TASEKO MINES LIMITED PROSPERITY GOLD-COPPER PROJECT ENVIRONMENTAL IMPACT STATEMENT/APPLICATION

VOLUME INDEX

VOLUME ONE SUMMARY REPORT PROJECT PLANNING & ALTERNATIVES ASSESSMENT The Proponent VOLUME TWO Regulatory Context Information Distribution and Consultation Assessment of Alternatives Environmental Assessment Methods Permits, Licenses and Approvals PROJECT DESCRIPTION AND SCOPE OF PROJECT Project Setting and Land Use Context VOLUME THREE Geology including ARD/ML Mine Plan Fisheries Compensation Plan Environmental Management Program Commitments PHYSICAL ENVIRONMENT VOLUME FOUR Atmospheric Environment Acoustic Environment Surface Water Hydrology/Hydrogeology BIOTIC ENVIRONMENT Water Quality and Aquatic Ecology VOLUME FIVE Fish and Fish Habitat Terrain and Soils Vegetation Wildlife SOCIO-ECONOMICS, HUMAN HEALTH & ECOLOGICAL RISK Economic Issues Social Issues VOLUME SIX Community and Health Services Effects on Resource Uses Human Health and Ecological Risk Assessment Navigable Waters VOLUME SEVEN ARCHAEOLOGICAL AND HERITAGE RESOURCES VOLUME EIGHT FIRST NATIONS ADDITIONAL REQUIREMENTS PURSUANT TO CEAA Accidents Malfunctions and Unplanned Events VOLUME NINE Effects of the Environment on the Project Capacity of Renewable Resources

TASEKO PROSPERITY GOLD-COPPER PROJECT

ENVIRONMENTAL IMPACT STATEMENT/APPLICATION

VOLUME 6: SOCIO-ECONOMICS, HUMAN HEALTH AND ECOLOGICAL RISK ASSESSMENT

March 2009

Table of Contents

Table of Contents

1 Introduction and Summary ...... 1-1 1.1 Introduction ...... 1-1 1.2 Summary ...... 1-3 2 Economic Issues ...... 2-1 2.1 Scope of Assessment for Economic Issues ...... 2-1 2.1.1 Key Economic Issues ...... 2-1 2.1.2 Selection of Key Indicators and Measureable Parameters ...... 2-3 2.1.3 Temporal Boundaries ...... 2-5 2.1.4 Spatial Boundaries ...... 2-5 2.1.5 Environmental Effects Rating Criteria for Assessing Effects Significance ...... 2-5 2.1.6 Influence of Consultation on the Assessment ...... 2-7 2.2 Baseline Conditions for Economic Issues ...... 2-8 2.2.1 Summary of Previous Work and Gap Analysis ...... 2-8 2.2.2 Approach and Methods for Assessment ...... 2-8 2.2.3 Overview of Baseline Conditions ...... 2-8 2.3 Project Effects Assessment ...... 2-9 2.3.1 Labour Market ...... 2-9 2.3.2 Incomes ...... 2-17 2.3.3 Government Finances ...... 2-21 2.3.4 Regional Economic Development ...... 2-26 2.4 Summary of Effects on Economic Issues ...... 2-32 2.4.1 Summary of Mitigation for Economic Issues ...... 2-33 2.4.2 Summary of Residual Project and Cumulative Effects for Economic Issues .... 2-33 2.4.3 Follow-up and Monitoring for Economic Issues ...... 2-34 Appendix 2-A Description of Communities ...... 2-39 Appendix 2-B Labour Market Analysis ...... 2-45 Appendix 2-C Incomes ...... 2-57 Appendix 2-D Government Finances ...... 2-59 Appendix 2-E Regional Economic Development ...... 2-61 3 Social Issues ...... 3-1 3.1 Scope of Assessment for Social Issues ...... 3-1 3.1.1 Regulatory Setting ...... 3-1 3.1.2 Key Issues for Social Issues ...... 3-1 3.1.3 Selection of Key Indicators and Measurable Parameters ...... 3-6 3.1.4 Temporal Boundaries ...... 3-8 3.1.5 Spatial Boundaries ...... 3-8 3.1.6 Environmental Effects Rating Criteria for Assessing Effects Significance ...... 3-9 3.1.7 Influence of Consultation on the Assessment ...... 3-11 3.2 Baseline Conditions for Social Issues ...... 3-12 3.3 Project Effects Assessment ...... 3-13 3.3.1 Population ...... 3-13 3.3.2 Workforce Settlement and Housing ...... 3-21

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3.3.3 Transportation and Traffic ...... 3-30 3.3.4 Community Services ...... 3-42 3.3.5 First Nations Cultural Heritage ...... 3-49 3.4 Summary of Project Effects on Social Issues ...... 3-55 3.4.1 Summary of Mitigation for Social Issues ...... 3-55 3.4.2 Summary of Residual Project and Cumulative Effects for Social Issues ...... 3-56 3.4.3 Follow-up and Monitoring for Social Issues ...... 3-57 3.4.4 Additional Considerations for Social Issues ...... 3-62 Appendix 3-A Population ...... 3-63 Appendix 3-B Social Characteristics ...... 3-67 Appendix 3-C Housing ...... 3-71 Appendix 3-D Transportation ...... 3-76 Appendix 3-E Community Services ...... 3-77 4 Community and Health Services ...... 4-1 4.1 Scope of Assessment for Community and Health Services ...... 4-1 4.1.1 Regulatory Setting ...... 4-1 4.1.2 Key Issues for Community and Health Services ...... 4-1 4.1.3 Selection of Measurable Parameters ...... 4-4 4.1.4 Temporal Boundaries ...... 4-5 4.1.5 Spatial Boundaries ...... 4-5 4.1.6 Environmental Effects Rating Criteria for Assessing Effects Significance ...... 4-5 4.1.7 Influence of Consultation on the Assessment ...... 4-7 4.2 Baseline Conditions for Community and Health Services ...... 4-8 4.3 Project Effects Assessment ...... 4-8 4.3.1 Scope of Assessment for Community and Health Services ...... 4-8 4.3.2 Effects Assessment Methodology for Community and Health Services ...... 4-8 4.3.3 Baseline Conditions ...... 4-9 4.3.4 Assessment of Project’s Demand on Health Services ...... 4-11 4.4 Summary of Effects on Community and Health Services ...... 4-14 4.4.1 Summary of Mitigation on Community and Health Services ...... 4-14 4.4.2 Summary of Residual Project and Cumulative Effects for Community and Health Services ...... 4-14 4.4.3 Follow up and Monitoring for Community and Health Services ...... 4-15 4.4.4 Additional Considerations for Community and Health Services ...... 4-17 Appendix 4-A Community and Health Services Profile ...... 4-19 Appendix 4-B Emergency Services ...... 4-23 Appendix 4-C Health Status ...... 4-27 5 Effects on Other Resource Uses ...... 5-1 5.1 Scope of Assessment for Resource Uses ...... 5-1 5.1.1 Regulatory Setting ...... 5-1 5.1.2 Key Issues for Resource Uses ...... 5-2 5.1.3 Selection of Key Indicators and Measurable Parameters ...... 5-6 5.1.4 Temporal Boundaries for Resource Uses ...... 5-8 5.1.5 Spatial Boundaries for Resource Uses ...... 5-8 5.1.6 Environmental Effects Rating Criteria for Assessing Effects Significance ...... 5-9

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5.1.7 Influence of Consultation on the Assessment ...... 5-11 5.2 Baseline Conditions for Resource Uses ...... 5-12 5.2.1 Summary of Previous Work and Gap Analysis ...... 5-12 5.2.2 Approach and Methods for 2006 Assessment ...... 5-13 5.2.3 Baseline Conditions for Resource Uses ...... 5-13 5.3 Project Effects Assessment ...... 5-14 5.3.1 Land Use Objectives ...... 5-14 5.3.2 Forestry ...... 5-22 5.3.3 Agriculture and Ranching ...... 5-28 5.3.4 Fishing...... 5-35 5.3.5 Hunting ...... 5-39 5.3.6 Public Recreation ...... 5-45 5.3.7 Tourism ...... 5-53 5.3.8 Trapping ...... 5-61 5.4 Summary of Effects on Resource Uses ...... 5-65 5.4.1 Summary of Mitigation for Resource Uses ...... 5-65 5.4.2 Summary of Residual Project and Cumulative Effects for Resource Uses ...... 5-66 5.4.3 Follow-up and Monitoring for Resource Uses ...... 5-72 5.4.4 Additional Considerations for Resource Uses ...... 5-72 Appendix 5-A GIS Tables ...... 5-73 Appendix 5-B Land Use ...... 5-77 Appendix 5-C Forestry Tables and Figures ...... 5-79 Appendix 5-D Agriculture/Ranching ...... 5-83 Appendix 5-E Fishing...... 5-87 Appendix 5-F Hunting Profile ...... 5-93 Appendix 5-G Public Recreation Profile ...... 5-99 Appendix 5-H Tourism Profile ...... 5-103 Appendix 5-I Trapping ...... 5-111 6 Human Health and Ecological Risk Assessment ...... 6-1 6.1 Scope of Assessment for Human and Ecological Health ...... 6-1 6.1.1 Regulatory Setting ...... 6-2 6.1.2 Key Issues for Human Health and Ecological Risk Assessment ...... 6-2 6.1.3 Selection of Key Indicators and Measurable Parameters for Human and Ecological Health ...... 6-10 6.1.4 Temporal Boundaries ...... 6-12 6.1.5 Spatial Boundaries ...... 6-12 6.1.6 Environmental Effects Rating Criteria for Assessing Effects Significance ...... 6-12 6.1.7 Influence of Consultation on the Assessment ...... 6-13 6.2 Baseline Conditions for Human and Ecological Health ...... 6-14 6.2.1 Summary of Previous Work and Gap Analysis ...... 6-14 6.2.2 Approach and Methods for Assessment ...... 6-14 6.2.3 Overview of Baseline Conditions for Human Health and Ecological Health ... 6-15 6.3 Project Effects Assessment ...... 6-18 6.3.1 Human Health ...... 6-18 6.3.2 Ecological Health ...... 6-36 6.4 Summary of Effects on Human and Ecological Health ...... 6-44 March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page iii Prosperity Gold-Copper Project

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6.4.1 Summary of Mitigation for Human and Ecological Health ...... 6-46 6.4.2 Summary of Residual Project and Cumulative Environmental Effects on Human and Ecological Health ...... 6-47 6.4.3 Follow-up and Monitoring for Human and Ecological Health ...... 6-47 6.4.4 Additional Considerations for Human Health and Ecological Risk Assessment6-47 Appendix 6-A Human Health Toxicity Values ...... 6-48 Appendix 6-B Human Health Risk Calculation Example–Operations ...... 6-49 Appendix 6-C Ecological VEC Descriptions ...... 6-53 Appendix 6-D Ecological Toxicity Values ...... 6-59 Appendix 6-E Phytotoxicity Benchmark Values ...... 6-61 7 Navigable Waters ...... 7-1 7.1 Background ...... 7-1 7.2 Waterways and Water Bodies Directly Affected ...... 7-2 7.2.1 Fish Lake ...... 7-2 7.2.2 Little Fish Lake ...... 7-2 7.2.3 Fish Creek ...... 7-3 7.2.4 Transmission Line River and Stream Crossings ...... 7-3 7.3 Project Components Affecting Waterways ...... 7-6 7.4 Current and Historical Use of Fish Lake ...... 7-7 8 References ...... 8-1 8.1 Literature Cited ...... 8-1 8.2 Personal Communications ...... 8-6 Internet Sites ...... 8-8 9 Appendices ...... 9-1

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Table of Contents

List of Tables

Table 2-1 Interaction of the Project with Economic Issues ...... 2-2 Table 2-2 Potential Economic Effects Associated with the Project ...... 2-2 Table 2-3 Economic Effects and Measureable Parameters ...... 2-4 Table 2-4 Residual Effects Criteria for Economic Issues ...... 2-7 Table 2-5 Labour Requirements by Project Phase (person years) ...... 2-13 Table 2-6 Project Labour Requirements Relative to Measures of Supply at the LSA Level (at Year 4 of Operations) ...... 2-13 Table 2-7 Average Indirect and Induced Employment Effects ...... 2-14 Table 2-8 Average and Peak Direct Employment Income by Project Phase ($ millions/year–$2007) ...... 2-19 Table 2-9 Average Annual Total Income Effects by Project Phase ($ millions–$2007) .. 2-20 Table 2-10 and General Government Revenues for 2007 ...... 2-23 Table 2-11 Average Annual Direct Government Revenue from Payroll and Consumption Taxes ($’000s–$2007) ...... 2-24 Table 2-12 Direct Government Revenue from Corporate, Mining and Property Taxes ($’000–$2007)...... 2-24 Table 2-13 Average Annual Indirect and Induced Government Revenue ($’000s–$2007) . 2-25 Table 2-14 Total Annual Government Revenue ($’000s in $2007) ...... 2-25 Table 2-15 Estimated Goods and Services Purchases in the RSA during Construction ...... 2-29 Table 2-16 Summary of Project Residual Environmental Effects: VEC ...... 2-35 Table 2-17 First Nations in the RSA ...... 2-41 Table 2-19 Band Business and Economic Activities ...... 2-42 Table 2-20 Planned Development Projects ...... 2-43 Table 2-21 Band Business and Economic Activities ...... 2-43 Table 2-22 Planned Development Projects ...... 2-44 Table 2-23 Distribution of Experienced Labour Force by Industry, 2001 ...... 2-45 Table 2-24 Distribution of Experienced Labour Force by Occupation, 2001 ...... 2-46 Table 2-25 Experienced Labour Force of First Nation Persons by Industry, 2006 ...... 2-46 Table 2-26 Occupations for Study Area First Nation On reserve and Off Reserve, 2006 ... 2-48 Table 2-27 Labour Force Trends in the Cariboo Development Region ...... 2-49 Table 2-28 Unemployment and Participation Rates, 2006...... 2-50 Table 2-29 Proportion of Tax Filers Receiving Employment Insurance Benefits, 2004 ..... 2-51 Table 2-30 Comparison of Labour Market Variables, 2001 ...... 2-51 Table 2-31 Claimant Trends and Skill Levels ...... 2-52 Table 2-32 Top Ten Work Ready Employment Insurance Claimants (annual monthly average 2005) ...... 2-53 Table 2-33 Employment Multipliers (jobs per direct job) ...... 2-54 Table 2-34 Total Direct Employment by Year (person-years) ...... 2-55 Table 2-35 Total Income Sources, 2004 ...... 2-57 Table 2-36 Average Employment Income, 2004 ...... 2-57 Table 2-37 Average Employment Income for the Experienced Labour Force, 2001 ...... 2-58 Table 2-38 Average Employment Income ...... 2-58 Table 2-39 Study Area Population and Assessment Values ...... 2-59 Table 2-40 Consolidated Revenue as at December 31, 2005 ...... 2-59

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Table 2-41 Government Expenditures as at December 31, 2005 ...... 2-60 Table 2-42 Basic Sector Economic Dependency Changes (1991 to 2001) ...... 2-61 Table 2-43 Major Employers in Williams Lake and Quesnel in 2006 ...... 2-62 Table 2-44 Major Projects in the Study Area, 2006 ...... 2-62 Table 3-1 Interaction of the Project with Social Issues ...... 3-2 Table 3-2 Potential Environmental Effects to Social Issues Associated with the Project ... 3-5 Table 3-3 Social Effects and Measureable Parameters ...... 3-6 Table 3-4 Spatial Boundaries for Social VSCs ...... 3-9 Table 3-5 Census Population and Comparative Growth Rates ...... 3-14 Table 3-6 Housing Number and Ownership for RSA and British Columbia in 2001 ...... 3-22 Table 3-7 Occupied Private Dwelling by Structural Type (2001) ...... 3-23 Table 3-8 Change in Residential Properties by British Columbia Assessment Codes, 2001 to 2005 ...... 3-23 Table 3-9 Assessed Values of Detached Single Family Dwelling, 2001 and 2005 ...... 3-24 Table 3-10 Rental Accommodation for Williams Lake CA ...... 3-25 Table 3-11 Demand For Local Housing over Project Life ...... 3-27 Table 3-12 Highway 20 Annual Average Daily Traffic (vehicles) ...... 3-33 Table 3-13 Collision Prone Areas in the Local Study Area ...... 3-34 Table 3-14 Highway 97 Traffic Volume at Marguerite (vehicles) ...... 3-36 Table 3-15 Current Traffic and Project Related Traffic Volumes (Round-trips per day) .... 3-39 Table 3-16 Student Enrolment in School District 27 ...... 3-44 Table 3-17 Summary of Project Residual Socio-Economic Effects: Social Issues ...... 3-58 Table 3-18 Census Population of Cariboo-Chilcotin Local Health Area ...... 3-63 Table 3-19 On- and Off-reserve Populations for 2001 and 2008 ...... 3-63 Table 3-20 Population Forecast ...... 3-65 Table 3-21 Age Characteristics, 2001 and 2006—Cariboo-Chilcotin Local Health Area and BC ...... 3-67 Table 3-22 Off-reserve Aboriginal Population, 2006 ...... 3-67 Table 3-23 On Reserve Population by Major Age Groups, 2006 ...... 3-68 Table 3-24 Highest Level of Schooling for Residents 20 Years and Older, 2001 ...... 3-68 Table 3-26 Marital Status, 2001 ...... 3-69 Table 3-27 Incidents of Low Income among Economic Families, 2001 ...... 3-70 Table 3-28 Population Aged 19 to 64 Receiving Basic Income Assistance or Employment Insurance ...... 3-70 Table 3-29 Housing Number and Ownership for LSA and BC in 2001 ...... 3-71 Table 3-30 Occupied Private Dwelling by Structural Type, 2001 ...... 3-71 Table 3-31 Housing Statistics, 2006...... 3-72 Table 3-32 Change in Residential Properties by BC Assessment Codes, 2001 to 2005 ...... 3-72 Table 3-33 Assessed Values of Detached Single Family Dwelling, 2004 and 2006 ...... 3-73 Table 3-34 Rental Accommodation for Williams Lake ...... 3-74 Table 3-35 Housing Forecast ...... 3-75 Table 3-36 Estimated Annual Traffic–Williams Lake/Prosperity ...... 3-76 Table 3-37 Student Enrolment in School District 27 ...... 3-77 Table 3-38 Water Rights and Licences within Project Components...... 3-79 Table 3-39 Designated Community Watersheds in the RSA ...... 3-80 Table 4-1 Interaction of the Project with Community and Health Services ...... 4-2

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Table 4-2 Potential Community and Health Service Effects Associated with the Project ... 4-4 Table 4-3 Projected Peak and Average Population and Households for Construction and Operating Phases ...... 4-11 Table 4-4 Summary of Project Residual Environmental Effects: Community and Health Services ...... 4-16 Table 4-5 Community Heath Care Facilities and Services in the Cariboo-Chilcotin ...... 4-21 Table 4-6 Heath Care Facilities by Major Community ...... 4-22 Table 4-7 Public Health Status, Performance and Characteristics in Local Health Areas . 4-27 Table 4-8 Public Health Status, Performance and Characteristics for Aboriginal People in the RSA, 2001 ...... 4-28 Table 4-9 Socio-Economic Indices, Cariboo-Chilcotin Local Health Area, 2005 ...... 4-29 Table 5-1 Interaction of the Project with Resource Uses ...... 5-3 Table 5-2 Potential Project Effects on Resource Uses ...... 5-6 Table 5-3 Key Indicators for Resource Uses and Measurable Parameters ...... 5-7 Table 5-4 Summary of Spatial Boundary Definitions ...... 5-9 Table 5-5 Definition of Project Footprint ...... 5-15 Table 5-6 Private Land and Crown Tenures in the Project Footprint ...... 5-17 Table 5-7 Distribution of Project Footprint in SRMP Land Units ...... 5-19 Table 5-8 Distribution of Project Footprint in SRMP Land Units ...... 5-20 Table 5-9 Area of Stands, by Leading Species, within the Mine Site and Transmission Corridor Footprints ...... 5-24 Table 5-10 Employment from Harvesting Mine Site and Transmission ROW ...... 5-25 Table 5-11 Agricultural Capability within Project Components ...... 5-30 Table 5-12 Range Tenures Overlapping Project Components ...... 5-31 Table 5-13 Hunting Effort Summary, 1996 and 2005...... 5-41 Table 5-14 Area Summary of Registered Guide Territories Overlapped by Project Components ...... 5-42 Table 5-15 Area Summary of Visual Quality Objectives within Project Components ...... 5-48 Table 5-16 Commercial Recreation Tenures Overlapping Project Components ...... 5-56 Table 5-17 Trap Lines Located at the Mine Site, Mine Buffer Area, Road Buffer Area and Transmission Buffer ...... 5-62 Table 5-18 Summary of Fur Harvest from Trap Lines in the Mine Site and Mine Buffer, 1999 to 2005 ...... 5-64 Table 5-19 Summary of Project Residual Environmental Effects: Resource Uses ...... 5-68 Table 5-20 GIS Summary Table ...... 5-73 Table 5-21 Distribution of Project Lands by Cariboo-Chilcotin Land Use Plan Land Units ...... 5-77 Table 5-22 Forest Tenures in the Project Footprint ...... 5-79 Table 5-23 Forest Agreements with First Nations ...... 5-80 Table 5-24 Primary Mills Operating in the Williams Lake TSA in 2005 ...... 5-81 Table 5-25 Employment from Timber Clearing...... 5-81 Table 5-26 Selected Agriculture Statistics for the Cariboo Regional District, Electoral Areas K and E, BC, 2001 ...... 5-84 Table 5-27 Crown Grazing and Hay Cutting Tenures in the Cariboo-Chilcotin, 2003 ...... 5-86 Table 5-28 Socio-Economic Effects and Economic Value of Non-guided Angling in the Cariboo-Chilcotin ...... 5-88

