MINING INNOVATION

The Snail and its Friends

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D. ROBINSON, FEBRUARY 2017

Exploration

Mining Operations

DevelopmentRehabilitation

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CANADA

PERU 30 million

35 MILLION

10.6%1%GDP from minerals

3

Aluminum Copper Gold, Iron and steel Lead, mine Nickel Silver Tin

Country (metric tons) (metric tons) (kilograms) (metric tons) Steel, crude Pb content (metric tons) (metric tons) (metric tons)

Peru -- 1,286 151,486 10,126 1,069 266 -- 3,407 23,688Canada 2,969 632 125,853 41,841 12,415 20 223,395 646 --

SELECTED METAL PRODUCTION 2013, CANADA, PERU

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Ontario•over 1/3 of Canada’s metals from Ontario

1.07 million km2 1.29 million km2

<——- 6,550 km ——>

Sudbury

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Population of Capital, millions

108.7

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Sudbury: a happy accident?

1.Geology: the Sudbury Basin

2. 130 years of mining.

Was world’s main source of nickel

Largest mining operation in Canada

3. Canada as major metals exporter

4. A mining city that is also a University town

5. National cluster and innovation agendas from 1990

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1) CAMIRO Canadian Mining Industry Research Organization2) LUMAL Laurentian University Mining Automation Laboratory

3) MERC Mineral Exploration Research Centre4) CFEU Cooperative Freshwater Ecology Unit

5) ELRFS Elliot Lake Research Field Station6) CSERN Canadian Shield Environmental Research Network

7) CIMMER Center in Mining Mineral and Environmental Research.8) Centre in Mining and Mining Environmental Research

9) MIRARCo Mining Innovation, Rehabilitation and Applied Research Corporation

10) CEM Centre for Environmental Monitoring11) CMT Centre for Mining Technology

12) GRC Geomechanics Research Centre13) C-CIARN Ontario: Canadian Climate Impacts and Adaptation Research

14) CIMTec Centre for Integrated Monitoring Technology

MINING RELATED RESEARCH AT LAURENTIAN IN 2002

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1) OGS The Ontario Geological Survey2) CAMIRO Canadian Mining Industry Research Organization3) CANMET Canada Centre for Mineral and Energy Technology

GOVERNMENT AND INDUSTRY

ACADEMIC DEPARTMENTS 20021) Mining Engineering2) Department of Earth Sciences (Geology)

MINING SUPPLY SECTOR1. Over 333 firms in 2. We created a journal and an industry organization

Major additions since 20021. CEMI: Centre for Excellence in Mining Innovation

• national not-for-profit organization • directs and coordinates step-change innovation in the areas

of exploration, deep mining, integrated mine engineering, underground mine construction and environment and sustainability for the metal mining industry.

2. Metal Earth • $104 million applied R&D on the genesis of base and

precious metal deposits during Earth’s evolution. • to make Canada a world leader in metal endowment

research and world-class innovator through open source delivery of new knowledge and the implementation of new technology.

More additions since 2002

3. Goodman School of Mines

4. Bharti School of Engineering expansion

5. M.Eng. or M.A.Sc in Natural Resource engineering

6. PhD in Natural Resource engineering

7. PhD in Materials Science

8. PhD in Mineral Deposits and Precambrian Geology

This has been the setting where I have been observing mining innovation

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The next section is about innovation systems

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A concentration of interacting private and public interests, formal institutions, and other organizations that function according to organizational and institutional arrangements and relationships conducive to the generation, use and dissemination of knowledge (Doloreux 2004).

WHAT IS A REGIONAL INNOVATION SYSTEM?

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Private Firms

Supporting institutions

RIS IS TWO SYSTEMS

Technology diffusion organizations

Education,

Government

Research

Associations

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Exploration

Mining Operations

DevelopmentRehabilitation Exploration

Mining Operations

DevelopmentRehabilitation

Labour

Engineering

Heavyequipment

MiningSupplySector

Rock Mechanics

Geophysics

ventilationexplosives

vehicles

soap

education and training

safety

services

sensors

drills

pastebolts

conveyors

Supply chains

• a very complex network • flows of money must be

understood • much value-added

outside of mining companies

Exploration

Mining Operations

DevelopmentRehabilitation

Labour

Engineering

Heavyequipment

MiningSupplySector

Rock Mechanics

Geophysics

ventilationexplosives

vehicles

soap

education and training

safety

services

sensors

drills

pastebolts

conveyors

Government

Research

Finance

Institutional players

Where does the innovation happen?

