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Application to Renew Water License N7L2-1645

Application to Renew Water License N7L2-1645. Public Hearing - November 7-10, 2006 Presentation by Diavik Diamond Mines Inc. Pictures for Mark. Lac de Gras. The Plant Site Today. Lac de Gras. Explosives Emulsion Plant. Fuel Tanks. Diesel power plant. Boiler plant. Sewage Treatment.

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Application to Renew Water License N7L2-1645

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  1. Application to Renew Water License N7L2-1645 • Public Hearing - November 7-10, 2006 • Presentation by Diavik Diamond Mines Inc.

  2. Pictures for Mark Lac de Gras

  3. The Plant Site Today Lac de Gras Explosives Emulsion Plant Fuel Tanks Diesel power plant Boiler plant Sewage Treatment Process Plant Administration / Maintenance Complex Permanent Accommodations Water intake Lac de Gras

  4. Introduction • Panel • Mr. Gord Macdonald – Lead DDMI Representative • Mr. Scott Wytrychowski – DDMI Environment Manager • Mr. Jeff Reinson – DDMI Manager of Infrastructure Construction • Mr. Brad Armstrong and Ms. Melanie Smith - legal • Experts • Mr. Geoff Beale – water management • Mr. J.P. Bechtold – effluent quality criteria • Dr. Alan Cameron – explosives management • Mr. Don Chorley – hydrogeology • Mr. Terry Eldridge – processed kimberlite storage and closure • Ms. Amy Langhorne – aquatic effects monitoring • Dr. Karsten Liber – aquatic toxicology • Dr. Marcel Pineau – water treatment • Mr. Erik Madsen – DDMI Northern Affairs Manager

  5. Outline • Overview of the Status of the Mine • Renewal Application • Status of Ammonia Management • Status of Aquatic Effects Monitoring Plan • Status of Closure and Reclamation Plan • Term of Water License • Other Issues • Final Summary

  6. Outline • Overview of the Status of the Mine • Overview of Mine • Current Development • Environmental Performance • Socio-Economic Performance • Planned Development • Summary • Renewal Application • Status of Ammonia Management • Status of Aquatic Effects Monitoring Plan • Status of Closure and Reclamation Plan • Term of Water License • Other Issues • Final Summary

  7. Overview

  8. Plan vs Current

  9. Diavik Diamond Mine Site PKC Area North Country Rock Area North Inlet Storage Facility North Inlet Water Treatment Plant & Discharge A418 Dike & Future Pit Area A154 Dike & Pit Area

  10. Water Management Area

  11. Diavik Diamond Mine Site PKC Area

  12. PKC Area Final Containment Dams Secondary Containment Dam Primary Containment Dams Secondary Containment Dam

  13. Diavik Diamond Mine Site North Country Rock Area

  14. North Country Rock Area Pond 1 Pond 3 Pond 2

  15. Diavik Diamond Mine Site A154 Pit and North Inlet Area

  16. A154S A154N

  17. What is a cubic metre per day (m3/d) 250,000 m3/d 20,000 m3/d • Coppermine River at Lac de Gras • 1,750,000 m3/d • Coppermine River at Kugluktuk • 25,000,000 m3/d

  18. A154 Pit Area 20,000 North Inlet Treatment Plant Final Effluent 20,000 20,000 Mine Seepage >100 Dike Seepage >100

  19. Surveillance Network Program • Surface Runoff and Groundwater Stations 20 21 29 32 31 26 27 23 28 22 33 25 24

  20. Surveillance Network Program • Surface Runoff and Groundwater Stations • Source Water Quality 20 21 29 32 31 26 27 48 12 42 23 16 42a 28 47 15 13 11 22 45 33 25 46 49 24 52

  21. Surveillance Network Program • Surface Runoff and Groundwater Stations • Source Water Quality • Final Effluent • Mixing Zone -Lac de Gras 20 21 29 32 31 26 27 48 12 42 23 16 42a 28 47 15 13 11 22 45 33 25 19a 46 49 19c 24 19b 52 18

  22. 19c 19a 18 19b

  23. Final discharge as percent of License limit Water quality at highest effluent exposure as a percent of effects threshold

  24. Water and Waste Summary Annual Water Quantities (Mm3/y)

  25. Water and Waste Summary Annual Mine Waste Quantities

  26. Environmental Performance • Water Management and Monitoring • Wasterock and PKC Management • Compliance • Effects less than EA Predictions • No significant adverse effects on Lac de Gras

  27. Socio-Economic PerformanceNorthern Commitments C$223 million (2005) 727 Workers C$1.2 billion C$1.2 billion 800 Workers 50% Aboriginal 35% Aboriginal (256) 50% Aboriginal ($600 m) 39% Aboriginal 20% Aboriginal Source: Diavik 2005 SEMA Report

  28. Mining Operations begin Aboriginal Business Total Diavik Aboriginal Business Spend ~ $1 Billion

  29. Diavik’s Growing Underground Future 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Diavik Will Become an Underground Mine * A154 Open-Pit A418 Open-Pit A154/A418 Underground Note: A21 pipe is pending further resource evaluation * mine schedule subject to change due to market condictions, further resource evaluation, continued mine planning, etc.

  30. The Long Term Goal Full and Safe Closure Diavik Site - 2025

  31. Overview Summary • Developed as planned. • Proud of accomplishments. • Proud of performance in Sustainable Development. • Our challenge is to continue to improve into the future.

