Executive Summary
Western Coal Corp. (Western) is submitting this Application report in support of the proposed Wolverine coal project in northeastern British Columbia. This report is the official application (stage 1) for the Wolverine project to enter the British Columbia Environmental Assessment process.
The Wolverine project is set near the town of Tumbler Ridge, an area that has historically been a coal-producing region. The proposed project will produce between 1.5 to 2.0 million tonnes per year of metallurgical coal for sale primarily to the export market. The project facility locations have been selected to gain access to the coal resource potential in the area and will take advantage of existing infrastructure currently in place to service the region, which includes a deep-sea shipping terminal, a railway network, power supply and a full service community within daily commuting distance of the mine site. The main facilities associated with the Wolverine project include the EB open pit mine, the Perry Creek underground mine, and a processing plant/load-out facility located in the Wolverine River valley approximately 25 km west of the Tumbler Ridge town site. The EB open pit is accessed via an existing resource road, which extends about 16 km west from the Wolverine Forest Services Road.
The project schedule is set for coal production to begin in late 2003 / early 2004. Project activities have been initiated with engineering and environmental work in 2001 and will conclude with mine decommissioning planned for 2015 or later, following a 12 to 15 year mine life. Upon receipt of regulatory approvals and project financing, construction is planned in the spring of 2003. It is anticipated that road upgrades and plant site construction will be completed by the end of 2003 or in the first quarter of 2004. The first coal will be produced in late 2003 / early 2004 and phased production increases are planned over a 2 to 3 year period as development work in the mining areas matures.
It is anticipated that the project will require between 210 and 235 hourly employees and between 55 and 65 staff employees, with a large proportion expected to be recruited from Tumbler Ridge and the northeast region. The capital cost estimates for the planned life of the project are estimated at $75 to $100 million.
A summary of the comprehensive baseline data available for the area surrounding the Wolverine project is provided in this document. This data is supplemented with information from on-going environmental studies in the area. Following a six month review of this Application Report, the findings of additional environmental baseline studies and engineering feasibility studies will be presented in the Project Report and used to conduct an environmental impact assessment.
i Acknowledgements
Lorax Environmental Services Ltd. would like to acknowledge the contributions of the following companies for assisting in the preparation of the Wolverine Application Report.
Company Service
Norwest Mine Services Inc. Project description and management
Jo Harris and Associates Socioeconomic, First Nations and Consultation
Envirologic Consulting Inc. Fisheries
Landsong Heritage Consulting Ltd. Archaeology and Traditional Use
Ken Latreille and Kerry Harvey Surface water and fisheries field evaluations
Clearwater Consultants Ltd. Hydrology and Climate
Chillborne Environmental Wildlife
ii Table of Contents
EXECUTIVE SUMMARY ...... i
ACKNOWLEDGEMENTS...... ii
1. INTRODUCTION 1.1 COMPANY AND PROJECT OVERVIEW ...... 1-1 1.2 REGULATORY FRAMEWORK...... 1-3 1.2.1 BRITISH COLUMBIA ENVIRONMENTAL ASSESSMENT PROCESS...... 1-3 1.2.1.1 ROLE OF THE PROJECT COMMITTEE ...... 1-6 1.2.1.2 PUBLIC PARTICIPATION ...... 1-6 1.2.1.3 FIRST NATIONS PARTICIPATION ...... 1-7 1.2.2 FEDERAL ENVIRONMENTAL ASSESSMENT PROCESS ...... 1-7 1.2.3 LICENCES, PERMITS AND APPROVALS ...... 1-8
2. PROJECT DESCRIPTION 2.1 BACKGROUND AND PROJECT RATIONALE ...... 2-1 2.1.1 QUINTETTE MINE...... 2-3 2.1.2 BULLMOOSE MINE...... 2-3 2.2 PROJECT SETTING ...... 2-3 2.3 PROJECT DETAILS ...... 2-4 2.3.1 GEOLOGY AND COAL RESOURCES...... 2-6 2.3.1.1 EB PIT...... 2-9 2.3.1.2 PERRY CREEK UNDERGROUND...... 2-9 2.3.1.3 HERMANN NORTH ...... 2-10 2.3.2 PROJECT FACILITIES ...... 2-10 2.3.2.1 SURFACE MINE COMPLEX ...... 2-10 2.3.2.2 UNDERGROUND MINE AREA ...... 2-15 2.3.2.3 MINE MAINTENANCE AND ADMINISTRATION FACILITIES ...... 2-17 2.3.2.4 COAL PROCESSING AND LOADING FACILITIES ...... 2-17 2.4 PROJECT PHASES AND SCHEDULES...... 2-21 2.4.1 MINE ENGINEERING AND APPROVALS...... 2-21 2.4.2 CONSTRUCTION ...... 2-22 2.4.3 MINING...... 2-22 2.4.4 RECLAMATION AND MINE DECOMMISSIONING ...... 2-22 2.5 CAPITAL COSTS AND LABOUR FORCE PROJECTIONS ...... 2-22
3. ENVIRONMENTAL SETTING 3.1 TERRESTRIAL ENVIRONMENT ...... 3-1 3.1.1 PHYSIOGRAPHY AND SURFICIAL MATERIALS ...... 3-1 3.1.1.1 SITE-SPECIFIC MAPPING...... 3-1 3.1.1.2 EXISTING INFORMATION...... 3-1 3.1.2 GEOCHEMICAL CHARACTERIZATION AND METAL LEACHING POTENTIAL ...... 3-5 3.1.2.1 STRATIGRAPHY ...... 3-5 3.1.2.2 LITHOLOGY ...... 3-5 3.1.2.3 PREVIOUS STUDIES...... 3-7 3.1.2.4 ON-GOING AND FUTURE WORK ...... 3-9 3.1.3 SOILS ...... 3-10 3.1.3.1 SITE-SPECIFIC MAPPING...... 3-10 3.1.3.2 EXISTING INFORMATION...... 3-10 3.1.4 VEGETATION AND FOREST COVER...... 3-11 3.1.4.1 SITE-SPECIFIC MAPPING...... 3-11 3.1.4.2 EXISTING INFORMATION...... 3-12 3.1.5 WILDLIFE...... 3-13 3.1.5.1 WILDLIFE SPECIES AND INVENTORY ...... 3-13
iii TABLE OF CONTENTS WOLVERINE COAL PROJECT APPLICATION REPORT iv 3.1.5.2 WILDLIFE MAPPING ...... 3-17 3.1.5.3 KEY SPECIES ...... 3-17 3.2 CLIMATE, AIR QUALITY AND NOISE ...... 3-27 3.2.1 TEMPERATURE...... 3-29 3.2.2 PRECIPITATION ...... 3-30 3.2.3 EVAPORATION ...... 3-35 3.2.4 WINDS ...... 3-35 3.2.5 AIR QUALITY...... 3-37 3.2.5.1 DUSTFALL ...... 3-37 3.2.5.2 TOTAL SUSPENDED PARTICULATES...... 3-39 3.2.6 NOISE ...... 3-40 3.3 SURFACE WATER ...... 3-42 3.3.1 HYDROLOGY...... 3-42 3.3.1.1 AVERAGE FLOWS ...... 3-44 3.3.1.2 LOW FLOWS ...... 3-44 3.3.1.3 HIGH FLOWS ...... 3-47 3.3.2 SURFACE WATER QUALITY ...... 3-47 3.3.2.1 PERRY CREEK...... 3-48 3.3.2.2 WOLVERINE RIVER ...... 3-49 3.3.2.3 ON-GOING AND FUTURE WORK ...... 3-53 3.4 GROUNDWATER ...... 3-56 3.5 AQUATIC SETTING ...... 3-58 3.5.1 STREAMBED SEDIMENTS...... 3-58 3.5.2 PERIPHYTON ...... 3-58 3.5.3 BENTHIC INVERTEBRATES ...... 3-62 3.5.3.1 PERRY CREEK...... 3-62 3.5.3.2 WOLVERINE RIVER ...... 3-63 3.5.4 FISH AND FISH HABITAT ...... 3-64 3.5.4.1 SAMPLING LOCATIONS ...... 3-65 3.5.4.2 FIELD METHODS...... 3-65 3.5.4.3 FIELD RESULTS ...... 3-67 3.5.4.4 DISCUSSION...... 3-70 3.6 LAND USE...... 3-72 3.6.1 PROVINCIAL LAND AND RESOURCE MANAGEMENT PLAN ...... 3-72 3.6.2 COAL RESOURCES...... 3-72 3.6.3 OIL AND GAS ...... 3-74 3.6.4 FORESTRY...... 3-77 3.6.5 PRIVATE LANDS...... 3-77 3.6.6 AGRICULTURE AND RANGE LANDS...... 3-77 3.6.7 GUIDE OUTFITTING...... 3-80 3.6.8 TRAPPING ...... 3-80 3.6.9 RECREATION...... 3-80 3.6.10 WILDLIFE AND FISHERIES RESOURCES ...... 3-80 3.6.11 VISUAL RESOURCES...... 3-81 3.6.12 SUMMARY...... 3-81
4. SOCIO-ECONOMIC BASELINE 4.1 PEACE RIVER REGIONAL PROFILE...... 4-1 4.1.1 HISTORY ...... 4-1 4.1.2 POPULATION ...... 4-1 4.1.3 ECONOMY...... 4-2 4.2 TUMBLER RIDGE DISTRICT MUNICIPALITY PROFILE...... 4-4 4.2.1 HISTORY ...... 4-4 4.2.2 LOCATION AND PHYSICAL CHARACTERISTICS ...... 4-5 4.2.3 TRANSPORTATION AND COMMUNICATIONS ...... 4-5 4.2.4 POPULATION ...... 4-6 4.2.5 ECONOMY...... 4-8 4.2.5.1 COAL...... 4-9
