MINE 1100 Term Assignment

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Term Assignment – Research on Mining Companies and their Operations

Author:

Course: Mine 1100 - Introduction to the Minerals Industry

Instructor:

​ riday, December 21st


Submitted:​ F
Introduction

In this report we will be looking at two different mining companies and mines that each company
currently has in operation. The research will give a brief overlook of each company and one of
their mines. From this information we should develop a better understanding of both companies
overall operations from production to processing to environmental and social sustainability.

Mining Companies - Barrick Gold Corporation and Vale

Barrick Gold Corporation

Barrick Gold Corporation was founded in 1983 and is headquartered in Toronto, Ontario.
Barrick currently has 12 projects in operation with over 10,000 employees worldwide. Barrick
strives to be the world's most valued gold mining business by developing and owning the best
assets, with the best employees in order to deliver positive returns for owners and partners. Most
gold production by Barrick comes from the Americas at 75% with the other 25% coming from
operations and projects in Australia, Chile, Papua New Guinea, Saudi Arabia and Zambia.

Along with Barricks establish mining operations, the company has several projects on the go.
Including many projects near existing operations as well as greenfield projects happening around
the world.

News Releases / Press Releases

How Barrick Built Its Partnership With the Western Shoshone


November 16, 2018 - Rebecca Darling
https://www.barrick.com/news/news-details/2018/how-barrick-built-its-partnership-with-the-western-shoshone/defa
ult.aspx

This article talks about the partnership that Barrick has with one of their key stakeholders in
Nevada, the Western Shoshone community. Partnership with this community was important for
Barrick in order to conduct operations in the Western Nevada area. Barricks corporate social
responsibility program intensely focused on the Shoshone youth. The company has worked
directly with Shoshone partner communities to create a program that offers academic support,
youth employment, culture and language, scholarships, internships and local employment
opportunities.

Barrick has funded a Summer Youth Employment Program which allowed the youth to gain
valuable work experience within their Shoshone communities. Some participants were even
given scholarships to help fund future schooling. This article shows that Barrick is given back to
the communities in which they operate near in order to create a strong social responsibility
relationship1.

Barrick Shareholders Overwhelmingly Approve Randgold Merger


November 5, 2018
https://www.barrick.com/news/news-details/2018/Barrick-Shareholders-Overwhelmingly-Approve-Randgold-Merg
er/default.aspx

In 2018 Barrick announced that they would be conducting a merger with Randgold Resources
Limited. This press release is announcing that the company’s shareholders have voted to approve
the issuance of the merger and the continuance of Barricks commitment to the Province of
British Columbia’s Business Corporations Act. The continuance and the merger were each
approved by more than 99 percent. The merger is expected to be completed on January 1st 2019,
subject to the approval also by Randgold shareholders, the Royal Court of Jersey and other
customary closing conditions2.

The Goldstrike Mine

Barrick is a Canadian publicly traded mining company


with a vast amount of operating mines and projects in
the works. One mine currently in operation is the
Goldstrike Mine located in Eureka and Elko Countries
Nevada, USA. The mine produces gold for the Barrick
Gold Corporation and employs 3000 people. The red
star on the image to the left shows the location of the
Goldstrike Mine.

Mining Methods
This Mine comprises of both an open pit mine and a
underground mine. The open pit measures
approximately two miles from east to west and 1.5
miles north to south, and have an approximate depth of

1
(2018, October 24). Barrick Gold Corporation - Third Quarter 2018 Results. Retrieved December 19,
2018, from
https://www.barrick.com/news/news-details/2018/Barrick-Reports-Third-Quarter-2018-Results/default.asp
x
2
(2018, November 5). Barrick Shareholders Overwhelmingly Approve Randgold Merger. Retrieved
December 19, 2018, from
https://www.barrick.com/news/news-details/2018/Barrick-Shareholders-Overwhelmingly-Approve-Randgol
d-Merger/default.aspx
1,300 ft. The underground mine consists of 11 different zones stretching over a length of 12,000
ft and a vertical distance from approximately 600 ft to 2,000 ft below the surface (pg. 1-1)3.

The map below shows how and where both mines are seperated. The open pit being in the
Betze-Post (the red section on the map) and the underground mine being seperated in the Meikle,
Roaster and Rodeo areas of the map (yellow section on the map).