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Table 5-29 Socio-Economic Effects and Economic Value of Guided Fishing in the Regional Study Area ...... 5-91 Table 5-30 Big Game Hunting and Harvest Activity in the Study Area, 1996-2005 ...... 5-94 Table 5-31 Socio-Economic Effects and Economic Value of Resident Hunting in the Regional Study Area, 2005 ...... 5-95 Table 5-32 Area Summary of Registered Guide Territories Intersected by Project Components ...... 5-96 Table 5-33 Socio-Economic Effects and Economic Value of Guide-Outfitting in the RSA ...... 5-97 Table 5-34 Percent Distribution of Recreation Opportunity Spectrum in the Local Study Area ...... 5-99 Table 5-35 Provincial Park Activity in the Regional Study Area, 2006 ...... 5-100 Table 5-36 Value of Public Recreation in the Cariboo-Chilcotin ...... 5-101 Table 5-37 Summary of Tourism Facilities and Features Intersected by Project Components ...... 5-103 Table 5-38 Regional Tourism Indicators, 2000-2005 ...... 5-104 Table 5-39 Hotel, Motel and Resort Accommodations in the Local Study Area ...... 5-105 Table 5-40 Count of Commercial Recreation Tenures Intersected by Project Components ...... 5-106 Table 5-41 Commercial Recreation Tenure User Days, 2001-2006 ...... 5-106 Table 5-42 Socio-Economic Effects and Economic Value of Tourism in the Cariboo- Chilcotin ...... 5-109 Table 5-43 Trap Line Identification by Wildlife Management Unit, 2003 ...... 5-112 Table 5-44 Average Annual Trapping Harvest for the RSA, 1999–2005 ...... 5-112 Table 5-45 Average Trapping Harvest Numbers and Values for the LSA (MU5-4), 1999– 2005...... 5-113 Table 6-1 Interaction of the Project with Human Health and Ecological Risk Assessment ...... 6-4 Table 6-2 Potential Environmental Effects to Human and Ecological Health Associated with the Project ...... 6-6 Table 6-3 Human Health and Ecological Risk Assessment Key Indicators ...... 6-11 Table 6-4 Environmental Effects Rating Criteria for Human Health and Ecological Health ...... 6-13 Table 6-5 Chemicals of Potential Concern ...... 6-16 Table 6-6 Country Foods Selected for Study ...... 6-17 Table 6-7 Potential Pathways of Exposure...... 6-20 Table 6-8 Maximum Predicted CAC Concentrations at Nemaiah Valley throughout the Project ...... 6-24 Table 6-9 Baseline and Post-closure Predicted Surface Water Metal Concentrations ...... 6-26 Table 6-10 Changes in Soil Quality as a Result of Project Activities ...... 6-30 Table 6-11 Changes in Metal Concentrations in Fish Tissue as a Result of Post-closure Water Discharges to the ...... 6-30 Table 6-12 Predicted Hazard Quotients for Toddlers and Adults Consuming Country Foods in the Local Study Area...... 6-32 Table 6-13 Predicted Incremental Lifetime Cancer risk from Arsenic Exposure to Country Foods in the Local Study Area1 ...... 6-33

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Table 6-14 Predicted Hazard Quotients for Toddlers Consuming Fish in the LSA ...... 6-34 Table 6-15 Predicted Hazard Quotients for Adults Consuming Fish in the LSA1 ...... 6-35 Table 6-16 Changes in Soil Quality as a Result of Project Activities ...... 6-37 Table 6-17 Descriptions of Ecological Receptors ...... 6-38 Table 6-18 Hazard Quotients for Plants ...... 6-42 Table 6-19 Hazard Quotients for Wildlife Receptors ...... 6-43 Table 6-20 Hazard Quotients for Avian Wildlife Receptors ...... 6-43 Table 7-1 Transmission Line River and Stream Crossing Sites ...... 7-4 Table 7-2 Summary of the Fish Lake Rainbow Trout Recreational Fishery during 1994–1997...... 7-15

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Table of Contents

List of Figures

Figure 2-1 Regional and Local Study Areas ...... 2-6 Figure 2-2 Annual Average Employment during Mine Life ...... 2-12 Figure 2-3 Total Employment for the Central Cariboo and British Columbia ...... 2-14 Figure 2-4 Annual Average Unemployment Rates ...... 2-49 Figure 2-5 EI Claimants in the Local Study Area ...... 2-52 Figure 3-1 Regional and Local Study Areas ...... 3-10 Figure 3-2 Record of LSA Natural Increase and Net Migration ...... 3-16 Figure 3-3 Forecast of Natural Increase and Net Migration (LHA) ...... 3-17 Figure 3-4 Project Population Forecast and Regional Distribution ...... 3-18 Figure 3-5 LSA Population Forecast With and Without the Project ...... 3-19 Figure 3-6 Change in Households Associated with the Project ...... 3-26 Figure 3-7 Collisions on Highway 20 (2001–2005) ...... 3-34 Figure 3-8 Annual Aircraft Movements at the Williams Lake Airport ...... 3-38 Figure 3-9 Population Distribution in the LSA ...... 3-64 Figure 4-1 Regional and Local Study Areas ...... 4-6 Figure 4-2 Cariboo-Chilcotin Local Health Area 27 ...... 4-20 Figure 5-1 Regional and Local Study Areas ...... 5-10 Figure 5-2 Hierarchy of GIS Analysis Units for Socio-Economic Analysis ...... 5-16 Figure 5-3 Visibility of the TSF Main Embankment ...... 5-51 Figure 5-4 Billed Harvest Volume Williams Lake TSA ...... 5-80 Figure 5-5 Cariboo-Chilcotin Fishing Lodge Activity, 1995–2005 ...... 5-90 Figure 5-6 Commercial Recreation Tenures in the LSA ...... 5-108 Figure 6-1 Key Elements of Human Health and Ecological Risk Assessment ...... 6-3 Figure 6-2 Key Elements of Human Health and Ecological Risk Assessment ...... 6-15 Figure 6-3 Exposure Pathway Model ...... 6-21 Figure 6-4 Exposure Pathway Model for Ecological Receptors ...... 6-40 Figure 7-1 Water Management and Sediment Control Stage 1a Pre-Construction ...... 7-9 Figure 7-2 Water Management and Sediment Control Stage 1b Construction Phase ...... 7-10 Figure 7-3 Water Management and Sediment Control Operations Phase ...... 7-11 Figure 7-4 Water Management and Sediment Control Closure Phase ...... 7-12 Figure 7-5 Water Management and Sediment Control Reclamation and Post-closure Arrangement Phase ...... 7-13 Figure 7-6 Crossing Concept ...... 7-14 Figure 7-7 Chilko Circuit Boat Counts, 2006 and 2007 ...... 7-15

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Acronyms and Abbreviations

Acronyms and Abbreviations

µg/m3 ...... micrograms per cubic metre AAC ...... Annual Allowable Cut AADT ...... Annual Average Daily Traffic AAQC ...... ambient air quality criteria ADD ...... average daily dose AENV ...... Alberta Environment AF ...... absorption factor ALR ...... Agricultural Land Reserve AQOS ...... air quality objectives and standards ATV ...... all terrain vehicle AUM ...... animal unit month BC EAO ...... British Columbia Environmental Assessment Office BC ...... British Columbia BCAS ...... British Columbia Ambulance Service BCBC ...... British Columbia Building Corporation BCEAA ...... British Columbia Environmental Assessment Act CAC ...... criteria air contaminant CCBAC ...... Cariboo-Chilcotin Beetle Action Coalition CCLRMP ...... Cariboo-Chilcotin Land Resource Management Plan CCLUP ...... Cariboo-Chilcotin Land Use Plan CCSAR ...... Central Cariboo Search and Rescue CDI ...... chronic daily intake CEAA ...... Canadian Environmental Assessment Act CMH ...... Cariboo Memorial Hospital CO ...... carbon monoxide CO2 ...... carbon dioxide CoPC ...... chemical of potential concern COSEWIC ...... Committee on the Status of Endangered Wildlife in Canada COTA ...... Council of Tourism Associations CRD ...... Cariboo Regional District CSF ...... cancer slope factor CSR ...... Contaminated Sites Regulations CWS ...... Canada-wide standard EA ...... Environmental Assessment EAO ...... Environmental Assessment Office EI ...... Employment Insurance EIS ...... Environmental Impact Statement EPC ...... exposure point concentration ERA ...... ecological risk assessment ERD ...... Enhanced Resource Development ESS ...... Emergency Social Services FSP ...... Forest Stewardship Plan ha ...... hectares HAP ...... hazardous air pollutant HC ...... Health Canada HHERA ...... human health and ecological risk assessment HQ ...... hazard quotient

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Acronyms and Abbreviations

IF ...... intake factor IHA ...... Interior Health Authority ILCR ...... incremental lifetime cancer risk IR ...... ingestion rate IRM ...... Integrated Resource Management JWA ...... Jacques Whitford AXYS Ltd. KI ...... Key Indicator km ...... kilometres LHA ...... Local Health Area LSA ...... local study area MOE ...... Ministry of Environment MOFR ...... Ministry of Forests and Range MOT ...... Ministry of Transportation MPB ...... mountain pine beetle MSRM ...... Ministry of Sustainable Resource Management MTSA ...... Ministry of Tourism, Sport and the Arts MU ...... Management Units NAAQO...... national ambient air quality objectives NEV ...... Net Economic Value NOAEL ...... no observable adverse effects level NOx ...... nitrous oxides NTFP ...... Non-Timber Forest Products OGMA ...... Old-growth Management Area OME ...... Ontario Ministry of the Environment PAH ...... polycyclic aromatic hydrocarbons PEP ...... Provincial Emergency Program PFLB ...... Productive Forest Land Base PM10 ...... particulate matter with a diameter less than 10 µm PM2.5 ...... particulate matter with a diameter less than 2.5 µm PMRA ...... Pest Management Regulatory Agency PRS ...... Project Report Specifications PY ...... Person-year RfD ...... reference dose RMZ ...... Resource Management Zone ROS ...... Recreation Opportunity Spectrum ROW ...... Right-of-Way RSA ...... Regional Study Area RTD ...... reference toxicity dose SADT ...... Summer Average Daily Traffic SARS ...... Severe Acute Respiratory Syndrome SEIA ...... Socio-economic Impact Assessment SLIM ...... Small Lakes Index Management SO2 ...... sulphur dioxide SRD ...... Special Resource Development SRMP ...... Sustainable Resource Management Plan TDI ...... tolerable daily intake TN ...... Tsilhqot’in Nation TNG ...... Tsilhqot’in National Government TRV ...... toxicity reference value TSA ...... Timber Supply Area

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Acronyms and Abbreviations

TSF ...... Tailings Storage Facility TSP ...... total suspended particulates TSS ...... total suspended solids US EPA ...... United States Environmental Protection Agency USN ...... Upper Secwepemc Nation VC ...... Visitor Centre VEC ...... Valued Environmental Component VER ...... valued ecosystem receptors VOC ...... volatile organic compound VQO ...... Visual Quality Objective WCTA ...... West Chilcotin Tourism Association WHO ...... World Health Organization

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Section 1: Introduction and Summary

1 Introduction and Summary

1.1 Introduction Taseko Mines Limited (“Taseko”) proposes to develop the Prosperity Gold-Copper Project, (the “Project”) a conventional open pit project that would involve a large open pit mine development with a 20 year operating life. Typical large-scale open pit mining equipment and conventional copper porphyry flotation processing would be used. In addition to the mine and associated tailings and waste rock areas, the project includes development of an onsite mill and support infrastructure, an approximately 125 km long power transmission line corridor, and a 2.8 km mine access road. A vital and necessary step in the development of a project of this nature involves the completion of an environmental assessment. Environmental assessment itself is a process whereby the environmental effects of a proposed project are predicted and assessed before decisions to proceed with development of the project are made. The two key purposes of an environmental assessment are to minimize or avoid adverse environmental effects before they occur and to serve as a vehicle whereby environmental factors are incorporated into project design and decisions are made with respect to project implementation. The environmental assessment for the Project began 16 years ago in 1993. This Environmental Impact Statement (“EIS”) has been prepared in response to and in accordance with the Project Report Specifications (“PRS”) issued by the British Columbia Environmental Assessment Office (“EAO”) in 1998 and the more recent EIS Guidelines issued by both the provincial EAO and the federal Minister of the Environment in January of 2009. Both the PRS and the EIS Guidelines were subject to regulatory agency, First Nation and public comment and review before being finalized. This volume, Volume 6: Socio-Economics, Human Health and Ecological Risk Assessment is one of a nine volume series of reports that together constitute Taseko’s Application for an Environmental Assessment Certificate pursuant to the British Columbia Environmental Assessment Act (BCEAA) and an EIS for submission to the Federal Review Panel pursuant to the Canadian Environmental Assessment Act (CEAA). The information contained within the volume is complete and comprehensive on the subjects discussed. In many instances within this particular volume there are linkages to information contained and predictions and assessments undertaken in some of the other eight volumes. Accordingly it is important to appreciate that the reader must take into consideration the content and assessments contained within all nine volumes in order to fully consider the complete environmental assessment undertaken thus far. Many of the nine volumes include either directly or indirectly by way of appendices a considerable volume of information collected by Taseko in support of this EIS. This Volume, Volume 6: Socio-Economics, Human Health and Ecological Risk Assessment considers potential effects of the Project on economic, social, community and health services aspects. Effects of the Project on resource uses including forestry, agriculture and ranching, fishing, hunting, recreation, tourism and trapping are also assessed. Information concerning First Nations cultural heritage including an assessment of Project effects on traditional use is provided. Included in this volume is a human health and ecological risk assessment that considers the potential environmental effects of the

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Section 1: Introduction and Summary

Project on human health and ecological health. A detailed summary of baseline information collected and assessed, key issues, effects assessment, mitigation measures, characterization of any residual project effects, cumulative effects and a discussion of any proposed follow-up monitoring for each of the above mentioned aspects is presented in Section 1.2 below. Volume 1: Summary Report is a stand-alone document describing all the environmental effects of the Project and the proposed environmental management and mitigation measures. The significance of each environmental effect and a statement on the Project’s overall environmental effect is provided. Volume 2: Project Planning and Alternatives Assessment provides a historical account of a four year alternatives assessment process that was undertaken to find the most environmentally responsible, technically and economically achievable project plan. It was concluded at the end of this extensive process that the only technically and economically achievable alternative was the Project Plan that is the subject of this current environmental assessment. A 2008 update of economic information is included. Volume 3: Project Description and Scope of Project contains to a level of detail appropriate for an environmental assessment, Taseko’s information concerning the regional and local geology and the project description. Detailed information concerning the mine plan, the proposed road access and transmission line is included. The volume also details the Acid Rock Drainage/Metal Leaching (ARD/ML) investigations and characterization program undertaken by Taseko and includes details of a proposed Fish Compensation Plan developed as an integral part of the overall Project to compensate for the unavoidable loss of fish and fish habitat in the Fish Creek watershed. Taseko’s proposed Environmental Management Program is outlined in sufficient detail to provide a framework upon which further, permit level details will be added at the appropriate time. This project description reflects the benefits of having undertaken extensive drilling and investigation of the mineral deposit, completion of two engineering feasibility studies and the filing of Instrument 43101 compliant information to regulators. Volume 4: Physical Environment considers potential environmental effects of the Project on the atmospheric, acoustic, surface water hydrology and hydrogeological aspects of the environment. A detailed summary of baseline information collected and assessed, key issues, effects assessment, mitigation measures, characterization of any residual project effects, cumulative effects and a discussion of any proposed follow-up monitoring for each of the above mentioned aspects is provided. Volume 5: Biotic Environment considers potential environmental effects of the Project on stream and lake water and sediment quality, periphyton, zooplankton and benthic invertebrate aquatic ecosystems, fish and fish habitat, terrain and soils, vegetation and wildlife aspects of the environment. A detailed summary of baseline information collected and assessed, key issues, effects assessment, mitigation measures, characterization of any residual project effects, cumulative effects and a discussion of any proposed follow-up monitoring for each of the above mentioned aspects is presented. Volume 7: Archaeological and Heritage Resources includes the results of an extensive Archaeological Impact Assessment (“AIA”) undertaken in the vicinity of the mine site. Archaeological resources within the proposed mine site area are identified and evaluated and the potential effects of the Project on these resources assessed. Recommendations concerning measures to mitigate unavoidable loss of these resources are included. While First Nations representatives were involved in the design and implementation of the AIA,

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regrettably circumstances have not afforded Taseko the opportunity to share the results of this AIA with First Nations before including it in this EIS. Taseko’s understanding concerning the significance of the information reported and how to evaluate will improve with further dialogue with First Nations and the provincial Archaeology Branch. Volume 8: First Nations is intended to be a “stand alone” document drawing upon information found throughout many of the other volumes to provide a single source of information thought to be of interest to First Nations. Included within this volume, in accordance with the terms of the EIS Guidelines, is a historical overview of Taseko’s ongoing efforts to engage and exchange information with First Nations concerning their interests, issues and understanding of the Project. Where available publicly, information concerning First Nations land claims and rights and title matters, their history in the area, traditional knowledge and land use is also included. Volume 9: Additional Requirements Pursuant to CEAA contains a discussion on accidents, malfunctions and unplanned events and the effects of the environment on the Project. Information presented concerning accidents, malfunctions and unplanned events is further discussed in many of the other volumes where these events are assessed and the significance of any potential environmental effects determined.

1.2 Summary This volume contains the information collected and analysis completed by Taseko for which socio-economic, human health and ecological risk effects are predicted and assessed. It also includes discussions of mitigation measures and follow-up actions. Specifically this volume discusses the following VECs:

Economic The Project’s specific and cumulative effects on Economic Issues were assessed for the following KIs: labour market, incomes, government revenues, economic development. This volume describes the expected economic effects at the local and regional scale during construction, operations and closure of Prosperity. The economic effects of the Project are predicted to be beneficial as mine spending stimulates both employment and business development, which in turn generate incremental income streams for government. The economic effects of reduced logging due to Mountain Pine Beetle are expected to interact substantially with similar, but reverse effects from the Prosperity Project. Residents, businesses and First Nations’ members in Williams Lake and the rural areas in the Central Cariboo stand to benefit from the Project. Mitigation is seen as a need to attempt to maximize those benefits regionally, rather than minimizing possible negative effects.

Social The Project’s specific and cumulative effects on social issues were assessed for the following KIs: population, workforce settlement and housing, transportation, community services and First Nations cultural and heritage values. This volume describes how, as with any new economic activity, the mine is expected to create employment, attract new workers into the region, and stimulate population growth as well as the demand for facilities and services typical of the community. This cause-effect relationship is usually perceived as a pre-condition for community prosperity and health. For First Nations cultural heritage values, the predicted residual effects from the Project components’

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potential to disturb traditional use sites and activities are minor. Limited mitigation is recommended to ensure timely planning of housing and community services and transportation upgrades where appropriate.

Community and Health Services The Project’s direct and cumulative effects were assessed for community and health services. This volume predicts that local communities and governments have the capacity to adequately respond in providing the municipal and health services that the increased population due to the mine will require. The Project is expected to offset cumulative effects resulting from future mine closures at Mt. Polley, as well as the decline in the forestry industry due to the Mountain Pine Beetle; therefore, the Project is not expected to have any significant negative effects on the demand for health services in the RSA. For First Nations members employed by the Project, the demand for health services might increase where access is constrained (i.e., on reserves). Follow-up and monitoring of First Nations health mitigation with band health agencies for unintended consequences has been recommended.

Resource Uses The KIs for the assessment of resource uses were: land use objectives; forestry; agriculture and ranching; mining; fishing; hunting; public recreation; tourism; and, trapping. Each of these resource uses have licensed access or general permission to use or harvest a resource on Crown land. This volume predicts slightly negative effects of the Project on Resource Uses which will entail either a direct loss of access to Crown tenure area, or public access at the mine site, or a disruption of access in the vicinity of other mine components. Mitigation for Resource Uses comes under two distinct categories: those measures to address infringement or loss of Crown tenure at the mine site and those mutually agreed-to strategies for ensuring licensees that might be affected by the Project outside the mine site experience minimal effects. The follow-up process recommended is similar for each resource use: discussions with licensees at the mine site and buffer will be concluded prior to the onset of construction.

Human and Ecological Health The key indicator risks considered in this human and ecological health assessment are: chemical risks to human health; and, chemical risks to ecological health. The Human Health and Ecological Risk Assessment Baseline Report attached in the Appendix of this volume illustrates the considerable amount of baseline data that was collected for metals in soil, sediment, water, and vegetation over the past decade at the proposed mine site. The assessment in this volume predicts that air emissions from the Project would be relatively minor at the closest community (Nemiah) to the proposed mine site; that surface water drinking water quality will not be a concern to human health; the potential risk to humans from consumption of vegetation, willow ptarmigan, muskrat and moose would be no different from baseline conditions, even after 19 years of mining activity; and, that the overall potential loading of metals to the Lower Fish Creek and Taseko River will likely not pose a potential risk to humans during the post-closure phase of the mine.

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Navigable Waters For the purposes of assisting Transport Canada evaluate the effects on Navigable Waters, this volume identifies all waterways and water bodies that will be directly affected by components of the proposed Project, and provides information on current and/or historic usage of those waterways and water bodies. In summary, the assessment contained in this volume predicts that, given the proposed mitigation, environmental protection measures and proposed monitoring measures, the effects of the Project on human and ecological health are anticipated to be not significant. Over the intervening years since the Project’s environmental assessment was initiated in 1993, interim findings and consultation with stakeholders informed project design resulting in modifications to minimize negative and maximize positive effects. What negative effects there might be on resource uses and on human and ecological health are localized, small, and can be adequately addressed through mitigation. In conclusion, the potential negative health impacts of the Project are anticipated to be not significant, while the socio-economic impacts are anticipated to be positive, and significantly so.

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Section 2: Economic Issues

2 Economic Issues

The purpose of the assessment, along with the assessment of social issues (Volume 6, Section 3), is to allow an informed evaluation of social and economic benefits associated with development of the Project and its costs.

2.1 Scope of Assessment for Economic Issues The requirement to assess the economic ramifications of the Project was identified in the PRS and the EIS Guidelines. Economic effects generally include effects on labour markets, income, infrastructure capacity, government finances, and economic development at the local and regional levels. Effects are considered for all residents of the local and regional study areas, including First Nations. Economic issues and proposed management measures, as raised by various community interests, are also considered.

2.1.1 Key Economic Issues As discussed in the PRS and the EIS, key economic issues concern employment, income, government finances and regional economic development. The Project is expected to result in economic effects at the local and regional scale during construction, operations and decommissioning (Table 2-1). For the purpose of this scoping exercise, economic effects are assessed at the Project Activities level, not for individual Project physical works and activities. This is because economic cause-effect linkages are attributable to human activity, which occurs throughout all Project phases, and not to individual physical works and activities. The Project will require substantial labour inputs during construction and operations and thus have employment and employment income effects. Various taxes payable to the different levels of government will occur, while at the same time necessitating public and private expenditures related to the Project. Benefits to other industry and the potential for other new investments also may be expected. Table 2-1 also identifies other resource uses in the local economy that may interact with key economic indicators in the absence of the Project. Based on existing economic data for the region, employment, employment income, government expenditures and regional economic development over the next thirty years (i.e., the expected mine life) are not expected to be substantially modified by ongoing resource uses such as ranching, tourism, trapping and gravel production. This is not to say that these resource uses do not now contribute to the regional economy, but rather that incremental changes from the baseline are not expected to be substantial (i.e., ranking of “1”). Logging is expected to change substantially from current levels, owing to the effects of the mountain pine beetle infestation. Harvesting levels are now well above the long term sustainable level due to the harvesting of wood in salvage and prevention operations. Over the next decade, the harvest level will be reduced below current levels, affecting the labour market, incomes, government finances and regional economic development. Accordingly, logging effects on the regional economy are likely to interact substantially with similar effects from the Project.

