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Application to Renew Water License N7L2-1645

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Presentation on theme: "Application to Renew Water License N7L2-1645"— Presentation transcript:

1 Application to Renew Water License N7L2-1645
Public Hearing - November 7-10, 2006 Presentation by Diavik Diamond Mines Inc.

2 Pictures for Mark Lac de Gras

3 The Plant Site Today Lac de Gras Lac de Gras
Explosives Emulsion Plant Fuel Tanks Diesel power plant Boiler plant Sewage Treatment Process Plant Administration / Maintenance Complex Permanent Accommodations And here is the mine plant as it looks today. A relatively small footprint for the incredible wealth it is generating. Water intake Lac de Gras

4 Introduction Panel Experts
Mr. Gord Macdonald – Lead DDMI Representative Mr. Scott Wytrychowski – DDMI Environment Manager Mr. Jeff Reinson – DDMI Manager of Infrastructure Construction Mr. Brad Armstrong and Ms. Melanie Smith - legal Experts Mr. Geoff Beale – water management Mr. J.P. Bechtold – effluent quality criteria Dr. Alan Cameron – explosives management Mr. Don Chorley – hydrogeology Mr. Terry Eldridge – processed kimberlite storage and closure Ms. Amy Langhorne – aquatic effects monitoring Dr. Karsten Liber – aquatic toxicology Dr. Marcel Pineau – water treatment Mr. Erik Madsen – DDMI Northern Affairs Manager

5 Outline Overview of the Status of the Mine Renewal Application
Status of Ammonia Management Status of Aquatic Effects Monitoring Plan Status of Closure and Reclamation Plan Term of Water License Other Issues Final Summary

6 Outline Overview of the Status of the Mine Renewal Application
Overview of Mine Current Development Environmental Performance Socio-Economic Performance Planned Development Summary Renewal Application Status of Ammonia Management Status of Aquatic Effects Monitoring Plan Status of Closure and Reclamation Plan Term of Water License Other Issues Final Summary

7 Overview

8 Plan vs Current

9 Diavik Diamond Mine Site
PKC Area North Country Rock Area North Inlet Storage Facility North Inlet Water Treatment Plant & Discharge A418 Dike & Future Pit Area A154 Dike & Pit Area

10 Water Management Area

11 Diavik Diamond Mine Site
PKC Area

12 Final Containment Dams Primary Containment Dams
PKC Area Final Containment Dams Secondary Containment Dam Primary Containment Dams Secondary Containment Dam

13 Diavik Diamond Mine Site
North Country Rock Area

14 North Country Rock Area
Pond 1 Pond 3 Pond 2

15 Diavik Diamond Mine Site
A154 Pit and North Inlet Area

16 A154S A154N

17 What is a cubic metre per day (m3/d)
Coppermine River at Lac de Gras 1,750,000 m3/d Coppermine River at Kugluktuk 25,000,000 m3/d

18 A154 Pit Area 20,000 North Inlet Treatment Plant Final Effluent 20,000
Mine Seepage >100 Dike Seepage >100

19 Surveillance Network Program
Surface Runoff and Groundwater Stations 20 21 32 29 31 26 27 23 28 22 33 25 24

20 Surveillance Network Program
Surface Runoff and Groundwater Stations Source Water Quality 20 21 32 29 31 26 27 48 42 12 23 16 42a 28 47 15 13 11 22 33 45 25 46 49 24 52

21 Surveillance Network Program
Surface Runoff and Groundwater Stations Source Water Quality Final Effluent Mixing Zone -Lac de Gras 20 21 32 29 31 26 27 48 42 12 23 16 42a 28 47 15 13 11 22 33 45 25 19a 46 49 19c 24 52 19b 18

22 19c 19a 18 19b

23 Final discharge as percent of
License limit Water quality at highest effluent exposure as a percent of effects threshold

24 Water and Waste Summary
Annual Water Quantities (Mm3/y) Year Withdrawal from LDG Pumped from Mine Discharged from NIWTP 2000 0.01 - 2001 0.18 2002 0.46 4.1 2003 0.52 2.0 6.8 2004 1.16 4.0 4.7 2005 0.86 5.2 5.6

25 Process Kimberlite (Mt)
Water and Waste Summary Annual Mine Waste Quantities Process Kimberlite (Mt) Waste Rock (Mm3) Year Coarse Fine Type I Type II Type III 2002 - 2003 0.26 1.09 2.55 0.85 4.10 2004 0.38 1.60 3.64 1.57 5.63 2005 0.23 1.90 4.45 0.88 4.82

26 Environmental Performance
Water Management and Monitoring Wasterock and PKC Management Compliance Effects less than EA Predictions No significant adverse effects on Lac de Gras

