Canada’s National Orphaned andAbandoned Mines Initiative

(NOAMI)

Gilles Tremblay, INAP and Charlene Hogan, NOAMI

December, 2016

International Summit on Derelict MinesSingleton, NSW, Australia

Presentation Overview

Canadian jurisdictional regime for mining

Challenges in dealing with orphaned and abandoned mines

What is NOAMI? NOAMI Highlights Mine closure and

relinquishment Jurisdictional Partners Conclusion

Jurisdictional Regime in Canada

Multiple jurisdictions Federal Government

regulates mining in Nunavut, international waters, reserves, and matters affecting fishery

Provinces regulate within their borders

Jurisdictions responsible for management of orphaned and abandoned mine sites

Mining Industry Mandate

• Meet the current and future mineral needs, and create jobs and value without adversely impacting future generation’s opportunities Responsible care and optimizing the present value of water are

fundamental to sustainable development

• Maintain “social license to mine”• Prevent, minimize, and mitigate potential environmental risks

• Acidic drainage (AD) common contaminant for metal mining Water quantity and quality (AD) frequently represent greatest

challenge AD impacts can be very long lasting AD remediation is costly (US: $5-50 billion)

Options and Cost with Time

Important Concept: Prevention is primarily accomplished in the assessment and design phases

Typical legacy closure

Orphaned or Abandoned Mines: Definition

Orphaned sites are mine sites for which an owner cannot be found or no longer exists

Abandoned sites are mine sites for which an owner does exist, but is financially unable or unwilling to remediate site

Orphaned and Abandoned Mines: Challenges

Environmental issues acidic drainage/metal leaching,

contamination of receiving environment Public Health and Safety

mine openings, abandoned infrastructure, subsidence

Financial issues cost of clean-up/reclamation Funding/on-going liabilities

Community issues

National Process to Address the Issue

1999 - Stakeholders lobbied Mines Ministers to establish a joint industry-government working group, assisted by other stakeholders, to review the issues of abandoned mines in Canada

2000 - Canadian Mines Ministers ConferenceMinisters requested that a multistakeholder workshop be organized, and a National Advisory Committee established, to identify key issues and priorities for abandoned mines

2001 - Winnipeg MultistakeholderWorkshop on Abandoned Mines

Winnipeg Workshop on Abandoned Mines

Five major themes were discussed: Community Perspectives Setting Standards & Rational Expectations Ownership and Liability Issues Identification of Funding Models Building a National Inventory

Participants developed consensus, guiding principles and recommendations; reported back to Mines Ministers at Mines Ministers Conference in 2001

Ministers approved the initiative and requested a multistakeholderconsortia be formed to assess issues and make recommendations for collaborative implementation of remediation programs for orphaned and abandoned mines across Canada

Consortia Approach in Canada

NOAMI adopted multistakeholder consortia model

Co-operative initiative among industry, various levels of governments, non-governmental organizations and Aboriginal Canadians

Address issues of national importance MEND, AETE

Ensure that government policy is based on sound science

Benefits Open sharing for evaluation of technologies

Collaborative efforts result in a better perspective of the issues

Continuity

Avoids duplication

Cooperative problem solving

National Orphaned/Abandoned Mines InitiativeNOAMI

Officially launched at meeting in Toronto during March 2002 PDAC Conference

Multistakeholder Committee formed; Secretariat at Natural Resources Canada

Annual Work plan developed Jointly funding by industry and jurisdictional partners

What does NOAMI do? Examines the legislative, policy and program

framework in Canada for addressing O/A mines Identifies obstacles or barriers to progress Identifies Best Practices towards remediation Influences decision makers and enables informed

choices Provides a “safe place” for discussion among

members Shares information: Website

Reports Newsletters Workshops

Does not have the mandate or financial resources to clean up mines

The overarching goals of NOAMI are to provide tools to remediate existing orphaned and abandoned properties and to prevent the occurrence of new orphaned and abandoned mines in the future.

Task groups were formed to address key issues: National Inventory Community Engagement Legislative and Institutional Barriers to Collaboration Funding Approaches Jurisdictional Legislative Review Mine Closure and Return of Lands to the Crown Communication – Overarching

NOAMI Action Plan

NOAMI Task Group Reports Best Practices guidelines for meaningful community

engagement (2004)

Capacity Building for a National Inventory (2005)

Toolkit of Funding Options (2006)

Legislative, regulatory, and policy framework for collaboration, liability and funding measures: Orphaned/abandoned, contaminated and operating mines for all jurisdictions in Canada.

