Environment Act Licence Update Proposed Minago Mine Project Norway House Cree Nation Winnipeg Public Meeting - Consultation Siobhan Burland Ross, M.Eng., P.Eng. Manager, Municipal, Industrial and Hazardous Waste Section Environmental Assessment and Licensing Branch Manitoba Conservation May 17, 2011

Overview Environmental Assessment and Licensing Branch (EALB) Manitoba’s Environmental Assessment and Licensing process Summary of the Assessment of Victory Nickel Inc.’s Minago Project Proposal Next Steps

Environmental Assessment and Licensing Branch Mission Sustainable Environmental Quality Roles Lead the EAL Process (Administer the Act) Legislated to Make Licensing Decisions Manage Potential Impacts of Developments One window, wide range/scope Evaluate impacts & mitigation measures Prescribe licence conditions Enforcement MISSION: The Environmental Assessment & Licensing Branch will ensure that developments are regulated in a manner that protects the environment and public health, and sustains a high quality of life for present and future Manitobans. The Environmental Assessment and Licensing Branch carries out its mission by: administering development approval requirements of The Environment Act, The Dangerous Goods Handling and Transportation Act, The Public Health Act, and the Pesticides Regulation; controlling municipal, industrial and hazardous waste sources of pollutants; minimizing environmental impact of development proposals; minimizing adverse effects to the environment and public health from pesticide use; and administering the Water and Wastewater Facility Operators Regulation. This is accomplished through the activities of three Sections of the Branch. Director's Office Municipal, Industrial and Hazardous Waste Section Environmental Land Use Section Pesticide Section

Pesticide Permits Transmission Lagoons Pesticide Handling/Storage Forestry Sewage Treatment Plants Mosquito Control Wind Operator Certification Agricultural Water (floodway) Mining Ethanol, Biodiesel Hydro Gen. Manufacturing Comm. Fertilizer Storage Pipelines Waste (Haz. & non) Recreation Pulp & Paper Transportation Thermal Generation Ethanol, Biodiesel

Overview Environmental Assessment and Licensing Branch (EALB) Manitoba’s Environmental Assessment and Licensing process Summary of the Assessment of Victory Nickel Inc.’s Minago Project Proposal Next Steps

Regulatory Process Principles of The Environment Act: Sustainability & Environmental Protection Public Health Public Participation Transparent One Window Flexible

Legislation The Environment Act Regulations: Classes of Development Environment Act Fees Licensing Procedures Environment Act Hearing Cost Recovery Participant Assistance

Pre-Application Preliminary – Do you need a licence? Classes of Development Regulation Class 1 – Discharge of pollutants Class 2 – Unrelated to or in addition to pollutants Class 3 – Exceptional All are treated with the same level of scrutiny/process Fees are different "development" means any project, industry, operation or activity, or any alteration or expansion of any project, industry, operation or activity which causes or is likely to cause (a) the release of any pollutant into the environment, or (b) an effect on any unique, rare, or endangered feature of the environment, or (c) the creation of by-products, residual or waste products not regulated by The Dangerous Goods Handling and Transportation Act, or (d) a substantial utilization or alteration of any natural resource in such a way as to pre-empt or interfere with the use or potential use of that resource for any other purpose, or (e) a substantial utilization or alteration of any natural resource in such a way as to have an adverse impact on another resource, or (f) the utilization of a technology that is concerned with resource utilization and that may induce environmental damage, or (g) a significant effect on the environment or will likely lead to a further development which is likely to have a significant effect on the environment, or (h) a significant effect on the social, economic, environmental health and cultural conditions that influence the lives of people or a community in so far as they are caused by environmental effects; (« exploitation »)

Application Submission Four Components of Application: Covering letter & description Application form EA Information required is listed on form Application fee – no exceptions Range $500.00 to $100,000.00

Initial Review Branch Contact Person Assigned Application Complete? Project Manager Relevant Expertise Application Complete? If not, request more info If yes, start public and technical reviews

Public & Technical Review Public Notification Advertise Public Registries – Local and Winnipeg Hard and electronic Web Lists Current Proposals Out for Review Due Date & Contact in EAL Average is 30 days, not prescribed

Public & Technical Review Iterative Request Written Public Input Technical Advisory Committee (TAC) Parallel to public process Provincial and federal experts Federal contacts – one window Canadian Environmental Assessment Agency (CEAA) (e.g.) Infrastructure and Transportation Innovation, Energy and Mines Local Government Agriculture, Food and Rural Initiatives Culture, Heritage Tourism and Sport Conservation (includes regional offices, parks etc) Water Stewardship Canada-Manitoba Agreement on Environmental Assessment Cooperation – will determine a Federal trigger based on ownership, land or funding.

