Exploration, Environmental Assessment, and EPCM: the...

Exploration, Environmental Assessment, and EPCM: the Complete Picture Lessons Learned from Northern BC

May 28, 2015

Who Are We?

► Global consulting, engineering, project management and project

delivery company

► 40,000 employees, 50 countries worldwide

► 100+ years operating in Canada

► BC’s largest engineering firm (No. of Prof. Engineers)

► 11 offices across the province

2

Environmental Mining & Geology

Process development

Project delivery

Underground project delivery

Material handling systems

Global mining solutions from concept through closure

Markets Sectors Business units

Oil & Gas

Mining

Environment &

Infrastructure

Renewables / Bioprocess

Transmission & Distribution

Conventional Power

Nuclear

Clean

Energy

Glo

ba

l P

ow

er

Gro

up

No

rth

ern

Eu

rop

e &

CIS

Am

eri

cas

Asia

, M

idd

le E

ast,

Afr

ica &

So

uth

ern

Eu

rop

e

Water

Transport

Government

Industrial / Pharma

Upstream

Midstream

Downstream

Mining & Metals

Mining & Metals Offerings

Amec Foster Wheeler – BC Involvement

Brucejack

Pretivm

Kitsault

Alloycorp

Red Chris

Imperial Metals

Mount Milligan

Thompson Creek Metals

New Afton

New Gold Blackwater

New Gold

Exploration

DECISION

TO PROCEED

Year 1 Year 2 Year 5 Year 6 Year 7

PEA

PFS DECISION TO

PROCEED

FEASIBILITY STUDY

DECISION TO

PROCEED

Year 3 Year 4

EA SUBMISSION PREPARATION

DETAILED ENGINEERING & PROCUREMENT

EA REVIEW & APPROVAL

MINES AC PERMIT

CONSTRUCTION PERMITS AVAILABLE

CONSTRUCTION

COMMISSIONING

ADVANCED EXPLORATION

EXPLORATION

Operations & Closure

OPERATIONS

ABORIGINAL & STAKEHOLDER CONSULTATION

OPERATIONS

Mining Project Timeline

CONSTRUCTION PERMITS

OPERATIONS PERMITS

6

Complex Interactions

Exploration

DECISION

TO PROCEED


PEA

PFS DECISION TO

PROCEED

FEASIBILITY STUDY

DECISION TO

PROCEED

Year 3 Year 4




MINES AC PERMIT


CONSTRUCTION

COMMISSIONING


EXPLORATION


OPERATIONS


OPERATIONS

Exploration & Initial Studies


OPERATIONS PERMITS

8

► Challenges

► Ability to influence project

► Understanding First Nations interests is important

► Understand environmental constraints

► Generate as many options as possible

► Mineral processing technology

► Tailings concepts

Exploration & Initial Studies

► Lessons

► Use experienced people

► Look to previous projects

Exploration

DECISION

TO PROCEED


PEA

PFS DECISION TO

PROCEED

FEASIBILITY STUDY

DECISION TO

PROCEED

Year 3 Year 4




MINES AC PERMIT


CONSTRUCTION

COMMISSIONING


EXPLORATION


OPERATIONS


OPERATIONS

Feasibility Study


OPERATIONS PERMITS

10

► Challenges

► Balance cost of study & detail

► Transition to detailed execution

► Critical path equipment

► Financing

Feasibility Study

► Lessons

► Know your goal

► Establish project work breakdown

structure during the study and

stick with through execution

► Move critical path purchases into

the feasibility study

► Appropriate cancellation terms

► Down payment to hold place

► Freeze design to provide greater

certainty

11

Exploration & Studies

Blackwater

Exploration

DECISION

TO PROCEED


PEA

PFS DECISION TO

PROCEED

FEASIBILITY STUDY

DECISION TO

PROCEED

Year 3 Year 4




MINES AC PERMIT


CONSTRUCTION

COMMISSIONING


EXPLORATION


OPERATIONS


OPERATIONS

Environmental Application Preparation


OPERATIONS PERMITS

Environmental Assessment Process

► Purpose is to:

► Provide forum for public and First Nations input

► Identify key effects on natural and human environments

► Identify when and where mitigation is necessary

► Identify uncertainties and risks

► Improve the Project

► Three Options

► Coordinated: Two assessments; two decisions

► Substitution: One Assessment; two decisions

► Equivalence: One assessment; one decision

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Determine

Scope &

Process for

Review

Application

Information

Requirements

Application

Prepared &

Submitted

Application

Evaluated for

Completenes

s

Submission

Application / EIS

Applicatio

n Review

Assessmen

t Report

ED

Referral to

Ministers

Project

Decision by

Ministers

Certificate issued with

set conditions – Project

authorized to proceed

to permitting

• Monitoring,

• Compliance

• Enforcement

Further

Assessment

Required

Certificate

Refused –

Project cannot

proceed

Project

Description:

Determinatio

n that project

is reviewable Ministers may consider

any other matters

relevant to public

interest Approved

Not

Approved

Wor king Group Review

P u b l i c & F i r s t N a t i o n C o n s u l t a t i o n

P r e - A p p l i c a t i o n S t a g e ( n o

t i m e l i n e )

Public

Comment

Period

Public

Comment

Period 30 days

A p p l i c a t i o n R e v i e w S t a g e ( 1 8 0 d a y s )

45 days

F e d e r a l E A P r o c e s s

Provinc ia l EA Process

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Challenges

► Multiple reviews by multiple

parties

► First Nations

► CEAA

► BC EAO

► federal departments

► provincial ministries

► other stakeholders

► No time limit or “version” limit!