Western Canadian Coal Corp. LORAX TABLE OF CONTENTS WOLVERINE COAL PROJECT APPLICATION REPORT v 4.2.5.2 FORESTRY ...... 4-10 4.2.5.3 OIL AND GAS...... 4-10 4.2.5.4 TOURISM ...... 4-10 4.2.5.5 INITIATIVES TO SUPPORT THE LOCAL ECONOMY...... 4-11 4.2.6 COMMUNITY SERVICES...... 4-11 4.2.7 HOUSING...... 4-12 4.3 CHETWYND PROFILE ...... 4-13 4.3.1 HISTORY ...... 4-13 4.3.2 LOCATION AND PHYSICAL CHARACTERISTICS ...... 4-14 4.3.3 TRANSPORTATION AND COMMUNICATIONS ...... 4-14 4.3.4 POPULATION ...... 4-14 4.3.5 ECONOMY...... 4-15 4.3.5.1 FORESTRY ...... 4-15 4.3.5.2 OIL AND GAS...... 4-15 4.3.5.3 COAL...... 4-15 4.3.6 COMMUNITY SERVICES...... 4-15 4.3.7 HOUSING...... 4-16 4.4 DAWSON CREEK AREA PROFILE ...... 4-16 4.4.1 HISTORY ...... 4-16 4.4.2 LOCATION AND PHYSICAL CHARACTERISTICS ...... 4-17 4.4.3 TRANSPORTATION & COMMUNICATION...... 4-17 4.4.4 POPULATION ...... 4-18 4.4.5 ECONOMY...... 4-18 4.4.5.1 AGRICULTURE ...... 4-19 4.4.5.2 BUSINESS/RETAIL...... 4-19 4.4.5.3 FORESTRY ...... 4-20 4.4.5.4 OIL AND GAS...... 4-20 4.4.6 COMMUNITY SERVICES...... 4-20 4.4.7 HOUSING...... 4-21 4.5 SUMMARY...... 4-21
5. HEALTH AND SAFETY 5.1 MINE SAFETY REGULATORY FRAMEWORK...... 5-1 5.2 WATER SUPPLY, WASTEWATER AND SEWAGE MANAGEMENT ...... 5-2 5.3 AIR QUALITY ...... 5-2 5.3.1 AMBIENT AIR PARTICULATE MONITORING...... 5-3 5.3.2 EMISSION TESTING ...... 5-7 5.4 CHEMICAL STORAGE AND HANDLING...... 5-7 5.5 SAFETY ...... 5-8 5.6 EMERGENCY RESPONSE ...... 5-8
6. HERITAGE AND HISTORIC RESOURCES 6.1 ARCHAEOLOGICAL SITES ...... 6-1 6.2 HISTORIC SITES AND LANDFORMS ...... 6-2
7. FIRST NATIONS 7.1 CONSULTATION ...... 7-1 7.2 ABORIGINAL COMMUNITIES/POLITICAL BOUNDARIES...... 7-1 7.2.1 KELLY LAKE COMMUNITY ...... 7-4 7.2.1.1 KELLY LAKE FIRST NATION ...... 7-4 7.2.1.2 KELLY LAKE CREE NATION ...... 7-5 7.2.1.3 KELLY LAKE METIS SOCIETY...... 7-6 7.2.2 SAULTEAU FIRST NATION...... 7-6 7.2.3 WEST MOBERLY FIRST NATION...... 7-8 7.2.4 MCLEOD LAKE INDIAN BAND ...... 7-10 7.2.5 LHEIDLI T’ENNEH FIRST NATION...... 7-11 7.3 PLANNED FUTURE CONSULTATION/STUDIES ...... 7-11 7.4 SUMMARY...... 7-12
Western Canadian Coal Corp. LORAX TABLE OF CONTENTS WOLVERINE COAL PROJECT APPLICATION REPORT vi 8. POTENTIAL CEAA TRIGGERS 8.1 FISH HABITAT...... 8-1 8.2 NAVIGABLE WATERS...... 8-2 8.3 EXPLOSIVES USE...... 8-5
9. ISSUE SCOPING 9.1 ENVIRONMENTAL COMPONENTS...... 9-1 9.2 ECONOMIC COMPONENTS ...... 9-2 9.3 SOCIAL COMPONENTS...... 9-3 9.4 HEALTH COMPONENTS ...... 9-4 9.5 CULTURAL AND HERITAGE COMPONENTS ...... 9-5
10. MANAGEMENT PLANNING 10.1 ENVIRONMENT...... 10-1 10.1.1 WATER MANAGEMENT ...... 10-1 10.1.1.1 MINE REFUSE PRODUCTION FROM SITE OPERATIONS ...... 10-1 10.1.1.2 SURFACE WATER MANAGEMENT...... 10-2 10.1.1.3 WATER MANAGEMENT STRUCTURE DESIGN PARAMETERS ...... 10-5 10.1.2 SOIL STABILITY AND RECLAMATION ...... 10-6 10.1.3 REVEGETATION...... 10-7 10.1.4 WILDLIFE MANAGEMENT ...... 10-7 10.1.5 WATER QUALITY...... 10-10 10.1.6 FISHERIES MANAGEMENT...... 10-11 10.2 HEALTH AND SAFETY...... 10-11 10.2.1 NOISE AND VISUAL DISTURBANCE ...... 10-11 10.2.2 DUST CONTROL IN MINING OPERATIONS...... 10-11 10.2.3 AVALANCHE CONTROL...... 10-13 10.2.4 SAFETY MEASURES FOR PUBLIC ACCESS...... 10-13 10.3 SOCIOECONOMIC CONCERNS ...... 10-14 10.3.1 GENERAL PUBLIC ...... 10-14 10.3.2 INDIVIDUAL STAKEHOLDERS ...... 10-15 10.3.3 FIRST NATIONS ...... 10-15
11. PUBLIC CONSULTATION 11.1 PUBLIC OPEN HOUSE AND MEETING...... 11-1 11.1.1 LOGISTICS...... 11-1 11.1.2 PROCEEDINGS ...... 11-2 11.1.3 OUTCOME & RESULTS OF QUESTIONNAIRE ...... 11-2 11.2 PUBLIC OPEN HOUSE AND MEETING...... 11-4 11.2.1 LANDOWNER ...... 11-4 11.2.2 HUNTERS AND TRAPPERS...... 11-5 11.2.2.1 ARMAND DIDIER, OUTFITTER, PERRY CREEK ...... 11-5 11.2.2.2 HALE HILLTON, TRAPPER, PERRY CREEK ...... 11-5 11.3 SUMMARY AND FUTURE CONSULTATION ...... 11-6
12. GOVERNMENT CONSULTATION 12.1 FEDERAL GOVERNMENT ...... 12-1 12.2 PROVINCIAL GOVERNMENT ...... 12-1 12.2.1 MEETING WITH NORTH EAST MINE DEVELOPMENT REVIEW COMMITTEE ...... 12-1 12.2.2 FIELD TRIP...... 12-4 12.2.3 MINISTRY OF ABORIGINAL AFFAIRS ...... 12-4 12.3 MUNICIPAL GOVERNMENTS...... 12-4 12.4 SUMMARY...... 12-5
REFERENCES...... R-1
Western Canadian Coal Corp. LORAX TABLE OF CONTENTS WOLVERINE COAL PROJECT APPLICATION REPORT vii
LIST OF APPENDICES
APPENDIX A APPENDIX A-1: TERRESTRIAL ENVIRONMENT
APPENDIX A-2: CLIMATE
APPENDIX A-3: SURFACE WATER
APPENDIX A-4: AQUATIC ENVIRONMENT
APPENDIX A-5: LAND USE
APPENDIX B APPENDIX B-1: OPEN HOUSE ANNOUNCEMENT
APPENDI X B-2: OPEN HOUSE HANDOUT
APPENDIX B-3: OPEN HOUSE STORYBOARDS
Western Canadian Coal Corp. LORAX TABLE OF CONTENTS WOLVERINE COAL PROJECT APPLICATION REPORT viii
LIST OF TABLES
TABLE 1.1-1 SUMMARY OF WOLVERINE PROJECT FACILITIES...... 1-2
TABLE 2.3-1 COAL RESOURCES ...... 2-9
TABLE.2.5-1 SUMMARY OF CAPITAL COSTS AND LABOUR PROJECTIONS ...... 2-23
TABLE 3.1-1 WILDLIFE SPECIES PRESENT IN UPPER PERRY CREEK ...... 3-16
TABLE 3.1-2 WILDLIFE SPECIES PRESENT IN THE WOLVERINE RIVER VALLEY ...... 3-16
TABLE 3.2-1 REGIONAL TEMPERATURE, PRECIPITATION AND SNOW SURVEY DATA...... 3-29
TABLE 3.2-2 MEAN ANNUAL PRECIPITATION AT AES STATIONS IN THE VICINITY OF THE WOLVERINE PROJECT SITE...... 3-34
TABLE 3.2-3 SUMMARY OF BASELINE DUSTFALL LEVELS, 1977 AND 1981/1982...... 3-37
TABLE 3.2-4 SUMMARY OF REGIONAL DUSTFALL DATA...... 3-38
TABLE 3.2-5 SUMMARY OF TOTAL SUSPENDED PARTICULATE DATA...... 3-40
TABLE 3.3-1 ENVIRONMENT CANADA STREAMFLOW GAUGING LOCATIONS...... 3-42
TABLE 3.3-2 CONCENTRATIONS OF DISSOLVED AND TOTAL METALS AT STATIONS 410060 AND 410061 ON WOLVERINE RIVER, JUNE 28, 2000 ...... 3-52
TABLE 3.3-3 WATER SAMPLING LOCATIONS AND RATIONALE...... 3-53
TABLE 3.3-4 WATER QUALITY SAMPLING PROGRAM...... 3-54
TABLE 3.3-5 WATER QUALITY SAMPLE PARAMETERS AND DETECTION LIMITS ...... 3-55
TABLE 3.4-1 COMPOSITION OF DRAINAGE WATERS COLLECTED FROM ADIT B2, AUGUST 22, 1978 .3-57
TABLE 3.5-1 STREAMBED SEDIMENT SAMPLING LOCATIONS ...... 3-60
TABLE 3.5-2 PARAMETERS FOR STREAMBED SEDIMENT ANALYSIS ...... 3-60
TABLE 3.5-3 PERIPHYTON COMPOSITION BY MAJOR TAXONOMIC GROUPS AND STATISTICAL ANALYSES IN THE WOLVERINE RIVER...... 3-61
TABLE 3.5-4 MEAN NUMBERS OF PERIPHYTON AND STATISTICAL ANALYSES IN THE WOLVERINE RIVER ...... 3-61
TABLE 3.5-5 DENSITIES OF MAJOR BENTHIC INVERTEBRATE TAXA IN PERRY CREEK ...... 3-62
TABLE 3.5-6 BENTHIC INVERTEBRATE SAMPLING RESULTS ON THE WOLVERINE RIVER ...... 3-63
TABLE 3.5-7 BENTHIC INVERTEBRATE SAMPLING RESULTS ON THE WOLVERINE RIVER IN 1983 ...... 3-64
TABLE 3.5-8 FISH CAPTURE RESULTS FROM ELECTROFISHING ON PERRY CREEK AND THE WOLVERINE RIVER, OCTOBER 1-4, 2001 ...... 3-67
TABLE 3.5-9 PHYSICAL HABITAT MEASUREMENTS FOR SEVEN SAMPLING SITES ON PERRY CREEK AND THE WOLVERINE RIVER ...... 3-68
TABLE 3.6-1 STATUS OF PETROLEUM WELL LICENSES IN PERRY CREEK ...... 3-74
Western Canadian Coal Corp. LORAX TABLE OF CONTENTS WOLVERINE COAL PROJECT APPLICATION REPORT ix TABLE 3.6-2 LAND USE TENURE SUMMARY...... 3-82
TABLE 4.1-1 REGIONAL DISTRICT 55-PEACE RIVER (1999 POPULATION) ...... 4-2
TABLE 4.2-1 TUMBLER RIDGE CHARACTERISTICS...... 4-5
TABLE 4.2-2 TUMBLER RIDGE SELECTED DEMOGRAPHIC DATA FROM 1996 CENSUS ...... 4-6
TABLE 4.2-3 TUMBLER RIDGE DM POPULATION 1996-2000...... 4-7
TABLE 4.2-4 AGE CHARACTERISTICS OF THE POPULATION ...... 4-7
TABLE 4.2-5 HIGHEST LEVEL OF SCHOOLING FOR THE POPULATION AGE 25 YEARS AND OVER ...... 4-8
TABLE 4.2-6 EMPLOYMENT CHARACTERISTICS ...... 4-8