Ongoing Iterations More Information or Clarification Adds time Summarize Comments Summary Report Disposition Registry Updates

Typical EA Considerations: Water Quality Air Quality Terrestrial – Soil, Habitat Nuisance – Odour, Noise Public Issues and Concerns Fish and Wildlife Chemicals/Spill Prevention Socio-Economic, Heritage

Clean Environment Commission Optional Clean Environment Commission (CEC) What/How? Hearing, meeting, or investigation Why? Scope, impacts of project Public concern Director recommends to Minister Or, Minister can direct at any step in the process Terms of Reference provided (scope)

Clean Environment Commission CEC Hearing Chair appoints panel Notice (mandatory) Pre-hearing meeting (optional) Participant Assistance (optional) Adds significant time to process Six to 18 months or more

Clean Environment Commission Hearing Involvement Hearing Panel Proponent Participants Presenters Consultants or experts General Public

Clean Environment Commission Hearing Process Guidelines CEC web page CEC report to Minister Within 90 days Licensing & non-licensing recommendations Recommendations are not binding

Clean Environment Commission Common Misperceptions Hearing May occur for any class not just class 3 Never absolutely required, even for class 3 CEC Report Recommendations Recommendations only Project specific vs. provincial implications Consideration of fairness to all applicants

Licensing Decision Director (Classes 1 & 2) Minister (Class 3) Option to increase class Minister (Class 3) Option re projects that underwent CEC process Issue or Refuse Circulate Draft License to TAC Issue Licence Post Disposition Summary and Licence

Licensing Decision Typical Licence Conditions: Pre-construction Rare plants, migratory birds, etc Construction Mitigation Silt screens, monitoring, seasonal windows, etc. Notification Inspections

Licensing Decision Operational Conditions: Monitoring and reporting Discharge limits Emergency response plan Odour and noise Complaint based Decommissioning Financial assurance

Appeals Process Director’s Decision to the Minister Classes 1 and 2 30 Days from issue date Director’s recommendation re a CEC Hearing Minister’s Decision to Cabinet Class 3 6 weeks from issue date Construction May Commence During Appeal

Alterations Minor Major – New Proposal Director approves, no public review Act Amendments now require posting Major – New Proposal Same as for all EA applications Includes the public and TAC reviews Decision Based on Environmental Effects Significant or insignificant

Overview Environmental Assessment and Licensing Branch (EALB) Manitoba’s Environmental Assessment and Licensing process Summary of the Assessment of Victory Nickel Inc.’s Minago Project Proposal Next Steps

Proposal Summary Proponent: Victory Nickel Inc. (VNI) Proposal Name: Minago Project Class of Development: 2 Type of Development: Metal Mining and Milling Client File No.: 5463.00

Overview Proposal received May 3, 2010 from Victory Nickel Inc. Proposed construction and operation of a new 10,000 tonnes per day open pit nickel ore mining, milling and concentrating Development, “Minago Project” To be located on PTH No. 6 ~225km south of Thompson

Placed in Public Registries on May 31, 2010: Union Station, Winnipeg Overview (con’t) Placed in Public Registries on May 31, 2010: Union Station, Winnipeg Winnipeg Public Library Manitoba Eco-Network Thompson Public Library Wabowden Community Council Office Advertised in three newspapers Proposal sent to the members of the Technical Advisory Committee (TAC) and federal departments via the Canadian Environmental Assessment Agency (CEAA) Closing date for comments was July 15, 2010 Thompson Nickel Belt Wed. June 9, 2010 Thompson Citizen Fri. June 11, 2010 Winnipeg Free Press Sat. June 5, 2010

The Provincial TAC for the Minago Project included: TAC Review The Provincial TAC for the Minago Project included: Agriculture, Food and Rural Initiatives Conservation - Aboriginal Relations, Air Quality, Climate and Green Initiatives, Environmental Operations, Environmental Services, Forestry, Lands, Parks and Natural Areas, Pollution Prevention, Sustainable Resource and Policy Management, Wildlife Culture, Heritage and Tourism Health Infrastructure and Transportation Innovation, Energy and Mines Labour and Immigration Local Government Water Stewardship In addition the Canadian Environmental Assessment Agency received a copy to distribute to Federal departments to determine if a federal trigger exists for the project.

