomination because we are confident they will continue and enhance their innovative and progressive practices of returning the land to a near natural self-sustaining staterdquo CMJ
FIRST NATIONS and MININGHUCKLEBERRY MINE
Material for Huckleberry Minersquos step-building program being delivered to the site by helicopter
Huckleberryindd 19 2016-01-12 1141 AM
20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
FIRST NATIONS COMPANY PROVIDES VITAL ROADBUILDING SERVICES
TO REMOTE COMMUNITIESStaff Report
REWARDSROADto
Creeindd 20 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 21
FIRST NATIONS and MINING
K imesskanemenow is a Cree word that means ldquoThis is our Roadrdquo a fitting name for the winter road management company that is owned and operated by four northern First Nations Attawapiskat Fort
Albany Kashechewan and Moose Cree Their company Kimesskanemenow Corporation (also
known as K Corp) was founded in 2001 and for the past 15 years has been responsible for building and maintaining the Western James Bay Winter Road (JBWR) which starts in Moosonee and travels 312km up the western coast of James Bay connecting the communities of Fort Albany and Kashechewan and eventually ending at the Attawapiskat First Nation
The road is a lifeline to the remote areas in the James Bay Lowlands of Northern Ontario and without it existing and future development of this part of the country would not be possible
In fact itrsquos thanks to the road that K Corp helped build that companies like De Beers Canada are in the north
As most people know De Beers Canada made international headlines when it built the Victor Mine in 2006 (the first dia-mond mine in Ontario at a cost of about $1 billion) approxi-mately 90km west of the coastal community of Attawapiskat First Nation
Since the open-pit mine began production in 2008 with an annual tonne processing capacity of about 27 million tonnes and an annual carat production capacity of 600000 carats it has proven to be a key to Northern Ontario development and its communities
With an estimated mine life to 2018 the Victor Minersquos ener-gy and equipment needs will continue for at least two more years and according to K Corp cannot be met without the JBWR
Air transport is prohibitively expensive so the winter road is considered by far the most affordable way to supply the remote mine with the necessary 450 loads of cargo and 10 to 11 million litres of diesel fuel that it consumes each year
But the Victor Mine is not the only site that requires a reliable supply of goods and services Similar transportation challenges also face other remote northern First Nations communities that need to truck goods and fuel via seasonal winter roads
With the exception of Moose Cree First Nation which has a railway line to Cochrane air travel is the only transportation available year-round for the three other First Nations which for most community residents is prohibitively expensive
Thanks again to the JBWR it provides a critical socio-eco-nomic tie between the communities as well as a significant source of employment and to keep relationship going Kimesskanemenow Corporation and De Beers Canada have entered into a productive partnership
In 2004 the two parties signed a Winter Road Agreement which was re-negotiated in 2014 Under the agreement De Beers pays the bulk of the costs of the roadrsquos construction and maintenance costs while the balance of the costs are provided by the Provincial and Federal governments
Kimesskanemenow Corporation is guided by three central priorities Building capacity in its communities ensuring that its
member communities receive maximum benefits and mainte-nance of traditional culture which naturally includes environ-mental protection
The company also ensures that money from building and main-taining the road stays in the hands of local First Nation members
To do this the road is constructed and maintained entirely by local community members either as direct employees or through local contractors This has required developing capacity which the company has done through training and education programs
The practical effect of these guiding principals is that during the winter months roughly 200 individuals work on the road helping ensure that the road brings economic benefits to individ-uals families and communities
For many seasonal employment gained through constructing and maintaining the winter road is the only consistently avail-able work in the community Furthermore dividends from the company go back to the hands of the communities to be used as they see fit
Finally Kimesskanemenow Corporation donates to commu-nity-based initiatives that will benefit the communities with each of the four communities allotted an annual amount
Reflecting the corporationrsquos central values the money is used to fund initiatives that benefit youth the environment or main-tain traditional ways of living
One example of the programs that the corporation helps fund is CreeFest a celebration of Cree culture that is held annually in the Mushkegowuk communities
The company also funds the Edward W Chilton scholarship at Northern College in honour of the late Ed Chilton the com-panyrsquos first president The scholarship is awarded to community members to further their education
K Corprsquos list of smaller grants available online include many community and cultural programs that maintain the vitality of all these communities
Kimesskanemenow Corporation maintains an important piece of infrastructure that benefits the communities and allows for the ongoing operation of the Victor Diamond Mine As a cooperative venture the corporation has proven itself to be invaluable to both the communities and the mining company CMJ
Thanks to the efforts of K Corp the Western James Bay Winter Road provides access to the remote areas of Northern Ontario
Creeindd 21 2016-01-12 1052 AM
22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
WHERE WE STANDSERIOUS QUESTIONS DESERVE SOME SERIOUS ANSWERS Staff Report
I trsquos been just over a year since the Native Womenrsquos Association of Canada (NWAC) received funding from Aboriginal Affairs and Northern Development Canada (AANDC) to identify and ask questions about the barriers
indigenous women face and secondly to get direct and honest answers as to what are the realistic opportunities for them in the mining industry
Basically as the headline says they want to know where they stand insofar as their positions within the mining industry are concerned
The questions NWAC put on the table at a recent forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development dealt with two perspectives the first looked into resource development corporations and sought to understand what these corporations knew about aboriginal women and the second was from aboriginal women and how they viewed the mining industry with regards to economic devel-opment and employment opportunities
The forum was attended by an impressive gathering of female indigenous leaders and representatives from the resource devel-opment sector A full list of the participants is featured in the adjacent box
The intent of the engagementdiscussion session was to initi-ate a constructive dialogue amongst the participants with the overall goal of
s increasing the labour market participation of indigenous women in the resource development sector
s ensuring indigenous womenrsquos voices are heard in the devel-opment of these projects
s sharing of information on the industry and
s discussing the various opportunities and barriers facing indigenous women who wish to work in the industry
A DISTINGUISHED PANEL OF WOMEN ATTEND OTTAWA FORUM
Siobhan Dooley Hatch EngineeringGrant Goddard New Gold Inc (Rainy River Project)Karina Kesserwan Kesserwan (Law ndash Strategy ndash Solutions)Stacey Jack New Gold Inc (Rainy River Project)Christopher Lefebvre Aramark CanadaMireille Pilotte New Millennium IronRachel Pineault Detour Gold CorporationKate Rafter Employment and Social Development CanadaLouise Reid-Schloen Hydro OttawaJamie Saulnier Running Deer ResourcesNancy Veal Resolute Forest ProductsMarilyn Capreol Shawanaga First NationPamela Eyles BC Native Womenrsquos AssociationSusan Forth Shawanaga First NationElize Hartley Ontario Native Womenrsquos AssociationMarian Horne Yukon Aboriginal Womenrsquos CouncilNoreen McAteer Alberta Aboriginal Womenrsquos SocietyVerna Polson Quebec Native Women IncTori-Lynn Wanotch Saskatchewan Aboriginal Womenrsquos Circle CorpBeverly Blanchard Native Womenrsquos Association of CanadaSydney Ducharme Native Womenrsquos Association of CanadaClaudette Dumont-Smith Native Womenrsquos Association of CanadaDan Peters Native Womenrsquos Association of CanadaMerv McLeod McLeod-Wood Associates IncNancy Wood McLeod-Wood Associates Inc
Beverly Blanchard (standing) of the Native Womenrsquos Association of Canada addresses delegates attending a forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development
Women in Miningindd 22 2016-01-12 1053 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 23
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
andor economic opportunitiesFor example when impact benefit agreements (IBAs) are
completed they tend to be locally focused and may not consider indigenous women that do not reside in the community or indigenous individuals who are not members of the particular community
From the indigenous womenrsquos perspective at the forum it was noted that indigenous womenrsquos opinions on the resource devel-opment sector were varied and divergent Like most things in life there were some women who are in favour of the mining industry and there are some who are against it
Many who are against the sector perceived it to be counter to the traditional role of indigenous women as water-keepers and caretakers of Mother Earth but on the other hand research found that there was also a significant percentage of indigenous women who were ambivalent towards the industry
Due to length and detail of the forum (from which this article is based) the information has been drastically reduced to fit the space
For complete details and a copy of the full Bridging the Gap Aboriginal Women and Resource Development Report please contact Beverly Blanchard Strategic Policy Partnership and Planning NWAC Ottawa bblanchardnwacca CMJ
INDIGENOUS WOMEN and MINING
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Women in Miningindd 23 2016-01-12 1053 AM
24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
A s probably many of you know times are tough right now Commodity prices are slumping across the board affected by an overall slowing global economy that is being felt throughout Canada
But even during a stubborn downturn in global demand for many minerals and metals itrsquos no time to get down on mining because mining never goes away
Minerals and metals are the very foundation of virtually all of the goods we depend on in our daily lives The world will con-tinue to need mining and Canada can and should continue to be an important place where mining happens
A Look at Market ConditionsSo first how bad is the market
Global economic growth has been volatile in recent years Every time the Bank of Canada the IMF World Bank or others make growth projections it seems they amend them a few months later and always downwards With few exceptions the global economy is not doing well at all
The key economy for the mining sector is China which today consumes almost 50 per cent of the worldrsquos minerals and metals And Chinarsquos growth rate has been slowing along with growth rates in other emerging markets like Brazil Mexico and several Asian and African countries that are also falling
The one major exception is India whose growth is around 75 per cent and with its 13 billion people is seen as the next China in terms of minerals and metals consumption as the coun-try begins to rapidly industrialize
A Bedrock of the Canadian EconomyEven in a slump miningrsquos contribution to Canada is enormous
Despite some job losses at some operations mining and min-eral processing are directly employing more than 375000 Canadians including well over 10000 Indigenous Canadians paying the highest average industrial wage in the country Mining remains proportionally the largest employer of indige-nous Canadians
Mining accounts for roughly 20 per cent of the overall value of Canadian exports valued at nearly $90 billion
Nationally we pay an average of $38 billion annually in corporate taxes and royalties to federal provincial and territorial governments
Mining companies are also paying significant royalties to indig-enous communities across the country indirectly through govern-ment resource revenue sharing and in some cases directly
Wersquore also supporting the second largest mining-supply sector in the world More than 3700 companies provide a wide spec-trum of services to the Canadian mining industry with an increasing number of these being indigenous-owned businesses
A major challenge facing mining in Canadarsquos north today is its lack of infrastructure The north is our industryrsquos future but the territories and the northern parts of our provinces lack criti-cal infrastructuremdashroads electricity ports railwaysmdashto service mines and get products to market
This lack of infrastructure is felt by communities many of them indigenous located in the north
According to the Mining Association of Canadarsquos (MAC)
MINING AND INDIGENOUS PEOPLES CANADArsquoS FUTURE By Pierre Gratton
Delegates attending the 23rd Annual Conference of the Canadian Aboriginal Minerals Association in Vancouver listen to talks during the three-day event
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Macindd 24 2016-01-12 1054 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 25
FIRST NATIONS and MINING
research it costs about 2 to 25 times as much to build and operate a gold and base metal mine in northern Canada off grid than in the south
We should be looking at ways to level the playing field in the north where infrastructure is lacking Canada needs a strategic collaboration involving industry and governments federal pro-vincial territorial and Indigenous to get this nation-building infrastructure in place
This can be done by increasing government investment in new infrastructure or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good
Additionally there is the issue of indigenous rights and title and how this affects the project certainty
Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and if necessary accommo-dated for activities on traditional indigenous territories affects project timelines and certainty
Connected to this is the concept of social license which in general terms defines the support earned by proponents to pro-ceed with and operate their project
The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects
That is a very complex issue The Supreme Court of Canada in its recent decision on the
Tsilhqotrsquoin First Nationrsquos claim recognized indigenous title a first in Canadian law
It also provided clear guidance on the criteria needed to demonstrate title and on the rights and obligations that flow from that in the process also identifying where title was found not to exist
It is a significant decision that provides us all with much more clarity going forward
But back to the question of the vetoThe Court clearly recognizes that in some circumstances the
right to title can be limited by the Crown So there is no abso-lute veto under Canadian law even in the case where title has been proven
But for the Crown to place limits on indigenous title it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead ndash a very significant test
At its core the decision continues a balancing act between empowering and limiting the authority of both indigenous peo-ples and governments The Court was very wise
So what does this mean for proponents There is the law and then there is reality No proponent
wants or should want to build a project that is unwelcome or opposed by local communities This is quite frankly an unsus-tainable option and one best avoided And most communities are open to the opportunities mining brings and increasingly so
Letrsquos look at reality in a different way
Today there are more than 250 agreements between mining companies and indigenous communities across the country It is decidedly rare that projects proceed without impact benefit or other such agreements concluded