TABLE 4.2-7 TUMBLER RIDGE DM INDUSTRIES & OCCUPATIONS 1996 ...... 4-9
TABLE 4.3-1 CHETWYND DM POPULATION 1996-2000...... 4-14
TABLE 4.4-1 DAWSON CREEK DM POPULATION 1996-2000 ...... 4-18
TABLE 4.4-2 DAWSON CREEK DM INDUSTRIES & OCCUPATIONS 1996 ...... 4-19
TABLE 4.4-3 DAWSON CREEK BUILDING PERMITS 1995-2000 ...... 4-21
TABLE 5.1-1 WASTE MANAGEMENT REGULATIONS AND ASSOCIATED MINISTRY...... 5-1
TABLE 5.2-1 WATER CONSUMPTION FROM WOLVERINE RIVER ...... 5-2
TABLE 5.3-1 SUMMARY STATISTICS FOR DUSTFALL MONITORING AT BULLMOOSE...... 5-3
TABLE 5.3-2 SUMMARY STATISTICS FOR TSP MONITORING AT BULLMOOSE...... 5-6
TABLE 5.3-3 EMISSION TEST RESULTS FOR BULLMOOSE FLUIDIZED BED COAL DRYER ...... 5-7
TABLE 7.2-1 SAULTEAU (EAST MOBERLY) CENSUS STATISTICS TOTAL POPULATION 15 YEARS AND OVER BY HIGHEST LEVEL OF SCHOOLING (20% SAMPLE DATA) ...... 7-7
TABLE 7.2-2 REGISTERED POPULATION AS OF JULY, 2001 ...... 7-8
TABLE 7.2-3 WEST MOBERLY CENSUS STATISTICS TOTAL POPULATION 15 YEARS AND OVER BY HIGHEST LEVEL OF SCHOOLING (20% SAMPLE DATA) ...... 7-9
TABLE 9.1-1 ENVIRONMENTAL COMPONENTS AND IDENTIFIED ISSUES ...... 9-2
TABLE 9.2-1 ECONOMIC COMPONENTS AND IDENTIFIED ISSUES...... 9-3
TABLE 9.3-1 SOCIAL COMPONENTS AND IDENTIFIED ISSUES ...... 9-3
TABLE 9.4-1 HEALTH COMPONENTS AND IDENTIFIED ISSUES...... 9-4
TABLE 9.5-1 CULTURAL AND HERITAGE COMPONENTS AND IDENTIFIED ISSUES...... 9-5
TABLE 10.1-1 RAINFALL INTENSITY AND PEAK RUN-OFF FLOW ...... 10-6
TABLE 11.1-1 TUMBLER RIDGE OPEN HOUSE ATTENDANCE, SUPPORT AND INFORMATION...... 11-3
Western Canadian Coal Corp. LORAX TABLE OF CONTENTS WOLVERINE COAL PROJECT APPLICATION REPORT x
LIST OF FIGURES
FIGURE 1.2-1 BRITISH COLUMBIA ENVIRONMENTAL ASSESSMENT PROCESS SCHEMATIC ...... 1-4
FIGURE 1.2-2 PROJECTED B.C. ENVIRONMENTAL ASSESSMENT PROCESS TIMELINES...... 1-5
FIGURE 2.1-1 LOCATION PLAN ...... 2-2
FIGURE 2.2-1 WOLVERINE PROJECT COAL LICENCES AND REGIONAL INFRASTRUCTURE...... 2-5
FIGURE 2.3-1 NORTHEAST B.C. COAL MEASURES STRATA...... 2-7
FIGURE 2.3-2 GENERAL GEOLOGY AND COAL RESOURCES PLAN ...... 2-8
FIGURE 2.3-3 PROPOSED SITE LAYOUT ...... 2-11
FIGURE 2.3-4 EB PIT SURFACE MINE CONCEPTUAL LAYOUT ...... 2-12
FIGURE 2.3.5 EB PIT SURFACE MINE AREA CROSS SECTIONS...... 2-14
FIGURE 2.3-6 PERRY CREEK CONCEPTUAL UNDERGROUND MINE LAYOUT...... 2-16
FIGURE 2.3-7 PERRY CREEK UNDERGROUND COAL PROCESSING AND LOADOUT FACILITY LAYOUT ...... 2-18
FIGURE 2.3-8 CONCEPTUAL MATERIALS HANDLING FLOWSHEET...... 2-20
FIGURE 2.4-1 PROPOSED WOLVERINE PROJECT SCHEDULE...... 2-21
FIGURE 3.1-1 PHYSIOGRAPHIC REGION MAP...... 3-2
FIGURE 3.1-2 TERRAIN MAP...... 3-4
FIGURE 3.1-3 J SEAM STRATIGRAPHY ...... 3-6
FIGURE 3.1-4 NPR BY UNIT (INCLUDING COAL) AND PIT...... 3-8
FIGURE 3.1-5a PERRY CREEK AREA VEGETATION MAP...... 3-14
FIGURE 3.1-5b PERRY CREEK AREA VEGETATION MAP...... 3-15
FIGURE 3.1-6 UNGULATE CAPABILITY CLASSIFICATION MAP...... 3-18
FIGURE 3.2-1 REGIONAL CLIMATE, HYDROLOGY AND AIR SAMPLING SITES...... 3-28
FIGURE 3.2-2 MEAN DAILY TEMPERATURES...... 3-30
FIGURE 3.2-3 MEAN DAILY MAXIMUM TEMPERATURE...... 3-31
FIGURE 3.2-4 MEAN DAILY MINIMUM TEMPERATURE...... 3-31
FIGURE 3.2-5 EXTREME MAXIMUM TEMPERATURE ...... 3-31
FIGURE 3.2-6 EXTREME MINIMUM TEMPERATURE...... 3-31
FIGURE 3.2-7 AVERAGE MONTHLY TOTAL PRECIPITATION...... 3-32
Western Canadian Coal Corp. LORAX TABLE OF CONTENTS WOLVERINE COAL PROJECT APPLICATION REPORT xi FIGURE 3.2-8 MEAN MONTHLY PRECIPITATION ...... 3-33
FIGURE 3.2-9 MEAN MONTHLY SNOWFALL ...... 3-33
FIGURE 3.2-10 MONTHLY PRECIPITATION DISTRIBUTION, BULLMOOSE ...... 3-33
FIGURE 3.2-11 MONTHLY PRECIPITATION DISTRIBUTION, TUMBLER RIDGE...... 3-33
FIGURE 3.2.12a INTENSITY DURATION FREQUENCY CURVES (<1200 METRES ELEVATION)...... 3-34
FIGURE 3.2.12b INTENSITY DURATION FREQUENCY CURVES (>1800 METRES ELEVATION)...... 3-34
FIGURE 3.2-13 SNOW PACK SURVEYS ...... 3-35
FIGURE 3.2-14 WOLVERINE AREA WIND ROSE DIAGRAMS...... 3-36
FIGURE 3.3-1 PROJECT AREA HYDROLOGY AND WATER SAMPLING STATIONS ...... 3-43
FIGURE 3.3-2 MEAN MONTHLY FLOW, MAXIMUM MEAN FLOW AND MINIMUM MEAN MONTHLY FLOW MEASURED ON QUALITY CREEK, DICKEBUSCH CREEK, FLATBED CREEK AND THE MURRAY RIVER ...... 3-45
FIGURE 3.3-3 MEAN ANNUAL DISCHARGE VERSUS CATCHMENT AREA...... 3-46
FIGURE 3.3-4 MEAN MONTHLY UNIT FLOW...... 3-46
FIGURE 3.3-5 MEAN ANNUAL MINIMUM 7-DAY DISCHARGE...... 3-47
FIGURE 3.3-6 MEAN ANNUAL MAXIMUM DAILY DISCHARGE...... 3-48
FIGURE 3.3-7 PERRY CREEK HARDNESS, ALKALINITY, PH, AND TOTAL SUSPENDED SOLIDS ...... 3-49
FIGURE 3.3-8 WOLVERINE RIVER CONDUCTIVITY AND NON-FILTERABLE RESIDUE AT STATIONS 410060 AND 410061 ...... 3-50
FIGURE 3.3-9 WOLVERINE RIVER DISSOLVED ORTHO-PHOSPHATE AND NITRATE AT STATIONS 410060, 410061 AND 410097...... 3-51
FIGURE 3.5-1 SEDIMENT, BENTHIC AND FISH SAMPLE LOCATIONS...... 3-59
FIGURE 3.6-1 DAWSON CREEK LAND AND RESOURCE MANAGEMENT PLAN ...... 3-73
FIGURE 3.6-2 WESTERN COAL LICENSE LOCATION MAP ...... 3-75
FIGURE 3.6-3 PETROLEUM, NATURAL GAS AND PIPELINE LOCATION MAP ...... 3-76
FIGURE 3.6-4 FORESTRY LAND USE ...... 3-78
FIGURE 3.6-5 GENERAL LAND USE MAP ...... 3-79
FIGURE 4.1-1 REGIONAL LOCATION MAP...... 4-3
FIGURE 5.3-1 AMBIENT AIR PARTICULATE MONITORING SITES...... 5-4
FIGURE 5.3-2 INTER-ANNUAL DISTRIBUTION OF DUSTFALL ASSOCIATED WITH BULMOOSE MINE..5-5
FIGURE 5.3-3 INTER-ANNUAL DISTRIBUTION OF TSP ASSOCIATED WITH BULLMOOSE MINE...... 5-6
Western Canadian Coal Corp. LORAX TABLE OF CONTENTS WOLVERINE COAL PROJECT APPLICATION REPORT xii FIGURE 5.6-1 ON-SITE SPILL RESPONSE FLOW SHEET ...... 5-9
FIGURE 6.1.1 ARCHAEOLOGICAL FIELD SURVEY SAMPLING LOCATIONS...... 6-3
FIGURE 7.1-1 ABORIGINAL SETTLEMENT AND TREATY BOUNDARY MAP ...... 7-3
FIGURE 8.2-1 EXISTING PERRY CREEK BRIDGE CROSSING...... 8-3
FIGURE 8.2-2 WATERFALL UPSTREAM OF PERRY CREEK BRIDGE...... 8-3
FIGURE 8.2-3 WATERFALL DOWNSTREAM OF PERRY CREEK BRIDGE ...... 8-4
FIGURE 8.2-4 LOOKING UPSTREAM FROM SECOND PERRY CREEK CROSSING ON NORTHERN TRIBUTARY...... 8-4
FIGURE 10.1-1 EB PIT WATER MANAGEMENT PLAN ...... 10-3
Western Canadian Coal Corp. LORAX 1. Introduction
Western Canadian Coal Corp. has commissioned a mine feasibility study that is being conducted by Norwest Mine Services Inc. and an environmental study that is being conducted by Lorax Environmental Services Ltd. in support of developing the Wolverine coal project in northeastern British Columbia. The Wolverine project is set near the town of Tumbler Ridge, an area that has historically been a coal-producing region. This chapter provides an overview of the company, identifies the main project components and outlines the regulatory process required to certify and permit a new coal mine in British Columbia.
1.1 Company and Project Overview
Western Canadian Coal Corp. is a public company with shares traded on the Canadian Venture Exchange using the symbol WTN. Western Canadian Coal Corp. was incorporated in 1997 and the head office is located in Vancouver, British Columbia. Western Canadian Coal Corp. 900 - 580 Hornby Street Vancouver, British Columbia V6C 3B6 The principal business of the company is the acquisition, exploration and development of coal properties. Through its wholly owned subsidiary Western Coal Corp. (Western), Western Canadian Coal Corp. owns several groups of coal properties in northeast British Columbia, including the Wolverine coal property. The President and COO of Western, Mr. David Fawcett, is managing the Wolverine coal project.
