Mining and Environmental Impact Assessment in Quebec and Newfoundland and Labrador: The Experience...

Mining and Environmental Impact AssessmentI Q éb d N f dl d d L b dIn Québec and Newfoundland and Labrador:The Experience of New Millennium Iron Corp

Global Mining Summit 2014 Las Vegas, Nevada

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Las Vegas, Nevada

New Millennium Iron Corp.Paul F. Wilkinson, Ph.D., Senior Vice President, Environmental and Social Affairs

Las Vegas Paiute Tribe

NML acknowledges that we are on the territory of the Las Vegas PaiuteTribe descendants of the Tundinu (Desert People) and a sovereignTribe, descendants of the Tundinu (Desert People) and a sovereignnation under the Indian Reorganization Act of 1934 and the Las VegasTribal Constitution of 1970

2Las Vegas ‐March 2014

Forward looking statements and other legal matters

• This Presentation contains certain forward looking statements and forward looking information (collectively referred to herein as “forward looking statements”) within the meaning ofapplicable Canadian securities laws. All statements other than statements of present or historical fact are forward looking statements. Forward looking information is often, but not always,identified by the use of words such as “could”, “should”, “can”, “anticipate”, “expect”, “believe”, “will”, “may”, “projected”, “sustain”, “continues”, “strategy”, “potential”, “projects”, “grow”,“take advantage”, “estimate”, “well positioned” or similar words suggesting future outcomes. In particular, this Presentation contains forward looking statements relating to futureopportunities, business strategies, mineral exploration, development and production plans and competitive advantages.

Th f d l ki t t t di th C ti b d t i k t ti d ti f th C ti i ti i t d fi i l f• The forward looking statements regarding the Corporation are based on certain key expectations and assumptions of the Corporation concerning anticipated financial performance,business prospects, strategies, regulatory developments, exchange rates, tax laws, the sufficiency of budgeted capital expenditures in carrying out planned activities, the availability andcost of labour and services and the ability to obtain financing on acceptable terms, the actual results of exploration and development projects being equivalent to or better than estimatedresults in technical reports or prior activities, and future costs and expenses being based on historical costs and expenses, adjusted for inflation, all of which are subject to change basedon market conditions and potential timing delays. Although management of the Corporation consider these assumptions to be reasonable based on information currently available tothem, they may prove to be incorrect.

• By their very nature, forward looking statements involve inherent risks and uncertainties (both general and specific) and risks that forward looking statements will not be achieved. Undueli h ld t b l d f d l ki t t t b f i t t f t ld th t l lt t diff t i ll f th b li f l bj tireliance should not be placed on forward looking statements, as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives,

expectations and anticipations, estimates and intentions expressed in the forward looking statements, including among other things:

• Inability of the Corporation to continue meet the listing requirements of stock exchanges and other regulatory requirements, general economic and market factors, includingbusiness competition, changes in government regulations or in tax laws;

• general political and social uncertainties;• commodity prices;• the actual results of exploration, development or operational activities;• changes in project parameters as plans continue to be refined;g p j p p ;• accidents and other risks inherent in the mining industry;• lack of insurance;• delay or failure to receive board or regulatory approvals;• changes in legislation, including environmental legislation, affecting the Corporation;• timing and availability of external financing on acceptable terms;• conclusions of, or estimates contained in, feasibility studies, pre-feasibility studies or other economic evaluations;• and lack of qualified, skilled labour or loss of key individuals.

• Readers are cautioned that the foregoing list is not exhaustive.

• The forward looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward looking statements included in this Presentation aremade as of the date of this Presentation and the Corporation does not undertake and is not obligated to publicly update such forward looking statements to reflect new information,subsequent events or otherwise unless so required by applicable securities laws.

• With respect to the disclosure of historical resources in this Presentation that are not currently in compliance with National Instrument 43-101, a qualified person has not done sufficientwork to classify the historical estimate as current mineral resources or mineral reserves, the Corporation is not treating the historical estimate as current mineral resources or mineral

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y , p greserves and the historical estimate should not be relied upon.

• Dean Journeaux, Eng., is the Qualified Person as defined in National Instrument 43-101 who has reviewed and verified the scientific and technical mining disclosure contained in thisPresentation.

