EKATI Diamond Mine Interim Closure and Reclamation Plan - - PowerPoint PPT Presentation

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 1

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EKATI Diamond Mine Interim Closure and Reclamation Plan

Presentation to Wek’eezhii Land and Water Board Public Hearing BHP Billiton Canada Inc. September 28/29, 2010, Behchoko

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 2 EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 2

BHP Billiton’s Presentation Team

BHP Billiton: Paul Harvey, President & COO Karl Schubert, Manager – Health, Safety, Environment and Community Eric Denholm, Superintendent – Traditional Knowledge and Permitting Helen Butler, Senior Environment Advisor - Closure Technical Support: Marc Wen, Vice-President Projects, Rescan Environmental Services Ltd. Mike McGurk, Fish and Fish Habitat Manager, Rescan Environmental Services Ltd. Kevin Jones, Senior Project Director, EBA Engineering Consultants Ltd. Legal Counsel: Kevin O’Callaghan, Partner, Fasken Martineau

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 3 EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 3

BHP Billiton’s Presentation

BHP Billiton’s Vision Process To Date The ICRP Response to Interventions Requests to the Board

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 4

BHP Billiton, an Outstanding Mine Operator

Diamonds & Specialty Products

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 5

EKATI Diamond Mine, a Series of Firsts

• Canada’s first diamond mine
• The North’s first:
• Impact Benefit Agreements
• Socio-Economic Agreement
• Environment Agreement
• The NWT’s first ISO14001

Certified mine (Environment)

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 6

The EKATI Operation

• Safety is our Core Value
• “Panda Pride” – an important

milestone

• Underground mining continues
• Resumption of Open Pit mining at

Misery in final design stage

• Open Pit mining at Pigeon is

scheduled

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 7

The EKATI People

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 8 Slide 8

BHP Billiton Values

BHP Billiton’s Values are found in the BHP Billiton Charter and in the Sustainable Development Policy “We Value Respect for Each Other The embracing of diversity, enriched by

• penness, sharing, trust, teamwork and

involvement.” These values guide how BHP Billiton

• perates the EKATI mine

EKATI’s Strategic Initiatives

Extract value from resource inventory Improve operating discipline and efficiency Create a high performance culture Operator of choice for communities and government Relentless pursuit of Zero Harm to Environment Relentless pursuit of Zero Harm to People

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 9

BHP Billiton’s Vision for the EKATI Diamond Mine is safely used by future generations The EKATI project started with exploration and will finish with reclamation This is the time to advance the established reclamation concepts This is the time to resolve the outstanding issue of fish habitat in the open pits

Slide 9

BHP Billiton’s Vision for Reclamation

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 10 Slide 10

Making the Vision Real

The Interim Closure and Reclamation Plan shows how to make the reclamation vision real This is a document that everyone can have confidence in The ICRP is being used locally and by BHP Billiton worldwide as a leading example of reclamation planning

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 11 Slide 11

Implementing the Plan

BHP Billiton’s operating philosophy will continue into reclamation

• Safety will be the core value for any work conducted
• Water Licences and other permits will be applied for as needed
• Training and employment opportunities for northern Aboriginal people will continue
• The EKATI site will be left in a condition that is safe for people and wildlife

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 12 Slide 12

EKATI ICRP

Multi-Stakeholder ICRP:

• Water Licence
• Environmental Agreement
• Land Use Permits
• Fish Habitat Compensation Agreement
• Fisheries Authorizations
• Community Concerns and Expectations
• BHP Billiton Policies/Standards and Considerations for Closure

Planning

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 13 Slide 13

EKATI ICRP Development Process

Development Process Included The Following Elements:

• Input from stakeholders (Aboriginal Communities, Regulatory Agencies

and the IEMA)

• Alignment with Board ICRP Terms of Reference
• Risks were assessed
• Alignment with Life of Mine Plan

