Voisey s Bay Project

Transcription

1 Voisey s Bay Project

2 Project Context/History Greenfield site development in remote area with access to shipping Two 6 week closure periods - Dec/Jan; Apr/May Overlapping and unsettled land claims - Innu Nation; Labrador Inuit Association (LIA) Multi-party environmental assessment Canada, Newfoundland, Innu Nation, LIA First mining project in Canada assessed under CEAA legislation Project promotion by Diamond Field Resources in the period resulted in grossly inflated expectations among local inhabitants and politicians Changing global demand/supply situation Start-up of Australian projects in late 1990s utilizing new Pressure Acid Leach (PAL) process technology Development of Goro Possible application of hydrometallurgical process technology (as opposed to pyrometallurgical technology)

3 Project Setting The Project is being developed on the traditional lands of the Labrador Inuit and the Labrador Innu Canadian courts have held that Aboriginal peoples in Canada possess special rights to traditional Aboriginal lands Those rights can include requiring resource developers to enter into Impacts and Benefits Agreements (IBAs) on traditional lands to set forth how lands can be used and benefits to be received by Aboriginal people

4 Labrador Inuit Land Claim Area Currently, there are approximately 5,000 Labrador Inuit located in 5 Inuit communities Nain is about 30km from the Project Labrador Inuit land claims were accepted by Federal and Provincial governments for negotiation in 1978 Land Claim Agreement finalized and approved by Canada and Newfoundland in 2005

5 Labrador Innu Land Claim Area Currently, there are approximately 2,000 Labrador Innu Natuashish is 68km from Project area Labrador Innu land claims were also accepted by Federal and Provincial governments for negotiation in 1978 Negotiations are still ongoing NATUASHISH

6 Voisey s Bay Impacts and Benefits Agreements (IBAs) IBAs are legally binding agreements VBNC benchmarked IBAs developed for other Canadian mining projects, including Falconbridge s Raglan Project in Quebec VBNC commitments contained in two separate IBAs one with Innu and one with Inuit IBAs secure economic benefits and maximize Project opportunities for Inuit and Innu and help to mitigate project impacts

7 Why have them? IBAs provided certainty in an area of unsettled land claims IBAs identify to VBNC the limitations of obligations to aboriginal people IBAs provide legal recognition by LIA and Innu Nation of VBNC s right to develop Final land claim settlements require IBAs and may have more stringent requirements VBNC s IBAs grandfather the project into final land claims agreements

8 History of IBA Negotiations Late 1995 July 1996 Dec 1997 Dec 1999 March 1998 Jan Jan May/June 2001 May/June 2002 June 24, 2002 July- Sep Negotiations with LIA and Innu Nation begin Financial offer to LIA and Innu Nation rejected Comprehensive IBA offer to LIA rejected LIA and Innu Nation present joint position on major issues LIA counter-offer rejected by VBNC Project and IBA negotiations put on hold due to impasse with provincial government on project configuration VBNC maintains informal communications with LIA and Innu Nation Negotiations with LIA and Innu Nation restart Inuit IBA and Innu IBA draft initialed and presented to memberships for ratification Inuit and Innu IBAs ratified by membership Final legal text of IBAs signed

9 Typical IBA Topics Financial Payments Harvesting Compensation Employment Business Opportunities Shipping Environmental Protection Education and Training Workplace Conditions Use of Infrastructure and Facilities Social and Cultural Protection Dispute Resolution

10 Project Overview

11 Project Configuration The Project is being developed at two sites separated by about 1200 km The mine & concentrator has been established at Voisey s Bay The hydromet demonstration plant and commercial plant will be built in Newfoundland Both sites require development of extensive infrastructure such as port facilities, power supply, water supply & roads. The Voisey s Bay site also includes an airport and accommodation complex

12 Project Components Mine, Concentrator and Support Infrastructure Exploration Hydromet Demonstration Plant Commercial Processing Plant

13 Three Phased Development Voisey s Bay Timeline Phases Phase One, Phase Two, End of 2008 end of 2011 Phase Three Subject to completion of underground exploration program Infrastructure R&D, Concentrate Handling Facilities Mine & Concentrator mid-03 late 05 Commitment to and construction of commercial hydrometallurgical process plant beginning with 2007 feasibility study 2018 Potential underground mining

14 Mine and Concentrator

15 Mineral Resources Discovery MiniHill Ovoid Reidbrook Reid Brook Ovoid Southeast Extension Eastern Deeps Far Eastern Deeps Discovery Hill Massive Sulphide Measured + Indicated Disseminated Sulphide Measured + Indicated Massive + Disseminated Sulphide Inferred 32 M tonnes proven reserves 50 M tonnes estimated indicated mineral resource 12 M tonnes estimated inferred mineral resource

16 Project Capacity 6,000 tonne-per-day Mine and Concentrator Annual Production Average 110 M/lbs nickel in a high grade and a middling grade concentrate (higher in early years) containing 5 M lbs cobalt and up to 15 million lbs copper 70 M/lbs copper-in-concentrate