TAC Roles To identify environmental effects and mitigation measures specific to their area of expertise relating to development proposals that are undergoing environmental assessment, and To identify other regulatory requirements which apply to the project.  The TAC includes both provincial and federal members, so the regulatory requirements of both levels of government are identified during the assessment process  The TAC has two primary roles in the Manitoba environmental assessment process: All TAC comments received on a project will appear in the project summary, generally verbatim.  These project summaries and the original TAC comments are placed in public registry locations, and may be provided directly to proponents and members of the public.  As mentioned above, the project summaries are also posted online on the EALB website.    If additional information is desired for the purposes of the environmental assessment, it may be requested through the EALB contact person.  TAC members do not request information directly from the proponent or consultant unless the information requested is highly technical and the EALB contact person has suggested direct discussion to resolve technical issues. 

Minago Project – Summary of TAC Comments TAC Member Concern Proposed Mitigation CEAA Based on federal survey, CEAA will not apply to the project. N/A Infrastructure and Transportation No concerns. Culture, Heritage and Tourism CEAA – Canadian Environmental Assessment Agency CEAA – Canadian Environmental Assessment Act

Minago Project – Summary of TAC Comments TAC Member Concern Proposed Mitigation Conservation – Sustainable Resource and Policy Management No concerns. N/A Conservation – Parks and Natural Areas No comments. Conservation – Environmental Services 1) Spill Contingency and Emergency Response Plan reference error EAL to require plan to be updated and approved EAL - Environment Act Licence

Minago Project – Summary of TAC Comments TAC Member Concern Proposed Mitigation Conservation – Environmental Services 2) Both proposed sewage treatment facilities must meet standard design and discharge criteria EAL will require standard construction and operating procedures for sewage treatment and effluent discharge. 3) Burning of non-hazardous waste is not recommended; residual non-hazardous waste should be disposed of in accordance with the Waste Disposal Grounds Regulation. EAL will require waste to be disposed of in accordance with the Waste Disposal Grounds Regulation

Minago Project – Summary of TAC Comments TAC Member Concern Proposed Mitigation Conservation – Environmental Services 4) Proposed land farming of petroleum-impacted soils should be designed, operated and decommissioned in accordance with MB’s Guideline for the treatment and disposal of petroleum contaminated soil. EAL will require adherence to the Guideline document.

Minago Project – Summary of TAC Comments TAC Member Concern Proposed Mitigation Conservation – Pollution Prevention 1) Environmental Protection Plan should include potential dust and emissions from specific sources. Accepted by VNI. 2) There was no ore composition that might indicate the presence of heavy metals that may be emitted into the air as particulate/dust. Environmental Protection Plan will include tailings material analysis.

Minago Project – Summary of TAC Comments TAC Member Concern Proposed Mitigation Conservation – Pollution Prevention 3) If a dryer is installed, control measures to address particulate matter will be required. Accepted by VNI. 4) Potential for noise nuisances will not be significant, given the project location. N/A 5) It may be necessary to perform GHG inventory reporting. GHG – Greenhouse Gases

Minago Project – Summary of TAC Comments TAC Member Concern Proposed Mitigation Innovation, Energy and Mines 1) Would there be an impact created on the overall tailings and waste rock management facility (TWRMF) by the cone of depression from the pit dewatering wells? Would the pumping wells draw water from underneath the TWRMF and result in difficulty to keep the water cover? Although VNI does not anticipate such impacts, additional geotechnical investigations are planned for the detailed engineering design phase.

Minago Project – Summary of TAC Comments TAC Member Concern Proposed Mitigation Innovation, Energy and Mines 2) The dam design criteria do not mention dewatering cone for the entire TWRMF. Although VNI does not anticipate such impacts, additional assessments are planned for the detailed engineering design phase. Water Stewardship 1) Comply with MWS Wetland Policy EAL will require a minimum 3 metre buffer zone from wetlands. 2) Limit phosphorous to <1.0 mg/L in effluent EAL will require an effluent limit of 1.0 mg/L. 3) Comply with Tier 2 MWQO and MMER EAL will require effluent to meet discharge criteria. MWS – Manitoba Water Stewardship MWQO – Manitoba Water Quality Objectives MMER – Metal Mining Effluent Regulations

Minago Project – Summary of TAC Comments TAC Member Concern Proposed Mitigation Water Stewardship 4) Line the tailings management facility with material meeting 1x10-7 cm/s hydraulic conductivity to limit seepage EAL will require the liner to be constructed with the maximum hydraulic conductivity and testing/verification will be required prior to authorization to use the facility is given. 5) Verify "no effects" on the baseline flow of surface waters due to the cone of depression established during groundwater pumping. EAL will require verification.