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 14 Slide 14

Stakeholder Engagement

June 2005 Feb 2007 Closure Concerns/Suggestions June 2005 – March 2006 Proposed Closure Options Presentation to Communities, Regulators and IEMA June 2006 Closure Options Workshop July 2006 EKATI Minesite Tour to Discuss Closure Options July 2006 Closure Objectives Review Oct – Nov 2006 ICRP Working Draft Delivered to Board Presentation

• f the ICRP

Working Draft to all Stakeholders

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 15 Slide 15

Examples of Community Feedback

“Open pits will be dangerous for wildlife. Fill them with water, and prevent animals from falling into the pits.” Wekweti June 2005 “Survival of fish and wildlife in deep lake is a concern.” Lutsel K’e June 2005 “Concerned with water quality that leaves the facility and travels down through Lac de Gras to Kugluktuk” Kugluktuk November 2005 “Fill [the open pits] faster to protect wildlife.” Lutsel K’e November 2005 “Steep sides to pits can be a danger to people, wildlife, but a benefit to raptors.” NSMA February 2006 “What will be in Long Lake? How dangerous is it? How will it be kept safe? Will the ice freeze the same, or will there be hidden thin spots - dangerous for traveling and caribou.” NSMA February 2006

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 16 Slide 16

Closure Options Discussions – Minesite Tour

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 17 Slide 17

Closure Options Workshop

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 18 Slide 18

Board Process

Dec 2005 Board Distributes Terms of Reference and Work Plan for ICRP Working Group ICRP Working Group EKATI Site Tour June 2007 ICRP Working Draft Delivered to the Board Jan 2007 EKATI ICRP Public Hearing Board Approves ICRP Terms of Reference June 2006 EKATI Closure & Reclamation Plan Working Group Reviews ICRP Final ICRP Working Draft Delivered to the Board Dec 2008 Interventions and Responses Delivered to the Board Sep 2010

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 19 Slide 19

ICRP Development Process

We engaged the Aboriginal communities up front The draft ICRP was reviewed with communities and regulators We listened and acted upon concerns The process was thorough

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 20

Timing of Reclamation

Expected Reclamation Completion 2059 We Are Here

Timeframe for Reclamation

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 21 Slide 21

ICRP Reclamation Goal, Closure Objectives and Criteria Framework

Refined through Reclamation Research

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 22

The EKATI Minesite

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 23 Slide 23

EKATI’s Closure and Reclamation Plan

Mine Components 1. Open Pits 2. Underground Mines 3. Waste Rock Storage Areas 4. Processed Kimberlite Containment Areas 5. Dams, Dykes and Channels 6. Buildings and Infrastructure

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 24 Slide 24

Open Pits Reclamation

Water Quality

• Develop water quality prediction models

for the pit water

• Fill the open pits with water pumped from

nearby source lakes

• Monitor and manage, as necessary, the

pit water during filling

• Provide outflow and inflow channels with

fish barriers Birds

• Retain some residual pit walls above

water to be available for use by raptors

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 25 Slide 25

Open Pits Reclamation

Hazardous Materials

• Remove mining equipment and hazardous materials

Physical Safety

• Conduct an engineering analysis of long-term pit wall stability
• Provide safety berms in key areas outside of the pit perimeters
• Provide shallow zones in key areas of the ultimate water edge
• Provide vegetation for slope stability in key areas where such vegetation will grow

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 26

Open Pits Flooding Time Frame

~ 500 ~ 500 150 70 40 120 ~ 500

# of Years to Fill – Natural

Lac de Gras 5 Misery Lac de Gras 13 Fox Lac de Gras 17 Koala* (including Koala Nth) Lac de Gras 17 Panda* Lac de Gras 2 Beartooth Upper Exeter lake 1 Pigeon Ursula Lake 14 Sable

Source Lake # of Years to Fill – Active Flooding Open Pit

* Panda, Koala and Koala North have a combined filling time of 17 years

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 27

Underground Mines

Koala Ramp Panda Conveyor Koala North Ramp Portal Koala Conveyor Panda FAR#1 Panda RAR#2 Panda FAR#3 Koala FAR#2 Koala FAR#1 Koala RAR#3 Koala Ramp Panda Ramp Koala North FAR North & South 1930m Lvl 2145m Lvl 2077m Lvl 1830m Lvl

