Notice s. 36 (1) (a) of O. Regulation 419/05 made under the Environmental Protection Act

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1 Ministry of the Environment and Climate Change Ministère de l'environnement et de l Action en matière de changement climatique Notice number: Regulation 419 s. 36(1) (a) rv1 Reference number: 3643-A6BRXK Notice s. 36 (1) (a) of O. Regulation 419/05 made under the Environmental Protection Act To: Site: Vale Canada Ltd. 337 Power Street Copper Cliff, Greater Sudbury Ontario Canada P0M 1N0 Copper Cliff Smelter 18 Rink Street Copper Cliff, Ontario Canada P0M 1N0 Part 1: Definitions In this Notice, Act means the Environmental Protection Act. Company means Vale Canada Ltd. that is responsible for the construction or operation of the Facility and includes any successors in accordance with section 19 of the Act. Facility means the entire operation on the property where the Equipment is located referred to as the Copper Cliff Smelter Complex as defined in the environmental compliance approval. Notice means this Notice reference number rv1; Regulation means Ontario Regulation 419/05: Air Pollution Local Air Quality, made under the Act. Part 2: Legal Authority The legal authority that forms the basis for this Notice is set out in the following provision of Regulation: 36. (1) If the Director sets a site-specific standard under subsection 35 (1), the Director may give a person to whom the site-specific standard applies a notice, (a) altering the conditions imposed under subsection 35 (6);

2 (c) altering the period referred to in subsection 35 (9) so that it ends on a later date that is not more than 10 years after the date the period began; Part 3: Grounds for Notice In accordance with subsection 36 (2) of the Regulation, the Director provided a draft of this Notice to the Company and provided an opportunity for the Company to make written submissions to the Director during a thirty (30) days period. A copy of the correspondence is attached as Schedule A to this Notice. Part 4: Notice Requirements Pursuant to clauses 36 (1) (a) and (c) of the Regulation, I, the Director, amend the site-specific standard approval, approval number rv0, issued December 24, 2012, as follows: 4.1 The definition of Action Plan is revoked and the following substituted: (1) Action Plan means the document entitled Action Plan, originally dated December 20, 2011, and updated on October 23, 2012 and October 9, 2015 and submitted by the Company as part of its Request, including but not limited to the items summarized in Appendix 1 of this Approval. 4.2 The definition of Approval is revoked and the following substituted: (2) "Approval" means this site-specific standard approval, approval rv0 issued December 24, 2012 and amended, April 10, 2017 by Notice rv Paragraph vi of the definition of Request is revoked and the following substituted: vi. an Action Plan report dated December 20, 2011, updated on October 23, 2012 and October 9, 2015; 4.4 Table A of Appendix 1 is revoked and the table set out in Schedule B to this Notice is substituted. 4.5 The expiry date is June 30, A copy of the site specific standard approval, approval number rv0, as amended by this Notice, is attached as Schedule B. This Notice is issued this 10 day of April, Director Director, Section 36, O. Reg. 419/05 Standards Development Branch 2

3 NOTICE SCHEDULE A CORRESPONDENCE Vale Canada reply, dated January 12, 2017: Thank you for the chance to provide comments on the Draft Amended 1-hr and 24-hr SO2 Site-specific Standard documents for the Smelter Complex. We find the content to be satisfactory, and appreciate the extension of the timeline to allow for commissioning of the Wet Gas Cleaning Plant at the Smelter. The only changes we recommend are to replace the reference to Xstrata Canada Corporation in section (13) a) i) to INO-Glencore which I believe is their formal name currently, and also to include mention of Union Street station in section (13) a) ii) Monika Greenfield, M.Sc. Superintendent Environment Vale Environment Department Central Engineering Bldg, 337 Power St, Copper Cliff, ON P0M 1N0 T. (705) Monika.Greenfield@vale.com 3