The Wolverine project is located near the town of Tumbler Ridge and is positioned between the Quintette and Bullmoose coal mines. The proposed project will produce between 1.5 to 2.0 million tonnes per year of metallurgical coal for sale primarily to the export market. Over the past 15 years, coal production in British Columbia has consistently supplied about $1 billion dollars per annum to the provincial economy. The coal is shipped to overseas markets and used to make coke for steel production.
The project facility locations have been selected to gain access to the coal resource potential in the area and will take advantage of existing infrastructure currently in place to service the region, which includes a deep-sea shipping terminal, a railway network, power supply and a full service community within daily commuting distance of the mine site. The main facilities associated with the Wolverine project include the EB open pit mine, the Perry Creek underground mine, and a processing plant/load-out facility located in the Wolverine River valley approximately
1-1 INTRODUCTION WOLVERINE COAL PROJECT APPLICATION REPORT 1-2
25 km west of the Tumbler Ridge town site and 14 km west of Highway 29. The EB open pit is accessed via an existing resource road, which extends about 16 km west from the Wolverine Forest Services Road. The main attributes of each of these facilities are listed in Table 1.1-1.
Table 1.1-1: Summary of Wolverine Project Facilities
Facility Main Attributes EB pit • Excavator-truck operation Surface Mining Complex • 15 million tonnes in-place @ 5-6:1 BCM:tonne (preliminary) • 450 ha footprint (approx.) for pits and dumps • water management with sediment ponds and a large rock drain • 16 km coal haul to the plant in Wolverine River valley along the Perry Creek road. Perry Creek • room-and-pillar mining method at seam gradient of 0-16 Underground Mine Area degrees • 22 million tonnes in-place with 12-13 million tonnes recoverable (preliminary) • portal area near proposed plant site and rail load-out • small surface footprint (<5 ha). Coal Processing and • plant adjacent to existing rail line Loading Facilities • proven process technology • 8 ha footprint for coal processing plant and loadout facility • 20 ha footprint for coarse coal rejects and 15 ha for tailings structure Mine Maintenance and • located in the Wolverine valley approximately 25 km from Administration Facilities Tumbler Ridge • common facilities for surface and underground operations
The project schedule is set for coal production to begin in late 2003 or early 2004. Project activities have been initiated with engineering and environmental work in 2001 and will conclude with mine decommissioning planned for 2015 or later, following a 12 to 15 year mine life. Following regulatory approvals and project financing, construction is planned to start in the spring of 2003. It is anticipated that road upgrades and plant site construction will proceed over a 9 to 12 month period with completion by the end of 2003 or in the first quarter of 2004. The first coal will be produced in late 2003 / early 2004 and phased production increases are planned over a 2 to 3 year period as development work in the mining areas matures.
It is anticipated that the project will require between 210 and 235 hourly employees and between 55 and 65 staff employees, with a large proportion expected to be recruited from the Tumbler Ridge and the northeast region. The capital cost estimates for the planned life of the project are estimated at $75 to $100 million.
Western Canadian Coal Corp. LORAX INTRODUCTION WOLVERINE COAL PROJECT APPLICATION REPORT 1-3
1.2 Regulatory Framework
This Application document has been prepared as outlined in Part 2, Division 2, Section 7 of the B.C. Environmental Assessment Act and addresses the requirements of the Application stage for a Project Approval Certificate that is obtained through the British Columbia Environmental Assessment Process. The following sections outline the Environmental Assessment process, discuss the applicability of the Canadian Environmental Assessment Act to the project and outline other legislation and permit applications that will be required for the project.
1.2.1 British Columbia Environmental Assessment Process
The Environmental Assessment Act (Bill 29) was proclaimed on June 30, 1995. The intent of the legislation is to create a comprehensive, predictable, open, accountable, integrated and neutrally administered process for the assessment of the environmental, economic, social, cultural, heritage and health effects of major development proposals in British Columbia. Major projects in mining, including coal mining enter the Environmental Assessment process to obtain a Project Approval Certificate.
The Wolverine project meets the definition of a reviewable project as stated in section 19(1) of the Reviewable Projects Regulation and exceeds the specified production threshold. Specifically, the regulation specifies a new coal mining project is reviewable if: (a) the facility is within SIC code 063 – “coal mines”, and (b) the facility has, or when the construction phase is completed will have, a production capacity of 250,000 tonnes or more per year of clean coal or raw coal or a combination of both clean coal and raw coal ..."
The Environmental Assessment Act establishes a staged process through which the potential effects of projects are identified, and the potential means of preventing or mitigating any adverse effects are developed and considered. The staging of the Environmental Assessment process is depicted in Figure 1.2-1. This report is the official application (stage 1) for the Wolverine project to enter the Environmental Assessment Process. Following the review of the Application, Western will submit a Project Report (stage 2) to address issues identified in the initial stage of the process. Decisions are made at the end of each stage, and public and First Nations input is encouraged throughout. Reviews are administered by the Environmental Assessment Office, and steered by project committees, which are comprised of representatives of federal, provincial and local government agencies, neighboring jurisdictions and First Nations. The decision to approve or reject a mining project is made by the Ministers responsible for Energy and Mines and Sustainable Resource Management. The projected schedule and timelines for the review of the Wolverine project are presented in Figure 1.2-2.
Western Canadian Coal Corp. LORAX INTRODUCTION WOLVERINE COAL PROJECT APPLICATION REPORT 1-4
Figure 1.2-1: British Columbia Environmental Assessment Process Schematic
Western Canadian Coal Corp. LORAX INTRODUCTION WOLVERINE COAL PROJECT APPLICATION REPORT 1-5
Year 2001 2002 Quarter 4 1 234 Month ND JFMAM J J ASOND Regulatory Approvals Application Preparation Application Submission Application Screening Produce Application Report Establish Project Committee * Notice (7 days) Public Comment Period (30-75 days) Resolve Issues (within 40 days) Draft Specifications (within 20 days) Notice (7 days) Pubic Comment Period (15-30 days) Finalize Specifications (within 20 days) Submit Project Report Screening Period (25 days) Notice (7 days) Public Comment Period (45-60 days) Recommendation (within 70 days) Ministers Decision (within 45 days)
Figure 1.2-2: Projected British Columbia Environmental Assessment Process Timelines
Western Canadian Coal Corp. LORAX INTRODUCTION WOLVERINE COAL PROJECT APPLICATION REPORT 1-6 1.2.1.1 Role of the Project Committee Under the Environmental Assessment Act, a project committee will be established following the submission of the Application Report to steer the review of the project. Committee members ensure policy and technical expertise are made available to review the project, and are expected to: • assess the adequacy of proponent’s public and First Nations consultation activities; • analyze input received from the public, government agencies, and First Nations in response to invitations to comment at various stages of project review; • assess the potential effects of projects, and the potential to prevent or mitigate adverse effects of projects; and • provide analysis, advice, and recommendations to the Executive Director of the Environmental Assessment Office, the Minister of Sustainable Resource Management, and the Minister of Energy, Mines and Petroleum Resources. Working with the Environmental Assessment Office, the project committee has the overall responsibility for ensuring that project reviews: • are comprehensive and technically sound; • involve all of the potentially interested parties; and • are conducted in a timely and efficient manner, and in accordance with the legislated time limits established for individual review steps under the Time Limits Regulation. 1.2.1.2 Public Participation The main goals of public participation in the Environmental Assessment process are: • to ensure an open and accountable review process; • to provide notification and information to the public at an early stage in the planning of the proposed project; • to ensure that there is adequate public input into the identification and resolution of concerns and issues raised with respect to the proposed project and its potential effects; and • to ensure that local public and community-level information, knowledge and concerns contribute to both the project design process and the decision making process of government. Under the Environmental Assessment Act, the public must be notified about project reviews conducted under the Environmental Assessment process, informed of their opportunities to provide input to the process, provided with information on projects which are subject to EA review, and consulted as the review progresses. Formal public comment periods are provided for in the Environmental Assessment Act to ensure that the public has an adequate opportunity to review the primary documents generated during the EA review of a project, including the Application Report, the project committee’s draft project report specifications, and the Project Report.
Western Canadian Coal Corp. LORAX INTRODUCTION WOLVERINE COAL PROJECT APPLICATION REPORT 1-7
1.2.1.3 First Nations Participation
Under the Environmental Assessment Act, potentially affected First Nations must be notified about project reviews conducted under the Environmental Assessment process, informed of their opportunities to provide input to the process, provided with information on projects which are subject to environmental assessment review, and consulted as the review progresses.
1.2.2 Federal Environmental Assessment Process
The federal and provincial governments signed the Canada-British Columbia Agreement on Environmental Assessment Cooperation. The agreement is intended to eliminate as much potential procedural duplication as possible and allow the federal agencies to work through the provincial environmental assessment process to complete both screenings and comprehensive study assessments if a project requires the application of the Canadian Environmental Assessment Act (CEAA). Under the agreement, the federal government retains its separate decision making authority with respect to the acceptability of projects. However, the agreement and British Columbia Environmental Assessment Act provide for individual projects, which do not trigger the CEAA process, to be reviewed under the British Columbia Environmental Assessment process with the participation of both federal and provincial agencies.
Three possible triggers that may require the application of CEAA to a mining project are outlined below. However, the supporting information documented in Section 8 to address each of the possible triggers, indicates that the Wolverine project will not trigger the CEAA process.
• A redesigned bridge in the upper reaches of Perry Creek could require a formal approval under Section 5(1) of the Navigable Waters Protection Act (NWPA) if this section of the stream is considered navigable. However, documentation of substantial water falls within 500 m both upstream and downstream of the crossing site negates the designation of Perry Creek as a navigable water.
• Placement of waste rock in tributaries to Perry Creek could require formal approval under Section 35(1) of the Fisheries Act, which prohibits the harmful alteration, disruption or destruction of fish habitat. However, a fisheries study in the upper reaches of Perry Creek has established that these high gradient streams do not support fish populations.
• Manufacturing explosives on site could require a license under Section(7) of the Explosives Act. However, explosive will be purchased from a third party explosives supplier off site. Using this existing facility as a base site, the supplier will set up a satellite facility at the Wolverine property which would allow for the storage of ammonium nitrate and emulsion as well as the use of one process vehicle on-site. A satellite facility requires that the supplier apply for a Satellite Certificate from the federal Explosives Regulatory Division of Natural Resources Canada. Application for the Satellite Certificate does not require an Explosives Act license and would not trigger the CEAA process.
Western Canadian Coal Corp. LORAX INTRODUCTION WOLVERINE COAL PROJECT APPLICATION REPORT 1-8
1.2.3 Licences, Permits and Approvals
In addition to the Project Approval Certificate, a number of permits, licenses and approvals will be required in support of the Wolverine project. The approvals and applicable legislation that have been identified to date are outlined below.
(A) Mines Act, R.S.B.C. 1996, c. 293, and the Health, Safety and Reclamation Code The Mines Act permit application will be required to provide the mine plan and reclamation plan with details of all aspects of mine development, worker health and safety and reclamation.
(B) Forest Act, R.S.B.C. 1996 c. 157 A license may be required to cut and remove merchantable timber within the project footprint, and an approval for access road upgrade and usage.
(C) Waste Management Act, R.S.B.C. 1996, c. 482 Approvals under the Waste Management Act will be required for emissions to the air, discharge from sediment ponds, sewage disposal (if > 5,000 gpd) and the storage and handling of industrial waste and solid refuse.
(D) Water Act R.S.B.C. 1996, c. 483 - Water Licenses An approval under the Water Act, may be required if water extraction is required from the Wolverine River.
