Extracting Value from

Sunk & Presumed Costs

Innovative Strategies to Meet Changing Expectations

Karen Chovan, MASc, PEng, PMP

CIM May 2, 2017: A New State of Mine

Productivity =

Value Derived

Time, Money & Effort Invested

1 = Break Even 5 = Maximum Value

Storyline
Mining
Realities
Opportunities
Fewer
Challenges,
Lower
Spend,
Spending
Greater
Value!
New Views

Shifts
Realities of Mining
A LOT of Materials Management

Unique & Variable No One-Size Fits All

Long Term Stability Challenges

High Risk, Poor External Perceptions

High Costs at all Lifecycle Stages

$$ Front End Spend
Deposit Delineation & Characterization

Extraction Sequencing & Optimization

Processing Experiments & Pilots

Geochemical & Impact Analyses - Wastes

Baseline Environment Studies

Stakeholder Engagement & Approvals

Processes
 $$ Management Spend
Siting, Modelling & Design of Waste Treatment,
Handling & Containment Systems
Construction, Maintenance & Closure
Requirements of Waste Containment Systems
Water Management Systems
Lifecycle Environmental Monitoring Infrastructure
and Program Implementation
Financial Assurance Updates & Regulatory
Reporting

Photo credit: http://www.mining.com/wp-content/uploads/2016/02/11.jpg

Progressive Shifts
Optimizing Extraction, Blasting, Comminution

Processing & Material Handling Innovations

Energy & Water Efficiencies & Recovery

 Leadership and learning are
indispensable to each other
- John F. Kennedy

By three methods we may learn wisdom:

First, by reflection, which is noblest;
Second, by imitation, which is easiest; and
Third by experience, which is the bitterest.
- Confucius
The LEAN Mine Model
Maximum Value & Minimum Risks

Minimum Viable Process

Flow = Optimization & Efficiencies

Pull = Pre-sales Driven Production

Pursuit of Perfection!
Gensource Potash Corp
Selective Dissolution w/ Enhanced
Crystallization Recovery

Reduced Infrastructure & Engineering Risks

Product Pre-sold & Direct Shipped in Bulk

What is of Value?
Whats in Your Ore body?

Multiple ores, different grades?

REEs?

Industrial Minerals?

Low Grade Residuals

 Waste Valued with Fresh Eyes
Whats in Your Waste?

Granite. Slate. Limestone.

The Times of India estimates that the illicit
Gravel & Sand market for sand is worth around $2.3bn
a year...A 2014 report by the United
Feldspars, Clays
Nations Environment Programme
estimates [sand and gravel] account for
up to 85% by weight of everything
mined globally each year.

Photo credit: http://www.ejolt.org/2014/08/building-an-economy-on-quicksand/

Critical
Elements in
Mine Wastes

Source: Re-
processing of mining
waste: Combining
environmental
management and
metal recovery?,
Bellenfant et al., Mine
Closure 2013
 Residual Ores Recovery
Tailings re-processing examples
Go Gold Resources gold & silver - Mexico
Century Bull zinc Queensland, AU
Kimberley Ekapa Mining JV diamonds Kimberley,
SA
DRD Gold Limited gold Johannesburg, SA

http://gogoldresources.com/
http://www.mmg.com/en/Investors-and-Media/News/2017/02/28/170228-New-life-for-
Century.aspx
https://www.petradiamonds.com/our-operations/our-mines/kem/
http://www.drd.co.za/
 Waste to Product Conversion
Byproducts Extraction, Conversion Examples
Minerals Research Laboratory extracts various
industrial minerals from tailings wastes, and other
wastes such as incinerator ash
Orbite processes red mud, fly ash and other waste
streams to produce alumina, rare earths and rare
metals, as well as other valuable materials
FerrockTM uses CO2 and various
iron-bearing waste streams:
5 times stronger & more flexible
than concrete

http://www.orbitealuminae.com/English/applications/waste-monetization/default.aspx
https://www.buildabroad.org/2016/09/27/ferrock/
 Value from Synergies

In Virginia, over 2.3M tons of abandoned waste - GOB coal

has been fed to a circulating fluidized bed hybrid energy plant

Source: https://www.dom.com/about-us/making-energy/coal-oil-and-
gas/virginia-city-hybrid-energy-center
 Shared Land & Infrastructure
Solar &/or Wind Power

Agriculture / Forestry

Medicinal Plants or Fish Farming?!

Photo: http://www.solarreserve.com/en/solutions/mining-industry
 Shared / Post Infrastructure Use
High-Tech Laboratories

Underground Data Storage

Photo: https://www.snolab.ca/science/
Post-Mine Land & Infrastructure
Tourism Golf, Biking, Gardens, and more
Customer Partnerships & JVs
Product pre-sales Shared &/or
repurposed
By-product creation infrastructure

Development costs Future land-use

Call to Action
We are literally swimming in a
sea of unlimited possibilities...
and you will only see
what youre looking for!

- Darren Hardy, The Compound Effect

Is your property as Productive

as it could be?

Photo credit: Powderruns via VisualHunt / CC BY

Collaborate & Win, Together!
Lets put our heads together.

Hackathons, HIVEs, Challenges,

Innovation / Excellence Hubs

Fresh eyes, more eyes will see

more opportunities!

A collaborative network is
stronger than a single mind.
 Its Your Turn!
You have the response - ability to make a new
decisionthe ability to take action!

1. Review anew
2. Challenge thinking & approaches
3. Collaborate
4. Just START!

Photo credit: Dr PS Sahana * Kadamtala Howrah via Visual hunt / CC BY

 How do you do MORE WITH LESS?

You do it DIFFERENT!

Understand Systems Risks & Dependencies

Introduce Lean and Green Strategies
Facilitate Multi-Stakeholder Collaboration

Contact:
Karen Chovan, MASc, PMP, PEng
306-270-1430
kchovan@envirointegration.com www.envirointegration.com