4 NOTICE SCHEDULE B Approval for Site-specific Standards Issued Ministry of the Environment Pursuant to s.35(1) of O. Reg. 419/05 and Climate Change Approval Number: rv0 Ministère de l'environnement Reference Number: QFKA7 et de l Action en matière de Issue Date: December 24, 2012 changement climatique Expiry Date: June 30, 2018 Site-specific Standards Issued to: Vale Canada Ltd. Site Location: Copper Cliff Smelter 18 Rink Street, Copper Cliff Ontario P0M 1N0 DEFINITIONS - TERMS For the purpose of this site-specific standard approval for sulphur dioxide the following definitions apply: (1) Action Plan means the document entitled Action Plan, dated December 20, 2011, updated on October 23, 2012 and submitted by the Company as part of its Request, including but not limited to the items summarized in Appendix 1 of this Approval. (2) "Approval" means this site-specific standard approval, approval number rv0 issued December 24, 2012 and amended, April 10, 2017 by Notice rv1. (3) Company means Vale Canada Ltd. that is responsible for the construction or operation of the Facility and includes any successors in accordance with section 19 of the Environmental Protection Act. (4) Director means a person in the Environmental Sciences and Standards Division of the Ministry, appointed under section 35 of the Regulation under the Environmental Protection Act. (5) District Manager means the District Manager of the appropriate local district office of the Ministry where the Facility is geographically located. (6) Facility means the entire operation on the property where the Equipment is located referred to as the Copper Cliff Smelter Complex as defined in the Environmental Compliance Approval. 4

5 (7) Ministry means the ministry of the government of Ontario responsible for the Environmental Protection Act and includes all officials, employees or other persons acting on its behalf. (8) Ministry Review Report means the report dated October 2012 that provides a written review by Ministry staff of the Request by the Company for site-specific standards for sulphur dioxide. (9) measured levels is as set out in the Environmental Compliance Approval. (10) Regulation means Ontario Regulation 419/05: Air Pollution Local Air Quality under the Environmental Protection Act as amended from time to time. (11) Request means the request made under section 32 of the Regulation dated December 21, 2011, and submitted by the Company with respect to the sulphur dioxide, 24-hour average standard listed in Schedule 3 of the Regulation and includes, i. the request for site-specific standards dated December 14, 2011 and signed by Bruce Bichel, General Manager Smelting and Refining, Ontario Operations; ii. an Emission Summary and Dispersion Modelling Report dated March 31, 2011; iii. a Technology Benchmarking Report dated December 14, 2011; iv. a Public Consultation Report summarizing the public meeting (held on November 22-23, 2011); v. an Economic Feasibility Assessment Report dated November 28, 2011, vi. an Action Plan report dated December 20, 2011, updated on October 23, 2012 and October 9, 2015; vii. communication (via ) regarding the adjustment of timelines associated with the Clean Air Emission Reduction project, dated October 3, 2012; and viii. other supporting information. (12) SDB Director means the Director of the Ministry s Standards Development Branch. (13) "Sudbury Monitoring System" means a network of monitors and related equipment that measure ground level concentrations of sulphur dioxide within the City of Greater Sudbury and provides data to the Company and includes: a) any monitor identified on the maps in Appendix 2 which include the following monitors: i) Coniston, Garson, Hanmer, Skead, Wahnapitae, Sunderland, Edison and Parkinson (the monitors operated and maintained by Sudbury Integrated Nickel Operations, a Glencore Company); and ii) Kinsmen (former Mikkola location), Copper Cliff, Kelly Lake, Dozzi Park, Spruce St, Algonquin, Science North, Rayside, New Sudbury and the mobile sulphur dioxide monitor (the monitors operated and maintained by the Company); and b) any other such monitor identified in writing by the District Manager or the SDB Director. (14) sulphur dioxide means the contaminant identified by the Chemical Abstract System (CAS) number of

6 GROUNDS FOR APPROVAL In accordance with section 35 of the Regulation, A. I, the Director, am satisfied that: 1. The Request is consistent with subsection 32(1), paragraph 9 of the Regulation. 2. The requirements of section 32 of the Regulation have been met. 3. The Request satisfies the requirements of section 33 and other relevant portions of the Regulation. 4. The notification and holding of a public meeting and follow-up to the public meeting by the Company met the requirements of section 34 of the Regulation. 5. Sulphur dioxide is not listed in Schedule 6. B. Based on the above conclusions and the information that I have reviewed, including the Request, the Ministry Review Report and various interactions with the Company, I am of the opinion that: 1. The Company cannot comply with section 20 of the Regulation with respect to the sulphur dioxide standard of 275 µg/m 3 over 24 hour averaging period listed in Schedule 3 of the Regulation because it is not technically and economically feasible for the Company to comply. 2. For the applicable time period set out in Table 1 below, the site-specific sulphur dioxide standard is the minimum change necessary to enable the Company to comply with section 20 of the Regulation. 3. The conditions imposed are appropriate having considered the following as per section 35(12) of the Regulation: a. The nature of sulphur dioxide; b. The frequency with which the inability to comply with section 20 referred to in subclause 35 (1)(b)(i) of the Regulation would occur; and c. Whether there are any acute effects associated with sulphur dioxide. 4. There is no public interest reason sufficient to require denial of the Request. 5. Compliance with this Approval will result in improvements to reduce discharges to air. C. The Company was provided a copy of a draft of the Approval on June 25, 2012 and November 21, 2012 and provided an opportunity to make written submissions to the Director during the period that ended 30 days after the draft was given. SITE-SPECIFIC STANDARD(S) APPROVED Pursuant to s.35 (4), (4.1) and (5) of the Regulation, with respect to discharges from the Facility, references in the Regulation to a standard set out in Schedule 3 for sulphur dioxide shall be deemed, for the applicable time period set out in Table 1, to be references to the corresponding 6