Exploration

Mining Operations

DevelopmentRehabilitation

Labour

Engineering

Heavyequipment

MiningSupplySector

Rock Mechanics

Geophysics

ventilationexplosives

vehicles

soap

education and training

safety

services

sensors

drills

pastebolts

conveyors

Government

Research

Finance

`

Innovation organization

MONEY Large mining firms, historically been at the center of any

definition of the mining industry. No initiative related to mining is credible without their participation.

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A Schematic of the System

GOVERNMENT ResearchMoney

Major Mining Companies

Canada’s Mining Innovation System

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• CMIC -> • IMII Saskatchewan • CEMI Ontario

• COREM Quebec • SOREDEM Quebec • MIRARCO • C-CORE • COSIA • CAMIRO • CANMETmining • NRC

Canada’s premier Mining Innovation

Organizations

One ring to rule them all, One ring to bind them

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Canada’s “Mining Innovation Ecosystem”

• The Canada Mining Innovation Council (CMIC): a national, non-profit, umbrella organization to coordinate innovation in the mining industry.

• “open innovation ecosystem business model industry.” • funding from multiple organizations across the supply

chain. • Goals:

• Reduce duplication of effort, • Leverage existing assets • Focus on industry challenges.

• Abitibi Geophysique • Activation

Laboratories • Altius • AngloGold Ashanti • Areva • Atlas Copco • Bioteq • Cameco • CAMESE • Canadian Light

Sources • CEMI* • CH2M Hill Canada • CIM • COREM* • Dassault/Geovia • Deloitte • Delphi

• Mira Geoscience • North American Palladium • Northern Development

Mines & Forestry • National Research Council • PDAC • Research & Development

Corp. Newfoundland • Sandvik • Saskatchewan Research

Council • SRK Consulting • Stratos • Suncor • Teck • Torex • University of Alberta • University of BC • Yamana Gold

• Denison Mines • DGI Geoscience • Eldorado Gold • Franklin Geoscience • Genome BC • Glencore • Government of

Saskatchewan • Government of Yukon • Hecla Mining • IBM • IMII* • Kinross Gold • McEwen • Medatech • Memorial University • Metso Minerals • Mining Association of

Canada (MAC)

CMIC Members

Government Industry associations Universities Research Consortia

• COREM totally devoted to mineral processing R&D.jointly funded by industry and government QUEBEC

• IMII, the International Minerals Innovation Institute, industry-government-post-secondary education and research institutions partnership jointly funded by industry and government. SASKATCHEWAN

• CEMI Center for Excellence in Mining Innovation jointly funded by industry and government ONTARIO

• CAMIRO, the Canadian Mining Industry Research Organization is an industry-based, not-for-profit, collaborative research

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• Does industry really lead?

• Industry wants highly directed effort. • Major companies on board show little interest

in issues of interest to smaller firms or the public

PROBLEMS IN PARADISE

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Mazzucato shows that the private sector only finds the courage to invest after an entrepreneurial state has made the high-risk investments.

The INCO Story: dominated early industry, did research. Reduced research as monopoly declined. Research is a public good. As Vale will contribute to focussed research consortium if there is public funding.

https://youtu.be/vA4VdGl5qQM

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ChallengesReport from the United Nations Environment Programme (Unep)

• Demand for metals is likely to increase tenfold as developing economies surge ahead, putting severe stress on the natural environment,.

• Ore grades are falling, energy costs of extraction rising

• Environmental regulations are becoming more stringent.

• Labour supply is an increasing problem in some countries.

CMIC: The Canadian mining industry’s greatest challenges are how to reduce energy consumption, recover waste energy, decrease the environmental footprint of a mine, develop and adopt new technology, and create new clean jobs while facing volatile commodity markets, increasing costs and significant competition from other jurisdictions.

