DE BEERS GAHCHO KU MINE ROCK WORKSHOP Tree of Peace, Yellowknife - - PowerPoint PPT Presentation

Tree of Peace, Yellowknife 8:30-4:30 December 13, 2017

DE BEERS GAHCHO KUÉ MINE ROCK WORKSHOP

1 The De Beers Group of Companies

Time Item 8:45 Welcome and Introductions 9:00 Updated Project Description 2018 10:00 Break 10:30 Mine Schedule & Water Management 11:30 Summary of Changes 12:00 Lunch 1:00 Air Quality & Wildlife 1:30 Water & Aquatic Life 2:30 Break 3:00 Water & Aquatic Life, Offsetting 3:45 Summary & Regulatory Process 4:30 Adjourn

MINE ROCK WORKSHOP AGENDA

2 The De Beers Group of Companies

2005 Application for a Type A Land Use Permit and Water Licence 2006 Environmental Assessment and Environmental Impact Review 2010 Environmental Impact Statement submitted 2013 Responsible ministers approved the Project 2013 Updated Project Description (screened) 2013 Early Earthworks Land Use Permit 2014 Type A Land Use Permit and Water Licence 2015 Various Inspector approvals for mine footprint adjustments 2017 Land Use Permit Amendment #1 for Jet Fuel (screened) 2017 Land Use Permit Amendment #2 for Fine PK Facility (screened) 2018 Water Licence and Land Use Permit Amendment for additional mine rock

REGULATORY HISTORY

3 The De Beers Group of Companies

• Gahcho Kue is owned by a Joint Venture Partnership
• De Beers (51%)
• Mountain Province Diamonds (49%)
• Located 280 km northeast of Yellowknife, 140 km

from Lutsel K’e

• Open Pit Mine
• 5034 Pit
• Hearne Pit
• Tuzo Pit
• 2 Years of Construction
• 11 Years of Operation
• 2 Years of Active Closure
• 12-20+ Years of Re-filling Kennady Lake

GAHCHO KUÉ MINE

4 The De Beers Group of Companies

GAHCHO KUÉ MINE PLAN

5034 Hearne Tuzo South Mine Rock Pile West Mine Rock Pile CPK Fine PK Facility

5 The De Beers Group of Companies

• Construction 2 years completed (2014-2016)
• De-watering completed (18.65 Mm3/year)
• Downstream flow mitigation initiated in 2017
• Operations Year 1 completed
• AN Building under construction
• Dyke construction continues
• Mining in 5034 pit continues ~ 80m deep
• Pre-stripping of Hearne Pit scheduled for 2018
• Annual discharge WMP to N11 (3.45 Mm3/year)

2017: YEAR 2 OPERATIONS UPDATE

6 The De Beers Group of Companies

PROJECT OJECT DESCRIPTION DESCRIPTION PROJECT OJECT DESCRIPTION DESCRIPTION

7 The De Beers Group of Companies

• 5034 Pit has joint sets on the eastern wall
• A jo

join int is a break (fracture) of natural origin in the continuity of the rock

• A jo

join int set set is a family of parallel, evenly spaced joints

• When jo

join int set ets are blasted, the blast pattern is affected

• Rock is not only breaking along vertical blast lines, but

also along the joint sets

• Issue extends to Tuzo and Hearne
• Result is a reduction of the catch benches – leading to a

safety issue for our workers below

A NEW CHALLENGE – JOINT SETS AT 5034 PIT

BFA 85°

90°

BFA 70°

2m 6m 24m

Planned break-back Actual break-back

8 The De Beers Group of Companies

BENCH WIDTHS MUST BE PRESERVED FOR SAFETY

9 The De Beers Group of Companies

HOW WILL THE PITS CHANGE AS A RESULT?

Pit it (Worst Case) e) 2013 13 UPD UPD (ha) 2018 18 UPD UPD (ha) 5034 41 50 Tuzo 43 50 Hearne 24 32 Total 108 132

• Pit wall slopes will decrease
• Planned case: 41°-50° slopes
• Worst case: 41° east wall slopes

10 The De Beers Group of Companies

WHERE TO PUT THE EXTRA ROCK?

• Planned case = 65 Mt
• Worst case = 100 Mt
• Alternatives Analysis conducted to

examine each potential option

• Parameters considered:
• Containment within Controlled Area
• Minimize footprint on land
• Minimize footprint in water
• Close to pits
• Minimize height increase
• Technical feasibility

11 The De Beers Group of Companies

WEST MINE ROCK PILE – OPTION A

Op Option A Capacity 130 Mt Height Increase 35 m Total Height 135 m Proximity to pits Close Land increase 7.8 ha Water increase 54.9 ha

