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PROPOSED EXTENSION OF THE CANADIAN MALARTIC GOLD MINE
BY MINE CANADIAN MALARTIC
SUMMARY DOCUMENT
September 6, 2018
Ministère de l’Énergie et des Ressources naturelles
Produced by
Ministère de l’Énergie et des Ressources naturelles
Direction générale des mandats stratégiques
Bureau de coordination des projets majeurs et d’analyse des impacts économiques
5700, 4e Avenue Ouest, C-422
Québec City (Québec) G1H 6R1
Contributors
Direction générale de la gestion du milieu minier
Direction générale du développement de l’industrie minière
Direction générale du réseau régional
Distribution
This publication is available online only, at:
mern.gouv.qc.ca/ministere/projets-majeurs
© Gouvernement du Québec
Ministère de l’Énergie et des Ressources naturelles
Legal Deposit – Bibliothèque et Archives nationales du Québec, 2018
ISBN 978-2-550-82340-7 (PDF)
Table of Contents 1. Background ............................................................................................................................................ - 2 -
2. General Information ....................................................................................................................................3
3. Project Description ......................................................................................................................................3
4. Highlights ....................................................................................................................................................3
5. Mine Operations .........................................................................................................................................5
6. Status of Authorization Process .................................................................................................................6
7. Potential Economic Spin-Offs .....................................................................................................................8
8. Public Participation .................................................................................................................................. 10
9. Aboriginal Communities ........................................................................................................................... 11
10. Plans and Rights Issued on the Host Territory ........................................................................................ 11
11. Rehabilitation and Restoration Information ............................................................................................. 12
12. General Information on Use and Market ................................................................................................. 13
13. Documentation ......................................................................................................................................... 14
14. Glossary ................................................................................................................................................... 15
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1. Background
In the social acceptability guidelines published by the Ministère de l’Énergie et des Ressources naturelles (MERN), one of the actions proposed in response to public requests is to publish information on major projects. The MERN has implemented this measure by preparing a series of summary documents containing information on major development projects involving public land, energy or mineral resources. The purpose of publishing this information is to:
■ make available updated information on major projects, taken from public sources, to ensure that local actors have a better grasp of the issues and are able to take part in a more informed way in the public participation and project monitoring processes;
■ bring together all relevant ministerial information on major projects in a single, easily consulted location.
The published documents do not contain confidential information. In addition, the information provided in the summary documents should not be construed as being an opinion or recommendation on the part of the MERN.
Certain specialized terms, shown in blue in the text, are defined in a glossary in Section 14. Unless otherwise indicated, all amounts shown in this document are in Canadian dollars.
For further information on the project described in this document, please contact a MERN representative. Contact information and office hours are shown below.
GENERAL INFORMATION
1 866 248-6936
1 866 CITOYEN
(toll-free in Canada and the United States)
Fax: 418 644-6513
Office hours
Monday, Tuesday, Thursday and Friday: 8:30 a.m. to 4:30 p.m.
Wednesday: 10 a.m. to 4:30 p.m.
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2. General Information
Type of information Description
Promoter Mine Canadian Malartic (MCM)
Type of project Extension of the Canadian Malartic gold mine and deviation of Highway 117 at the eastern entrance of the Town of Malartic
Project name Malartic Extension project
Promoter’s website www.canadianmalartic.com
Administrative region Abitibi-Témiscamingue
Regional county municipality (RCM) La Vallée-de-l’Or
3. Project Description
Description
The Canadian Malartic Gold Mine project involves extending the Canadian Malartic pit in order to mine the Barnat deposit and a more easterly satellite pit, the Jeffrey pit, thereby extending the mine’s life by six years and preserving the mine’s current jobs. The project also requires deviation of a stretch of Highway 117, to avoid the pit extension.
The Malartic Extension project is subject to the environmental impact assessment and review procedure (section 31.5 of the Environment Quality Act, under the authority of the Ministère du Développement durable, de l’Environnement et de la Lutte contre les changements climatiques (MDDELCC)).
