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Proposed Quintette Mine Re-openingFebruary 2011
Location
• The Quintette Property is located in the Peace River Coal Field of northeast British Columbia
• Approximately 20km south of the town of Tumbler Ridge
2
PACIFIC
OCEAN
Calgary
Edmonton
CNR
Prince
George
CNR
CPR
U.S.A.
British Columbia Alberta
CNR
Sask
Prince
Rupert`
Vancouver
QQuuiinntteettttee
DDiissttaannccee ttoo ppoorrtt ~~ 11005500 kkmm
History
• Quintette Mine was approved under the Guidelines for Coal Development in 1982
• 1982 Mine Plan was comprised of three components:
– Sheriff (Wolverine and Mesa pits)
– Frame (Shikano Pit)– Babcock (Windy
and Window pits)
• Mining of Windy Pit was authorized under Mines Act Permit C-156 in 1997 and continued until closure in 2000
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Current Plans
• Teck is exploring the feasibility of re-opening the Quintette Mine:
– Windy Pit– Window Pit
• Teck will maximize the use of existing infrastructure:
– Rejuvenate processing plant
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Quintette Plant Site
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Mining
• All coal will be mined by open pit operations• Utilize existing infrastructure• Anticipated 15-17 year mine life • Average production rate of 3.0-3.5 Mmtcc/year• Feasibility study is in progress and anticipated production
rates and waste spoil volumes are being refined
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Mine Plan Comparison(Production Capacity)
• The 2010 Mine Plan will be smaller than that which was approved in 1982
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Mmtcc: Million metric tonnes clean coalMbcm: Million bench cubic metres
2010 Mine Plan
Waste (Mbcm) 650
Clean Coal (Mmtcc) 45-50
Regulatory: British Columbia Environmental Assessment Act (BC EAA)
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Requirement for approval under BC EAA not required because:• Project is not a reviewable modification of an existing mine:
– Windy and Window Pits were approved by Environmental Land Use Committee in 1982 under Guidelines for Coal Development
– Windy and Window pits together will create ~400 ha of new disturbance, which is below BC EAA thresholds of:
• More than 750 ha of new disturbance• More than 50% of land that was previously permitted for disturbance
(3,500 ha)
• Project will utilize existing, permitted infrastructure (processing plant, tailings pond, sedimentation ponds, roads, power lines, mine office buildings, etc.)
Regulatory: Canadian Environmental Assessment Agency (CEAA)
Requirements for approval under CEAA being investigated:
• No federal funds or federal lands involved
• DFO will be engaged to clarify authorizations regarding fish and fish habitat
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Regulatory: Mines Act
• Mines Act Permit C-156, authorizing works and reclamation plan, was amended to include Windy Pit in 1997 and remains in good standing
• Re-opening Windy Pit and developing Window Pit requires an amendment of Mines Act Permit C-156
• Teck is working with the Ministry of Natural Resource Operations to ensure that the Regional Mine Development Review Process is robust and meets the needs and expectations of First Nations, government agencies and communities
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Key Issues
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Environmental
First Nations Interests
and Treaty Rights
Social and Economic
Concerns of Public, First Nations and Communities
Rights and Activities of
Other Tenure Holders
Environmental:• Development of Management Plans
for the protection of Mountain Caribou, Goats and Grizzly Bears
• Protection of Water Quality, Aquatic Resources, Fish and Waterfowl through mine planning and design and the implementation of Selenium, Explosives and Water Management Plans
• Cumulative Effects• Prevention of ML/ARD• Reclamation
Community Engagement
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Environmental
First Nations Interests
and Treaty Rights
Social and Economic
Concerns of Public, First Nations and Communities
Rights and Activities of
Other Tenure Holders
First Nations communities:• Building a long-term relationship
based on: – Respect for community needs,
treaty rights and traditional knowledge
– Sharing of information and resources (capacity building)
• Working together to:– Identify potential environmental,
social and economic effects – Develop workable solutions to
avoid or mitigate potential effects– Identify cooperative approaches to
articulate the maximum amount of project benefits
Update on First Nation and Community Engagement
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• Ray Proulx hired as a Community Liaison for Quintette Project • Summary of engagement activities to date:
– Introductory meetings July – Sept. 2010 with District of Tumbler Ridge, 5 First Nations and one Metis community.
– Additional discussions occurred between Sept. and Nov. 2010– A draft Working Protocol Agreement with McLeod Lake Indian
Band is under development– Teck has entered into a service agreement with the Saulteau
First Nations for the completion of a Culture and Traditions Study
– Permitting review discussions began mid-February 2011
Quintette Proposed Timeline
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2010• Engagement• Geotechnical drilling• Mine planning• Environmental baseline studies
Mid 2011• Feasibility study
completed• Initiate
preparation of Application to amend Mines Act Permit C-156
• Engagement
Q4 2011• Permitting
completed• Board gives
Project approval• Construction
begins in the Plant
• Engagement
2013• Mining
potentially begins in Windy Pit
• Engagement
Summary
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Project Features:• Reduced footprint of mine pits and waste spoils compared to
1982 Project• Maximize use of existing infrastructure• Conventional truck and shovel operation• Production of 45 - 50 Mmtcc over a 15+ year mine life, starting
in 2013• Capital costs estimated to be <$500 million• Approximately 350 - 400 employees required
Summary (cont'd)
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Social Requirements:• Community engagement and dialogue• Developing a better mine that will:
• be valued by the communities• adhere to Teck’s corporate principles and commitments
Regulatory Requirements:• Amend Mines Act Permit C-156• Amend/obtain Environmental Management Act Permits (discharges
from tailings pond, sediment ponds and processing plant)
Next Steps
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• Continue engagement with First Nations and communities
• Meet with Department of Fisheries and Oceans
• Meet with Regional Mine Development Review Committee
• Initiate Review of Application to Amend Mines Act Permit C-156