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Specific Innovations And Innovators

CEMI 935 Ramsey Lake Rd Sudbury, Ontario P3E 2C6 www.cemi.ca

Team of Mining Engineers, Geologists and Business Professionals

Centre for Excellence in Mining InnovationCreating Value through Innovation

Centre for Excellence in Mining Innovation

Research

Basic Idea

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Concept Development

2

Proof of Concept

3

Process Validation in lab/pilot

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Production Process Validated

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Process Capability Validated

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Capability, Economics Validated

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Demonstration Implementation Commercialization

Range of Parts Validated

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Market Ready

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Technology Readiness Levels (TRLs)

© CEMI 2017

CEMI

CEMI slogan: Research is not innovation

© CEMI 2017

pneu. mechanised elec-hydr./automated 2.6m/day, 2016

Reverse a 50-yr Decline in Advance Rates

Record advance rates

Grand Duc Tunnel, BC. Av. 22.8m/day

7.2m/day, 20013.8m/day, 2011

Reasons: Need for Increased Safety Increased Ground Control Larger scale of operations

20152010

© CEMI 2017

Today

Tomorrow

1 2 3 4 5 6 70$-100,000

$0

$700,000

$800,000

$300,000

$400,000

$500,000

$600,000

$100,000

$200,000

INVE

STM

ENT

- RET

UR

N (x

1,0

00)

DECREASE INVESTMENT

IMPROVE ROI

Impact of Increasing speed on Mining Projects

ACCELERATE REVENUE

Innovation Cost = $5M (to reach ore 1 year sooner)

Payback Period = $5/65 x 365 = 28 days (for 1st orebody)

Project Value increases $65M for every year that production starts earlier. ($180,000/day)

© CEMI 2017

Muck

Ground Support

Load

Blast

Drill

Productivity - utilization of the face: use a temporary canopy to allow concurrent activities in the heading.

Current Practice Sequential Activities

Muck

Ground Support Drill/Load

Blast

CANOPY

CEMI proposed Concurrent Activities

The CEMI Rapid Development Project

© CEMI 2017

BOLTINGDRILLING &

CHARGING

TRAVEL

Primary Objective: Reduce Drift Cycle: Increase Advance >7m/day Phase 1a - Canopy System; physical barrier to rock-related hazards. Phase 1b - Allow concurrent activities; reduce face cycle ~ 8 hrs.

Ultra-Deep Mining NetworkVALUEMINE

Improve Productivity & Safety

Lean Production Process minimize pre-production waste development increase productivity of bulk mining method, advance downward, manage stresses.

Shift: Economies of Scale to Economies of Quality

Base Case

Top-down Case

© CEMI 2017

Mine Productivity in extreme Heat & Geotech conditions

Many mines around the world, typical at 2.5km depth in Sudbury

Help Industry Adopt Commercially Viable R&D Results

Accelerate Deployment of Proven Innovative Techniques & Technologies

Ultra-Deep Mining Network

© CEMI 2017

Ventilation Increase Conv. Ventilation - too costly Introduce Conv. Cooling - too costly Mitigate heat & humidity Battery-driven equipment Personal Protection Fresh Compressed Air Liquid Air equipment

Rock Stress Technically resolved Improve cost-effectiveness Minor improvements

Alternative Power systems: Electric, Battery, other…

Individual proximity warning - flashing lights in the helmet. Next: cooling

Hydraulic Air Compressor Inexpensive source of fresh compressed air; dead-end headings.

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MIRARCO AND LMITMIRARCO • Since 1998 • University owned • A collection of FIVE centers: MSR, VPO, GRC, ERCM, CASC

LMT • Laurentian Mining Innovation and Technology • Since 2016 • a collection of FOUR centres CROSH MERC, MIRARCO,

Living with Lakes

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Jan 1 2016 Government of Canada and the International Minerals Innovation Institute (IMII) today announced the Mining Materials Research Cluster in Saskatchewan, which will conduct research into the corrosion of materials used in the fabrication of mineral processing and mining equipment used in Saskatchewan’s potash industry.

AND MORE ORGANIZATIONS

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CANADA’S APPROACH, A SUMMARY

Responsibility divided among many agencies, departments in Federal and Provincial governments. Decentralized: 10 provinces are responsible for resources, education, labour, health Multiple innovation organizations Mining companies (many international) are decisive No clear national or provincial strategies. Not a good model?

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