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Economic effects are, for the most part, assessed on a regional basis and over extended periods of time during which market forces and trends become evident. Even when small area data is available, indicators and measures like labour supply, labour income and capital flows reflect forces and influences that are national and sometimes international in scope. In this context, accidents, malfunctions and unplanned events are seen as temporary occurrences that are highly unlikely to change underlying economic values or related measurable parameters. The Project’s occupation of the land base may have economic implications through the exclusion of alternative uses of the land or resources. This matter is assessed in Volume 6, Section 5 (Effects on Other Resource Uses).

Table 2-1 Interaction of the Project with Economic Issues Project Description Reference for Project Activities/Physical Works Activity Construction and Commissioning 2 Operations 2 Closure 2 Post-closure 1 Interaction of Other Projects and Activities on VSCs Logging 2 Other Resources* 1 Accidents, Malfunctions and Unplanned Events 1 NOTES: 0 = No interaction 1 = Interaction occurs; however, based on past experience and professional judgment, the interaction would not result in a significant economic effect, even without mitigation; or interaction would not be significant due to application of codified environmental protection practices that are known to effectively mitigate the predicted environmental effects 2 = Interaction could result in an economic effect of concern even with mitigation; the potential environmental effects are considered further in environmental assessment * Ranching, tourism, trapping, gravel extraction

Table 2-2 Potential Economic Effects Associated with the Project Labour Income Government Regional Project Activities and Physical Works Demand Levels Finances Economy Construction Camp construction 9 9 9 9 Construction: plant site and other facilities 9 9 9 9 Starter dam construction 9 9 9 9 Construction/Installation of transmission line 9 9 9 9 Operation Pre-production and production 9 9 9 9 Ore processing and dewatering 9 9 9 9 Maintenance and repairs 9 9 9 9 Closure Reclamation of waste rock stockpiles 9 9 9 9 Plant and associated facility removal 9 9 9 9 Transmission line decommissioning 9 9 9 9 March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 2-2 Prosperity Gold-Copper Project

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2.1.2 Selection of Key Indicators and Measureable Parameters Four key indicators initially identified in the Project Report Specifications and confirmed in the Environmental Impact Statement Guidelines were considered in this assessment: • increase in labour demand (direct and indirect effects) • change in income levels • change in government finances (revenues and expenditures) • change in the regional economy Parameters used to measure these indicators in quantitative or qualitative terms are described below and are summarized in Table 2-3.

2.1.2.1 Labour Market This effect pertains to the availability of sufficient persons with the required skills to satisfy the Project’s labour needs during all Project phases. The issue is to what degree this requirement may be drawn from the local and regional populations, including First Nations’ communities. The labour deficit, if there is one, would be eliminated by in- migrants, which, if they become permanent or semi-permanent residents, may have population implications.

2.1.2.2 Incomes This effect involves changes in income levels, often as a result of increased labour demand. Increasing income levels are a surrogate for improved standard of living and relatively higher levels of human welfare. The Project will increase local and regional income by direct employment of persons, and the local purchase of goods and services primarily during the construction and operations phases. This will give rise to induced income. The increment created by the Project will have a substantial economic effect relative to current local income, especially given that most persons would be expected to be employed in the absence of the Project.

2.1.2.3 Government Finances Increased tax revenue, paid by the Project operator to various government levels, would allow for increases to public service levels, or change in the tax burden. The Project Proponent will make various payments to government (e.g., property tax, corporate income tax, mineral tax, and various consumption taxes such as the gas tax or the GST). Project suppliers and direct employees also pay a range of taxes (e.g., corporate income tax, personal income tax). Expenditures may also be incurred by government during all phases of the Project. This may include increased program spending to enhance service levels in the region (e.g., social services, infrastructure capacity, wildlife and management). Effects on government finances were assessed by comparing the increase in expenditures for service levels, existing users, etc. A distinction is made between adding to capacity incrementally, versus major one-time upgrades, relative to the contribution to government revenue from various tax instruments, and the increase in property tax paid by local area residents. If the increase in costs is paid fully by the increased population, then existing residents are not affected.

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2.1.2.4 Regional Economic Development Changes in investment flows to the regional economy may be a consequence of the Project. The issue is whether the Project enhances, reduces or has no effect on the probability of these other investments. For example, highway improvements during Project operations and improved access to the electric grid post-closure may produce a regional economic benefit to other Project developers. The assessment can only address the nature of the potential investment and qualitatively assess the increased probability, since whether the investment actually proceeds is contingent on a wide range of factors external to the Project. The rationale and measurable parameters for each economic effect are summarized in Table 2-3.

Table 2-3 Economic Effects and Measureable Parameters Economic Effect Rationale for Selection Measurable Parameters Baseline Data for EA Change in the • Construction and • Number of positions • Size of labour Labour Market operations will require and occupations force substantial labour inputs required by Project • Composition of • State of local, regional labour force by labour market industry and • Company and occupation contractor(s) hiring • Regional skills practices profile • Indirect and induced • Participation rates employment • Unemployment rate Change in • The combination of • Existing labour • Industry and Incomes labour demand and incomes regional average employment income may • Proposed salaries, incomes affect overall community wages and benefits. • Income trends income levels • Indirect and induced • Sources of employment and community income employment income Change in • The Project will generate • Taxes, royalties and • Local and regional Government incremental tax revenues other government government Finances for all levels of revenues finances government and may • Estimated precipitate expenditures expenditures for capital in the form of or service upgrades infrastructure upgrades and service delivery Change in • The Project is likely to • Changes in economic • Economic Regional contribute to base/dependency dependency Economic diversification of the • Incremental • Major projects Development regional and provincial investments in new inventory economies and either business activity • Major employers directly or indirectly • Expansion of or • Sector forecasts encourage investment in improvements to • Economic other business activities infrastructure development plans

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2.1.3 Temporal Boundaries The temporal boundaries for key economic indicators tend to follow the same pattern, and are most closely associated with the construction and operations phases of the Project. The onset of construction will bring a burst of employment, income and government-related activity which collectively will affect economic development in the region. Economic indicators are expected to decline as construction nears completion, but then increase to a steady state as the mine reaches its peak operating capacity. During the closure and post-closure phases, all direct economic effects are expected to cease rapidly.

2.1.4 Spatial Boundaries The Local Study Area (LSA) includes the area from Williams Lake to the mine site, the rural areas and communities near the mine site (Alexis Creek, Big Creek, Hanceville, and Riske Creek) and the 11 First Nations communities of the Tsilhqot’in Nation and Northern Secwepemc (Figure 2-1). The political boundaries include the City of Williams Lake and areas J, K, D, E and F of the Cariboo Regional District. The Regional Study Area (RSA) is the entire Cariboo Regional District and includes the local area, as well as the remainder of the rural portion of the Cariboo Regional District, Quesnel and 100 Mile House. The “province” includes the local and regional area along with the remainder of the province. The “national” study area includes the first three study areas as well as the remainder of the country. A general description of the Local and Regional Study Area communities including First Nations communities can be found in Appendix 2-A: Description of Communities.

2.1.5 Environmental Effects Rating Criteria for Assessing Effects Significance Project effects on the economy were characterized using seven criteria: direction, magnitude, geographic extent, frequency, duration, reversibility and ecological context. Beside the seven criteria, and where possible, quantitative measures were used to characterize each economic effect. For example, magnitude can often be quantified in terms of the specific number of jobs created or the amount of tax revenue that might be generated by the government. Where quantitative measures could not be used, qualitative categories were used, following the definitions provided in Table 2-4.

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Figure 2-1 Regional and Local Study Areas

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Table 2-4 Residual Effects Criteria for Economic Issues Criterion Criteria Ratings Low Moderate High Magnitude1 Effect is apparent with Effect clearly different Effect exceeds little to no difference from baseline conditions threshold from baseline but remains below conditions defined threshold Reversibility Effect is permanent Effect is not easily Effect is easily (the degree to which the beyond the post- reversible within the reversible economy may recover closure phases Project development and from the effect) operational phases Geographic Extent Effect limited to Project Effect extends to the LSA Effect extends (the physical area where components beyond the LSA the effect occurs) Duration Effects last for a short Effects extend through all Effect continues duration, within a of one or more Project indefinitely particular Project phases Development Phase Frequency Effect occurs once or Effect occurs periodically Effect occurs infrequently in one or more Project frequently Phases throughout all Project Phases Socio-economic context Relatively undeveloped, Small communities, Developed local rural environment with narrow economic base, community and minimum infrastructure, infrastructure and economy with economic base or services typical of rural urban infrastructure population Canada NOTE: 1 Magnitude is often measured in quantitative terms such as the number f jobs, dollar value of increased tax revenue, etc.

2.1.6 Influence of Consultation on the Assessment The original PRS (1998) and the EIS (2009), developed collaboratively by regulators and the Proponent, identified the disciplines to be considered, the key elements and values to be addressed and the overall scope of the environmental and socio-economic effects to be assessed.

2.1.6.1 Working Groups During the initial phase of the Project, several technical working groups were struck to facilitate communication between regulators, the Proponent and their consulting team. An Economic Sub-Group was established and tasked with overseeing a Multiple Accounts Assessment of economically feasible mine options. The Project was deferred before the group became involved in the broader socio-economic effects assessment. In April, 2007, a technical working group meeting was held in Williams Lake to reconstitute the working groups. While a socio-economic working group of five government representatives was proposed, it was never formally established and has not convened to date.

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2.1.6.2 Previous Baseline The partially-completed socio-economic baseline work undertaken prior to 1999 involved the collection of mostly statistics and other factual data. Some context for economic issues and concerns as expressed by the stakeholders contacted was also provided.

2.1.6.3 Recent Consultations Interviews with local economic development officials were conducted in 2007 to scope the assessment and identify potential and significant effects related labour availability and regional economic development. These interviews tended to underline the expected negative effects on the regional economy of the mountain pine beetle and the offsetting effect of the Project.

2.2 Baseline Conditions for Economic Issues

2.2.1 Summary of Previous Work and Gap Analysis Baseline economic data helps establish prevailing conditions and provides benchmarks for identifying incremental effects associated with the Project. Baseline conditions not only include actual current conditions, but also potential future change in absence of the Project. For instance, if the population of key communities is expected to increase or fall due to changing economic conditions such as an expected mine closure or mill opening, this will likely have implications for assessing Project effects (e.g., will the Project add to an expanding labour pool versus offsetting a declining labour pool). The first step in developing an economic baseline for the region was to review the socio- economic data previously assembled prior to the Project being put in abeyance in 1999, and determine what could be used and what needed updating. Previous baseline data consisted of labour supply (1996), average incomes (1996), community economic dependencies (1991), municipal infrastructure programs and general prospects for regional economic development. A number of gaps were identified including an absence of information on government finances. Much of the economic data was also deemed to be out of date.

2.2.2 Approach and Methods for Assessment New baseline information was collected on the economic KIRs expected to be affected by the Project. This involved data requests to government agencies, downloads from government and public agency websites and a review of labour market and economic development studies and reports.

2.2.3 Overview of Baseline Conditions Economic conditions in the RSA are typical of the rural British Columbia economy, with a heavy dependence on activities producing various resource related goods for employment, incomes (family and community) and overall community wealth and stability. More than one third of the RSA and LSA labour forces are engaged in primary or manufacturing activities, versus 21% of the provincial labour force. The regional labour market revolves around these activities and is characterized by high levels of trade and technical workers and lower levels of “white collar” and service industry workers. Unemployment remains well above provincial levels, and among First Nations it is March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 2-8 Prosperity Gold-Copper Project

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considered unacceptably high. Overall, the region is highly dependent on the forest industry. This dependency extends not just to employment and incomes, but to all areas of the economy, including government finances. The Mountain Pine Beetle outbreak and its associated salvage and control programs will be a major factor when forecasting future economic conditions. The Cariboo-Chilcotin is one of the most forest-dependent regions of the province and, while forestry is now buoyed by uplifts in the Crown timber supply as a result of salvage and control logging, future employment declines are inevitable and may result in a fundamental shift in the region’s economic base.

2.3 Project Effects Assessment

2.3.1 Labour Market A detailed labour market analysis, examining the supply and demand for labour and implications of the increment to demand created by construction and operation of the Project is presented in Appendix 2-B: Labour Market Analysis. This analysis is summarized below.

2.3.1.1 Scope of Assessment for Labour Market Construction and operation of the Project will require varying amounts of labour that will be supplied from within the LSA, RSA and beyond. The supply and demand of labour is an important indicator because it directly affects other socio-economic VSCs/KIRs, including population, housing, health services and community services. The supply of labour refers to the number of people in the labour force, and their corresponding skills and occupation characteristics. The demand for labour is reflected in the industry affiliation of the labour force. Both the supply and demand of labour fluctuate over time, in response to changing supply characteristics (e.g., population, skills and age) and demand factors (e.g., changing market demand, changes in technology) such that the labour market is typically in a state of constant adjustment. Large construction projects and mining operations in remote areas will often draw their labour needs from the national and international labour pools. While it may be the case that persons presently living nearby the Project may be available for work, the rest of the labour demand may be drawn for the provincial, national and even international labour markets. The surge in resource development in Western Canada in the last five years was supported by a highly mobile and adaptable labour market. The key issues are the extent to which the LSA and RSA labour markets can satisfy the demands of the Project, and how the demand-supply balance is affected by company policies that mitigate negative effects (i.e., temporary peaks, ultimate shut down). Measurable parameters will include the size of the labour force, its industry affiliations and occupational characteristics, unemployment rates and company policies regarding hiring, training and skills development. Project spending, and spending by employees and contractors, will create addition employment. “Spin-off” employment within the LSA is also estimated. The timing and magnitude of Project expenditures and direct labour requirements is the driving force for changes in the labour market. Most effects will occur and become

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apparent during the construction and operations. Relatively few, if any, effects are expected to occur during pre-construction, closure and post-closure. The spatial boundaries and criteria for characterizing effects are discussed in Sections 2.1.4 and 2.1.5, respectively.

2.3.1.2 Effects Assessment Methodology The number of positions by skill category for the Project was compared to current labour market characteristics in the RSA and LSA to indicate the extent to which the positions are likely to be filled by the resident labour force. Unemployment levels by occupational or trade specialties are indicative of available short-term labour supply. Major employers such as sawmills and mines within the Cariboo-Chilcotin region were studied to determine their recent experiences in fulfilling their labour needs. Once employment effects were determined, other measurable parameters, including indirect and induced employment, were estimated using the local expenditure estimates provided by Taseko, industry experience, and the Ministry of Finance’s employment multipliers for the RSA and the province. Baseline data on the labour market, including labour force profiles (by industry and occupation), unemployment rates (total and by education level) and trends in the regional labour market were obtained from Statistics Canada and Services Canada.

2.3.1.3 Baseline Conditions for Labour Market The LSA labour market is largely integrated into the regional, provincial and national labour markets. It is commonplace today for information on employment opportunities to be broadly disseminated by employers, industry associations, intermediaries and governmental labour agencies through various media, including the Internet, to the extent necessary to satisfy labour needs. This could involve the strategic recruitment of workers, sometimes with an international scope in the case of a highly specialized position. Most non-professional workers are free to relocate and work anywhere in the country such that imbalances in labour supply and demand are transitory. Certain government programs (e.g., Program for Older Worker Adjustment, industry transition programs, re-training programs) are intended to increase the efficiency of the labour market by improving access to information, or providing financial assistance to the temporarily unemployed. Immigrations programs and inter-provincial labour agreements also contribute to labour mobility and labour market efficiency. Incremental labour demand thresholds in the LSA and RSA are only important insofar as they indicate the need for sources of supply from the wider area. They are not a test of significance to indicate if the labour market is under particular stress or there is increasing likelihood of failure. An efficient labour market will compensate for a local labour supply deficit by drawing in new workers or by accommodating temporary and non-resident workers through the implementation of appropriate hiring, work shifts, transportation services and compensation policies by the company. Labour markets are dynamic, with the number of persons in the labour market influenced by long-term trends, such as the age of the work force and education level, to short term fluctuations as persons enter or leave the labour force. Comprehensive data on the local and regional labour force is scarce, and at best provides a snapshot of ever-changing conditions.

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There were 17,685 persons in the LSA labour force in 2001 and 34,375 in the Cariboo Regional District (Appendix 2-B, Table 2-30). The labour force is believed to have grown only modestly in the last six years, in line with population growth. In 2006 there was about 900 First Nations in the LSA labour force that lived on reserve, and about 2600 aboriginal persons in the RSA labour force (Appendix 2-B, Table 2-26). The overall labour supply for the Interior region of the province did not change appreciably between 1995 and 2005. The proportion of the labour force engaged in the production of goods ranged between 35 and 37% for the LSA and RSA respectively, considerably higher than the British Columbia average of 21% (Appendix 2-B, Table 2-23). Similarly, the labour force is much more oriented to manufacturing and primary occupations than the provincial labour force (Appendix 2-B, Table 2-24). The 2001 experienced labour force in the RSA was 2075 for construction and 360 for mining (Statistics Canada 2001). The experienced labour force composed of First Nations persons have a similar profile, with about 35% of the labour force in goods-producing industries (e.g., forestry, agriculture, manufacturing) and the remainder in services (Appendix 2-B, Table 2-25). The working age population has higher participation rates and higher unemployment rates than other regions of British Columbia (Appendix 2-B, Table 2-30). Higher participation rates seem to be correlated with the average age of the workforce, which, in the case of the LSA and RSA, is lower than the provincial average age. The region’s higher unemployment rate may be attributed to relatively greater turnover in the labour force, greater dependence on seasonal occupations and a greater dependence on cyclical resources industries. Although the number of unemployment insurance claims has declined steadily over the last two years, the roster of work-ready claimants continues to be dominated by primary industry workers and trades people (Appendix 2-B, Table 2-31 and Table 2-32). First Nations labour force that is off-reserve in the RSA had a similar participation rate and a slightly higher unemployment rate than exhibited by the RSA labour force as a whole. However, the on-reserve labour force in the LSA is characterized by low participation rates (i.e., 33 to 45% of the working age population was in the labour force as compared to 65% for the LSA and RSA) and about double the unemployment rate on- reserve as compared to the LSA (Appendix 2-B, Table 2-28). Under normal conditions, a positive rate of unemployment will persist in an economy. Even during very robust economic conditions, there are persons in the labour market that are not employed. Person entering the labour market, or changing jobs, are considered unemployed. This minimum rate of unemployment is also dependent on the make-up of the economy. Given the large primary resource base of the RSAs economy, which has seasonal and cyclical peaks and troughs, the minimum unemployment rate would be expected to exceed the average provincial rate. The data appears to support this view. In the last 10 years, the “normal” rate of unemployment in the RSA is in the order of 10% (Figure 2-4). In other words, the pool of unemployment is composed of a large component of persons in transition that may not really be available or inclined to take up employment with the Project. Furthermore, the individuals may not possess the required skills or experience. The low participation rate and relatively high unemployment rates indicated by the First Nations labour force may be characteristic of structural issues, such as less mobile work force (i.e., jobs are not available locally and working age persons are less inclined to go to the jobs) or a mismatch between the job opportunities available and the skills and preferences of the work force.

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This factor makes it difficult to accurately predict the proportion of the Project’s labour needs that will be satisfied by the LSA labour market. Over the next 10–15 years, BC Stats (2006) has estimated that the demand for labour will increase in line with the provincial average (about 2% annually). Health care, construction, and accommodation/food will be high growth industries. Occupations related to primary industries and manufacturing are anticipated to increase below average. In sum, relatively robust demand is expected for construction trades, but many occupational categories related to mining will see lower than average demand.

2.3.1.4 Project Effect of Labour Market on Economic Issues

Project Effects The Project effect on the Labour Market varies with the phase of the Project, both in terms of the number of positions, and the skills required. • The Project will require 905 person-years employment (mine employees and contractors) over a two-year construction period1. This is a major industrial construction project requiring a range of skills. Taseko intends to contract this phase of the Project. The average annual number of persons required is indicated in (Figure 2-2). • As the construction phase winds down, the number of person-years for mine operations will initially ramp up sharply, and continue to increase and stabilize at around 450–490 person years employment between Years 5–11, before declining slowly until operations cease (Figure 2-2). The positions depicted in the figure are Prosperity employees and contractors.

800 700 600 500 400 300

Positions 200 100 0

-100 2 4 6 8 -5 -3 -1 10 12 14 16 18 20 years

Figure 2-2 Annual Average Employment during Mine Life

1 Taseko provided estimates of total payment to labour and total person years employment for the construction period. Payments to local labour and for local goods and materials during construction was also provided. For construction employment, we used the manpower estimates supplied by Taseko. Effects at the LSA and RSA level were scaled to the magnitude of local spending indicted by Taseko. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 2-12 Prosperity Gold-Copper Project

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The Project’s overall labour requirements are summarized in Figure 2-2 and the other statistics are summarized in Table 2-5

Table 2-5 Labour Requirements by Project Phase (person years) Average PYs Peak PYs Duration Construction 378 669 (yr -1) 1 yr Operation 377 (21 yrs.) 488 (yr 9) 1 yr Closure - - -

Relative to the LSA and RSA total labour force, the Project’s average operating labour force is about 2%. While not large in relative terms, the capacity of the local market to satisfy the Project’s requirements depends on the availability of persons with the required skills and experience. This will depend on the market conditions that prevail at the time the Project proceeds. Hence only an indication of the possible effect can be predicted at this time. Service Canada classifies the labour force into 4 skill levels in analyzing the composition of those potentially seeking work (see Appendix 2-B, Table 2-31 for trends and definition of skill categories). Table 2-6 provides an overview of the labour demand and various estimates of LSA’s labour supply for the Project’s operating phase.

