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September 9, 2014 11th CPAR - Whitehorse, Yukon 1
Infrastructure to Sustain Canada’s North
11th CPAR, Whitehorse, Yukon
September 9, 2014
Rick Meyers The Mining Association of Canada
AGENDA
MAC & Canada’s Mining Industry Towards Sustainable Mining
Canada’s North – Mining’s Contribution Infrastructure North
Current Status (Access & Energy) Rationale for Infrastructure Investment
to help Sustain the North
About MAC
The national voice of the
mining industry in Canada:
Advocacy - to advance the
business of mining
Towards Sustainable Mining:
About performance, stewardship
and social license
39 Corporate members in iron ore,
gold, diamonds, oil sands, met-
coal, base metals, uranium
50 Associate members in
engineering, environment, finance
Advocacy work supported by
member committees: environment,
science, economics, public affairs,
Aboriginal relations
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Canada’s Mining Industry Contributions
Domestic Contribution
• 220 mines, 33 smelters and refineries
• 380K employees,
• $20B annual capital investment
• $71B taxes over the past decade
• Largest private sector employer of
Aboriginal Canadians
Global Competitor
• Attracted 18% of world exploration
spending in 2011
• TSX/TSX-V: 1,600 mining companies
listed, 47% projects outside Canada
• Minerals account for 23% of
Canada’s total goods exports
• Primary source of minerals for Clean
Technology
• Top five world producer in uranium,
potash, nickel, platinum, zinc
aluminum, diamonds, met coal 11th CPAR - Whitehorse, Yukon 3 September 9, 2014
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Northern Canada’s growth rooted in Resource
Development
• Infrastructure
Contributions to communities and
infrastructure
• Dawson City, Yukon; Yellowknife,
NWT; Rankin Inlet, Nunavut
• Roads, ports, hydro facilities, rail,
microwave communications
• Community health and sports facilities
• Environmental and Social Legacies
Pressure on regulators – pressure on
industry to improve performance
Importance of improving performance
Towards Sustainable Mining: Our Commitment
Established in 2004, TSM is MAC’s
commitment to responsible mining that
every member agrees to implement.
TSM’s primary objective is to enable
mining companies to meet society’s
minerals products needs in the most
socially, environmentally and economically
responsible way.
The program’s core strengths are:
• Accountability – Mandatory for all
members to report at the facility level
• Transparency – Annual reporting against
23 indicators with independent verification
• Credibility – Through ongoing
consultation with our Community of
Interest Advisory panel to improve industry
performance and help shape TSM for
continual advancement
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TSM Program Architecture
TSM Guiding Principles
Policy Frameworks
TSM Performance Protocols
Communities and People Environmental Stewardship Energy Efficiency
Aboriginal and Community Outreach
Crisis Management Planning
Safety and Health
Tailings Management
Biodiversity Conservation Management
Energy Use and GHG Emissions Management
Good Practice Guidance Assessment Protocols Performance Measurement
and Reporting System External Verification
Energy Efficiency
Guidance and Expectations
23 Performance Indicators in 6 protocols
Public Reporting and Verification
11th CPAR - Whitehorse, Yukon 7 September 9, 2014
Governance
Tailings Working Group Energy Task Force
Community of Interest Advisory
Panel
MAC Board of Directors
TSM Governance Team
TSM Initiative Leaders
Public Affairs Committee
Biodiversity Task Force
Other MAC Committees/ Taskforces/Working Groups
Towards Sustainable Mining (TSM)
11th CPAR - Whitehorse, Yukon 8
COI Advisory Panel Composition
Aboriginal peoples
Environmental NGO
Economic/community development
Social NGO including faith based groups
Finance/investment
International development
Labour/workplace
Media/communications
MAC Board of Directors
Junior Mining Company Representative
September 9, 2014
Minto (copper)
Bellekeno (silver)
Ekati (diamonds) Meadowbank
(gold)
CanTung (tungsten) Diavik
(diamonds)
Snap Lake (diamonds)
Wolverine (zinc)
Canada’s Northern Mining Operations
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Mining Contribution to GDP (1998 – 2008) (Source: Statistics Canada)
Canada (National) 3.5% - 4%
Provinces (South) 3% - 4%
Northern Territories 21% - 68% September 9, 2014
Contribution to Northern Economies
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Employment
35,000+ person-years
Production
>$30 Billion over 3 decades in
diamonds, copper, gold, silver,
lead, zinc, tungsten
Investment/Spending >$15 B+ in capital and
operating expenditures
Taxes ~$4 Billion to 2013
~$6 Billion by 2020
September 9, 2014
Business and Social Development
Local Business Development
• >$9 B Northern, $4 B Aboriginal
contracts
• More than 50 new Aboriginal
Businesses in the NWT alone
Workforce & Social development
• Extensive programming in Aboriginal
skills training and education
• >$100 million social and community
contributions
• Support for health care, education
and sports facilities
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Northern Realities (Canada vs. Europe!)
