Operations Mine Site, Tote Road and Railway

Operations Mine Site, Tote Road and Railway

2 Panel Members Michael Anderson Richard Cook John Binns Fernand Beaulac Steve Walker Mike Lepage Michael Sheahan

3 The Panel will address: FEIS Volumes 3, 5, 6 and 7 Project summary and operations: Mine Site Railway Tote Road to Milne Inlet Steensby land facilities Project schedule Environmental aspects Mitigation measures

4 Key NIRB Issues The panel will also address the following key issues identified by NIRB: Issue (a) Alternatives analyses associated with proposed railway routing Issue (b) Design considerations for construction and operation of a railway under arctic conditions, including management plans for mitigation of potential impacts to caribou and terrestrial wildlife (overlaps with the Terrestrial Wildlife and Birds Panel)

5 Key NIRB Issues Issue (c) Potential impacts from proposed mining and quarrying activities, including dust dispersion from the transport and storage of waste rock and ore, and impacts to water quality from acid rock drainage

Overview of Mine Site, Tote Road and Railway to Steensby 6

7 Project Schedule Construction schedule estimated 4 years Operation schedule estimated 21 years Closure schedule 3 years followed by post-closure monitoring until objectives are met

Environmental Aspects 8 Addressed by the Panel Project components that potentially affect: Land forms, soil and permafrost Atmospheric Environment Freshwater quantity and quality Freshwater fish habitat Reclamation and closure addressed by project component (mine, rail and Steensby port, tote road and Milne port)

Environmental Design Guidelines 9 The Project design: minimizes the interactions of the Project with the natural environment Includes measures to minimize potential effects (FEIS Volume 10, Section 3.0 Environmental Design Guidelines)

Mine Site 10

11 Mine Site Components Open pit & waste rock stockpile Primary & secondary crushing Crushed ore stockpile with stacker/reclaimer Rail car load out Maintenance facility-mobile equipment Explosives plant & magazines Water management channels and ponds Accommodation camp and infrastructure Airstrip

Mine Site 12

Railway-Operation 13

Arcelor Mittal`s Mont Wright Mine 14

Arcelor Mittal`s Mont Wright Mine 15

Arcelor Mittal`s Mont Wright Mine 16

17

18 Mine Site - Landforms Permafrost design considerations for construction of infrastructure Standard strategies in design of waste rock stockpiles and stormwater ponds (avoidance of thaw sensitive soils, maintain drainage, insulate from permafrost, etc.) Questions from NRCan regarding maintaining frozen conditions in the waste rock pile addressed in the Waste Rock Management Plan

19 Mine Site Atmospheric Environment Emissions from the power plant, mobile equipment and incinerators will follow best practices and meet guidelines Dust control measures Use best management practices Enclosure of primary crusher Enclosed conveyors and transfer points Minimize drop distances at open discharge points Air and noise modelling in FEIS Meets established thresholds for occupational health and air quality Is highly conservative

20 Mine Site Water Quality Water quality is regulated by: Metal Mining Effluent Regulations Type A Water Licence The Project (including ARD potential) is not expected to have a significant impact on water quality during operations and closure

21 Mine Site Water Management No process water or tailings pond discharges Runoff from ore and waste rock piles will be directed to sedimentation ponds Discharges will meet established effluent criteria under MMER and Water Licence Work to date indicates water treatment will not be required On-going waste characterization and monitoring program established Contingency treatment plant would be installed, if necessary

Mine Site Water Management 22

23 Mine Site ARD/ML assessment Acid Rock Drainage and Metal Leaching (ARD/ML) Assessment Considerable work completed to date and ongoing Waste characterisation study: 2012-2014 ongoing for life of mine A small proportion of the waste rock (15%) has been classified as potentially acid generating (PAG) Ongoing kinetic testing of PAG has not created acidic conditions to date Waste Rock Management Plan, to be approved as part of the Water Licence, includes provisions to manage PAG to limit impacts to water quality

24 Mine Site Fish Habitat An accounting of the proposed Harmful Alteration, Disruption and Destruction (HADD) of Fish Habitat presented in the FEIS Ongoing discussions with DFO on the HADD and on potential fish compensation measures Expected to continue into permitting phase (Fisheries Authorization)

Railway 25

26 Railway Key facts 149 km of railway track 4 train sets with 2 locomotives and 110 cars each Average speed 30 to 40 km/hr 6 round trips per day

27 Federally regulated Railway - Regulatory Certificate of Fitness (Canadian Transportation Agency) Authorization to Construct and Operate the Railway (Article 98, Canadian Transportation Act Transport Canada)

28 Railway Factors Considered for Alternatives Terrain Topography Distance Environmental considerations

Railway Alternative Routes 29

Railway-Design and Construction 30 Based on design of other arctic railways (e.g., Russia, Sweden, Tibet) Minimize thawing of sensitive soils Minimize cuts into soils (increased fill instead) Minimize disturbance to natural drainage Maximize winter construction of embankment base Limited grades and avoiding tight curves Regular performance monitoring and maintenance Caribou and snowmobile crossing locations

