Cooperating on Giant Mine Remediation
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1 Cooperating on Giant Mine Remediation NOAMI Workshop October 26-27, 2006 Bill Mitchell Giant Mine Remediation Project Giant Mine C Shaft Headframe CON MINE Giant Mine Location 2 1
2 Giant Mine was commissioned in 1948 on federal land Administration of the land was transferred to the NWT Commissioner in 1970 Site within the Yellowknife City limits City holds an existing lease on former Town site, but is not responsible for environmental liabilities that existed prior to it obtaining its lease in 2000 Approximately 237,000 tonnes of toxic arsenic trioxide dust is stored underground and there is arsenic contamination on surface Underground storage is located near or under Ingraham Trail, adjacent to mill Royal Oak Mines forced into receivership Giant Mine becomes orphaned site 3 Cooperating on Care and Maintenance of Orphaned Site with Private Sector December 1999: Indian and Northern Affairs Canada (INAC) entered into an agreement with Miramar Giant Mine Ltd. to provide care and maintenance for Giant Mine Miramar provided personnel skilled in maintaining mine in environmental compliance including operating mine water management system and ETP Agreement remained in place until 2005 and allowed INAC and Technical Advisor to assess liabilities and develop options with public input for the management of the underground arsenic trioxide Agreement allowed Miramar Giant Mine Ltd to operate mine on reduced scale Miramar indemnified for existing condition of mine 4 2
3 Giant Mine Reserve and Townsite Lease 5 6 3
4 Remediation Plan Elements Underground 237,000 tonnes toxic arsenic trioxide dust stored in sealed rock chambers Surface Highway Relocation Decaying mine infrastructure and buildings with severe arsenic contamination, asbestos insulation Tailings impoundments, sludge settling and polishing ponds Contaminated surficial materials (arsenic and hydrocarbon) Contamination in Baker Creek reach realignment Miscellaneous junk piles Underground mine openings Why a cooperation agreement between Governments? Need for integrated remediation plan for surface and underground Different Jurisdictions Difficult to apportion responsibilities and liabilities There is no possibility of previous owners cleaning up the site Expectation to proceed with remediation 4
5 Cooperation Agreement Fundamentals Acknowledge different legislative and administrative responsibilities for the Giant Mine site No transfer of responsibility Liability allocation set aside Agree to be co-proponents of remediation plan Recognition that remediation of Giant Mine is a priority for the public Agree to cost share The Agreement covers the Giant Mine remediation project only. It does not set a precedent for other mines on Commissioner's Land Purpose and Goals of Agreement Purpose is to cooperate and coordinate the care and maintenance of the site, finalization of an integrated Remediation Plan and implementation of the Approved Plan Under the Agreement, Parties agree to: - Implement an effective care and maintenance plan - Finalize, approve and implement a remediation plan (after appropriate regulatory approval) - Protect human health, public safety and environment - Maximize northern economic opportunities - Cooperate to achieve a timely and efficient regulatory review process 5
6 Cooperation Agreement - Main Components Care and Maintenance Remediation Plan (integrated surface and underground) Administration of Project Financial Cost-Share Care and Maintenance Interim office responsible for managing care and maintenance to maintain the mine in environmental compliance and provide site security Cost shared between GNWT and DIAND In 2005 after a competitive bid process, Public Works and Government Services Canada awarded a contract for care and maintenance to Deton Cho Nuna, an aboriginal and northern company joint venture 6
7 Remediation Plan Parties agree to finalize a remediation plan integrating surface and subsurface components for submission to regulatory agencies Plan will include former Town Site Parties agree that in situ freezing of arsenic trioxide dust is the preferred option for addressing the underground arsenic trioxide at the site Parties agree to cooperate in all aspects of regulatory filings and environmental assessment Remediate surface of the site to GNWT Industrial Standards Administration of Project Parties will establish an Oversight Committee with equal federal and territorial representation to administer the Agreement and Interim Project Office decisions by consensus Parties will jointly establish an Interim Office to ensure care and maintenance is carried out, finalize an integrated Remediation Plan and submit the Plan on behalf of both Parties to the regulatory authorities Parties will jointly establish a project management structure to implement the Approved Remediation Plan 7
8 Financial Cost-Share GNWT to contribute $23m over 10 years towards care and maintenance and remediation of surface only Canada acknowledges long term responsibility of arsenic trioxide dust stored underground GNWT to provide right of access and possession by appropriate land tenure instrument at no cost to Canada GNWT will contribute up to $250,000 annually towards the cost of the interim office GNWT will make best efforts to provide other in-kind services Other Details in Cooperation Agreement Under the Cooperation Agreement: The Parties will work together to inform First Nation communities and the City of Yellowknife of the remediation activities. Northern economic opportunities will be maximized The Agreement has a term of 10 years, after which it may be renewed. Further, the Agreement will be reviewed after 3 years 8
9 Next Steps Application for water license - first step in the regulatory review process Continued care and maintenance and risk mitigation on the site Continued monitoring air, water, effluent MMER/EEM Continued communications and information activities 9
10 Deton Cho Nuna Joint Venture Care and Maintenance/Risk Mitigation cooperative relationship with PWGSC and contractor Bulk fuel AST drain-clean-demolish-recycle Oil distribution pipes (including utilidor) Asbestos removal DWC open stope filled DWC raise filled Removal of surface arsenic distribution lines Mine water management system Upgrades to ETP and settling pond filter dike Baker Creek Diversion to prevent water flow into C-1 pit and away from C212 New electrical substation Substation 5 demolition B shaft compressor house demolition Miscellaneous fuel barrels collected for recycle Underground clean up Battery recycle Hazardous chemicals from mill and assay labs packaged for shipping Training Apprenticeship opportunities 19 Giant Mine Remediation Project For more detailed information: Bill Mitchell Project Manager INAC Mark Cronk Engineer PWGSC Manny Lim Project Specialist INAC James Lariviere Head, Technical and Environmental Services INAC Diane Walsh Administrative Coordinator INAC Linda Dufour Project Engineer GNWT Potential Position to be staffed GNWT Alex Glowach Project Specialist INAC Ben Nordahn Mining Technical Specialist INAC Vacant Environmental Scientist 10
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