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 28 Slide 28

Underground Mines Reclamation

• Remove equipment with salvage value or

with risk of contamination

• Assess benefits and risks of underground

plugs between Panda and Koala mines

• Decommission primary crusher and

conveyor systems

• Install seals over fresh air raises and in

portals

• Conduct post-closure monitoring

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 29 Slide 29

Waste Rock Storage Area Reclamation

• Construct stable side slopes
• Encourage permafrost formation within the piles
• Encapsulate metasediments, low grade kimberlite, landfill, landfarm and coarse rejects

within 5 m granite cover

• Construct wildlife ramps (to allow access and aggress)

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 30 Slide 30

Waste Rock Storage Area Reclamation

• Finish the top surface to be uniform and smooth
• Ensure seepage discharge from WRSA meets water licence criteria
• Stabilize any remaining topsoil, lake bottom sediment and glacial till storage areas

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 31 Slide 31

Long Lake Containment Facility Reclamation

Dyke B Breach Dyke C Breach Outlet Dam Breach Dyke D Breach

Panda Koala WRSA

Upper Zone

Central Zone Water Interface Zone

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 32 Slide 32

Processed Kimberlite Containment Areas Reclamation

• Construct weirs in all dykes
• Remove infrastructure (pumps and

pipelines)

• Monitor and control erosion (wind and

water) during rock cover construction period

• Monitor water quality during reclamation
• Reclaim the Phase 1 Pond at Old Camp

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 33 Slide 33

Dams, Dykes and Channels Reclamation

• Breach dams and allow stream flow
• Stabilize side slopes with rip rap and/or

vegetation

• Cut thermosyphons and instrumentation off at

ground surface

• Leave Panda Diversion Dam in place, with

spillway

• Stabilize Panda Diversion Channel banks to

allow for permanent flow

• Retain fish habitat and passage

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 34 Slide 34

Buildings and Infrastructure Reclamation

• Dismantle buildings and salvage (where

feasible)

• Place inert material in landfill
• Clean and landfill fuel tanks
• Break concrete footings to the ground
• Cover concrete slabs with waste rock
• Contour to establish drainage
• Encourage natural colonization on camp

pads

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 35

Buildings and Infrastructure Reclamation

• Remove culverts and bridges from roads
• Break down road berms
• Encourage natural plant colonization on roadways

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 36 Slide 36

EKATI’s Closure and Reclamation Plan

Everything is included We took suggestions seriously The plan is comprehensive and doable Most of the plan is agreed to Success will be measurable

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 37 Slide 37

Remaining Issues

• Effects on source lakes and outlet streams when pump flooding open pits
• Pit lake water quality
• Long Lake Containment Facility water quality
• Stabilization of Extra Fine Processed Kimberlite
• Research Plans – format and detail
• Closure criteria for wildlife
• Soil remediation standard
• Reclamation of Open Pits

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 38 Slide 38

Remaining Issues - Source Lakes

Area of Concern – Effects on source lake and outflow stream (Upper Exeter and Ursula Lakes) littoral habitat from water withdrawal to flood open pits. Response – The Research Plan for source lakes (RP #2) will be used to design the pumping program such that there will be no negative affect on fish habitat.

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 39 Slide 39

Remaining Issues - Pit Lake Water Quality

Area of Concern – Pit lake water quality. Response – BHP Billiton is developing a long term water quality prediction model for the Pit Lakes, which includes studying the likelihood of meromixis. This model will be updated prior to the end of the mine life.

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 40 Slide 40

Remaining Issues – LLCF Water Quality

Area of Concern – Long Lake Containment Facility (LLCF) water quality - affected by pore water contribution as permafrost develops in the facility. Response – BHP Billiton has agreed to assess water quality effects from pore water in the LLCF. This includes assessing sampling methods, laboratory testing and modeling.