These agreements which have matured with time and experi-ence provide significant local benefits and assurances including
Commitments on business procurement and often assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide
Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight
Support for skills training and mentoringDirect economic or financial benefitsSome of these agreements are transforming communities in
very significant waysNewgoldrsquos New Afton project in Kamloops is one such exam-
ple The diamond mines in the NWT are others as is Voiseyrsquos Bay We are seeing high levels of indigenous participation as high as 60 per cent in the case of Voiseyrsquos Bay increasing levels of post-secondary education and significantly improved eco-nomic and social outcomes
Nonetheless it is undeniable that the negotiation of these agreements takes time Trust must be built between the parties and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the pro-posed mine prior to it proceeding
Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association Photo by Tracey Sanders Photography
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Macindd 25 2016-01-12 1054 AM
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
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Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
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JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Nfld Reportindd 30 2016-01-12 1055 AM
Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
PROFESSIONAL DIRECTORYA
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W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
- 002
- 003
- 004
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- 006
- 007
- 008-009
- 010-015
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20 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
FIRST NATIONS COMPANY PROVIDES VITAL ROADBUILDING SERVICES
TO REMOTE COMMUNITIESStaff Report
REWARDSROADto
Creeindd 20 2016-01-12 1052 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 21
FIRST NATIONS and MINING
K imesskanemenow is a Cree word that means ldquoThis is our Roadrdquo a fitting name for the winter road management company that is owned and operated by four northern First Nations Attawapiskat Fort
Albany Kashechewan and Moose Cree Their company Kimesskanemenow Corporation (also
known as K Corp) was founded in 2001 and for the past 15 years has been responsible for building and maintaining the Western James Bay Winter Road (JBWR) which starts in Moosonee and travels 312km up the western coast of James Bay connecting the communities of Fort Albany and Kashechewan and eventually ending at the Attawapiskat First Nation
The road is a lifeline to the remote areas in the James Bay Lowlands of Northern Ontario and without it existing and future development of this part of the country would not be possible
In fact itrsquos thanks to the road that K Corp helped build that companies like De Beers Canada are in the north
As most people know De Beers Canada made international headlines when it built the Victor Mine in 2006 (the first dia-mond mine in Ontario at a cost of about $1 billion) approxi-mately 90km west of the coastal community of Attawapiskat First Nation
Since the open-pit mine began production in 2008 with an annual tonne processing capacity of about 27 million tonnes and an annual carat production capacity of 600000 carats it has proven to be a key to Northern Ontario development and its communities
With an estimated mine life to 2018 the Victor Minersquos ener-gy and equipment needs will continue for at least two more years and according to K Corp cannot be met without the JBWR
Air transport is prohibitively expensive so the winter road is considered by far the most affordable way to supply the remote mine with the necessary 450 loads of cargo and 10 to 11 million litres of diesel fuel that it consumes each year
But the Victor Mine is not the only site that requires a reliable supply of goods and services Similar transportation challenges also face other remote northern First Nations communities that need to truck goods and fuel via seasonal winter roads
With the exception of Moose Cree First Nation which has a railway line to Cochrane air travel is the only transportation available year-round for the three other First Nations which for most community residents is prohibitively expensive
Thanks again to the JBWR it provides a critical socio-eco-nomic tie between the communities as well as a significant source of employment and to keep relationship going Kimesskanemenow Corporation and De Beers Canada have entered into a productive partnership
In 2004 the two parties signed a Winter Road Agreement which was re-negotiated in 2014 Under the agreement De Beers pays the bulk of the costs of the roadrsquos construction and maintenance costs while the balance of the costs are provided by the Provincial and Federal governments
Kimesskanemenow Corporation is guided by three central priorities Building capacity in its communities ensuring that its
member communities receive maximum benefits and mainte-nance of traditional culture which naturally includes environ-mental protection
The company also ensures that money from building and main-taining the road stays in the hands of local First Nation members
To do this the road is constructed and maintained entirely by local community members either as direct employees or through local contractors This has required developing capacity which the company has done through training and education programs
The practical effect of these guiding principals is that during the winter months roughly 200 individuals work on the road helping ensure that the road brings economic benefits to individ-uals families and communities
For many seasonal employment gained through constructing and maintaining the winter road is the only consistently avail-able work in the community Furthermore dividends from the company go back to the hands of the communities to be used as they see fit
Finally Kimesskanemenow Corporation donates to commu-nity-based initiatives that will benefit the communities with each of the four communities allotted an annual amount
Reflecting the corporationrsquos central values the money is used to fund initiatives that benefit youth the environment or main-tain traditional ways of living
One example of the programs that the corporation helps fund is CreeFest a celebration of Cree culture that is held annually in the Mushkegowuk communities
The company also funds the Edward W Chilton scholarship at Northern College in honour of the late Ed Chilton the com-panyrsquos first president The scholarship is awarded to community members to further their education
K Corprsquos list of smaller grants available online include many community and cultural programs that maintain the vitality of all these communities
Kimesskanemenow Corporation maintains an important piece of infrastructure that benefits the communities and allows for the ongoing operation of the Victor Diamond Mine As a cooperative venture the corporation has proven itself to be invaluable to both the communities and the mining company CMJ
Thanks to the efforts of K Corp the Western James Bay Winter Road provides access to the remote areas of Northern Ontario
Creeindd 21 2016-01-12 1052 AM
22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
WHERE WE STANDSERIOUS QUESTIONS DESERVE SOME SERIOUS ANSWERS Staff Report
I trsquos been just over a year since the Native Womenrsquos Association of Canada (NWAC) received funding from Aboriginal Affairs and Northern Development Canada (AANDC) to identify and ask questions about the barriers
indigenous women face and secondly to get direct and honest answers as to what are the realistic opportunities for them in the mining industry
Basically as the headline says they want to know where they stand insofar as their positions within the mining industry are concerned
The questions NWAC put on the table at a recent forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development dealt with two perspectives the first looked into resource development corporations and sought to understand what these corporations knew about aboriginal women and the second was from aboriginal women and how they viewed the mining industry with regards to economic devel-opment and employment opportunities
The forum was attended by an impressive gathering of female indigenous leaders and representatives from the resource devel-opment sector A full list of the participants is featured in the adjacent box
The intent of the engagementdiscussion session was to initi-ate a constructive dialogue amongst the participants with the overall goal of
s increasing the labour market participation of indigenous women in the resource development sector
s ensuring indigenous womenrsquos voices are heard in the devel-opment of these projects
s sharing of information on the industry and
s discussing the various opportunities and barriers facing indigenous women who wish to work in the industry
A DISTINGUISHED PANEL OF WOMEN ATTEND OTTAWA FORUM
Siobhan Dooley Hatch EngineeringGrant Goddard New Gold Inc (Rainy River Project)Karina Kesserwan Kesserwan (Law ndash Strategy ndash Solutions)Stacey Jack New Gold Inc (Rainy River Project)Christopher Lefebvre Aramark CanadaMireille Pilotte New Millennium IronRachel Pineault Detour Gold CorporationKate Rafter Employment and Social Development CanadaLouise Reid-Schloen Hydro OttawaJamie Saulnier Running Deer ResourcesNancy Veal Resolute Forest ProductsMarilyn Capreol Shawanaga First NationPamela Eyles BC Native Womenrsquos AssociationSusan Forth Shawanaga First NationElize Hartley Ontario Native Womenrsquos AssociationMarian Horne Yukon Aboriginal Womenrsquos CouncilNoreen McAteer Alberta Aboriginal Womenrsquos SocietyVerna Polson Quebec Native Women IncTori-Lynn Wanotch Saskatchewan Aboriginal Womenrsquos Circle CorpBeverly Blanchard Native Womenrsquos Association of CanadaSydney Ducharme Native Womenrsquos Association of CanadaClaudette Dumont-Smith Native Womenrsquos Association of CanadaDan Peters Native Womenrsquos Association of CanadaMerv McLeod McLeod-Wood Associates IncNancy Wood McLeod-Wood Associates Inc
Beverly Blanchard (standing) of the Native Womenrsquos Association of Canada addresses delegates attending a forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development
Women in Miningindd 22 2016-01-12 1053 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 23
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
andor economic opportunitiesFor example when impact benefit agreements (IBAs) are
completed they tend to be locally focused and may not consider indigenous women that do not reside in the community or indigenous individuals who are not members of the particular community
From the indigenous womenrsquos perspective at the forum it was noted that indigenous womenrsquos opinions on the resource devel-opment sector were varied and divergent Like most things in life there were some women who are in favour of the mining industry and there are some who are against it
Many who are against the sector perceived it to be counter to the traditional role of indigenous women as water-keepers and caretakers of Mother Earth but on the other hand research found that there was also a significant percentage of indigenous women who were ambivalent towards the industry
Due to length and detail of the forum (from which this article is based) the information has been drastically reduced to fit the space
For complete details and a copy of the full Bridging the Gap Aboriginal Women and Resource Development Report please contact Beverly Blanchard Strategic Policy Partnership and Planning NWAC Ottawa bblanchardnwacca CMJ
INDIGENOUS WOMEN and MINING
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d e P e n d a B L e P r o J e c t d e v e L o P M e n t
Women in Miningindd 23 2016-01-12 1053 AM
24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
A s probably many of you know times are tough right now Commodity prices are slumping across the board affected by an overall slowing global economy that is being felt throughout Canada
But even during a stubborn downturn in global demand for many minerals and metals itrsquos no time to get down on mining because mining never goes away
Minerals and metals are the very foundation of virtually all of the goods we depend on in our daily lives The world will con-tinue to need mining and Canada can and should continue to be an important place where mining happens
A Look at Market ConditionsSo first how bad is the market
Global economic growth has been volatile in recent years Every time the Bank of Canada the IMF World Bank or others make growth projections it seems they amend them a few months later and always downwards With few exceptions the global economy is not doing well at all
The key economy for the mining sector is China which today consumes almost 50 per cent of the worldrsquos minerals and metals And Chinarsquos growth rate has been slowing along with growth rates in other emerging markets like Brazil Mexico and several Asian and African countries that are also falling
The one major exception is India whose growth is around 75 per cent and with its 13 billion people is seen as the next China in terms of minerals and metals consumption as the coun-try begins to rapidly industrialize
A Bedrock of the Canadian EconomyEven in a slump miningrsquos contribution to Canada is enormous
Despite some job losses at some operations mining and min-eral processing are directly employing more than 375000 Canadians including well over 10000 Indigenous Canadians paying the highest average industrial wage in the country Mining remains proportionally the largest employer of indige-nous Canadians
Mining accounts for roughly 20 per cent of the overall value of Canadian exports valued at nearly $90 billion
Nationally we pay an average of $38 billion annually in corporate taxes and royalties to federal provincial and territorial governments
Mining companies are also paying significant royalties to indig-enous communities across the country indirectly through govern-ment resource revenue sharing and in some cases directly
Wersquore also supporting the second largest mining-supply sector in the world More than 3700 companies provide a wide spec-trum of services to the Canadian mining industry with an increasing number of these being indigenous-owned businesses
A major challenge facing mining in Canadarsquos north today is its lack of infrastructure The north is our industryrsquos future but the territories and the northern parts of our provinces lack criti-cal infrastructuremdashroads electricity ports railwaysmdashto service mines and get products to market
This lack of infrastructure is felt by communities many of them indigenous located in the north
According to the Mining Association of Canadarsquos (MAC)
MINING AND INDIGENOUS PEOPLES CANADArsquoS FUTURE By Pierre Gratton
Delegates attending the 23rd Annual Conference of the Canadian Aboriginal Minerals Association in Vancouver listen to talks during the three-day event
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 24 2016-01-12 1054 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 25
FIRST NATIONS and MINING
research it costs about 2 to 25 times as much to build and operate a gold and base metal mine in northern Canada off grid than in the south
We should be looking at ways to level the playing field in the north where infrastructure is lacking Canada needs a strategic collaboration involving industry and governments federal pro-vincial territorial and Indigenous to get this nation-building infrastructure in place
This can be done by increasing government investment in new infrastructure or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good
Additionally there is the issue of indigenous rights and title and how this affects the project certainty
Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and if necessary accommo-dated for activities on traditional indigenous territories affects project timelines and certainty
Connected to this is the concept of social license which in general terms defines the support earned by proponents to pro-ceed with and operate their project
The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects
That is a very complex issue The Supreme Court of Canada in its recent decision on the
Tsilhqotrsquoin First Nationrsquos claim recognized indigenous title a first in Canadian law
It also provided clear guidance on the criteria needed to demonstrate title and on the rights and obligations that flow from that in the process also identifying where title was found not to exist
It is a significant decision that provides us all with much more clarity going forward
But back to the question of the vetoThe Court clearly recognizes that in some circumstances the
right to title can be limited by the Crown So there is no abso-lute veto under Canadian law even in the case where title has been proven
But for the Crown to place limits on indigenous title it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead ndash a very significant test
At its core the decision continues a balancing act between empowering and limiting the authority of both indigenous peo-ples and governments The Court was very wise
So what does this mean for proponents There is the law and then there is reality No proponent
wants or should want to build a project that is unwelcome or opposed by local communities This is quite frankly an unsus-tainable option and one best avoided And most communities are open to the opportunities mining brings and increasingly so
Letrsquos look at reality in a different way
Today there are more than 250 agreements between mining companies and indigenous communities across the country It is decidedly rare that projects proceed without impact benefit or other such agreements concluded
These agreements which have matured with time and experi-ence provide significant local benefits and assurances including
Commitments on business procurement and often assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide
Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight
Support for skills training and mentoringDirect economic or financial benefitsSome of these agreements are transforming communities in
very significant waysNewgoldrsquos New Afton project in Kamloops is one such exam-
ple The diamond mines in the NWT are others as is Voiseyrsquos Bay We are seeing high levels of indigenous participation as high as 60 per cent in the case of Voiseyrsquos Bay increasing levels of post-secondary education and significantly improved eco-nomic and social outcomes
Nonetheless it is undeniable that the negotiation of these agreements takes time Trust must be built between the parties and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the pro-posed mine prior to it proceeding
Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association Photo by Tracey Sanders Photography
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 25 2016-01-12 1054 AM
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
AME BCindd 27 2016-01-12 110 PM
28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
PROFESSIONAL DIRECTORYA
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W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
- 002
- 003
- 004
- 005
- 006
- 007
- 008-009
- 010-015
- 016-019
- 020-021
- 022-023
- 024-026
- 027
- 028-030
- 031
- 032
- 033
- 034
- 035
- 036
-
JANUARY 2016 CANADIAN MINING JOURNAL | 21
FIRST NATIONS and MINING
K imesskanemenow is a Cree word that means ldquoThis is our Roadrdquo a fitting name for the winter road management company that is owned and operated by four northern First Nations Attawapiskat Fort
Albany Kashechewan and Moose Cree Their company Kimesskanemenow Corporation (also
known as K Corp) was founded in 2001 and for the past 15 years has been responsible for building and maintaining the Western James Bay Winter Road (JBWR) which starts in Moosonee and travels 312km up the western coast of James Bay connecting the communities of Fort Albany and Kashechewan and eventually ending at the Attawapiskat First Nation
The road is a lifeline to the remote areas in the James Bay Lowlands of Northern Ontario and without it existing and future development of this part of the country would not be possible
In fact itrsquos thanks to the road that K Corp helped build that companies like De Beers Canada are in the north
As most people know De Beers Canada made international headlines when it built the Victor Mine in 2006 (the first dia-mond mine in Ontario at a cost of about $1 billion) approxi-mately 90km west of the coastal community of Attawapiskat First Nation
Since the open-pit mine began production in 2008 with an annual tonne processing capacity of about 27 million tonnes and an annual carat production capacity of 600000 carats it has proven to be a key to Northern Ontario development and its communities
With an estimated mine life to 2018 the Victor Minersquos ener-gy and equipment needs will continue for at least two more years and according to K Corp cannot be met without the JBWR
Air transport is prohibitively expensive so the winter road is considered by far the most affordable way to supply the remote mine with the necessary 450 loads of cargo and 10 to 11 million litres of diesel fuel that it consumes each year
But the Victor Mine is not the only site that requires a reliable supply of goods and services Similar transportation challenges also face other remote northern First Nations communities that need to truck goods and fuel via seasonal winter roads
With the exception of Moose Cree First Nation which has a railway line to Cochrane air travel is the only transportation available year-round for the three other First Nations which for most community residents is prohibitively expensive
Thanks again to the JBWR it provides a critical socio-eco-nomic tie between the communities as well as a significant source of employment and to keep relationship going Kimesskanemenow Corporation and De Beers Canada have entered into a productive partnership
In 2004 the two parties signed a Winter Road Agreement which was re-negotiated in 2014 Under the agreement De Beers pays the bulk of the costs of the roadrsquos construction and maintenance costs while the balance of the costs are provided by the Provincial and Federal governments
Kimesskanemenow Corporation is guided by three central priorities Building capacity in its communities ensuring that its
member communities receive maximum benefits and mainte-nance of traditional culture which naturally includes environ-mental protection
The company also ensures that money from building and main-taining the road stays in the hands of local First Nation members
To do this the road is constructed and maintained entirely by local community members either as direct employees or through local contractors This has required developing capacity which the company has done through training and education programs
The practical effect of these guiding principals is that during the winter months roughly 200 individuals work on the road helping ensure that the road brings economic benefits to individ-uals families and communities
For many seasonal employment gained through constructing and maintaining the winter road is the only consistently avail-able work in the community Furthermore dividends from the company go back to the hands of the communities to be used as they see fit
Finally Kimesskanemenow Corporation donates to commu-nity-based initiatives that will benefit the communities with each of the four communities allotted an annual amount
Reflecting the corporationrsquos central values the money is used to fund initiatives that benefit youth the environment or main-tain traditional ways of living
One example of the programs that the corporation helps fund is CreeFest a celebration of Cree culture that is held annually in the Mushkegowuk communities
The company also funds the Edward W Chilton scholarship at Northern College in honour of the late Ed Chilton the com-panyrsquos first president The scholarship is awarded to community members to further their education
K Corprsquos list of smaller grants available online include many community and cultural programs that maintain the vitality of all these communities
Kimesskanemenow Corporation maintains an important piece of infrastructure that benefits the communities and allows for the ongoing operation of the Victor Diamond Mine As a cooperative venture the corporation has proven itself to be invaluable to both the communities and the mining company CMJ
Thanks to the efforts of K Corp the Western James Bay Winter Road provides access to the remote areas of Northern Ontario
Creeindd 21 2016-01-12 1052 AM
22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
WHERE WE STANDSERIOUS QUESTIONS DESERVE SOME SERIOUS ANSWERS Staff Report
I trsquos been just over a year since the Native Womenrsquos Association of Canada (NWAC) received funding from Aboriginal Affairs and Northern Development Canada (AANDC) to identify and ask questions about the barriers
indigenous women face and secondly to get direct and honest answers as to what are the realistic opportunities for them in the mining industry
Basically as the headline says they want to know where they stand insofar as their positions within the mining industry are concerned
The questions NWAC put on the table at a recent forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development dealt with two perspectives the first looked into resource development corporations and sought to understand what these corporations knew about aboriginal women and the second was from aboriginal women and how they viewed the mining industry with regards to economic devel-opment and employment opportunities
The forum was attended by an impressive gathering of female indigenous leaders and representatives from the resource devel-opment sector A full list of the participants is featured in the adjacent box
The intent of the engagementdiscussion session was to initi-ate a constructive dialogue amongst the participants with the overall goal of
s increasing the labour market participation of indigenous women in the resource development sector
s ensuring indigenous womenrsquos voices are heard in the devel-opment of these projects
s sharing of information on the industry and
s discussing the various opportunities and barriers facing indigenous women who wish to work in the industry
A DISTINGUISHED PANEL OF WOMEN ATTEND OTTAWA FORUM
Siobhan Dooley Hatch EngineeringGrant Goddard New Gold Inc (Rainy River Project)Karina Kesserwan Kesserwan (Law ndash Strategy ndash Solutions)Stacey Jack New Gold Inc (Rainy River Project)Christopher Lefebvre Aramark CanadaMireille Pilotte New Millennium IronRachel Pineault Detour Gold CorporationKate Rafter Employment and Social Development CanadaLouise Reid-Schloen Hydro OttawaJamie Saulnier Running Deer ResourcesNancy Veal Resolute Forest ProductsMarilyn Capreol Shawanaga First NationPamela Eyles BC Native Womenrsquos AssociationSusan Forth Shawanaga First NationElize Hartley Ontario Native Womenrsquos AssociationMarian Horne Yukon Aboriginal Womenrsquos CouncilNoreen McAteer Alberta Aboriginal Womenrsquos SocietyVerna Polson Quebec Native Women IncTori-Lynn Wanotch Saskatchewan Aboriginal Womenrsquos Circle CorpBeverly Blanchard Native Womenrsquos Association of CanadaSydney Ducharme Native Womenrsquos Association of CanadaClaudette Dumont-Smith Native Womenrsquos Association of CanadaDan Peters Native Womenrsquos Association of CanadaMerv McLeod McLeod-Wood Associates IncNancy Wood McLeod-Wood Associates Inc
Beverly Blanchard (standing) of the Native Womenrsquos Association of Canada addresses delegates attending a forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development
Women in Miningindd 22 2016-01-12 1053 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 23
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
andor economic opportunitiesFor example when impact benefit agreements (IBAs) are
completed they tend to be locally focused and may not consider indigenous women that do not reside in the community or indigenous individuals who are not members of the particular community
From the indigenous womenrsquos perspective at the forum it was noted that indigenous womenrsquos opinions on the resource devel-opment sector were varied and divergent Like most things in life there were some women who are in favour of the mining industry and there are some who are against it
Many who are against the sector perceived it to be counter to the traditional role of indigenous women as water-keepers and caretakers of Mother Earth but on the other hand research found that there was also a significant percentage of indigenous women who were ambivalent towards the industry
Due to length and detail of the forum (from which this article is based) the information has been drastically reduced to fit the space
For complete details and a copy of the full Bridging the Gap Aboriginal Women and Resource Development Report please contact Beverly Blanchard Strategic Policy Partnership and Planning NWAC Ottawa bblanchardnwacca CMJ
INDIGENOUS WOMEN and MINING
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Women in Miningindd 23 2016-01-12 1053 AM
24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
A s probably many of you know times are tough right now Commodity prices are slumping across the board affected by an overall slowing global economy that is being felt throughout Canada
But even during a stubborn downturn in global demand for many minerals and metals itrsquos no time to get down on mining because mining never goes away
Minerals and metals are the very foundation of virtually all of the goods we depend on in our daily lives The world will con-tinue to need mining and Canada can and should continue to be an important place where mining happens
A Look at Market ConditionsSo first how bad is the market
Global economic growth has been volatile in recent years Every time the Bank of Canada the IMF World Bank or others make growth projections it seems they amend them a few months later and always downwards With few exceptions the global economy is not doing well at all
The key economy for the mining sector is China which today consumes almost 50 per cent of the worldrsquos minerals and metals And Chinarsquos growth rate has been slowing along with growth rates in other emerging markets like Brazil Mexico and several Asian and African countries that are also falling
The one major exception is India whose growth is around 75 per cent and with its 13 billion people is seen as the next China in terms of minerals and metals consumption as the coun-try begins to rapidly industrialize
A Bedrock of the Canadian EconomyEven in a slump miningrsquos contribution to Canada is enormous
Despite some job losses at some operations mining and min-eral processing are directly employing more than 375000 Canadians including well over 10000 Indigenous Canadians paying the highest average industrial wage in the country Mining remains proportionally the largest employer of indige-nous Canadians
Mining accounts for roughly 20 per cent of the overall value of Canadian exports valued at nearly $90 billion
Nationally we pay an average of $38 billion annually in corporate taxes and royalties to federal provincial and territorial governments
Mining companies are also paying significant royalties to indig-enous communities across the country indirectly through govern-ment resource revenue sharing and in some cases directly
Wersquore also supporting the second largest mining-supply sector in the world More than 3700 companies provide a wide spec-trum of services to the Canadian mining industry with an increasing number of these being indigenous-owned businesses
A major challenge facing mining in Canadarsquos north today is its lack of infrastructure The north is our industryrsquos future but the territories and the northern parts of our provinces lack criti-cal infrastructuremdashroads electricity ports railwaysmdashto service mines and get products to market
This lack of infrastructure is felt by communities many of them indigenous located in the north
According to the Mining Association of Canadarsquos (MAC)
MINING AND INDIGENOUS PEOPLES CANADArsquoS FUTURE By Pierre Gratton
Delegates attending the 23rd Annual Conference of the Canadian Aboriginal Minerals Association in Vancouver listen to talks during the three-day event
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 24 2016-01-12 1054 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 25
FIRST NATIONS and MINING
