3The Plant Site Today Lac de Gras Lac de Gras Explosives Emulsion PlantFuel TanksDiesel power plantBoiler plantSewage TreatmentProcess PlantAdministration / Maintenance ComplexPermanent AccommodationsAnd here is the mine plant as it looks today. A relatively small footprint for the incredible wealth it is generating.Water intakeLac de Gras
4Introduction Panel Experts Mr. Gord Macdonald – Lead DDMI RepresentativeMr. Scott Wytrychowski – DDMI Environment ManagerMr. Jeff Reinson – DDMI Manager of Infrastructure ConstructionMr. Brad Armstrong and Ms. Melanie Smith - legalExpertsMr. Geoff Beale – water managementMr. J.P. Bechtold – effluent quality criteriaDr. Alan Cameron – explosives managementMr. Don Chorley – hydrogeologyMr. Terry Eldridge – processed kimberlite storage and closureMs. Amy Langhorne – aquatic effects monitoringDr. Karsten Liber – aquatic toxicologyDr. Marcel Pineau – water treatmentMr. Erik Madsen – DDMI Northern Affairs Manager
5Outline Overview of the Status of the Mine Renewal Application Status of Ammonia ManagementStatus of Aquatic Effects Monitoring PlanStatus of Closure and Reclamation PlanTerm of Water LicenseOther IssuesFinal Summary
6Outline Overview of the Status of the Mine Renewal Application Overview of MineCurrent DevelopmentEnvironmental PerformanceSocio-Economic PerformancePlanned DevelopmentSummaryRenewal ApplicationStatus of Ammonia ManagementStatus of Aquatic Effects Monitoring PlanStatus of Closure and Reclamation PlanTerm of Water LicenseOther IssuesFinal Summary
28Aboriginal BusinessTotal Diavik Aboriginal Business Spend ~ $1 BillionMining Operations begin
29Diavik’s Growing Underground Future Diavik Will Become an Underground Mine *2021202220232017201820192020201320142015201620092010201120122005200620072008A154 Open-PitA418 Open-PitA154/A418 UndergroundNote: A21 pipe is pending further resource evaluation* mine schedule subject to change due to market condictions, further resource evaluation, continued mine planning, etc.
30The Long Term GoalFull and Safe ClosureDiavik Site
31Overview Summary Developed as planned. Proud of accomplishments. Proud of performance in Sustainable Development.Our challenge is to continue to improve into the future.
32Outline Overview of the Status of the Mine Renewal Application Overview of ApplicationSecurity DepositRenewal WorkplanStatus of Ammonia ManagementStatus of Aquatic Effects Monitoring PlanStatus of Closure and Reclamation PlanTerm of Water LicenseOther IssuesFinal Summary
33Renewal ApplicationRenewal of Water License N7L filed on August 8, 2005.Application contains:Part 1 - Application FormPart 2 - Completed Mining Industry Questionaire with references on 3 CD’sPart 3 – Consultation SummaryPart 4 – Overview and Status of N7L2-1645Part 5 – Copy of Water LicenseApplication 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.
34Application cont’ Part B - Security Additional security amounts Part B Item 2bMinister currently holds $153M in Security Deposits and this increases to $178M in 2007.The expected total Life of Project Closure Cost is $123MReference Schedule 1 - Environmental Agreement – Column (A)“Additional Security Deposit Amounts ” have been scheduled for the Life of ProjectReference Schedule 1 - Environmental Agreement – Column (B)
35Application cont’ WLWB Renewal Workplan: Renewal and Terms and ConditionsProgress with respect to ammonia and AEMPProductive discussions at hearingDDMI 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.
36Outline Overview of the Status of the Mine The Application Status of Ammonia ManagementAmmonia OverviewDraft Ammonia Management PlanTotal Ammonia Discharge LimitProposed Way ForwardStatus of Aquatic Effects Monitoring PlanStatus of Closure and Reclamation PlanTerm of Water LicenseOther IssuesFinal Summary
38Ammonia Management Plan ScopeAmmonia Investigations2004Terms of Reference2005ADPotherRevised ADP2006AddendumAMP
39Ammonia 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.
40Additional Measures to Manage Ammonia 2006200720082009Explosives ManagementExplosives InvestigationExplosives ImplementationA418 Water to PKCMonitor A418Decision on Water UseFeasibility EngineeringConstruction/OperationsRock Wall SeepagePhase IPhase IITreatment in North InletMonitor NIQuantify ammonia processingNon-native Species IssueDesign Approval - NI DamsField TestsDecision on Approach
41Draft AMP - Content Additional measures to manage ammonia Management objectivesInternal control levelsMonitoring, controls and contingenciesAdditional monitoring requirementsReview, reporting and corrective actions
42Discharge Limit Total Ammonia Daily MaximumLevel 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)
43Recommended Discharge Limit 20 mg/L daily maximum – water quality based approachProtective of environmentEnsures no chronic toxicityEnsures no acute toxicity with pH controlConsistent and recognized approachAmmonia Management Plan to achieve internal control levels.
