PRIMER

ENERGY, MINING AND SUSTAINABILITY IN NW • FEBRUARY 2008

Sizing Up Highway 37 Sizing It Up Transmission Scenarios Issue Regional Energy 138-kV 287-kV Northwest Self-Sufficiency Transmission Line Transmission Line Using Renewable (along with the Forest Kerr Scenarios for Powering Sources Run-of-River Hydro Project) Northwest British Columbia (see Figure 4 on page 7) (see Figure 3 on page 6) (see Figure 2 on page 5) Power Enough potential to meet Sufficient power for one Sufficient power for at Northwest British Columbia is at a turning Capacity local industry and commu- major mine, roughly least five major mines, nity needs. Responsibility equivalent in size to the and potentially more. point. A mining boom is underway, and for industrial power borne Galore Creek Mine.1 by companies. Regional energy projects there is pressure to find ways to power up Regional energy projects could tie into the line. new mining projects. Options for providing needed for additional power. Jobs Long-term local jobs About 500 jobs in a mine About 3,700 short-term more power to the region include the Northwest in renewable power the size of Galore Creek. construction jobs and Transmission Line, a 287-kilovolt (kV) power generation, as well as jobs More jobs likely over time over 2,000 medium-term in mining at a pace and through additional mines mine operation jobs if the line that would run along Highway 37; a smaller, scale consistent with and local power projects. five currently proposed 138-kV transmission line; or development of local power potential. mines proceed. Effects on Communities develop Communities remain on Communities remain on regional renewable energy resources. Communities – and potentially own diesel power, without grid diesel power, without grid – renewable power access in the foreseeable access in the foreseeable Each option would have impacts far beyond the generation projects. future. future. mere presence – or absence – of transmission wires. Mining developments pro- Mining developments Mining developments ceed at a measured pace, proceed with one proceed rapidly, By determining how much power is available for mine initially; overall, Sustainable Energy Solutions allowing for advanced likely creating heavy communities, planning to minimize a less dramatic pace social pressures on negative social impacts than with the 287-kV communities. and how much and maximize benefits. transmission line. is available to Effects on Impacts on rivers if About 20 kilometres of Over 300 kilometres of industry, trans- Water, hydropower sources right-of-way cleared north additional right-of-way Land and are not developed to of . from Terrace to Bob Quinn mission infra- best standards. Lake cleared, opening Wildlife No transmission line new access corridors for structure could Improved opportunities construction required south hunting and recreation. predetermine for long-term planning in of Meziadin Junction. the region. Significant cumulative Improved opportunities the pace, scale environmental impacts, Mine activity proceeds at for long-term planning affecting four major and nature of a more measured pace; for development in watersheds from multiple intensity of short-term the region. development mines built in the same impacts reduced. in the region Mine activity proceeds at time frame. for decades a more measured pace; intensity of short-term to come. impacts reduced. A 287-kV transmission line from Kemano to In particular, Climate Greenhouse gas emissions Greenhouse gas emissions Rapid mining develop- Kitimat in British Columbia. the 287-kV Change reduced as communities from mining increase at ment increases regional PHOTO: GREG BROWN, THE PEMBINA INSTITUTE Impacts switch from polluting a more measured pace in greenhouse gas emissions Northwest diesel generators to the short term. by up to 1,200%. Transmission Line, the option favoured by the renewable sources. British Columbia government, could be a significant Industrial development proceeds with fairly driver for new mining development. Communities minimal energy-related should consider the proposal carefully because it emissions. could dramatically alter the region’s future.

 1 The Galore Creek Mine contains one of the most valuable copper and gold deposits in North America. Construction on the mine began in 2007, but was halted due to rising costs. The project partners, NovaGold and Tech Cominco, plan to initiate a comprehensive review to evaluate alternative development strategies.  Sustainable Energy Solutions Power the Region More Than One Way to • • • • • •

energy options for the region. inform a public dialogue about renewables-based scenario to help as a 138-kV line scenario and a the 287-kV power line as well The Pembina Institute has evaluated industrial projects. for local communities and some new that could supply enough clean energy resources, including hydro and wind, has significant renewable energy Northwest British Columbia also energy to power one major mine. initial choice and could produce enough the British Columbia government’s project at Forest Kerr. This system was power line with a run-of-river hydro One alternative is to combine a 138-kV scenarios for powering the Northwest. the 287-kV line in the context of other an important opportunity to re-evaluate gives government and local communities the power line project as well. The break suspended in 2007, temporarily halting construction on Galore Creek was Northwest Transmission Line. However, contribute $158 million to building the proposed mines, Galore Creek, was to The company behind one of the region’s and . dependent communities, such as not provide power to local, diesel- the door to multiple mines, but would Transmission Line would indeed open 37. As proposed, the 287-kV Northwest extension of the power grid up Highway some companies are calling for an To facilitate new mine development, are underway. and many more exploration projects mines in Northwest British Columbia, for permits to build several new Mining companies have applied