research it costs about 2 to 25 times as much to build and operate a gold and base metal mine in northern Canada off grid than in the south
We should be looking at ways to level the playing field in the north where infrastructure is lacking Canada needs a strategic collaboration involving industry and governments federal pro-vincial territorial and Indigenous to get this nation-building infrastructure in place
This can be done by increasing government investment in new infrastructure or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good
Additionally there is the issue of indigenous rights and title and how this affects the project certainty
Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and if necessary accommo-dated for activities on traditional indigenous territories affects project timelines and certainty
Connected to this is the concept of social license which in general terms defines the support earned by proponents to pro-ceed with and operate their project
The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects
That is a very complex issue The Supreme Court of Canada in its recent decision on the
Tsilhqotrsquoin First Nationrsquos claim recognized indigenous title a first in Canadian law
It also provided clear guidance on the criteria needed to demonstrate title and on the rights and obligations that flow from that in the process also identifying where title was found not to exist
It is a significant decision that provides us all with much more clarity going forward
But back to the question of the vetoThe Court clearly recognizes that in some circumstances the
right to title can be limited by the Crown So there is no abso-lute veto under Canadian law even in the case where title has been proven
But for the Crown to place limits on indigenous title it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead ndash a very significant test
At its core the decision continues a balancing act between empowering and limiting the authority of both indigenous peo-ples and governments The Court was very wise
So what does this mean for proponents There is the law and then there is reality No proponent
wants or should want to build a project that is unwelcome or opposed by local communities This is quite frankly an unsus-tainable option and one best avoided And most communities are open to the opportunities mining brings and increasingly so
Letrsquos look at reality in a different way
Today there are more than 250 agreements between mining companies and indigenous communities across the country It is decidedly rare that projects proceed without impact benefit or other such agreements concluded
These agreements which have matured with time and experi-ence provide significant local benefits and assurances including
Commitments on business procurement and often assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide
Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight
Support for skills training and mentoringDirect economic or financial benefitsSome of these agreements are transforming communities in
very significant waysNewgoldrsquos New Afton project in Kamloops is one such exam-
ple The diamond mines in the NWT are others as is Voiseyrsquos Bay We are seeing high levels of indigenous participation as high as 60 per cent in the case of Voiseyrsquos Bay increasing levels of post-secondary education and significantly improved eco-nomic and social outcomes
Nonetheless it is undeniable that the negotiation of these agreements takes time Trust must be built between the parties and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the pro-posed mine prior to it proceeding
Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association Photo by Tracey Sanders Photography
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 25 2016-01-12 1054 AM
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
AME BCindd 27 2016-01-12 110 PM
28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
PROFESSIONAL DIRECTORYA
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W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
- 002
- 003
- 004
- 005
- 006
- 007
- 008-009
- 010-015
- 016-019
- 020-021
- 022-023
- 024-026
- 027
- 028-030
- 031
- 032
- 033
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- 036
-
22 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
WHERE WE STANDSERIOUS QUESTIONS DESERVE SOME SERIOUS ANSWERS Staff Report
I trsquos been just over a year since the Native Womenrsquos Association of Canada (NWAC) received funding from Aboriginal Affairs and Northern Development Canada (AANDC) to identify and ask questions about the barriers
indigenous women face and secondly to get direct and honest answers as to what are the realistic opportunities for them in the mining industry
Basically as the headline says they want to know where they stand insofar as their positions within the mining industry are concerned
The questions NWAC put on the table at a recent forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development dealt with two perspectives the first looked into resource development corporations and sought to understand what these corporations knew about aboriginal women and the second was from aboriginal women and how they viewed the mining industry with regards to economic devel-opment and employment opportunities
The forum was attended by an impressive gathering of female indigenous leaders and representatives from the resource devel-opment sector A full list of the participants is featured in the adjacent box
The intent of the engagementdiscussion session was to initi-ate a constructive dialogue amongst the participants with the overall goal of
s increasing the labour market participation of indigenous women in the resource development sector
s ensuring indigenous womenrsquos voices are heard in the devel-opment of these projects
s sharing of information on the industry and
s discussing the various opportunities and barriers facing indigenous women who wish to work in the industry
A DISTINGUISHED PANEL OF WOMEN ATTEND OTTAWA FORUM
Siobhan Dooley Hatch EngineeringGrant Goddard New Gold Inc (Rainy River Project)Karina Kesserwan Kesserwan (Law ndash Strategy ndash Solutions)Stacey Jack New Gold Inc (Rainy River Project)Christopher Lefebvre Aramark CanadaMireille Pilotte New Millennium IronRachel Pineault Detour Gold CorporationKate Rafter Employment and Social Development CanadaLouise Reid-Schloen Hydro OttawaJamie Saulnier Running Deer ResourcesNancy Veal Resolute Forest ProductsMarilyn Capreol Shawanaga First NationPamela Eyles BC Native Womenrsquos AssociationSusan Forth Shawanaga First NationElize Hartley Ontario Native Womenrsquos AssociationMarian Horne Yukon Aboriginal Womenrsquos CouncilNoreen McAteer Alberta Aboriginal Womenrsquos SocietyVerna Polson Quebec Native Women IncTori-Lynn Wanotch Saskatchewan Aboriginal Womenrsquos Circle CorpBeverly Blanchard Native Womenrsquos Association of CanadaSydney Ducharme Native Womenrsquos Association of CanadaClaudette Dumont-Smith Native Womenrsquos Association of CanadaDan Peters Native Womenrsquos Association of CanadaMerv McLeod McLeod-Wood Associates IncNancy Wood McLeod-Wood Associates Inc
Beverly Blanchard (standing) of the Native Womenrsquos Association of Canada addresses delegates attending a forum in Ottawa entitled Bridging the Gap Aboriginal Women and Resource Development
Women in Miningindd 22 2016-01-12 1053 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 23
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
andor economic opportunitiesFor example when impact benefit agreements (IBAs) are
completed they tend to be locally focused and may not consider indigenous women that do not reside in the community or indigenous individuals who are not members of the particular community
From the indigenous womenrsquos perspective at the forum it was noted that indigenous womenrsquos opinions on the resource devel-opment sector were varied and divergent Like most things in life there were some women who are in favour of the mining industry and there are some who are against it
Many who are against the sector perceived it to be counter to the traditional role of indigenous women as water-keepers and caretakers of Mother Earth but on the other hand research found that there was also a significant percentage of indigenous women who were ambivalent towards the industry
Due to length and detail of the forum (from which this article is based) the information has been drastically reduced to fit the space
For complete details and a copy of the full Bridging the Gap Aboriginal Women and Resource Development Report please contact Beverly Blanchard Strategic Policy Partnership and Planning NWAC Ottawa bblanchardnwacca CMJ
INDIGENOUS WOMEN and MINING
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Women in Miningindd 23 2016-01-12 1053 AM
24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
A s probably many of you know times are tough right now Commodity prices are slumping across the board affected by an overall slowing global economy that is being felt throughout Canada
But even during a stubborn downturn in global demand for many minerals and metals itrsquos no time to get down on mining because mining never goes away
Minerals and metals are the very foundation of virtually all of the goods we depend on in our daily lives The world will con-tinue to need mining and Canada can and should continue to be an important place where mining happens
A Look at Market ConditionsSo first how bad is the market
Global economic growth has been volatile in recent years Every time the Bank of Canada the IMF World Bank or others make growth projections it seems they amend them a few months later and always downwards With few exceptions the global economy is not doing well at all
The key economy for the mining sector is China which today consumes almost 50 per cent of the worldrsquos minerals and metals And Chinarsquos growth rate has been slowing along with growth rates in other emerging markets like Brazil Mexico and several Asian and African countries that are also falling
The one major exception is India whose growth is around 75 per cent and with its 13 billion people is seen as the next China in terms of minerals and metals consumption as the coun-try begins to rapidly industrialize
A Bedrock of the Canadian EconomyEven in a slump miningrsquos contribution to Canada is enormous
Despite some job losses at some operations mining and min-eral processing are directly employing more than 375000 Canadians including well over 10000 Indigenous Canadians paying the highest average industrial wage in the country Mining remains proportionally the largest employer of indige-nous Canadians
Mining accounts for roughly 20 per cent of the overall value of Canadian exports valued at nearly $90 billion
Nationally we pay an average of $38 billion annually in corporate taxes and royalties to federal provincial and territorial governments
Mining companies are also paying significant royalties to indig-enous communities across the country indirectly through govern-ment resource revenue sharing and in some cases directly
Wersquore also supporting the second largest mining-supply sector in the world More than 3700 companies provide a wide spec-trum of services to the Canadian mining industry with an increasing number of these being indigenous-owned businesses
A major challenge facing mining in Canadarsquos north today is its lack of infrastructure The north is our industryrsquos future but the territories and the northern parts of our provinces lack criti-cal infrastructuremdashroads electricity ports railwaysmdashto service mines and get products to market
This lack of infrastructure is felt by communities many of them indigenous located in the north
According to the Mining Association of Canadarsquos (MAC)
MINING AND INDIGENOUS PEOPLES CANADArsquoS FUTURE By Pierre Gratton
Delegates attending the 23rd Annual Conference of the Canadian Aboriginal Minerals Association in Vancouver listen to talks during the three-day event
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to
Trac
ey S
ande
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hoto
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hy
Macindd 24 2016-01-12 1054 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 25
FIRST NATIONS and MINING
research it costs about 2 to 25 times as much to build and operate a gold and base metal mine in northern Canada off grid than in the south
We should be looking at ways to level the playing field in the north where infrastructure is lacking Canada needs a strategic collaboration involving industry and governments federal pro-vincial territorial and Indigenous to get this nation-building infrastructure in place
This can be done by increasing government investment in new infrastructure or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good
Additionally there is the issue of indigenous rights and title and how this affects the project certainty
Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and if necessary accommo-dated for activities on traditional indigenous territories affects project timelines and certainty
Connected to this is the concept of social license which in general terms defines the support earned by proponents to pro-ceed with and operate their project
The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects
That is a very complex issue The Supreme Court of Canada in its recent decision on the
Tsilhqotrsquoin First Nationrsquos claim recognized indigenous title a first in Canadian law
It also provided clear guidance on the criteria needed to demonstrate title and on the rights and obligations that flow from that in the process also identifying where title was found not to exist
It is a significant decision that provides us all with much more clarity going forward
But back to the question of the vetoThe Court clearly recognizes that in some circumstances the
right to title can be limited by the Crown So there is no abso-lute veto under Canadian law even in the case where title has been proven
But for the Crown to place limits on indigenous title it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead ndash a very significant test
At its core the decision continues a balancing act between empowering and limiting the authority of both indigenous peo-ples and governments The Court was very wise
So what does this mean for proponents There is the law and then there is reality No proponent
wants or should want to build a project that is unwelcome or opposed by local communities This is quite frankly an unsus-tainable option and one best avoided And most communities are open to the opportunities mining brings and increasingly so
Letrsquos look at reality in a different way
Today there are more than 250 agreements between mining companies and indigenous communities across the country It is decidedly rare that projects proceed without impact benefit or other such agreements concluded
These agreements which have matured with time and experi-ence provide significant local benefits and assurances including
Commitments on business procurement and often assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide
Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight
Support for skills training and mentoringDirect economic or financial benefitsSome of these agreements are transforming communities in
very significant waysNewgoldrsquos New Afton project in Kamloops is one such exam-
ple The diamond mines in the NWT are others as is Voiseyrsquos Bay We are seeing high levels of indigenous participation as high as 60 per cent in the case of Voiseyrsquos Bay increasing levels of post-secondary education and significantly improved eco-nomic and social outcomes
Nonetheless it is undeniable that the negotiation of these agreements takes time Trust must be built between the parties and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the pro-posed mine prior to it proceeding
Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association Photo by Tracey Sanders Photography
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to
Trac
ey S
ande
rs P
hoto
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Macindd 25 2016-01-12 1054 AM
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
AME BCindd 27 2016-01-12 110 PM
28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Nfld Reportindd 30 2016-01-12 1055 AM
Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