Mine Closure and Relinquishment Project Policy framework for mine closure and management of long-term

liabilities: A guidance document (2010) Case studies and decision-making process for relinquishment of

closed mine sites (2013) Key criteria for long-term stewardship of closed,

orphaned/abandoned mine and mineral exploration sites (2015) Risk identification and cost estimation for orphaned/abandoned

mine closure and long term management (in progress)

Communications/Information Sharing

Six Workshops and Proceedings Newsletters - NOAMI Nugget Presentations/publications at

conferences Guidelines and NOAMI Reports NOAMI National Inventory Website:

www.abandoned-mines.org

Abandoned Mine Sites Inventory

Ontario - 6,500 historic sites, many in public domain. Over 18,000 hazards (Cowan, 2002)

Canada - over 10,000 sites (Mining Watch, 2000) Nova Scotia - over 6,000 mine openings Quebec - 89 tailings sites (Bienvenu, 2002) BC - 1,898 sites (Stewart, 2002) Manitoba - 290 sites (2002)

Capacity Building for a National Inventory (2005)• Review of Canadian and international inventories

National Inventory of Orphaned/Abandoned Mines Feature-based classification of sites Map-based Portal links to jurisdictional databases Available to the public Bilingual Interactive website to be launched soon

Mine Closure & Relinquishment(2010 – 2016)

NOAMI principle “Work towards eliminating future abandonment must continue, including the strengthening of regulatory approaches” Need for clear policy framework for mine closure, long-term liabilities and

return of mining lands to the Crown

1. Policy Framework in Canada for Mine Closure and Management of Long-term Liabilities: A Guidance Document (Cowan Minerals 2010)

2. 2011 Workshop - Exploring the Management of Long‐term Liabilities and the Return of Mining Lands to the Crown in Canada

3. Case Studies and Decision-making Process for the Relinquishment of Closed Mine Sites (Cowan Minerals 2013)

4. Key Criteria for the Effective Long-term Stewardship of Closed, Orphaned/ Abandoned Mine and Mineral Exploration Sites (Kingsmere Resource Services 2015)

5. Risk Identification and Cost Estimation for Orphaned/Abandoned Mine Closure and Long Term Management (KRS, in progress)

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Institutional Control Program (Saskatchewan, Canada)

Establishes the conditions by which Saskatchewan will accept responsibility for land that, in consequence of development and use, requires long-term monitoring and, in certain circumstances, maintenance.

• Establishes an endpoint for mining company activities on sites located on Crown land

• Establishes funding for the long-term care and control of the closed sites

• Establishes an Institutional Control Monitoring and Maintenance Fund and an Institutional Control Unforeseen Events Fund

• Unforeseen Events fund is dependent on what is on site• 10% with no tailings and or structures • 20% with tailings and structures

An important component of mining regulation, Saskatchewan is an international leader. (Reference Mine Closure 2015)

NOAMI ReportingPerformance Report 2002-2008 Summarized the work of NOAMI and its jurisdictional

partners towards remediation of orphaned/abandoned mine sites

Widely distributed nationally and internationally

Performance Update 2009-2015 Highlights NOAMI’s major achievements, and the

efforts of Canadian jurisdictions to address the potential legacy issues associated with orphaned and abandoned mines across the country

Released in July

Government Partnershipsand Programs

Brewery Creek, Yukon

2005 2008

Mine Closure and Rehabilitation Plans

Mining regulations require approval of a mine closure plan.

Designed to rehabilitate and restore mine sites to former use and otherwise protect the environment after the completion and closure of the mine.

Financial securities (or financial assurances or guarantees) for closure plan obligations are required to be filed with closure plans.

An approved closure plan and the accompanying financial assurance are required prior to mine production.

Progress Made by Jurisdictions

Since 2002 : Over $1 billion Canadian spent on O&A Mines

Programs for the closure of O&A mines established in most provinces.