(E) Land Act, R.S.B.C. 1996, c. 245 The Land Act may be required for a long-term lease over the plant site area. The Land Act may also be applicable for tenure to cover the power line corridor from the main line to the plant site.
(F) Coal Act, R.S.B.C. 1996, c. 51 The Coal Act may apply for coal license renewal and for coal lease application.
(G) Transport of Dangerous Goods Act The Transport of Dangerous Goods Act may apply should the feasibility study identify activities required for mine operation that may include the transport of materials that are regulated under the Act.
Western Canadian Coal Corp. LORAX 2. Project Description
The proposed Wolverine project will produce between 1.5 to 2.0 million tonnes per year of metallurgical coal for sale primarily to the export market. It is planned that production will occur by open pit and underground mining methods. The location of the coal resources will take advantage of existing infrastructure currently in place to service the region, which includes a deep-sea shipping terminal, a railway network, power supply and a full service community within daily commuting distance of the minesite.
2.1 Background and Project Rationale
Development of the northeast coal-fields dates back to the 1970's and culminated in February 1981, when representatives of the Japanese Steel Industry, the Governments of Canada and British Columbia, Denison Mines Limited, and Teck Corporation signed an agreement to develop the northeast BC coal-field. As a result of this agreement, the Canadian and British Columbia governments committed to financing and construction for the major infrastructure elements. This included building the Town of Tumbler Ridge, a branch rail line into the region and upgrading of the main line to the port, a new highway south of Chetwynd, a high voltage transmission line, and a new port at Ridley Island.
Since the mid 1980’s, the British Columbia (BC) coal mining industry has consistently produced 20 to 25 million tonnes of saleable coal per year. Most of the coal is mined and processed as high value metallurgical grade product from two regions generally known as the northeast and southeast BC coal-fields, as shown on Figure 2.1-1. The coal is mined and transported by rail to shipping terminals located at Ridley Island and Roberts Bank. From these ports coal is shipped to overseas markets mainly in the Pacific Rim, and used to make coke for steel production. This production and export activity has consistently supplied about $1 billion dollars per annum to the provincial economy over the past 15 years. Production from the northeast BC coal-field has significantly contributed to this value over the same period of time.
Two northeast BC coal mines came into production in the mid 1980’s and produced between 4 and 6 million tonnes of clean coal per year until the late 1990’s. The Quintette mine closed in August 2000 and the Bullmoose mine is scheduled to close in 2003. Western has built an extensive portfolio of coal assets in northeast BC and plans to contribute to the next generation of coal mines in the area. Western’s operations will provide replacement coal production, employment for the trained local workforce, and continued use of the valuable infrastructure built during the 1980’s, thus, sustaining economic development in the area, which should be an objective for all industry development in the province. A brief history for each of the two coal mines that have operated in the region is discussed below.
2-1 PROJECT DESCRIPTION WOLVERINE COAL PROJECT APPLICATION REPORT 2-2 figure 2.1-1 location map
Western Canadian Coal Corp. LORAX PROJECT DESCRIPTION WOLVERINE COAL PROJECT APPLICATION REPORT 2-3 2.1.1 Quintette Mine
The Quintette open pit coal mine was owned by Quintette Coal Limited and operated from 1983 until August 2000 when it was closed due to low coal prices. Quintette produced metallurgical grade coal for export with its major customers being a consortium of Japanese steel mills. The mine had an annual raw coal production capacity of approximately six million tonnes using truck and shovel methods. The coal preparation plant used heavy media separation for primary recovery and hydrocyclones and froth flotation for fine coal recovery. The plant had an annual clean coal production capacity in excess of five million tonnes per year. Actual coal production for the mine in the late 1990’s, prior to closure, was in the range of 3 to 4 million clean tonnes per year.
Following closure, the mine’s mobile equipment was either sold or moved to other operations. While some parts of the mine infrastructure were sold, the coal preparation plant is still on-site.
2.1.2 Bullmoose Mine
The Bullmoose Coal operation, which was developed in 1983, is a joint venture consisting of Rio Algom, Teck Corporation, and Nissho Iwai Coal Development (Canada) Ltd. Teck is the operator of the joint venture. The mine produces coal from the South Fork deposit located 40 km west of Tumbler Ridge. Truck/shovel mining takes place between 1300m and 1800m on the north facing slope of Mount Collier, an area consisting of northern boreal forest at the lower elevation and alpine meadows in the top benches. The plant, heavy equipment shop and office buildings lie in the West Bullmoose Creek valley at 1100m. The clean coal is trucked to the clean coal loadout approximately 38km from the plantsite.
Coal production capacity is 2.3 Mt/annum but shipments of metallurgical coal to the Japanese steel industry have averaged between 1.6 and 1.9 Mt/annum in recent years. In early 1998 production was cutback to 1.5 Mt for years 1998 to the planned closure date in 2003. Coal production in 2000 was 1.4Mt clean coal.
2.2 Project Setting
The Wolverine project is set in an area that has historically been a coal producing region, as discussed above. This section provides an overview of the project components and the existing infrastructure that could help sustain coal resource extraction in region. The existing regional infrastructure was built to support production of 12 Mt of coal per year and is capable of supporting the 1.5 to 2.0 Mt of production anticipated from the Wolverine project, which will be the only coal produced in the region at the time of scheduled start-up.
Western holds 21 licenses (another four are under application) located within coal measures strata in close proximity to Tumbler Ridge, BC. The licenses are part of Western’s Wolverine
Western Canadian Coal Corp. LORAX PROJECT DESCRIPTION WOLVERINE COAL PROJECT APPLICATION REPORT 2-4 Group, which is one of three property groups that Western holds in northeast BC (Figure 2.2-1). A more detailed account of the Wolverine coal licenses is provided in Section 3.6.
Also shown on Figure 2.2-1 are the main elements of the Wolverine project which consist of the EB open pit mine, the Perry Creek underground mine, and a processing plant/load-out facility located in the Wolverine River valley about 25 km from the Tumbler Ridge townsite. The underground mine portals and the plantsite loadout are located adjacent to the existing BC Rail Tumbler Ridge branchline. The EB open pit is accessed via an existing resource road, which extends about 16 km west of the Wolverine River valley. The project offers geographic advantage due to its proximity to the rail line and the town of Tumbler Ridge.
Tumbler Ridge is a town of approximately 2,300 persons and is large enough to supply most services for the Wolverine project. The town has the infrastructure for a population of up to 6,000 people. There is a trained workforce in the community, which has developed primarily to serve the local mining industry. Due to the mine closings the work force is under-employed. Tumbler Ridge is accessed by two paved highways, Highway 29 and Highway 52 that extend south of Chetwynd and Dawson Creek, respectively. There is a regional airport at Dawson Creek that provides service to major centers in western Canada and beyond.
Tumbler Ridge and the mining operations are serviced by a high voltage transmission line that runs south from Chetwynd parallel to Highway 29. The line crosses the Wolverine River valley about 15 km east of the proposed Wolverine plantsite area.
BC Rail operates a rail line through the Wolverine River valley that services the coal mines at Quintette and Bullmoose. Since August 2000, only the Bullmoose mine continues to operate. The rail provides direct access to the port of Vancouver or indirect access via CN Railway at Prince George to Ridley Terminals at Prince Rupert. There is a need for replacement coal production on the rail line.
2.3 Project Details
This section provides a description of the Wolverine project, which is based on preliminary level engineering. On-going feasibility evaluations, which include recent drilling investigations, will define an economic production profile for the project and the engineering designs sufficient to support project financing and further regulatory submissions. Initially, a description of the geology and the coal resources presently defined on the property is discussed. Subsequently, the project facilities are outlined including the surface mine complex, the underground mine area, the maintenance and administrative facility and the coal processing and loading facility.
Western Canadian Coal Corp. LORAX PROJECT DESCRIPTION WOLVERINE COAL PROJECT APPLICATION REPORT 2-5 figure 2.2-1 coal licences
Western Canadian Coal Corp. LORAX PROJECT DESCRIPTION WOLVERINE COAL PROJECT APPLICATION REPORT 2-6 2.3.1 Geology and Coal Resources
Economic coal seams in the Peace River area are found in Lower Cretaceous strata which were uplifted during the Laramide Orogeny to form the Rocky Mountains. Thrust faulting and intense folding strongly affected the strata during this mountain-building phase. The resulting structural geometries are complex both across and parallel to the northwest-southeast trending structural trend. Well developed coal seams are found in the Gates Formation and in the underlying Gething Formation, both of Lower Cretaceous age. These two phases of continental sedimentation are separated by the marine deposits of the Moosebar Formation. Figure 2.3-1 shows the general stratigraphic relationship of Cretaceous strata that contain the northeast BC coal measures.
Well developed coal seams are found in the Gates and Gething Formation. The Gates coal measures are all of medium volatile rank and the Gething coals are low to medium volatile in rank. Unoxidized Gates and Gething coals in the region are suitable as coking coal products, after beneficiation to ash contents in the 8 to 10% range. Oxidized zones occur near the surface (usually at depths of bedrock cover less than 10 to 15m) although oxidation can also occur at depth in heavily fractured and jointed beds.
Figure 2.3-2 shows a regional coal geology map that indicates relationships between Western’s Wolverine Group coal licenses and relevant coal geology features. The most pervasive structural feature is the Mesa Thrust that separates the coal bearing measures in Western’s Mount Spieker and Hermann areas from the Perry Creek property, which is southeast of the Mesa Thrust. In each of these areas there are a number of major folded structures and more minor thrust faults that define the positions of the coal bearing measures relative to the topography.
Table 2.3-1 shows a summary of coal resources for Western’s Wolverine property derived from a recent report by Norwest (2001). The resource areas are also shown in Figure 2.3-2. In-place tonnage values shown in the table were derived from different sources and are classified differently, as indicated by the different references and classification criteria. The Perry Creek underground resource has been determined according to currently accepted criteria developed by the Geologic Survey of Canada (GSC, 2001). The other areas require updated resource calculations based on current standards and the 2001 drilling results. The Wolverine project is planned to mine Gates coal measures in the EB Pit and the Perry Creek underground area. There is additional potential for surface mineable resources in the Hermann North area. A brief summary for the coal resource potential in each of these three areas is provided in the following sections.
Western Canadian Coal Corp. LORAX PROJECT DESCRIPTION WOLVERINE COAL PROJECT APPLICATION REPORT 2-7 figure 2.3-1 stratigraphic column
Western Canadian Coal Corp. LORAX PROJECT DESCRIPTION WOLVERINE COAL PROJECT APPLICATION REPORT 2-8 figure 2.3-2 Western resource areas
Western Canadian Coal Corp. LORAX PROJECT DESCRIPTION WOLVERINE COAL PROJECT APPLICATION REPORT 2-9
2.3.1.1 EB Pit The EB Pit area was extensively explored in the late 1970’s early 1980’s by Mitsui Mining and Ranger Oil. The deposit contains four shallow dipping Gates coal seams that have surface mining potential. Historical resource estimates from the earlier mining studies indicate about 19 million tonnes of coal in place at a total strip ratio of about 7.5 cubic meters of overburden to 1 tonne of coal. There was about 16 million tonnes identified as unoxidized coal. Western is currently carrying out further drilling on the deposit to better define the resource potential.
Once a revised geological model has been prepared, a new resource tonnage will be derived based on current standards of practice for resource determination. The new geological interpretation will also provide a basis for feasibility level mine engineering and economic evaluations leading to the delineation of coal resources.