Table 2-6 Project Labour Requirements Relative to Measures of Supply at the LSA Level (at Year 4 of Operations) Demand Estimates of Potential Labour Available based on Labour Type Project1 Labour Market2 EI Claimants3 Skill level A 15 25 42 Skill level B 23 60 302 Skill level C 222 60 432 Skill level D 174 55 180 Total 434 199 955 NOTES: 1 Taseko, Estimated Prosperity Manpower Levels–Nov 27, 2007 2 Estimated from LSA labour force (2001). It was assumed that base level of unemployment to be 10%, and this is the increment available if at the time the actual unemployment rate is 12%. That is, the 2% is persons that would be available and hired sooner “with the Project” 3 Average monthly number of claimants for 2005/2006 (Services Canada 2006)

While the number of EI claimants relative to Project requirements suggests that adequate supply may be available, the number of claimants corresponds to a period of historically low rates of unemployment for the LSA. Labour shortages were common for skilled trades during this period. Hence, it might be the case that relatively few of the work- ready claimants would actually be available to the Project, and even fewer with the skills and experience required. For instance, the number of Work Ready truck drivers averaged some 78 persons in 2005 (Table 2-32). Because the conditions of the employment insurance program, many of the individuals may be actually working, but expecting to be without work in the future. This pool also provides flexibility to respond to the changing economic conditions. Project operations (in Year 4) will require about 70 truck drivers. If

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the Project requirements were drawn entirely from the LSA, there would be very few truck drivers to meet the demand by other operations in the LSA. The labour market would respond to this shortage by persons with the necessary skills migrating to the LSA. The expectation is that the provincial and national labour markets may also be accessed to satisfy Project requirements. The Project will result in increased employment among suppliers of goods and services to the mine and its construction contractors (the indirect effect) and increased employment by retailers and personal service businesses serving the mine/contractor labour force both locally and provincially. This will vary from year to year with the number directly employed by the Project. Table 2-7 shows the total employment for average years as a result of the Project during the construction, operating and closure phases. The relatively large number of indirect jobs during construction is based on Taseko’s estimated local purchases of goods and services.

Table 2-7 Average Indirect and Induced Employment Effects Project Phase Direct Indirect Induced Total Employment Employment Employment Employment RSA (Central Cariboo) Construction (average year) 94 124 29 248 Operations (average year 2-20) 354 110 118 582 Closure 10 3 3 16 Total BC (includes RSA) Construction (average year) 378 238 83 699 Operations (average year 2-20) 377 324 290 991 Closure (year 21 +) 10 9 8 26 NOTE: see Appendix 2-B, Table 2-33 for discussion and multiplier values

The year to year variation over the Project’s life is summarized in Figure 2-3. A discussion of the how the employment estimates were prepared is presented in Appendix 2-A, Employment and Employment Multipliers.

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Figure 2-3 Total Employment for the Central Cariboo and British Columbia During the construction phase, business goods and services will be purchased by the construction contractor(s). The extent to which these purchases occur within the LSA will determine the associated indirect employment. Taseko estimates that during the construction period about $32.7 million is purchased locally2. It was assumed that about one third of this cost would accrue to local labour, and based on average wage the local indirect employment was estimated. As construction nears completion, the demand for goods and services will decline and local suppliers will adjust their employment levels accordingly. Similarly, the operations phase will see businesses in the RSA supply a variety of services (e.g., housing, transportation, repair and maintenance, camp services) for which they will need workers. The recent experience of Mt. Polley and Gibraltar mines provides a realistic and reliable estimate of the local capacity for these services. • Induced economic effects will flow from the spending of the construction and mine workforce, and thus will coincide with the economic effects of direct employment by the Project. Construction and mine employees will be making retail and personal service purchases which will require those businesses to raise their employment levels accordingly (or possible maintain employment that might have declined because of cutbacks in the forest sector). As with indirect employment, the induced economic effects in the LSA relate mainly to resident employees, although residual spending by temporary workers while they are in the region will have an induced economic effect as well. • It is noted that the employment estimates are not estimates of “new” employment, but are employment effects. The difference being that the positions may be filled by persons that would otherwise be employed. This matter is also addressed in considering Project implications with respect to change in population.

2 From S. Jones, Capital Distribution and Manpower Reconciliation Excel file. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 2-15 Prosperity Gold-Copper Project

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The above effects are considered for the general labour force and do not account for benefits agreements and other economic measures that might be negotiated with First Nations. The agreement will presumably address the unique challenges implied by the First Nations labour force characteristics.

Mitigation Mitigation for labour market conditions will include: • Hiring policies: Taseko will contract all of the major construction phases to independent construction firms that will meet their own labour requirements. It is expected that local firms and workers will participate within the available capacity, and the residual will be drawn from the larger economy. • Education and Training opportunities: Taseko is developing a program to help qualify residents of the Cariboo-Chilcotin for work at Gibraltar and/or Prosperity over the next 20+ years. • Worker recruitment: Taseko will cooperate with the City of Williams Lake economic development office and the CRD on worker recruitment programs. • Employment policy: Taseko will employ transportation and work shift measures to attract out-of RSA workers needed to meet the labour demand over and above the local and regional capacity. • Procurement policies: Taseko will work closely with local suppliers to ensure equitable access is given to all contract and purchase opportunities. As the Project enters the operations phase, the company will procure goods and services from local and regional businesses, adding to the stability of the region and contributing to the growth potential for the regional economy. It will also cooperate with regional economic development agencies to encourage more local business development and supplier networks. • First Nations: Taseko will continue to offer the people of the Tsilhqot’in and Northern Secwepemc the opportunity to help maximize local employment, training and business development opportunities. Other mitigation measures such as housing will affect labour market behaviour. Further details on the mitigation measures are provided later in Section 2.4.1.

Characterization of Residual Project Effects Total labour demand attributable to the Project will average 699 jobs annually during the construction period and 991 jobs annually during operations. During closure, labour demand will fall to 26 person-years annually. Thirty-five percent of construction period average labour demand (248 person-years) and 59% of operating period average labour demand (582 per-years) will accrue to RSA residents. Operating period labour demand for the RSA represents 1.7% of the total estimated experienced labour force in 2001. Total labour demand is a combination of direct mine employment, indirect employment attributed to mine purchasing and induced employment generated by the spending of the direct and indirect employees. The duration of each of these changes in labour demand is expected to be short-term (i.e., months) as the labour market and business supply sector (responsible for indirect

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employment) adjusts, as it has done in similar past events. For the same reason, all effects are considered reversible.

Cumulative Effects During the construction phase, the Project will compete with other construction projects. No other mines are scheduled to proceed in the LSA/RSA during the time frame. It may be that other mineral properties and mines developed in British Columbia or nationally will compete for labour. Alberta oil sands projects are demanding a similar labour skill profile to the one needed for this Project. On the other hand, several events over the next 10 to 20 years are expected to free up labour and contractor availability. Olympic-related construction projects will have finished by 2009, thereby releasing construction workers into the job market. During the operating life of the mine, Mt. Polley mine is expected to close and workers there could be absorbed into the Project’s operations. Similarly, local businesses supplying that mine would be in a good position to supply the Project. Perhaps most importantly, the mountain pine beetle is expected to trim the labour force that is directly and indirectly involved in timber harvesting and processing, and force workers to seek employment in other sectors of the economy due to the severity and irreversibility of harvest declines.

Determination of Significance The Project will alter labour conditions in the short-term during construction and operations, by increasing demand, lowering unemployment. Any labour that is not available from the local labour market would be satisfied from labour pools outside the region. The supply of appropriately skilled persons for operations may be more substantial than is currently the base because Mt. Polley mine is expected to wind down during the period. In any case, the efficiencies of the labour market at the various scales should lead to a supply demand balance during both the construction and operating phases. With the proposed mitigation measures, the Project effect on direct and indirect employment will be positive and significant.

Confidence in Predictions Given the size and nature of the labour market, and the Proponent’s intention to implement a suite of mitigation measures, the Project’s labour requirements are expected to draw from the RSA labour market and provide a net positive effect. The Gibraltar and Mt. Polley mine projects that are currently operating in the RSA provide reliable benchmarks for labour market effects.

2.3.2 Incomes

2.3.2.1 Scope of Assessment for Incomes Direct employment income is closely linked to labour force effects. The extent to which labour can be sourced locally for construction and operation will determine the level of employment income that will accrue back to the LSA and RSA. In addition to the direct employment income, the re-spending by the construction and operation workforce and Taseko’s purchase of goods and services will generate indirect and induced (spin-off)

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income. The total construction and operation employment income (both direct and spin- off) from the Project will likely be dispersed throughout the province, but will generate noticeable benefits in the LSA and RSA. Measurable parameters include the magnitude of the total expenditures by Taseko during construction and on-going expenditures to operate the mine and support its infrastructure. The amount spent on direct employment income and the re-spending associated with the employee’s spending, as well as the mine’s purchase of goods and services can be measured. The direct income can be measured from mine estimates of its associated payroll expenditures. As well, spin-off employment income can be estimated using provincial multipliers for the local area. The timing and magnitude of the Project expenditures and associated employment income benefits will drive the changes in the overall area income. Income effects will be most apparent during the construction and operation phases. Few effects will occur during preconstruction or post-closure. The spatial boundaries and rating criteria for assessing the significance of effects are discussed in Sections 2.1.4 and 2.1.5, respectively.

2.3.2.2 Effects Assessment Methodology Total direct income from the Project was compared to the total income in the RSA and LSA to indicate the extent to which the new spending will affect local personal income levels. This will serve to demonstrate the extent to which the Project incrementally affects the base line. Direct income is considered in the context of total employment income and total personal income locally. The latter includes income from pension income, transfer payments, and investments. Once direct employment income effects were identified, other measurable parameters including indirect and induced employment income, were estimated. Indirect employment income is an estimate that is associated with the companies spending in the community and derived from their after-tax basic sector share of the local economy3. Induced employment income is a measure of the additional employment income generated in the community because of the spending associated with the direct employment. Indirect and induced (spin-off) effects in the LSA and RSA were estimated using the Ministry of Finance’s economic base multipliers for mining and construction activities.

2.3.2.3 Baseline Conditions for Incomes Total Income by source for the LSA and the RSA and the total province in 2004 are summarized in Appendix 2-C, Table 2-35. Employment income and average income for various local jurisdictions is summarized in Appendix 2-C, Table 2-36 and average employment incomes are reported in Appendix 2-C, Tables 2–37 and 2–38. The total employment income in the LSA for 2004 was $433.1 million or 78.6% of the LSAs total personal income of $550.9 million. The average personal income in the LSA and the RSA in 2004 was about $32,000. At the same time, the employment income for the RSA stood at $1040.3 million. This represented 77.2% of the RSAs total personal

3 BC Ministry of Management Services (January 2004), 2001 Economic Dependencies and Impact Ratios for 63 Local Areas. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 2-18 Prosperity Gold-Copper Project

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income of $1348 million. These income levels are believed to have risen since 2004. Wage inflation is currently running at 3.1% per year in British Columbia and local employment is believed to have risen locally since 2004. Income levels are expected to increase in line with recent growth trends. In British Columbia, employment income is increasing at almost twice the rate of inflation as workers are demanding higher pay compensation as the available labour force tightens and businesses increasingly find themselves required to offer more pay to obtain new workers. This is exacerbated by the decline in the workforce in many key skills categories, as the numbers of workers retiring outpaces the number of new entrees.

2.3.2.4 Project Effect of Income Effects on Economic Issues The income effects of the Project consist of direct, indirect and induced components. Income effects are also closely tied to the employment effects as discussed previously.

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Project Effects Two important periods will affect direct employment income: • The Project will result in an increase in local direct construction employment income within the LSA for a period of approximately 25 months during the construction phase. The direct employment effects during the construction phase will closely track the labour force effects. • During operations, the Project’s annual payroll is expected to be some $32 million, with some $29 million paid locally. Mine closure is planned for 2029 (year 20) at which time the direct employment income will decline to $0.8 million annually. Spin-off income attributed to the Project will arise from two different casual factors: • During the construction phase, business goods and services will be purchased by the construction contractor(s). Following construction, local purchases for operational activities will also take place. The extent to which these purchases occur within the RSA will determine the associated indirect spending. • Induced effects will flow from construction and operations spending associated with the mine workforce. These workers will use their pay cheques to purchase retail and personal services from businesses which will, in turn, increase their employee payrolls accordingly. Coincidently these expenditure implications will drive the spin-off employment discussed previously. The total (entire province) and local area direct employment income is outlined in Table 2-8.

Table 2-8 Average and Peak Direct Employment Income by Project Phase ($ millions/year–$2007) Avg. Employment Peak Employment Income Duration Income RSA Total BC RSA Total BC Pre-construction Construction $7.6 $30.4 $13.4 $53.8 Total of 2.5 years Operation $28.8 $30.6 $37.2 $39.6 Total of 20 years Closure $0.8 $0.8 $0.8 $0.8 NOTE: Wage income represents before-tax disposable income.

The Project will result in increased income among suppliers of goods and services to the mine and its construction contractors, as well as increased employment income among retailers and personal service businesses associated with the mine/contractor spending. Table 2-9 summarizes the total (entire province) and RSA income effects associated with the Project.

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Table 2-9 Average Annual Total Income Effects by Project Phase ($ millions–$2007) Project Phase Direct Income Indirect Income Induced Income Average Annual Total Income RSA Total RSA Total RSA Total RSA Total Construction (2.5 yrs) $7.6 $30.4 $4.3 $8.6 $1.0 $3.0 $13.0 $41.9 Operations (20 yrs) $28.8 $30.6 $3.9 $11.7 $4.1 $10.4 $36.8 $52.7 Closure $0.8 $0.8 $0.1 $0.3 $0.1 $0.3 $1.0 $1.4

It is important to note that these estimated increases in personal income do not take into account economic benefits and associated increases in income that will accrue to First Nations people as a result of the Project.

Mitigation Wages in the mining sector are substantially higher than the average area wage. Employment income derived from the mining sector will be a positive effect and no mitigation is required. As well, mining jobs also generate additional benefits that are not reflected in the immediate wage income; these include pension contributions, dental and medical plans and other employee benefits. Overall, it may be desirable to maximize local employment income from the Project, which would be achieved through mitigation noted in the previous labour market section, that is, local hiring policies, partnership training opportunities, local worker recruitment and flexible employment policies. The Proponent will work closely with local suppliers, including First Nations, to ensure equitable access is given to all contract and purchase opportunities. As the Project enters the operations phase, the company will endeavour to procure goods and services from local and regional businesses.

Characterization of Residual Project Effects Roughly 1.7% of the total RSA labour force will be employed at the mine during an average operating year: the average annual incomes of those workers will be more than twice the average RSA personal income. In aggregate, employment income for the mine workforce during an average operating year ($36.8 million) will represent 2.7% of total RSA income (2004 base). In combination with increased incomes flowing from indirect employment gains, the average annual income in the RSA will be measurably higher than the current average, for the duration of the Project. Due to high average wages, similar effects can be expected during construction, although the magnitude locally will be less due to a lower proportion of resident construction workers. The nature and direction of effects on provincial incomes will be similar, although they will not be measurable to the same extent they are locally. The frequency of income effects is low as there will be two income expansion and contraction events, once around the short construction phase then again during the longer operating phase. The duration coincides with the construction (two years) and operating (20 years) phases. Direct income earned during the Project will also contribute to the retirement income of the work force during operation and extend benefits beyond the operation phase of the Project.

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Cumulative Effects The analysis of effects on direct income already includes an assessment of the cumulative effects on direct income as a result of the Prosperity Project and other existing industries and businesses in the region. What is difficult to predict are how these changes will interact with future and largely unknown developments in the LSA and RSA. At the time of the completion of this assessment, no other mine or major construction projects are scheduled to proceed in the LSA and RSA during the time frame of the Project. However, during the operating life of the mine, the Mt. Polley mine is expected to close, so presumably goods and services suppliers will have an opportunity to maintain their operations in serving the Project.

Determination of Significance The Project will increase direct and indirect income during construction and operations. The increase will be determined by the amount of income and spending captured locally by workers and businesses. Given the substantial spread between mining industry incomes and average incomes in the RSA, overall area incomes can be expected to rise, but when considering the anticipated closure of Mt. Polley the change in total community income may be difficult to discern. With the proposed mitigation measures, the Project effect on direct and indirect income will be positive and significant.

Confidence in Predictions The income implications of the Project can be accurately estimated given our understanding of the labour market and current wages/benefits paid in the mining industry. As noted in the baseline, these tend to be uniformly high across the sector and have regional benchmarks in the income profiles of the Gibraltar and Mt. Polley mines. For these reasons, and in consideration of Taseko’s intentions to maximize local hiring at the mine, we have a high level of confidence in the anticipated RSA income effects.

2.3.3 Government Finances Government revenues and expenditures for the City of Williams Lake and the Cariboo Regional District Electoral Areas are reported in Appendix 2-D: Government Finances.

2.3.3.1 Scope of Assessment for Government Finances Construction and operation of the Project will generate a variety of government revenues. These revenues will accrue to all levels of government including municipal, regional, provincial and federal. Government finance is an important indicator as it often directly supports services that are required from other VSCs/KIS such as health and community services. Government revenues include: • personal taxation from the construction and operations workforce accruing to the province and federal government • fuel taxes, health care premiums/payroll taxes • GST from purchase of goods and services accruing to the federal government

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• PST from purchase of goods with this revenue accruing to the provincial government • property taxes associated with the workforce accommodation accruing to their place of residence within the municipalities and Regional District • mining taxes and corporate taxes that would be paid to the provincial and federal governments • property tax at the mine site which may accrue to the province or Cariboo Regional District or both, depending on the services provided to the mine site The timing and magnitude of the Project expenditures and direct labour requirements will drive the change in government revenues.

2.3.3.2 Effects Assessment Methodology Estimates of government revenue have come from two primary sources. For personal income tax revenues associated with employment from construction, operations, closure and indirect and induced activities, estimates were made using information from the Ministry of Finance. The Ministry of Finance undertakes detailed analysis of tax contributions (provincial, federal, and municipal) by income level and family size for British Columbia tax payers in its annual provincial government revenue forecasting (BC Ministry of Finance 2007). The Ministry’s forecasting includes approximating taxes paid on: provincial income tax, net child benefits, net property tax, sales tax, fuel tax, health care premiums/payroll taxes, federal taxes, and net GST for British Columbia families of various sizes and various incomes. A model of the family characteristics (i.e., family size and income levels) was developed from the characteristics of Taseko’s existing Gibraltar mine labour force. Mining tax, corporate tax and property tax estimates were provided directly by Taseko. GST and PST revenues to government were based on Taseko’s estimates for capital and operating expenditures during the construction and operating phases.

2.3.3.3 Baseline Conditions for Government Finances For the City of Williams Lake the total consolidated revenue from all sources in 2005 was $21.7 million. The key component of this was taxation and grants in lieu which made up $9 million or 42% of all government revenue for the City of Williams Lake in 2005. The sale of services is the second largest source of revenue for Williams Lake with $5.6 million or 26% in 2005. In the Cariboo Regional District, revenue of approximately $21.6 million was collected in 2005. Electoral area and local government requisitions, and grants in lieu make up $14 million or 65% of total revenue while sales of services contribute a further $2.8 million or 13%. Any Project employee who resides in Williams Lake or the rural areas of the CRD will be making contributions to both these sources of local government revenue via their property tax payments and fees for municipal utilities. The majority of government revenues paid by Taseko, its contractors and its workers over the life of the Project will accrue to the provincial and federal government. Table 2-10 shows the total revenues and sources of revenue for both in 2007.

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British Columbia general revenues include revenues collected from natural resources. In the updated provincial fiscal budget for 2006/07 total natural resource revenues are estimated at $4224 million or 11.1% of total provincial revenues. Of this, natural gas royalties represent the largest share of resource revenue at $1392 million; this is followed by forests with $1293 million, and other energy and minerals with $965 million. (BC Ministry of Finance 2007) Once the Project begins operations it will make a noticeable contribution to the energy and minerals component of provincial resource revenue. Finally, in the near future the composition of provincial resource revenues is likely to change appreciably. The province is currently forecasting a decline in energy and minerals resource revenues in their planning for the 2008 to 2010 period. And although the effects of the mountain pine beetle are unclear, it is almost certain the proportion of total provincial resource revenues contributed by the forest sector will decline well below recent levels. Lastly, the October 2008 authorization given to provincial negotiators to include revenue sharing with First Nations on new mining projects will also have a redistribution effect.

Table 2-10 British Columbia and Canada General Government Revenues for 2007 British Columbia Canada ($ millions) Own Source Revenue 29,860 233,915 • Income Taxes 8,847 155,082 • Consumption taxes 8,659 46,507 • Property and Related Taxes 2,799 0 • Other Taxes 814 1,281 • Health and Drug Insurance Premiums 1,484 0 • Contributions to Social Security Plans 1,310 17,068 • Sales of Goods and Services 916 6,507 • Investment Income 4,922 7,124 • Other Revenue from Own Sources 109 346 General Purpose Transfers 1,693 714 Specific Purpose Transfers 4,284 62 Total Revenue 35,837 234,691 SOURCE: Statistics Canada. CANSIM Table 385-002.

2.3.3.4 Project Effect of Government Finances on Economic Issues

Project Effects During construction and operations, major sources of government revenues will be generated by the workforce (personal income tax, consumptions taxes, health care premiums, and property taxes) and by Taseko for consumption taxes related to the purchase of equipment, goods and services. After the start of operations, government revenues will broaden to include property tax at the mine site, mining taxes, and corporate business tax. Table 2-11 shows the average annual government revenues anticipated from direct personal income tax, as well as tax from sourcing materials and services. Specifically

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these include: provincial income tax, net child benefits, net property tax, sales tax, fuel tax, health care premiums/payroll taxes, federal taxes, and net GST. The Project will generate approximately $6.8 million annually in PST and $9.7 million in GST from the purchase of materials and services during the construction 2.5 year construction phase. Operations will also see the continued payment of GST and PST; however, government revenues will expand to include corporate revenues once operations begin. Direct government revenues flowing from corporate, mineral tax, and regional property tax payments Table 2-12. The operating period average revenues to government are more than $30 million, with a peak of $111 million in 2026.

Table 2-11 Average Annual Direct Government Revenue from Payroll and Consumption Taxes ($’000s–$2007) Project Phase Local Provincial Federal Total Duration Construction $212.2 $2,491.8 $5,290.4 $7,994.3 30 months Operations $605.6 $2,861.3 $5,884.9 $9,351.8 20 years Closure $16.1 $76.0 $156.2 $248.3 On-going SOURCE: Taseko 2008 and BC Ministry of Finance.

