INNOVATION IN THE FUTURE OF MINING: can we achieve green? Carl Weatherell

why?

What is the burning business platform? CAPEX written off Decline in productivity Slump in EBITA Impairments -32% (2010 – 2015) 1 -$200B (2010 – 2015) 1 -3.5% (2001 – 2013) 2 -39% (2015) 1 PwC’s Mine 2016 –Review of Global Trends in the Mining Industry McKinsey - Productivity in Mining Operations 2015

Global Mining Market Capitalization Mining industry lost $100 B in value in 4 months Diversified Commodities Precious Metals Base Metals Source: Bloomberg Financial Markets and SNL Financial.

“If we don’t change the business of mining we won’t have a mining business” Chief Operating Officers @ 2 Canadian Mining Companies

who are our stakeholders?

how?

Google’s Pillars of Innovation 70% 20% 10% Technology Business Models Operational Improvements Radical Efficiency Transformative Courtesy Kulvir Gill, Clareo

Common Ingredients of Highly Innovative Companies Business ecosystems Open innovation Roadmaps Platforms

What are we doing about it?

Transform Mining Towards a Zero Waste Industry Green = Transform Mining Towards a Zero Waste Industry by 2027… 50% reduction - energy use 50% reduction - water use 50% reduction - environmental footprint

Roadmaps CMIC Project Metal Earth LU Project

Change the Paradigms Current Paradigms Another Way? Waste rock is a reality, lower grades means more rock to the mill Blending enables consistency: You must accept what the mine sends you. Mines are unpredictable, getting accurate “tons & grade” is hard enough so geochemical and geophysical properties all in real-time is not realistic. Water is necessary Energy is required to liberate Throughput maximizes value: maximum value is achieved by maximising throughout.2nd consequence – large capital & footprint. Infrastructure costs drive project economics Tailings are inevitable We must continuously challenge what we believe to be true Current Paradigms Always reject Waste Rock, through design, differentiation, sorting = pre-concentration Accept that Orebodies are variable, orebody knowledge is king, leverage variability into an asset = Real-time digital/TRUE model (Geo-Mine-Met) Always reduce Fresh Water, water is not the answer Always seek Energy efficiency; effective liberation particle liberation maximizes value Always scale from margin: flexible, modular plants both decrease capital and footprint. Shared Infrastructure Water scarce/less Tailings, ensuring sustainability. Another Way?

Underground Mining Innovation Themes Transition from diesel mobile equipment to battery electric vehicle. A significant reduction in ventilation requirements will result Conversion of underground mining to continuous mechanical cutting combined with real-time information to create a continuous and smart mining process. All information now flows in real-time to support continuous automated optimisation. Big data analytics drives decision making A new mining platform for remote locations based on virtual presence – real-time data flow – modular and micro technology. Zero waste to the mill is now real and driving significant new levels of productivity. Zero waste to the mill fits well with all new technology streams. A fully collaborative mining Ecosystem is driving change at a rapid rate. Technology development and deployment is now strategic. Full conversion to Battery Electric Vehicles Continuous Automated Smart Mine Digital real-time mine is now available. Micro and modular technology is available for remote location mining Ecosystem collaboration is now strategic. End Result End Result Zero waste to the mill underpins new levels of productivity

Batch “Dumb” Carbon Continuous “Smart” Electric

Draft Plan

Surface Mining Roadmap Reduce core sampling requirements Adopt coil drill techniques Improve real time data analyses Improve blast hole analyses Integrate ore sensing at the face Implement multi-disciplinary analyses Develop AI based ore models Integrate all ore body data into one common spatial database & planning pltfrm Integrate common database of all resources and capabilities Integrate operational planning and scheduling with financial systems to model system value Explore continuous cutting machines for bulk mining Develop high intensity blasting techniques for fragmentation control Engineer ore sorting at the face and along the mining process to eliminate waste Pre-concentration of ore inside the pit Dedicated ore streams to selective processing to reduce/eliminate blending Decouple truck and shovel interface with loading buffer (surge loader) Electric, modular truck/truck train (trolley assist/Battery hybrid) Remote operation integrated with autonomous hauling Explore application of alternative technologies (Rail-veyor/RopeCon, other) Multi-modal system to optimize the flexibility and cost advantage of different technologies Develop modular equipment that can be containerized for easy transport and on-site assembly Use hybrid air vehicles to transport equipment modules to remote sites Avoid building road/rail infrastructure to remote sites where viable Decouple equipment life from life of the ore body. Relocate equipment Establish digital twins of all equipment as well as full mine and operations Improve predictive analytics of equipment and mining process performance Fully digitalized operations with integrated performance feedback loop Link intelligent work place to integrated planning, scheduling and dynamic simulation Remote centers to operate remote equipment Full autonomous parts of the operations Automate the integration and management of renewable energy integration Electrification of all mining processes Digitally intelligent grid to enable full load control and orchestration at mine level Maximum penetration of renewable energy Use cheap renewable energy to clean and recycle water Zero emissions fully electrified mining operation Use Block-chain (BC) to track ore mined throughout the value chain Reward employees and partners with instant payments Track warranties on parts with BC individually Sell metals and minerals directly to end customer with BC (Track, recycle and resell) Fully transparent mining – operations, supply chain and all external stakeholders Introduce advanced purification and recycling technology to reduce/eliminate tailing Implement digital water monitoring and automated management Establish Block-chain logging of water quality Extract valuable minerals from waste streams 1. Improve ore body knowledge 2. Integrated mine design, planning and scheduling 3. Selective mining 4. Alternative hauling technologies 5. Modular mining 6. Integrated operations with intelligent work environment 7. Automation 8. Electrification & renewable resources 9. Transact more efficiently 10. Improve Water Treatment & Management Stochastic dynamic model of mining process based on plan and schedule Mine smaller, richer ore bodies with small footprint Integrate wearables to create the performance augmented worker Automate back-office processes Zero water environmental impact mining

Material Haulage – alternate haulage technologies Decouple truck and shovel interface with loading buffer (surge loader) Electric, modular truck/truck train (trolley assist/Battery hybrid) Remote operation integrated with autonomous hauling Explore application of alternative technologies (Rail-veyor/RopeCon, other) Multi-modal system to optimize the flexibility and cost advantage of different technologies 4. Alternative hauling technologies Get rid of trucks!

Single process consumes up to 4% of the world’s energy

Novel Grinding Technology New technology to replace ball mills Phase 3 – prototype ~50% reduction in energy consumption ~20% reduction in CAPEX Reduced mill footprint

Mining Industry Knowledge Hub

Next Steps - Transformation of the mining innovation ecosystem Partnership with CANMET Reaching out to the ecosystem Stress testing roadmaps Defining projects Breaking down barriers