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 41 Slide 41

Remaining Issues – EFPK Stability

Area of Concern – Other methods of stabilizing Extra Fine Processed Kimberlite (EFPK) besides containment and capping with fresh water in the LLCF. Response – BHP Billiton is currently assessing the operational behaviour of EFPK, in conjunction with Research Plan # 14. If fundamental issues with the current plan of managing the EFPK are identified, alternative measures will be considered.

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 42 Slide 42

Remaining Issues – Closure Criteria

Area of Concern – The use of component-specific closure criteria for wildlife. Response – Closure criteria related to wildlife should be informed by the Wildlife Effects Monitoring Program (WEMP). Data collected from the WEMP will be reviewed in order to determine if component specific criteria should be established.

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 43 Slide 43

Remaining Issues – Soil Remediation

Area of Concern – Soil remediation should be at GNWT ‘Agricultural’ standard. Response – Soil remediation will follow the CCME Guidelines using the Tier 1, 2 or 3 approach. BHP Billiton will continue to cleanup and report hydrocarbon spills at the minesite, followed up by INAC inspection.

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 44 Slide 44

Remaining Issues Reclamation of Open Pits

Several Interveners recommend that the ICRP include fish habitat BHP Billiton fundamentally disagrees and wishes to be clear about its reasons

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 45

Fish Habitat is Not Reasonable at EKATI

There are three independent reasons: 1. The Board does not have jurisdiction in this situation 2. It would be unfair - BHP Billiton has already provided for the creation of fish habitat by DFO 3. It is impracticable and unproven - no one knows how to do it or whether it could work

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 46 Slide 46

BHP Billiton’s Plan for Open Pits

Make the open pits safe for people and wildlife, provide clean water and prevent the need for long term care

PEOPLE AND WILDLIFE WATER QUALITY HAZARDOUS MATERIALS BIRDS All mining equipment removed All hazardous materials removed Safety berms and shallow zones Vegetation for soil stability Engineering assessment of pit walls Leave residual cliff habitat Pits filled from natural lakes Outflow water meets criteria Outflow channels with fish barriers RESEARCH PLANS ENGINEERING STUDIES CLOSURE CRITERIA DFO FUND FOR FISH HABITAT PROJECTS

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 47 Slide 47

Open Pits – The Overall Reclamation Goal

“to return the EKATI Mine site to viable, and wherever practicable, self-sustaining ecosystems that are compatible with a healthy environment, human activities, and the surrounding environment” Each open pit will function as part of the overall ecosystems

Beartooth Open Pit Panda Open Pit Koala Open Pit Fox Open Pit Misery Open Pit

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 48 Slide 48

Meaning of Fish Habitat

The definition of fish habitat from the Fisheries Act is “spawning grounds and nursery, rearing, food supply and migration areas

• n which fish depend directly or indirectly in order to carry out their life processes”

This includes areas that are used by fish, such as shorelines, lake bottom and channels This includes areas that generate food supply or other benefits for fish even if the fish are not directly present Therefore, a reclamation measure whose primary purpose is to create any of the items listed above is “fish habitat”

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 49 Slide 49

Meaning of Fish Habitat

Examples from the Interventions of what would be considered “fish habitat” Aquatic vegetation for the purpose of oxygen production, filtering of sediment, consolidation of substrates, promotion of invertebrate production (DFO pg 4) Shallow zones that are designed for allowing aquatic vegetation to grow … provides

• xygen, food and habitat for a variety of life

forms from benthic invertebrates to fish (DFO pg 4) or with appropriate vegetation to facilitate a return of habitat suitable for fish (IEMA pg 6) Placement of substrate for planting vegetation in the littoral zones (DFO pg 5) Water inflow or outflow channels that are designed to include habitat enhancement features (DFO pg 5) or to allow fish passage (DFO pg 6)

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 50 Slide 50

Previous Rejections and Omissions

Fish habitat has been consistently rejected or omitted because it is not technically viable

1996 Report of the EKATI EA Panel “precludes the re-creation of fish habitat” 2000 Report of the MVEIRB on the Sable, Pigeon and Beartooth Expansion “DFO is not confident that the Beartooth Pit can be restored as viable fish habitat” 2001/02 Reclamation Security Requirement (done in the absence of costing related to fish habitat) 2009 Reclamation Security Requirement (done in the absence of costing related to fish habitat)