17 Exploration US$63M exploration program Two Stage Program : Advanced surface program to complete pre-feasibility studies on the underground deposits Based on positive exploration results, completion of the prefeasibility studies will be undertaken. Underground mine development and expansion of mine and concentrator subject to completion of underground exploration program

18 The Gossan Edward s Cove in background

19 The Gossan Looking North

20 The Ovoid Camp Pond and Airstrip in Background

21 Haul Road Mill Site in Background

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23 Mill Site Airstrip in Foreground

24 Coarse Ore Storage and Concentrator Building Airstrip Concentrator Coarse Ore Storage Power Plant

25 Edward s Cove Port Site Looking East

26 Shiploader

27 Winter Shipping

28 Mine & Concentrator Construction Schedule Years Voisey s Bay Initial Civil Works Bankable Feasibility Study & Mobilization Design, Construction & Commissioning Production Ramp-up First Concentrate Shipping Nov. 2005

29 Progress 98% complete Ore was introduced into the mill Monday, September 12, 2005 Construction close-out ongoing in mill Main focus at Port construction for fall completion Demobilization in progress

30 A lot can happen in two years! October 2003 One Year Later Today

31 Mine and Concentrator Operations Workforce (October 2005 ) Operations hiring criteria Safety, Productivity, Commitments 6+ month recruiting period Pre and post employment training Innu & Inuit Other Labrador Total Labrador Other Total Total % 29% 79% 21% 100%

32 Aboriginal Training and Employment

33 A Broader Perspective Objectives Establish Opportunities for Aboriginal Participation Improve Aboriginal Sustainability Strengthen Community Structure Tools Financial Contributions Jobs Training Business Opportunities Goal Capacity Building for Aboriginal Communities Partners Government Company Community

34 Industry-Based Aboriginal Workforce Development Approach Development Environment Recognize Aboriginal Rights & Unsettled Titles Greenfield De velopme nt Limited Industrial Employment & Business Skills in Aboriginal Population Limited Community Stability Establish Framework & Parameters for Aboriginal Participation Envir onm e ntal Assesment Impacts and Benefits Agreements Aboriginal Training and Employment Business Opportunities Community Investment Objective Optim ize Opportunities for Aboriginal Participation Project Planning Phase Construction Phase Operations Phase

35 VBNC s Aboriginal Employment Effort VBNC established hiring and workforce development programs aimed at maximizing opportunities for aboriginal participation in the construction phase of the project Established a Labrador-based team to oversee and implement employment and training commitments Embedded employment and training commitments in all contracts with companies working at the construction site Negotiated a collective agreement with construction trade unions to accommodate hiring priority in line with IBA commitments and a Labrador adjacency policy Worked with LIA, Innu Nation and LMN to establish a comprehensive skills inventory of their members interested in employment at the Mine and Concentrator site Monitored contractor performance and regularly intervened to ensure first priority given to aboriginal workers

36 Joint Voisey s Bay Employment and Training Authority (JETA) VBNC, Innu Nation, LIA, LMN and HRSDC worked collaboratively starting 2002 to establish and implement a pilot project to develop an aboriginal workforce for the Mine/Concentrator Project In September 2003 JETA was formed as a not for profit aboriginal controlled organization to meet the objective JETA contracted VBNC to provide Workplace experience for Innu, Inuit and Métis Training program delivery at the VBNC site Supplemental training and management support

37 Training and Employment Aboriginal Training and Employment Business Opportunities Community Inv estment Community and Institutional Training Site Training Operations Training for VBNC Organization Orientation Earthw orks Site Services Mine Safety Security Services Trades Helper Piping Mill Operations Cooks Helper Structural Steel Mining Operations WHMIS Catering Pre-Employment Phase Construction Phase Operations Phase

38 Aboriginal Training Initiatives Delivered HEO Simulator HEO Community Training Boom Truck/Forklift Training Blaster Workplace Training Concrete Training Plastic Pipe Fusion Oil Analysis Training Mill Operator Training Accommodations Fabrication & Installation Rock Drill Training Safety Training Security Training Workplace Orientation Camp Maintenance Supervisory Training Millwright Apprenticeship Bus Driver Training Instrumentation Crane Operation

39 Business Driven Partnerships All major and most minor Operations service contracts have been awarded to aboriginal firms Service Catering and Camp Services Site Services Security Air Transport Medical Services Shipping Support Fixed Equipment Maintenance Contractor Labrador Catering Ltd Torngait Services ASC Innu Security Ltd. Innu Mikun Ltd InnuMed Ltd Sikumiut Environmental Management Ltd. Iskueteu/ABB Ltd

40 Successes Aboriginal companies awarded procurement/construction contracts in excess of Cdn$500 million Construction phase used successfully to provide training and workplace experience for aboriginal workers More than 1,100 aboriginal employees involved in construction since 2002 At peak nearly 500 Innu and Inuit were working at the construction site - surpassing all expectations Exceeded aboriginal employment targets for start-up Innu and Inuit people comprise 50% of operations workforce All major operations contracts and 80% of operations procurement awarded to Aboriginal businesses

41 In Closing