  32. Outline • Overview of the Status of the Mine • Renewal Application • Overview of Application • Security Deposit • Renewal Workplan • Status of Ammonia Management • Status of Aquatic Effects Monitoring Plan • Status of Closure and Reclamation Plan • Term of Water License • Other Issues • Final Summary

  33. Renewal Application • Renewal of Water License N7L2-1645 filed on August 8, 2005. • Application contains: • Part 1 - Application Form • Part 2 - Completed Mining Industry Questionaire with references on 3 CD’s • Part 3 – Consultation Summary • Part 4 – Overview and Status of N7L2-1645 • Part 5 – Copy of Water License • Application deemed complete – September 8, 2006. • DDMI has not applied for any changes to Terms and conditions. • Seek a 15 year term to coincide with expected duration of operations. • With the Application, DDMI requested an exemption from Preliminary Screening. • DDMI received exemption from Preliminary Screening – September 8, 2006.

  34. Part B - Security Application cont’ • Additional security amounts • Part B Item 2b • Minister currently holds $153M in Security Deposits and this increases to $178M in 2007. • The expected total Life of Project Closure Cost is $123M • Reference Schedule 1 - Environmental Agreement – Column (A) • “Additional Security Deposit Amounts ” have been scheduled for the Life of Project • Reference Schedule 1 - Environmental Agreement – Column (B)

  35. Application cont’ • WLWB Renewal Workplan: • Renewal and Terms and Conditions • Progress with respect to ammonia and AEMP • Productive discussions at hearing • DDMI written response to interventions submitted to WLWB October 30, 2006. • DDMI Responded to specific intervener suggestions and recommendations with a focus on: • Changes to terms and conditions, including discharge limit for total ammonia. • Ammonia Management Plan and proposed way forward. • AEMP and proposed way forward.

  36. Outline • Overview of the Status of the Mine • The Application • Status of Ammonia Management • Ammonia Overview • Draft Ammonia Management Plan • Total Ammonia Discharge Limit • Proposed Way Forward • Status of Aquatic Effects Monitoring Plan • Status of Closure and Reclamation Plan • Term of Water License • Other Issues • Final Summary

  37. Mixing & Placing Explosives Loading Holes Drilling Western Denesoline Explosives Western Denesoline I&D Mgmt Services Loading Load & Haul I&D Management Services Ammonia Management Blasting Western Denesoline Explosives

  38. Ammonia Management Plan Scope Ammonia Investigations 2004 Terms of Reference 2005 other ADP Revised ADP 2006 Addendum AMP

  39. Ammonia Management Plan (AMP) - Objectives • To ensure that explosives are used and water is managed in such a way that ammonia losses do not result in a change in the trophic status of Lac de Gras or adverse environmental effects. • To continually work towards achieving the lowest practical ammonia levels in the mine water and final effluent discharge.

  40. Additional Measures to Manage Ammonia

  41. Draft AMP - Content • Additional measures to manage ammonia • Management objectives • Internal control levels • Monitoring, controls and contingencies • Additional monitoring requirements • Review, reporting and corrective actions

  42. Discharge Limit Total Ammonia Daily Maximum Level that is protective of the environment (Water-Quality based Approach) Estimated range of lowest practical level (Practically Achievable Approach) Total Ammonia (mg/L) Technology Limit (Technology Based Approach)

  43. Recommended Discharge Limit • 20 mg/L daily maximum – water quality based approach • Protective of environment • Ensures no chronic toxicity • Ensures no acute toxicity with pH control • Consistent and recognized approach • Ammonia Management Plan to achieve internal control levels.

  44. Response to Interventions - Ammonia • Round whitefish testing • Research on northern aquatic species • Total ammonia discharge limit • Table 1 INAC Intervention

  45. Borgmann and Borgmann (1997) • Initial tests showing greater NH3 toxicity in softer water were run in artificial media diluted 90% with deionized water (no intermediate concentrations tested) • Tests used to develop a model on the influence of Na+ and K+ on ammonia toxicity were only run in artificial media at two undocumented hardnesses • The model slightly overestimated ammonia toxicity in Lake Ontario water • The model substantially overestimated ammonia toxicity (by 6-9 fold) in Lake Superior water • While Na+ and K+ can influence ammonia toxicity to Hyalella azteca in artificial media, there is no evidence that the Borgmann model is applicable to Lac de Gras conditions

  46. Proposed Way Forward - Ammonia • With discussions from these hearings: • submit that the Board will be in a position to approve the AMP in accordance with Part H of the Water License, and • the Board should be able to determine the long-term discharge limit for ammonia. • DDMI proposes that the testing of round whitefish be developed as a research project with DDMI as a funding partner.

  47. Summary Ammonia Presentation • Provided information about Ammonia. • Provided an overview of the draft AMP. • How it was developed • Management measures • Plan contents • Proposed a way forward. • Approving the AMP • Setting an ammonia discharge limit • Round whitefish research • Substantial progress has been made.

  48. Outline • Overview of the Status of the Mine • The Application • Status of Ammonia Management • Status of Aquatic Effects Monitoring Plan • Aquatic monitoring • Project-related effects pathways • 2001 AEMP • 2006 AEMP • Terms and Conditions • Proposed Way Forward • Status of Closure and Reclamation Plan • Term of Water License • Other Issues • Final Summary

  49. Aquatic Effects Monitoring

  50. Water Quality Water Quality

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