Federal government - Northern Contaminated Sites Program (since 2003 budget of CDN$4.5 billion)

United Keno Hill Mine

34

Project Management - Cost Estimation - Peer ReviewsStakeholder Engagement - Risk Management

Site Assessment

Set Closure Objectives

Identify Closure Options

Select Best Closure Option

Design Construction Monitoring

Best practices for the Northern Contaminated Sites Program

Short list of three options for tailings pond closure•Move tailings•Cover tailings•Combination of both Faro Mine, Yukon

Northern Contaminated Sites Program

NOAMI Partners - Provincial Government Programs British Columbia – Over $192 million spent

on contaminated sites (2003 – March 2016)

Manitoba - As of March 31, 2016, has spent $214.8 million on O&A mine-site rehabilitation

Ontario has spent $142.4 million on rehabilitating the highest priority Crown-held mine sites (September 1999 to March 2016)

Newfoundland and Labrador – Over $30 million spent on O&A Mines in recent years

Nova Scotia – Invested $760K on remediation of abandoned mine opening (2001 – December 2015)

Dominion (Gurney) tailings, MB - Before

Province of British Columbia Legislation for financial assurance introduced in 1969. First of its

kind in Canada (maximum of ~$2500 per hectare) Limit raised to ~$5000 per ha in 1975 - actual cost possible Limit removed in 1989. Policy decision to reduce risk to

government• Reclamation requirements site specific

Equity Silver Mines:• Security reviewed every five years since 1991, and is

adjusted accordingly. At one time amount reduced from $47 million to $32 million with the application of a cover over the waste rock piles. In 2010, increased to $56 million because of lime and other unanticipated costs. The net present value (NPV) of the reclamation liability based on the 2015 review is $82.467M.

Québec Abandoned Sites Program

$620 Million was allocated for 499 abandoned mines sites. This will reduce their estimated liability by 80%

Focus on developing efficient and economical closure methods using wastes as a resource to treat or stabilize other wastes

Partnership approaches With industry

Manitou – Goldex Project

Manitou Mine Site

Spill zone : 6 .5 km long - 50 to 300 m wide

Thickness 1 to 17 m, water pH 3.0

11 Mtons of tailings

Manitou Creek

Manitou Creek

Tailings Ponds : 42 haTotal disturbed area : 200 ha

1942-1979 : Cu, Zn, AuBankruptcy 2002

• Pipeline : 23 km

• Tailings : 7 000 t/day = 1.8 Mm3/year

• Pulp : 45 % solid

• Duration : 10 years

Manitou-Goldex Project

Total cost 49 M$Km 23

Km 19

Km 2

Km 12

Km 7Km 4

Goldex

Manitou-Goldex Project

Intermediate dam

Impervious dam

Goldex-Manitou

Government estimated savings : 14 M$

No delays to bring Goldex mine into full production

Reduction of the natural resources required to rehabilitate the site

Avoid construction of large tailings site for GoldexMine (5 Mm3 capacity emergency pond built)

No additional cost to Agnico-Eagle Mine

No additional environmental responsibilities for Agnico-Eagle Mine

Manitou GoldexAdvantages

Ontario Abandoned Mines Rehabilitation Program

Up to $500 million estimate to rehabilitate 5600 sites $138.4 million for 1999-2015 for high priority Crown-

held OAMs

Moneta Mine Easter Monday, 2004

For all you

golfers who

never got a hole-in one!!!!!

Timmins Municipal Golf Course

Concluding Remarks

At the core of NOAMI lie two major strengths: multi-stakeholder nature of the initiative; national in its reach

Good example of how a collaborative approaches can address and solve complex multi-jurisdictional issues.

Strong evidence that there has been a substantial increase in action—and success– in grappling with these issues in jurisdictions across Canada.

MEND Program

1989 – 2016 Extensive national and

international multi-stakeholder network

~$21M Current research budget ~

$150K/a Focused research work plan Technology transfer

Solbec

…to provide leadership and guidance on priority acidic drainage issues in Canada

Technology Transfer in MEND

Guidance Document Prediction Manual, BATEA to Manage and Contol

Effluents form Mines

Workshops and 3 ICARD Conferences (> 40) Annual BC-MEND ML/ARD Workshops 11th ICARD Pretoria, South Africa

September 10 – 14, 2018

MEND Reports and CDs > 200 reports available on Website Advanced search capacity

Periodic Announcements to MEND/NOAMI e-Network

Waste ManagementUsing Organic Waste to Remediate Tailings and Produce Bio-EnergyConvert a financial liability into a revenue stream3 demonstration sites | ~5M litres biodiesel/y from canola | ~$900/ha/y profit

2014

National Orphaned/ Abandoned Mines Initiative (NOAMI)www.abandoned-mines.org

Mine Environment Neutral Drainage (MEND)www.mend-nedem.org

To download reports, newsletters,or workshop proceedings please

visit:

For further information, contact:

Patrick ChevalierManager – MEND/NOAMI Secretariat

Natural Resources Canada555 Booth Street

Ottawa, Ontario, CanadaK1A 0G1

Patrick Chevalier@canada.cahttp://www.abandoned-mines.org

http://mend-nedem.org