Proposed Quintette Mine Re-opening. February 2011
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1 Proposed Quintette Mine Re-opening February 2011
2 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 PACIFIC OCEAN British Columbia Distance to port ~ 1050 km Prince Rupert` Quintette CNR Prince CNR George CPR Alberta Sask Edmonton CNR Calgary Vancouver U.S.A. 2
3 History Quintette Mine was approved under the Guidelines for Coal Development in 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
4 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 4
5 5 Quintette Plant Site
6 Mining All coal will be mined by open pit operations Utilize existing infrastructure Anticipated year mine life Average production rate of Mmtcc/year Feasibility study is in progress and anticipated production rates and waste spoil volumes are being refined 6
7 Mine Plan Comparison (Production Capacity) The 2010 Mine Plan will be smaller than that which was approved in Mine Plan Waste (Mbcm) 650 Clean Coal (Mmtcc) Mmtcc: Million metric tonnes clean coal Mbcm: Million bench cubic metres 7
8 Regulatory: British Columbia Environmental Assessment Act (BC EAA) 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.) 8
9 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 9
10 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 10
11 Key Issues 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 Environmental Social and Economic Concerns of Public, First Nations and Communities First Nations Interests and Treaty Rights Rights and Activities of Other Tenure Holders 11
12 Community Engagement 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 Environmental Social and Economic Concerns of Public, First Nations and Communities First Nations Interests and Treaty Rights Rights and Activities of Other Tenure Holders 12
13 Update on First Nation and Community Engagement Ray Proulx hired as a Community Liaison for Quintette Project Summary of engagement activities to date: Introductory meetings July Sept with District of Tumbler Ridge, 5 First Nations and one Metis community. Additional discussions occurred between Sept. and Nov 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
14 Quintette Proposed Timeline 2010 Permitting completed Board gives Project approval Mid 2011 Construction begins in the Plant Engagement Feasibility study completed Initiate preparation of Application to amend Mines Act Permit C-156 Engagement Engagement Geotechnical drilling Mine planning Environmental baseline studies Q Mining potentially begins in Windy Pit Engagement 14
15 Summary 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 Mmtcc over a 15+ year mine life, starting in 2013 Capital costs estimated to be <$500 million Approximately employees required 15
16 Summary (cont'd) 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) 16
17 Next Steps 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
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