Mining 101 Presentation

OFNEDA 2013Annual ConferencePresented by: Jennifer David

• Background on Mining– Ontario’s Mining Landscape– Odds of Finding a New Mine

• Mineral Exploration and Development Sequence1. Prospecting and Staking2. Grassroots Exploration3. Advanced Exploration4. Mine Development5. Production/Mining6. Closure and Reclamation

• The Mining Act

Agenda

• Lead the way in spending and production• Half of world’s publicly traded mining

companies• Canada’s biggest gold mine• Ontario’s mineral production in 2012 was 9.2

billion.• Nearly half of all suppliers• 23,000 jobs

Ontario’s Mining Landscape

• 35 operating mines (mostly gold or base metals)• Jobs in and around Sudbury and northwestern Ontario• $4 billion a year industry

Mining is the largest industrial employer of Aboriginal peoples in Canada, 7.5% of the total labour force.

Ontario’s Mining Landscape

Odds of Finding a New Mine

The Mining Cycle

Step 1 Prospecting and Staking

1. Prospecting and Staking

• Prospecting is looking for minerals and metals• Anyone can do it• Need a licence and small tools• Staking is marking a section of land so you can

come back and continue exploring

Prospecting and Staking

What is it and Who does it?

STEP #1 IN MINING CYCLE

First Nations or on reserve members can be prospectors

MNDM offers First Nation-specific prospectors course

Communities or members may benefit from finding minerals

Prospecting and Staking

Links to Economic Development

Step 2 Grassroots Exploration

2. Grassroots Exploration

• Often done by junior mining companies• Low to moderate impact on the land• Surveys (geological, geophysical, geochemical)• Mechanical work (drilling, strip mining, channel mining)• Possible bulk sample required• Additional research

What is it and Who does it?

STEP #2 IN MINING CYCLE

GrassrootsExploration

1. Contracting out services like line cutting, digging and trenching, and diamond drilling.

2. Catering and supply companies (food, fuel and possibly equipment rental).

3. A very good opportunity to begin to set up small businesses within the community.

Grassroots Exploration

Links to Economic Development

At the political level, this is when First Nations enter into agreements

Memorandum of UnderstandingImpact Benefits AgreementPartnership Agreement

Grassroots Exploration

Step 3 Advanced Exploration

3. AdvancedExploration

• When a company believes it has discovered a sizeable deposit

• Done by junior or often major mining companies• More impact on the land• Triggers the need for closure plan

What is it and Who does it?

STEP #3 IN MINING CYCLE

AdvancedExploration

Political discussions on comprehensive agreementsContracting for servicesContracting for suppliesLabourersSmall business/joint venture opportunitiesBaseline Environmental Studies

Advanced Exploration

Links to Economic Development

Step 4 Mine Development

4. Mine Development

• Done by the major mining company willing to invest• Viable deposits found• Evaluation, engineering reports done• Site plan drawn up• Construction• Major impact on the land (open pit or underground)

What is it and Who does it?

STEP #4 IN MINING CYCLE

Mine Development

• Infrastructure Requirements – A mine site can be open pit or underground. Regardless, a mine site will require:

• A mill• Support buildings• Access to a mine shaft (underground mining)• A space to store waste rock• Tailing ponds• Roads and power corridors• Stripping and storing of soil and vegetation overburden• Water treatment facilities

Mine Development

IBA or Participation Agreements:Employment and trainingAccess to business opportunities Financial considerations

Contracting for servicesCamp services, suppliesEmployment in trades, administration, manual

labourers, equipment operators and professionals

Mine Development

Links to Economic Development

Step 5 Mine Production

5. Mine Production/Operation

• The mine is in full operation• Buildings and Infrastructure are in place• Minerals are extracted, separated and sent for further

refining• Mine can operate between average 8 years (gold) and

50+ years (diamonds) and anywhere in between

What is it and Who does it?

STEP #5 IN MINING CYCLE

Mine Production

Entry level, semi-skilled, skilled and professional jobs required.

Businesses will continue to benefit by providing:

Production/Mining

Links to Economic Development

• Depending on skillset, education/training level or experience there is a role in mining.

• Large labour shortage in the mining field • Over 120 different types of mining occupations• Colleges and Universities offer mine-related training

programs• Companies will have recruitment standards (pre-

employment, medical and security)• Skill development, mentorship, job shadowing are

common on-site

Production/Mining

• Education Requirements

Production/Mining

Entry Level (Gr. 12)

Semi-skilled (Gr. 12 + Exp).

Skilled (College/Trades)

Professional (University)

Underground miner Warehouse technician

Trades Managers

Trades helpers Administrative Safety technicians EngineersHeavy equip. operators

Trades Environment techs Geologists

Housekeeping services

Scientists

Accountants

Step 6 Closure and Reclamation

6. Closure and Reclamation

– It begins when the mining is finished– It includes:

• Removal of infrastructure (buildings, roads, power lines, etc.);• Closing any openings in the ground;• Returning the lands to as near natural state as possible;• Ensuring physical and environmental safety is maintained;• Monitoring the environment for years later; and• Returning the lands to the Crown.

What is it and Who does it?

STEP #6 &7 IN MINING CYCLE

Closure and Reclamation

– Limited number of jobs and opportunities during closure– Specialized business and employment required– Main jobs include:

• Trades people to dismantle equipment• Equipment operators and mechanic• Inspectors• Security and first aid personnel• Environmental monitoring personnel (water and ground sample)• Site reclamation companies• Tree planters

Closure and Rehabilitation

Links to Economic Development

Mining Act

The Mining Act outlines rules and regulations

that apply to mining in Ontario.

New Provisions in Mining Act

Former Ontario Mining Act New Ontario Mining Act

Apply for a prospector’s licence. Complete the MNDM online educational program before applying for a licence.

Lands could be withdrawn from claims staking (i.e. protected), but this would be at the discretion of the government (i.e. no legislative or regulatory requirements).

Lands that are sites of ‘Aboriginal cultural significance’ can be protected from claim staking by a government Order in Council.

Exploration Plans needed at grassroots exploration stage. No permits required to conduct early exploration activities.

Exploration Plans or Permits are now needed to conduct early exploration activities.

No requirement for Aboriginal consultation except when submitting a Mine Closure Plan.

The Act must be implemented consistent with Aboriginal and treaty rights. Aboriginal consultation is required prior to submitting a Closure Plan, and prior to its filing by MNDM.

Some mine sites were abandoned, and never reclaimed or rehabilitated.

Anyone can apply to voluntarily rehabilitate a mine site without assuming liabilities.

New Provisions in Mining Act

Former Ontario Mining Act Changes to the Act

Prospectors must stake their claim and register it with the Ontario government.

Prospectors must stake their claim and register it with the Ontario government and also include GPS data on the location of the claim.

Mining companies paid expenses related to Aboriginal consultations as it was not included in assessment work/costs.

MNDM now covers some eligible expenses for Aboriginal consultation as part of assessment work/costs as well as the cost for companies to submit GPS data.

Few rules on applying for permission to test a bulk sample.

New thresholds for what constitutes bulk sample, more rules and permits required, permission to dispose of material.

Aboriginal consultation occurred after a Closure Plan was submitted and before the plan is filed with the government.

Aboriginal consultation must occur prior to submitting a Closure Plan. Closure Plan must include a record of Aboriginal consultation.