• Additional capacity for

underwater PAG storage

• Drainage watercourse

required at closure

12 The De Beers Group of Companies

• Sufficient space for

130 Mt

• More impact on land
• Close to pits
• Less underwater

storage of PAG

• Requires 1 drainage

watercourse to be constructed at closure

• Close to Controlled Area

Boundary

• Odd configuration

difficult for large trucks

• Pile up to 35m higher

WEST MINE ROCK PILE – OPTION B

Op Option B Capacity 130 Mt Height increase 35 m Total height 155 m Proximity to pits Close Land increase 23.5 ha Water increase 40.4 ha

• Additional capacity for PAG

storage

• Odd configuration makes it

difficult for large trucks

• Drainage watercourse

required at closure

13 The De Beers Group of Companies

MINE ROCK COVERED COARSE PK PILE – OPTION C

Option

• n C

Capacity 35 Mt Height Increase 70 m Total Height 100 m Proximity to pits Far Land Footprint 32.4 ha Water Footprint 14.3 ha

• Insufficient space

14 The De Beers Group of Companies

NEW MINE ROCK PILE IN AREA 6 – OPTION D

Option

• n D

Capacity 95 Mt Height Increase 95 m Total Height 95 m Proximity to pits Close Land Footprint 60 ha Water Footprint 24 ha

• New mine rock pile
• Insufficient space
• could not restore natural

drainage from E lakes during closure

15 The De Beers Group of Companies

OTHER OPTIONS CONSIDERED – AREA 7

Ot Other er Op Opti tions at Ar t Area ea 7 Option 1: South of Area 7

• majority on land

Option 2: South of and including Area 7

• cover both land and water
• Limited height due to

airstrip flight obstacle limitations

• Option 2 would limit

Kennady Lake reconnection at closure

• Both Option 1 and 2 are

“No-go” options

16 The De Beers Group of Companies

WEST MINE ROCK PILE – FINAL SELECTED AND REFINED OPTION

Selecte ted and Refined ed Op Option Capacity 130 Mt Height increase 35 m Total height 135 m Proximity to pits Close Land increase 7.1 ha Water increase 55.4 ha

• Options A/B
• Additional capacity for

underwater PAG storage

• Drainage watercourse

required at closure

17 The De Beers Group of Companies

HOW DOES THIS AFFECT OTHER ASPECTS OF MINE DEVELOPMENT?

18 The De Beers Group of Companies

Ope peration ional al

• Larger west mine rock pile
• Increased footprint
• Adjustments to planned discharge
• Discharge from Water Management Pond to N11 in Year 4
• Discharge from Area 7 to Area 8 periodically
• Additional mining equipment and operating hours
• Additional camp occupancy
• Increased annual camp water intake
• 7 months longer life of mine
• Adjustments to scheduling

Closure re

• Longer to refill Kennady Lake at Closure (19 years +)
• Watercourse required for closure to reconnect Watershed D to Kennady Lake

KNOCK-ON EFFECTS

19 The De Beers Group of Companies

LARGER WEST MINE ROCK PILE DESIGN

Design gn Land (ha) a) Water (ha) a) Total (ha) Height ght (m) m) PAG <420 20.7 .7 masl masl (Mt) t) 2013 41.7 39.6 81.3 100 3.4 2018 48.8 95.0 143.8 135 10.8

2013 2018

20 The De Beers Group of Companies

INCREASED FOOTPRINT

2012 Footprint = 1,235 ha 2013 Footprint = 1,172 ha 2017 Approved Footprint = 1,265 ha 2018 Proposed Footprint = 1,288 ha 2018 LUP Amendment = 23 ha  Footprint within the Controlled Area  Expansion of Mine Rock Pile managed mostly within the existing footprint

21 The De Beers Group of Companies

• Discharge from WMP to N11 in Year 4
• 3.45 Mm3/ year
• Option exits in water license (Part G, item 34)
• Amendment application will include an EQC Evaluation

report

• Discharge from A7 to A8
• 1.1Mm3 four times during Life of Mine
• Described in UPD 2013
• May require adjustment to Water Licence to specify

discharge location

• Amendment application to propose EQC from A7 to A8

ADJUSTMENTS TO PLANNED DISCHARGE Lake N11 Diffuser

22 The De Beers Group of Companies

ADDITIONAL MINING EQUIPMENT AND OPERATING HOURS

Equip ipment ment Type pe 2013 13 Assessm essment ent Hours 2018 18 Assessm essment ent Hours Haul Trucks 74,391 122,006 Shovels 11,200 24,060 Other 155,970 173,433 Total 241,561 319,499

23 The De Beers Group of Companies

CAMP OCCUPANCY

Total by Labour Source 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 De Beers Canada Employees 417 482 484 484 484 484 481 438 417 377 314 220 Long Term Contractors 145 143 143 143 143 143 143 139 126 122 112 76 Temporary Contractors 48 38 38 38 38 38 38 38 38 38 38 38 Total 609 663 665 665 665 665 662 615 581 537 464 334 Camp Occupancy 312 338 339 339 339 339 337 315 299 278 240 177

