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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
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
Exploration & Initial Studies
CONSTRUCTION PERMITS
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
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
Feasibility Study
CONSTRUCTION PERMITS
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
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
Environmental Application Preparation
CONSTRUCTION PERMITS
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
13
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
15
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
16
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
18
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
19
Mount Milligan Example
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
Permitting
CONSTRUCTION PERMITS
OPERATIONS PERMITS
Provincial Permit Requirements
21
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
22
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
25
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
26
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
28
The Mount Milligan Experience
29
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
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
Detailed Engineering & Procurement
CONSTRUCTION PERMITS
OPERATIONS PERMITS
31
► Challenges
► High cost of housing site labour
► Bulk quantity growth
► Cash flow management
► Remote locations
► Support transition to operations
Detailed Engineering & Procurement
► 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
Detailed Engineering & Procurement
Brucejack
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
Construction & Beyond
CONSTRUCTION PERMITS
OPERATIONS PERMITS
34
► Challenges
► Workforce sourcing
► Remote locations
► Weather
► Replacement materials
► Camp required for workforce
► Attraction & retention
► Cost control
Construction & Beyond
► 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
Construction & Beyond
Mt. Milligan
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
Aboriginal & Stakeholder Consultation
CONSTRUCTION PERMITS
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
39
► 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
42
► 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
45