(Figure 4-5, pg.4-5)4


The Betze-Post open pit mine uses a truck and shovel operation. Barrick optimizes mining at this
pit by using a multi-phased approach, which maximizes stripping rates to keep an ore producing
face available as much as possible. Underground, two mining methods are used, both which rely

3
(2017, April 25). Goldstrike Technical Report - Amazon AWS. Retrieved December 19, 2018, from
http://q4live.s22.clientfiles.s3-website-us-east-1.amazonaws.com/788666289/files/technical-reports/goldst
rike-04252017.pdf
4
​(2017, April 25). Goldstrike Technical Report - Amazon AWS. Retrieved December 20, 2018, from
http://q4live.s22.clientfiles.s3-website-us-east-1.amazonaws.com/788666289/files/technical-reports/goldstrike-0425
2017.pdf
on cemented backfill for support. In grounds with fair conditions longhole stoping methods are
used and in poor ground situations underhand drift and fill methods are used.

Processing Methods
Goldstrike Mine has two ore processing facilities. The two different processing plants are
1. Autoclave circuit consisting of:
a. Grinding circuits
b. Acid and alkaline pressure oxidation (POX)
c. Total Carbonaceous Material (TCM) leaching process

2. Roaster circuit consisting of:


a. Dry grinding circuits
b. Two-stage fluid bed roasting
c. Carbon in Leach (CIL) gold recovery

Underground ore is all processed using the roaster circuit whereas factors including gold content,
carbonate content and sulphide sulphur content hinder whether the autoclave circuit or the
roaster circuit is used (pg.13-1)5.

Production
The table below shows Goldstrike Mine mineral reserves for December 31, 2016. It’s broken
down by the way the ore was processed, the amount and the grade. Also into three sections,
proven, probable and a combination of the two reserves.

Table 1-2 (pg.1-3)6

5
(2017, April 25). Goldstrike Technical Report - Amazon AWS. Retrieved December 20, 2018, from
http://q4live.s22.clientfiles.s3-website-us-east-1.amazonaws.com/788666289/files/technical-reports/goldst
rike-04252017.pdf
6
(2017, April 25). Goldstrike Technical Report - Amazon AWS. Retrieved December 20, 2018, from
http://q4live.s22.clientfiles.s3-website-us-east-1.amazonaws.com/788666289/files/technical-reports/goldst
rike-04252017.pdf
The proven and probable reserves for the Goldstrike Mine total 70.69 million tonnes grading
3.55 g/t Au and contain 8.08 million oz of gold. At this time there are no major upgrade projects
happening at the Goldstrike mine however Barrick strives on excellence and always bettering
their annual numbers from previous years.

Environmental and Social Activities

Barrick makes it their goal to create positive impacts and leave the places operated in better than
they were before operations. The mines and Barrick corporation have environmental groups and
management systems in place to ensure that permits and licenses needed are in order to operate.

Barrick Believes that a strong relationship with local communities is very important to maintain
a strong brand image. Their social responsibility priorities in 2018 were to have zero incidents
involving communities at sites where Barrick operates and to achieve at least 70% stakeholder
support from local communities7. In october 2017 a nearby community of Atupa blockaded the
Pierina property in Peru due to concerns of the local water supply. This problem had minimal
impacts on mining operations however impacted Barricks social responsibility of taking care of
nearby communities. Barrick dealt with the situation through peaceful dialogue in early
December 2017.

The CR approach has been revised to better align with the overall vision of the company. A
company wide scorecard was also introduced to better measure mining sites level of community
support.

Vale​ ​Mining Company

Vale is the world’s largest iron ore and nickel producer and they plan to continue that trend
through investment in technology and logistics to support efficiency and growth in operations.
Vale operates mines and large logistics systems including railways, maritime terminals and ports
in 6 different countries. Along with nickel and iron ore Vale also produces manganese ore,
ferroalloys, metallurgical and thermal coal, copper, platinum group metals (PGMs), gold, silver
and cobalt8. Vale focuses heavily on sustainability such as local community involvement and the

7
(n.d.). Barrick Gold Corporation - Sustainability - Society - Communities. Retrieved December 20, 2018,
from ​https://www.barrick.com/sustainability/society/community-relations/default.aspx
8
(​ 2018, April 20). Form 20-F - Vale.com. Retrieved December 21, 2018, from
http://www.vale.com/en/investors/information-market/annual-reports/20f/20FDocs/Vale_20F_20
17_i.PDF
environment. ​There vision states “ To be the number one global natural resources company in
creating long term value, through excellence and passion for people and the planet.”9

News Releases / Press Releases

Vale celebrates completion of $1 billion Clean AER Project


September 13, 2018
http://saladeimprensa.vale.com/en/Paginas/Articles.aspx?r=Vale_celebrates_completion_of_1_billion_Clean_AER_
Project&s=Environment&rID=1087&sID=2

On September 13th, 2018 Vale Canada announced the completion of a CAD $1 billion Clean
AER ( Atmospheric Emission Reduction Project) near its Smelter Complex in Sudbury ontario.
This investment is the larger investment put towards the environment in Sudbury’s history. The
AER reduced sulphur dioxide emissions by 85% and metal particulate emissions by 40%.
Because emissions were reduced significantly, the sudbury plant does not require the use of their
iconic super stack. Two new stacks that are currently being constructed will require far less
energy than the super stack. These stacks will reduce greenhouse gas emissions by
approximately 40%.

