KGHM Ajax Alternative Means summary

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Plain LanguageSummary

17.4 Alternative Means of

Carrying out the Project


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Copyright 2016 KGHM Ajax Mining Inc. This document may not be reproduced without the consent of KGHM Ajax Mining Inc. This document is a summary of its corresponding chapter in the Application/EIS. It

may not contain all of the information in the chapter in the Application/EIS and reference should be made to the complete document for full information about the proposed Ajax Project. This summary may

contain errors or omissions and may be corrected or updated by KGHM Ajax Mining Inc. from time to time.

Paper copies distributed by KGHM Ajax Mining Inc. have been printed on paper with recycled content.

2.7 Economic and Social Benets of the Project

3.17 Closure and Reclamation

4.1 - 4.5 Assessment Process

4.6 & 4.7 Information Distribution and Consultation

Public and Agency Information Distribution

and Consultation

5.0 Environmental Assessment Methodology

6.1 Greenhouse Gas Eects Assessment

6.2 Geology, Landforms, and Soils Assessment

6.3 Surface Water Quality Eects Assessment

6.4 Surface Water Quantity Eects Assessment

6.5 Groundwater Quality Eects Assessment

6.6 Groundwater Quantity Eects Assessment

6.7 Fish and Fish Habitat Eects Assessment

6.8 Rare Plants Eects Assessment

6.9 Rare and Sensitive Ecological CommunitiesEects Assessment

6.10 Grasslands Eects Assessment

6.11 Terrestrial Invertebrates Eects Assessment

6.12 Amphibians Eects Assessment

6.13 Reptiles Eects Assessment

6.14 Migratory Birds Eects Assessment

6.15 Raptors Eects Assessment

6.16 Non-Migratory Game Birds Eects Assessment

6.17 Mammals Eects Assessment

7.1 Economic Growth Eects Assessment

7.2 Labour Force, Employment, and TrainingEects Assessment

7.3 Income Eects Assessment

7.4 Business Eects Assessment

7.5 Property Values Assessment

7.6 Economic Diversication Eects Assessment

8.1 Infrastructure, Public Facilities, and Services

Assessment

8.2 Dark Sky Eects Assessment

8.3 Visual Impact and Aesthetic Features

Eects Assessment

8.4 Land and Resource Use Assessment

8.5 Current Use of Lands and Resources for

Traditional Purposes Assessment

8.6 Outdoor Recreation Eects Assessment

8.7 Jacko Lake Eects Assessment

9.1 Archaeological Sites Assessment

9.2 Assessment of Eects on Aboriginal and

Non-Aboriginal Heritage Sites

10.1 Air Quality Eects Assessment

10.2 Domestic Water Quality Eects Assessment

10.3 Country Foods Eects Assessment

10.4 Human Health Eects Assessment

10.5 Noise and Vibration Eects Assessment

10.6 Healthy Living and Health Education

Eects Assessment

10.7 Community Health and Well-Being

Eects Assessment

12 - 16 Part C Aboriginal Groups InformationRequirements

17.4 Alternative Means of Carrying Out the Project

17.5 Eects of the Environment on the Project

17.6 Accidents and Malfunctions

Overview

The following chapters of the KGHM Ajax Application/EIS have been summarized in

plain language. The full Application/EIS can be viewed online at www.ajaxmine.ca.


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17.4 Alternative Means of

Carrying out the Project

1. Introduction

Alternative Means of Carrying Out the Project(Section 17.4 of Chapter 17 of the

Application/EIS) describes the various options, or alternatives, that KGHM Ajax Mining

Inc. (KAM) considered for building and operating the Project. The chapter also explains

why certain alternatives were selected over others. It is a federal government require-

ment that the Application/EIS include this information.

Generally, mining projects are planned and developed over a relatively long period.

Mine designs evolve over the course of planning and are reviewed, optimized, and

changed many times before construction begins. Engineers and scientists study

in detail many dierent aspects of mine projects, such as the size of the mine, the

mining method, how to crush and process the ore and manage waste rock and tail-

ings, and so on.

The purpose of considering alternatives is to arrive at a project design that has the

most environmental, cultural, and socioeconomic benets over other alternatives,

while still being technically and economically viable. These reviews are based on the

belief that, while a particular project design might have acceptable environmental

benets and eects, there may be alternatives that would improve these benets

even more. These reviews sometimes lead to lengthy and detailed technical and envi-

ronmental examinations of dierent alternatives.