27 Socio-Economic Performance Northern Commitments
C$223 million (2005) 727 Workers C$1.2 billion 800 Workers C$1.2 billion 50% Aboriginal 50% Aboriginal ($600 m) 35% Aboriginal (256) 39% Aboriginal 20% Aboriginal Source: Diavik 2005 SEMA Report

28 Aboriginal Business Total Diavik Aboriginal Business Spend ~ $1 Billion Mining Operations begin

29 Diavik’s Growing Underground Future
Diavik Will Become an Underground Mine * 2021 2022 2023 2017 2018 2019 2020 2013 2014 2015 2016 2009 2010 2011 2012 2005 2006 2007 2008 A154 Open-Pit A418 Open-Pit A154/A418 Underground Note: A21 pipe is pending further resource evaluation * mine schedule subject to change due to market condictions, further resource evaluation, continued mine planning, etc.

30 The Long Term Goal Full and Safe Closure Diavik Site

31 Overview Summary Developed as planned. Proud of accomplishments.
Proud of performance in Sustainable Development. Our challenge is to continue to improve into the future.

32 Outline Overview of the Status of the Mine Renewal Application
Overview of Application Security Deposit Renewal Workplan Status of Ammonia Management Status of Aquatic Effects Monitoring Plan Status of Closure and Reclamation Plan Term of Water License Other Issues Final Summary

33 Renewal Application Renewal of Water License N7L filed on August 8, 2005. Application contains: Part 1 - Application Form Part 2 - Completed Mining Industry Questionaire with references on 3 CD’s Part 3 – Consultation Summary Part 4 – Overview and Status of N7L2-1645 Part 5 – Copy of Water License Application deemed complete – September 8, 2006. DDMI has not applied for any changes to Terms and conditions. Seek a 15 year term to coincide with expected duration of operations. With the Application, DDMI requested an exemption from Preliminary Screening. DDMI received exemption from Preliminary Screening – September 8, 2006.

34 Application cont’ Part B - Security Additional security amounts
Part B Item 2b Minister currently holds $153M in Security Deposits and this increases to $178M in 2007. The expected total Life of Project Closure Cost is $123M Reference Schedule 1 - Environmental Agreement – Column (A) “Additional Security Deposit Amounts ” have been scheduled for the Life of Project Reference Schedule 1 - Environmental Agreement – Column (B)

35 Application cont’ WLWB Renewal Workplan:
Renewal and Terms and Conditions Progress with respect to ammonia and AEMP Productive discussions at hearing DDMI written response to interventions submitted to WLWB October 30, 2006. DDMI Responded to specific intervener suggestions and recommendations with a focus on: Changes to terms and conditions, including discharge limit for total ammonia. Ammonia Management Plan and proposed way forward. AEMP and proposed way forward.

36 Outline Overview of the Status of the Mine The Application
Status of Ammonia Management Ammonia Overview Draft Ammonia Management Plan Total Ammonia Discharge Limit Proposed Way Forward Status of Aquatic Effects Monitoring Plan Status of Closure and Reclamation Plan Term of Water License Other Issues Final Summary

37 Ammonia Management Loading Load & Haul Mixing & Placing Explosives
Western Denesoline Explosives Drilling I&D Mgmt Services Loading Holes Western Denesoline Blasting Loading Load & Haul I&D Management Services Western Denesoline Explosives

38 Ammonia Management Plan
Scope Ammonia Investigations 2004 Terms of Reference 2005 ADP other Revised ADP 2006 Addendum AMP

39 Ammonia Management Plan (AMP) - Objectives
To ensure that explosives are used and water is managed in such a way that ammonia losses do not result in a change in the trophic status of Lac de Gras or adverse environmental effects. To continually work towards achieving the lowest practical ammonia levels in the mine water and final effluent discharge.

40 Additional Measures to Manage Ammonia
2006 2007 2008 2009 Explosives Management Explosives Investigation Explosives Implementation A418 Water to PKC Monitor A418 Decision on Water Use Feasibility Engineering Construction/Operations Rock Wall Seepage Phase I Phase II Treatment in North Inlet Monitor NI Quantify ammonia processing Non-native Species Issue Design Approval - NI Dams Field Tests Decision on Approach

41 Draft AMP - Content Additional measures to manage ammonia
Management objectives Internal control levels Monitoring, controls and contingencies Additional monitoring requirements Review, reporting and corrective actions

42 Discharge Limit Total Ammonia
Daily Maximum Level that is protective of the environment (Water-Quality based Approach) Estimated range of lowest practical level (Practically Achievable Approach) Total Ammonia (mg/L) Technology Limit (Technology Based Approach)

43 Recommended Discharge Limit
20 mg/L daily maximum – water quality based approach Protective of environment Ensures no chronic toxicity Ensures no acute toxicity with pH control Consistent and recognized approach Ammonia Management Plan to achieve internal control levels.