7 site-specific standard set out in Table 1. A separate site-specific standard approval has been issued also for sulphur dioxide on a 1 hour average basis. Table 1: Site-Specific Standards for the Facility Contaminant Contaminant Chemical Abstract System No. Applicable Time Periods Site- specific Standard Site-specific Standard Averaging Period sulphur dioxide From the date of this Approval to June 30, µg/m 3 (0.33 ppm) 24-hour NOTES: µg/m 3 means micrograms per cubic meter; ppm means parts per million by volume CONDITIONS You are hereby notified that this Approval is issued to you subject to the conditions outlined below pursuant s.35 (6) of the Regulation. Please note that s.35 (7) of the Regulation states that the approved site-specific standard for sulphur dioxide for the 24 hour averaging period applies only if the following conditions are complied with. Condition 1: Sulphur Dioxide Emissions Measured Levels 1.1 Within 60 days of becoming aware of the circumstances described in Condition 1.2 or by such later date as the SDB Director may specify in writing, the Company shall submit a report to the District Manager and SDB Director that includes the following information: An analysis of what caused the concentration of sulphur dioxide to exceed the levels identified in Table 2 of this Approval; A review of whether or not the exceedence is likely to continue once the Action Plan has been implemented; An assessment of additional equipment, technical methods and operational measures that are available to further minimize the likelihood of measurements above the levels in Table 2; and 7

8 1.1.4 A proposed schedule to implement the actions identified in items and above. 1.2 The circumstances mentioned in Condition 1.1 are, A concentration of sulphur dioxide measured by a monitor in the Sudbury Monitoring System exceeds the level set out in Table 2; and In the preceding 12-month period from the date of the exceedence mentioned in Condition 1.2.1, the Sudbury Monitoring System measured at least one exceedence of sulphur dioxide levels set out in Table 2. Table 2: Measured Levels of Sulphur Dioxide Above Which Trigger Action Contaminant Contaminant Chemical Abstract System No. Applicable Dates Measured Level Averaging Period sulphur dioxide From January 1, 2017 to June 30, µg/m 3 (0.25 ppm) 1 hour Condition 2: Submission of Monitoring Results and Additional Monitoring 2.1 By no later than January 15, 2013 the Company shall install an additional sulphur dioxide monitoring station in the Little Italy community that is adjacent to the Facility at the location approved by the District Manager. 2.2 Commencing 3 months after implementation of the additional sulphur dioxide monitoring station, in the Little Italy community that is adjacent to the Facility, the Company shall submit on a quarterly basis beginning April 1, 2013, to the District Manager monitoring results for sulphur dioxide. Monitoring shall be done in accordance with the requirements of the Operations Manual for Air Quality Monitoring in Ontario (as amended). Condition 3: Written Summary of Action Plan Implementation 3.1 The Company shall prepare a written summary of the measures taken each calendar year to implement the Action Plan, including a description of each measure taken, the date of implementation of each measure taken and proposed dates for the implementation of measures yet to be taken. 3.2 Unless another date has been specified in writing by the SDB Director, the Company shall submit an electronic copy of the summary to both the District Manager and the SDB Director no later than March 31 of the year following the calendar year that is being summarized. 8