Facts
• >1/3 of Canada’s landmass
• Arctic conditions
• ~100,000 residents
• Most heavily subsidized region of
Canada
• Communities dependent on
Government - or resource
development for employment
Challenges
• High cost of living
• Little or no infrastructure (“BYO”)
• Employment opportunities are limited
• Resource development is the primary
economic advantage
Area of Canada’s North = Norway, Sweden, Finland, Denmark, France, Germany, Poland, Spain, Portugal, Italy combined.
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Lack of northern infrastructure impedes
development for communities and resources
• Few all-season roads means
dependence on alternate access
Requires winter roads, over land or
ice with short window of supply –
narrow seasonal access
Requires annual purchase of full
year’s supply inventory delivered
by air or sealift
Requires storage facilities for that
inventory
Requires airstrips
All at very high cost, extensive
planning, other limitations
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Northern Energy Supply
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Very limited hydro electric grids with no
connectivity to outside producers; no opportunity
to import power
• Off-grid power primarily diesel generation
• (Contributing to GHG production)
• Wind used in few locations
• Limited LNG use; lacks long-term storage
technology
All major cost considerations for
communities and potential developers
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Yukon Roads
• 3 – Wolverine – Zinc
• 1 – Minto –Copper
• 2 – Bellekeno - Silver
Yukon - Long history of mining
• 1890s Klondike Gold Rush
• Currently 3 Mines brought into
production
• $500 million investment
• Generates over 1,000 direct
jobs and innovative First
Nations partnerships
• Expanding the road network
would enhance exploration
opportunities
Yukon roads infrastructure
is the most advanced of the
three territories
Minto
Bellekeno
Wolverine
Yukon
16
Yukon
Future Development
Eagle Gold
Howard’s Pass
Mactung Carmacks Copper
Casino
• New projects will represent another
$3.5 - $5 billion in investment in the
next 10 years
• Potential for 2,000 new mining jobs,
plus equivalent in service sector
• Secure energy supply
• access to grid power
• Yukon as a northern gateway, with
good transportation links to Asia
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133 megawatts (MW) power
generation capacity
Hydro accounts for about 70%
from three dams.
The remainder comes from
diesel generation and a small
amount from wind
Yukon Development Corporation
is introducing LNG and evaluating
additional hydro facilities for
future power generation
Potential demand for 200 MW
capacity by 2021
Yukon Power Generation
Yukon Energy Transmission Grid
Northwest Territories Roads
NWT
NUNAVUT
.