Accordingly, the promoter produced an environmental impact study and took part in the public consultation organized by the Bureau d’audiences publiques sur l’environnement (BAPE) in the summer of 2016. The BAPE’s report was published in October 2016 and the Québec Government enacted an order-in-council to issue a certificate of authorization in April 2017.
4. Highlights
Mine Operations
Type of operation Open-pit mine
Estimated yearly production Maintenance of the current level of production: 20 million tons of ore
Start and duration of mining operations
Jeffrey pit: Planned start of operations: 2018; Duration: 2 years. The pit will be filled at the end of 2019.
Malartic Extension: The project will help prolong the mine’s operations until 2028.
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Host Area
Public or private land (domaine1) The project will take place on 70 sites:
47 (67 %) are on public land
13 (19 %) are owned by the promoter
9 (13 %) are owned by the Town of Malartic
1 (1 %) belong to a private owner
70 sites:
50 (71 %) are associated with mining operations
20 (29 %) are associated with the Highway 117 deviation
Rights issued by government departments and agencies
Mine exploration rights (claims), mining rights (mining leases and a mining concession) and land rights issued to operate the current mine (for industrial purposes, waste rock stack and mine tailings site)
Public utility rights
Quad trail rights
Public participation
Information activities organized by the promoter
The promoter has held several public consultations since 2015.
Meetings with local elected representatives, interest groups and members of the general public to present the Malartic Extension project.
Monitoring committee set up by the promoter
Canadian Malartic Discussion and Follow-Up Committee (formerly the Canadian Malartic Monitoring Committee)
https://cescm.ca/
Aboriginal communities
Québec Government consultation of Aboriginal communities
The MDDELCC carried out a consultation with the Algonquin community of Abitibiwinni (Pikogan) as part of the environmental impact assessment and review procedure.
Economic information on the project
Investment value $209 million invested before mining operations begin at the extension: $141 million for development of the extension and $68 million for the Highway 117 deviation. Other investments will take place during mining operations at the extension, in particular to develop the Barnat extension and the Jeffrey pit. Ultimately, these investments may be in excess of $400 million
1 Formerly “tenure”. See the glossary.
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Estimated number of jobs during construction:
Creation and maintenance of roughly 500 direct and indirect jobs, including those required for the Highway 117 deviation.
Estimated number of jobs during operations
Maintenance of roughly 550 employees on the mine site.
Government aid or financial participation
None.
5. Mine Operations
Description
Type of operation, ore to be mined, location and main infrastructures
The Canadian Malartic Gold Mine project involves extending the Canadian Malartic pit in order to mine the Barnat deposit and a more easterly satellite pit, the Jeffrey pit, both located in the territory of the Town of Malartic. The project will maintain the current jobs at the mine and extend the mine’s life.
According to current forecasts, after mining activities have ceased, the Canadian Malartic pit will run mainly along a west-east axis. The pit will be approximately 3,750 metres long and will be no wider than roughly 900 metres. The pit will be stripped in 2018, mined in 2018 and 2019, and should be backfilled with waste rock at the end of 2019.
Since the project involves extending an operating pit, development of the gold deposit will be subject to the same operational phases and have the same features as the current mine. The promoter has no plans to make major changes in mining techniques, nor is there a plan to modify the equipment or the ore processing plant’s capacity.
The existing infrastructures will continue to be used throughout the extension. To store the additional volumes of tailings and waste rock produced by the pit extension. The promoter has planned periodic increases in the height of the embankments around the mine tailings site, and also intends to expand the site eastwards, increasing its size from 460 ha to 619 ha. The waste rock stack will also be extended eastwards over a distance of between 1.5 and 2 km. In addition, the eastern portion of the Canadian Malartic pit may be used to deposit tailings and waste rock from 2022 onwards, once mining operations have finished.
The height of the waste rock stack, currently 70 metres, will be increased by 20 metres, and the maximum depth of tailings in the mine tailings site will be increased from 34 metres to 47 metres. The area of the surface accumulation sites (waste rock and tailings) will be expanded by slightly over 50%. Lastly, the promoter plans to deposit, in the main pit, between 165 and 200 million tons of waste rock and roughly 100 million tons of tailings, produced in the period 2022-2028.