9 Condition 4: Environmental Management System and Community Engagement Report 4.1 Unless another date has been specified in writing by the SDB Director, the Company shall submit an electronic copy of the summary of the Environmental Management System and Community Engagement Report to both the District Manager and the SDB Director no later than March 31 of the year following the calendar year that the report was prepared for. REASONS FOR CONDITIONS Under subsection 35(6), the Director may impose conditions on a site-specific standard approval. Condition 1: Sulphur Dioxide Emissions Measured Levels Condition 1 was included in accordance with subsection 35(12) of the Regulation, to ensure that all the actions taken by the Company will result in minimizing exposure to sulphur dioxide which can lead to acute effects. The measured levels in Table 2 assessed in the Sudbury Monitoring System are similar to the levels currently referenced in the control order to the Company which expires December 31, This requirement is also intended to ensure that the Action Plan proposed by the Company will be effective in minimizing the frequency of exceedences of sulphur dioxide. Condition 2: Submission of Monitoring Results and Additional Monitoring Condition 2 was included to require the Company install an additional monitor in the community which will gather more accurate information to be submitted to the Ministry which can be used to assess the effectiveness of the Company s Action Plan to address exposure to sulphur dioxide. Condition 3: Written Summary of Action Plan Implementation; Condition 3 was included in accordance with subsections 35(7) and 35(8) of the Regulation to require the facility to provide follow up verification that steps outlined in the Action Plan are implemented and periodically reviewed to ensure continuous improvement to address exposure to sulphur dioxide. Condition 4: Environmental Management System and Community Engagement Report Condition 4 was included to ensure public involvement and transparency of the operating conditions of the Facility under the site-specific standard Approval. Awareness by the public of the actions taken or proposed to be taken by the Company will promote reduction of the frequency of exposures to sulphur dioxide which can lead to acute effects. (Note: the Environmental Management System and Community Engagement Report is described in the most recent Environmental Compliance Approval for the Facility). EXPIRY In accordance with s.35 (9) of the Regulation, this Approval shall expire on June 30, 2018 after which the standard set out in Schedule 3 to the Regulation for the 24-hour averaging period will apply to discharges of sulphur dioxide from the Facility. 9

10 The above noted Request is approved under Section 35 of the Regulation. DATED AT TORONTO this 10th day of April, 2017 "Originally Signed By" Director Ontario Regulation 419/05 Section 35 c: Tareq Al-Zabet, Assistant Deputy Minister, Environmental Sciences and Standards Division Ron Dorscht, District Manager (Acting), Ministry of the Environment, Sudbury Office Mitch Medina, Lisa Lanteigne, Monika Greenfield, Vale Canada Ltd. 10

11 Appendix 1: Summary of Action Plan Items Table A: Measures to Reduce Sulphur Dioxide Emissions Item Number Reduction Measures Description of Measure Install new nickel smelting converters with water cooled primary hoods and spray coolers. Install a new dedicated Wet Gas Cleaning Plant that will clean gases from the nickel smelting converters before they are sent to the acid plant. 1 Atmospheric Emissions Reduction (AER) Project- Process modifications and equipment installation. Modifications to the existing acid plant to better control SO 2 gas strengths and allow for more efficient operation. Install a SO 2 scrubber at the existing Weak Acid Treatment Plant. Install secondary hoods on the nickel smelting converters to capture fugitive SO 2 gases and install a secondary baghouse to remove particulate from the captured gases. For low strength SO 2 sources not suitable for an acid plant: Implement changes in the Fluid Bed Roasting area to increase SO 2 gas strength. Modify exhausts to allow for better dispersion of emissions from the furnace building roof. Redirect emissions from the Flashfurnace uptake vents to the Copper stack for better dispersion. 2 Operate the Emissions Reduction Program (ERP). Continue to operate the existing ERP, curtailing production as required to keep the ground level SO 2 concentrations in the community below the levels in Table 2. 3 Combined Analysis of Modelling and Monitoring study. Completion of the second Combined Analysis of Modelling and Monitoring study to try to better correlate measured to modelled results in the community. 11

12 Item Number Reduction Measures Description of Measure 4 Review and enhance ERP to control SO 2 emissions post AER project. Review and enhance ERP to control the few SO 2 emissions sources remaining after finalizing the Clean AER project. 5 Installation of a new continuous SO 2 monitor in Little Italy. Installation of a new continuous SO 2 monitor in Little Italy. 6 Following completion of Clean AER project perform source testing and conduct a Combined Analysis of Modelling and Monitoring study to verify the accomplishments of the AER and enhanced ERP. Following completion of Clean AER project perform source testing and conduct a Combined Analysis of Modelling and Monitoring study to verify the accomplishments of the AER and enhanced ERP. 12

13 Appendix 2: Map of the Greater Sudbury Monitors Page 13

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