For many years, the Ajax Project has undergone extensive study regarding dier-

ent options for the Project. Since acquiring the Project, KAM accelerated its review

of alternatives. While reviewing these alternatives, KAM considered the following

questions:

"Can the option be accomplished?"

The rst and most important question is whether any given option is even possible.

Some options may appear to be good ideas, but are actually impossible to achieve, for

technical reasons. Options that are technically not feasible are ruled out.

"Is the option economically feasible?"

Some options may be technically feasible, but the result would be too costly for the

Project to bear. In some instances, options may reduce the economic benet that the

Project would bring to the local community, the province, and the country. Options


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that make the Project uneconomical over the long term are also ruled out.

If the alternative in question is both technically and economically feasible, KAM then

evaluated the alternative to characterize the environmental, cultural, and socio-

economic eects that it may have on the environment. KAM determined whetherthere were any available options to relieve (or mitigate) potential negative eects

and enhance positive benets. For each alternative, KAM rated its impact on both

human and natural environments, labeling it with the terms Preferred, Acceptable,

Challenging, or Unacceptable.

While KAM was consulting the public, Aboriginal groups, and the government regard-

ing the Project and its potential environmental eects, it also collected external

feedback to inform the choice of various alternatives. Information Distribution and

Consultationand Public and Agency Information Distribution and Consultation(Sections

4.6 and 4.7 of Chapter 4 of the Application/EIS) discuss how the Project collected

external feedback that was considered in the alternatives assessment.

f The Reviewed Alternatives

KAM included reviews of 17 alternatives in the Application/EIS. These alternatives

ranged from the mining method, the rate which ore is processed, and details relat-

ed to power supply and road access. However, four major alternatives in particular

played a signicant role in substantially modifying the design of the Project. The

alternatives were selected as a direct result of requests from government agencies

and feedback that KAM received from the community and Aboriginal groups, as well

as input from a technical review of the Mount Polley tailings incident in August 2014.

The Mount Polley Project in the Cariboo region of British Columbia saw a breach

of its tailings facility in 2014 that ooded nearby areas and caused public concern

regarding potential environmental eects. Mines in British Columbia have been

subject to new regulations covering similar types of tailings dams since the incident.

The four alternatives considered for the Ajax Project were:

A substantial change in the layout of the Project, from Ajax North to Ajax South;

Choosing the best technology and location for the tailings storage facility;

Design considerations for the closure of the tailings storage facility; and

Reducing the amount the open pit incurs on Jacko Lake and Peterson Creek.

f Re-Arrangement of Project Facilities: Ajax North to

Ajax South

The Project design that was developed in 2012 involved locating some components,

facilities, and buildings relatively close to Kamloops and the Coquihalla Highway

(Highway 5). During a period of extensive public consultation, KAM realized that

the level of public concern about the Project designknown at that time as Ajax


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The initial plan for the tailings storage facility involved locating the facility next to

Highway 5, and using a method called modied dry stack to treat the tailings before

storage. Modied dry stack technology involves removing and recycling most ofthe

water from the tailingsto produce a relatively dry substanceabout 80 per cent

solid, somewhat similar to damp soil. Dry stacking is much more suitable for smaller

operations, since all tailings have to be passed through a large ltration plant and

placed on a storage facility using trucks or conveyors and other machinery to spread

and compact the material. For this reason, dry stacking has been generally limited to

projects that process less than one-third the amount of material planned for Ajax. In

fact, dry stacking has never been used in a project the size of Ajax.

For this reasonalong with the high costs associated with dry stackingKAM began

to review its initial plan several years ago, and ultimately decided on whats known

as a thickened tailings disposal technology. This technology also involves removing

some of the water in the tailings, to produce a substance that is about 60 per cent

solid, but can still be pumped to the storage facility. This method reduces the watercontent of the tailings and the amount stored in the TSF making it safer for people

and the environment, and more suitable for the Ajax Project.

As part of this decision, KAM made two other important decisions. It decided to

re-locate the entire tailings storage facility away from Highway 5 and Kamloops,

and south of the open pit. KAM also decided that it will use mine rock generated

on site to bolster the facility known as buttressing. The rock will be placed adja-

cent to and below the facility embankments. This signicantly reduces the risk of

a loss of containment from the facility. In fact, the mine rock buttresses would

increase the strength of the tailings storage facility far beyond the minimum safety

requirements.

The incident at Mount Polley in August 2014 prompted KAM to re-evaluate its tail-

ings facility location and the technology used for tailings disposal approach. KAM

wanted to make sure that its approach to tailings management was indeed as safe

and practical as possible.