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 51 Slide 51

Technical Uncertainties

Very poor habitat quantity and quality in Open Pits

(if water stratifies)

Natural Lake Open Pit

• Abundant littoral (near shore) habitat
• Abundant accessible bottom habitat
• Abundant variable substrate types
• Lake mixes to bottom
• Very little littoral (near shore) habitat
• Very little accessible bottom habitat
• No substrates
• Lake may not mix to bottom

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 52 Slide 52

Technical Uncertainties

Biological productivity in typical natural lakes

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 53 Slide 53

Technical Uncertainties

Very poor biological productivity in flooded open pits

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 54 Slide 54

Technical Uncertainties

Very poor biological productivity in flooded open pits Very low water flows generally into the flooded

• pen pits with very low

nutrient value For Panda/Koala (at right), the Panda Diversion Channel will continue to divert water around the flooded open pits

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 55 Slide 55

Technical Uncertainties

BHP Billiton is not aware of any open pits in the north that have been reclaimed to fish habitat There are many unique technical and environmental factors to the Central Arctic No Northern Precedents

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 56 Slide 56

Documentation of Critical Uncertainties

The critical technical uncertainties have been consistently documented

1995 BHP Billiton EKATI Environmental Impact Statement “Lake productivity would be limited due to the small amount of littoral development possible in the lake on account of the steep pit slopes” 1996 DFO Testimony at the Initial EKATI Water Licence Hearing “DFO … concluded that replacement would not be technically feasible for a number of reasons, most of which are unique to the Arctic Environment.” 2000 ICRP “lake productivity after the pits fill with water is expected to be low because only limited littoral development will be possible on the steep pit slopes” 2009 DFO Technical Report (the development of fish habitat in a northern pit lake is technically uncertain)

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 57

Fish Habitat – Board Jurisdiction Direction from Court to revisit Jurisdiction

Justice Vertes stated:

[58] … As far as I can glean from the record, and from the Board's decision, there was no determined effort to reconcile the different interpretations of [the 1996 Compensation] agreement. … I think it is still incumbent on the Board to determine the effect of that agreement (something about which the parties to that agreement disagree).

Premature to rule on the extent of the Board’s jurisdiction Sent the issue back to the Board for determination Therefore we again discuss the 1996 Compensation Agreement

Slide 57

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 58 Slide 58

Unreasonable to Order Fish Habitat

It would be unreasonable for the Board to order reclamation of fish habitat in the Pit Lakes for three reasons: (a) No Jurisdiction: The 1996 Compensation Agreement precludes the Board from

• rdering BHP Billiton to create fish habitat in the Pit Lakes

(b) Unfair: It would be manifestly unfair and unreasonable to impose new requirements on BHP Billiton that carry potentially onerous and long-term burdens and liabilities at this late stage in the Mine life (c) Impracticable: It is impracticable and unreasonable to impose a cumbersome

• bligation on BHP Billiton in which there is no real prospect of

success [addressed previously]

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 59

Jurisdiction Belongs to DFO

Fish habitat lies within the specific jurisdiction of DFO

Specific vs General

• A specific legislative provision trumps a general provision

The Fisheries Act specifically deals with fish habitat The Board’s jurisdiction regarding reclamation is general Agencies have acknowledged DFO’s jurisdiction

• Jeff Stein, DFO, NWT Water Board Public Hearing, Oct 21-22,

1996: “Authorizations under the Fisheries Act and associated compensation agreements are clearly outside the jurisdiction of the NWT Water Board”

• The EARP Panel & MVEIRB agree

Slide 59

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 60

No Jurisdiction – 1996 Agreement

DFO fully and finally dealt with the loss of fish habitat in the 1996 Compensation Agreement Section 7: “compensation agreed to be paid hereto shall be deemed to be good and valid compensation for alteration, disruption or destruction of fish habitat for the life of the Project”