Yearly production and duration of operations
With the project, MCM plans to maintain a constant supply to its processing plant. Some 20 million tons of ore per year will be processed, for an average of 55,000 tons per day (t/d), at least until 2026. The cadence will then be reduced until 2028.
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Description
Type of process
The ore will be processed in the mine’s existing facilities. Power shovels will be used to load the ore into trucks, which will then transport it to the primary crusher. A storage dome with a capacity of 28,000 tons is located close by. The crushed ore is then sent by conveyor to the milling sector of the processing plant, where the milling equipment is located (a pebble mill and three pellet mills), as well as thickener tanks, leaching circuits and gold absorption circuits, electrolysis cells (to plate the gold onto stainless steel wool cathodes), the carbon reactivation circuit and the detoxification unit for the mine tailings solution. The processing plant produces doré bars (ingots containing mostly gold and silver).
The gold concentrate that also contains a certain amount of silver and some impurities, undergoes an initial casting operation at the mine site. The resulting bar is composed of an alloy containing mostly gold and a certain percentage of silver. This type of “unprocessed” bar, the product of initial casting, is known as a doré bar or doré. A doré can weigh up to 25 kg.
6. Status of Authorization Process2
Type of information Description
Date of deposit of the project notice December 11, 2013
Impact assessment Between December 2013 and March 2016, the promoter studied the repercussions associated with its Malartic Extension project.
Public hearings Following the public information and consultation period from April 12 to May 27, 2016, the Minister of Sustainable Development, Environment and the Fight Against Climate Change received requests for a public hearing.
The public hearing was divided into two parts. The BAPE held public information sessions in Malartic in June 2016, and then organized public hearings (July 12 and 13, 2016) at which participants were able to express their opinions of the project. In all, 119 briefs were filed by individuals, groups, organizations and municipalities with an interest in the project.
The documents produced by the promoter, the analyses carried out and the answers to the MDDELCC’s questions can be found on the BAPE website.
Publication of the BAPE report October 13, 2016
Date of Government order-in-council April 12, 2017
Date of amendment to the certificate of authorization
April 12, 2017
2 Authorizations issued by the MDDELCC and the MERN.
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Type of information Description
Rights to be obtained from the MERN The promoter obtained a mining lease for the mine extension on July 28, 2017. The lease requires prior approval of a site restoration plan.
On September 12, 2017, the promoter also obtained authorization (land lease) to use lands in the domain of the State to prolong the use of the various material storage infrastructures for the mine (waste rock and tailings stack, various buildings, etc.). These land leases, which are accessory or complementary to the mining lease, are subject to compliance with all federal and provincial legislation, the related regulations and any municipal by-laws applicable to the activities carried out on the leased land.
Mining lease
Date of lease application November 1, 2010
Date granted July 28, 2017
Conditions Operational conditions relating to the deviation of Highway 117 were included in the mining lease.
http://gestim.mines.gouv.qc.ca/documents/Acte_de_bail_minier_1008_0000032527.pdf
Expiry date July 27, 2037
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7. Potential Economic Spin-Offs
The data presented in this section are estimates produced by the MERN using an economic spin-off calculation model adjusted for the mining industry, as well as data from technical studies carried out by the promoter.
Jobs
According to the model, work on the mine expansion phase will last two years and will create and/or maintain roughly 500 direct and indirect jobs throughout Québec. Roughly half these jobs will be in the region in general and at the mine in particular, or will be indirect jobs created through purchases of equipment and services from suppliers. Many of these suppliers are located in the Val-d’Or region, while others are located in the main urban centres or outside Québec.
The mine expansion operating phase should last six years and will support an average of roughly 1,700 direct and indirect jobs. The spinoffs from the operating phase are similar to those observed in recent years for the existing mine, since the level of production at the mine is not expected to change.
Breakdown of the 500 direct and indirect jobs generated by mine expansion work
Breakdown of the 1,700 direct and indirect jobs supported by mine expansion operations
(average per year for two years) (average per year for six years)
N.B. The data are rounded to the nearest 5 %; the total may therefore not be 100 %. Source: Promoter’s data and MERN estimates, February 2018.