44 Response to Interventions - Ammonia
Round whitefish testing Research on northern aquatic species Total ammonia discharge limit Table 1 INAC Intervention Water Source Sodium (mg/L) Potassium (mg/L) pH Acute Toxicity (mg/L NH3-N) Chronic Toxicity Lac de Gras 0.48 0.44 6.56 1.25 0.79 Effluent 50 14.1 7.2 132 83 Mixing zone 2.6 1.0 5.24 3.30

45 Borgmann and Borgmann (1997)
Initial tests showing greater NH3 toxicity in softer water were run in artificial media diluted 90% with deionized water (no intermediate concentrations tested) Tests used to develop a model on the influence of Na+ and K+ on ammonia toxicity were only run in artificial media at two undocumented hardnesses The model slightly overestimated ammonia toxicity in Lake Ontario water The model substantially overestimated ammonia toxicity (by 6-9 fold) in Lake Superior water While Na+ and K+ can influence ammonia toxicity to Hyalella azteca in artificial media, there is no evidence that the Borgmann model is applicable to Lac de Gras conditions

46 Proposed Way Forward - Ammonia
With discussions from these hearings: submit that the Board will be in a position to approve the AMP in accordance with Part H of the Water License, and the Board should be able to determine the long-term discharge limit for ammonia. DDMI proposes that the testing of round whitefish be developed as a research project with DDMI as a funding partner.

47 Summary Ammonia Presentation
Provided information about Ammonia. Provided an overview of the draft AMP. How it was developed Management measures Plan contents Proposed a way forward. Approving the AMP Setting an ammonia discharge limit Round whitefish research Substantial progress has been made.

48 Outline Overview of the Status of the Mine The Application
Status of Ammonia Management Status of Aquatic Effects Monitoring Plan Aquatic monitoring Project-related effects pathways 2001 AEMP 2006 AEMP Terms and Conditions Proposed Way Forward Status of Closure and Reclamation Plan Term of Water License Other Issues Final Summary

49 Aquatic Effects Monitoring

50 Water Quality Water Quality

51 Water Supply Water Supply

52 FISH Fish

53 Sediment and Invertebrates
Water Quality Effluent Detectable Effluent Mixing Zone

54

55 Project Related Effects - Results
Water quality effects monitoring results are within levels predicted in the EA. Water use amounts are within levels predicted in the EA and have not caused impacts on water supply in Lac de Gras. Monitoring of effects on fish have not identified any significant impacts and results are generally within EA predictions. Dust deposition rates are currently higher than predicted in EA – ongoing construction.

56 AEMP AEMP Scope Effluent Monitoring Dike Monitoring Snow Quality
Runoff Monitoring TK and Community

57 2001 AEMP The scope of the AEMP was the subject of review at the February 27, 2001 DTC meeting #7. Final program design prepared and approved (July 2001) with DTC support. Some Water License items were explicitly not included.

58 2001 AEMP Approach was to set trigger values that if exceeded would raise a flag. Trigger values set conservatively low relative to EA effects levels. Trigger values not statistically-based. Trigger values set based on baseline data.

59 2006 AEMP Redesign INAC baseline review
Diavik Technical Committee review EMAB review MVLWB review WLWB directive March 22, 2006 2006 AEMP to be viewed as effluent monitoring chapter of comprehensive AEMP

60 Why is 2006 AEMP improved? Follows national standards for mine effluent monitoring MMEEM based on many years of research Objective clearly defined. Comparisons made between exposure and reference – minimal reliance on baseline data. Additional reference sites – added fish. VEC and measurement endpoints defined by program and linked to the EA thresholds. Two Parts: 4 times per year water quality – every year 1 per year biological – every 3 years if no effects Formal statistical analysis.

61

62 Overview of 2006 AEMP Design Effluent Monitoring Component
Water Quality and Trophic Status 13 exposure sampling points within 1% effluent plume 10 reference sampling points as far from effluent influence as practical 1 site at mouth of Coppermine River Consistent sampling methods at all sites Biological Sampling Includes fish, benthic invertebrates and sediment sampling 10 exposure sampling points within 1% effluent plume Focus on area where changes most likely (exposure area) Results compared with results from reference areas

63

64 Effluent Monitoring Design Approaches
Exposure-Reference 3 5 5 5 5 3 Gradient 1 1 Concentration 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Hybrid 3 3 3 2 2 2 2 3 3 Distance Effluent

65 AEMP - Terms and Conditions
Support intervener recommendations that: Scope be as per Part K of expiring License. Update to reflect work completed and exemptions that have been granted. Enable integration of other monitoring program results to meet “project-related” requirement. Annual AEMP for approval. Other terms and conditions as noted in DDMI Response October 30, 2006.