Slide 60

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 61

No Jurisdiction – 1996 Agreement

1996 Compensation Agreement covers the permanent loss of fish habitat

“Life of the Project”

• R. v. BHP Billiton Diamonds Inc.: “Project” should be interpreted

as defined in the 1995 EIS

• In the EIS, “life of the project” means “all phases from construction

to operation to reclamation”

• Agreement in Principle, April 2008, signed by DFO:

“BHP Billiton has provided full compensation for the loss in perpetuity of such fish habitat by way of a Compensation Agreement with DFO”

Slide 61

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 62

No Jurisdiction – 1996 Agreement

Stream Habitat vs Lake Habitat

• Stream habitat is dealt with permanently

(fish habitat reclamation)

• Monetary compensation for lake habitat

is therefore permanent Section 8

• Interpreting Section 8 to mean other regulatory agencies

have the power to override the Agreement would be absurd and inconsistent

Slide 62

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 63

No Jurisdiction – 1996 Agreement

1996 Compensation Agreement is binding on the Board

It is a contract:

• Extensive negotiation - at least 5 drafts - Voluntary agreement

(Additional Documents #4-18)

• Jeff Stein of DFO called it a contract

(NWT Water Board Public Hearing, October 21-22, 1996) It is binding on the Board: Valid and enforceable without explicit legislation to the contrary One hand of the Crown cannot accept compensation for the loss

• f fish habitat while the other hand orders habitat restoration

Slide 63

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 64

Unfair – Right to Rely on EA Approvals

The Project has been approved under two Environmental Assessments on the premise DFO was dealing with the loss of fish habitat

• The EA approvals proceeded on the basis reclamation of fish

habitat was to be determined by DFO

• BHP Billiton has a right to rely on the development of the Project

as scoped by the EA approvals

• The understanding has always been that the Pit Lakes will be

“deep, steep-sided, nutrient limited lakes”

Slide 64

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 65

Unfair – Right to Rely on Agreement

BHP Billiton has reasonably and fairly relied on representations by DFO and other government bodies

• Major mining operations require regulatory certainty

from the outset around key cost issues in order to be constructed

• We are now past the half-way point of the mine life
• BHP Billiton has a vested right reflected in the 1996

Compensation Agreement that it would not be required to create and maintain fish habitat in the Pit Lakes

• It would be unfair if the Crown was not held to its obligations

under the Agreement and now orders BHP Billiton to create fish habitat in the Pit Lakes

Slide 65

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 66

Unfair – Success is Doubtful

The obligations would be cumbersome and potentially futile

It would be unreasonable to ask BHP Billiton to undertake reclamation where:

• Although the magnitude is unknown the costs would be

substantial

• As earlier established in this presentation the prospects of

success are uncertain at best

Slide 66

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 67 Slide 67

Need For a Decision Now

• n Reclamation of Open Pits

Specifically, 1. Clarity on this issue is fundamental to the next stages of development of the ICRP 2. Clarity on this issue is essential to development planning for the future of the EKATI Diamond Mine 3. A firm decision on the scope of the ICRP and the Research Plans is needed for development of the Final Reclamation Plan

For BHP Billiton to continue to do its job as a responsible mine operator this issue must be resolved

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 68 Slide 68

Requests to the Board

BHP Billiton requests that the Board: Approve the 2008 ICRP with the amendments that BHP Billiton has documented (this includes the February 2010 Reclamation Research Plans) And Decide that “fish habitat” will not be a part of reclamation

• f Pit Lakes at the EKATI Diamond Mine

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 69

Summary - BHP Billiton’s Key Messages BHP Billiton’s First Key Message

When the time comes to close the EKATI Diamond Mine, BHP Billiton will make the site safe for future use by people and wildlife

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 70

Summary, BHP Billiton’s Key Messages BHP Billiton’s Second Key Message

The ICRP is a good plan, this is the time to approve it and resolve the fish habitat issue

EKATI Diamond Mine Interim Closure and Reclamation Plan Presentation to Wek’eezhii Land and Water Board Public Hearing, September 28/29, 2010 Slide 71