Investments
The investments needed for mine expansion work total approximately $209 million and will be carried out over a two-year period. These investments include deviation of a stretch of Highway 117 and expansion work on the Canadian Malartic pit, in particular to develop the waste rock stack and mine tailings site. Expenses in the operating phase will remain at their current level, i.e. approximately $375 million per year. Most operating expenses will be disbursed in the Abitibi-Témiscamingue region, thanks to the presence of a pool of qualified labour and numerous suppliers and equipment manufacturers.
40 %
10 %10 %
40 %
IN THE REGION (DIRECT)
IN THE REGION (INDIRECT)
OUTSIDE THE REGION (DIRECT)
OUTSIDE THE REGION (INDIRECT)
20 %
35 %15 %
30 %
IN THE REGION (DIRECT)
IN THE REGION (INDIRECT)
OUTSIDE THE REGION (DIRECT)
OUTSIDE THE REGION (INDIRECT)
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Breakdown of investments for the mine construction phase
Breakdown of expenses for the mine operating phase
(in millions of dollars, total over two years) (in millions of dollars, per year for six years)
Source: Promoter’s data and MERN estimates, February 2018.
Government Revenues
The main revenues for the various levels of government total roughly $14 million for the construction
phase and roughly $67 million for the operating phase. They are calculated as follows:
Federal: tax on company profits, income tax on workers’ salaries, sales tax (GST);
Provincial: tax on company profits, income tax on workers’ salaries, sales tax (QST), excluding
mining tax, which is presented separately;
Provincial: minimum mining tax (see diagram footnote for calculation details);
Local: property tax and school tax.
The project would also generate other revenues, such as licence fees and annual payments for leases.
49
160
IN THE ADMINISTRATIVE REGION
OUTSIDE THE REGION
230
145
IN THE ADMINISTRATIVE REGION
OUTSIDE THE REGION
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Main Government Revenues (in millions of dollars)
N. B. The Mining Act provides that every mining company must pay mining tax equal to the higher of a minimum tax calculated on the mine-mouth output value (1% for the first $80 million and 4% for the remainder) or a tax calculated on profits (between 16% and 28% depending on the profit margin). The value shown in this diagram is an estimate of minimum mining tax.
Source: MERN estimate, February 2018.
8. Public Participation
Type of information Description
Information activities organized by the promoter
The promoter met several times with representatives from the Town of Malartic, the municipality of Rivière-Héva and the La Vallée-de-l’Or RCM.
The promoter publishes information about the project on its website and on various social media (Facebook and Twitter).
The promoter sends out a regular information newsletter (e.g. March 2017, July 2017) and a monthly bulletin on expansion work at the Malartic gold mine.
The promoter met with citizens living in the vicinity of the work and maintains regular contacts with them.
Activities organized by the promoter to hear community concerns and expectations
As part of the co-construction process begun by the mine in 2015, the Working Group on Coexistence Issues in Malartic, composed of representatives from the Canadian Malartic Monitoring Committee, the Town of Malartic and MCM, was asked to produce a Good Neighbour Guide to mitigate and compensate for impacts and property acquisitions in Malartic. This process, divided into four phases, began in the spring of 2015 and ended in the summer of 2017.
Open House Days were organized in August 2016 to provide information for the communities and opportunities for dialogue while the Guide was being prepared, and also to discuss the changes made to the Guide. In all, the Task Force held more than 20 meetings while preparing the version of the Good Neighbour Guide that was implemented in September 2016.
7
27
11
7
26
3
CONSTRUCTION PHASE (TOTAL OVER TWO YEARS)
OPERATION PHASE(PER YEAR)
Local(property and school taxes)
Federal(income and sales taxes)
Provincial(mining tax)
Provincial(income and sales taxes - exceptthe mining tax)
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Type of information Description
The promoter opened a community relations office in Malartic, and also organizes coffee hour discussions on specific subjects.
In December 2017, Mine Canadian Malartic presented a year-one review containing data on the compensation and acquisition programs, noting that results were beyond expectations and tangible impacts had been observed in the communities.