The AER also positively impacted the local economy providing benefit for local suppliers and
the community along with the creation of approximately 550 construction jobs. This press
release shows how Vale stays true to the vision by being economically and environmentally
responsible.

Vale told to pay $26.8m in damages to indigenous tribes


November 19, 2018 - Cecilia Jamasmie
http://www.mining.com/vale-told-pay-26-8m-damages-indigenous-tribes/

In Brazil a court order has been set against Vale to pay indigenous tribes $26.8 million over river
contamination and public health related issues caused by the nickel mine operating in the
northern state of Para. The plant which has been operating for over a decade was also instructed
to shut down until it meets certain environmental requirements and until the compensation is
paid in full to the Xikrin and Kayapo tribes.

Vale said in a statement, “ ​experts' reports show that the venture has not caused any harm to the
Catete river and the indigenous communities.” Production at Onca Puma reached 6,100 tonnes
of nickel in the third quarter this year which is just over 10% of the total produced by Vale. With
the nickel sector becoming a two-tiered market with the demand growth in electric vehicles Vale

9
(n.d.). Mission, Vision and Values - Vale.com. Retrieved December 21, 2018, from
http://www.vale.com/en/aboutvale/mission/pages/default.aspx
needs to find a way to deal with this dispute without impacting production of nickel at the Onca
Puma plant10.

Voisey’s Bay

Voisey’s Bay is one of Vales mining operations producing 6,000 tonnes of nickel-cobalt-copper
concentrate and copper concentrate a day. Voisey's Bay is a mine based off the North Coast of
Labrador. Voisey’s Bay is located on both Innu
Nation and the Nunatsiavut meaning that two
seperate Impacts and Benefits Agreements (IBA)
had to be negotiated in order to begin operations
on this land. Approximately 500 people are
employed and support mining operations at
Voisey’s Bay, of which just over 50% are
aboriginal people11. The map to the left shows the
location where Voisey’s Bay mining operation is
located12.

Mining Methods
Vale operates an open pit mine and a concentrator
at Voisey’s Bay in Labrador producing nickel and
copper. Deposits for underground mining are
available and will be a project for Vale moving
forward.

Processing
Most of the deposits that are mined at Voisey’s Bay are shipped to the Long harbour facility for
processing. In 2017 the facility ramped up production resulting in first time production of copper
cathode and cobalt rounds along with the nickel. The nickel and copper concentrates from
Voisey’s Bay are shipped via trucks to port and then over to Long Harbour and other Canadian
operations for further refining (pg.45)13.
Production
10
(2018, November 19). Vale told to pay $26.8m in damages to indigenous tribes | MINING.com.
Retrieved December 21, 2018, from
http://www.mining.com/vale-told-pay-26-8m-damages-indigenous-tribes/
11
(n.d.). Voisey's Bay - Vale.com. Retrieved December 21, 2018, from
http://www.vale.com/canada/EN/aboutvale/communities/voiseysbay/Pages/default.aspx
12
(2014, April 12). Ice and lolly - Voisey's Bay nickel mine - The Economist. Retrieved December 21,
2018, from ​https://www.economist.com/the-americas/2014/04/12/ice-and-lolly
13
(2018, April 20). Form 20-F - Vale.com. Retrieved December 21, 2018, from
http://www.vale.com/en/investors/information-market/annual-reports/20f/20FDocs/Vale_20F_2017_i.PDF
The table below shows the production of copper and nickel from 2015 - 2017. Production below
is stated in thousands of metric tons and grade is the pecentage of copper or nickel, respectively.
It can be observed that production of both nickel and copper have stayed relatively the same in
the past 3 years however overall production has slightly increased since 2015.

Projects
Vale started a project in 2016 at Voisey’s Bay to undergo construction of a underground mining
operation. Subject to Board approval, completion of this mine should take place in 2019 with full
operation happening soon after. Its estimated that an additional 400 employees will be needed at
the new mine and a portion at the concentrator once the mining begins.

Environmental and Social Activities

One article talked about earlier in this paper speaks about how Vale is doing its best to give back
to the environment and the other article reveals that they are actually harming the environment.