Diamond
Mines Ice Road
Road network mainly
limited to the south
Supplemented by winter
ice roads
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Challenges
Seasonal Ice Road Access
Diavik
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• Companies joint venture of three Diamond Mines
• 400 km to operations - 75% over lake ice
• Sophisticated engineering support
• 2 month window to complete all haulage
• Annual number of loads ranges from 5,500 to 11,000
• Major demand on trucking
• Impacts of Climate Change
Source: NWT Economic Outlook 2014-2015
September 9, 2014
NWT Energy Options: Grid Power
All NWT hydro power was developed
by mining operations • Built to support mines and
neighbouring communities • Bluefish – Con mine
• Snare – Giant mine
• Taltson – Pine Point mine
All remain in operation today
and continue to supply
power to communities
11th CPAR - Whitehorse, Yukon 20
NWT
September 9, 2014
Energy Alternatives - NWT Hydro Expansion Project
• Project proposed to link existing isolated hydro facilities
• Cheaper power for communities and operating mines
• Displace millions of litres/year of diesel consumption annually
• Several hundred
construction jobs
• Lower cost of
living
Courtesy: NWT Energy Corp
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Nunavut needs road access
Meadowbank Access
Nunavut Nunavut:
• Largest northern territory; isolated communities
• No public road network
• Three company-operated private access roads
• No long-distance power transmission grid
• One mine produces ~23% of Territorial GDP
• Total dependence on air or sea for access & supply
September 9, 2014
Nunavut - Energy
• All Nunavut power is diesel generated (27 generators – 25 communities)
24 hours/day, 365 days/year
Highest energy costs in Canada
• Most supplies by annual sea-lift
• Requires inventory planning and
storage
• Very high cost for communities and
operations
Meadowbank mine resupply – Baker Lake, NU 11th CPAR - Whitehorse, Yukon 24
Nunavut
Iqaluit
September 9, 2014
Nunavut supply means major shipping costs
• Supplies shipped from
southern Canada
• Mine production shipped to
southern or international
markets
• Require deep water ports
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Supply and Logistics
• 52,000 tonnes of sealift supplies every 10-12 weeks from Quebec
• 54M litres of fuel annually
• 400 passengers per week (air)
• 60,000 lbs of cargo per week
• Baker – Meadowbank road year-round transportation for fuel, passengers, cargo
Meadowbank Mine (Nunavut’s only mine)
Nunavut
September 9, 2014
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Northern Canada’s Mining Potential More than $8 Billion in New Development in the Next Decade
Mary River
(iron)
Hope Bay
(gold)
High Lake
(base metals)
Meliadine
(gold)
Roche Bay
(iron)
Hackett River
(base metals)
Kiggavik
(uranium)
Ulu
(gold)
Selwyn
(base metals)
Prairie Creek
(base metals, silver)
Gahcho Kue
(diamonds)
Nechalacho
(rare earths)
Tyhee
(gold)
NICO
(gold, cobalt, bismuth)
Tamerlane
(base metals)
Courageous
(gold)
Back River
(gold)
Izok
(base metals)
Lupin
(gold) Jericho
(diamonds)
Committee Bay
(gold)
Chidliak
(diamonds)
Carmacks
(base metals)
Eagle
(gold)
Casino
(base metals)
Mactung
(tungsten)
Canada’s North:
Promising Development Potential
“Canada’s overall northern metal and non-metallic mineral
output is expected to grow by 91% from 2011 to 2020…”
- The Conference Board of Canada, January 2013
Northern Opportunity
The least explored region in Canada
Very high mineral potential.
Major projects advancing towards development
Anticipated new mineral production within five years.
Several additional projects expected by 2020
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Business Case:
Infrastructure development can help Sustain
the North
11th CPAR - Whitehorse, Yukon
Resource Development:
• North’s primary economic advantage
• Employment and community benefits
• Capital investment – business development
• Taxes & Royalties to Governments to further support healthy communities
Infrastructure:
• Critical for regional development
• Critical for mineral development
Providing infrastructure to support development also supports communities
Improves the Quality of Life
Reduces the need for Government subsidies and helps communities become more self-sufficient
Federal and Territorial Governments
Devolution to Territorial Governments Initiatives to facilitate northern development
Working towards improving regulatory processes
Funding for public geoscience
Education and workforce training initiatives
Negotiating to settle land claims
Territorial initiatives to improve access and energy supply
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FOR MORE INFORMATION
PLEASE CONTACT:
Rick Meyers
Vice President, Technical and
Northern Affairs
rmeyers@mining.ca
613-233-9392
Follow us on Twitter:
@theminingstory
Thank You
Merci