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W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
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- 027
- 028-030
- 031
- 032
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JANUARY 2016 CANADIAN MINING JOURNAL | 23
It was noted during the forum that one of the various initia-tives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS) a project funded by Employment and Social Development Canada (ESDC) that focuses primarily on indigenous women and provides funds for education and training job support and targeted wage subsidies (TWS) to assist employers in hiring indigenous women
An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations Metis and Inuit Coupled with the terminology there is also a significant lack of understanding about where indigenous women are located in Canada
Although 52 per cent of the indigenous population in Canada is women much of the attention focuses upon indigenous women who live on First Nations reserves There is however a significant portion of the population who reside in urban centres
In fact 70 per cent of the indigenous population in Canada now live in urban centres
With the interaction between the indigenous communities and resource development industries primarily focused on reserves there may be a significant portion of the indigenous female population that is not being considered for employment
andor economic opportunitiesFor example when impact benefit agreements (IBAs) are
completed they tend to be locally focused and may not consider indigenous women that do not reside in the community or indigenous individuals who are not members of the particular community
From the indigenous womenrsquos perspective at the forum it was noted that indigenous womenrsquos opinions on the resource devel-opment sector were varied and divergent Like most things in life there were some women who are in favour of the mining industry and there are some who are against it
Many who are against the sector perceived it to be counter to the traditional role of indigenous women as water-keepers and caretakers of Mother Earth but on the other hand research found that there was also a significant percentage of indigenous women who were ambivalent towards the industry
Due to length and detail of the forum (from which this article is based) the information has been drastically reduced to fit the space
For complete details and a copy of the full Bridging the Gap Aboriginal Women and Resource Development Report please contact Beverly Blanchard Strategic Policy Partnership and Planning NWAC Ottawa bblanchardnwacca CMJ
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24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
A s probably many of you know times are tough right now Commodity prices are slumping across the board affected by an overall slowing global economy that is being felt throughout Canada
But even during a stubborn downturn in global demand for many minerals and metals itrsquos no time to get down on mining because mining never goes away
Minerals and metals are the very foundation of virtually all of the goods we depend on in our daily lives The world will con-tinue to need mining and Canada can and should continue to be an important place where mining happens
A Look at Market ConditionsSo first how bad is the market
Global economic growth has been volatile in recent years Every time the Bank of Canada the IMF World Bank or others make growth projections it seems they amend them a few months later and always downwards With few exceptions the global economy is not doing well at all
The key economy for the mining sector is China which today consumes almost 50 per cent of the worldrsquos minerals and metals And Chinarsquos growth rate has been slowing along with growth rates in other emerging markets like Brazil Mexico and several Asian and African countries that are also falling
The one major exception is India whose growth is around 75 per cent and with its 13 billion people is seen as the next China in terms of minerals and metals consumption as the coun-try begins to rapidly industrialize
A Bedrock of the Canadian EconomyEven in a slump miningrsquos contribution to Canada is enormous
Despite some job losses at some operations mining and min-eral processing are directly employing more than 375000 Canadians including well over 10000 Indigenous Canadians paying the highest average industrial wage in the country Mining remains proportionally the largest employer of indige-nous Canadians
Mining accounts for roughly 20 per cent of the overall value of Canadian exports valued at nearly $90 billion
Nationally we pay an average of $38 billion annually in corporate taxes and royalties to federal provincial and territorial governments
Mining companies are also paying significant royalties to indig-enous communities across the country indirectly through govern-ment resource revenue sharing and in some cases directly
Wersquore also supporting the second largest mining-supply sector in the world More than 3700 companies provide a wide spec-trum of services to the Canadian mining industry with an increasing number of these being indigenous-owned businesses
A major challenge facing mining in Canadarsquos north today is its lack of infrastructure The north is our industryrsquos future but the territories and the northern parts of our provinces lack criti-cal infrastructuremdashroads electricity ports railwaysmdashto service mines and get products to market
This lack of infrastructure is felt by communities many of them indigenous located in the north
According to the Mining Association of Canadarsquos (MAC)
MINING AND INDIGENOUS PEOPLES CANADArsquoS FUTURE By Pierre Gratton
Delegates attending the 23rd Annual Conference of the Canadian Aboriginal Minerals Association in Vancouver listen to talks during the three-day event
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 24 2016-01-12 1054 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 25
FIRST NATIONS and MINING
research it costs about 2 to 25 times as much to build and operate a gold and base metal mine in northern Canada off grid than in the south
We should be looking at ways to level the playing field in the north where infrastructure is lacking Canada needs a strategic collaboration involving industry and governments federal pro-vincial territorial and Indigenous to get this nation-building infrastructure in place
This can be done by increasing government investment in new infrastructure or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good
Additionally there is the issue of indigenous rights and title and how this affects the project certainty
Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and if necessary accommo-dated for activities on traditional indigenous territories affects project timelines and certainty
Connected to this is the concept of social license which in general terms defines the support earned by proponents to pro-ceed with and operate their project
The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects
That is a very complex issue The Supreme Court of Canada in its recent decision on the
Tsilhqotrsquoin First Nationrsquos claim recognized indigenous title a first in Canadian law
It also provided clear guidance on the criteria needed to demonstrate title and on the rights and obligations that flow from that in the process also identifying where title was found not to exist
It is a significant decision that provides us all with much more clarity going forward
But back to the question of the vetoThe Court clearly recognizes that in some circumstances the
right to title can be limited by the Crown So there is no abso-lute veto under Canadian law even in the case where title has been proven
But for the Crown to place limits on indigenous title it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead ndash a very significant test
At its core the decision continues a balancing act between empowering and limiting the authority of both indigenous peo-ples and governments The Court was very wise
So what does this mean for proponents There is the law and then there is reality No proponent
wants or should want to build a project that is unwelcome or opposed by local communities This is quite frankly an unsus-tainable option and one best avoided And most communities are open to the opportunities mining brings and increasingly so
Letrsquos look at reality in a different way
Today there are more than 250 agreements between mining companies and indigenous communities across the country It is decidedly rare that projects proceed without impact benefit or other such agreements concluded
These agreements which have matured with time and experi-ence provide significant local benefits and assurances including
Commitments on business procurement and often assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide
Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight
Support for skills training and mentoringDirect economic or financial benefitsSome of these agreements are transforming communities in
very significant waysNewgoldrsquos New Afton project in Kamloops is one such exam-
ple The diamond mines in the NWT are others as is Voiseyrsquos Bay We are seeing high levels of indigenous participation as high as 60 per cent in the case of Voiseyrsquos Bay increasing levels of post-secondary education and significantly improved eco-nomic and social outcomes
Nonetheless it is undeniable that the negotiation of these agreements takes time Trust must be built between the parties and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the pro-posed mine prior to it proceeding
Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association Photo by Tracey Sanders Photography
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 25 2016-01-12 1054 AM
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
AME BCindd 27 2016-01-12 110 PM
28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
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W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
- 002
- 003
- 004
- 005
- 006
- 007
- 008-009
- 010-015
- 016-019
- 020-021
- 022-023
- 024-026
- 027
- 028-030
- 031
- 032
- 033
- 034
- 035
- 036
-
24 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
A s probably many of you know times are tough right now Commodity prices are slumping across the board affected by an overall slowing global economy that is being felt throughout Canada
But even during a stubborn downturn in global demand for many minerals and metals itrsquos no time to get down on mining because mining never goes away
Minerals and metals are the very foundation of virtually all of the goods we depend on in our daily lives The world will con-tinue to need mining and Canada can and should continue to be an important place where mining happens
A Look at Market ConditionsSo first how bad is the market
Global economic growth has been volatile in recent years Every time the Bank of Canada the IMF World Bank or others make growth projections it seems they amend them a few months later and always downwards With few exceptions the global economy is not doing well at all
The key economy for the mining sector is China which today consumes almost 50 per cent of the worldrsquos minerals and metals And Chinarsquos growth rate has been slowing along with growth rates in other emerging markets like Brazil Mexico and several Asian and African countries that are also falling
The one major exception is India whose growth is around 75 per cent and with its 13 billion people is seen as the next China in terms of minerals and metals consumption as the coun-try begins to rapidly industrialize
A Bedrock of the Canadian EconomyEven in a slump miningrsquos contribution to Canada is enormous
Despite some job losses at some operations mining and min-eral processing are directly employing more than 375000 Canadians including well over 10000 Indigenous Canadians paying the highest average industrial wage in the country Mining remains proportionally the largest employer of indige-nous Canadians
Mining accounts for roughly 20 per cent of the overall value of Canadian exports valued at nearly $90 billion
Nationally we pay an average of $38 billion annually in corporate taxes and royalties to federal provincial and territorial governments
Mining companies are also paying significant royalties to indig-enous communities across the country indirectly through govern-ment resource revenue sharing and in some cases directly
Wersquore also supporting the second largest mining-supply sector in the world More than 3700 companies provide a wide spec-trum of services to the Canadian mining industry with an increasing number of these being indigenous-owned businesses
A major challenge facing mining in Canadarsquos north today is its lack of infrastructure The north is our industryrsquos future but the territories and the northern parts of our provinces lack criti-cal infrastructuremdashroads electricity ports railwaysmdashto service mines and get products to market
This lack of infrastructure is felt by communities many of them indigenous located in the north
According to the Mining Association of Canadarsquos (MAC)
MINING AND INDIGENOUS PEOPLES CANADArsquoS FUTURE By Pierre Gratton
Delegates attending the 23rd Annual Conference of the Canadian Aboriginal Minerals Association in Vancouver listen to talks during the three-day event
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 24 2016-01-12 1054 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 25
FIRST NATIONS and MINING
research it costs about 2 to 25 times as much to build and operate a gold and base metal mine in northern Canada off grid than in the south
We should be looking at ways to level the playing field in the north where infrastructure is lacking Canada needs a strategic collaboration involving industry and governments federal pro-vincial territorial and Indigenous to get this nation-building infrastructure in place
This can be done by increasing government investment in new infrastructure or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good
Additionally there is the issue of indigenous rights and title and how this affects the project certainty
Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and if necessary accommo-dated for activities on traditional indigenous territories affects project timelines and certainty
Connected to this is the concept of social license which in general terms defines the support earned by proponents to pro-ceed with and operate their project
The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects
That is a very complex issue The Supreme Court of Canada in its recent decision on the
Tsilhqotrsquoin First Nationrsquos claim recognized indigenous title a first in Canadian law
It also provided clear guidance on the criteria needed to demonstrate title and on the rights and obligations that flow from that in the process also identifying where title was found not to exist
It is a significant decision that provides us all with much more clarity going forward
But back to the question of the vetoThe Court clearly recognizes that in some circumstances the
right to title can be limited by the Crown So there is no abso-lute veto under Canadian law even in the case where title has been proven
But for the Crown to place limits on indigenous title it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead ndash a very significant test
At its core the decision continues a balancing act between empowering and limiting the authority of both indigenous peo-ples and governments The Court was very wise
So what does this mean for proponents There is the law and then there is reality No proponent
wants or should want to build a project that is unwelcome or opposed by local communities This is quite frankly an unsus-tainable option and one best avoided And most communities are open to the opportunities mining brings and increasingly so
Letrsquos look at reality in a different way
Today there are more than 250 agreements between mining companies and indigenous communities across the country It is decidedly rare that projects proceed without impact benefit or other such agreements concluded
These agreements which have matured with time and experi-ence provide significant local benefits and assurances including