Topics

• Overview of NMLOverview of NML• Our strategic partner• Our projects

E i t l j i di ti i C d• Environmental jurisdiction in Canada• Generic environmental assessment process in Canada• Generic impact assessment method in Canada• Direct-Shipping Ore Project environmental impact assessment• Taconite Project environmental impact assessment• Beyond impact assessment – obtaining and retaining the socialBeyond impact assessment obtaining and retaining the social

licence to operate


NML at a glance

Labrador Trough

Distances Km Miles

Montreal Schefferville 1,150 715

Montreal Sept-Îles 750 466

• Founded in 2003

• Listed on the Toronto Stock Exchange (“NML”) and OTCQX (“NWLNF”)

Millennium Iron Range Menihek

Sept-Îles Schefferville 510 316

St. John’s Schefferville 1,270 789 • Among the world’s largest holders of certified iron ore resources

• Highly experienced andNML Project Areas

• Highly experienced and innovative management team, especially with Labrador Trough ores

• Strong strategic partner inStrong strategic partner in Tata Steel with starter DSO Project now in commercial production

• Large-scale Taconite

Mesabi Iron Range

Marquette Iron Range

Project feasibility study in final review stage

• NML-controlled Millennium Range resource base offers


resource base offers further development potential

Vision and expertise in all aspects of iron ore

Position at New Millennium

Years experience

Area of expertise Previous employment experience

Robert Patzelt, Q.C. President and CEO, Director 30 Diversifiedbusiness and law

Senior VP: Scotia Investments LimitedBoard member of various industry

associations

Dean Journeaux Executive Vice-Chairman, Director 40+ Iron OreFormer President and CEO of NML

Former President of Met-Chem and Project Manager of QCM Mont-Wright

Bish Chanda Senior VP Marketing & Strategy 35+ Iron Ore Chief engineer: IOC

S i VP D l t M Mi i O & C t llMoulaye Melainine Senior VP Development 25+ Mining Manager Mining Ops & Comptroller: SNIM, Mauritania

Paul F. Wilkinson Senior VP Environmental & Social Affairs 35+ Environment & social sciences

PFW & Associates Inc., Associate Director of Northern Studies: McGill University

Mark Freedman CFO 17 Accounting Partner: Roll Harris & AssociatesMark Freedman CFO 17 Accounting Partner: Roll Harris & Associates

Ernest Dempsey VP Investor Relations & Corporate Affairs 35+ Iron ore sales & marketing VP: Mitsubishi, IOC

Cathy Dornan VP Communications 20+ Communication & public relations

Cathy Dornan Public Affairs Inc. Bristol Communications Inc.

Rock Gagnon VP Metallurgy & Plant Design 19 Iron ore Metallurgical Engineer:MetChem and COREM

Stephen Fontanals Director of Operations Research 15 Iron ore Financial Controller, Wabush Mines

Canadian mining

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B.K. Balakrishnan Chief Geologist - Consultant 40+ Canadian mining geology Geologist: IOC

Ahead of the pack

• Already a producer, not a developer or exploration company. • Long-life resources that can yield multiple projects with a range ofLong life resources that can yield multiple projects with a range of

high quality, saleable products to competitively service iron and steelmakers worldwide.

• Partnership with major steelmaker capable of financing projects and providing offtake commitments sufficient to develop the resource, with NML retaining an equity position.

• Without cutting corners, management has developed expert knowledge of the resource base through exploration test work atknowledge of the resource base through exploration, test work at leading laboratories and engineering to build the strongest possible projects and mitigate operational risk.

• Innovative mine-to-port logistics for the Taconite Project are aimedInnovative mine to port logistics for the Taconite Project are aimed at minimizing the cost of transportation inherent in moving a bulk commodity.

• Sustainable development and long-standing relationships with our

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communities.