► Late revisions can require

updating of EA right up until

submission

Lessons Learned

► Be vigilant: the AIR is not the EA

► Use simple, non-technical

language in documents

► Provide clear, direct responses

to comments

► Use “tracking sheets” to

document responses and

changes to AIR

Challenge #1: Application Information Requirements

Challenge #2: Preparing the EA

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17

Challenges

► Communication between

engineering and environmental

teams

► Managing mitigation measures

proposed by Discipline Leads

► Multi-year baseline data

collection required for many

disciplines

Lessons Learned

► Internal workshops

► Water

► Air

► Terrestrial

► Human

► Bi-weekly team conference calls

► Formal technical and financial

review of all mitigation

► Identify long-lead time

disciplines and get started early

Challenge #2: Preparing the EA Application

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Challenges

► EAO currently managing 38

major project reviews

► 8 LNG

► 8 hydro projects (includes Site C)

► 6 metal mines

► 13 coal mines/gravel quarries

► 3 other

► Government cut-backs have

reduced experienced staff

► Similar cuts in federal staff

► 5 DFO staff for Mining Projects

► No regional habitat biologists

Lessons Learned

► Facilitate the regulators work

► Greater client-driven

consultation increases

regulatory comfort

► Traceable, accountable,

reproducible

process/documentation

Challenge #3: Agency capacity

► Zero discharge facility during construction/operations/closure

► Footprint concentrated in King Richard Creek watershed

► Elimination of cyanide from ore processing

► Powerline corridor followed existing Right of Ways

► Water Supply Pond moved out of Rainbow Creek

► Water Supply Pond to be filled over 4 years instead of one

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Mount Milligan Example

Exploration

DECISION

TO PROCEED


PEA

PFS DECISION TO

PROCEED

FEASIBILITY STUDY

DECISION TO

PROCEED

Year 3 Year 4




MINES AC PERMIT


CONSTRUCTION

COMMISSIONING


EXPLORATION


OPERATIONS


OPERATIONS

Permitting


OPERATIONS PERMITS

Provincial Permit Requirements

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1

2

1

1

1

2

1

3

1

1

2

1

6

4

3

2

Health Act

Drinking Water Protection Act

Motor Vehicles Act

Transportation Act

Wildlife Act

Wildfire Act

Mineral Tenure Act

Heritage Conservation Act

Health, Safety and Reclamation Code

Parks Act

Forest Practices Code Act

Forest Act

Environment Management Act

Land Act

Water Act

Mines Act

Federal Permit Requirements

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Enabling

Legislation

Authorization or Permit Responsible Agency

Fisheries Act Section 35(2) Authorization Fisheries and Oceans Canada

Schedule 2 Amendment of Metal Mine

Effluent Regulation

Environment Canada

Navigation

Protection Act

Order in Council exemption under

section 24

Transport Canada

Migratory Birds

Convention Act

Damage or Danger to Migratory Birds

Permit

Environment Canada

Explosives Act Licence Under Section 7(1)(a) Natural Resources Canada

Transportation of

Dangerous Goods

Act

Transportation of Dangerous Goods

Permit

Transport Canada

Radio

Communication

Act

Licence Industry Canada

23

Challenges

► Concurrent permitting requires

detailed engineering before EA

approval

► Permitting after Project

approval adds about 1 year

► “One Project: One Process” in

BC requires public consultation

of permits all at once

► All permits issued all at once

Lessons Learned

► Concurrent permitting not

recommended for complex or

controversial projects

► Speed up process by providing

“drafts” for review

Permitting Process

Fisheries Act Permits

Fisheries Act

Metal Mine Effluent Regulation

24

Fisheries Act

► Amended in 2013

► Shift in focus from protection of habitat to protection of fisheries

► Section 35 of the “old” Fisheries Act “prohibits the harmful alteration,

disruption, or destruction (HADD) of fish habitat in Canada”

► Section 35 now “prohibits any work, undertaking or activity that

results in serious harm to fish that are part of a commercial,

recreational or Aboriginal fishery, or to fish that support such a

fishery

► Unavoidable “losses” require “offsetting” to the satisfaction of DFO

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Metal Mine Effluent Regulation

► Regulation under the Fisheries Act

► Allows the “deposit of deleterious substances” from metal mines

into “natural water bodies frequented by fish”

► Requires a plan to “offset the loss of fish habitat resulting from the

deposit”