Commitments on business procurement and often assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide
Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight
Support for skills training and mentoringDirect economic or financial benefitsSome of these agreements are transforming communities in
very significant waysNewgoldrsquos New Afton project in Kamloops is one such exam-
ple The diamond mines in the NWT are others as is Voiseyrsquos Bay We are seeing high levels of indigenous participation as high as 60 per cent in the case of Voiseyrsquos Bay increasing levels of post-secondary education and significantly improved eco-nomic and social outcomes
Nonetheless it is undeniable that the negotiation of these agreements takes time Trust must be built between the parties and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the pro-posed mine prior to it proceeding
Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association Photo by Tracey Sanders Photography
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 25 2016-01-12 1054 AM
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
AME BCindd 27 2016-01-12 110 PM
28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Nfld Reportindd 30 2016-01-12 1055 AM
Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
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Professional Directoryindd 33 2016-01-12 1056 AM
W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
- 002
- 003
- 004
- 005
- 006
- 007
- 008-009
- 010-015
- 016-019
- 020-021
- 022-023
- 024-026
- 027
- 028-030
- 031
- 032
- 033
- 034
- 035
- 036
-
JANUARY 2016 CANADIAN MINING JOURNAL | 25
FIRST NATIONS and MINING
research it costs about 2 to 25 times as much to build and operate a gold and base metal mine in northern Canada off grid than in the south
We should be looking at ways to level the playing field in the north where infrastructure is lacking Canada needs a strategic collaboration involving industry and governments federal pro-vincial territorial and Indigenous to get this nation-building infrastructure in place
This can be done by increasing government investment in new infrastructure or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good
Additionally there is the issue of indigenous rights and title and how this affects the project certainty
Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and if necessary accommo-dated for activities on traditional indigenous territories affects project timelines and certainty
Connected to this is the concept of social license which in general terms defines the support earned by proponents to pro-ceed with and operate their project
The big question that gets raised these days is whether indig-enous communities have a right to veto developments projects
That is a very complex issue The Supreme Court of Canada in its recent decision on the
Tsilhqotrsquoin First Nationrsquos claim recognized indigenous title a first in Canadian law
It also provided clear guidance on the criteria needed to demonstrate title and on the rights and obligations that flow from that in the process also identifying where title was found not to exist
It is a significant decision that provides us all with much more clarity going forward
But back to the question of the vetoThe Court clearly recognizes that in some circumstances the
right to title can be limited by the Crown So there is no abso-lute veto under Canadian law even in the case where title has been proven
But for the Crown to place limits on indigenous title it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead ndash a very significant test
At its core the decision continues a balancing act between empowering and limiting the authority of both indigenous peo-ples and governments The Court was very wise
So what does this mean for proponents There is the law and then there is reality No proponent
wants or should want to build a project that is unwelcome or opposed by local communities This is quite frankly an unsus-tainable option and one best avoided And most communities are open to the opportunities mining brings and increasingly so
Letrsquos look at reality in a different way
Today there are more than 250 agreements between mining companies and indigenous communities across the country It is decidedly rare that projects proceed without impact benefit or other such agreements concluded
These agreements which have matured with time and experi-ence provide significant local benefits and assurances including
Commitments on business procurement and often assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide
Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight
Support for skills training and mentoringDirect economic or financial benefitsSome of these agreements are transforming communities in
very significant waysNewgoldrsquos New Afton project in Kamloops is one such exam-
ple The diamond mines in the NWT are others as is Voiseyrsquos Bay We are seeing high levels of indigenous participation as high as 60 per cent in the case of Voiseyrsquos Bay increasing levels of post-secondary education and significantly improved eco-nomic and social outcomes
Nonetheless it is undeniable that the negotiation of these agreements takes time Trust must be built between the parties and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the pro-posed mine prior to it proceeding
Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association Photo by Tracey Sanders Photography
Pho
to
Trac
ey S
ande
rs P
hoto
grap
hy
Macindd 25 2016-01-12 1054 AM
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
AME BCindd 27 2016-01-12 110 PM
28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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Nfld Reportindd 30 2016-01-12 1055 AM
Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
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Professional Directoryindd 33 2016-01-12 1056 AM
W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
- 002
- 003
- 004
- 005
- 006
- 007
- 008-009
- 010-015
- 016-019
- 020-021
- 022-023
- 024-026
- 027
- 028-030
- 031
- 032
- 033
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-
Building and maintaining trust is ongoing engagement has to be systematic and continuous embedded in corporate practic-es and culture We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them and offer training that supports such involvement
Aboriginal communities should also invest in acquiring knowledge of the mining business Many now have those that donrsquot can reach out and learn from others
Second communities should set out their expectations clear-ly so that proponents may understand them Such expectations can be with respect to how consultation is to be conducted the social and environmental values that must be respected and expectations for participation in benefits
Investing in new business endeavours to service and supply the mine and other activities in the region is also wise
In October a new federal government was elected promising reconciliation with indigenous peoples
I say ldquoabout timerdquoItrsquos about time the federal government settled the many unresolved
land claims across this country Land claims when they have been settled create healthier conditions that make doing business easier make partnerships easier to form and make them more enduring
The new government has promised to accelerate the modern treaty process to which I say again ldquoabout timerdquo
Itrsquos about time all governments recognized that royalty reve-nues should be shared with indigenous communities
Sharing resource revenues will help unleash economic devel-
opment and will send a profound recognition of who has inhab-ited the land for millennia and who will be there when the mines and the mining companies are gone
Itrsquos about time governments took a consistent coordinated approach to its consultation and accommodation obligations Government employees should also receive training in consultation
Itrsquos about time governments invested as they should in educa-tion and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children
The new government has promised significant increases in education funding and said they will increase funding for indig-enous skills training by $50 million per year This is good news
While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades it is neither right nor prudent for governments to sit back and only engage when environmental assessments or permitting obliga-tions compel them to
Canadarsquos mining sector while going through difficult times at present remains strong and has a bright future but it is not a future to be taken for granted CMJ
PIERRE GRATTON is President and CEO of the Mining Association of
Canada This article is based on portions of a speech Mr Gratton gave at
the recent Canadian Aboriginal Minerals Associationrsquos 23rd Annual
Conference in Vancouver For a full copy of Mr Grattonrsquos speech pleased
contact MAC
26 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Aerial view of Capstonersquos massive Minto Mine in Yukon Because the mine is situated on land owned by the Selkirk First Nation 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens
Macindd 26 2016-01-12 1054 AM
T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
AME BCindd 27 2016-01-12 110 PM
28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
18774639728galaxybroadbandca
Supported by Local Partners across North America
For over 20 years Galaxy has been providing reliable affordable and innovative enterprise communications
to mining companies for exploration remote offices and camp locations beyond the reach of fibre or cell coverage
Rugged Fixed andAuto-Deploy Systems
Best IntegratedVoIP and Fax
Managed Services andNetwork Solutions
Innovative Reliable andAordable Network
VISIT US AT
Booth 405
High PerformanceCommercial GradeEnterprise Networks
You could win a FREE Galaxy tablet
Nfld Reportindd 30 2016-01-12 1055 AM
Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
PROFESSIONAL DIRECTORYA
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Professional Directoryindd 33 2016-01-12 1056 AM
W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
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- 002
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- 007
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T he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment exploration and mineral development potential of BC
AME BC believes that it is possible to have both a strong mineral exploration and development industry and a sustain-able healthy environment
Globally the mineral exploration and development industry has been experiencing a significant downturn and BC and the rest of Canada are not immune to this reality Despite the chal-lenges this presents the industry (much of it based in BC) con-tinues to make enormous contributions to the social and econom-ic well-being of British Columbians and fellow Canadians
Generally BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years and has held its own on a global scale However provincial and federal government policies and First Nation perspectives regarding natural resource development and access to mineral lands need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development
Sustained investment in exploration is the only path to suc-cessfully discovering and developing new mineable deposits that are so vital to our quality of life in BC and Canada as a whole
The mineral exploration and development industry is central to BCrsquos export-driven economy spurring positive regional socio-economic activity providing thousands of family sustain-ing jobs producing the commodities that we need use and consume every day and contributing hundreds of millions of dollars every year to support education and health care
Such contributions should not be taken for granted Despite the current downturn policy-makers must take concrete steps now to position the industry for future success
The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference and the Association was able to claim credit for Premier Christy Clarkrsquos announcement to exempt exploration activities from permit fees and the announce-ment of $63 million in increased funding for the provincersquos Mines and Minerals Division to support permitting and inspections
The provincial mining flow-through share program was also extended through the end of 2015
On a national scale there was a commitment by the federal government in March to extend the eligibility of Canadian explo-ration expenses to include environmental studies and community consultation expenses however a timeline for the implementation of this measure is still uncertain as of December 2015
As per AME BCrsquos Strategic Plan aboriginal relations and
engagement continues to be a top priority area for our member-ship AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand
AME BC continues its work to strengthen relationships with aboriginal communities leaders and organizations Specifically AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC)
In fact AME BC signed a memorandum of understanding with the BC FNEMC in July 2015 AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business
In September AME BC signed a memorandum of under-standing with the Association of Professional Engineers and Geoscientists of BC (APEGBC) formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineer-ing in the province
AME BC also continued to sponsor the work of regional explo-ration groups throughout the province in building awareness of mineral exploration among the public For the first time it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience
In November following engagement with officials from both the State of Alaska and Government of BC AME BC supported a memorandum of understanding signed between the two juris-dictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission
In light of these successes however AME BC members faced continual challenges both real and perceived in accessing the land base to conduct mineral exploration and development
Evolving land access and use decisions and restrictions along the central and north coast and in the Northwest south Chilcotin areas southeast of Prince George and the south Okanagan were a focus of committee and staff efforts through the year
Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities the provincial government lacks a coordinated approach to planning communicating and implementing deci-sions affecting the mineral land base
In 2016 AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members CMJ
By David McLelland Chair of the Board of Directors AME BC and Gavin C Dirom President amp Chief Executive Officer AME BC
A Message from the AMEBC
COASTAL ROUNDUP
JANUARY 2016 CANADIAN MINING JOURNAL | 27
David McLelland Gavin C Dirom
AME BCindd 27 2016-01-12 110 PM
28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
18774639728galaxybroadbandca
Supported by Local Partners across North America
For over 20 years Galaxy has been providing reliable affordable and innovative enterprise communications
to mining companies for exploration remote offices and camp locations beyond the reach of fibre or cell coverage
Rugged Fixed andAuto-Deploy Systems
Best IntegratedVoIP and Fax
Managed Services andNetwork Solutions
Innovative Reliable andAordable Network
VISIT US AT
Booth 405
High PerformanceCommercial GradeEnterprise Networks
You could win a FREE Galaxy tablet
Nfld Reportindd 30 2016-01-12 1055 AM
Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
PROFESSIONAL DIRECTORYA
DV
ERT
ISER
S IN
DEX
Your complete raise bore solu on
Over 35 Years of Experience
wwwstublanercom
Hatch 2 wwwhatchca
SRK 14 wwwSRKcom
Redpath Mining 15 wwwredpathminingcom
Nuna Logistics 23 wwwnunalogisticscom
Galaxy Broadband 30 wwwgalaxybroadbandca
DMC Mining33 wwwdmcminingcom
Stu Blattner 33 wwwstublattnercom
Hard-Line35 wwwhard-linecom
Duke Electric36 wwwdukeelectriccom
ROBERT SEAGRAVES 416-510-6891 Fax 416-447-7658 rseagravescanadianminingjournalcom
JOELLE GLASROTH 416-510-5104 Fax 416-447-7658
jglasrothcanadianminingjournalcom
List in the Canadian Mining
Journalrsquos Professional Directory
Cost as low as $25000 per issue
Contact
DONrsquoT MISS THIS OPPORTUNITY TO GROW YOUR BUSINESS IN 2015
PROVIDING THE SAFEST SOLUTIONS