Table 2-12 Direct Government Revenue from Corporate, Mining and Property Taxes ($’000–$2007) Tax Type 2011 2012–2025 2026 2027–2030 2011–2030 (Year 1) (Annual (Peak Year) (Declining (Period Avg.) Period) Avg.) Fed, & Prov. Corp. Taxes $0 $23,631 $77,786 $13,693 $23,170 Mineral Taxes Payable $735 $4,991 $33,828 $6,546 $6,531 Regional Tax (Property) $1,424 $932 $368 $149 $772 Total $2,158 $29,554 $111,987 $20,388 $30,473 SOURCE: Taseko 2008

The above direct government revenues fosters spin-off activities and government revenues for all levels of government. These include: • During construction and operations, business goods and services will be purchased by the company and contractors for the Project resulting in businesses supplying these products to increase their labour forces. • Induced effects will flow from construction and operations spending associated with the mine workforce. These workers will use their pay cheques to purchase retail and personal services, from businesses which will, in turn, increase their employee payrolls accordingly. The result is government revenues in the form of fuel taxes, GST, PST and personal income taxes. Table 2-13 shows government revenues that are associated with the re-spending effects of workers and the company.

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Table 2-13 Average Annual Indirect and Induced Government Revenue ($’000s– $2007) Project Phase Local Provincial Federal Total Duration Construction $352.5 $409.9 $972.2 $1,734.6 30 months Operations $674.0 $783.7 $1,858.9 $3,316.6 20 years Closure $17.9 $20.8 $38.7 $77.4 On-going SOURCE: Taseko 2008 and BC Ministry of Finance.

Annualized total government revenues anticipated during for construction, operation, and closure is shown in Table 2-14.

Table 2-14 Total Annual Government Revenue ($’000s in $2007) Project Phase Local Provincial Federal Total ($’000 - $2007) Construction (annually over 2.5 years) • Direct $212.20 $2,491.80 $5,290.40 $7,994.30 • GST & PST $0 $6,810.40 $9,729.20 $16,539.60 • Spin-off $352.50 $409.90 $972.20 $1,734.60 Total $564.70 $9,712.10 $15,991.80 $26,268.50 Operation (annually over 20 years) • Direct $605.60 $2,861.30 $5,884.90 $9,351.80 • Direct Corporate $772.00 $14,177.20 $15,523.60 $30,472.80 • GST & PST $0 $929.80 $4,335.00 $5,264.80 • Spin-off $674.00 $783.70 $1,858.90 $3,316.60 Total $2051.60 $18,752.00 $27,602.40 $48,406.00 Closure (on-going) • Direct $16.10 $76.00 $156.20 $248.30 • Spin-off $17.90 $20.80 $38.70 $77.40 Total $34.00 $96.80 $194.90 $325.70 SOURCE: Taseko 2008 and BC Ministry of Finance.

Government revenues predominately flow out of the study area to the provincial and federal government. However, a portion or all of these funds would flow back into the study area through programs and expenditures made by the provincial and federal government. Provincial and federal expenditures in the study area are influenced mainly by population with any increases inducing a proportional increase in government spending.

Mitigation Given the net positive effects of the Project on government revenues, mitigation measures are not contemplated.

Characterization of Residual Project Effects The Project will generate average annual government revenues of $26.2 million during construction and $48.4 million during operations. They slip to $325,700 during closure March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 2-26 Prosperity Gold-Copper Project

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and will remain nominal from thereafter. Although government revenues fluctuate from one year to the next, they are ongoing and continuous. Unlike most other valued environmental components, the effects of government revenues are associated with the province and the country with only property taxes remaining in the RSA. The Project will have a positive and significant effect on government revenues.

Cumulative Effects The analysis of effects on government income already includes an assessment of the cumulative effects on various revenue streams to government associated with the Prosperity Project and other existing industries and businesses in the region. As with income effects, it is difficult to predict how these changes in government revenue will interact with future and largely unknown developments in the LSA and the RSA. However, in general terms, during the operation phase of the Prosperity Project it is anticipated that Mount Polley (current anticipated closure date of 2015) will cease to operate and result in a corresponding decline in the property tax paid to the Regional District (Exploration and Mining in British Columbia 2007; 2008). The Prosperity Project will partially offset the loss of this revenue source. Currently, no other mine or major construction projects have been proposed in the LSA and RSA during the time frame of the Prosperity Project.

Determination of Significance The Project will be a major industrial development locally, provincially and nationally. Employment estimates alone will mean it will be one the larger operating mines in the province. At a time when other mines in the province are scheduled to close, the Project will likely assume a sizeable share of total government revenues by the entire mining industry. In terms of its contribution to provincial economic growth, it will be on a par with the 2010 Olympics Games and exceed the entire film and television industry and be three times larger than the fishing industry. Any single project large enough to have a measurable effect on growth of an economy and government revenues is significant.

Confidence in Predictions Government revenues are the product of Project spending and various well understood tax formulas, with little discretionary variability. The local, regional, provincial and national effects are readily demonstrated by the two existing mines in the RSA and aggregated tax data annually compiled by the industry. For these reasons, and knowing that Project costs would, if anything, be under rather than over-estimated, we have a high degree of confidence in our predictions on government revenues.

Follow-up and Monitoring None anticipated.

2.3.4 Regional Economic Development A review of existing community economic dependencies, major employers, major projects, current planning and future economic development opportunities is presented in Appendix 2-E: Regional Economic Development.

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2.3.4.1 Scope of Assessment for Regional Economic Development Major industrial projects can generate economic benefits to the regional and provincial economies above and beyond the employment, employment income and government revenue benefits discussed in the preceding sections. These benefits can take many forms but are termed here as regional economic development. The underlying effect to be expected is the inducement of new investment inflows, both private and public, beyond that of the Project itself. In the context of the Cariboo-Chilcotin, this is an important consideration given the future economic uncertainty in forestry (due to the MPB) and mining (due to the expected mine closure at Mt. Polley). Examples of parameters that could be positively influenced by the Project include: • diversification of the economic base (dependencies) by the Project itself • diversification through the processing or value-added production of the Project’s primary outputs (e.g., smelting or refining of ore) • new companies spun off by the mine operator to commercialize core competencies, innovations or new technologies • creation, expansion and attraction of companies that will supply the mine with goods and services (including First Nations band and private companies) • new industrial development capacity enabled by infrastructure investments, for example, in the form or roads or utility services As with employment and employment income, regional economic development benefits will be greatest when construction and operating activity, and their related spending cycles, peak. Existing suppliers will expand their operations, perhaps setting up new premises, and non-local suppliers could be encouraged to set up shop locally to supply the mine. Some long-lasting effects are possible post-closure if investment activity is the result of infrastructure upgrades (e.g., improved roads or electricity service). The spatial boundaries and rating criteria for assessing the significance of effects are discussed in Sections 2.1.4 and 2.1.5, respectively.

2.3.4.2 Effects Assessment Methodology Economic development effects are difficult to isolate because they are invariably cumulative in nature; that is, they are manifested and perhaps magnified when viewed from the perspective of the whole economy. For example, the existence of the Project in combination with other resource projects may lead to a critical mass of local purchasing that induces the creation or expansion of a new local supplier. Perhaps, this fictitious supplier would not evolve if the Project itself were the only purchaser in the region. Given this challenge, the effects assessment for economic development looked at comparable projects both within the region and in nearby regions to provide an indication of how the measurable parameters might change. Community economic dependency data from the Ministry of Finance was used to illustrate how the Project will affect the economic base. The business and economic development directly associated with Project activities can be reasonably predicted based on the experience of other mines and their respective mitigation strategies or local business/purchasing policies. Effects attributable to new infrastructure were less certain, but were described by reviewing similar projects elsewhere.

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2.3.4.3 Baseline Conditions for Regional Economic Development For the three census periods ending in 2001, the BC Ministry of Management Services has compiled what is commonly referred to as economic dependency data for 63 local areas in British Columbia. The resulting total community income, which accounts for employment, income and spin-off effects, is allocated to major economic base sectors and, as such, provides an informative description of the sources of economic wealth. The RSA, consisting of the Williams Lake and Quesnel local areas, are among the most forest dependent in the province. This dependency increased between 1991 and 2001, and has likely continued through to 2006 given the uplifts in the pine beetle timber harvest over that period. The public sector is the second largest economic contributor to local incomes. In both the LSA and RSA, the public sector increased its proportion of total community income between 1991 and 2001, although we would expect this share to have declined since 2001 with provincial government office consolidation and school closures. Among First Nations the public sector is the biggest employer and contributor to community income. Tourism, agriculture and mining contributed a relatively small proportion of the total community income between 1991 and 2001. Since then mining has expanded its share in the Williams Lake local area due to the re-opening of the Gibraltar (2004) and Mt. Polley (2005) mines. The major employers in the RSA are reflective of the economic dependency data. Nine of the 18 largest employers are forest companies, while another five are public sector employers. The two operating mines are also in the top 18. Agriculture and tourism firms are not represented because they are primarily small business enterprises. Eight major development projects are underway or planned in the RSA over the next few years (none in the LSA). A total of $365 million is earmarked for wood-related projects, mainly in Quesnel, to deal with MPB dead wood. A coal plant and gasification plant and the Bonanza Ledge gold project are also planned for the Quesnel area. The estimated $40 million Hills Health Ranch Expansion is still in the planning stages, but would represent a substantial enhancement of the South Cariboo as a visitor destination. The TNG has partnered to build and operate a proposed 60 megawatt biomass-fired, thermal electric power generating plant near Hanceville. Looking ahead, in the medium-term (i.e., next 10 years), the RSA economy is likely to retain its forest dependency as the MPB epidemic peaks and subsides. How industry adapts to changes in the post-beetle wood supply is subject to a great deal of speculation, but given the historical reliance of local forest companies on commodity production and the lack of value-added activity, a reduced role in the future economic base may be reasonably anticipated. In the long-term, a “diversification” of the economic base will result from the expected decline in forestry, but it is not clear where new sources of wealth will come from. Jobs and community income will have to be created in the key tourism, agriculture, mining and manufacturing sectors if community stability and wealth are to be maintained. The CRD, municipalities and First Nations have all produced detailed economic development studies to this end, and are taking steps to attract the infrastructure, investment and business capacity to encourage implementation.

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2.3.4.4 Project Effect of Regional Economic Development on Economic Issues

Project Effects The Project will help diversify the economic base of the LSA and the RSA during the construction and operating phases. It will strengthen economic development performance by creating new opportunities for contractors and companies supplying goods and services to construction contractors and the mine when it is in operation. According to economic development officers in Quesnel and Williams Lake, the economic benefits of the existing mines have outweighed any perceived negative economic effects (Madrigga; Savage, pers. comm. 2007). Williams Lake is likely to be the major beneficiary because as the service centre for the Cariboo, and its supplier and contractor base is equipped to serve the mine. First Nations’ capacity to supply the mine is currently low but could be improved through a strategic benefits agreement. Companies in the South Cariboo and the Quesnel area will have equal opportunity to provide contract services. The extent of economic development benefits are unknown at this time because they depend on general economic conditions, the investment climate and the competitiveness of local suppliers. Over the last three operating years at the Gibraltar Mine, about 20% of all mine operating purchases have been made with suppliers in the Williams Lake area (16%) or the Cariboo Regional District (4%). Annual purchases vary but are currently in the $80 to $90 million range, $16 to $18 million of which goes to suppliers in the RSA. At Highland Valley Copper in Logan Lake, spending within local communities is approximately 35% of annual purchases (Peak Solutions Consulting 2003). This higher percentage is reflective of Kamloops’ historical roots as a centre for mineral exploration and proximity to operating mines. The estimated expenditures and share of local purchasing going to local businesses by the Project during construction is shown in Table 2-15. Companies in the RSA are expected to supply $55 million annually in goods and supplies over the 2.5 year period. This spending will be distributed to between numerous construction, contracting, supply and service companies, mostly in the Williams Lake area and among First Nations. The employment effects of this business activity are quantified in the labour market section as indirect labour.

Table 2-15 Estimated Goods and Services Purchases in the RSA during Construction Local Local Commodity Local Materials Labour Materials Site preparation 108,596 Culverts, fencing 3,105,163 Local earthworks 174,945 Aggregate 421,189 Concrete work 1,014,508 50% of concrete costs 10,145,077 Steel work 844,040 0 Siding and roofing 128,533 All from Williams Lake except heavy doors 839,100 Architectural 77,396 Paint and furniture 250,000 Manufactured buildings 705,416 0 HVAC 66,555 0 Transmission lines 414,000 0 Taseko scope 1,932,384 Engineered fill 59,966

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Table 2-15 Estimated Goods and Services Purchases in the RSA during Construction (cont’d) Local Local Commodity Local Materials Labour Materials Mechanical equipment 3,201,733 3% for delivery, handling and various 3,898,140 Small mobile equipment and spares of main Mobile equipment 1,864,811 equipment 7,257,115 Operations 1,733,739 0 Process piping 2,504,040 5% for local fabrication and supply of various 346,807 Mechanical platework 477,295 0 Pipelines and buried services 162,376 0 Tailings and water management 405,025 0 Electrical 2,193,534 10% of cables 134,926 Instrumentation 396,080 3% allowance for minor supplies etc. 152,166 Communications 980 0 Indirect field costs 3,418,231 Diesel, cleaning materials etc. 6,086,027 21,824,217 32,695,676 TOTAL 54,519,894 SOURCE: Taseko 2008.

Based on the local purchases made at Gibraltar, and recognizing that Prosperity will be a larger capacity facility with a workforce 25% larger than Gibraltar, total purchases are estimated to be in the range of $100 to $112 million annually. Twenty to $22 million of that would go to suppliers and businesses in the RSA. During operations, a Contracts Register will be organized to include major service that can be sourced locally. The most likely candidates include: • trucking and other transportation • other transportation (air, rail) • consulting services • hospitality and travel services • medical services • services to employees • road and tire services • equipment supplies and maintenance • communications • human resource and employment services These effects may be manifested in several forms, including the expansion of existing businesses, the creation of new businesses or the attraction of outside businesses into the region.

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As the mine reaches peak operating capacity and enters a long period of steady operations, other economic development benefits may arise either from the placement of new infrastructure or through value-added activities, but these events are difficult to project with any accuracy because they depend on a complex set of interacting variables. For example, Tech Cominco has investigated the refining of concentrate into commercial copper product form at its Highland Valley operations. The Town of Logan Lake is exploring attracting new industries into the community to take advantage of the hydro grid, road network and other infrastructure put in place by the mine once it is closed. At Prosperity, it is possible that new economic activity attributable to the transmission line, improved roads or value-added production could emerge, during or after the mine operating phase.

Mitigation It is the philosophy of Taseko that working in a positive and responsible manner with all local communities will provide maximum mutual benefit. In the procurement of goods and services to build and operate the mine, decisions will be guided by the desire to deliver maximum economic value and social benefit, locally, regionally and provincially. To facilitate the participation of local businesses and individuals in contracting for the Project, and in addition to mitigation policies already outlined in the labour market section, Taseko will: • consider local and regional capabilities when defining contract scope, so as to provide opportunities accessible to local and regional contractors • include local contractors and suppliers in its corporate database • expect suppliers and contractors to share the company’s commitment to investing in local community success through their respective purchasing, hiring, sub-contracting and logistical support practices • work with local and regional economic development offices as appropriate

Characterization of Residual Project Effects With mitigation, the Project will result in an increase in business supply and contract opportunities for local companies during construction and operations of the mine. An estimated $20 to $22 million will be contracted regionally during the construction and operation phases. The opportunities will be short-term in nature during the construction period, but longer lasting and greater during operations because local suppliers will have time to adjust to purchasing policies, expected levels of service and competition from outside suppliers. First Nations’ businesses will have equal opportunity to take contracts. Once the mine closes, these opportunities will obviously decline, but then could be replaced by new uses of infrastructure, as well as ongoing services related to site and facility maintenance, post-closure. Overall, the Project will have a positive and significant effect on regional economic development.

Cumulative Effects For regional economic development, residual and cumulative effects are considered one and the same because the context is the entire regional economy which by definition

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includes all investment flows and economic activity. The availability of local suppliers is largely determined by supply opportunities in the entire regional economy and not just the Project itself. Thus, we would expect the Project to benefit local suppliers who, for example, also supply the forestry, agriculture and transportation sectors. The more diversified the customer base, the more likely suppliers are to grow, diversify strengthen internal capacity. As with other socio-economic factors, the Project may well offset lost contract and supply opportunities due to downturn in economic activity resulting from the MPB. Suppliers and contractors now dependent on the forest industry will have the opportunity to maintain their staff and operations by shifting their services to the mine.

Determination of Significance The Prosperity mine will represent one of the largest industrial projects ever undertaken in the Cariboo. Its construction and operating phases will create considerable wealth and business opportunities for local companies. Between 1991 and 2001, when the mining industry activity declined in both the Williams Lake and Quesnel areas, there was a noticeable shift in total community income and the economic base (see Appendix 2-E, Table 2-42). We believe that the re-opening of the two operating mines, in combination with a surge in exploration and development activity, will push up the contributions of this sector and help offset expected future declines in forestry. With the proposed mitigation measures, the Project will make a significant and positive contribution to the diversification of the regional economy. When considering the probable decline of the forest sector because of the mountain pine beetle, this diversification will be even more important to local and regional communities.

Confidence in Predictions Assumptions on construction and operating expenditures, as well as the proportion going to local companies, carry a high degree of confidence based on the experience of other similar projects both inside and outside the RSA. Economic development that may result from new infrastructure capacity is less certain because it is dependent on numerous internal and external variables unrelated to the Project and outside the influence of mitigation measures.

Follow-up and Monitoring In cooperation with local economic development offices, monitor for compliance to local hiring, contracting and procurement targets.

2.4 Summary of Effects on Economic Issues The Project’s specific and cumulative effects on Economic Issues were assessed for the following: • labour market • incomes • government revenues • economic development

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The Project is expected to result in economic effects at the local and regional scale during construction, operations and closure owing to capital and operating expenditures on labour, materials, equipment, supplies and services. The demand for labour will be substantial during construction and operations and thus drive employment and employment income effects. Various taxes payable to the different levels of government will occur. Benefits to suppliers and contractors can be expected as the mine purchases goods and services on an ongoing basis. Based on existing economic data for the region, employment, employment income, government expenditures and regional economic development over the next 30 years (i.e., the expected mine life) are not expected to be substantially changed by baseline resource uses such as ranching, tourism, trapping and gravel production. However, logging is expected to change substantially from current levels, owing to the effects of the mountain pine beetle infestation. As harvest levels are reduced below current levels (sometime early in the next decade) the labour market, incomes, government finances and regional economic development will all be adversely affected. Accordingly, the economic effects of logging are likely to interact substantially with similar effects from the Project, though in the reverse.

2.4.1 Summary of Mitigation for Economic Issues The economic effects of the Project will be beneficial as mine spending stimulates both employment and business development, which in turn generate incremental income streams for government. From this perspective, mitigation should be seen as an attempt to maximize those benefits regionally, rather than minimizing possible negative effects. Given that incomes and government revenues are derivative effects of Project spending, employment, business development and company profitability, it is in the areas of labour and economic development that mitigation strategies are targeted. Residents, businesses and First Nations’ members in Williams Lake and the rural areas in the Central Cariboo stand to benefit from the Project, but the extent of these benefits could be constrained by labour market conditions, including the lack of training capacity, poor participation rates, mismatches between local skill levels and employment demand at the mine, and the like. On the business front, small businesses and contractors in the RSA may not be in a good position to respond to procurement activities of the mine, perhaps because of their own capacity concerns or a lack of familiarity with competitive bidding practices. Maximizing local economic benefits will involve working with local economic development agencies, municipalities, First Nations’ community and human resource organizations responsible for labour-related issues to ensure that the hiring, training, procurement and business development policies of the mine given full opportunity and encouragement to the resident work force and business base.

2.4.2 Summary of Residual Project and Cumulative Effects for Economic Issues The effects of the Project on Economic Issues will derive from the incremental spending on goods and services of the mine, employment generate therein and the incomes and government revenues that derive from these primary effects. Increases in all measures, including employment, employment income, tax revenues and local economic development are anticipated. This will occur once constructions starts and continue through to the end of operations and the closure phase. Peak activity will occur somewhere around year 2021 and although there will be a gradual falloff in employment March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 2-34 Prosperity Gold-Copper Project

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and employment income thereafter, these still represent an incremental gain to the economy when compared to the current situation in the RSA. The competitiveness of the RSA labour market and business community will determine the extent to which regional benefits are maximized. Where there is “leakage” in spending and hiring to outside communities, the benefits remain the same for the provincial and federal economies. At this time, there are no reasonably foreseeable planned projects or developments within the RLSA and thus a low likelihood of potential effect overlaps with the Project. The MPB epidemic is expected to lead to future mill closures and expected employment loss, although the exact extent and timing of this loss is still unclear. The contribution of the Project will be to offset this change during the construction and operating period. In this context, positive cumulative effects on Economic Issues are expected from the Project.

2.4.3 Follow-up and Monitoring for Economic Issues None.

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Table 2-16 Summary of Project Residual Environmental Effects: VEC Residual Environmental Effects Characteristics

Proposed Potential Residual Recommended Follow-up Mitigation/Compensation Environmental Effects and Monitoring Measures Likelihood Likelihood Significance Significance Context Context Direction Direction Magnitude Magnitude Reversibility Environmental Prediction Confidence Prediction Confidence Geographic Extent Extent Geographic Duration/Frequency Duration/Frequency Labour Market–Total labour demand will average close to 700 person-years during construction and 1000 person-years during operations. Annual labour supply from the RSA will average 248 person-years during construction and 588 person-years during operations. The local and provincial labour markets will adjust to this demand. The boost in regional employment will help offset future expected declines in forestry employment. Construction and Maximize regional None I M P ST R D Commissioning employment through local Operation hiring, recruitment and I H P MT R D S H H Decommissioning training policy and I L L ST R D Residual economic programs I M P MT R D effects for all Phases Incomes–Average wages and benefits for construction and mine jobs are considerably higher than average provincial or regional personal incomes. Average wages among many supply businesses (trades, professionals, specialized services) also are above the average wage. The direct and indirect employment impacts will induce an overall increase in total community income and average incomes for the region. Construction and None None I M P ST R D Commissioning Operation I H P MT R D S H H Decommissioning I L L ST R D Residual economic I M P MT R D effects for all Phases Government Revenues–Local government, provincial and federal government revenues will increase as a result of the Project. The province will benefit from increased income, PST and mining taxes, while the federal government will benefit from income, GST and corporate taxes. The gains in property taxes for local government will be modest but consistent throughout the Project.

