Presentation on theme: "OFNEDA 2013 Annual Conference Presented by: Jennifer David"— Presentation transcript:
1 OFNEDA 2013 Annual Conference Presented by: Jennifer David Mining 101 PresentationOFNEDA 2013Annual ConferencePresented by: Jennifer David
2 Agenda Background on Mining Ontario’s Mining LandscapeOdds of Finding a New MineMineral Exploration and Development SequenceProspecting and StakingGrassroots ExplorationAdvanced ExplorationMine DevelopmentProduction/MiningClosure and ReclamationThe Mining Act
3 Ontario’s Mining Landscape Lead the way in spending and productionHalf of world’s publicly traded mining companiesCanada’s biggest gold mineOntario’s mineral production in 2012 was 9.2 billion.Nearly half of all suppliers23,000 jobsExploration spending and mineral production is highest in Ontario.TSX/TSX-V list ½ of worlds public mining companies.Detour gold (Cochrane) is Canada’s biggest gold mine.Ontario is home to 45% of the suppliers specialized mining goods and services in Canada.
4 Ontario’s Mining Landscape 35 operating mines (mostly gold or base metals)Jobs in and around Sudbury and northwestern Ontario$4 billion a year industryMining is the largest industrial employer of Aboriginal peoples in Canada, 7.5% of the total labour force.Roughly 26% of mining employment is in Sudbury, 19% in Northwestern Ontario.Annually, 4 billion is invested in R&D, exploration, construction and equipmentAverage weekly wages in Ontario mining are 60% higher than the average industrial wage
8 What is it and Who does it? Prospecting and Staking STEP #1 IN MINING CYCLEWhat is it and Who does it?Prospecting and StakingProspecting is looking for minerals and metalsAnyone can do itNeed a licence and small toolsStaking is marking a section of land so you can come back and continue exploringThe initial step in the exploration process.Minerals and metals are discovered in this stage.There is minimal potential for any physical impacts on the land.Prospecting begins prior to stakingStaking is marking a section of land to claim the sole right to prospect for minerals, if the prospector feels the area is worth further exploration.
9 Links to Economic Development Prospecting and StakingLinks to Economic DevelopmentFirst Nations or on reserve members can be prospectorsMNDM offers First Nation-specific prospectors courseCommunities or members may benefit from finding minerals
11 What is it and Who does it? STEP #2 IN MINING CYCLEWhat is it and Who does it?GrassrootsExplorationOften done by junior mining companiesLow to moderate impact on the landSurveys (geological, geophysical, geochemical)Mechanical work (drilling, strip mining, channel mining)Possible bulk sample requiredAdditional research
12 Links to Economic Development Grassroots ExplorationLinks to Economic DevelopmentContracting out services like line cutting, digging and trenching, and diamond drilling.Catering and supply companies (food, fuel and possibly equipment rental).A very good opportunity to begin to set up small businesses within the community.
13 Grassroots Exploration At the political level, this is when First Nations enter into agreementsMemorandum of UnderstandingImpact Benefits AgreementPartnership AgreementMemorandum of Understanding (MOU) - signed early in the process and determines how parties move forward.Impact Benefits Agreement (IBA) – Recognizes treaty rights, compensates for negative impacts, stipulates for employment and training, business opportunities, environmental protection and financial considerations.Partnership Agreements (PA) – Beyond an IBA, First Nation has a stake in the company through partnership or incorporated company. The community then has a say in finances, employment and contracting.
15 What is it and Who does it? STEP #3 IN MINING CYCLEAdvancedExplorationWhat is it and Who does it?When a company believes it has discovered a sizeable depositDone by junior or often major mining companiesMore impact on the landTriggers the need for closure planActivities at this stage involve a higher impact on the environment (includes underground exploration, larger bulk samples and stripping).This triggers the need for a closure plan and financial assurances that the land will be rehabilitated once complete.
16 Links to Economic Development Advanced ExplorationLinks to Economic DevelopmentPolitical discussions on comprehensive agreementsContracting for servicesContracting for suppliesLabourersSmall business/joint venture opportunitiesBaseline Environmental StudiesContracting for services – caterers, line cutting, transportation and freight servicesContracting for supplies – food, fuel
18 What is it and Who does it? STEP #4 IN MINING CYCLEWhat is it and Who does it?Mine DevelopmentDone by the major mining company willing to investViable deposits foundEvaluation, engineering reports doneSite plan drawn upConstructionMajor impact on the land (open pit or underground)
19 Mine Development Infrastructure Requirements A mine site can be open pit or underground. Regardless, a mine site will require:A millSupport buildingsAccess to a mine shaft (underground mining)A space to store waste rockTailing pondsRoads and power corridorsStripping and storing of soil and vegetation overburdenWater treatment facilities
20 Links to Economic Development Mine DevelopmentLinks to Economic DevelopmentIBA or Participation Agreements:Employment and trainingAccess to business opportunitiesFinancial considerationsContracting for servicesCamp services, suppliesEmployment in trades, administration, manual labourers, equipment operators and professionalsContracting for services: (catering, site services, building construction, road construction and mine development)Camp services, supplies (fuel and food)Employment in trades (carpenters, electricians, etc,), administration (support staff), manual labourers, equipment operators and professionals (engineers, managers, etc)
22 What is it and Who does it? STEP #5 IN MINING CYCLEWhat is it and Who does it?Mine ProductionThe mine is in full operationBuildings and Infrastructure are in placeMinerals are extracted, separated and sent for further refiningMine can operate between average 8 years (gold) and 50+ years (diamonds) and anywhere in betweenProcess occurs once the proper infrastructure, permits and employees are in place.Ore that is separated from the tailings is sent for concentration and smelting.Milling is the process to extract the minerals from the oreTailings ponds exist to contain the water and chemicals left over from milling
23 Links to Economic Development Production/MiningLinks to Economic DevelopmentEntry level, semi-skilled, skilled and professional jobs required.Businesses will continue to benefit by providing:Camp, catering and housekeeping services;Contract mining (underground and open pit);Site services;Supplying goods and equipment;Surveying;Ongoing construction services;Environmental services; andRecycling services;Trucking
24 Production/MiningDepending on skillset, education/training level or experience there is a role in mining.Large labour shortage in the mining fieldOver 120 different types of mining occupationsColleges and Universities offer mine-related training programsCompanies will have recruitment standards (pre- employment, medical and security)Skill development, mentorship, job shadowing are common on-site
27 What is it and Who does it? Closure and Reclamation STEP #6 &7 IN MINING CYCLEWhat is it and Who does it?Closure and ReclamationIt begins when the mining is finishedIt 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; andReturning the lands to the Crown.
28 Links to Economic Development Closure and RehabilitationLinks to Economic DevelopmentLimited number of jobs and opportunities during closureSpecialized business and employment requiredMain jobs include:Trades people to dismantle equipmentEquipment operators and mechanicInspectorsSecurity and first aid personnelEnvironmental monitoring personnel (water and ground sample)Site reclamation companiesTree planters
29 Mining ActThe Mining Act outlines rules and regulations that apply to mining in Ontario.
30 Former Ontario Mining Act New Provisions in Mining ActFormer Ontario Mining ActNew Ontario Mining ActApply 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.
31 Former Ontario Mining Act New Provisions in Mining ActFormer Ontario Mining ActChanges to the ActProspectors 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.