Joint Venture partner with captive iron ore need

One of the world’s largest steel companiescompanies

Building strategic production base in Canada through 80/20 JV with NML called Tata Steel

a respected multi-national company

with NML called Tata Steel Minerals Canada (TSMC)

Aiming to provide low cost feed for its European operations,for its European operations, which require ~20 Mtpy of iron ore

Owns 26.3% of NML and has 3 Board members

Partner in DSO and Taconite projects

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p j

Strength from ties with India’s premier business group

• Diverse businesses in 7 sectors

Operations in o er 80 co ntries• Operations in over 80 countries, products/ services in 85 countries

• Largest Indian private sector employer with over 456,000 employees

• Group revenue of over $100Group revenue of over $100 Billion in FY 2011-2012

• International revenue ~ 58%

• Tata Steel segment has crude steel capacity of ~ 30 mtpy and over 80,000 employees

ld id

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worldwide

DSO starter operation continues in 2014. . .

• Continued trial production and sales of ~62% Fe grade DSO using mobile dry crushing and screening facilities, with drying introduced to reduce product moisture.

• Link to TSH Railway, including KéRail portion, expected to be operational in June 2014.• Construction of processing plant, product load out, storage and train loading system will be

focus in summer and fall of 2014.• Handling and marketing arrangements with Iron Ore Company of Canada provide interim

port solution and continue into 2014port solution and continue into 2014. • Long term solution is via ownership in the Port of Sept-Îles’ multi-user dock, which is

scheduled for completion in 2014.• TSMC currently reviewing cost of completion for the Project, along with development plan

for the Howse joint venture.

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Crushing and Screening Plant TSMC Ore Train Downbound on the QNS&L Loading into the Vessel Hold

. . .while high quality processed ore facility is completed

• Life-of-mine central processing complex, housed under a weather-proof structural dome, first in the world, now well into construction.

• Will result in operational efficiency and products with consistent quality.

• 84% weight recovery with innovative integrated plant (>90% Fe recovery) to maximize resource utilization

• Will be first company in Schefferville area to operate year round

• Filtering and drying systems are designed to achieve < 2.5% moisture during the winter for rail haulage, stockpiling and shiploading.

• Processing plant will yield 4.2 Mtpy (nominal capacity) of sinter feed and pellet feed.

• Twelve-month revenue stream.

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Drum Scrubber Hydro Classifiers WHIMS Thickener Foundation

DSO resource base for the long haul

26.5 Million Tonnes Measured Resources

72.4 Million Tonnes Indicated Resources

25 Existing DSO Deposits

72.4 Million Tonnes Indicated Resources

6.7 Million Tonnes Inferred Resources

25 Existing DSO DepositsSufficient resources grading 58-60% Fe

for 15+ years of mine life

New DSO TargetsNew anomalies based on results of aerial

gravity surveys are being investigated

Howse JVPotential for additional resourcesPotential for additional resources

InfrastructureOptimization of resource base and potential

increase in total production by leveraging

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increase in total production by leveraging existing infrastructure

Taconite: A major project growth opportunity

• Binding Heads of Agreement Signed with Tata Steel in March 2011

• Feasibilty study of LabMag* and KéMag deposits• Feasibilty study of LabMag and KéMag deposits- Budget of $50 million- Jointly managed and cost shared: Tata Steel 64%, NML 36%

• Scope under study is 22 Mtpy concentrator feeding 17 Mtpy pellet plants- Tata Steel Europe expected to require approximately 10 Mtpy of product - Remaining output will be for other partners and merchant sales

• Study undergoing shared review to address remaining key parameters for investment decision

• Financing alternatives also being reviewed

• Partnership development with potential investors and offtakers to be

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accelerated

*Naskapi Nation of Kawawachikamach owns 20% of LabMag

Natural advantages with state-of-the-art engineering

• Magnetite ore and simple geology with shallow mines and low stripping ratio.

• Large scale, most technologically advanced and energy efficient equipment to be installed.

• Iron ore slurry transportation option:Iron ore slurry transportation option:– Well established in Brazil, Mexico, India and

Tasmania, as well as in cold weather climate of Inner Mongolia

Fi i d id l f l i– Fine grained concentrate ideal for slurry transportation

– Cost-effective alternative to rail that would give Taconite Project significant competitive advantage among North American pellet producers

• Investment in new dock at Sept-Ïles enables product shipment in full range of vessel classes and optimizes water transportation

t t ll k t

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cost to all markets.