Monitoring committee set up by the promoter
The promoter has set up a monitoring committee: https://cescm.ca/
9. Aboriginal Communities
Type of information Description
Aboriginal community consultations organized by the Québec Government
The MDDELCC organized a good-neighbour type consultation for the Algonquin community of Abitibiwinni (Pikogan) as part of the environmental impact assessment and review procedure.
Dialogue established by the promoter with Aboriginal communities
MCM presented the Malartic Extension Project to the Algonquin communities of Winneway, Pikogan and Lac-Simon.
10. Plans and Rights Issued on the Host Territory
Type of information Description
Public or private land (Domain of the land)
The project will take place on 70 sites:
47 (67 %) are on public land
13 (19 %) are owned by the promoter
9 (13 %) are owned by the Town of Malartic;
1 (1 %) belongs to an individual
70 sites:
50 (71 %) are associated with mine operations
20 (29 %) are associated with the Highway 117 deviation
Public land use plan The public land use plan is based on the Government’s guidelines for the use and protection of land and resources in the domain of the State.
The land use allocation for the host territory provides for the use of land and natural resources, including mining resources, with particular attention to the archaeological heritage and the presence of residents.
Rights issued by government departments and agencies
Mine exploration rights (claims), mining rights (mining leases and a mining concession) and land rights issued for current
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Type of information Description
mining operations (for industrial purposes, waste rock stack and mine tailings site)
Public utility rights
Quad trail rights
11. Rehabilitation and Restoration Information3
Type of information Information/Data
Date of submission of first restoration plan December 16, 2009
Date of approval of first restoration plan June 15, 2011
Date of submission of first restoration plan review June 16, 2014
Date of approval of first restoration plan review June 30, 2015
Date of submission of second restoration plan review, including the expansion
April 27, 2016
Date of approval of second restoration plan review June 22, 2017
Anticipated date of next plan review No later than five years after date of approval4
Total amount of financial guarantee required after approval of the first restoration plan
$46 440 000
Total amount of financial guarantee required after approval of the first restoration plan review
$65 519 663
Total amount of financial guarantee required after approval of the second restoration plan review
$163 364 943
Schedule of financial guarantee payments based on the last approval:
- Date and amount of first payment October 2, 2017
$32 542 725
- Date and amount of second payment June 22, 2018
3 Confidential information if it predates December 10, 2013 (Mining Act, chapter M-13.1, s. 215).
4 The anticipated date of the next restoration plan review is subject to the requirements of section 232.6 of the Mining Act (chapter M-13.1)
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Type of information Information/Data
$40 841 236
- Date and amount of third payment June 22, 2019
$40 841 236
12. General Information on Use and Market
Description of substance
Gold is one of the most sought-after metals due to its outstanding properties as well as its brilliance and malleability, which make it so valuable. Although gold deposits are found in several regions of Canada, most of the prolific deposits are located in Québec and Ontario.
The Canadian Malartic Gold Mine is situated on the Cadillac-Larder Lake fault, which follows an east-west axis over a distance of roughly 350 km. There are numerous gold deposits along the fault, and 60 gold mines have already been established there since the 1920s. More than 2,000 tons of gold, or more than 64 million troy ounces of gold, have been mined to date from deposits associated with the Cadillac-Larder Lake fault. Today, numerous mining companies are active along the fault, including IAMGOLD Corporation, Agnico Eagle Mines and others. There are also a number of exploration projects.
Québec boasts more than a dozen gold producers, making it the second-largest gold-producing province in Canada.
Use
Gold is the most-used metal. It is used to make jewellery, coins and electronic components, and has applications in the aerospace industry, dentistry and so on. Gold also serves as an investment and an inflation hedge.
Most of the industrial uses of gold were developed in the last two or three decades. The trend towards industrial use will probably increase, and the resulting higher demand, combined with the fact that there are few substitutes for gold and available quantities are limited, may push its value and importance upwards in the coming years.
World production5
World production of gold was 100 million troy ounces in 2016. The main gold-producing countries were China (14.6 %), Australia (9.3 %), Russia (8.1 %) and the United States (7.1 %). Canadian production accounted for 5.3 % of world production, and Québec production for 1.6 %. With a production of 18 tons of gold in 2016, the Canadian Malartic Mine was responsible for more than one-third of Québec’s total production.