2013 Updated Project Description anticipated 170 people at site during Operations (372 FTE) 2017 Operations currently requires 334 people at site (due to ongoing construction projects) 2019 Peak Operations planning for 339 people at site (665 FTE) *currently have 389 rooms at site; re-configuring site to create another 41 = 430 rooms

24 The De Beers Group of Companies

INCREASED CAMP WATER INTAKE

• W.L. Limit = 27,000 m3/year
• W.L. Amendment ~36,000 m3/year
• Increase ~9,000 m3

25 The De Beers Group of Companies

MINE SCHEDULE ADJUSTMENTS & WATER MANAGEMENT

26 The De Beers Group of Companies

OPEN PIT MINING SCHEDULE AND MINE ROCK TONNAGE UPDATE

27 The De Beers Group of Companies

Key Obje ject ctiv ives: es:

• Dewat

ater er Ken ennad ady Lake e to the m e maxim imum um exten ent po possibl ible e to safely access and mine the ore bodies

• Utilize pa

passiv ive e treat eatment ment in in the c e controlled

• lled area

ea and di disch char arge ge water er when en the w e water er qualit ity mee eets s di discharge arge requi equirem rement ent

• Utilize available

ailable con

• ntainm

ainment ent vol

• lumes

umes wit ithin in the e con

• ntrolled
• lled ar

area ea for

• r wat

ater er man anageme agement nt as as required equired, e.g., the mined-out pits for water storage

• Min

inim imiz ize e en envir ironment

• nmental

al impac impacts to adjacent and downstream waters during construction, operations, and closure phases of the Project

• Re

Re-est establis ablish a flow w reg egim ime e and d sel elf-sus sustain tainin ing g ec ecosy

• syst

stem em in the refilled Kennady Lake after closure

WATER MANAGEMENT

28 The De Beers Group of Companies

Dyke e G Dyke e H

WATER MANAGEMENT – OPERATIONS

• Discharge water from

WMP to Lake N11

• Pumping water from A1

to A8

• Pumping water from

Lake N11 to A8

• Pumping Water from A7

to A8

29 The De Beers Group of Companies

Dyke e A Dyke I Dyke e K Dyke e L Dyke e J

Dyke E Dyke C Dyke D

PROJECTED WATER LEVEL IN EACH AREA DURING OPERATION

Max. . Op Operatin ing g W.L.

• L. at Area 7: 420.7 m

m Max. . Op Operatin ing g W.L.

• L. at WMP:

: 422.7 m m Max. . Op Operatin ing g W.L.

• L. at Area 2: 427.6 m

m Max. . Op Operatin ing g W.L.

• L. in Mined-out Hearne

Pit wit ith Dyke N: 417.0 m m WMP Discharges rges Area 7 F Flow w Mitig igatio tion Discharges rges Proposed ed Year 4 D Discharge rge

30 The De Beers Group of Companies

Dyke e A Dyke I Dyke e K Dyke e L

Dyke E Dyke C Dyke D

REMAINING WATER STORAGE CAPACITY IN EACH AREA

Dyke e K Constru ruct ction

• n

Area ea 4 D Dewaterin ering Dyke e M Constru ruct ction

• n

Hearne ne Pit Mined Out Out 5034 Pit Mined Out Out Dyke e N Constru ruct ction

• n

Total Remaining g Capacity Area ea 3/5 R Remai maining g Capacity Area ea 6/Hearn rne e Remai maining g Capacity ty

31 The De Beers Group of Companies

MINE ROCK PLACEMENT SCHEDULE AND TONNAGE ADJUSTMENT

32 The De Beers Group of Companies

FINE PK PLACEMENT SCHEDULE AND TONNAGE ADJUSTMENT

33 The De Beers Group of Companies

COARSE PK PLACEMENT SCHEDULE AND TONNAGE ADJUSTMENT

34 The De Beers Group of Companies

Dyke e G Dyke e H Dyke I

WATER MANAGEMENT – FINE PKC FACILITY

• Y1 Operating water level in Fine PKC Facility:

420.0 ~ 421.5 m

• Y3 Operating water level in Fine PKC Facility:

424.0 ~ 425.0 m

• Y5-Y6 Operating water level in Fine PKC

Facility: 426.5 ~ 427.6 m

• Y7 to Closure – Water level will be lowered

and diverted to WMP

• To maintain the minimum freeboard

requirement in ine PKC Facility as per Gahcho Kue Type A Water Licence, Area 2 north P-berm will be required.