bull Contract Miningbull Shaft Sinkingbull Raise Boring and Raise Excavationbull Mine Construction and Infrastructurebull Mine Development and Rehabilitationbull Headframes and Hoisting Plantsbull Ground Freezing and Grouting Programsbull Engineering Design and Feasibility Studiesbull Property Development through Equity
Investment Partnerships or Joint Ventures
For 36 years we have been the foremost provider of mining services and solutions to the North American mining industry
Canada 1-800-892-8293 or USA 1-800-748-2375
wwwdmcminingcom
Professional Directoryindd 33 2016-01-12 1056 AM
W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
- 002
- 003
- 004
- 005
- 006
- 007
- 008-009
- 010-015
- 016-019
- 020-021
- 022-023
- 024-026
- 027
- 028-030
- 031
- 032
- 033
- 034
- 035
- 036
-
28 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
Newfoundland and Labrador is one of the foremost producers of iron and nickel in Canada ranking second in production of both metals among Canadian jurisdictions in 2014 It also produces or
has significant resources of a wide range of other commodities including copper zinc gold uranium rare earths granophile metals industrial minerals and others
With such world-class resources diverse geology and consid-erable exploration upside it clearly represents an excellent min-eral investment destination in a stable development-friendly jurisdiction
Herersquos a look at some of the projects that support that statement
Mining and Processing DevelopmentsDuring the first half of 2015 Vale Newfoundland and Labrador Limited (VNL) produced 29000 tonnes of nickel 13400 tonnes of copper and 495 tonnes of cobalt from its Voiseyrsquos Bay Mine in Labrador In August the provincial government announced that underground mining at Voiseyrsquos Bay had been sanctioned by VNLrsquos parent company Vale
Construction is projected to start in 2016 with ore produc-tion beginning in 2020
In July of 2014 VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel The facility is currently processing a combination of imported low-impurity nickel matte and concentrate from Voiseyrsquos Bay while construction work continues elsewhere onsite
The plant will process only Voiseyrsquos Bay high-grade concentrateThe Iron Ore Company of Canada (IOC) has been produc-
ing iron ore at the Carol Lake project in western Labrador since the 1960s Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes The new Wabush 3 iron-ore deposit has cleared environmental assessment however development has been delayed due to the weak outlook for iron ore markets
Rambler Metals amp Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation The plan would extend the projected mine life to 21 years while optimizing the mining and milling process-es Year-end (July 31) results for fiscal 2015 show production of 4733 tonnes of copper metal 5335 ounces of gold and 39706 ounces of silver from 17309 dry tonnes of concentrate
RampD PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST
By Phil Saunders
TIMING isEVERYTHING
Valersquos nickel processing plant
Nfld Reportindd 28 2016-01-12 1055 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
18774639728galaxybroadbandca
Supported by Local Partners across North America
For over 20 years Galaxy has been providing reliable affordable and innovative enterprise communications
to mining companies for exploration remote offices and camp locations beyond the reach of fibre or cell coverage
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Managed Services andNetwork Solutions
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VISIT US AT
Booth 405
High PerformanceCommercial GradeEnterprise Networks
You could win a FREE Galaxy tablet
Nfld Reportindd 30 2016-01-12 1055 AM
Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
PROFESSIONAL DIRECTORYA
DV
ERT
ISER
S IN
DEX
Your complete raise bore solu on
Over 35 Years of Experience
wwwstublanercom
Hatch 2 wwwhatchca
SRK 14 wwwSRKcom
Redpath Mining 15 wwwredpathminingcom
Nuna Logistics 23 wwwnunalogisticscom
Galaxy Broadband 30 wwwgalaxybroadbandca
DMC Mining33 wwwdmcminingcom
Stu Blattner 33 wwwstublattnercom
Hard-Line35 wwwhard-linecom
Duke Electric36 wwwdukeelectriccom
ROBERT SEAGRAVES 416-510-6891 Fax 416-447-7658 rseagravescanadianminingjournalcom
JOELLE GLASROTH 416-510-5104 Fax 416-447-7658
jglasrothcanadianminingjournalcom
List in the Canadian Mining
Journalrsquos Professional Directory
Cost as low as $25000 per issue
Contact
DONrsquoT MISS THIS OPPORTUNITY TO GROW YOUR BUSINESS IN 2015
PROVIDING THE SAFEST SOLUTIONS
bull Contract Miningbull Shaft Sinkingbull Raise Boring and Raise Excavationbull Mine Construction and Infrastructurebull Mine Development and Rehabilitationbull Headframes and Hoisting Plantsbull Ground Freezing and Grouting Programsbull Engineering Design and Feasibility Studiesbull Property Development through Equity
Investment Partnerships or Joint Ventures
For 36 years we have been the foremost provider of mining services and solutions to the North American mining industry
Canada 1-800-892-8293 or USA 1-800-748-2375
wwwdmcminingcom
Professional Directoryindd 33 2016-01-12 1056 AM
W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
- 002
- 003
- 004
- 005
- 006
- 007
- 008-009
- 010-015
- 016-019
- 020-021
- 022-023
- 024-026
- 027
- 028-030
- 031
- 032
- 033
- 034
- 035
- 036
-
JANUARY 2016 CANADIAN MINING JOURNAL | 29
COASTAL ROUNDUP
Rambler also announced a definitive agreement with Thundermin Resources Inc whereby Thundermin will amal-gamate with a wholly-owned subsidiary of Rambler This enables Rambler to add the Little Deer and Whalesback copper resourc-es to its portfolio
Anaconda Mining Inc announced new resource calculations for its Pine Cove gold mine and Stogrsquoer Tight gold deposit near Baie Verte The latest figures indicate total gold resources in all categories of about 129000 ounces at Pine Cove and about 50000 ounces at Stogrsquoer Tight
The company sold 15821 ounces of gold in fiscal 2015 (to May 31)
Tata Steel Minerals Canada Limited (TSMC) a joint venture between Tata Steel of India and New Millennium Iron Corp operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador TSMC shipped its first load of iron in September 2013 shipments in 2015 (to September 15) were 14 million tonnes
Annual capacity from 2016 onward is expected to be 6 mil-lion tonnes
Teck Resources Limitedrsquos Duck Pond Operations officially closed on June 30th The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life as originally planned Rehabilitation of the mine site has started and will be completed by 2018 fol-lowed by a period of monitoring
Continuing economic uncertainty and depressed metal mar-kets have affected other mining operations in the province Both the Beaver Brook Antimony Mine and Labrador Iron Mines operations have been placed on care and maintenance and Cliffs Natural Resourcesrsquo Scully iron mine has officially closed
Exploration HighlightsMarathon Gold Corp is exploring for gold on its extensive hold-ings in central Newfoundland The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits and an updated open-pit and underground resource estimate for the Victory Deposit With these new esti-
mates the total measured and indicated gold resource for the Valentine gold camp is about 1060100 ounces at a grade of 220 gt with an additional inferred resource of 200000 ounces at a grade of 283 gt
Marathon continued its prospecting trenching and drilling activities in 2015 focused on the Marathon Sprite and Victory areas and succeeded in expanding known zones of mineraliza-tion in all areas
Benton Resources Inc received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland a joint venture with Nordmin Engineering The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin Along the trend to the northeast Benton conducted an initial drill pro-gram on its Staghorn Property recently optioned from Metals Creek Resources Corp The program was designed to test several gold showings geochemical and geophysical anomalies
In Newfoundlandrsquos central volcanic belt Canadian Zinc Corp reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit a part of the Tally Pond Project In the historic very high-grade Buchans Mining Camp Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the ldquoOre Clast Zonerdquo which occurs at depth beneath the previous workings Further work is planned on both projects
On the Baie Verte Peninsula in northeast Newfoundland Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years at the current production rate Anaconda plans to conduct addi-tional drilling at Pine Cove and trenching at Stogrsquoer Tight as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill
Puddle Pond Resources Inc recently completed another round of drilling on its Heritage Project in southern Newfoundland The objective was to further explore a large (45 by 15 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver
TIMING isEVERYTHING
Anacondarsquos Pine Cove Mine
Voisey Bay open pit mine
Nfld Reportindd 29 2016-01-12 1055 AM
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
18774639728galaxybroadbandca
Supported by Local Partners across North America
For over 20 years Galaxy has been providing reliable affordable and innovative enterprise communications
to mining companies for exploration remote offices and camp locations beyond the reach of fibre or cell coverage
Rugged Fixed andAuto-Deploy Systems
Best IntegratedVoIP and Fax
Managed Services andNetwork Solutions
Innovative Reliable andAordable Network
VISIT US AT
Booth 405
High PerformanceCommercial GradeEnterprise Networks
You could win a FREE Galaxy tablet
Nfld Reportindd 30 2016-01-12 1055 AM
Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
PROFESSIONAL DIRECTORYA
DV
ERT
ISER
S IN
DEX
Your complete raise bore solu on
Over 35 Years of Experience
wwwstublanercom
Hatch 2 wwwhatchca
SRK 14 wwwSRKcom
Redpath Mining 15 wwwredpathminingcom
Nuna Logistics 23 wwwnunalogisticscom
Galaxy Broadband 30 wwwgalaxybroadbandca
DMC Mining33 wwwdmcminingcom
Stu Blattner 33 wwwstublattnercom
Hard-Line35 wwwhard-linecom
Duke Electric36 wwwdukeelectriccom
ROBERT SEAGRAVES 416-510-6891 Fax 416-447-7658 rseagravescanadianminingjournalcom
JOELLE GLASROTH 416-510-5104 Fax 416-447-7658
jglasrothcanadianminingjournalcom
List in the Canadian Mining
Journalrsquos Professional Directory
Cost as low as $25000 per issue
Contact
DONrsquoT MISS THIS OPPORTUNITY TO GROW YOUR BUSINESS IN 2015
PROVIDING THE SAFEST SOLUTIONS
bull Contract Miningbull Shaft Sinkingbull Raise Boring and Raise Excavationbull Mine Construction and Infrastructurebull Mine Development and Rehabilitationbull Headframes and Hoisting Plantsbull Ground Freezing and Grouting Programsbull Engineering Design and Feasibility Studiesbull Property Development through Equity
Investment Partnerships or Joint Ventures
For 36 years we have been the foremost provider of mining services and solutions to the North American mining industry
Canada 1-800-892-8293 or USA 1-800-748-2375
wwwdmcminingcom
Professional Directoryindd 33 2016-01-12 1056 AM
W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
- 002
- 003
- 004
- 005
- 006
- 007
- 008-009
- 010-015
- 016-019
- 020-021
- 022-023
- 024-026
- 027
- 028-030
- 031
- 032
- 033
- 034
- 035
- 036
-
Innovation Research and DevelopmentA positive new development in the prov-incersquos mining sector in recent years is the injection of significant RampD funding into the sector from both provincial and feder-al governments This is in addition to direct funding provided to companies and prospectors under the provincersquos Mineral Incentive Program
Substantial investments have been made in a variety of RampD projects and
initiatives ranging from innovative explo-ration methods to advanced mineral pro-cessing technology Some recent examples of government investment in major proj-ects include
s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program partially funded by Research amp Development Corporation of Newfoundland and Labrador (RDC) on their respective Cu-Pb-
Zn-Ag-Au deposits in central Newfoundland The objective of the research is to determine the technical and economic viability of developing the companiesrsquo key deposits into producing operations by utilizing a central milling facility All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine RDC will con-tribute $535000 to the project
s Search Minerals Inc has announced it will receive research and development fund-ing totaling $1250000 from RDC and from the Atlantic Canada Opportunities Agency The funding is to assist in the con-struction and operation of a pilot plant for the testing of Searchrsquos metallurgical process which is designed for large-scale production of a mixed rare-earth oxide suitable for fur-ther separation by a refinery Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rare-earth element deposit located on the south-east coast of Labrador
s Rambler Mining amp Metals plc has also partnered with RDC in recent years on a project investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the com-panyrsquos Ming Mine through dense media separation This could significantly reduce material handling requirements and poten-tially enable the use of Ramblerrsquos Nugget Pond mill in lieu of building a new stand‐alone copper concentrator RDC has invested $1000000 in the project
RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with indus-try partners and has funded universi-ty-based research in mineralizing process-es and exploration techniques through the Department of Earth Sciences at Memorial University in St Johnrsquos
Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11 2016 at the Holiday Inn St Johnrsquos This one-day event will focus on the increasingly important role that research development and innovation play in growing the mineral industry in Newfoundland and Labrador CMJ
PHIL SAUNDERS P GEO is Mineral Exploration
Consultant Department of Natural Resources
Government of Newfoundland and Labrador
St Johnrsquos
30 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
18774639728galaxybroadbandca
Supported by Local Partners across North America
For over 20 years Galaxy has been providing reliable affordable and innovative enterprise communications
to mining companies for exploration remote offices and camp locations beyond the reach of fibre or cell coverage
Rugged Fixed andAuto-Deploy Systems
Best IntegratedVoIP and Fax
Managed Services andNetwork Solutions
Innovative Reliable andAordable Network
VISIT US AT
Booth 405
High PerformanceCommercial GradeEnterprise Networks
You could win a FREE Galaxy tablet
Nfld Reportindd 30 2016-01-12 1055 AM
Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
PROFESSIONAL DIRECTORYA
DV
ERT
ISER
S IN
DEX
Your complete raise bore solu on
Over 35 Years of Experience
wwwstublanercom
Hatch 2 wwwhatchca
SRK 14 wwwSRKcom
Redpath Mining 15 wwwredpathminingcom
Nuna Logistics 23 wwwnunalogisticscom
Galaxy Broadband 30 wwwgalaxybroadbandca
DMC Mining33 wwwdmcminingcom
Stu Blattner 33 wwwstublattnercom
Hard-Line35 wwwhard-linecom
Duke Electric36 wwwdukeelectriccom
ROBERT SEAGRAVES 416-510-6891 Fax 416-447-7658 rseagravescanadianminingjournalcom
JOELLE GLASROTH 416-510-5104 Fax 416-447-7658
jglasrothcanadianminingjournalcom
List in the Canadian Mining
Journalrsquos Professional Directory
Cost as low as $25000 per issue
Contact
DONrsquoT MISS THIS OPPORTUNITY TO GROW YOUR BUSINESS IN 2015
PROVIDING THE SAFEST SOLUTIONS
bull Contract Miningbull Shaft Sinkingbull Raise Boring and Raise Excavationbull Mine Construction and Infrastructurebull Mine Development and Rehabilitationbull Headframes and Hoisting Plantsbull Ground Freezing and Grouting Programsbull Engineering Design and Feasibility Studiesbull Property Development through Equity
Investment Partnerships or Joint Ventures
For 36 years we have been the foremost provider of mining services and solutions to the North American mining industry
Canada 1-800-892-8293 or USA 1-800-748-2375
wwwdmcminingcom
Professional Directoryindd 33 2016-01-12 1056 AM
W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
- 002
- 003
- 004
- 005
- 006
- 007
- 008-009
- 010-015
- 016-019
- 020-021
- 022-023
- 024-026
- 027
- 028-030
- 031
- 032
- 033
- 034
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-
Northern College located in Wahgoshig Ont in partnership with Wahgoshig First Nation and Primero Mining Corp recently held a celebration in Wahgoshig First Nation for the first of two
groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program