Table 2.3-1: Coal Resources Resource Mining Coal Resources Reference Comments Area Method (in-place tonnes x 106) Mt. Spieker Robertson Research (North Surface 5 "Historical Resource" Ridge America) Ltd., 1978.
Robertson Research EB Pit Surface 19 "Historical Resource" (North America) Ltd., 1978.
Hermann Norwest Mine Services Ltd., Surface 10-15 Tonnage Estimate North 2001. Pika Geologic Inc., 2000. Indicated and Inferred Perry Creek Underground 22 (Interpretation accepted by Resources (GSC 88-21) Norwest, 2001) Robertson Research (North Bird Seam Underground 29 "Historical Resource" America) Ltd., 1978. . Note: shaded rows contain resources within the Wolverine project mine plan. The non-shaded Resource areas are not considered at this time.
2.3.1.2 Perry Creek Underground The Perry Creek underground area has been the subject of sporadic exploration activity since 1971, when it was first identified as a potential underground resource area. A recent coal resource evaluation (Norwest, 2001), carried out to current standards, identified about 22 million tonnes of coal in-place from 3 plies of J-Seam (indicated and inferred underground resources). Additional coal resources have been identified (speculative resources) along the geological trend that defines the underground resource area. J Seam is located near the bottom of the Middle Gates coal measures strata and is known in the region as a continuous coal seam with relatively low in-seam ash contents (12 to 15%). Subsequent to the recent coal resource evaluation, Western has drilled additional holes to better define the resource and to provide engineering data for feasibility level evaluation work.
Western Canadian Coal Corp. LORAX PROJECT DESCRIPTION WOLVERINE COAL PROJECT APPLICATION REPORT 2-10 2.3.1.3 Hermann North The Hermann North area lies south of the Wolverine River and is directly southeast of Quintette Coal’s Mesa Pit. The property was extensively explored during the 1980’s by Quintette as part of their ongoing exploration activities adjacent to the active mining areas. A review of the open file assessment reports for the area shows six coal zones with surface mining potential that have a typical aggregate thickness of about 17m. Some of the zones show high ash contents. Rough calculations indicate that there could be 10 to 15 million tonnes of coal in place at potentially surface mineable depths within an area currently defined by drilling. There are probably additional coal tonnages amenable to surface mining methods along the geological trend. A coal resource study for the Hermann North property is currently underway which will quantify surface mineable coal resources according to current standards. The Hermann North area is not currently part of the Wolverine project application area but offers potential for further coal production beyond the initial planning basis.
2.3.2 Project Facilities
The project is currently planned for clean coal production of 1.5 to 2.0 million tonnes per year. Drilling and engineering work presently underway is focused towards delineation of a reserve base for 10 to 15 years of production. The main facilities that will need to be constructed for the project are a surface mining complex, an underground mining area, coal processing/load-out facilities, and a mine maintenance/administration complex. Figure 2.3-3 shows an overview conceptual layout for these facilities and related infrastructure as well as the location for the different coal licenses that comprise the Wolverine property.
2.3.2.1 Surface Mine Complex The surface mine complex, known as the EB Pit area, is located at the headwaters of Perry Creek. According to the current conceptual layout shown in Figure 2.3-4, the total EB surface area is 670 hectares of which the pit area covers approximately 150 hectares and the dumps require a footprint of roughly 300 hectares. The majority of the remaining 220 hectares will not be directly affected by mining operations but will be adjacent to mine roads and infrastructure. Mining will take place by conventional excavator-truck methods. Consolidated overburden will be drilled, blasted, loaded into trucks and placed in external waste rock dumps or back-filled into the mined-out pit. Run-of-mine coal will be loaded and hauled down the Perry Creek road to the processing plant. Proposed facilities for the surface mining complex include the pit area, waste rock overburden dumps, haul roads, and fuel storage/mine office facilities. In addition, the mining activity will require proper surface water management control with sedimentation ponds and sub-surface drainage structures.
Western Canadian Coal Corp. LORAX PROJECT DESCRIPTION WOLVERINE COAL PROJECT APPLICATION REPORT 2-11 figure 2.3-3 overview drawing
Western Canadian Coal Corp. LORAX PROJECT DESCRIPTION WOLVERINE COAL PROJECT APPLICATION REPORT 2-12 figure 2.3-4 Surface Mine Layout
Western Canadian Coal Corp. LORAX PROJECT DESCRIPTION WOLVERINE COAL PROJECT APPLICATION REPORT 2-13
EB Pit The pit area is sized (preliminary planning basis) for mining about 15 million tonnes of ROM coal and about 90 million bank cubic meters (BCM) of waste rock (nominal 6:1 BCM:tonne). The pit area is contained within shallow dipping footwall strata (10 to 35 degrees) and a benched highwall (50 to 55 degrees) developed at the economic cutoff. An updated geological model (based on new exploration results), geotechnical design criteria, and mine engineering/economic criteria will be used at the next stage of engineering for more accurately determining the pit boundaries and material quantities. Figure 2.3-5 shows a typical cross section through the pit area. Waste Rock Dumps There are four waste rock dumps designed to contain about 117 million cubic meters of end- dumped material (30% volume swell). The west and center dump areas are currently designed as side-hill fills and the larger North Dump is a valley fill that covers the north fork of Perry Creek. Prior to construction, topsoil will be stripped and stored within small stockpiles in the dump footprint areas for ongoing reclamation activities. In addition, the main soil stockpile will be located in the central area south of the EB Pit (Figure 2.3-5). Dumps will be placed by end- dumped lifts ranging in height from 50 to 150m on relatively shallow foundation slopes (less than 10 degrees). Figure 2.3-5 shows cross sections for the North and West Dumps.
Haul Roads There is an existing road up the Perry Creek valley that will be used to gain pit access and for hauling ROM coal to the processing plant. The haul road will be upgraded for 40 tonne capacity coal haul trucks. The road will be extended into the pit area as shown on Figure 2.3-4. Waste haul routes will be placed by end dumping using available waste rock. There are two single span bridges along the main haul route; one bridge crosses Perry Creek about 7 km east of the Wolverine valley (Figure 2.3-3) and the other crosses the north fork of Perry Creek below the North Dump. Both bridges need to be upgraded or replaced for coal haul traffic.
Fuel Storage and Office Facilities The surface mine complex will include some ancillary facilities for fuel storage/lubrication and a mine office (trailers) for supervisory and technical personnel. At this time there are no plans for running power lines into the surface mine area but this option may be considered as part of the detailed feasibility study. Explosives will be supplied by a third party vendor. Further discussion of explosives requirements and permitting issues is contained in Section 8 of this application.
Western Canadian Coal Corp. LORAX PROJECT DESCRIPTION WOLVERINE COAL PROJECT APPLICATION REPORT 2-14
Figure 2.3-5 EB Pit Cross section
Western Canadian Coal Corp. LORAX PROJECT DESCRIPTION WOLVERINE COAL PROJECT APPLICATION REPORT 2-15
Water Management Facilities Sedimentation ponds will be constructed to capture runoff water below the side-hill dumps and through-flow drainage beneath the North Dump will be managed by a rock drain designed and constructed according to best practices. Creek crossings will be sized for culverts and runoff water from the road surface will be collected in ditches.
Figure 2.3-4 shows that there are two gas wells (completed but not producing) located in the Perry Creek watershed near the surface mine area. Pipeline construction has connected the lower well to the main line in Bullmoose Creek. The conceptual plan is designed to accommodate these facilities and discussions with the pipeline operator are underway to mitigate conflict between mining and gas production.
2.3.2.2 Underground Mine Area The underground mine complex, known as the Perry Creek underground area, is located in the Wolverine valley adjacent to the existing BC Rail branch line that services the Tumbler Ridge area, including the Bullmoose mine and Quintette property. Figure 2.3-6 shows the layout of the underground area and the proposed portal area, which will be developed at the J-Seam subcrop allowing direct access to the coal. Underground mining will take place by the room-and-pillar method, which is well suited to the geological conditions at Perry Creek.
Room and pillar mining proceeds as a two-stage development and pillar extraction operation. First development rooms or entries are extracted which serve the multiple role of coal source, access opening, transport drift, and airway. Development continues leaving behind rectangular pillars between entries to control local response of the immediate roof and global response of the surrounding rock mass. After completing development within an area, depillaring occurs in a controlled manner and the roof is allowed to collapse in behind the depillared sections. The process of entry or room development and pillar extraction takes place in an advance/retreat manner with development proceeding up to the end of an extraction panel area and depillaring taking place in a reverse direction back towards the main entries. Room and pillar mining in shallow dipping Rocky Mountain coal measures is a proven method of underground extraction.
Proposed facilities for the underground mining complex are the underground mine area and a surface portal area where access to the workings is gained.
Perry Creek Mine The Perry Creek underground mine layout (Figure 2.3-6) lies within shallow dipping coal measures strata with a maximum seam gradient of 16 degrees. The conceptual mine layout is designed for about 12 to 13 million tonnes of underground coal production (22 million tonnes in- place) with potential extension of the coal resource along trend. The workings will be accessed
Western Canadian Coal Corp. LORAX PROJECT DESCRIPTION WOLVERINE COAL PROJECT APPLICATION REPORT 2-16 Figure 2.3-6 Perry Creek Layout
Western Canadian Coal Corp. LORAX PROJECT DESCRIPTION WOLVERINE COAL PROJECT APPLICATION REPORT 2-17 via four main entries driven northeast from the portal area. In the current concept, extraction panels are developed up-dip from the main entries. After reaching the boundary of each extraction area, the pillars on each side of the entry will be extracted, retreating downhill towards the main entry panel. Barrier pillars will be left unmined against the outcrop, adjacent to the mine entries, and between extraction panels. This simple layout is designed to provide a safe, efficient and flexible mining operation. An updated geological model, geotechnical design criteria, and mine engineering/economic criteria will be used at the next stage of engineering for determining the mine layout and sizing the underground openings.
Perry Creek Portal Area The portal area, which is developed at the surface adjacent to the J-seam subcrop, will be sized to accommodate the four main entries, ventilation equipment, crew access, water management from the underground workings, and ROM coal handling and stockpiling. Coal will be conveyed out of the mine by conveyor and placed by radial stacker on a 10,000 tonne stockpile. Coal transport to the coal process plant will be by truck or conveyor. Water draining from the workings will be routed to a settling pond. An option that is being assessed in the portal area is a small open pit to get initial coal production plus set up the pads for the underground operation. The pit would be approximately 500 m by 200 m and would have an adjacent external dump of equal size; hence, a 20 ha disturbance area would be required versus the 5 ha now proposed for the portal site.
2.3.2.3 Mine Maintenance and Administration Facilities Maintenance and warehouse facilities for both the underground and surface operations will be located in the Wolverine River valley as shown on Figure 2.3-7. At this time, it is planned that all of the mining equipment will be serviced at this location including trucks and excavation equipment from the surface mine which will be transported down the Perry Creek valley by low- boy trailers. However, consideration may be given to establishing a maintenance building adjacent to the EB Pit at some time in the future. The Wolverine valley maintenance and warehouse area will also serve as a ready area and mine dry for crews that are traveling back and forth to the different work areas (surface, underground, and processing). In addition, offices for the administration staff and mine management are planned for this location. A layout for this area will be developed as engineering proceeds.
