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

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Presentation on theme: "Application to Renew Water License N7L2-1645 Public Hearing - November 7-10, 2006 Presentation by Diavik Diamond Mines Inc."— 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 Diesel power plant Boiler plant Permanent Accommodations Administration / Maintenance Complex Process Plant Fuel Tanks Sewage Treatment Explosives Emulsion Plant Water intake Lac de Gras

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

10 Water Management Area

11 Diavik Diamond Mine Site PKC Area

12 Primary Containment Dams Secondary Containment Dam Final Containment Dams Secondary Containment Dam

13 Diavik Diamond Mine Site North Country Rock Area

14 Pond 2 Pond 3 Pond 1

15 Diavik Diamond Mine Site A154 Pit and North Inlet Area

16 A154N A154S

17 What is a cubic metre per day (m 3 /d) 20,000 m 3 /d 250,000 m 3 /d Coppermine River at Lac de Gras 1,750,000 m 3 /d Coppermine River at Kugluktuk 25,000,000 m 3 /d

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

19 22 23 27 21 20 24 25 26 33 32 31 29 28 1.Surface Runoff and Groundwater Stations Surveillance Network Program

20 22 23 27 21 20 24 25 26 33 32 31 29 28 1.Surface Runoff and Groundwater Stations 2.Source Water Quality 47 46 45 42 15 12 13 16 42a 49 52 48 11 Surveillance Network Program

21 22 23 27 21 20 24 25 26 33 32 31 29 28 1.Surface Runoff and Groundwater Stations 2.Source Water Quality 3.Final Effluent 4.Mixing Zone -Lac de Gras 47 46 45 42 15 12 13 16 42a 49 52 48 11 19a 19c 19b 18

22 19a19c 19b 18

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 YearWithdrawal from LDGPumped from MineDischarged from NIWTP 20000.01-- 20010.18-- 20020.46-4.1 20030.522.06.8 20041.164.04.7 20050.865.25.6 Annual Water Quantities (Mm 3 /y)

25 Water and Waste Summary Annual Mine Waste Quantities Process Kimberlite (Mt) Waste Rock (Mm 3 ) YearCoarseFineType IType IIType III 2002----- 20030.261.092.550.854.10 20040.381.603.641.575.63 20050.231.904.450.884.82

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$1.2 billion 50% Aboriginal 20% Aboriginal 800 Workers C$1.2 billion 50% Aboriginal ($600 m) C$223 million (2005) 39% Aboriginal 35% Aboriginal (256) 727 Workers Source: Diavik 2005 SEMA Report

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

29 Diavik’s Growing Underground Future Diavik Will Become an Underground Mine * A154 Open-Pit A418 Open-Pit A154/A418 Underground * mine schedule subject to change due to market condictions, further resource evaluation, continued mine planning, etc. Note: A21 pipe is pending further resource evaluation 2021202220232017201820192020201320142015201620092010201120122005200620072008

30 Full and Safe Closure Diavik Site - 2025 Full and Safe Closure Diavik Site - 2025 The Long Term Goal

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 N7L2-1645 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 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) Application cont’

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

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

39 Ammonia Management Plan (AMP) - Objectives 1. 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. 2. To continually work towards achieving the lowest practical ammonia levels in the mine water and final effluent discharge.

40 Additional Measures to Manage Ammonia 2006200720082009 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 Level that is protective of the environment (Water-Quality based Approach) Technology Limit (Technology Based Approach) Estimated range of lowest practical level (Practically Achievable Approach) Total Ammonia (mg/L) Daily Maximum

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 SourceSodium (mg/L) Potassium (mg/L) pHAcute Toxicity (mg/L NH3-N) Chronic Toxicity (mg/L NH3-N) Lac de Gras0.480.446.561.250.79 Effluent5014.17.213283 Mixing zone2.61.06.565.243.30

45 Borgmann and Borgmann (1997) Initial tests showing greater NH 3 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

51 Water Supply

52 FISH Fish

53 Effluent Detectable Effluent Mixing Zone Sediment and Invertebrates Water Quality

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 Effluent Monitoring Dike Monitoring Snow Quality Monitoring Runoff Monitoring AEMP AEMP Scope 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 10 reference sampling points as far from effluent influence as practical Focus on area where changes most likely (exposure area) Results compared with results from reference areas

63

64 Effluent Monitoring Design Approaches Distance Concentration 3 5 5 3 3 1 3 1 1 1111111 2 23 Exposure-Reference Gradient Hybrid Effluent 5 5 1 1 1 1111111 3 2 23

65 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. AEMP - Terms and Conditions

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 Full and Safe Closure Diavik Site - 2025 Full and Safe Closure Diavik Site - 2025 The Long Term Goal

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

71 Re-vegetation Research Study Year 2 Plant Growth

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

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

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

75 2006 (4 th year of operations) Complete Construction of the Test Piles 1 43 2

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 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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