35 The De Beers Group of Companies

Dyke e G Dyke e H Dyke I

WATER MANAGEMENT – CLOSURE

• Breach Dykes B, E, F, G, J, K, N
• Refilling with natural runoff and

supplemented with pumping water from Lake N11

• Refilling Kennady Lake to original

water level (420.7 m) and breach Dyke A to reconnect water flow to Area 8

36 The De Beers Group of Companies

SUMMARY OF CHANGES TO PROJECT DESCRIPTION & WATER LICENCE

37 The De Beers Group of Companies

Characteris risti tic 2013 (Upd pdate ted d Project t Descriptio iption) 2018 2018 (Mine Plan Upd pdate) e) Project ct Schedule ule

• Construction: 2 years
• Operations: 11 years
• Closure (interim): 2 years
• Closure: 12 to 23+ years
• Construction: 2 years
• Operations: 11.6 years
• Closure (interim): 2 years
• Closure: 19 to 30+ years

Mine sequence Hearne, 5034, and Tuzo 5034, Hearne, and Tuzo Produ duction tion rate 3 Mt of ore per year 3.15 Mt of ore per year Surface ce Disturb rbance e (mine footprin print) t) • Total = 1,172 ha

• Total = 1,288 ha

Pit depth ths

• Hearne Pit = 252 m
• 5034 Pit = 310 m
• Tuzo Pit = 360 m
• Hearne Pit = 216 m (up to 252m)
• 5034 Pit = 286 m (up to 310m)
• Tuzo Pit = 372 m (up to 372)

Total Amount of Mine Rock Rock

• 300 Mt
• 400 Mt

Placement t of Mine Rock Rock

• West Rock Pile = ~100 Mt
• South Rock Pile = ~100 Mt
• Mined-out 5034 Pit = ~85 Mt
• Mined-out Hearne pit = ~15 Mt
• West Rock Pile = ~228 Mt
• South Rock Pile = ~100 Mt
• Mined-out 5034 Pit = ~72 Mt
• Mined-out Hearne pit as contingency Storage Area

Height t of Mine Rock Pile les

• West Mine Rock Pile = ~100 m
• South Mine Rock Pile = ~120 m
• West Mine Rock Pile = ~135 m
• South Mine Rock Pile = ~120 m

Categories ries of Processed sed Kimberlite berlite (PK)

• coarse PK (including grits) = 0.25 to 6 mm
• fine < 0.25 mm
• No change

Total Amount of PK

• coarse (plus grits) = 23.4 Mt
• fine = 10.0 Mt
• coarse (plus grits) = 22.6 Mt
• fine = 12.1 Mt

38 The De Beers Group of Companies

Characteris risti tic 2013 (Upd pdate ted d Project t Descriptio iption) 2018 2018 (Mine Plan Upd pdate) e) Pl Placem emen ent t of Fine e PK PK

• Fine PKC Facility Area 2
• Mined-out Hearne Pit
• No change

Placement of Coarse PK

• Coarse PK Pile
• Dyke construction and reclamation
• Mine Rock Piles
• Mined-out 5034 and Hearne Pits
• No change

Dewatering ering of Kennady dy Lake

• Water discharge to N11
• Contingency for winter pumping
• No Change
• Dewatering of Kennady Lake completed in 2016

Water Diversio ions

• De Beers has committed to look for opportunities to

restore Area 7 earlier in the mine plan

• No Change

Water Management

• Diversion of clean water from Lake N11 or other

sources (e.g., WMP, if quality is adequate) to augment Area 8 flow (i.e., downstream flow mitigation

• Diversion of clean water from Lake N11 or other

sources (e.g. Area 7 if quality is adequate) to augment Area 8 flow (i.e., downstream flow mitigation) Infra rastr tructur ture

• Variation in airstrip alignment
• Designated waste management area
• Slight variation in fuel storage area
• Slight variation in the location and alignment of the

AN storage and emulsion plants

• Minor updates in layout at camp
• No new footprint

Closure re

• De Beers has committed to look for opportunities to

restore Area 7 earlier in the mine plan

• Refilling of Kennady Lake extended to approximately

12 years

• No Change
• Refilling of Kennady Lake extended to approximately

19+ years by using natural runoff and supplemental flows from Lake N11

39 The De Beers Group of Companies

SUMMARY OF W.L. AMENDMENT CHANGES

W.L.

• L. Reference

ce W.L.

• L. 2005L2-0015

0015 2014 2014 W.L.

• L. 2005L2-0015

0015 2018 2018 Water Use for camp Schedule 3 Part D, Item 1. b 27,000 m3 36,000 m3 Source of downstream flow mitigation Scope i.v.) operational discharge of effluent from the Water Management Pond to Lake N11 and Area 8 of Kennady Lake xxii) operational discharge of collection pond water from Area 7 to Area 8 of Kennady Lake EQC for A7 Part G, Item 31 Specific to discharge from WMP to A8 Allowance for discharge from A7 to A8 EQC for Lake N11 Part G, Item 30, 34 Table of values Table of updated values incorporating extended discharge

40 The De Beers Group of Companies

SUMMARY OF ENVIRONMENTAL EFFECTS

41 The De Beers Group of Companies

• Overview of Changes to the Mine Plan included

in the WL Amendment

• Valued Components
• Assessment Approach
• Key Components
• Air Quality
• Wildlife
• Water and Aquatic Life
• Offsetting

ENVIRONMENT TOPICS

42 The De Beers Group of Companies

EI EIS, , 2012

How does this amendment interact with the Environment?