Reading Vale’s 2017 Sustainability report it seems that the company is heavily involved in
environmental protection and giving back to the community. Environmental performance shows
the commitment with the sustainability of territories in which it operates. Some statistics that
show this is true include:

● 55% of the electricity consumed was self produced


● $487.3 million was invested into environmental protection and conservation
● 100% iron ore dams audited with a condition of attested stability

The company demonstrates respect for its people in the relationships that Vale builds with
employees, communities and stakeholders. Vale strives to employ people from the regions that
they are operating14.

Conclusion
14
"Sustainability Report 2017 - Vale.com."
http://www.vale.com/EN/aboutvale/relatorio-de-sustentabilidade-2017/Pages/default.aspx​. Accessed 21
Dec. 2018.
After researching these two massive mining companies it is clear that both strive on
environmental awareness and being involved with local communities. This is fair for mining
companies because they do emite a lot of emissions for operations and on top of that take up a lot
of land to conduct the mining itself. With global warming being such a hot topic I believe that
mining companies must do what is ever possible for the environment in order to win over the
stakeholders and/or the local economies in which they operate in.

If I was to invest in one of these companies it would be Barrick Gold Corp. Reasons being that
Yale relies on its nickel production which as of now is quite the volatile market. Gold mining
stocks are also easily bought and sold. Gold seems to always hold its value and unless the mine
invested in was to shut down your bet should be safe over long-term.
References

(2018, October 24). Barrick Gold Corporation - Third Quarter 2018 Results. Retrieved
December 19, 2018, from
https://www.barrick.com/news/news-details/2018/Barrick-Reports-Third-Quarter-2018-Results/d
efault.aspx

(2018, November 5). Barrick Shareholders Overwhelmingly Approve Randgold Merger.


Retrieved December 19, 2018, from
https://www.barrick.com/news/news-details/2018/Barrick-Shareholders-Overwhelmingly-Appro
ve-Randgold-Merger/default.aspx

(2017, April 25). Goldstrike Technical Report - Amazon AWS. Retrieved December 19,
2018, from
http://q4live.s22.clientfiles.s3-website-us-east-1.amazonaws.com/788666289/files/technical-repo
rts/goldstrike-04252017.pdf

(2017, April 25). Goldstrike Technical Report - Amazon AWS. Retrieved December 20,
2018, from
http://q4live.s22.clientfiles.s3-website-us-east-1.amazonaws.com/788666289/files/technical-repo
rts/goldstrike-04252017.pdf

(2017, April 25). Goldstrike Technical Report - Amazon AWS. Retrieved December 20,
2018, from
http://q4live.s22.clientfiles.s3-website-us-east-1.amazonaws.com/788666289/files/technical-repo
rts/goldstrike-04252017.pdf

(2017, April 25). Goldstrike Technical Report - Amazon AWS. Retrieved December 20,
2018, from
http://q4live.s22.clientfiles.s3-website-us-east-1.amazonaws.com/788666289/files/technical-repo
rts/goldstrike-04252017.pdf

(n.d.). Barrick Gold Corporation - Sustainability - Society - Communities. Retrieved


December 20, 2018, from
https://www.barrick.com/sustainability/society/community-relations/default.aspx

(2018, April 20). Form 20-F - Vale.com. Retrieved December 21, 2018, from
http://www.vale.com/en/investors/information-market/annual-reports/20f/20FDocs/Vale_20F_20
17_i.PDF
(n.d.). Mission, Vision and Values - Vale.com. Retrieved December 21, 2018, from
http://www.vale.com/en/aboutvale/mission/pages/default.aspx

(2018, November 19). Vale told to pay $26.8m in damages to indigenous tribes |
MINING.com. Retrieved December 21, 2018, from
http://www.mining.com/vale-told-pay-26-8m-damages-indigenous-tribes/
(n.d.). Voisey's Bay - Vale.com. Retrieved December 21, 2018, from
http://www.vale.com/canada/EN/aboutvale/communities/voiseysbay/Pages/default.aspx

(2014, April 12). Ice and lolly - Voisey's Bay nickel mine - The Economist. Retrieved
December 21, 2018, from ​https://www.economist.com/the-americas/2014/04/12/ice-and-lolly

(2018, April 20). Form 20-F - Vale.com. Retrieved December 21, 2018, from
http://www.vale.com/en/investors/information-market/annual-reports/20f/20FDocs/Vale_20F_20
17_i.PDF

"Sustainability Report 2017 - Vale.com."


http://www.vale.com/EN/aboutvale/relatorio-de-sustentabilidade-2017/Pages/default.aspx​.
Accessed 21 Dec. 2018.

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