Serving a growing pellet market

Higher Productivity achieved through:

Uniform quality Higher purityHi h t th

Increased consumption due to minedepletion & ore degradation :

Mine systems depletingImpurities risingM ' lt fi ' t dHigher strength

Lower fines generation

New demand from DRI based EAF

More 'ultra-fines' generatedLower sinter plant productivity

Addresses environmental concerns:New demand from DRI-based EAF steelmaking:

Lack of quality scrapAccess to natural gas or coalEAF mills able to produce

Addresses environmental concerns:Sinter plants under pressureUse of pellets in BF iron making reduces coke consumption and emissions

Source: Wood Mackenzie, April 2013; NML market contacts

plarger range of productsGrowth in the US and MENA

Pellet usage in China has increased as government implements pollution controls

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New direction building momentum

• The DSO Project joint venture with Tata Steel is transforming NML from junior miner to actual producer/supplier.

• Construction is moving forward with aim to reach production level of 6 Mtpy by 2016.

• Added resource and potential production capacity.

T th ith t i t l NML i t d b it• Together with strong internal resources, NML is supported by its strong partnership with a leading international steelmaker providing financial strength and a captive market.

• Multi-billion dollar Taconite Project now under shared review is designed as long-term, low-cost producer of value-added pellets with opportunity to significantly increase NML shareholder value.

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pp y g y

Supporting our communities


Environmental Jurisdiction in Canada

• Division of powers between federal and provincial governments established in 1867, before environmental assessment became an issue

• Provinces have jurisdiction over natural resources

• But federal government has jurisdiction over such matters as migratory birds, navigable waters, inter‐provincial pipelines

Thus

Many mining projects are subject to both federal and

provincial environmental assessment regimes

• Modern treaties establish EA regimes with special Aboriginal involvement


Generic Environmental Assessment Process in Canada

• Most EA processes in Canada include the following major steps:

proponent submits project description to regulator

regulator decides whether project triggers EA

regulator issues guidelines for environmental impact statement

proponent prepares and submits EIS to regulator

regulator determines adequacy of EIS

public hearings

regulator decides whether and under what conditions project may proceed


Generic Impact Assessment Method in Canada (continued)

• Most environmental impact statements in Canada have the following structure:

describe the project, including its rationale

describe the environment

identify Valued Ecosystem Components (VECs) (biophysical and social)

Identify sources of impact on VECsy p

Identify likely interactions between sources of impacts and VECS, including cumulative impactsincluding cumulative impacts


Generic Impact Assessment Method in Canada (continued)

assess importance of likely impacts using standardized criteria

where potentially important negative impacts are identified, devise mitigating measures to reduce/eliminate them (seek g g (measures to maximize potentially significant positive impacts)

assess significance of post-mitigation residual impacts. Whereassess significance of post mitigation residual impacts. Where appropriate, propose compensation for residual impacts that cannot be mitigated

propose monitoring and follow-up programmes


DSO Project Environmental Impact Assessment

• DSOP divided into five assessment units: Projects 1a and 2b in jLabrador and Project 2a in Québec have so far undergone EA

• Project 1a:

Government of Newfoundland and Labrador:

registered April 2008 under Newfoundland & Labradorregistered April 2008 under Newfoundland & Labrador Environmental Assessment Act and regulations

August 2008 GNL required preparation of full EIS

December 2008 GNL submitted EIS guideline


DSO Project Environmental Impact Assessment (continued)

December 2009 EIS tabled:December 2009 EIS tabled:

design as principal tool to avoid/reduce impacts:

o re‐use existing railbedo re‐use existing railbed

o tailings in abandoned pits containing no fish

most infrastructure on disturbed siteso most infrastructure on disturbed sites

o workers’ camp near mine site to avoid negative social impacts on First Nation communities

o recovery and re‐use of waste heat



Valued Ecosystem Components:

Biophysical:

o atmospheric quality, including noiseo water qualityo water balanceo surface depositso wetlandso migratory and sedentary caribou + habitato hunted and trapped mammalso wolverineo at-risk avifaunao fish and habitat



Socio-economic:

o caribou subsistence huntingo local employment/contractingo Newfoundland and Labrador benefitso trappingo family and interpersonal relationshipso gender equity

• EIS concluded no major negative biophysical impacts and important positive socio-economic benefits:

F b 2010 ti ith GNL l ti ittFebruary 2010 meeting with GNL evaluation committee

April 2010 responses to evaluation committee questions



January 2011 GNL confirms environmental release:

Delay of several months attributable to complaints by Québec Innu about inadequacy of GNL consultation.