• Increased footprint and height of the West

mine rock pile

• Reduction in the size and volume of the

WMP

• Increased people, equipment and operating

hours

• Increased annual water withdrawal
• Extended period of time that Kennady Lake

takes to refill

ENVIRONMENT – PROJECT CONTEXT 2017 2018 18

43 The De Beers Group of Companies

Environment VCs consistent with the EIS:

• Aquatic Life
• Water Quality
• Fish (Lake Trout, Arctic Grayling, and Northern

Pike)

• Wildlife
• Caribou
• Other Ungulates (Muskox and Moose)
• Carnivores (Grizzly bear, Wolf, and Wolverine)
• Birds and Species at Risk

VALUED COMPONENTS

44 The De Beers Group of Companies

APPROACH TO EVALUATE POTENTIAL FOR ENVIRONMENTAL EFFECTS

Review the Amendment Updates in the Project Description Identify New or Changed Activity on The Mine Landscape that Could Potentially Affect The Environment VCs Using the Pathway Analysis Approach Evaluate Potential for Environmental Effect Accounting for Existing Environment and Mitigation Determine the Pathway Level Primary Pathway No Linkage or Secondary Pathway

Ra Rati tionale

• nale :
• Identifies areas of risk
• Can guide mitigation
• Measurable
• Consistent
• Technically defensible

(based on science and research)

• Answers the “so what?”

question

Comprehensive Analysis Analysis Conclusions

Effect on a VC Amendment Activity Change in Environment

45 The De Beers Group of Companies

Primary Effects Analysis Focus:

• Air Quality
• Wildlife
• Water Quality

POTENTIAL FOR ENVIRONMENTAL EFFECTS

46 The De Beers Group of Companies

AIR QUALITY

47 The De Beers Group of Companies

AIR QUALITY – SUMMARY OF KEY CHANGES AND ASSESSMENT

• Primary Changes in this amendment
• Additional equipment
• shovel(s), trucks and dozers
• Increased operational activity
• operational hours
• Concentration of activity between pits and West Mine Rock

Pile in the central part of footprint

• Assessment focused on parameters of concern:
• NO2, TSP, and PM2.5
• Re-assessment conducted with CALPUFF Model
• Model predictions updated with increased equipment, new haul

routes, and operating hours

48 The De Beers Group of Companies

RESULTS – AIR QUALITY – 2018 VS 2012 PROJECTIONS

Annual Max NO2 Annual Max TSP Annual Max TSP Deposition 24-hr Max PM2.5

2018 2012 2012 2012 2012 2018 2018 2018

49 The De Beers Group of Companies

RESULTS – AIR QUALITY

Pa Parame meter Period

• d of Measure

NWT Propos

• sed

ed Standar ard 2012 12 Predict ction ion 2016 6 Measur ured ed 2018 8 Predict ction ion

NO2

1-hour Maximum [µg/m³] 400 314.8

• 318.9

24-hour Maximum [µg/m³] 200 224.4

• 254.7

30-day Maximum [µg/m³] N/A N/A 6.5 N/A Annual Maximum [µg/m³] 60 62.1

• 57.6

TSP

24-hour Maximum [µg/m³] 120 1,308 116.9 1,024 Annual Maximum [µg/m³] 60 278.1 6.8 95.9

PM2.5

24-hour Maximum [µg/m³] 28 137.7 23.6 115.5 Annual Maximum [µg/m³] 10 N/A 2.6 17.8

Dust

Maximum TSP deposition [mg/dm2/30 d) N/A 207 49 69

50 The De Beers Group of Companies

AIR QUALITY ASSESSMENT SUMMARY

Predicted changes expected as a result of moving additional mine rock

• Outcome of the WL amendment assessment

unchanged from 2012 update

• Some concentrations slightly elevated (1-hr and 24-

hr NO2), others reduced

• Distribution of emissions expected to occur over a

similar area

• Monitoring, Adaptive Management and Mitigation

Plans (e.g., AQEMMP) currently in place are appropriate for use in 2018 and in future years

51 The De Beers Group of Companies

WILDLIFE ASSESSMENT

52 The De Beers Group of Companies

WILDLIFE – MEASURES RESULTING FROM EIS DECISION

Wildlife Measure WL Amendment Compliance

Measure 1: De Beers will:  Minimize impacts to caribou and the extent of the zone of influence around the mine site to the extent that is technically feasible.  Prior to construction, develop a caribou protection plan that ensures protection of caribou and caribou habitat. The caribou protection plan should include an adaptive management framework demonstrating how the Wildlife Effects Monitoring Program and the Wildlife and Wildlife Habitat Protection Plan are linked. Changes in Mine activities associated with the WL Amendment will be captured by the existing Mine Wildlife Mitigation and Monitoring Programs (WWHPP and WEMP) for continued Measure compliance

