Informing Innovation Strategies

- CMIC, the CIM and the Oil Sands

An Innovation Story....Oil Sands

An Oil Sands Primer....History

GCOS Sun Oil Suncor

Innovation in Action• early mineral processing

technology development( University of Alberta) Mildred Lake Pilot Plant

Syncrude

1963 1979

1964

Province of Alberta

Calgary

Lloydminster

Edmonton

Suncor &Syncrude

Fort McMurray

Surface mineable

Athabasca Oil Sand DepositAthabasca

Cold LakePeace River

1.7 Trillion Bbls estimated to be in place in Alberta’s oil sands

300 Billion Bbls - ultimately recoverable with current technology

An Oil Sands Primer....Resource

Mining – 20% of the oil sands resource is less than 200 feet deep - 2.5% of Surface Area

An Oil Sands Primer....Mining

Oil Sands Mining....Knowing the Numbers

60 billion barrels = 240 billion tonnes mined

An Oil Sands Primer.... Securing Canada's Energy Future

We will achieve this by...•Encouraging learning and innovation in everything we do, •Pushing the limits of what technology can accomplish,

Corporate DNA

An Innovation Imperative....Technology LeverageCorporate DNA

Rank/Company21 Rogers Communications Inc.21 Vale Canada Limited (fs)23 Constellation Software Inc.24 Hydro-Quebec25 General Motors of Canada Limited.26 Syncrude Canada Ltd. 27 Sierra Wireless, Inc.28 Novartis Pharmaceuticals Canada Inc.29 CGI Group Inc. 30 PMC-Sierra Ltd.

Trucks

Shovels

Crushers

Slurrying

Extraction

FrothTreatment

Upgrading

Environmental

DL/BWR/Conveyors

Pumps & Pipelines

An Innovation Imperative....Technology LeverageCorporate DNA

Innovation & Continuous Improvement

Oil SandApplications

Warm WaterExtraction

Hydrotransport

Low EnergyExtraction

NFL

AuroraRemote

Ore BodyMining &Extraction

Centrifuge Rate & Quality

PFTIPSNRU

Run Length & Capacity LC Finer Catalyst

CokerStretch

VacuumTopping

UE1

DL/BWR/

Conveyors

Trucks

Shovels

CrushersPumpsPipelines

Slurrying

Extraction

FrothTreatment

Upgrading

Environmental WaterAir

QualityTailings Mnmgt

ReclamationCertification BML FEN

An Innovation Imperative....Technology LeverageCorporate DNA

An Innovation Imperative....CollaborationCorporate DNA

National Oil Sands Task Force• fiscal certainty and stability

encouraging investment

Syncrude DevelopedTechnologies MadeAvailable to Industry

An Innovation Imperative....EngagementCorporate DNA

An Innovation Story....Oil Sands

Innovation Imperatives

Technology Leverage Collaboration Engagement

An Innovation Story.... CIM/CMIC/Oil Sands

The Story Unfolds.... Introducing Our Cast

Vision World-class professional development, networking, and knowledge sharing. Purpose The core purpose of CIM is to serve minerals, materials and petroleum industries and professionals around the world. We will achieve this by: •Facilitating collaboration among all constituents. •Providing networking opportunities.

The Story Unfolds.... Introducing Our Cast

Vision: Canada is a global leader in the mining industry through leading edge research and innovation

Mission: To enhance the competitiveness of a responsible Canadian mining industry through excellence in research, innovation and commercialization

•Highly Qualified People•Innovation Systems•Collaboration•Targeted Research and Innovation•Branding

•Exploration•Mining•Processing•Environment

The Story Unfolds.... Introducing Our Cast

The SMART Group is an association of mining companies working to coordinate the technology development needed by the mining industry. The SMART membership collaborate in Industry wide initiatives, learning forums and best practice sharing.

The Story Unfolds.... Introducing Our Cast

Principles• Network’s intellectual

property policy will enable collaborative research

Goal• Improve the performance of

the Oil Sands Industry through superior new technologies

BeliefCollaborative R&D have higher impact on technology development than isolated R&D and it must be encouraged.