44Response to Interventions - Ammonia Round whitefish testingResearch on northern aquatic speciesTotal ammonia discharge limitTable 1 INAC InterventionWater SourceSodium(mg/L)Potassium (mg/L)pHAcute Toxicity(mg/L NH3-N)Chronic ToxicityLac de Gras0.480.446.561.250.79Effluent5014.17.213283Mixing zone2.61.05.243.30
45Borgmann 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 hardnessesThe model slightly overestimated ammonia toxicity in Lake Ontario waterThe model substantially overestimated ammonia toxicity (by 6-9 fold) in Lake Superior waterWhile 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
46Proposed 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, andthe 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.
47Summary Ammonia Presentation Provided information about Ammonia.Provided an overview of the draft AMP.How it was developedManagement measuresPlan contentsProposed a way forward.Approving the AMPSetting an ammonia discharge limitRound whitefish researchSubstantial progress has been made.
48Outline Overview of the Status of the Mine The Application Status of Ammonia ManagementStatus of Aquatic Effects Monitoring PlanAquatic monitoringProject-related effects pathways2001 AEMP2006 AEMPTerms and ConditionsProposed Way ForwardStatus of Closure and Reclamation PlanTerm of Water LicenseOther IssuesFinal Summary
55Project 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.
572001 AEMPThe 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.
582001 AEMPApproach 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.
592006 AEMP Redesign INAC baseline review Diavik Technical Committee reviewEMAB reviewMVLWB reviewWLWB directive March 22, 20062006 AEMP to be viewed as effluent monitoring chapter of comprehensive AEMP
60Why is 2006 AEMP improved?Follows national standards for mine effluent monitoringMMEEM based on many years of researchObjective 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 year1 per year biological – every 3 years if no effectsFormal statistical analysis.
62Overview of 2006 AEMP Design Effluent Monitoring Component Water Quality and Trophic Status13 exposure sampling points within 1% effluent plume10 reference sampling points as far from effluent influence as practical1 site at mouth of Coppermine RiverConsistent sampling methods at all sitesBiological SamplingIncludes fish, benthic invertebrates and sediment sampling10 exposure sampling points within 1% effluent plumeFocus on area where changes most likely (exposure area)Results compared with results from reference areas
65AEMP - 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.
66Proposed Way Forward - AEMP Comprehensive AEMP withEffluent, snow quality, runoff, dikes and TK/communityImmediate 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.
67AEMP Presentation Summary Provided overview of aquatic effects monitoring.Reviewed all the potential effects pathways from the Project to Lac de Gras.Summarized effects resultsDescribed the 2006 AEMP (effluent monitoring)Terms and ConditionsProposed Way ForwardTechnical workshops to provide inputImplementation April 2007Substantial progress has been made.
68Outline Overview of the Status of the Mine The Application Status of Ammonia ManagementStatus of Aquatic Effects Monitoring PlanStatus of Closure and Reclamation PlanOngoing ResearchTerms and ConditionsProposed Way ForwardTerm of Water LicenseOther IssuesFinal Summary
69The Long Term GoalFull and Safe ClosureDiavik Site
70Re-vegetation Research Study Soil AmendmentsPlanting and MonitoringNorth Inlet Water Treatment Plant Waste SludgeFall SeedingSewage Treatment Plant SludgeShrub CuttingsLake Bottom TillContinues Monitoring
71Re-vegetation Research Study Year 2 Plant Growth
72Waste Rock Test Piles 2003 (1st year of operations) The Planning Began
732004 (2nd year of operations) Start Construction of the Tipping Platform
742005 (3rd year of operations) Construction of the Collection Drains
752006 (4th year of operations) Complete Construction of the Test Piles 143
76World Class Research Team Principle Researchers:Dr. David Blowes – University of WaterlooDr. Leslie Smith – University of British ColumbiaDr. Dave Sego – University of AlbertaInternal Reviewers:Dr. Paul Brown – Rio TintoDr. Ward Wilson – University of British ColumbiaSupporters:DDMINational Research Council of Canada (NSERC)INAP, CFI & MEND
77C&R Plan – Terms and Conditions Wording of Section L substantially carried forwardOther terms and conditions as noted in DDMI Response October 30, 2006.
78Proposed 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, andWorks constructively towards approval of the Plan.
79Outline Overview of the Status of the Mine The Application Status of Ammonia ManagementStatus of Aquatic Effects Monitoring PlanStatus of Closure and Reclamation PlanTerm of Water LicenseOther IssuesFinal Summary
80Term of LicensePrimary 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
81Outline Overview of the Status of the Mine The Application Status of Ammonia ManagementStatus of Aquatic Effects Monitoring PlanStatus of Closure and Reclamation PlanTerm of Water LicenseOther IssuesDischarge limit for nitrateFinal Summary
82Other Issues - NitrateInterveners recommend nitrate be added as a regulated parameter.DDMI accepts addition of nitrate as regulated parameterLimit should be based on level that is protective of the environment.DDMI provided detailed calculations and rationale.DDMI clarified comment regarding BHPB Toxicity Data.
83Outline Overview of the Status of the Mine The Application Status of Ammonia ManagementStatus of Aquatic Effects Monitoring PlanStatus of Closure and Reclamation PlanTerm of Water LicenseFinal Summary
84Final SummaryReviewed the development, operation and future mine plansReviewed the Renewal ApplicationReviewed Ammonia ManagementRecommend discharge limit of 20 mg/LApprove AMPRecommend research on round whitefishReviewed AEMP Scope/PurposeRecommended scope for comprehensive AEMPProposed Way Forward - AEMPClosure and ReclamationProposed Way Forward – C&R Plan