53 The De Beers Group of Companies

WILDLIFE – MEASURES RESULTING FROM EIS DECISION

Wildlife Measure WL Amendment Compliance

Measure 2: De Beers will:  Construct and operate the winter access road in a way that minimizes its adverse effects as a partial barrier to caribou movement and migration;  Monitor to determine the presence and behaviour of caribou along the winter access road using different methods in addition to satellite collar data, such as track counts and visual observations; and  Ensure that the caribou protection plan, the Wildlife Effects Monitoring Program and the Wildlife and Wildlife Habitat Protection Plan address the effects on caribou movement and behaviour along the winter access road. Changes in Mine activities associated with the WL Amendment will be captured by the existing Mine WWHPP for continued Measure compliance

54 The De Beers Group of Companies

WILDLIFE – MEASURES RESULTING FROM EIS DECISION

Wildlife Measure WL Amendment Compliance

Measure 3: De Beers will:  Monitor project specific effects (e.g., size of the zone of influence, changes in habitat, effects of the winter access road on caribou movement and behaviour) and will report to the GNWT and make the results public on how project specific effects contribute to cumulative effects for the duration of the Project Changes in Mine activities associated with the WL Amendment will be captured by the existing Mine WWHPP and WEMP for continued Measure compliance

55 The De Beers Group of Companies

EI EIS, , 2012

• Preliminary WL Amendment footprint is

predicted to be 1,288 ha

– 4.3% (53 ha) increase over EIS prediction – 1.8% (23 ha) increase over 2017 Amendment

• The new Mine Rock Pile area overlaps the

Water Management Pond

• On-land disturbance area increase specific to

the extended West Mine Rock Pile

– Change associated with removal of vegetation and habitat determined to be a Primary Pathway – Anticipated to be a negligible change

• Many wildlife effects pathways assessed in the

EIS will remain the same

• WL Amendment does not influence them

WILDLIFE HABITAT QUANTITY 2017 2018 18

56 The De Beers Group of Companies

• Sensory disturbance determined to be a

Secondary Pathway

• A Primary Pathway in EIS, but Not Significant
• Anticipated to be negligible
• Mine operational period remains similar
• Small increase in haul traffic, blasting, and

FTEs during operation

• Changes in magnitude and geographic extent
• f sensory disturbances likely to be

unmeasurable relative to EIS because mitigation still effective

• Will increase length of the closure period but

site activity much lower than during Mine

• perations

HABITAT QUALITY 2018 18

57 The De Beers Group of Companies

Mine Rock Piles

• Concern about injury or mortality to caribou using

Mine Rock Piles during post-closure

• With Amendment, risk potential increases due to

increased height of West Mine Rock Pile

• The EIS proposed caribou egress ramps as

mitigation

• Alternative design and mitigation being

considered:

• Prevention of access
• Preventing access would avoid potential for injury

and mortality risk (i.e., better mitigation than ramps)

• Approach is consistent with 2.5 m berm (barrier)

used at Colomac mine that prevents caribou access

WILDLIFE – OPTIONS FOR MITIGATION

58 The De Beers Group of Companies

Mine Rock Pile Access Mitigation

• Engagement supported mitigation that

prevented caribou access

• Final design included a 2.5 m berm

around WRSA

• Roads leading to WRSA were blocked to

deflect caribou

• Preventing access means injuries or

mortalities are better mitigated than using ramps, which allow access

• Prevention changes pathway from

secondary to no linkage

ALTERNATIVE STRATEGY? - ACCESS PREVENTION AT COLOMAC MINE

59 The De Beers Group of Companies

WILDLIFE ASSESSMENT SUMMARY

Primary focus is on-land disturbance area increase associated with the expansion of the West Mine Rock Pile

• The new Mine Rock Pile area mostly overlaps the Water Management Pond
• Small increase in the area of disturbed land
• Preliminary screening indicates effects similar to EIS
• Monitoring, Adaptive Management and Mitigation Plans (e.g., WEMP,

WWHMP, VSMP) currently in place are appropriate for use in 2018 and in future years

60 The De Beers Group of Companies

WATER AND AQUATIC LIFE

61 The De Beers Group of Companies

AQUATIC ENVIRONMENT - SUMMARY OF KEY CHANGES

Water quality in the WMP has been updated from previous assessment

• No anticipated change to conclusions regarding

WQ and aquatic life in the receiving environment

• Operations or Closure
• WQ in WMP being evaluated to determine potential

for extension of operational discharge

• Provision for extended discharge provided in the WL
• For the Amendment, an EQC re-evaluation will be

included because some parameters will require adjustment

• Area 7 water to support DSFM plan
• Longer closure period with longer KL re-filling

timeframe

62 The De Beers Group of Companies

• Primary focus of amendment application is understanding WQ effects to receiving environment in operations

and in KL and downstream waters in closure

• Assessment consistent with EIS

– Integrated WQ modelling using GoldSim linking water balance, groundwater and surface water inputs, and mine plan – Model and model structure, and team the same – In GoldSim, inflow volumes to waterbodies assigned a water chemistry selected from baseline information or geochemical testing to account for loadings from natural areas, disturbed areas, mine rock runoff, fine and coarse PK runoff, and groundwater discharge – Water balance and source term inputs updated based on amended mine plan

