From Exploration to a Mine. Kativik Regional Government Council Meeting November, 2012

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1 From Exploration to a Mine Kativik Regional Government Council Meeting November,

2 Mining Projects Process Presentation: 1. Potential 2. Claims 3. Exploration 4. Project development 5. Impact assessment and authorizations 6. Mining operation 7. Site restoration 8. Timeline 2

3 Potential Mineral exploration in Nunavik since 1750 Cyril Knight campaigns to 1933 Salluit-Kangiqsujuaq region. Xstrata Nickel A.P. Low geological expedition Labrador coast late 1800 s 3

4 Potential Surveys and data compilation Quebec government surveys and compilations 4

5 Potential Lots of potential, but many challenges After nearly 200 years of exploration in Nunavik, only 2 mines have been opened Asbestos Hill Production Early 2013 Xtrata Raglan opened

6 Claims Exploration companies apply for mining claims «Click and claim» via internet with the Quebec Ministère des Ressources Naturelles (MRN) 1 claim = 0.45 hectares 98$ per claim; 2 year term; $135 required work per claim per year 6

7 Exploration The company will group claims into exploration projects 37 active exploration projects in Nunavik 7

8 Exploration Aerial Prospection Drilling Sampling Analysis 8

9 Project development 5 projects currently being developed Eldor (Commerce Resources) Hopes Advance Bay (Oceanic Iron Ore) Kémag (New Millennium) Lac Otelnuk (Adriana Resources) Strange Lake (Quest Rare Minerals) 9

10 Project development Many steps: Technical study (NI ) Pre-feasibilty Preliminary economic analysis Feasibilty study Detailed design Financing Start of the impact and review process 10

11 Project development Decision by the promoter to move ahead with a project The project is feasible Start the environmental impact assessment processes 11

12 Roles of the KRG Kativik Regional Government (KRG) departments are active during all stages of mine project development Letters of conformity and inspections of exploration activities Technical analysis and assistance to Northern Villages Planning for training to allow Nunavimmiut to access jobs Information to mining companies and communities on business opportunities During assessment process, analysis of projects and impacts, as well as submitting briefs to the various review boards 12

13 Impact assessment and authorizations Four different environmental assessment processes One or more may be needed and can go on at the same time Kativik Environmental Quality Commission (KEQC) Federal Environmental and Social Impact Review Panel (COFEX Nord) Nunavik Marine Regional Impact Review Board (NMRIRB) Canadian Environmental Assessment Agency (CEAA) 13

14 Impact assessment and authorizations Kativik Environmental Quality Commission (KEQC) Section 23 of the James Bay and Northern Quebec Agreement (JBNQA) and Sections 181 to 213 of the Environment Quality Act Implemented in members named by the KRG, 4 members named by the Government of Quebec and a Chairperson named by the Government of Quebec following consultation with the KRG 14

15 Impact assessment and authorizations Kativik Environmental Quality Commission (KEQC) Preliminary information submitted to MDDEFP by proponent Project notification is sent to the Commission by MDDEFP Preliminary assessment and preparation of guidelines Preparation of an impact study by the proponent Yes Project automatically subject to the procedure?? No No Decision to exempt the project from Environmental and Social Impact Assessment?? Yes Certificate of Exemption issued by MDDEFP Review by the Commission Public consultation Commission s decision with or without conditions If authorized MDDEFP issues Certificate of Authorisation to proponent 15

16 Impact assessment and authorizations Federal Environmental and Social Impact Review Panel (COFEX Nord) Sections and of the JBNQA Implemented in the early 1980s 2 members named by the KRG 3 members named by Canada 16

17 Impact assessment and authorizations Federal Environmental and Social Impact Review Panel Project description Examined by Screening Committee YES Project of federal nature Project requires a full EIA NO NO Letter sent to proponent informing them that the project is not subject to the federal review process YES Fed Administrator triggers process Guidelines for the impact statement are sent to proponent Public consultation if required Federal Review Panel North examines EIS Federal administrator makes final decision Final decision: Project is authorized or not If authorized, conditions are specifed to proponent 17

18 Impact assessment and authorizations Nunavik Marine Regional Impact Review Board (NMRIRB) Article 7 Nunavik Inuit Land Claims Agreement (NILCA) Created in members named by Makivik Corporation, 1 member named by the Government of Nunavut, 1 member and a Chairperson named by Canada 18

19 Impact assessment and authorizations Nunavik Marine Regional Impact Review Board (NMRIRB) Project Scoping and Guideline creation Issuance of Guidelines for the preparation of a Draft Environmental Impact Statement (DEIS) Preparation and submission of the DEIS by the project Proponent Preparation and submission of the Final Environmental Impact Statement (FEIS) by the project Proponent FEIS compliance review Technical review of the FEIS Guideline conformity review of the DEIS Technical review of the DEIS Final hearing NMRIRB Determination: Delivery of the Final hearing report to the Minister Technical Meeting Pre-hearing conference Minister's Decision 19

20 Impact assessment and authorizations Canadian Environmental Assessment Agency (CEAA) The Canadian Environmental Assessment Act contains provisions for review of projects for which Canada has jurisdiction The Canadian Environmental Assessment Agency names a panel for each project to be reviewed 20

21 Impact assessment and authorizations Canadian Environmental Assessment Agency (CEAA) Determination of whether an EA is required including consultation Create environmental impact statement (EIS) guidelines including consultation Environmental impact statement (proponent) EA decision EA or review panel report including consultation of report Review of EIS including consultation 21

22 Impact assessments and authorizations Other activities related to this phase: Community information and consultation by the promoter KRG assists Northern Villages and participates in consultation process held by the different review bodies Impact benefit agreements (Makivik & Land Holding Corporations) 22

23 Environmental Decision Approval of the project Conditions in global authorization After global authorization, possible authorization for individual components Refusal of the project 23

24 Mine operations Ongoing monitoring of social, economic and environmental issues 24

25 Site restoration Long process Obligation of the company to restore site Progressive restoration Ongoing monitoring Challenges: Mine restoration projects have rarely been done in Nunavik Need to plan ahead Northern context (climate, permafrost, vegetation, etc) Public safety (open pits) Stability of tailing piles Acid leaching Monitoring 25

26 Timeline Potential Claims Exploration Development Impact assessment and authorisations Mining operations Site restoration years 5-10 years 3-8 years years 5-20 years +20 years from start of exploration to mine operations starting 26

27 Nakurmiik For more information on mining processes and projects in Nunavik contact the Renewable Resources, Environment, Lands and Parks Department 27

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