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Table 2-16 Summary of Project Residual Environmental Effects: VEC (cont’d) Residual Environmental Effects Characteristics

Proposed Potential Residual Recommended Follow-up Mitigation/Compensation Environmental Effects and Monitoring Measures Likelihood Likelihood Significance Significance Context Context Direction Direction Magnitude Magnitude Reversibility Environmental Prediction Confidence Prediction Confidence Geographic Extent Extent Geographic Duration/Frequency Duration/Frequency Construction and None None I M F ST R D Commissioning Operation I H F MT R D S H H Decommissioning I L F ST R D Residual economic I M F MT R D effects for all Phases Economic Development - The Project will result in an increase in business supply and contract opportunities for local companies during construction and operations of the mine, roughly $20 million annually during construction and operations. This spending should stimulate the small business support sector in Williams Lake, and to a lesser extent the remainder of the Cariboo Regional District. First Nations’ businesses will attract a share of this activity. Given the impending decline of logging and forest manufacturing jobs in the Cariboo, the economic development benefits to the LSA and RSA are expected to be significant. Construction and Maximize regional None I M P ST R D Commissioning contracting and supply Operation opportunities through I M R MT R D flexible procurement policy Decommissioning I M R ST R D S M M and by working with Residual economic communities on I M R MT R D effects for all Phases encouraging business capacity KEY

Direction: Geographic Extent: Reversibility: Prediction Confidence: I Increase L Local: Williams Lake and rural areas R Reversible Based on scientific information and statistical D Decrease around the mine. I Irreversible analysis, professional judgment and Nu Neutral R Regional: Cariboo Regional District effectiveness of mitigation P Provincial. Socio-Economic Context: L Low level of confidence Magnitude: F Federal. U Undisturbed: Area relatively or M Moderate level of confidence

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Residual Environmental Effects Characteristics

Proposed Potential Residual Recommended Follow-up Mitigation/Compensation Environmental Effects and Monitoring Measures Likelihood Likelihood Significance Significance Context Context Direction Direction Magnitude Magnitude Reversibility Environmental Prediction Confidence Prediction Confidence Geographic Extent Extent Geographic Duration/Frequency Duration/Frequency L Low: the effect is such that it cannot not adversely affected by human H High level of confidence be distinguished from normal base case Duration: activity variations ST Short term: the effect does not last long D Developed: communities and Likelihood: M Moderate: the effect will result in a enough to change measurable benchmarks rural areas have a history of Based on professional judgment demonstrable change in employment, (e.g., average incomes). settlement activity, services and L Low probability of occurrence income or tax measures, but still remain LT Long term: the effect lasts long enough infrastructure. M Medium probability of occurrence within recent historic norms. to change benchmarks. H High probability of occurrence H High: the effect results in changes N/A Not Applicable that are beyond historic norms. Cumulative Effects Frequency: Significance: Y Potential for effect to interact with other S Occurs sporadically at irregular S Significant past, present or foreseeable projects or intervals. N Not Significant activities in RSA C Continuous. N Effect will not or is not likely to interact with other past, present or foreseeable projects or activities in RSA

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Appendix 2-A Description of Communities

A.1 Description of Communities The Cariboo Regional District (CRD), with a 2006 population of approximately 70,850, covers an area of 8,252,300 ha and encompasses both the local and regional study areas. The CRD includes the municipalities of Williams Lake, Quesnel, 100 Mile House, Wells and the surrounding rural areas of the Cariboo-Chilcotin. The CRD provides a variety of services to the unincorporated areas in the district including planning, building inspection, airports, house numbering, weed control, by-law enforcement, fire protection, sewer, water and solid waste management. The CRD is governed by a Board of Directors comprised of 12 Electoral Area directors elected by rural voters and three Municipal Directors who are appointed by their municipality.

A.1.1 Williams Lake Williams Lake, with a 2006 population of 11,960 is located 287 km north of Kamloops and 225 km south of Prince George. The community, with a trading area population of approximately 44,800 is the main service center for the Cariboo-Chilcotin. Highway 97 provides access to the community from the north and south, while Highway 20 provides access west to Hanceville and the turn-off to the mine and, ultimately, to Bella Coola. Although the economy of Williams Lake is more diverse than that of other areas of the Chilcotin as a result of its location and its role as a regional service center, the community is still highly reliant on the forestry sector. The service sector, government services (administration, health, education), tourism and agriculture are also important to the city. With the restarting of Gibraltar and Mount Polley metal mines in 2004 and 2005, mining is enjoying a resurgence locally. Currently forestry is enjoying an increase in activity as the industry attempts to utilize the large volume of pine beetle killed wood in the area. This will eventually lead to a downturn in the local forest sector when the areas’ Annual Allowable Cut (AAC) is required to decline; this decline is currently projected to begin sometime after 2012. As the supply and service center for the Cariboo-Chilcotin, Williams Lake is home to a wide range of commercial and industrial ventures supplying the resource industries, tourism and other businesses in the area. Currently several major retail chains are looking at establishing in Williams Lake and there is considerable retail investment taking place.

A.1.2 Alexis Creek Alexis Creek, with a population of approximately 250, is located on Highway 20, 118 km west of Williams Lake, 23 km west of Hanceville and approximately 80 km northwest of the Prosperity mine site. The community services the surrounding area with a RCMP station, a Red Cross outpost hospital, BC Forest Service office, ambulance, conservation officers, circuit court, highway maintenance, school, post office, store and gas station. The area relies on the agriculture, forestry and government service sectors for a substantial portion of its employment and economic activity. The main employer in the community is the Ministry of Forests District Office. Although the community does provide basic services to its residents and the surrounding area, the population of the March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 2-39 Prosperity Gold-Copper Project

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catchment area limits the scope and variety of the services and, as a result, most residents travel to Williams Lake for goods and services.

A.1.3 Rural Chilcotin With the exception of Alexis Creek and First Nation’s communities, the area between Williams Lake and the area west of Alexis Creek consists of large tracts of open land, individual rural residences and grouping of rural residences and properties (e.g., Big Creek, Riske Creek). Most land in the rural Chilcotin is Crown Land. However, there are pockets of private land available for purchase or development. Historically, the population of the Chilcotin has been fairly stable. The Chilcotin has a larger proportion of aboriginal people than does the CRD or province as a whole. Riske Creek is a small community of approximately 180 people located 58 km west of Williams Lake. From Riske Creek, traffic can continue west along Highway 20 or turn south and travel 19 km south to reach the Farwell Canyon. Big Creek is located 41 km west of Farwell Canyon. This small community is made up of rural acreages and ranch properties and can be accessed from both Hanceville and Riske Creek. Hanceville (Lees Corner) is located along Highway 20 approximately 90 km west of Williams Lake at the turnoff to the mine. Hanceville has a population of approximately 70 people and is the location of a restaurant and gas station. Although certain goods and services can be obtained in Alexis Creek, Hanceville and Riske Creek, most residents of the rural Chilcotin access the majority of their services in Williams Lake. The economy of the Chilcotin is dependent on agriculture, forestry and tourism.

A.1.4 Quesnel The City of Quesnel is located 120 km north of Williams Lake and 115 km south of Prince George at the confluence of the Fraser and Quesnel Rivers. Quesnel’s population in 2006 was estimated at 10,560. Highway 97 provides access north and south of the community, while a series of rural and secondary roads provides access east and west to the smaller communities and rural areas surrounding the City. As with other Cariboo communities, Quesnel is highly reliant on the resource sector, primarily forestry, for employment and income. However, Quesnel with its pulp mill and sawmilling wood processing sector has one of the highest forest dependencies in the province. Including the City itself and surrounding areas (as defined by the Quesnel School District), Quesnel serves as a regional centre for an estimated 26,500 residents, an area often referred to as North Cariboo.

A.1.5 100 Mile House 100 Mile House, with a 2006 population of approximately 1830, is located along Highway 97, approximately 75 km north of Clinton and 90 km south of Williams Lake. Highway 97 provides access north and south of the community, while a series of roads provides access east and west from 100 Mile House to smaller communities in the area. As with other Cariboo communities, 100 Mile House is highly reliant on the resource sector, primarily forestry, for employment and income.

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A.1.6 First Nations Table 2-17 outlines information on the RSA Bands, the location of their Band offices, main inhabited reserves, tribal council affiliation and the Community Well Being index (CWB). The CWB index is a product of Indian and Northern Affairs Canada's Research and Analysis Directorate. It is derived from the 2006 Census and combines indications of income, education, labour force activity, and housing conditions into a single number or "CWB" score. CWB scores may fall anywhere between 0 and 100, with 100 being the highest. BC Average First Nations’ score is 70, while the CWB scores among RSA Bands range from a low of 53 to a high of 75. Reserves closer to urban areas tend to have higher CWB scores compared to more remote communities.

Table 2-17 First Nations in the RSA Band Office Main Inhabited Tribal Council Affiliation CWB Reserves Score ?Esdilagh Quesnel Alexandria 1A, 3A Tsilhqot’in National Govt. n/a Tl'etinqox-t’ Alexis Creek Anahim’s Flat 1 Tsilhqot’in National Govt. 53

Tsi Del Del Chilanko Forks Redstone Flat 1 Tsilhqot’in National Govt. 53 Xeni Gwet'in Nemiah Valley Chilco Lake 1A Tsilhqot’in National Govt. 61 Yunesit’in Hanceville Stone 1 Tsilhqot’in National Govt. 61 Tl’esqox Riske Creek Toosey 1 Carrier Chilcotin TC 59 T’exelcemc Williams Lake Williams Lake 1 Northern Shuswap TC 75 Xat’sull Soda Creek Soda Creek 1 Northern Shuswap TC 70 Stswecem’c Dog Creek Dog Creek 1 Northern Shuswap TC 66 Esketemc Williams Lake Alkali Lake 1 Independent 68 Llenlleney’ten Clinton none Independent n/a SOURCE: British Columbia First Nations 2006.

Table 2-18 highlights the on reserve infrastructure available on the key reserves for each of the RSA communities in 2008.

Table 2-18 On-reserve Infrastructure, 2008

Admin. Health School Police Rec. Heat Garbage/ Fire Internet Office Centre Detach Centre Hydro Sewage Hall ment Water Fac. Util Tsilhqot’in Nation ?Esdilagh (Alexandria) - - - - - 9 9 9 No Tsi Del Del (Alexis Creek) 9 9 9 9 9 9 9 9 Dial -up Tl'etinqox-t' Govt. 9 9 9 9 9 9 9 9 Dial-up (Anahim) Yunesit’in (Stone) 9 9 9 9 9 9 9 9 Dial-up Xeni Gwet'in (Nemiah) - 9 - - 9 - - - High Sp Tl’esqox (Toosey) 9 9 - - - 9 - - Dial-up

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Table 2-18 On-reserve Infrastructure, 2008 (cont’d)

Admin. Health School Police Rec. Heat Garbage/ Fire Internet Office Centre Detach Centre Hydro Sewage Hall ment Water Fac. Util Upper Secwepemc Stswecem’c/Xgat’tem 9 9 9 9 9 9 9 9 Dial-up (Canoe Ck) T’exelcemc (Williams 9 9 - - 9 9 - 9 No Lake) Xat’sull (Soda Creek) - 9 - - - 9 - - High Sp Esketemc (Alkali) 9 9 9 9 9 9 9 9 9 High Bar First Nation no reserves SOURCE: Aboriginal Canada Portal.

A.1.7 Tsilhqot’in Communities In 2008, the membership of the six Tsilhqot’in communities was approximately 3300 with an on reserve population of approximately 1540. The on reserve labour force is estimated at approximately 385. More than half of the labour force lives off reserve, mainly in Williams Lake. Current business capacity is low but slowly increasing as infrastructure is improved and as relationships develop with the private sector through joint ventures and with other levels of government. Business activity is concentrated in agriculture, ranching and forestry, while small-scale retail and commercial enterprises serve mainly on-reserve populations. Some communities have development corporations that have established joint ventures and offer contract services in logging, construction and other resource activities.

Table 2-19 Band Business and Economic Activities Band Economic Assets and Activity ?Esdilagh Hay fields, agricultural lands, irrigation system, highway frontage Tl'etinqox-t' Govt. Farming, cattle ranch, trapping Tl’esqox Toosey Enterprises (gas station/convenience store, public works, machinery rentals), rodeo activities, individual farming, cattle ranch, irrigation system, trapping Tsi Del Del Tsi Del Del Enterprises (joint venture tenure with Tolko and logging company), portable sawmill, health centre, gas station/convenience store, small-scale ranching, wild horse population, trapping Xeni Gwet'in Xeni Gwet’in Enterprises (equipment and shop compound), trapping, ranching, gas station/laundromat/convenience store/internet service, bed and breakfast, café, provincial and band campsites (4), arts and crafts, road building and infrastructure maintenance activities, contract slashing, forestry activities Yunesit’in Cattle ranching, agriculture, forest-related activities SOURCE: British Columbia First Nations 2006, Read and Associates and Stonefield Consulting 2007.

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A 2007 Tsilhqot’in Nation strategy prepared as part of the CCBAC process identified several regional and community development projects for increasing First Nations’ involvement in economic activity, especially in the traditional resource sectors. Bio- energy, forestry, non-timber forest products, agriculture and service businesses are all slated for future development, providing the Tsilhqot’in are able to attract the investment and establish the partnerships necessary to keep the activity sustainable.

Table 2-20 Planned Development Projects Band Priority Projects Tsilhqot’in Nation Bio-Energy plant, expanded timber licence holdings, eco and cultural tourism development, recreation camp expansion, expansion of non-timber forest product and agriculture production ?Esdilagh Mixed agriculture production, forage production, gas station/store/café Tl'etinqox-t' Govt. n/a Tl’esqox Bottled water producer, business incubator, cultural youth camp Tsi Del Del Gas station expansion, timber frame housing company, IR 1 & 2 irrigation systems Xeni Gwet'in Visitor information centre, community garden and forage development, Qwen Yex Earth Lodge Yunesit’in Commercial centre with highway frontage, cultural village, crop development SOURCE: Read and Associates and Stonefield Consulting 2007.

A.1.8 Secwepemc Communities In 2008, the membership of the five Secwepemc communities was approximately 2440 with the on reserve population estimated at 1005. The on-reserve labour force of the Secwepemc communities is approximately 485. It is likely that a labour force of equal size or larger lives off reserve, mainly in Williams Lake. Secwepemc communities are relatively close to the urban core of the Central Cariboo in Williams Lake and to Highway 97. This has certain advantages from a band member employment perspective but also for business development on and off reserve. All bands have established joint ventures either with major forest licensees, mining companies, municipalities and other businesses. Band government and forestry are major employers, but band development corporations and businesses are involved in a wide variety of activities, including construction, forestry, tourism and services.

Table 2-21 Band Business and Economic Activities Band Economic Activity Esketemc EcoLink Joint-Venture (timber harvesting, silviculture), Alkali Enterprises (motel, restaurant, store, gas, multiplex office), Esket Ventures, Alkali Resource Management (community forest), cattle ranching (including ownership of Dog Creek Ranch), hay production, community garden, tourism events (rodeo, Pow- Wow) Xats’ull Xats’ull Developments, Xats’ull Enterprises, and Xats’ull Logging, Likely/Xat’sull Community Forest, Xat’sull Heritage Village, Whispering Pines Campsite, Soda Creek Emporium restaurant, Totem Backhoe Services, land leasing, hay cutting

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Table 2-21 Band Business and Economic Activities (cont’d) Band Economic Activity T’exelc Chief Will-yum campsite, Sugar Cane Wood Products (value add manufacturing), Chief Will-Yum Gas Bar, Borland Creek Logging, acquisition of RC Cotton Site (Williams Lake), Sugar Cane Development Corporation (golf course development), woodlot licence, community garden, cow-calf operations, land leasing, residential and commercial land development Xgat’tem/Stswecem’c Archaeology consulting business, forest licences, timber harvesting operations, Meadow Lake Ranch, silviculture business, cooperative working agreement with J-Pacific Gold (Blackdome property), Stwecem’c Xgat’tem Development Corporation, store and gas station Llenlleney'ten n/a SOURCE: British Columbia First Nations 2006, Robertson 2007.

The major challenges facing the Secwepemc communities as far as economic development is concerned continue to be developing the organization capacity for handling development projects, training/education for members, attracting the capital needed to move project forward and improving local infrastructure. For the Northern Secwepemc, priorities for action include more involvement in and control of planning and mitigation for the mountain pine beetle and greater participation in timber harvesting and other sustainable activities related to the timber resource. Projects on the horizon include the 108 Heritage Project through the Northern Secwepemc Cultural Society. This cultural centre and museum is currently under study and if feasible would be built adjacent to the 108 Ranch on Highway 97. At the band level, increased involvement in timber harvesting as forest licensees is an important goal, as is moving existing ranch holdings onto a more competitive and profit-based footing.

Table 2-22 Planned Development Projects Band Priority Projects Secwepemc 108 Heritage Project, mountain pine beetle strategy, Aspen utilization and Biomass conversion studies, non-timber forest products analysis, business development policies and capacity Esketemc Restructuring of the Eco-link joint venture, value-added wood processing facility, trail/guest ranch joint venture project, residential and commercial development, local abattoir, closer involvement in exploration and mining activity Xats’ull Expanded forest licence holdings, Pioneer Log Home equity investment, facility upgrades for existing tourism holdings, gas bar, investment in mineral exploration and mining companies active in the region T’exelc Community forest licence (partnership with City of Williams Lake), sugar Cane Wood Products mill expansion, expanded woodlands operations, IR #1 land development including residential and industrial lands, acquisition of Mission Ranch, investment in mineral and mining activities Xgat’tem/Stswecem’c Community forest, expand timber harvesting capacity, Canoe Creek Value- Added Manufacturing joint venture, back-country recreation master plan, agricultural development plan for fee simple land holdings, mining engagement project Llenlleney'ten n/a SOURCE: Robertson 2007.

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Appendix 2-B Labour Market Analysis

The labour market analysis examines the supply and demand for labour, and implications of the increment to demand created by construction and operation of the Prosperity Gold- Copper Project.

B.1 Characteristics of the Regional Labour Force There were 17,685 persons in the study area’s labour force in 2001. The distribution of the labour force within the study area roughly follows the population distribution. Williams Lake accounted for about one third of the labour force. Rural areas D, E, F and G that are adjacent to Williams Lake or along Highway 16 contain a large proportion of the labour force. The thinly populated rural areas west of Williams Lake (i.e., K, J) have small labour forces. The study area in 2001 also had a higher rate of employment and unemployment as compared to the other regions, and is consistent with the positive correlation between these two variables observed for the economic development region (Table 2-30). Or alternatively, there are relatively fewer persons in the working age population that are not in the labour force in the study area. Table 2-23 and Table 2-24 summarize the distribution of the study area’s experienced labour force among industries and occupations, respectively. This provides additional information on the characteristics of the labour force and the labour market in which the project will operate. The important role of primary industries, such as log harvesting, agriculture, and ranching in both the local and regional study areas is evident in Table 2-23. Manufacturing, which is in many cases linked to the processing of primary products (e.g., primary wood processing mills), is also more dominant than is the case for the province generally. The sum of the two industries accounted for about 35% of the labour force’s affiliation as compared to 21% for the provincial economy. It follows that a smaller proportion of the labour force is involved in service industries, such as wholesale/retail trade, business services, etc.

Table 2-23 Distribution of Experienced Labour Force by Industry, 2001 Industry Local Study Regional BC Area Study Area Agriculture and other resource-based industries 15% 15% 5% Manufacturing and construction industries 20% 22% 16% Wholesale and retail trade 14% 13% 16% Finance and real estate 3% 3% 6% Health and education 15% 15% 17% Business services 13% 12% 20% Other services 19% 20% 21% SOURCE: Statistics Canada (2001)

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The distribution of the experience labour force among occupation categories is summarized in Table 2-24. Again, what is evident in comparing the local and regional study area to provincial averages is the relative importance of resource based activities. Trades, transport, occupations unique to primary industries and manufacturing accounted for nearly 40% of the occupations, almost twice the proportion exhibited for the province.

Table 2-24 Distribution of Experienced Labour Force by Occupation, 2001 Occupation Local Area Region BC Management occupations 8% 8% 11% Business, finance and administration occupations 13% 12% 18% Natural and applied sciences and related occupations 6% 5% 6% Health occupations 4% 4% 5% Social science, education, government service and religion 7% 7% 8% Art, culture, recreation and sport 1% 1% 3% Sales and service occupations 23% 23% 26% Trades, transport and equipment operators and related occupations 18% 19% 14% Occupations unique to primary industry 12% 12% 4% Occupations unique to processing, manufacturing and utilities 8% 9% 5% SOURCE: Statistics Canada (2001)

B.1.1 Characteristics of the First Nations’ Labour Force Table 2-25 highlights the percentage of the labour force on reserve and off reserve in the study area and compares this to the non-aboriginal population in the Cariboo Regional District and BC. The distribution of the experienced labour force for the First Nations in the study area is broadly similar to that of the non-aboriginal labour force. That is, about 35% is in the goods producing industries and some 60% in service industries. The key goods-producing industries in the study area include agriculture, forestry, manufacturing, and construction. Mining is also an important activity for First Nations living off reserve in the study area. For service industries, the public sector activities, including health, education and government administrative services are important.

Table 2-25 Experienced Labour Force of First Nation Persons by Industry, 2006 Aboriginal Labour Force Non-Aboriginal On Reserve Off reserve RSA BC Industry LSA First All Aboriginal All persons Nations1 persons in RSA Agr., Logging & forest Ind. 17.0% 17.4% 13.0% 3.4% Mining & Quarrying 1.1% 3.4% 2.4% 0.9% Utilities 1.1% 0% 0.2% 0.5% Construction 8.0% 6.7% 7.1% 7.5% Manufacturing 6.8% 11.7% 14.7% 8.5% Total Goods Producing 34.0% 39.2% 37.4% 20.8%

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Table 2-25 Experienced Labour Force of First Nation Persons by Industry, 2006 (cont’d) Aboriginal Labour Force Non-Aboriginal On Reserve Off reserve RSA BC Industry LSA First All Aboriginal All persons Nations1 persons in RSA Wholesale 1.1% 2.7% 2.8% 4.1% Retail Trade 5.7% 10.2% 10.4% 11.2% Transport. & Warehousing 2.3% 3.4% 4.8% 5.2% Information and culture 0% 0.6% 1.0% 2.6% Fin.\Insurance\Real Estate 0% 1.1% 2.9% 6.1% Prof., Science & technical 1.1% 1.9% 3.3% 7.3% Mang. of companies & entr. 0% 0.4% 0.1% 0.1% Admin., Waste Management 4.0% 3.6% 2.8% 4.4% Education services 7.4% 3.8% 6.4% 6.9% Healthcare & Social Assist. 9.7% 7.5% 8.1% 9.6% Arts, Entertainment & Rec. 1.1% 1.9% 1.5% 2.3% Accom. & Food 1.7% 10.0% 7.5% 8.1% Other Service 1.1% 5.0% 4.5% 4.9% Public Administration 23.9% 5.4% 4.9% 5.0% Total Services Producing 59.1% 57.5% 61.0% 77.8% Industry–Not Classified 6.9% 3.3% 1.6% 1.4% Total 100.0% 100.0% 100.0% 100.0% NOTES: 1. Includes the ?Esdilagh (Alexandria), Tl'etinqox-t' Govt. (Anaham), Tsi Del Del (Alexis Creek), Xeni Gwet'in (Nemiah), Yunesit’in (Stone), and Tl’esqox (Toosey) of the Tsilhqot’in Nation, and the Stswecem’c (Canoe Creek), T’exelcemc (Williams Lake), Xat’sull (Soda Creek), Esketemc (Alkali), and Llenlleney’ten (High Bar) of the Upper Secwepemc Nation. SOURCE: 2006 Census.