5 World data comes from the United States Geological Survey (2018) and Québec data from the Québec mining statistics program (ISQ, 2018, final data
for 2016).
Photo : MERN, Francis Fontaine
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Current price and trends
The prospects for growth in gold prices remain very stable for the period 2018 to 2022, at between $1,300 US/oz. and $1,350 US/oz.
In the short term, the widespread economic and political uncertainty that has characterized the international context since early 2018 may force gold prices upwards.
In the longer term, the growth of developing economies such as China and India will contribute to a sustainable increase in the demand for gold for the jewellery sector, which may help maintain prices above $1,300 US/oz.
13. Documentation
Impact assessment and related documents
http://www.bape.gouv.qc.ca/sections/mandats/mine_aurifere_malartic/documents/liste_documents.htm#PR
BAPE report
http://www.bape.gouv.qc.ca/sections/rapports/publications/bape327.pdf
Summary documents on the conditions of MDDELCC authorization
http://www.mddelcc.gouv.qc.ca/autorisations/documents/feuillet-mine-Malartic.pdf
Rehabilitation and restoration plan
http://gestim.mines.gouv.qc.ca/documents/PDR_CM_extension_2016-04-14_0000024925.pdf
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14. Glossary6
Bureau d’audiences publiques sur l’environnement (BAPE): The BAPE is a neutral public agency reporting to the Minister of Sustainable Development, Environment and the Fight Against Climate Change. Its mission is to inform government decision-making with a view to achieving sustainable development from the ecological, social and economic standpoints. To achieve this basic mission, the BAPE provides information, carries out inquires and consults the general public on projects or issues relating to environmental quality that are submitted to it by the Minister. It then produces inquiry reports, which are made public. The BAPE therefore has an advisory role and has no decision-making power.
Direct jobs: Jobs created for the organization’s own operations.
Domain: A system of ownership of land rights in a territory. Domain refers to the private or public aspect of land (formerly known as tenure). More specifically and generally, the term “domain” is used to refer solely to property in the domain of the State.
Environmental impact assessment and review procedure: An assessment and review of the environmental impacts in Southern Québec, which includes the following phases:
The promoter files a notice of project with the MDDELCC, which responds by sending a directive setting out the list of criteria that the promoter must consider and analyze in its impact assessment.
The impact assessment is carried out by the promoter. It must answer the questions and comments of the MDDELCC and of the Government departments and agencies consulted.
The project is examined by the BAPE, which holds information sessions and, if necessary, public hearings or mediation. The BAPE produces a report and presents it to the MDDELCC minister.
MDDELCC specialists analyze the project, to provide the Minister with information on social acceptability and on the relevance of carrying out the project or not, and if so, on the conditions of authorization.
The Government’s decision on the project is made by means of an order-in-council by the Cabinet, based on the recommendations of the Minister of Sustainable Development, Environment and the Fight Against Climate Change. The Government authorizes the project, with or without amendments, with the conditions it determines, or refuses the project.
Indirect jobs: Jobs created at a supplier organization.
Local community: A set of people living as a community in a given territory, such as a local municipality, an Indian reserve, an Indian settlement, a locality or Category I land designated by a Northern agreement.
Mine tailings site: The site at which waste mineral substances (mine tailings) are stored, along with water generated mainly by mining operations and ore processing.
Promoter: A public, private or community organization that wishes to carry out a land, energy or mineral resource development project in a given territory.
Public consultation: An open consultation carried out so as to allow every citizen to take part, in order to gather citizens’ opinions on a specific subject.
Public participation: A set of processes and activities covering information, consultation and active participation so that the concerns, needs and values of participants can be taken into consideration in the decision-making process.
Troy ounce: A unit for measurement of mass, traditionally used in Anglo-Saxon countries for precious metals such as gold and silver, or for precious stones. One troy ounce is equal to exactly 31.1034768 grams.
Waste rock stack: A stack of rocks produced by mining operations and not containing enough ore for processing.
6 The definitions of the BAPE and the environmental assessment and review procedure are adapted from information given on the BAPE and MDDELCC
websites.