2.3.2.4 Coal Processing and Loading Facilities The coal processing and loadout facility is planned to be located in an area directly adjacent to the rail, about 3 km southwest of the underground mine portals, as shown on Figure 2.3-7. This is considered the primary site for the plant and loadout as the area is flat, well drained, and is adjacent to an existing railway siding. The inset in Figure 2.3-7 depicts a generic layout for the process plant and rail load-out which shows the ROM stockpile, the plant site itself, a clean coal stockpile, and the rail load-out structure. Sizing of the stockpiles will need to be carried out
Western Canadian Coal Corp. LORAX PROJECT DESCRIPTION WOLVERINE COAL PROJECT APPLICATION REPORT 2-18 figure 2.3-7 maintenance and warehouse layout
Western Canadian Coal Corp. LORAX PROJECT DESCRIPTION WOLVERINE COAL PROJECT APPLICATION REPORT 2-19 based on production requirements but it is anticipated that the piles will be sized for about 10,000 tonnes ROM coal and 50,000 tonnes clean coal.
The conceptual planning carried out to date has identified two alternate sites for the coal process and load-out facility. One of the alternative sites is located close to the underground portal area and the other alternative site is located down the valley near the confluence of Perry Creek and the Wolverine River. Further engineering and environmental evaluations will be carried out to compare the costs, benefits and environmental suitability of both sites.
A clean coal process flow sheet has not been developed at this time. Typically, coal processing of Rocky Mountain coking coals involves two primary streams. The coarse feed (+0.5mm) is usually routed to cyclones and the fine feed (-0.5mm) is sent to a froth flotation circuit. The two products are combined, dried in a thermal dryer, and sent to the clean coal stockpile. The waste underflow material from the coarse stream is stored as a “dry” coarse coal reject and the fine slurry waste from the flotation cells is pumped as tailings to a containment pond. Figure 2.3-7 shows footprint areas, based on conceptual design, for the proposed and alternate coarse coal reject storage and the tailings facility located adjacent to the primary plant and load-out site. These storage areas and their design are subject to geotechnical foundation investigations, volume requirements, and process flow sheet development. The current concept for layout of these facilities is briefly described as follows:
• Coarse coal reject will be trucked from the plant site and stacked in lifts against the valley slope southwest of the plant area as shown on Figure 2.3-6. The pile will need to be compacted for adequate strength and under-drains may be required to ensure through- flow from intermittent drainages above the pile and to maintain a low phreatic surface for long term stability. The current conceptual configuration is about 20 hectares in area and is a 40 m high pile with 2H:1V slopes.
• Tailings will be pumped as a slurry and stored behind a fully enclosed compacted fill dam structure. The dam will be constructed from available borrow materials and coarse coal reject from the processing operation according to current standards of practice for dam design and operation. The footprint shown on Figure 2.3-6 is about 15 hectares in area and is sized for a 40 m high structure with 2H:1V outside slopes.
Figure 2.3-8 shows a conceptual coal handling flow sheet for the project that ties together the different components. Raw coal from each of the two mining areas is transported by 40 tonne trucks and stockpiled at the plantsite. Plant feed enters the preparation plant via a conveyor and exits in three streams; a clean coal product and two waste streams. The clean coal is stockpiled for loading onto 10,000 tonne unit trains for shipment to port facilities on the coast. The two waste products, a dry coarse reject and a wet fine tailings are transported by truck and slurry pipeline respectively, and stored in specially designed facilities as discussed above.
Western Canadian Coal Corp. LORAX PROJECT DESCRIPTION WOLVERINE COAL PROJECT APPLICATION REPORT 2-20 Figure 2.3-8 flowsheet
Western Canadian Coal Corp. LORAX PROJECT DESCRIPTION WOLVERINE COAL PROJECT APPLICATION REPORT 2-21
The process overview presented here is based on methodologies currently used in the north east coal fields. Alternative coal processing methodologies will be evaluated as part of the feasibility study.
2.4 Project Phases and Schedules
The project schedule is timed for coal production to begin in late 2003 / early 2004. The project schedule (Figure 2.4-1) indicates that the major project activities have already been initiated with engineering/regulatory work already underway and will finish with mine decommissioning in 2015 or later. It is expected that additional resources will be outlined as mining proceeds which could extend the mine life beyond the initial 12 to 15 years of production that is currently the planning basis.
Figure 2.4-1: Proposed Wolverine Project Schedule 2001 2002 2003 2004 2005- 2014 Engineering & Regulatory Drilling Feasibility Environmental Assessment Mine Approvals Detailed Engineering/Procurement Construction Bridges Road/Power Plantsite Mining Initial Development Coal Production Note: Coal production is expected to increase during early 2004
2.4.1 Mine Engineering and Approvals
Drilling for resource delineation and engineering/environmental evaluations is already underway. It is planned to have a bankable feasibility study complete by the end of March that will include a mine plan outlining economic pit limits, detailing waste rock and water management designs and providing an optimized production profile. The engineering will be sufficient to support ongoing environmental assessment evaluations. It is planned to continue to collect environmental baseline information and to submit the Project Report in June, 2002. Allowing for a 6 month review and approval process, Western anticipates the Project Approval Certificate decision by the end of 2002. Financial commitments leading to coal production are contingent on this schedule.
Western Canadian Coal Corp. LORAX PROJECT DESCRIPTION WOLVERINE COAL PROJECT APPLICATION REPORT 2-22 2.4.2 Construction
Following regulatory approvals and project financing it is planned that construction will begin in the Spring of 2003 with road and bridge upgrades. This will allow access for heavy equipment to begin the major infrastructure construction works. It is anticipated that the plantsite construction (includes loadout and maintenance facilities) will require a 9 month construction period. The current plan calls for completing construction activities in early 2004.
2.4.3 Mining
Mining activity will proceed with initial development of the surface and underground mine areas in 2003 (second quarter), while plantsite and infrastructure construction continues. An initial opening cut and pre-strip will be required in the EB Pit in order to provide access for coal production. The main roadways for the underground operation will also require a development phase prior to coal production. It is planned to begin producing coal in early 2004. Coal production will be phased in towards the full production planning basis over a 2 to 3 year period as development work in the mining areas matures. Mining at full production will proceed over a 12 to 15 year period until at least the end of 2015. Further production beyond 2015 will depend on ongoing exploration and development efforts that will take place during the mine life. As discussed previously, additional coal resource potential has already been identified on nearby license areas held by Western.
2.4.4 Reclamation and Mine Decommissioning
The current land use in the Wolverine project footprint includes petroleum and natural gas exploration, wildlife habitat and forestry. The project is being designed to ensure that there are not conflicts between petroleum and natural gas users and coal exploitation. The general reclamation objectives are to reinstate or improve wildlife habitat and forestry values in disturbed areas through a progressive reclamation plan during operations. Detailed reclamation objectives will be based on the results of terrestrial ecosystem mapping that is being conducted within the footprint of the project that will identify the pre-disturbance value with respect to forestry and wildlife.
Mine decommissioning will take place as part of the overall closure plan for the project and will include removal of the building structures and decommissioning of dam structures. The road and bridge upgrading that are planned as part of the project will provide long term access into the area for other resource and recreation activities.
2.5 Capital Costs and Labour Force Projections
The Wolverine project will contribute significant direct benefits to the regional economy. Table 2.5-1 provides a summary of employment estimates and capital investment dollars anticipated
Western Canadian Coal Corp. LORAX PROJECT DESCRIPTION WOLVERINE COAL PROJECT APPLICATION REPORT 2-23 from the project. The values from the table were derived from the engineering and costing evaluations carried out to date. As a result they are expressed in ranges to reflect the preliminary planning basis.
Table 2.5-1: Summary of Capital Costs and Labour Projections Workforce Capital Investment* Hourly Staff ($Millions) Surface 80-90 25-30 $35-45 Underground 110-120 20-25 $20-25 Processing 20-25 4 $20-30 Administration - 6 N/A Totals: 210-235 55-65 $75-100 * Life of Mine capital investment estimates are based on the purchase of new machinery and equipment. Leasing / rental of equipment could reduce the required capital investment.
During operation, it is anticipated that the project will require between 210 and 235 hourly employees and between 55 and 65 staff employees. The size of the construction labour force will be determined during the feasibility study. It is expected that, most of the hourly employees and many of the full time staff will be recruited from the Tumbler Ridge area and northeast region where high unemployment due to mine closings has recently occurred. In total, it is expected that the project will generate about 260 to 300 new jobs which represents a significant proportion of the Tumbler Ridge workforce. Providing jobs for experienced coal miners in the area presents a winning opportunity for the local community and the project proponents. Additional training will take place on an ongoing basis and to train underground miners.
Also shown in Table 2.5-1 are capital cost estimates for the planned life of the project which are estimated at $75 to $100 million. These cost estimates, which are based on conceptual level engineering cost evaluations, include provisions for mobile mining equipment, mine development, process facilities and a rail load-out. This is a substantial investment that will provide additional jobs and value to the region and the BC economy as a whole.