in theregion. the communityofIskutpresentlyuses.Miningcomprises97%demandforpower mine developments. The GaloreCreekMinewouldrequire112 timesmorepowerthan Figure 1:Peakpowerdemandfromexistingcommunitiesandminesproposed “the .” Nass, Stikine and Skeena, the latter three knownsalmon also ecosystems:as the Taku, the headwaters of four major wild significant wilderness, including Nations. The area contains globally traditional territories of several First abundant wildlife, encompassing the stunning scenery and diverse and Columbia. It is a pristine place with travels through Northwest British , is virtually the only road that to Watson Lake in the Highway 37, which connects Fish, Wildlife,CommunitiesandCulture such as Iskut and Telegraph Creek. not provide power to local diesel-dependent communities, page 8). The Northwest Transmission Line as proposed would the five main mines proposed for the region (see Figure 5 on existing communities and the Eskay Creek Mine with that of Transmission Line. Figure 1 compares the energy needs of account for more than 97% of the demand for the Northwest Peak power demand projections show that proposed mines Who NeedsthePower? Galore CreekMine Schaft CreekMine Eskay CreekMine Peak PowerFlowDemand:Existingand Proposed Developments Telegraph Creek Mount Klappan Red ChrisMine Kutcho Creek Coal Mine Iskut Mine SOURCE: FORDETAILED SOURCEDATA, SEESIZINGIT UP FULL REPORT, PAGE 11 0 0.7 0.8 1.6 3.2 5 6 20 (Megawatts) 40 37 wild salmonecosystems. Northwestern BritishColumbiacontains fourmajor 60 Proposed Mine Developments Communities and Mines Existing 80

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The three main communities in the region are those of the The Downside of Booms people, who have a long history on the land: Iskut, which Rapid industrial development often puts has a population of about 350 people; Dease Lake, which has pressure on communities. If the multiple a population of 700 people; and further west down the Stikine mines proposed for Northwest British River, Telegraph Creek, which has a population of 450. Columbia proceed, impacts on local Power supply choices made today will greatly impact the communities could include: future of Northwest British Columbia, shaping cultures and communities and altering landscapes. The Northwest • increased social problems, including Transmission Line would likely encourage rapid industrial increased access to drugs and alcohol development. If several new mines are built over the next few • loss of connection with traditional years, it would create employment and contract opportunities, cultural activities, either through and potentially increase community revenue. a reduction in the value placed However, such rapid development could also have harmful on these activities or through environmental and social impacts. For example, the the degradation of the natural population of Iskut, Dease Lake and Telegraph Creek environment currently amounts to 1,500 people. If the five proposed mining projects go forward, there would be more than 3,700 construction jobs and 2,000 permanent jobs in the region, leading to a huge influx of new residents Sustainable Energy Solutions and the potential for social problems (see “The Downside of Booms,” right). By moderating the pace and scale of development, residents stand to benefit more and risk less. Relying on Renewable Power from local – and potentially community-owned – renewable sources could provide enough energy By managing the pace of development, communities can maximize the long-term for communities and some new benefits of development. PHOTO: GARY FIEGEHEN development along Highway 37. Northwest British Columbia boasts significant hydropower resources, from small micro-hydro • an increase in transitional living to larger run-of-river projects. The Iskut/ also arrangements, with workers and contains promising wind resources, energy that can be families moving to the region combined with hydropower or diesel generators to provide a temporarily, but not settling consistent source of power. • an increasing gap between the “haves” (miners and mining Before the Gold Rush service suppliers) and “have-nots” Before a final decision is made on the Northwest Transmission (traditional harvesters, community Line or any other power option, careful consideration is based workers, unemployed, elderly) needed to ensure development is well planned, economic benefits are shared, and social and environmental costs are • pressures on families from increased minimized. Important questions to consider include: “long-distance commuting” (also • What will the region’s landscape look like in 20 years? called “fly-in, fly-out” commuting), usually with a two-week in, two-week out schedule 2 2 Visit www.afterthegoldrush.ca for our primer on labour and employment issues associated with the proposed mining activity.  Truck Traffic: An Accident Waiting to Happen?