Minago Project – Summary of TAC Comments TAC Member Concern Proposed Mitigation Water Stewardship 6) If construction occurs in the immediate vicinity of surface water, an undisturbed native vegetation area shall be established and maintained. EAL will require 30-metre buffer zone, within which permanent development is prohibited and a maximum disturbance of 25% of the shoreline length. 7) Confirm the predictions of runoff using a comprehensive model that includes surface flow, interflow and groundwater flow. EAL will require.

Minago Project – Summary of TAC Comments TAC Member Concern Proposed Mitigation Water Stewardship 8) Develop and implement a monitoring program for the fish community, subject to review and approval by the Fisheries Branch. EAL will require. 9) Monitor Oakly Creek and the Minago River upstream and downstream of the final discharge point. EAL requirements will include a comprehensive monitoring program including water quality, sediment quality, fish tissue, and toxicity testing.

Minago Project – Summary of TAC Comments TAC Member Concern Proposed Mitigation Conservation - Operations 1) Recommends the Norway House Resource Management Board be kept informed of planned long term monitoring programs and given the opportunity to request information from them. Accepted by VNI. 2) Recommends management of the access road be full responsibility of Proponent

Minago Project – Summary of TAC Comments TAC Member Concern Proposed Mitigation Conservation - Operations 3) Burning of non-hazardous waste is not recommended; residual non-hazardous waste should be disposed of in accordance with the Waste Disposal Grounds Regulation. EAL will require waste to be disposed of in accordance with the Waste Disposal Grounds Regulation

Minago Project – Summary of TAC Comments TAC Member Concern Proposed Mitigation Conservation - Operations 4) Proposed land farm of petroleum-impacted soils should be designed, operated and decommissioned in accordance with MB’s Guideline for the treatment and disposal of petroleum contaminated soil. EAL will require adherence to the Guideline document.

Minago Project – Summary of TAC Comments TAC Member Concern Proposed Mitigation Conservation - Aboriginal Relations Branch 1) Necessity to consult with all potentially affected First Nations and Metis groups. Results of the consultations will be considered for inclusion in an Environment Act Licence as appropriate.

Overview Environmental Assessment and Licensing Branch (EALB) Manitoba’s Environmental Assessment and Licensing process Summary of the Assessment of Victory Nickel Inc.’s Minago Project Proposal Next Steps

Parallel process: Crown-Aboriginal Consultation Next Steps EALB Contact reviews all public/TAC comments to determine if additional information is needed Iterations until all environmental assessment issues are satisfactorily resolved Parallel process: Crown-Aboriginal Consultation Next Steps Once the deadline date for comments on a project is reached, the contact person in the EALB reviews public and TAC comments received, and determines whether additional information is needed to address comments.  If so, the information is requested from the proponent or their consultant.   There may be several iterations of review and additional information before the contact person is satisfied that all environmental assessment issues are satisfactorily resolved.  

The draft Licence is circulated to TAC for comment For most projects, a draft Environment Act Licence is prepared with applicable specifications, limits, terms and conditions The draft Licence is circulated to TAC for comment Copies of all Summaries and Final Licences are placed on the EALB website, in all public registries and provided to interested persons. Next Steps Eventually, a draft Environment Act Licence is prepared for most projects.  This document is circulated for TAC review, accompanied by a project summary that details the environmental assessment process for the project. The project summary may include additional information that was requested during the environmental assessment process.  TAC members normally have two weeks to review and comment on draft licences.  Once draft licence comments have been received and incorporated as necessary, the licence is finalized.  Copies of all final licences and project summaries are posted on the EALB website at www.gov.mb.ca/conservation/eal/archive.   While extensions for TAC comments on proposals and draft licences can be provided by the project contact person, the normal time periods are usually adequate, and extensions are sometimes limited by project construction and funding considerations.  Departments with multiple reviewers, such as Conservation, organize their reviews internally to remain within the requested deadlines for the great majority of projects.

Next Steps An Appeal Period of 30 days is provided following the issuance of an Environment Act Licence The Licence remains valid during the appeal period Enforcement of the conditions of the Licence is carried out by Manitoba Conservation