Conditions of Release:

Women’s Employment Plan;dditi l d t t diadditional groundwater studies;

real-time water quality and quantity monitoring;contingency plan for disposal of dewatering water and tailings slurry;environmental protection plan including measures to protect caribou.



Government of Canada:

April 2008 Project Description pursuant to Canadian Environmental Assessment Act submittedAct submitted August 2009 GoC requires EIS for explosives factory and railway lineDecember 2009 EIS tabledJanuary 2010 law changed through Supreme Court of Canada decision (Red Chris)October 2010 GoC determines federal EA no longer required

• Project 2a:Government of Québec:

December 2009 project description submitted to Kativik Environmental Quality CommissionMay 2010 KEQC issues guidelinesSeptember 2010 EIS submittedMay 2011 questions from KEQCOctober 2011 responses to KEQC questionsOctober 2011 responses to KEQC questionsMarch 2012 additional questions from KEQC



April 2012 public hearingsMay 2012 responses to additional KEQC questionsJanuary 2013 Certificate of Authorization issuedJanuary 2013 Certificate of Authorization issued

Conditions of Release:

o water quality data;q yo hydrogeological data;o monitoring and follow-up programme, including local committee, addressing

water quality, sediments, dust propagation, air quality (including inter-provincial) caribou telemetry acid drainage;provincial), caribou telemetry, acid drainage;

o research on rehabilitation using local shrub species;o five-year progressive rehabilitation plans;o decommissioning plan;go information/communications programme (including perceptions study).


No federal jurisdiction triggered



• Project 2b:Government of Newfoundland and Labrador:

Registered December 2009March 2011 project released without EIS, subject to conditions:

h d l t dhydrogeology study;water balances;real-time water quality and quantity monitoring;overview of migratory bird species (broadly defined);overview of migratory bird species (broadly defined);study of ecosystem value of wetlands;environmental protection plan.


Project Description tabled December 2009March 2010 GoC determines no federal triggerMarch 2010 GoC determines no federal trigger


DSO Project Environmental Impact Assessment - Overview

• All regimes applied fairly and efficientlyAll regimes applied fairly and efficiently

• GNL decision not to require EIS for Project 2b justified by its proximity and similarity to Project 1a and the fact that there would be no tailings disposal therethere

• Only major unpredicted delay (Project 1a) attributable to Innu dissatisfaction with GNL consultation. New GNL consultation policy adopted April 2013

• Conditions reasonable, but several costly to implement

Nevertheless

• EA is costly and time-consuming and adds uncertainty for proponents, shareholders and others


Taconite Project Environmental Impact Assessment

i b é C bi d

Applicable Environmental Regimes

Regime LabMag KéMag Combined

Regime of general application established by the Canadian Environmental Assessment Act 2012

✔ ✔ ✔

Newfoundland and Labrador Environmental Protection Act ✔ ✔

Regime of general application established by the Québec Environment Quality Act

✔ ✔ ✔

Regulatory regime pursuant to the National Energy Board Act

✔ ✔

Provincial regime of Chapter 23 of the James Bay and N th Q éb A t

✔ ✔Northern Québec Agreement

Provincial regime of Chapter 14 of the Northeastern Québec Agreement (Règlement sur l’évaluation et l’examendes impacts sur l’environnement dans une partie du Nord‐

✔

est québécois)


Taconite Project – Environmental Impact Assessment (continued)


Taconite Project Environmental Impact Assessment (continued)

• 2005-2007 collection of biophysical baseline data for LabMagProject

• 2007 LabMag Project suspended in favour of DSOP: all biophysical baseline data to databases; KéMag Project identified but not pursuedpursued

• 2011 Taconite Project revived:

biophysical baseline data collection for KéMag initiated andbiophysical baseline data-collection for KéMag initiated and completed;secondary socio-economic baseline data compiled and field collection of primary socio economic data planned;collection of primary socio-economic data planned;analysis of 2005-2007 LabMag biophysical baseline data completed;

t i bilit t l d l dsustainability tool developed.