Increased mining activity would mean much more truck traffic on Highway 37. If five currently proposed mines proceed, truck traffic on Highway 37 to the port of Stewart would rise to 640 trucks per day.3 That works out to a truck passing Meziadin Junction every three minutes. Combined with existing logging truck traffic, this increase could strain Highway 37 infrastructure and have a real impact on road safety.

Increased truck traffic on Highway 37 from extensive new development could strain regional road infrastructure. • Will there still be healthy, abundant salmon in the rivers PHOTO: PROTECT OUR PORTS COMMITTEE and wildlife on the land? • What jobs and economic opportunities will be available when the mining rush is over? • How will a rapid increase in population affect local cultures Sustainable Energy Solutions and communities? Given the significant ramifications of a 287-kV power line, the Environmental Impacts Want More Pembina Institute recommends of Development that the British Columbia Information? government re-evaluate the The cumulative environmental impacts of For more information on power Northwest Transmission Line a new transmission line and related options for Northwest British Columbia, proposal in the context of a development could include: download our full report entitled Sizing comprehensive analysis of all the • acid mine drainage, generated by It Up: Scenarios for Powering Northwest options for providing power to waste rock from mines, that pollutes British Columbia at: Northwest British Columbia. water and harms aquatic life www.afterthegoldrush.ca • toxic mine tailings that can To learn more about the potential contaminate soil and water impacts of new mine development for decades in Northwest British Columbia, • road construction that disturbs check out our After the Gold Rush hundreds of kilometres of wilderness series of reports, primers, photos • greatly increased greenhouse and other information available at: gas emissions www.afterthegoldrush.ca This report was prepared by Acid mine drainage is one of the Karen Campbell and Greg Brown biggest environmental challenges for of The Pembina Institute: the mining industry. PHOTO: CARRI SLANINA, www.pembina.org CENTRE FOR SCIENCE IN PUBLIC PARTICIPATION

3 Sizing It Up full report, 6. Data from: Mount Klappan Coal = 100 trucks. Source: Fortune Minerals Limited, “Mount Klappan Anthracite Coal Project,” presentation at Minerals North 2007, Terrace B.C., April 18, 2007). Galore Creek = 70 trucks. Source: Environmental Assessment Office, Transport , Fisheries and Oceans Canada, Natural Resources Canada, Environment Canada, Galore Creek Copper-Gold-Silver Project: Assessment Report/Comprehensive Study Report, February 2007, 52. Shaft Creek = 75 trucks. Estimated using the ratio of truck per day versus rate of production for Galore Creek. Schaft Creek rate of production (70,000 tpd) taken from EA project description. Red Chris = 14 trucks. Source: Environmental Assessment Office, Red Chris Porphyry Copper-Gold Project Assessment Report, July 2005, pg 80. Kutcho Creek = 10 trucks. Source: Knight Piesold Ltd.,  Western Keltic Mines Inc. Kutcho Creek – Project Description Report, July 2006, 11. Sizing ItUpPrimer –Formoreinformation visitwww.afterthegoldrush.ca (in reddashedlines).Pleasenote there arenoplansintheproposaltoconnectthislineIskut. This mapshowsthe287-kVtransmission lineproposal(thesolidredlines)andonescenarioofpossible minesandconnections 287-kV Transmission LineScenario Figure 2

 Sustainable Energy Solutions  Sustainable Energy Solutions Sizing ItUpPrimer –Formoreinformation visitwww.afterthegoldrush.ca a possibilitywhichwasnotpartof theoriginal138-kVlineproposal. This mapshowsthe138-kVtransmission lineasoriginallyproposed.Italsoshowsalow-voltage between DeaseLakeandIskut, 138-kV Transmission LineScenario Figure 3

Sizing It UpPrimer– Formoreinformation visit www.afterthegoldrush.ca good windresourcesintheregion andnumerousopportunitiestodevelopsmallhydropower projects. This mapshowsthewindandsmall hydrorenewableenergyresourcesoftheregion. There arefairlysignificantmediumtovery Renewable EnergyResources Figure 4

 Sustainable Energy Solutions  Sustainable Energy Solutions Sizing It UpPrimer– Formoreinformation visit www.afterthegoldrush.ca environmental effects beforeaminingboom isfullyunderway. mines inthenorth. The mapunderlinesboth thepotentialforminingand need toplannowmanagethe social, economicand This mapshowsthemineralresources oftheregionincludingpastproducingminesfromsouthern regionsandthepotential Mineral Resources Figure 5