AQUATIC ENVIRONMENT - ASSESSMENT METHODS

63 The De Beers Group of Companies

• Constituent concentrations are projected to be

greater during operational discharge period, than those presented in the 2014

• Adjustments to internal water management
• Accelerated mining & generation of Fine PK
• Updates to reflect empirical data
• Several constituent concentrations are projected to

be greater than the approved Effluent Quality Criteria prior to the end of discharge in Mine Year 3

• Model results are preliminary and modelling is

being refined

• EQC being re-evaluated

AQUATIC ENVIRONMENT - PRELIMINARY RESULTS

Projected WMP TDS

64 The De Beers Group of Companies

AQUATIC ENVIRONMENT - PRELIMINARY RESULTS

Projected WMP Water Quality

Nitrate Phosphorus

65 The De Beers Group of Companies

AQUATIC ENVIRONMENT – PRELIMINARY RESULTS

Projected WMP Water Quality

Chloride Fluoride

66 The De Beers Group of Companies

Area 7

• Water from Area 7 will be pumped to Area 8 for

downstream flow mitigation

• EQC being established for this discharge
• The majority of the inflow to Area 7 is from natural

watershed runoff and a small amount of disturbed runoff from the mine site area

• Water quality projections indicate that constituent

concentrations will remain low in this area

AQUATIC ENVIRONMENT - PRELIMINARY RESULTS

67 The De Beers Group of Companies

Tuzo Pit at Closure:

• Tuzo Pit will take 19+ years to refill depending on

supplemental pumping

• Minewater salinity in WMP and Area 6 higher than

2012

• Backflooded with natural catchment inflow and

Lake N11 water

• Freshwater cap will be deeper
• Stable meromixis will develop
• Anticipate that WQ in the refilled Kennady Lake

similar if not better than 2012 projections

AQUATIC ENVIRONMENT 2012

68 The De Beers Group of Companies

Lake N11 EQC

• Preliminary Updated WQ modelling indicates the potential

to extend operational discharge

• This will require an EQC re-evaluation, which will be

provided in the WL Amendment application

• De Beers will be seeking a revision to proposed EQC
• The Board’s WEQMP includes consideration of

‘reasonable achievability’ in setting EQC

• When required, provides a balance between ensuring

adequate environmental protection and not placing

• nerous and unnecessary demands on De Beers

AQUATIC ENVIRONMENT – MITIGATION

69 The De Beers Group of Companies

Area 8 EQC

• During the Life of Mine, natural drainage will fill Area 7
• Under the current water management plan, this water

would be used on site or transferred to the WMP

• It will take ~3 years to fill to a level consistent with

natural full supply level

• Limited influence of Mine activities on this basin
• Close proximity to Mine Site
• Dyke K
• Anticipated that WQ in Area 7 will be sufficient for active

discharge to Area 8

• No anticipated influences on raw water supply requirements
• EQC will be evaluated for this purpose
• Will be proposed in the WL Amendment application

AQUATIC ENVIRONMENT – MITIGATION

70 The De Beers Group of Companies

Effluent Quality Criteria

• De Beers will apply an established process to re-evaluate

EQC:

• Use results of comprehensive WQ modelling, with

appropriate level of conservatism

• Consistent with derivation approaches applied for GK WL,

and used at other northern mines

• Aligned with local guidelines and policies for managing

effluent discharges to receiving environments

• De Beers will maintain commitment to operational

monitoring (SNP and AEMP)

• De Beers confident proposed EQC will reflect appropriate

WQ constituents and will be protective of receiving environment during discharge

• Re-evaluated EQC will be reasonably and consistently

achievable for all COPC under all discharge conditions

AQUATIC ENVIRONMENT – MITIGATION

71 The De Beers Group of Companies

AQUATIC ENVIRONMENT

Aquat uatic ic Component ponent Phase Potent ntial ial Chang nge e / Pa Pathway Mitigation gation Ant ntic icip ipat ated ed Resul ults

Hydrology Operations Changes to flows in receiving environment from additional mine discharge

• Provision for additional discharge

in existing Water Licence

• Defined annual discharge pumping

limits reduce potential for erosion and bank instability of streams and lake outlets (in place)

• Monitoring under the AEMP (in

place) No change to EIS predictions Closure Changes to flows in receiving environment from pumping to refill Kennady Lake under of extended refilling period