Western Canadian Coal Corp. LORAX Fort Nelson
BRITISH COLUMBIA ALBERTA
Fort St. John
Dawson Creek B.C. Rail Chetwynd New Hazelton WOLVERINE MacKenzie Tumbler Ridge PROJECT Prince Rupert Smithers Grande Prairie Ridley Terminals NORTHEAST ROCKY Kitimat CNR MTN COAL FIELD
Prince George Grande Cache Edmonton
Hinton
Quesnel Jasper
William Lake
CNR PACIFIC OCEAN
Revelstoke Calgary Port Hardy Banff Port McNeill Lillooet CPR Kamloops CPR Vernon Campbell River B.C. Rail Powell River Sparwood Squamish Kelowna Vancouver Cranbrook Neptune Terminals Penticton Nelson Fernie Princeton Nanaimo Roberts Bank Trail SOUTHEAST ROCKY
Victoria MTN COAL FIELD
100 km 0 100 200 300 400 km
SCALE LEGEND
Roads
Railway
WESTERN COAL CORP. WOLVERINE PROJECT
Figure 2.1-1
Location Plan WESTERN COAL CORP. Moberly Lake Dawson Creek WOLVERINE PROJECT 500 000 550 000 600 000 650 000 Airport Figure 2.2-1 Moberly Lake 29 HWY 97 Wolverine Project Coal Licenses and HWY Moberly River Regional Infrastructure NAD 83 Chetwynd
Kiskatinaw River
HWY 2
WILLOW CREEK Pine River LEGEND HWY MINE
97 Murray River Swan Hard Surface Road Lake HWY 52 Loose or Stabilized Surface All Weather Road
6 150 000 Railway
Power Transmission Line
Wolverine Project Facilities
Western Coal Licences Azu Ski Village U/A Western Coal Licences Gwillim Lake Under Application
Pit Areas BRAZION MacKenzie HWY 29 GROUP Kelly Lake
5 km 0 5 km 10 km 15 km 20 km Mine Maintenance Kelly Administration Facility Lake Note: UTM grid and scale is approximate River
Proposed Sukunka Proposed Perry Creek
Underground B.C. EB Open Pit Tumbler B.C. Rail U/A Ridge ALBERTA BULLMOOSE U/A U/A U/A SOUTH FORK Flatbed Creek Proposed 6 100 000 Plant Site QUINTETTE MESA WOLVERINE MAP OF BRITISH COLUMBIA
QUINTETTE QUINTETTE McLeod Lake GROUP WOLVERINE Hermann SHIKANO Wolverine River Parsnip River Fort Nelson
QUINTETTE BABCOCK
McLeod Murray River Peace River Lake Regional District
Fort St. John
Chetwynd Dawson Creek
Tumbler Ridge Prince Rupert HWY 97 Ridley Terminals Wolverine Wapiti River Project CNR Edmonton B.C. Rail Tumbler Ridge Branchline Prince George
PACIFIC OCEAN William Lake
Calgary Parsnip River
Kamloops 6 050 000 B.C. Rail BELCOURT Sparwood Vancouver GROUP 50km0 50 100150200km Neptune Terminals SCALE Roberts Bank Victoria JURASSIC LOWER CRETACEOUS UPPER CRETACEOUS TERTIARY PERIOD
BULL- HEAD FORT ST. JOHN GP. GP. NORTHEASTERN B.C. ROCKY MOUNTAINS DUNVEGAN FM. BOULDER CREEKFM. SHAFTESBURY FM. MINNES GP. SMOKY GP. FERNIE GP. WAPITI GP. MOOSEBAR FM. HULCROSS FM. CADOMIN FM. GETHING FM. GATES FM. TORRENS MBR. Coal MeasuresStrata *WOLVERINE PROJECT Northeast B.C. Figure 2.3-1 COAL MEASURES WESTERN COALCORP. WOLVERINE PROJECT 1400 1500 6 100000N 6 105000N 6 110000N 6 115000N 1300 1700
1700 General GeologyandCoal 1600 1200
1500
1400 Resources Plan Figure 2.3-2
WESTERN COALCORP. 1300
1800 WOLVERINE PROJECT
1400
1200 1700
SETTLING POND
1500 1300 1600
1400 1500 1500
1600 1600
595 000 E 1700 SETTLING POND 595 000 E 1800
1400 BULLMOOSE COLLIER MT
PIT
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PLANT SITE
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TAILINGS POND
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1800 1700 1400 2000 1500 1900 2000 1300 1600 1200 1500 1400
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FAULT SYNCLINE ANTICLINE CREEK ROAD RAIL 1600
1600 1200 1200
1300
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RESOURCE
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1300 WELL GAS SYNCLINE
MAIN 1600 1900
1100 1300 1500 GETHING FORMATIONCOALMEASURES GATES FORMATIONCOALMEASURES UNDERGROUND MININGRESOURCEAREA SURFACE MININGRESOURCEAREA TECK CORP.PITAREAS 1400
1200 SPIEKER
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1100 1300 1900 BIRD SEAMU/GRESOURCE 1000 1500
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MTN 1700 1300 UNDERGROUND RESOURCE 0
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Scale 1:100,000m 1100
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1700 15001400 1400 RANCH
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PROPERTY 1200 HERMANN 900 1200 WOLVERINE RIVER
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MESA 900 COAL LOADOUT 1300
BULLMOOSE
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1300
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MURRAY RIVER 1200
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COAL LOADOUT 900
RIDGE FLATBED CREEK FLATBED NAD 83 UTM
630 000 E 6 095000N 6 100000N 6 105000N 6 110000N 6 115000N
BULLMOOSE PLANT SITE BULLMOOSE 1500 LEGEND
0 1800 Proposed SiteLayout 1600 PIT 1700 1400 RIVER ROAD RAIL 1700 1300
500 1600
Figure 2.3-3 1200 WESTERN COALCORP. 1700 Scale 1:50,000m 1500
WOLVERINE PROJECT
1000 1400
BULLMOOSE CREEK BULLMOOSE 1300
TECK CORP.PITAREAS
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1500 1300 1600
2000m 1400
1700 1500 1800
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6001600 000 E REESOR 1800 1700
1700 MT 2000 WEST DUMP
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1900 SURFACE MINING FOOTRPRINT: 670ha COMPLEX 381717 381715 381713 EB PITAREA WELL GAS CENTRE DUMPS
NORTH DUMP 1600
1100 1300 1500 1400
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1300 381716 381714 1900
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1400 PERRY CREEK WATERSHED (6000 ha) (6000 WATERSHED CREEK PERRY
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PERRY CREEK WATERSHED (6000 ha) GAS 381711 1700 1900 379597
605 000 E 1800 1800 1700
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379598 1400
1400 1400 WOLVERINE RIVER PERRY CREEK 1300 1200
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PERRY CREEKU/G 1300 1200 RESOURCE
W9 CREEK W9 Proposed1000 public road realignment 379595 379601
900 U/A 1400 PLANT SITE PROPOSED
Proposed public road realignment 900 SED PONDB
TAILINGS FACILITY
1000
1200 1200
W11 CREEK W11 PORTALS 1100 LOAD-OUT FACILITIES POSSIBLE EXTENDED RAIL LOCATION
COAL PROCESSING/ 1400 RANCH 379596
WOLVERINE 383177
MINE MAINTENANCE OPEN PIT 1200 FOOTRPRINT: 7ha ADMIN COMPLEX WOLVERINE RIVER 1100 FOOTRPRINT: 3ha NAD 83
UTM 1400 900 900 383178 OPEN PIT U/A U/A MESA
1000 615 000 E
1300 1300 1600 1600 AIR STRIP
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383179
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WEST DUMP 1900 1750m 1700m
1650m 1900 B' B West Pond North Pond C GAS WELL A EB PITAREA and TOPSOILSTOCKPILES CENTRE DUMPS
1520m
1600m 1600 NORTH DUMP
602 500 E C' 1650m Centre Pond
PERRY CREEK 1625m
ABANDONED Proposed Gas Well Access Well Gas Proposed WELL SPIEKER MOUNT Bridge AND MINEOFFICE East SP 0.5 ha
FUEL STATION 1500 NORTH DUMP ROCK DRAIN 0 A'
250 1900 Scale 1:15,000m
1400
500
1900 1400
750 1500
1000m 1600 LEGEND TRANSMISSION LINE PIPELINE R.O.W.TOBULLMOOSE EXISTING ACCESSROADS PROPOSED PITHAULROAD MAIN HAULACCESSROUTE 2001 DRILLHOLES(Approx.location) 1980's DRILLHOLES Area ConceptualLayout WELL GAS
EB PitSurfaceMine 1700 WESTERN COALCORP. Figure 2.3-4 WOLVERINE PROJECT
605 000 E 1800 A A' 1800 1800
1700 1700
1650 Bench 1625 Bench Creek 1600 1600
1500 Creek 1500 ELEVATION - METRES ELEVATION - METRES
1400 1400
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400
CROSS SECTION A-A' EAST DUMP CROSS SECTION
B B' 1900 1900
1800 1800 1750 Bench
1700 Bench 1700 1700
1650 Bench
Creek 1600 1600 Perry Creek ELEVATION - METRES ELEVATION - METRES
1500 1500
0 200 400 600 800 1000 1200 1400 1600
CROSS SECTION B-B'
WEST DUMP CROSS SECTION 0 50 100 150 200 250 m C C' 1900 1900 SEAM LEGEND
D SEAM
1800 EB OPEN PIT 1800 C SEAM B SEAM A SEAM 50° 1700 1700
1650 Bench WESTERN COAL CORP. WOLVERINE PROJECT 1600 1600 Creek ELEVATION - METRES Figure 2.3-5
1500 1500 EB Pit Surface Mine Area Cross Sections 0 200 400 600 800 1000 1200 1400 1600 1800
CROSS SECTION C-C' EB PIT CROSS SECTION A A' 1500
1400
1300 PERRY CREEK SYNCLINE PERRY CREEK
1200
1100
1000
900 Wolverine Valley Elevation (830 m) UTM 800 NAD 83 -1400 -1200 -1000 -800 -600 -400 -200 0.0 200 400 600 800 1000
LEGEND
EXISTING GROUND J3 SEAM 100m 0 100 200 300 400 500m DRILL HOLE J2 SEAM CONGLOMERATE J1 SEAM
A'
ADMIN/ WORKSHOP
PROPOSED UNDERGROUND READY AREA MINE LAYOUT PARKING
MINE MAINTENANCE ADMIN COMPLEX
MINE PORTALS
Controlled Intersection
6 105 000 N FORTRESS MTN A RANCH
PRIVATE PROPERTY
Proposed public road realignment J SEAM SUBCROP
POSSIBLE EXTENDED
ALTERNATIVE RAIL LOCATION COARSE COAL REJECT LOCATION
1400
1300
1200 TAILINGS FACILITY
Proposed mine road realignment WOLVERINE RIVER
1000 900
1100
PROPOSED PLANT SITE
COARSE 6 102 500 N COAL REJECT
Proposed public road realignment Proposed public road access
Proposed mine road access 612 500 E B.C. RAIL WESTERN COAL CORP. WOLVERINE RIVER WOLVERINE PROJECT
Figure 2.3-6
SED POND B Perry Creek Conceptual Underground Mine Area Layout 0 250 500 750 1000m
610 000 E Scale 1: 15,000m PERRY CREEK
UTM
612 500 E NAD 83 900
ADMIN/ WORKSHOP
READY AREA PARKING
MINE PROPOSED UNDERGROUND PORTALS BRIDGE MINE LAYOUT SED POND B.C. RAIL WOLVERINE RIVER
Controlled Intersection
6 105 000 E
RANCH
PRIVATE PROPERTY J SEAM SUBCROP
Proposed public road realignment
Sewage Treatment
Raw Coal Raw Coal Truck Dump Storage ALTERNATIVE COARSE COAL Rotary Run-off REJECT LOCATION Breaker Water Pond POSSIBLE EXTENDED Stacker RAIL LOCATION Raw Coal Storage
Plant Dry Raw Coal & Office
Reclaim Tunnel Thickener Raw Coal
Refuse Plant Site TAILINGS Bin Refuse Conveyor FACILITY
Proposed mine road realignment
Run-off SEWAGE TREATMENT Water Pond Clean Coal Tunnel 1000 900 SED POND
B.C. RAIL Clean Coal
ROM COAL STOCKPILES Clean Coal CLOSE-UP VIEW OF PLANT 20,000 m3 Rail Loadout PROPOSED PLANT SITE CLEAN COAL STORAGE Proposed public road realignment COARSE WESTERN COAL CORP. LOAD OUT 6 102 500 E COAL REJECT WOLVERINE PROJECT Proposed public PROPOSED road access Figure 2.3-7 PLANT SITE Proposed mine road access Perry Creek Underground Coal Processing and Loadout 0 250 500 750 1000m Facilities Layout
WOLVERINE RIVER Scale 1: 20,000m ROM PERRY CREEK RADIAL UNDERGROUND RADIAL STOCKPILE MINE ROM COAL STACKER 10 000 t FRONT-END 40 t LOADER TRUCK COARSE COAL REJECT PILE
PLANT ROM COAL TRUCK =10,000 t DUMP 40 t 40 t STOCKPILE 100 t TRUCK HOPPER TRUCK FRONT-END EB PIT SURFACE COARSE RAMP LOADER MINE ROM COAL REJECTS FRONT-END 40 t LOADER TRUCK -150 mm ROM COAL
FEEDER BREAKER COAL CLEAN COAL PLANT FEED PREPARATION STOCKPILE= 50,000 t CONVEYOR STACKER PLANT PRODUCT SYSTEM RECLAIM CONVEYOR SYSTEM DECANT WATER RECLAIM
TAILINGS TAILINGS POND
TRAIN LOADOUT CONVEYOR RECLAIM HOPPER 150 t SURGE BIN
WEIGH BELT FEEDER
RAIL CAR
LEGEND WESTERN COAL CORP. WOLVERINE PROJECT 1. = SCALE Figure 2.3-8 Conceptual Materials Handling Flowsheet