66 Proposed Way Forward - AEMP
Comprehensive AEMP with Effluent, snow quality, runoff, dikes and TK/community Immediate work to focus on effluent effects monitoring. DDMI proceed immediately to prepare comprehensive AEMP with Board direction on scope. Technical workshops on effluent monitoring in December and January – EC EEM Specialists requested to facilitate. Draft of consolidated AEMP – January 31,2007. Review from interested parties – February 15, 2007. WLWB approval – March 31, 2007. Begin implementation April 2007 (water quality) – full implementation (WQ plus biological) Summer 2007. DDMI committed to development of new AEMP through facilitated process. Ask Board to request all parties to make constructive proposals towards development of new AEMP.

67 AEMP Presentation Summary
Provided overview of aquatic effects monitoring. Reviewed all the potential effects pathways from the Project to Lac de Gras. Summarized effects results Described the 2006 AEMP (effluent monitoring) Terms and Conditions Proposed Way Forward Technical workshops to provide input Implementation April 2007 Substantial progress has been made.

68 Outline Overview of the Status of the Mine The Application
Status of Ammonia Management Status of Aquatic Effects Monitoring Plan Status of Closure and Reclamation Plan Ongoing Research Terms and Conditions Proposed Way Forward Term of Water License Other Issues Final Summary

69 The Long Term Goal Full and Safe Closure Diavik Site

70 Re-vegetation Research Study
Soil Amendments Planting and Monitoring North Inlet Water Treatment Plant Waste Sludge Fall Seeding Sewage Treatment Plant Sludge Shrub Cuttings Lake Bottom Till Continues Monitoring

71 Re-vegetation Research Study
Year 2 Plant Growth

72 Waste Rock Test Piles 2003 (1st year of operations) The Planning Began

73 2004 (2nd year of operations) Start Construction of the Tipping Platform

74 2005 (3rd year of operations) Construction of the Collection Drains

75 2006 (4th year of operations) Complete Construction of the Test Piles
1 4 3

76 World Class Research Team
Principle Researchers: Dr. David Blowes – University of Waterloo Dr. Leslie Smith – University of British Columbia Dr. Dave Sego – University of Alberta Internal Reviewers: Dr. Paul Brown – Rio Tinto Dr. Ward Wilson – University of British Columbia Supporters: DDMI National Research Council of Canada (NSERC) INAP, CFI & MEND

77 C&R Plan – Terms and Conditions
Wording of Section L substantially carried forward Other terms and conditions as noted in DDMI Response October 30, 2006.

78 Proposed Way Forward – C&R Plan
Recommend that the WLWB establish a process of review and finalization that: Provides opportunity to review the draft, Has realistic timelines, Make submissions respecting revisions, Allows participation in workshops or meetings, and Works constructively towards approval of the Plan.

79 Outline Overview of the Status of the Mine The Application
Status of Ammonia Management Status of Aquatic Effects Monitoring Plan Status of Closure and Reclamation Plan Term of Water License Other Issues Final Summary

80 Term of License Primary reasons given for shorter License is ability to comment and request changes. DDMI suggests that this process does exist. Requests Term of License as 15 years

81 Outline Overview of the Status of the Mine The Application
Status of Ammonia Management Status of Aquatic Effects Monitoring Plan Status of Closure and Reclamation Plan Term of Water License Other Issues Discharge limit for nitrate Final Summary

82 Other Issues - Nitrate Interveners recommend nitrate be added as a regulated parameter. DDMI accepts addition of nitrate as regulated parameter Limit should be based on level that is protective of the environment. DDMI provided detailed calculations and rationale. DDMI clarified comment regarding BHPB Toxicity Data.

83 Outline Overview of the Status of the Mine The Application
Status of Ammonia Management Status of Aquatic Effects Monitoring Plan Status of Closure and Reclamation Plan Term of Water License Final Summary

84 Final Summary Reviewed the development, operation and future mine plans Reviewed the Renewal Application Reviewed Ammonia Management Recommend discharge limit of 20 mg/L Approve AMP Recommend research on round whitefish Reviewed AEMP Scope/Purpose Recommended scope for comprehensive AEMP Proposed Way Forward - AEMP Closure and Reclamation Proposed Way Forward – C&R Plan

85 Mahsi Cho


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