• Defined annual withdrawal rates

from Lake N11 limit potential low water levels in downstream lakes (in place)

• Monitoring under the AEMP (in

place)

With the Mine Plan Amendment

72 The De Beers Group of Companies

AQUATIC ENVIRONMENT

Aquati atic Component ponent Phase Potenti tial al Change e / Pa Pathway Mitigati gation

• n

Antic icip ipat ated ed Result ults

Lower Trophic Organisms (plankton and benthic invertebrates) Fish and Fish Habitat Operations Changes to water quality in receiving environment from additional mine discharge

• Provision for additional discharge in

existing Water Licence

• EQC will be met for operational

discharges

• Monitoring under the SNP and AEMP

Updated WQ results will be reviewed, but no change to EIS predictions anticipated Closure Changes to closure footprint of the refilled Kennady Lake

• Closure planning process
• Pumping from Lake N11 to support

refilling

• Monitoring of conditions within the

refilled Kennady Lake prior to reconnection

• Meromixis in Tuzo Pit
• Offsetting plan will be updated to

counterbalance losses to fish habitat

• In-lake fish habitat enhancement

structures will be built No anticipated change to EIS predictions (i.e., Kennady Lake will provide conditions that will support a viable and self- sustaining ecosystem)

With the Mine Plan Amendment

73 The De Beers Group of Companies

OFFSETTING

74 The De Beers Group of Companies

• De Beers has a Fisheries Act Authorization from DFO for the Mine for

the ‘serious harm to fish’ from dewatering Kennady Lake and construction of dykes

• Included the permanent alteration and destruction of habitat in Areas 2 to 7 of

Kennady Lake (670 ha)

• The Authorization was based on the draft No Net Loss Plan (now known

as an offsetting plan), provided to MVEIRB and DFO in 2012

• Offsetting measures to counterbalance serious harm to fish outlined in

the Authorization

• Re-establish habitat in Kennady Lake at closure
• Construct in-lake fish habitat features in re-established Kennady Lake, such as finger

dykes, artificial reefs, littoral habitat near the pits

• Re-establish fish passage in the Redknife River at the Mackenzie Highway crossing (or

suitable alternative project)

OFFSETTING

75 The De Beers Group of Companies

• De Beers will provide DFO with an update to

the offsetting plan in 2018, which will

• utline:
• Revised calculations for losses of habitat

(permanent alteration and destruction) and associated Habitat Units, and gains of habitat in the re-established Kennady Lake at closure

• Updates for the Redknife River bridge

construction

• Plan for determining equivalency between losses

and gains

• De Beers will continue to work with DFO on

the offsetting associated with the Mine

OFFSETTING

76 The De Beers Group of Companies

SUMMARY

77 The De Beers Group of Companies

SUMMARY OF 2018 UPDATED MINE PLAN

• Planned case (65 Mt); Worst case (100 Mt) of additional mine rock
• Larger west mine rock pile
• Minor increase in Project footprint
• Adjustments to PK placement schedule and tonnage
• Construction of the A2 North perimeter berm at the Fine PK Facility (see L.U.P. amendment #2)
• Adjustments to planned discharge
• Discharge from Water Management Pond to N11 in Year 4
• Discharge from Area 7 to Area 8 periodically
• Additional mining equipment
• Additional camp occupancy
• Increased annual camp water intake
• 7 months longer life of mine

Closure re

• Longer to refill Kennady Lake at Closure (19+ years)
• Watercourse required for closure to allow the runoff water from Watershed D flow into Areas 3/5

78 The De Beers Group of Companies

• Assessment conducted on proposed changes to mine plan
• Assessment of all Valued Components, consistent with the EIR
• Used pathways approach to identify linkages
• Focussed assessment on VCs with primary pathway with project change:
• Air Quality
• Wildlife
• Water Quality
• Existing monitoring and management plans are correct framework for mitigating effects
• Several plans will be updated as part of the amendment application
• EQC Evaluation will be included in the amendment application (A8 and N11)

SUMMARY OF ENVIRONMENTAL EFFECTS

79 The De Beers Group of Companies

• W.L./L.U.P. Amendment application anticipated to include:
• Application form, Fee, Site Plan, Confirmation of involvement of affected Parties
• Updated Project Description 2018
• West Mine Rock Pile Construction Management Plan and Detailed Design V.1
• Operational Water Management Plan V.5
• Processed Kimberlite and Mine Rock Management Plan V.6
• Environmental Screening Report
• EQC Evaluation Report
• Record of Engagement
• De Beers will submit an updated Off-setting plan to DFO

REGULATORY PATHWAY

Submit application Preliminary Screening Technical Sessions Review Public Hearing Draft W.L and L.U.P. Amendment Amendment to W.L. and LUP Review Feb 2018 Nov 2018 Completeness check Work Plan Pre- Hearing Conference Decision Review

80 The De Beers Group of Companies