► Minister of Environment designates the natural water body as a

“Tailings Impoundment Area” on recommendation from DFO

► Designation MUST come before Fisheries Act authorization

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27

Opportunities

► Potentially fewer authorizations

► Other government entities may

issue authorizations in future

► Greater options for offsetting

► Culvert replacements

► Hatcheries

► Fertilization

► Barren lakes

Challenges

► Proving no fishery present

► Proving no fish present that

support fishery

► Quantifying fish productivity

► No precedents or court

decisions yet

Fisheries Act

► Compensating for >120,000 m2

of rainbow trout habitat

► 17 original offsetting concepts

included with EA

► 4 iterations before final version

► Offset projects include:

► 3 off-channel ponds

► Large Woody Debris structures

► Culvert replacements

► Spawning channel

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The Mount Milligan Experience

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Challenges

► Staff turn-over at DFO

► Policy encourages offsets in

the Rainbow Creek watershed

► DFO wants “detailed” plans

with EA Application

► First new metal mine approved

in BC in 20 years

Lessons Learned

► Consult with regulators early

and often

► Keep good meeting minutes

► Site visits are critical

► Focus on options supported by

First Nations and local

stakeholders

► Put together a multi-disciplinary

team at the start

► Anticipate construction and

monitoring costs

The Mount Milligan Experience

Exploration

DECISION

TO PROCEED


PEA

PFS DECISION TO

PROCEED

FEASIBILITY STUDY

DECISION TO

PROCEED

Year 3 Year 4




MINES AC PERMIT


CONSTRUCTION

COMMISSIONING


EXPLORATION


OPERATIONS


OPERATIONS

Detailed Engineering & Procurement


OPERATIONS PERMITS

31

► Challenges

► High cost of housing site labour

► Bulk quantity growth

► Cash flow management

► Remote locations

► Support transition to operations


► Lessons

► Consider modularization

► Understand the control budget

and stick to it

► Timing of purchase and

fabrication

► Options for sustaining capital

► Careful planning for shipping

windows, logistics routing

► Work with local supplier reps

32


Brucejack

Exploration

DECISION

TO PROCEED


PEA

PFS DECISION TO

PROCEED

FEASIBILITY STUDY

DECISION TO

PROCEED

Year 3 Year 4




MINES AC PERMIT


CONSTRUCTION

COMMISSIONING


EXPLORATION


OPERATIONS


OPERATIONS

Construction & Beyond


OPERATIONS PERMITS

34

► Challenges

► Workforce sourcing

► Remote locations

► Weather

► Replacement materials

► Camp required for workforce

► Attraction & retention

► Cost control


► Lessons

► Smaller contracts

► Enable local contractor participation

► Reduces out-of-province travel

► Training & development legacy

► Seasonal awareness & planning

► Free issue materials to contractors

► Balance schedule peaks vs. camp size

► Accommodation quality & strong management

► Work the plan

35


Mt. Milligan

Exploration

DECISION

TO PROCEED


PEA

PFS DECISION TO

PROCEED

FEASIBILITY STUDY

DECISION TO

PROCEED

Year 3 Year 4




MINES AC PERMIT


CONSTRUCTION

COMMISSIONING


EXPLORATION


OPERATIONS


OPERATIONS

Aboriginal & Stakeholder Consultation


OPERATIONS PERMITS

► Assisting the client to understand

their obligations

► Informing the client of

opportunities and challenges that

Aboriginal consultation can

present throughout phases

► Working with the client, either

leading or supporting

► Drawing from experience with

other projects and communities

37

Client Consultation

Consultation Opportunities and Challenges

► Community input may lead to:

► Better informed EAs through information sharing

► Changed design or operations to improve the project and reduce negative

effects / enhance positive effects

► Increased community awareness and understanding of the project

► Reduced risk of misinformation

► Improved relationships between all parties

38

Consultation Opportunities and Challenges

► Potential challenges may include:

► Broad community outreach

► Inadequate resources (staff, time, funding) to respond to the project on

behalf of community

► Excessive demands on community resources and consultation fatigue

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► Canada has statutory,

contractual and common law

obligations to consult with

Aboriginal groups

► Process leading to a decision on

whether to consult includes a

consideration of all of these

factors and their interplay

► Confusion about what is

delegated

40

Government Obligations

41

► Training Aboriginal members to

assist with project development

can:

► Increase community level of

awareness and understanding

about the Project

► Contribute to development of a

work force if the Project is

successfully developed

► Facilitate the success of the

Project

Training

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► Spectrum of business capacities

across communities

► Challenges/opportunities with

Projects that cross multiple

territories

Support for field activities as part

of EA process

► Opportunities to support field

research:

► Role-specific Sub-Contracting

Agreement

► Supports community

participation, capacity-building

Aboriginal Business Development

Benefits Agreements

► No law requiring IBAs, but Supreme Court has affirmed there is a duty to consult with Aboriginal groups who may be affected

► While Aboriginal groups do not have veto, their support can affect the rate of project approval

► IBAs usually contain:

► Labour provisions

► Economic development provisions

► Community provisions

► Environment provisions

► Financial provisions

► Commercial provisions

► Currently confidential, but Extractive Sector Transparency Measures Act (ESTMA)

43

Conclusion

► Long complicated process

► A large part of the process is out of the proponents control

► Consultation is critical throughout all phases of the project

► Communication, coordination & collaboration

44

Thank You

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