After another extensive review of tailings disposal methods, KAM ultimately conclud-

ed that its decision to process tailings into a conventional slurrycombined with its

decision to re-locate the facility, use thickened tailings disposal technology and sig-

nicantly strengthen its embankments with mine rockstill made the best economic

and environmental sense. The benets of this option include:

Requires less make-up water resulting in a smaller volume of water stored in

an impoundment, less freshwater taken from Kamloops Lake and lower pump-

ing costs.

Lower risk of breach failure conventional slurrybecause of the lower water

content. The signicantly smaller surface pond means there is also less water

available to transport tailings material. The probability of a breach failure is

signicantly reduced by the mine rock buttressing..

Less impounded water and higher initial density reduces seepage.


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Improved air quality. An additive to thickened tailings binds ne particles to

coarser particles, which results in less ne particulate becoming airborne dust.

Lower visual impact as limited lighting is required for night-time operation of

the facility (versus ltered dry stack tailings).

Reduced challenges and costs associated with placement of a nal dry cover

(versus unthickened) during reclamation and closure.

Proven technology both in general and at high production rates similar to the

65,000 tonnes per day proposed for the Ajax Project.

f Tailings Storage Facility Closure

KAM evaluated a number of alternatives for how to design the tailings storage facility

for closure, along with a method for routing excess water away from the facility over

the long term. KAM determined that the best way to close the facility is to pump

water in the tailings storage facility into the open pit, and then to cover the remaining

solids with rock and soil. The site of the tailings storage facility would be covered with

rock, clay and nally soil, to minimize the amount of water that seeps into it. The soil

will also allow grasses and other native plants to grow at the site, enhancing habitat

for wildlife and potential grazing locations for cattle. Water would be directed away

from the site so that it drains water o the soil cover towards the south of the facil-

ity. If water from the tailings storage facility is not suitable to be released into the

surrounding environment, it will be pumped into the open pit unitl it reaches water

quality guidelines. If the water meets guidelines that allow it to be discharged into the

surrounding environment, KAM will build a channel to connect the site of the tailings

storage facility with Humphrey Creek.

fJacko Lake and Peterson Creek

KAM reviewed various designs for the open pit. The most economically viable pit

design pushed into Jacko Lake and Peterson Creek considerably, to reach high quality

ore. However, KAM has been sensitive to Aboriginal concerns regarding Jacko Lake

and Peterson Creek, who use these areas for many traditional purposes such as plant

gathering and shing and for whom the area has cultural signicance. Members of

the public also value Jacko Lake as a recreation and shing area.

KAM considered three alternative ways of reducing the amount that the pit intruded

into the lake and creek. As a result of its review process, KAM adjusted the pit bound-

aries to signicantly reduce this intrusion into the lake. KAM also evaluated a number

of ways of maintaining the ow of water into Peterson Creek, but was unable to nd

a way to develop the pit that didnt aect at least a portion of Peterson Creek. Ulti-

mately, KAM selected a pumping system to route water around the north rim of the

pit, which would then ow into Peterson Creek downstream of the mine facilities.

After the mine is closed, this pumping system would be removed and the free ow of

water into Peterson Creek would resume.


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f Other Reviewed Alternatives and Design Changes

KAM reviewed a wide range of other design alternatives, to determine if it would be

possible to further reduce impact on the environment, while maintaining operating

eciency. Some of the reviews and changes include:

Relocation of some of the mine rock storage areas and a substantial reduction in

the land area that mine rock occupies;

A re-evaluation of how to use, re-use, and recycle water for Project operations;

A review of how best to transport the nal product from the mine site to the port;

A review of how best to convert the Project site to productive, end-of-mine-life

land uses an ongoing basis;

A review of the design and location of access roads;

A review of various alternatives for producing and storing explosives; and

A review of various ways to supply power to the Project (including natural gas,

diesel, wind, and solar alternatives).


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Access the Summaries

Key sections of the KGHM Ajax Environmental Assessment have

been summarized and made available to the public:

f View the Summaries Online

ajaxmine.ca

f Request a Copy

Request copies of individual chapters:

[email protected]

f View a Copy

The following locations have a copy of each Plain Language

Summary available to read during their business hours:

KGHM Ajax

Head Ofce

124 Seymour Street

Kamloops, BC

TNRD Library

Downtown Kamloops

100-465 Victoria Street

Kamloops, BC

City of Kamloops

City Hall

7 Victoria Street West

Kamloops, BC

TNRD Library

North Kamloops

693 Tranquille Road

Kamloops, BC

Documents

KGHM Ajax Alternative Means summary