Table 2-26 highlights the occupations for females and males living on and off reserve in the study area in 2006. There is a noticeable difference in occupations among males and females with over half of the females working in business, finance and administration, or sales and services; while almost half of males work in occupations unique to primary industries or trades, transportation, and equipment operation. For off reserve First Nations trades, transportation and equipment operators is the largest category for the male labour force, while occupations unique to primary industry is the largest category for the on reserve male labour force. Sales and services is the largest labour force category for women both on reserve and off reserve.

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Table 2-26 Occupations for Study Area First Nation On reserve and Off Reserve, 2006 On reserve in LSA1 Off reserve all aboriginal persons in RSA Female Male Total Female Male Total Occupations A) Management 25 15 40 60 40 100 B) Business, Finance & Admin 80 20 100 215 60 275 C) Natural & Applied Sciences 15 30 45 30 65 95 D) Health 15 0 15 30 10 40 E) Social Services, Education, Gov’t 75 35 110 175 30 205 Services and Religion F) Arts, Culture, recreation & Sport 10 10 20 10 0 10 G) Sales and Services 105 40 145 525 220 745 H) Trades, Transp. & equip. operators 10 130 140 50 485 535 I) Occupations unique to primary 20 135 155 75 245 320 industry J) Occupations unique to processing, 10 40 50 25 175 200 manufacturing & utilities Not defined 30 30 60 50 35 85 Total 395 485 880 1,245 1,365 2,610 NOTES: 1. Includes the ?Esdilagh (Alexandria), Tl'etinqox-t' Govt. (Anaham), Tsi Del Del (Alexis Creek), Xeni Gwet'in (Nemiah), Yunesit’in (Stone), and Tl’esqox (Toosey) of the Tsilhqot’in Nation, and the Stswecem’c (Canoe Creek), T’exelcemc (Williams Lake), Xat’sull (Soda Creek), Esketemc (Alkali), and Llenlleney’ten (High Bar) of the Upper Secwepemc Nation. SOURCE: Statistics Canada 2006 Census

B.1.2 Trends in the Regional Labour Market The most current labour market information is only available for the Cariboo Economic Development Region, which is made up of the Fraser Fort George and the CRD. For survey purposes, the working age population is taken to be persons 15 years and older that are available for employment. This population is divided into three categories: employed, unemployed, and not in the labour market. The trends in the labour market variables are shown in Table 2-27. Figures show that there was little positive growth in either the working age population or the labour force for the 11 year period ending in 2005. That is, the labour force in 2005 was about 1% below its size in 1995 in the development region. In contrast, the total BC labour force increased 16% for the corresponding period4. The data also underline the constantly changing nature of labour market variables. For instance, the smallest working age population occurred was in 1995, whereas the smallest labour force was 2005. The maximum labour force was 1998, which coincided with the highest unemployment levels. What is apparent is that the number of persons deemed

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employed and unemployed are positively correlated with the number of persons in the total labour force. Employment and unemployment levels move together, in part because workers on the margin of participation are drawn into, or leave, the workforce in response to overall economic conditions.

Table 2-27 Labour Force Trends in the Cariboo Development Region Year Labour Force Employed Unemployed Not In Labour Total Population Force >15 years Thousands 1995 87.7 79.2 8.5 38.1 125.8 1996 94.2 86.1 8.1 34.9 129.1 1997 92.1 82.7 9.4 39.4 131.5 1998 96.7 82.7 14 35.2 131.9 1999 92.2 81.4 10.8 39.2 131.4 2000 87.7 79.1 8.6 42.9 130.6 2001 87.9 79.4 8.5 41.9 129.8 2002 89.3 78 11.3 39.5 128.8 2003 88 78.2 9.8 40 128 2004 88.8 80.7 8.1 38.5 127.3 2005 86.5 80.1 6.4 40.3 126.8 SOURCE: BC Stats (2007)

The unemployment rate for the Cariboo Economic Development Region and BC are shown in Figure 2-4. The unemployment rate is calculated as the number of unemployed as a percentage of the total labour force. From 1995 through 2005, the rate of unemployment in the Cariboo was above the provincial average and showed more variation.

16% 14% 12% 10% Cariboo 8% BC 6% 4%

Unemployment Rate Unemployment 2% 0% 95 96 97 98 99 0 1 2 3 4 5 years

SOURCE: BC Stats 2007

Figure 2-4 Annual Average Unemployment Rates

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Unemployment values from the 2006 Census show unemployment for the study area First Nation communities (on reserve) to be approximately 27%. This is noticeably higher than other First Nation populations in BC, both on reserve and off reserve. It is also over three times higher than the regional and provincial non-aboriginal populations for the same period.

Table 2-28 Unemployment and Participation Rates, 2006 Unemployment Participation Rate Rate Yunesit’in and Xeni Gwet’in On Reserve 29.2% 45.3% Tsilhqot’in National Gov’t Bands On Reserve 26.8% 33.3% Study Area On Reserve 27.3% 35.8% Study Area Off Reserve 14.2% 65.2% BC Aboriginal People All 15.0% 65.0% Non-Aboriginal People Cariboo Regional District 10.0% 65.6% BC 6.0% 65.6% NOTES: Study Area includes the five Tsilhqot’in National Government Bands, four Northern Secwepemc TE Quelmucw Bands, and the independent Band of Esketemc. High Bar is also included in the Study Area definition but does not have a reserve population. Study Area for off reserve First Nations is the Cariboo Regional District. SOURCE: Statistics Canada 2006 Census

The Region’s higher unemployment rate the may be attributed to relatively greater turnover in the labour force, greater dependence on seasonal occupations, greater dependence on cyclical industries, and the similar factors. Even in a relatively booming economy, the relatively higher rate of unemployment might persist (i.e., seasonal unemployment would still be a factor). Since 2002, the unemployment rate for the Development Region and the province has fallen similarly and, in 2005, the lowest rates in the observation period were recorded for both areas. Another indication of the under- utilization of the region’s labour force is revealed in the proportion of persons with employment income that also relied on Employment Insurance (EI) benefits to some degree. This is summarized in Table 2-29. The local study area (LSA) and the regional study area (RSA) work force show a much higher reliance on Employment Insurance benefits than is the case for BC generally. This is consistent with the seasonality of the region’s major industries and occupations.

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Table 2-29 Proportion of Tax Filers Receiving Employment Insurance Benefits, 2004 # of Tax Filers # of Persons with % of Tax Filers EI Income Williams Lake 10,220 1,810 18 Cariboo D 190 40 21 Cariboo F 2,290 490 21 Cariboo J 330 80 24 Cariboo K 410 100 24 LSA 13,440 2,520 19 Cariboo Regional District 32,310 6,040 19 BC 2,141,180 148,240 7 SOURCE: Canada Revenue Agency (2004)

Broadly, the data indicate that expansions and contractions in economic activity are not solely reflected in the number of persons unemployed. The number of unemployed is clearly related to the structure of the local economy. As well, the size of the working age population responds to changing economic conditions (by migration), as do individuals’ decisions to join the labour force by seeking work. Information for the study area is available for the latest Census year (2001). These data are shown in Table 2-30, relative to the larger economic regions for comparative purposes.

Table 2-30 Comparison of Labour Market Variables, 2001 Local Study Area Labour Force Participation Employment Unemployment (persons) Rate1 (%) Rate2 (%) Rate3 (%) Williams Lake 5,965 70.8 61.1 13.7 100 Mile House 800 60.1 51.8 13.3 Cariboo D 1,845 72.1 61.1 15.3 Cariboo E 2,775 75.8 63.9 15.4 Cariboo F 2,930 75.3 66.7 11.5 Cariboo G 2,440 62.5 55.0 12.2 Cariboo K 435 74.2 68.3 7.9 Cariboo J 495 70.6 59.4 14.9 Local study area 17,685 70.6 61.1 13.4 Regional study area 34,375 62.5 55 12.2 Cariboo Economic Region 87,900 67.7 61.2 9.7 Total Provincial 2,082,600 65.2 59.6 8.5 NOTES: 1 Number of persons in the labour force in the week prior to census day, expressed as a percentage of the working age population 2 Refers to the number of persons employed in the week prior to census day, expressed as a percentage of the working age population 3 Refers to the unemployed expressed as a percentage of the labour force in the week prior to census day SOURCE: Statistics Canada (2001)

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More recent information on the study area labour market is provided by the number of Work Ready Claimants. This indicator includes persons that are working (but expect to become unemployed) as well as unemployed. The number of claimants has a seasonal peak in May and seasonal through November, however, the overall trend in the past two years is fewer claimants, similar to the trend in the unemployment rate recorded at the Development Region level.

2000

1800

1600 trend line

1400

1200

1000

800 # of Work Ready E.I. Claimants 600

5 5 5 6 6 0 05 0 0 06 06 - - - - l-0 ul- p-05 u v- an J ar J J Mar-05 May Se Nov-0 Jan-06 M May Sep-06 No

SOURCE: Services Canada (2007)

Figure 2-5 EI Claimants in the Local Study Area

The monthly average number of claimants fell from some 1400 in 2005 to 1200 in 2006, a reduction of about 18% (Table 2-31). The bulk of the claimants have at least occupation-specific training or college/apprenticeship training.

Table 2-31 Claimant Trends and Skill Levels 05/06 Average 2005 2006 Change Share Skill Level A–usually has university 61 41 -33% 4% Skill Level B–usually college or apprenticeship trained 475 389 -18% 33% Skill Level C–secondary school level and/or occupation-specific training 630 534 -15% 44% Skill Level D–on-the-job training 285 225 -21% 19% Average Monthly Claimant Total 1452 1190 -18% 100% SOURCE: Service Canada (2007)

The occupations that account for the relatively larger number of work ready claimants is summarized in Table 2-32 for Williams Lake and 100 Mile offices. The occupation categories of truck driver and heavy equipment operator account for the first and second largest number of EI claimants in both communities. This provides at least an initial

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indication of the number and skills of persons in the current labour force that may be available to the Project.

Table 2-32 Top Ten Work Ready Employment Insurance Claimants (annual monthly average 2005) Category Williams Lake Truck Drivers 78 Heavy Equipment Operators (Except Crane) 67 Logging Machinery Operators 47 General Farm Workers 36 Constr. Trades Helpers And Labourers 35 Labourers In Wood, Pulp & Paper Proc 33 Chainsaw And Skidder Operators 30 Cooks 29 Retail Salespersons And Sales Clerks 28 Silviculture And Forestry Workers 26 Carpenters Light Duty Cleaners Cashiers Total of Top Ten 409 Total All Claimants 1057 SOURCE: Service Canada (2007)

B.1.3 Outlook BC Stats prepares a five-year forecast of labour demand within region served by Thompson Rivers University5. The local and regional study areas are in the Thompson Rivers College Region, which extends south to include the towns of Merritt and Kamloops. Through 2010, the demand for labour in the College Region is expected to increase at an average rate of 1.9%/yr, which is about average for the province. Among the region’s larger employers, strong future employment growth is expected in health care, construction, and accommodation and food industries. Employment demand in the mining industry is expected to increase faster than the regional average at 2.5%/yr. The highest growth in demand by occupation category is Trade Transport and Equipment Operators and Related Occupations, at 3%/yr. This is followed by Health Occupations at 2.8%/yr. Occupations related to Primary Industries and Manufacturing is anticipated to increase below average, at 0.9 and 1.2%/yr. In sum, and with relevance to the Project, the labour demand forecast to 2010 indicates relatively robust demand for construction trades, and those trades that would be involved in mining operations. With respect to labour supply, there is a concern about skill shortages, which could impede new investments and economic growth. The short term evidence of skill shortage is upward pressures on wage and employment growth and a relatively low unemployment rate. Labour imbalances are inferred from wage data, unemployment and employment rates, new hires and vacancy rates. In practice, the lack of statistical information makes it difficult to accurately gauge local conditions, particularly in smaller communities. In practice, flexible labour policies allow employers to attract skilled labour from other parts of the province, other provinces or for abroad.

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However, a growing concern about long term labour supply is that the age structure of the working age population is approaching a time when the number of retirees will outpace new job entrants. BC STAT (P.E.O.P.L.E. 29) forecast that this will occur by 2014 provincially6. The generally younger population in the RSA (and the northern region of the province generally) delays the cross over until about 2020. However, this is tempered with concerns that the study area’s key industries, such as forestry, and particularly mining, are generally regarded as having an "older than average" working population. This issue will require a public policy response, and provides a context in which the project will be developed.

B.1.4 Direct Employment and Employment Multipliers Estimates of direct employment were provided by Taseko. The average annual values are summarized in the following table. Employment multipliers were taken from research completed by BC Stats using the provincial input-output model for the total BC impacts (BC Stats 2005). Construction and mining industry multipliers found in their latest publications were adopted for the Project’s construction, operating and post closure phases. The multipliers are expressed in terms employment per number of direct employees. For the local area multipliers, BC Stats estimates multipliers that reflect the extent to which the direct job loss/gain will trigger an out-migration/in-migration. For short term effects (or a safety net), the migration is expected to be less, consequently a lower multiplier value is estimated. For the construction phase of the project, Project specific information was adopted which resulted in higher indirect impacts than BC Stat multipliers indicated for a typical mine development. It is noted that BC Stat recommends using project- specific information where that is available. BC Stats definition of the Williams Lake Local Area corresponding to the multipliers includes Williams Lake, 100 Mile House, and Cariboo E, F, G, H, L, J and K. This is somewhat larger than our defined LSA.

Table 2-33 Employment Multipliers (jobs per direct job) Williams Lake BCf Construction Phase Indirect 1.31a .63 Induced .31b .22 Total Multiplier c 2.63 1.85 Mine Operations Indirect .31d .86 Induced .33e .77 Total Multiplier 1.64 2.63 NOTES: a Corresponds to $10M in indirect wages and average before tax wage of $35,000/yr. b scaled up in proportion to the increase in indirect impacts c local multiplier based on local direct, BC multiplier based on total BC direct d BC Stats (2005) Table 3.3, assume no safety net e BC Stats (2005) Table 3.3, assume no safety net f BC Stats (2004) Appendix B, Medium Aggregation, same safety net assumptions as local multiplier

6 See discussion of the issue in Northern British Columbia Labour Market Bulletin, third quarter 2005, Services Canada. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 2-54 Prosperity Gold-Copper Project

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Table 2-34 Total Direct Employment by Year (person-years)

Total Employment BC - 2 -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21+ Construction 87 669 150 Operations 0 0 305 382 417 434 450 447 454 473 488 476 489 423 399 353 364 332 256 222 217 161 Post-closure 10 Total direct 87 669 455 382 417 434 450 447 454 473 488 476 489 423 399 353 364 332 256 222 217 161 10 Indirect 55 421 357 328 358 373 387 384 390 406 419 409 420 363 343 303 313 285 220 190 186 139 9 Induced 19 147 268 294 321 334 346 344 349 364 375 366 376 325 307 271 280 255 197 171 167 124 8 Total BC 161 1,237 1,080 1,003 1,095 1,140 1,182 1,174 1,193 1,243 1,282 1,251 1,285 1,111 1,048 927 956 872 672 583 569 424 26 RSA/LSA Employment Construction 22 167 37 – 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Operations – – 287 359 392 407 423 420 426 444 458 447 459 397 375 331 342 312 240 208 204 152 0 Post-closure – – – – 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 10 Total direct 22 167 324 359 392 407 423 420 426 444 458 447 459 397 375 331 342 312 240 208 204 152 10 Indirect 29 219 138 112 122 127 131 131 133 138 143 139 143 124 116 103 106 97 75 65 63 47 3 Induced 7 52 107 119 130 136 141 140 142 148 153 149 153 132 125 110 114 104 80 69 68 50 3 Total RSA/LSA 57 439 570 590 644 670 695 690 701 730 753 735 755 653 616 545 562 512 395 342 335 249 16

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Appendix 2-C Incomes

The total income by source for the LSA, RSA, and the total province in 2004 are summarized in Table 2-35. The statistics are based on tax filer information. Data from Cariboo E are suppressed because the small tax filler count and concerns over confidentiality. Overall, employment income makes up 72% of total income.

Table 2-35 Total Income Sources, 2004

Employment Transfer Pension Other Total Income Payments Income Income Income Williams Lake $344,118 $66,422 $46,256 $11,114 $467,910 Cariboo D $5,223 $2,037 $1,558 $194 $9,012 Cariboo F $69,171 $15,307 $10,500 $2,262 $97,240 Cariboo J $6,488 $3,315 $2,092 $690 $12,585 Cariboo K $8,058 $2,919 $1,501 $880 $13,358 Total LSA $433,058 $90,000 $61,907 $15,140 $600,105 Cariboo Regional District $1,040,333 $239,643 $167,744 $40,272 $1,487,992 BC $74,415,512 SOURCE: Canada Revenue Agency, prepared by BC Stats (May 2006)

Table 2-36 highlights the employment income and average income for the various local jurisdictions. The average income per tax filer is highest in Williams Lake at $33,700, but below the provincial average of $34,800. The average incomes in the electoral areas J and K is substantially below the average incomes for the LSA and the CRD.

Table 2-36 Average Employment Income, 2004 Persons Employment Average # of Persons Income (000) Income with EI income Williams Lake 10,220 $344,118 $33,671 1,810 Cariboo D 190 $5,223 $27,489 40 Cariboo F 2,290 $69,171 $30,206 490 Cariboo J 330 $6,488 $19,661 80 Cariboo K 410 $8,058 $19,654 100 Average LSA 13,440 $433,058 $32,222 Cariboo Regional District 32,310 $1,040,333 $32,198 6,040 BC 2,141,180 $74,415,512 $34,754 148,240 SOURCE: Canada Revenue Agency prepared by BC Stats (May 2006)

Moving forward, as workers retire, it is anticipated other sources of income will grow against employment income. The development of the Project will increase employment income and assist in holding the region’s employment income share at levels near the current share.

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Table 2-37 shows incomes by industry from the 2001 census. Differences among major industries can vary widely. Those industries most likely to be affected by the project, construction and mining have substantial wage disparity.

Table 2-37 Average Employment Income for the Experienced Labour Force, 2001 Williams Lake Wells, Electoral Cariboo Area A to L Regional District 111 Farms $20,375 $34,821 113 Forestry $50,596 $48,910 $50,898 212 Mining $69,812 $53,436 $58,142 213 Support Activities to Mining $32,395 $32,418 221 Utilities $61,663 $53,987 $55,051 23 Construction $35,544 $39,353 $38,664 31–33 Manufacturing $47,724 $51,527 $52,540 321 Wood Manufacturing $48,790 $51,127 $51,223 SOURCE: Statistics Canada (2001)

The incomes used to estimate total incomes are summarized in the following table.

Table 2-38 Average Employment Income 1) Average Operation Employment Income $81,200 2) Average Operation Benefits per employment $18,700 3) Average Construction employment income $80,405 4) Average Construction Benefits $18,495 Direct wage includes: base hourly wage, statutory holidays and vacations, first aid, safety bonus, retention bonus Benefits: government legislated assessments, human resources recruiting, union assessments, overtime, safety equipment, life insurance, general liability 5) Local Average Employment Income $35,000 6) BC Average Employment Income $35,980 7) Local Average Employment Income $35,000 8) BC Average Employment Income $35,980

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Appendix 2-D Government Finances

D.1 Taxes Government revenues currently deriving or expected to derive from the affected project area include: • property taxes to the regional district and City of Williams Lake • resource rents to government from affected resource activity • payroll and corporate taxes from affected resource activity Property tax is a key component of the overall tax base within the study area. Property assessments are a key component in deriving the property tax in an area. Table 2-39 highlights the total value and the share of the general purpose property assessment for 2006 for the City of Williams Lake and the CRD Electoral Areas within the study area. As illustrated, the City of Williams Lake has approximately 41% of the total assessed value in the study area with the Electoral Areas making up just over 59%. Overall, the study area makes up just over 37% of the total assessed value within the CRD.

Table 2-39 Study Area Population and Assessment Values Study Area Population (2001 Census) 1 2006 Assessment Excluding IRs Including IRs General Purpose % of Study Area City of Williams Lake 11,153 11,153 $682,510,793 40.8% Electoral Area D 3,294 3,469 $227,572,460 13.6% Electoral Area E 4,668 5,264 $239,668,673 14.3% Electoral Area F 4,963 5,236 $380,095,425 22.7% Electoral Area J 880 1,618 $99,612,625 6.0% Electoral Area K 674 1,418 $41,523,536 2.5% Total 25,632 28,158 1,670,983,512 100.0% NOTE: Off-reserve First Nation residents will be included in the column that excludes Indian reserves (IRs) SOURCE: Ministry of Community Services (2006)

Table 2-40 illustrates the consolidated revenue for the City of Williams Lake and the entire CRD. Property taxes and grants in lieu for Williams Lake are approximately $8.9 million or 41% of the revenue that the City of Williams Lake received in 2005. Property tax and grants in lieu made up over $14 million or 65% for the Regional District in 2005.

Table 2-40 Consolidated Revenue as at December 31, 2005 Williams Lake Cariboo Regional District Total Own Purpose Taxation and Grant in Lieu $8,983,947 N/A Electoral Area and Local Government Requisitions and N/A $14,030,918 Grants in Lieu Sales of Services $5,604,906 $2,834,760 Transfers from Federal Government $39,873 $618,186 March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 2-59 Prosperity Gold-Copper Project

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Table 2-40 Consolidated Revenue as at December 31, 2005 (cont’d) Williams Lake Cariboo Regional District Transfers from Provincial Government $4,806,501 $462,146 Transfer from Regional and Other Government $1,265,101 $76,182 Actuarial Adjustments $123,982 $771,614 Other Investment Income $352,438 $114,111 Developer Contributions $288,000 $43,123 Disposition of Assets $250,913 $456,850 Member Municipality MFA Debt Payment N/A $2,174,171 Total Revenue $21,715,661 $21,582,061 SOURCE: Ministry of Community Services (2007)

D.2 Government Expenditures Table 2-41 illustrates the government expenditures for various activities for the City of Williams Lake and the CRD in 2005. In Williams Lake, capital expenditures of approximately $9.4 million or 40% of total expenditures was the largest expenditure item. In the CRD, general government expenditures accounted for approximately $7.5 million or 36% of the Regional Districts $23.4 million expenditures.