The program with room for six students in each group includes 12 weeks of training delivered by Northern College at Primerorsquos Black Fox Mine site located just outside of Matheson Ont The modular training program covered areas of competen-cy as listed in the MTCU Modular Training Standards Certification Program
Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the pro-gram The graduates now have the basic knowledge and skills to become miners working effectively and safely in the mining industry The program is tuition free thanks to funding provid-ed by Ontariorsquos Aboriginal Economic Development Fund
Daily transportation to and from the training site as well as additional student support was provided by Wahgoshig First Nation
David Zimmer Ontariorsquos Minister of Aboriginal Affairs says ldquoWhen Aboriginal people prosper all of Ontario pros-pers Thatrsquos why wersquore working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund Itrsquos going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level
creating jobs training and business opportunities for Aboriginal communitiesrdquo
ldquoWersquore very excited to be working with Primero and Northern College to provide these opportunities for members of our com-munity to take advantage of the significant industrial develop-ments occurring in our areardquo says Chief Dave Babin of Wahgoshig First Nation
Graham Reid Health Safety amp Environment amp Security Manager at Primero Mining Corp says ldquoThis is an excellent example of how partnerships between First Nations industry and training providers will lead to prosperity for our regionrdquo
ldquoWersquore proud of the relationship we have established with Wahgoshig First Nation and are happy to be expanding that relationship to include training opportunitiesrdquo
ldquoBy working together to develop a stronger workforce wersquore creating an environment where everyone involved will enjoy the benefits of our collective successrdquo
Samantha James one of the graduates from the program says ldquoWith my classmates and instructor wersquove been able to produce ore tonnage from our own heading and wersquove installed ground support using a stoper mucked out using a two-yard scoop drilled on the face using a jackleg and tied in and loaded our own blasts With this training our opportunities for employ-ment are vastrdquo
ldquoThis program will help provide these graduates with the com-petitive advantage when applying for mine positionsrdquo says Christine Heavens Executive Director Community Business Development and Employment Services at Northern College CMJ
GRADS ARE SET TO GO
FIRST NATIONS and MINING
JANUARY 2016 CANADIAN MINING JOURNAL | 31
MINING STUDENTS ARE READY FOR WORK Staff Report
FN Gradsindd 31 2016-01-12 1056 AM
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
PROFESSIONAL DIRECTORYA
DV
ERT
ISER
S IN
DEX
Your complete raise bore solu on
Over 35 Years of Experience
wwwstublanercom
Hatch 2 wwwhatchca
SRK 14 wwwSRKcom
Redpath Mining 15 wwwredpathminingcom
Nuna Logistics 23 wwwnunalogisticscom
Galaxy Broadband 30 wwwgalaxybroadbandca
DMC Mining33 wwwdmcminingcom
Stu Blattner 33 wwwstublattnercom
Hard-Line35 wwwhard-linecom
Duke Electric36 wwwdukeelectriccom
ROBERT SEAGRAVES 416-510-6891 Fax 416-447-7658 rseagravescanadianminingjournalcom
JOELLE GLASROTH 416-510-5104 Fax 416-447-7658
jglasrothcanadianminingjournalcom
List in the Canadian Mining
Journalrsquos Professional Directory
Cost as low as $25000 per issue
Contact
DONrsquoT MISS THIS OPPORTUNITY TO GROW YOUR BUSINESS IN 2015
PROVIDING THE SAFEST SOLUTIONS
bull Contract Miningbull Shaft Sinkingbull Raise Boring and Raise Excavationbull Mine Construction and Infrastructurebull Mine Development and Rehabilitationbull Headframes and Hoisting Plantsbull Ground Freezing and Grouting Programsbull Engineering Design and Feasibility Studiesbull Property Development through Equity
Investment Partnerships or Joint Ventures
For 36 years we have been the foremost provider of mining services and solutions to the North American mining industry
Canada 1-800-892-8293 or USA 1-800-748-2375
wwwdmcminingcom
Professional Directoryindd 33 2016-01-12 1056 AM
W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
- 002
- 003
- 004
- 005
- 006
- 007
- 008-009
- 010-015
- 016-019
- 020-021
- 022-023
- 024-026
- 027
- 028-030
- 031
- 032
- 033
- 034
- 035
- 036
-
32 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
IN MY MINE(D)
There is a clear convergence of Corporate Social Responsibility (ldquoCSRrdquo) expectations and legal risk for Canadian miners operating abroad A recent example of this can be found in the recent tailings dam breach
at an iron-ore mine run by Samarco Mineraccedilatildeo in the Brazilian state of Minas Gerais This incident highlights the risks and risk mitigation opportunities offered by good CSR practices
The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine The reputa-tional impacts were immediately felt with the parent companies quickly implementing a strong public relations campaign to address the disaster head on albeit after some false starts In terms of legal risk an initial fine was levied by the Brazilian government of $66 million Brazilrsquos environment Minister has stated that over $7 billion in damages will be sought against the company
The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil but also in the home jurisdictions of parent companies Across Canada litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad
The viability of these types of cases in Canada is yet to be determined Nevertheless they point to real legal risks which intersect with CSR practices of Canadian companies working abroad In particular a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad In other words regardless of local legal requirements Plaintiffs argue that the companies being sued should have fol-lowed CSR standards and that failure to do so amounts to a tort for which damages can be sought CSR standards most often include those standards endorsed in the Government of Canadarsquos CSR Strategy for the Extractive Sector (ldquoCSR Strategyrdquo) in par-ticular the IFC Performance Standards and Guiding Principles on Business and Human Rights
Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well But when faced with highly vari-ant legal expectations in different global jurisdictions it may be unclear what the appropriate standard is for EHS management Best practice comes from a variety of sources that EHS experts are quite familiar with But in light of these legal and reputation-
al risks it would make sense for Canadian companies to ensure that whatever standards are being applied that they meet or exceed the CSR standards endorsed in the Government of Canadarsquos CSR Strategy
There are technical considerations that should be navigated with specialist experts in tailings management There were vari-ous models to consider with special reference to the type of operation Waste can be disposed of in open pits as backfill in underground mines or disposed offshore and co-disposed with other waste streams Quality control and oversight should be used post-design especially during a minersquos construction and building phases This includes inspections maintenance and monitoring during construction and operations
These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada For example the World Bank EHS Guidelines for the mining sector which forms part of the IFC Performance Standards necessitates regular inspections of tail-ings dams with response strategies where potential weaknesses are identified As such utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management above and beyond local legal requirements
In addition CSR standards like the IFC Performance Standards can if implemented guide other related consider-ations that could affect overall project risk For example the IFC Performance Standards set clear requirements for community health safety and security including development of emergency response plans and contingency planning for any communities that could be affected by a disaster even one with a remote like-lihood The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity Whether through consulta-tion andor compensation it may be necessary to implement strategies for resettlement for affected communities in some sit-uations Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement
As an added side benefit these same standards will be applied by many financing banks in evaluating whether to invest in a project So in addition to managing legal and reputational risks it can make good business sense CMJ
MICHAEL TORRANCE is a lawyer in Northern Rose Fulbrightrsquos Toronto office
By Michael Torrance
Tailings disaster highlights RiskManagement role of CSR norms
CSR amp MINING
CSRindd 32 2016-01-12 1056 AM
JANUARY 2016 CANADIAN MINING JOURNAL | 33
PROFESSIONAL DIRECTORYA
DV
ERT
ISER
S IN
DEX
Your complete raise bore solu on
Over 35 Years of Experience
wwwstublanercom
Hatch 2 wwwhatchca
SRK 14 wwwSRKcom
Redpath Mining 15 wwwredpathminingcom
Nuna Logistics 23 wwwnunalogisticscom
Galaxy Broadband 30 wwwgalaxybroadbandca
DMC Mining33 wwwdmcminingcom
Stu Blattner 33 wwwstublattnercom
Hard-Line35 wwwhard-linecom
Duke Electric36 wwwdukeelectriccom
ROBERT SEAGRAVES 416-510-6891 Fax 416-447-7658 rseagravescanadianminingjournalcom
JOELLE GLASROTH 416-510-5104 Fax 416-447-7658
jglasrothcanadianminingjournalcom
List in the Canadian Mining
Journalrsquos Professional Directory
Cost as low as $25000 per issue
Contact
DONrsquoT MISS THIS OPPORTUNITY TO GROW YOUR BUSINESS IN 2015
PROVIDING THE SAFEST SOLUTIONS
bull Contract Miningbull Shaft Sinkingbull Raise Boring and Raise Excavationbull Mine Construction and Infrastructurebull Mine Development and Rehabilitationbull Headframes and Hoisting Plantsbull Ground Freezing and Grouting Programsbull Engineering Design and Feasibility Studiesbull Property Development through Equity
Investment Partnerships or Joint Ventures
For 36 years we have been the foremost provider of mining services and solutions to the North American mining industry
Canada 1-800-892-8293 or USA 1-800-748-2375
wwwdmcminingcom
Professional Directoryindd 33 2016-01-12 1056 AM
W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
- 002
- 003
- 004
- 005
- 006
- 007
- 008-009
- 010-015
- 016-019
- 020-021
- 022-023
- 024-026
- 027
- 028-030
- 031
- 032
- 033
- 034
- 035
- 036
-
JANUARY 2016 CANADIAN MINING JOURNAL | 33
PROFESSIONAL DIRECTORYA
DV
ERT
ISER
S IN
DEX
Your complete raise bore solu on
Over 35 Years of Experience
wwwstublanercom
Hatch 2 wwwhatchca
SRK 14 wwwSRKcom
Redpath Mining 15 wwwredpathminingcom
Nuna Logistics 23 wwwnunalogisticscom
Galaxy Broadband 30 wwwgalaxybroadbandca
DMC Mining33 wwwdmcminingcom
Stu Blattner 33 wwwstublattnercom
Hard-Line35 wwwhard-linecom
Duke Electric36 wwwdukeelectriccom
ROBERT SEAGRAVES 416-510-6891 Fax 416-447-7658 rseagravescanadianminingjournalcom
JOELLE GLASROTH 416-510-5104 Fax 416-447-7658
jglasrothcanadianminingjournalcom
List in the Canadian Mining
Journalrsquos Professional Directory
Cost as low as $25000 per issue
Contact
DONrsquoT MISS THIS OPPORTUNITY TO GROW YOUR BUSINESS IN 2015
PROVIDING THE SAFEST SOLUTIONS
bull Contract Miningbull Shaft Sinkingbull Raise Boring and Raise Excavationbull Mine Construction and Infrastructurebull Mine Development and Rehabilitationbull Headframes and Hoisting Plantsbull Ground Freezing and Grouting Programsbull Engineering Design and Feasibility Studiesbull Property Development through Equity
Investment Partnerships or Joint Ventures
For 36 years we have been the foremost provider of mining services and solutions to the North American mining industry
Canada 1-800-892-8293 or USA 1-800-748-2375
wwwdmcminingcom
Professional Directoryindd 33 2016-01-12 1056 AM
W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
UNEARTHING TRENDS
EYindd 34 2016-01-12 1057 AM
HardlineAdindd 35 2016-01-12 1057 AM
DukeSuitAd(Mining)PRODai 1 11172015 104146 AM
DukeAdindd 36 2016-01-12 1058 AM
- 001
- 002
- 003
- 004
- 005
- 006
- 007
- 008-009
- 010-015
- 016-019
- 020-021
- 022-023
- 024-026
- 027
- 028-030
- 031
- 032
- 033
- 034
- 035
- 036
-
W e are staring down the barrel of a skilled labour shortage that could leave as many as 100 000 Canadian mining jobs empty in the coming decade Itrsquos too late to sit back and hope some-
one else solves the problem Mining companies need to find new talent and create inclusive working environments that people want to be in if theyrsquore going to leverage the best talentndash includ-ing those that are traditionally overlooked
Two of those key talent pools that are worth building a strat-egy around women and First Nations communities close to remote mine sites Combine the two of them and itrsquos like finding gold when commodity prices are high
Before you find solutions you have to face the problems Why are women so under-represented in our sector Because itrsquos an alpha male style culture Uniforms boots and mine sites themselves arenrsquot designed for women There are no bathrooms underground At first glance those things seem petty and incon-sequential but it sends strong message about who is welcome Companies need to attract a new type of worker by creating a place the target demographic wants to be Start considering a culture change
Engaging First Nations women deserves separate consider-ation because of the long tumultuous relationship between aboriginal communities and industry ldquoHistorically First Nations people were economically excluded because of the Indian Act structure under the federal governmentrdquo says Kim Baird Former Chief of the Tsawwassen First Nation and EY Consultant ldquoBecause of the Supreme Courtrsquos recognition of aboriginal title thatrsquos changing Proposed developments must now consider how a project might impact and benefit First Nations communitiesrdquo
Baird says an Aboriginal strategy for women needs to do four thingss Make it clear women are welcomes Capitalize on existing role models already in the industry by
having a marketing campaign that shows First Nations women in the pictures and tells their stories
s Start recruiting at a young ages Show the positive impact women can have by contributing a
meaningful income to their families
So how do you change the cultureThis innovation canrsquot come from the HR department A true culture shift has to start with and have the efforts of senior man-agement Thatrsquos because it also has to tie into the rest of the organizationrsquos values and goals Therersquos no doubt that strategy includes engaging local communities and First Nations bringing the change full circle
One utility company has a case study that others should use as a template Wanting to capitalize on local talent they priori-tized engaging a First Nations community Outreach efforts included going into schools and telling teens about potential careers The students were also told what classes they would need in order to be ready for those opportunities The outreach didnrsquot end there The company did extensive follow-up and internships and over the course of several years managed to groom a new generation of linesmen This strategy is still used today
How do you maintain that shift over the longer term Once new employees are on board yoursquore over the first hurdle The next one is to keep them there As with any employee women need to see a career path and have sponsors and mentors guiding them By understanding and adapting to changing life stages companies can start to build a workplace that women can see themselves long term
The benefits of engaging more women in the mining indus-try go well beyond helping fill a labour shortage Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust Industry and networking groups need to see the benefits of a diverse and inclusive culture and foster an environment that embraces it
If need be choose a location or region to start a program There will be critics who resist change There will be questions about the increased costs of these new ideas In the long run though itrsquos more expensive to do nothing CMJ
Bruce Sprague is a Partner and EYrsquos Canadian Mining amp Metals Leader
He is based in Vancouver
By Bruce Sprague
First Nations women an untapped resource
34 | CANADIAN MINING JOURNAL WWWCANADIANMININGJOURNALCOM
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