Railway-Design and Construction 31

Railway-Operation 32

Railway-Operation 33

Railway Quarry Management 34 All quarries will be tested for ARD/ML Any proposed quarries with potential ARD will not be developed A quarry management and closure plan will be developed for each quarry (Quarry Permit Requirement)

35 Railway - Atmospheric Environment Emissions from the locomotives will meet regulatory standards Based on specific gravity and particle size of the ore, dust from rail cars is minimal and confined to first few km from Mary River This was also the experience from Baffinland s 2008 bulk sample, and at other iron ore mines Baffinland committed to monitoring dust emissions from rail cars near the mine site, early in the project

36 Railway Stream Crossings Features to promote fish passage incorporated into the design of stream crossings; will continue to discuss with DFO Monitoring of fish passage is proposed Closure plan for decommissioning watercourse crossings will be developed Will continue to address details with DFO in ongoing permitting discussions

Steensby Port 37

38 Steensby Port Key Facts Optimal conditions for a deep water port Rail car unloading Lump & fine ore stockpiles Ore and freight docks Ship loading facilities Bulk fuel tank farm Freight and fuel deliveries Airstrip Rail maintenance shop Worker accommodation

Railway-Operation 39

Steensby Port 40

Steensby Port 41

Steensby Port Landforms, 42 Soils & Permafrost Principally rock outcrops and not thaw sensitive Conventional building techniques on predominantly rock No major challenges

43 Steensby Port Atmospheric Environment Emissions from the power plant, mobile equipment and incinerator will follow best practices and meet guidelines Dust control measures Enclosure of rotary car dumper; tertiary crushing and screening in closed building; enclosed conveyors Fine ore stockpile positioned in the lee of the lump ore stockpile Minimize drop distances at open discharge points Air Quality and noise modelling Meets established thresholds for occupational health and air quality Assumptions used in model are highly conservative

44 Steensby Port Freshwater Quality and Biota No discharges (sewage, stockpile runoff) to the freshwater environment Minor losses of fish habitat No major issues

45 Steensby Port Marine Water Quality & Biota Dredging and discharge of dredge material from dock areas under EC permit All discharges (sewage, stockpile runoff) are to the marine environment Minor losses of fish habitat

46 Milne Inlet Tote Road and Port MILNE PORT MILNE INLET TOTE ROAD MINE SITE

47 Milne Inlet Tote Road and Port Activities limited to construction period Existing facilities used during construction, to transport supplies to Mary River Used occasionally during operations to deliver oversized equipment to Mary River Effects to landforms, air quality and freshwater are low level and short-term

48 Project Monitoring and Mitigation Plans Atmospheric Environment Air quality and Noise Abatement Management Plan Freshwater Surface Water and Aquatic Ecosystems Management Plan Fresh Water Supply, Sewage and Waste Water Management Plan Waste Rock Management Plan Monitoring required under water use license Freshwater Fish Habitat Fish Habitat Compensation Plan MMER Environmental Effects Monitoring Study Design Framework

49 Closure and Reclamation - Guidance The Aboriginal Affairs and Northern Development Canada (AANDC) 2002 Mine Site Reclamation Policy for Nunavut Qikiqtani Inuit Association - Abandonment and Reclamation policy guiding principles and stated assumptions. A Preliminary Mine Closure and Reclamation Plan (MC&RP) is presented in FEIS Vol 3, Appendix 3B (Type A Water Licence Application) MC&RP will be approved by the Nunavut Water Board, and updates required by Water Licence The Preliminary MC&RP addresses all project related activities and infrastructure and provides a cost estimate for the final mine closure

Closure and Reclamation Closure Activities Final closure and reclamation will include: removing all infrastructure, equipment and materials either off-site, to the open pit, or to an on-site landfill Removal of all water crossings Re-establishment of natural drainage patterns and promote natural re-vegetation Ensuring physical and chemical stability of permanent facilities: pit, waste rock piles, rail embankment Ensuring acceptable water quality of waste rock pile runoff and pit lake overflow 50

Waste Rock Dump and Pit at End of Life 51

52 Closure and Reclamation Post-closure Closure activities are expected to take 3 years Post closure monitoring will continue until closure objectives have been met The facilities remaining after closure will be the open pit, waste rock stockpile, and railway embankment No long-term active maintenance of any of the facilities is expected to be required

Closure and Reclamation Stakeholder Engagement 53 Baffinland has committed to establish an advisory group focused on reclamation of the Project that will allow for community input and involvement, including consultation with Community Land and Resources Committees

54 Closure and Reclamation - Costs Closure and reclamation costs are estimated at $518M Inuit Owned Land - $411M Federally Owned Land - $107M Security for closure and reclamation costs will be addressed under the Water Use Licence, Land Use Permits (federal lands) and Commercial Lease (Inuit Owned Lands)

55 Going Forward Baffinland commitments Response to recommendations in Written Submissions.