Taconite Project Environmental Impact Assessment (continued)

• March 2013 draft Project Description approved by GoCsubject to minor changessubject to minor changes

• January 2014 feasibility study, including environment chapter, completedcompleted

• March 2014 Project Description updated for early tabling with all Québec, Newfoundland and Labrador and federal regulators

• Upon tabling of Project Description, field collection of socio-i b li d t ill b i iti t d d j blieconomic baseline data will be initiated, and a major public

information/consultation programme will be launched


Social Licence to Operate

• Holding environmental authorizations and permits from the regulators no longer enough in Canadag g g

• Mines – and other industrial/extractive activities – also require “social acceptability” or a “social licence to operate” from the directlysocial acceptability or a social licence to operate from the directly affected communities:

the EIS for an apatite mine in northern Québec was recentlythe EIS for an apatite mine in northern Québec was recently rejected in part because of the absence of social acceptability;

d ld i i B iti h C l bi j t da proposed gold-copper mine in British Columbia was rejected by the GoC in part because of the absence of social acceptability according to Prime Minister Harper.


Tata Philosophy: Inclusive & Stakeholder Focused


Tata Steel – Policies Aligned for Inclusive and Sustainable Growth


Social Licence to Operate – DSO Project

• NML and TSMC have taken numerous initiatives to obtain and maintain their social licence to operate for the DSOP:maintain their social licence to operate for the DSOP:

early and continued consultation with all stakeholders, including the opportunity to comment on drafts of the EIS;the opportunity to comment on drafts of the EIS;

five agreements with Aboriginal groups, including ongoing itt / ti iticommittees/activities;

caribou observation flights starting with exploration;

cash and in-kind contributions to Inuit Youth Mining Education Strategy;gy;


Social Licence to Operate – DSO Project (continued)

maintaining local offices with open-doors policy;

quarterly newsletter in English, French and Aboriginal languages;

scholarship programme for secondary students in seven Aboriginal communities;

collection and integration of Traditional Ecological Knowledge into EISs;

l j t ib ti t ti l i f t tseveral major contributions to recreational infrastructure;

training, employment and contracting opportunities



multi-year financial support to a college-level Aboriginal health sciences student;health sciences student;

visits to schools;

l l i f h i lpopular-language summaries of technical reports;

hiring of local field assistants;

advance notice of field work;

toll-free telephone number;

collaboration with Université Laval to evaluate suitability of local shrub species for large-scale restoration of disturbed sites;sites;



support to Canadian Business Ethics Research Network project with Naskapi Nation of Kawawachikamach to p j pdevelop curricular material on mining for secondary students;

fassist in Aboriginal participation in conferences;

caribou monitoring programme in partnership with Caribou Ungava;Ungava;

site visits for community members/leaders;

Elders’ committee;

First Nation financed to conduct independent environmental monitoringenvironmental monitoring.


Social Licence to Operate – Taconite Project

• Naskapi Nation of Kawawachikamach has 20% carried hi i t t i L bM P j t d 0 333%ownership interest in LabMag Project and a 0.333%

royalty as a result of an early investment;

• The Taconite Project will emulate and, where possible, build on the initiatives for the DSOP described above

• Unlike the DSOP, some of its infrastructure/activities will be adjacent to a predominantly non Aboriginal urbanbe adjacent to a predominantly non-Aboriginal urban area, which will create special challenges and opportunities

\


Thank You

TSX : NMLTSX : NML

OTCQX : NWLNF

www.NMLiron.comwww.NMLiron.com

Paul F. Wilkinson, Ph.D.Senior Vice-President, Environmental and Social Affairs

New Millennium Iron Corp.2325 rue Centre Local 1052325, rue Centre, Local 105Montréal (Québec) H3K 1J6

Tel.: (514) 448-9595 Fax: (514) 448-2963Email: [email protected]


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