Industry Associations….Early Collaborations

Securing Canada's Energy Future

National Vision for Mining Research....CMIC

Over 150 leaders from industry, government, research centres and academia participated in Regional Workshops: Vancouver, Edmonton, Saskatoon, Toronto, Val-d’Or, Montréal and Halifax

Edmonton session identifiesoil sands tailings as anopportunity for collaboration

CMIC Board supports oil sands tailings collaboration as a national priority

CMIC and the Oil Sands Tailings Consortium

Oil Sands Tailings Consortium (OSTC)

Intellectual Property constraints limit

collaboration

CMIC works in OSTCto establish collaboration

opportunities

Level of Technology Collaboration

HighLow

VendorResearch

Field FollowPrototypes

EnvironmentalResearch

Gov’t SupportedResearch (NSERC)

BlanketPatents

Defensive Patents

Patents forCompetitive Advantage

SpecificR&D

BroadBasedR&D

TechnologySales/Licensing

Benchmarking

IndustryInformationSharing

EquipmentUser Groups

Mining SchoolOr UniversityResearch

IndustryAdvisory Committees

IndustryResearchAssociations

LearningSeminars

SupplierImprovements

An Innovation Challenge....Intellectual Property

TradeSecrets

MiningIndustryAdvantage

Mining Firm CompetitiveAdvantage

An Innovation Challenge.... Market Competition

The Oil Sands Industry As a Whole Must Demonstrate Tailings Technology Improvement

Taili

ngs

Tech

nolo

gyEff

ectiv

enes

s

Time

Firm A - S

etting the Pace

Supported byInnovationFirm B - Status Quo

Firm C - Lower Gains

Performance Differentiated by Organization’sCapability to Integrate Potential Improvements

Corporate DNA

An Innovation Imperative....Integration

Innovation Imperatives Innovation Challenges

Technology Leverage Intellectual Property Collaboration Market Competition Engagement Integration

An Innovation Story.... CIM/CMIC/Oil Sands

An Innovation Imperative.... Leadership

Shell

Vice PresidentsRound Table

May 27, 2010

Leadership

Colla

bora

tion

Leve

l

Calendar TimeNov 2010

100%

May 2010

VP RoundTable

Discussions and ReworkWith Reduced Enrollment

An Innovation Imperative.... Leadership

Colla

bora

tion

Leve

l

Calendar TimeNov 2010

100%

May 2010

VP RoundTable

Discussions and ReworkWith Reduced Enrollment

Additional Innovation Challenges.... Equity, Competition Law, Legal Risk Mgmt.

MarketCompetition

IntellectualProperty

Equity/Sustainability

Legal RiskManagement

CompetitionLaw

Leadership Heroes in Every Company

An Innovation Imperative.... Leadership

Innovation Imperatives Innovation Challenges

Technology Leverage Intellectual Property Collaboration Market Competition Engagement Equity/Sustainability Integration Legal Risk Mgmt. Leadership Competition Law

An Innovation Story.... CIM/CMIC/Oil Sands

An Innovation Success.... CIM/CMIC/Oil Sands

The Oil Sands Tailings Consortium

Collaborating on Oil Sands Tailings Innovation

A Template for SustainableCollaboration & Innovation

Shell

An Innovation Success.... CIM/CMIC/Oil Sands

The Oil Sands Tailings Consortium

Collaborating on Oil Sands Tailings Innovation Our Vision: To enable responsible

and sustainable growth of Canada’s oil sands while delivering accelerated improvement in environmental performance through collaborative action and innovation.

Tailings Water

Land Greenhouse GasesA Template for SustainableCollaboration & Innovation

CMIC: A Vision for Innovation Leadership in Canada

Making Innovation a Priority

Making Everyone a Leader in Innovation

Making InnovationHappen Starts with

Us

Innovation Leadership….

Making Innovation a Priority

Making Everyone a Leader in Innovation

Making InnovationHappen Starts with

Us

Innovation Leadership….

Innovation Leadership….

Making Innovation a Priority

Making Everyone a Leader in Innovation

Making InnovationHappen Starts with

Us