Table 2-41 Government Expenditures as at December 31, 2005 Williams Lake Cariboo Regional District General Government $2,338,109 $7,454,106 Protective Services $3,157,548 $1,531,378 Solid Waste Management & Recycling $1,099,413 $3,187,242 Health, Social Services and Housing $0 $0 Development Services $378,471 $0 Transportation and Transit $1,954,170 $0 Parks, Recreation, and Culture 2753815 $3,483,060 Water Services $908,174 $211,808 Sewer Services $375,243 $116,666 Other Services $1,081,118 $554,853 Capital Expenditures $9,394,680 $2,091,512 Other Adjustments $0 $0 Debt Payments for Member Municipal N/A $2,174,171 Total Revenue $23,440,741 $20,804,796 SOURCE: Ministry of Community Services (2006)

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Section 2: Economic Issues

Appendix 2-E Regional Economic Development

E.1 Community Economic Dependencies The provincial government prepares local area dependencies on 63 rural areas of the province covering the entire province, except the Lower Mainland. The estimates quantify the sources of income that make up the province’s local economies. Table 2-42 highlights the local area dependencies for Williams Lake Local Area and the Quesnel local area between 2001 and 1991, which together comprise the RSA. The Williams Lake local area includes 100 Mile House, CRD Electoral Areas D, E, F, G, H, L, J and K. This local area also includes all First Nation communities in CRD, except those in Electoral Areas A and B. The Quesnel Local Area includes CRD Electoral Areas A and B, Wells and First Nation communities in the Electoral Areas A and B. The Williams Lake and Quesnel economies are highly dependent on the forest sector. In fact, the RSA economy is among the most forest dependent in the province. This dependency has likely increased since 2001 with the uplifts in the pine beetle timber harvest. The public sector is the second largest economic contributor to local incomes. In both local areas the public sector has grown its share of the local economy between 1991 and 2001; however, it is likely that this share has declined since 2001 with provincial government office consolidation and school closures. Mining has been making a relatively small contributor to local incomes over the 1991 to 2001 period and has generally been trending downward. However, since 2001 and with the reopening of the Gibraltar mine in 2004 and the Mount Polley mine in 2005, the downward trend will have been reversed and mining sector will have seen an increase in its share of the local economies, particularly in the Williams Lake Local Area.

Table 2-42 Basic Sector Economic Dependency Changes (1991 to 2001) FOR MIN AGF TOU PUB OTH TRAN ONEI Williams Lake 2001 30 2 3 6 24 9 16 9 1996 31 3 4 7 22 11 14 8 1991 27 4 4 6 20 11 15 13 Quesnel 2001 43 1 2 5 21 5 16 8 1996 45 1 2 5 17 8 15 6 1991 39 2 3 3 16 7 16 13 NOTE: FOR=Forestry & related manufacturing, MIN=mining, AGF= Agriculture & food processing, TOU=Tourism, PUB=Public sector including health and education, OTH=All other basic industries, TRAN=Transfer payments from government, ONEI= Other Non-Employment income SOURCE: BC Ministry of Management Services (2004)

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E.2 Major Employers Table 2-43 highlights the major employers in both Williams Lake and Quesnel. Fifteen of the 18 companies are in either the forest sector or the public sector. The major employer profile underlines the economic dependency data provided in Table 2-42, which showed forestry and the public sector as the two biggest contributors to the regional economic base. Williams Lake benefits from a substantial employment contribution from the two operating mines, as well.

Table 2-43 Major Employers in Williams Lake and Quesnel in 2006 Williams Lake Employees Quesnel Employees Tolko Industries Ltd. 840 School District # 28 807 West Fraser Mills 577 Weldwood 560 Interior Health Authority 500 GR Baker Mem. Hospital 518 School District # 27 447 Cariboo Pulp and Paper 400 Gibraltar Mine 310 Canfor 375 Mt Polley Mine 328 West Fraser Timber 420 Jackpine FP Ltd. 210 Tolko Industries Ltd. 290 Overwaitea Save On 156 City of Quesnel 135 Cariboo Road Services 127 Pioneer Log Homes 100 SOURCE: City of Williams Lake (2006); City of Quesnel (2005)

E.3 Major Projects There are several major projects being proposed in the study area (Table 2-44), mostly involving wood processing and mining, but also tourism and retail. In particular, the forestry projects represent diversification into non-lumber processing that would appear to be well suited for dealing with the substantial volumes of dead wood generated by the mountain pine beetle (MPB) epidemic. In Williams Lake, the expansion of big-box stores, including Wal-Mart, is an economic priority.

Table 2-44 Major Projects in the Study Area, 2006 Location Project and Description Estimated Proposed Start Investment Date 108 Mile Hills Health Ranch Expansion–250 housing units $40 million Spring 2007 and village with wellness theme Williams Development of several big box stores $50 million Summer 2007 Lake Williams Pellet Plant–wood pellets from pine beetle wood $30 million Unknown Lake Quesnel Coal Mine and Gasification Plant–30 yr life 1.6 $150 million Unknown million tonnes coal per year, 8600 bpd diesel fuel, and 1600 bpd of naptha, 32 km south of Quesnel Quesnel Bonanza Ledge–3000 tonnes/day gold ore mine in $60 million Summer 2007 Barkerville area Quesnel Pellet Plant–wood pellets from pine beetle wood $30 million Unknown Quesnel OSB plant–500 million cf/yr $200 million On hold Quesnel West Fraser Sawmill–upgrade of existing mill $105 million Recent completion SOURCE: BC Ministry of Economic Development (December 2006)

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E.4 Current Planning The three largest communities in the Regional District, Quesnel, Williams Lake, and 100 Mile House, are all planning for economic development, as individual communities and as a region through the Cariboo-Chilcotin Beetle Action Coalition (CCBAC). First Nations have also been actively engaged in planning for economic development both at the band level and through their involved in the CCBAC process.

E.4.1 Communities There are two full-time, professionally staffed economic development offices in the CRD, one in Williams Lake and one in Quesnel. 100 Mile House also engages in economic development through existing municipal departments, staff and elected officials, but does not have an economic development officer. Smaller communities, including Wells and the West Chilcotin, do not have paid economic development staff, but do commission and implement project-specific plans and studies from time to time. Williams Lake last completed a comprehensive economic development strategy in 2003 and is implementing a comprehensive marketing plan for the tourism sector. Economic effort also goes into supporting the business climate and undertaking marketing and business attraction. Williams Lake is implementing specific economic development projects targeted at forestry, agriculture and mining. The community has also made a major investment in tourism infrastructure in recent years. Current economic development in Quesnel is centred around supporting business growth and retention, and assisting community organizations realize specific economic development projects. Emphasis is also placed on tourism marketing and development. Specific economic development efforts in Quesnel include initiatives that target community forests, value-added wood processing and recruiting more investment in the energy sector. Economic development activities in 100 Mile House are closely linked to the work of the CCBAC, which the Mayor chairs. The community is focused on supporting growth in the tourism sector, and fostering investment and business attraction. A recently completed log home building strategy is being implemented by industry, which is clustered in the 100 Mile House area.

E.4.2 Cariboo-Chilcotin Beetle Action Coalition The CCBAC is involved in developing economic development strategies for the RSA. A major objective of CCBAC is to facilitate economic growth and diversification of the Cariboo-Chilcotin region. The purpose of completing Regional Sector Strategies is to identify, analyze and recommend specific opportunities, actions and strategies that would lead to accelerated economic growth and expansion in that economic sector. Regional Sector Strategies will also provide a useful tool for CCBAC through their identification of potential projects and investment opportunities that could be funded from a Pine Beetle Trust Fund and other public and private sources. Separate strategies are being prepared for the following sectors: • log home building • secondary wood sector

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• resource technology • agriculture • tourism • arts, culture, heritage • retention/attraction • First Nations All strategies are now complete and will be used to solicit funds from the federal government’s planned Beetle Fund. Collectively, the strategies are meant to decrease the region’s dependency on primary forestry and cushion what is expected to be a substantial shock as a result of the MPB.

E.4.3 First Nations The TN and the USN have each prepared economic development strategies in 2007 as part of their participation in the Cariboo Chilcotin Beetle Action Coalition. (Read and Associates and Stonefield Consulting 2007; Robertson 2007) The strategies have targeted a multi-sector approach to assist First Nations make a satisfactory transition to a post- beetle land base and what is expected to be a much different economic setting than exists today. The objectives of the TN strategy were to outline the strengths, weaknesses, opportunities and threats of economic development and then to identify a series of nation-level and community-based strategies that were environmentally-sustainable, culturally-acceptable and able to provide revenue, business opportunities, jobs and income for members. Recurring land and resource disputes, poor access to capital and training, insufficient business knowledge, physical isolation and poor or inadequate infrastructure were identified as the major barriers to future development. In light of the TN’s historical connection to the land base, natural resources, including timber, minerals and agricultural crops are seen as having the best opportunities. (Read and Associates and Stonefield Consulting 2007) Prioritized strategies include tourism development and marketing, increased forest tenure holdings, a better defined agriculture plan, an energy and mines coordinator, as well as a series of capacity and infrastructure building initiatives. One of the first projects to move forward is a proposed bio-energy plant. A joint venture between the TNG and Western Biomass Corporation has led to a filing to the EA office for approval to develop a 60 megawatt (MW) forest-based biomass-fired, thermal electric power generating plant near Hanceville. The project will require a 70 kilometre transmission line to connect to the BC Hydro electric grid near Soda Creek. (Levelton Consultants Ltd. 2008) The USN strategy included five Upper Secwepmec First Nations communities including Xats’ull/Cmetem’ (Soda Creek Indian Band), Esketemc (Alkali Lake Indian Band), Tsq’escen’ (Canim Lake Indian Band), T’exelc (Williams Lake Indian Band, “Sugarcane”), and Xgat’tem/ Stswecem’c (Canoe Creek Indian Band). Like the TN strategy, the focus is on improving the capacity and ability of the Upper Secwepmec to gain greater access to, control of and benefits from the land and resources that have been their historical livelihood. Education, geographic isolation, political instability, the

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relationship between other levels of government and corporations are all seen as in need of improvement. (Robertson 2007) Priority strategies include improved land and resource management planning (on and off- reserve), greater involvement in the forest sector and value-added wood activities, the development of more band-owned tourism products and businesses, the development of urban area reserve lands for commercial and residential purposes, the extension of niche- oriented and community-based agriculture activity, more involvement in and benefits from the mining sector, and more support for entrepreneurs. The USN does emphasize joint venture and cooperative working arrangements with other levels of government and the private sector.

E.5 Future Economic Development

E.5.1 Mountain Pine Beetle and Forestry The mountain pine beetle is likely to fundamentally affect the economic base of the region. At time of writing, the provincial Chief Forester was set to release a new AAC and beetle management strategies for the Cariboo forest regions. Current timber supply analyses appear to indicate that an uplifted AAC can be supported for the next 12 to 20 years (2017 to 2025). At that point, the AAC would decline to about 2.9 Mm3 annually. The greatest area of uncertainty is the ability and capacity of major licensees to harvest a timber profile that is suitable for consumption in existing facilities. A 2005 study by the Canadian Forest Service has shown that once the beetle harvesting programs wind down early next decade, the AACs, forestry employment and forestry incomes in three out of the four TSAs with existing uplifts will decline (Patriquin et al. 2005). More recent research has indicated the Williams Lake region will have the fewest employment benefits from AAC uplifts, but will see fewer post-beetle employment losses in comparison to Quesnel, Prince George and the Nadina regions (Patriquin and White 2006). The BC Progress Board has stated that tremendous uplifts in the AAC in the short- term will lead to a boom but it will be followed by economic, employment and ecological busts unless new uses of beetle-kill wood are found and promoted along with economic and ecological diversification (BC Progress Board December 15, 2005). The Wood Products Industry Advisory Committee of the BC Competition Council (led by the province’s largest forest companies) recently admitted that “there is significant uncertainty about what scale of manufacturing . . . will be able to survive the post-beetle era” and that huge amounts of capital and innovations in new forest tenures will be required (BC Competition Council March 2006). Two other resource sectors, tourism and agriculture/range, are likely to be affected in the short and medium terms by mountain pine beetle, but the effects and possible industry response are far from clear. The Council of Tourism Associations (COTA) has been working with Cariboo-Chilcotin Beetle Action Coalition to ensure COTA’s long held policy positions on the mountain pine beetle, particularly on the quality of viewscapes and access to tourism areas, are incorporated into its tourism sector strategy, which will identify key priorities for supporting tourism in light of the pine beetle effects. The mountain pine beetle is also expected to have implications for the availability of cattle range in BC. The Ministry of Agriculture and Lands is revising a number of plans to account for MPB effects and the potential for increased range availability.

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E.5.2 Mining There are two operating metal mines located northwest of Williams Lake, Gibraltar and Mount Polley, collectively employing over 580 people. Gibraltar is owned by Taseko which acquired the property in 1999. Mining began on the site in 1919, and the present mine was commissioned in 1972 (InfoMine). It is an open pit mine producing copper and molybdenum. The mine shut down in 1998 due to low metal prices. Taseko resumed operations in 2004 amid strong metal markets. Gibraltar is undergoing a major, multi-phase expansion and modernization program, with a budget of close to $500 million. Over the next 2½ years annual production will increase to 180 million pounds of copper, a 250% increase over today’s production. The improvements, along with new drilling programs, have extended the mine life to 17 years7. Average employment is 266 persons on payroll and 30 persons on contract (PriceWaterhouseCoopers 2006). The mine is located about 65 km north of Williams Lake. Taseko is working with Cominco to determine the feasibility of developing a hydrometallurgical copper refinery at the Gibraltar mine site. The development of a refinery at the Gibraltar Mine site could add 50 new operating jobs to the site (City of Williams Lake 2006). Imperial Metals Corporation owns and operates the Mount Polley gold-copper mine which is centred between Bootjack and Polley Lakes near the town of Likely. The mine opened in June 1997 and will employ 250 when in full production. In the fall of 2001 mining was suspended at the site due to low metal prices. The mine reopened in the fall 2005 and is currently in full operation. The mine has proven and probable reserves of 40.98 million tonnes grading 0.448% copper and 0.318 g/tonne gold (Imperial Metals 2006). The company designed a heap leach test program for 2007 and, if this process is economical, it will be considered for the 14 million tonnes of oxidized ore in the Springer zone. The company also continues to explore on its two mining lease adjacent to the mine to further expand the site. The QR mine mill (Quesnel) was commissioned in September 2007 and conducted its first gold pour in November, 2007. This former Kinross property is a small operation with a 42 man camp and an expected mine life of about five years. In addition to the Prosperity Property, other mineral exploration and mining projects are being considered in the RSA. Two projects, Cariboo Gold (Wells/Barkerville) and Bonanza Ledge (Quesnel), are under EA review. Past and ongoing metal exploration properties include Spanish Mountain and the Taseko Project (Galore Resources). Industrial mineral exploration projects include Nazko Lava and Dialite Industries. The continued operation of the current mines and opening of new mines suggests the mining industry’s contribution to the region’s economy will grow in the future, provided economic conditions and mineral prices remain favourable.

7 Reserves are reported by Taseko Ltd. at 2005. Proven and probable reserves are reported to be one billion pounds of copper. At a production rate of 100 million pounds per year, these resources would be recovered in about 10 years. Measured and indicated reserves are 3.4 billion pounds of copper, or about another 30 years of operations and the current mill capacity. Reserves reported at http://www.tasekomines.com/tko/Gibraltar.asp March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 2-66 Prosperity Gold-Copper Project

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E.5.3 Other Sectors Other than the projects noted in Table 2-44, the nature and scale of new investments and initiatives in the RSA in key economic base sectors is open to debate. Once the region obtains and invests planned beetle fund money from the federal and provincial governments, future scenarios for agriculture, tourism, energy and manufacturing will be more evident. The tourism industry is expected to maintain its current level contribution to the economic base, but like forestry, it will experience setbacks because of the MPB devastation and may not be able to grow enough to compensate for future expected declines in forestry. Visitations levels to the Cariboo region have not grown appreciably over the last 10 years and some important sub-sectors like fishing and hunting are experiencing declining participation rates continent-wide. The fishing lodge sub-sector has lost much capacity over the last decade and although the resource remains strong, the number of visitors has declined. In the eyes of BC, Alberta and Washington travellers that make up the bulk of regional visitors, the Cariboo is a fishing and hunting destination–changing that narrow position and diversifying into other outdoor and built products will be a major challenge, for all communities, including First Nations. The concentration of visitation in the peak summer months creates cash flow problems for many industry operators and limits the amount of capital that can be investment in product and market expansion efforts. Even so, municipalities like Williams Lake have made major commitments to their tourism infrastructure since 2004 and are increasing their marketing efforts aimed at boosting visitation and overall tourism activity. Agriculture’s value as historical reference point and influential lifestyle in the Cariboo of today is beyond dispute. However, its contribution to the economic base is relatively minor and the composition of the industry in terms of products and activities has changed little since early settlement. Production values, employment and income are attributable mainly to livestock and associated forage activity and despite many efforts over the years at increasing the value-added component (e.g. abattoirs, greenhouses), the local industry has neither the capital, infrastructure nor the critical business/institutional mass to substantially change baseline conditions. Energy production may have a much larger role to play in the future economy, but most projects remain in preliminary research or development phases and may never come into production. Of the 37 major projects in the Cariboo Development Region, only one is an energy project. But the considerable volume of un-utilized wood waste from the MPB, and established hydrocarbon reserve potential could be the foundation of a future economic base.

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Section 3: Social Issues

3 Social Issues

This section addresses the range of social issues potentially associated with the Prosperity Project, particularly social issues related to communities. Economic issues are assessed in Section 2. Effects on community and health services are assessed in Section 4. Potential effects on other resource uses are assessed in Section 5.

3.1 Scope of Assessment for Social Issues The purpose of this assessment, along with the assessment of economic issues, is to allow an informed evaluation of social and economic benefits associated with development of the Project and its costs. Social issues relate to the Project’s potential positive and negative effects on various social conditions, which, in this context, include changes in the size and characteristics of the community population, matters related to housing, and the need to expand public infrastructure and services. The relationship of social issues to the Project is often indirect and hence the Project proponent’s ability to manage the effects (i.e., enhance positive influence, mitigate negative ones) may be limited. In addressing the social issues, the context is important as this will often influence the assessment of significance. For instance, the Project’s implications for community services depend on the availability of existing capacity or the ability to easily expand it. This context is addressed in the presentation of base line information.

3.1.1 Regulatory Setting The requirement to assess the social implications of the Project was identified in Section 7.4 of the PRS and Section 7.2 of the EIS Guidelines. The specific social issues that were addressed in this Report included population, workforce settlement and housing, transportation and traffic, and community services. There is a variety of legislative, statutory and policy instruments governing the provision of these services to mine workers and their families, or in the case of transportation, to the mine operator and its contractors. Housing and community services are subject mainly to local and regional government control while highway transportation is the purview of the Ministry of Transportation. The regulatory framework is seldom an influential consideration of social effects assessment as it applies mostly to private and public service providers and not the Project proponent. When a mine project is implemented it is typically the private sector furnishing housing and the government sector providing services for transportation and most community services.

3.1.2 Key Issues for Social Issues As discussed in the PRS and the EIS, key social issues concern change in the local and regional population and its characteristics. In turn, this could spur increased demand for housing, increased need for a range of public services, and greater use of highway network. The Project is expected to result in social effects at the local and regional scale during construction, operations and decommissioning (Table 3-1).

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Interactions between the Project and social issues are considered for the major Project phases, for which it is possible to reasonably characterize and measure changes in workforce and population. As noted in the labour market analysis, the Project will require labour inputs during construction and operations. These requirements are substantial relative to the local and regional labour force. This would suggest that a large portion of the potential work force do not presently reside in the region. Prospective employees and their dependents will re- locate to the area, thereby increasing the demand for a range of public and private services. However, even if the Project were to satisfy all its labour needs from existing residents, the jobs they presently hold would become vacant. These would be filled by new residents and local unemployed. As a result, except where otherwise long-term unemployed persons currently resident are hired by the Project, the Project will serve to increase the population. The increment in population creates a need for new housing units, increased transportation use and an increased demand on community services. This effect mechanism is assumed to hold true for the entire workforce, including First Nations. As explained in the labour market analysis, the majority of First Nations’ workers are expected to be drawn from the off-reserve membership, mainly in Williams Lake and area. These workers would then contribute to the quantum of effects for the entire workforce. For those workers who would be residing on-reserve we have made some preliminary observations but are unable to confidently assess potential effects. Regarding traditional use activities, the assumption here is that the Project will have implications for First Nations interests and that these are primarily of a socio-community nature. Current uses of a commercial or quasi-commercial nature that have a traditional use aspect, such as trapping and agriculture, are addressed in Section 5.

Table 3-1 Interaction of the Project with Social Issues Project Activities/Physical Works Project Description Reference for Activity VEC Construction and Commissioning Fisheries compensation works construction Project Description and Scope, Vol. 3, Sec. 8 0 Water diversion Project Description and Scope, Vol. 3, Sec. 6 0 Construction sediment control Project Description and Scope, Vol. 3, Sec. 6 0 Access road construction and upgrades Project Description and Scope, Vol. 3, Sec. 6 1 Camp construction Project Description and Scope, Vol. 3, Sec. 6 1 Site clearing (clearing and grubbing) Project Description and Scope, Vol. 3, Sec. 6 0 Soils handling and stockpiling Project Description and Scope, Vol. 3, Sec. 6 0 Construction: plant site and other facilities Project Description and Scope, Vol. 3, Sec. 6 1 Lake dewatering Project Description and Scope, Vol. 3, Sec. 6 0 Starter dam construction Project Description and Scope, Vol. 3, Sec. 6 1 Sourcing water supplies (potable, Project Description and Scope, Vol. 3, Sec. 6 0 process/TSF) Site waste management Project Description and Scope, Vol. 3, Sec. 6 0 Clearing of transmission line ROW Project Description and Scope, Vol. 3, Sec. 6 0 Construction/Installation of transmission line Project Description and Scope, Vol. 3, Sec. 6 0 Vehicular traffic Project Description and Scope, Vol. 3, Sec. 6 1 Concentrate load-out facility near Macalister Project Description and Scope, Vol. 3, Sec. 6 0 (upgrades to site) Operations Pre-production and production Project Description and Scope, Vol. 3, Sec. 6 2

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Table 3-1 Interaction of the Project with Social Issues (cont’d) Project Activities/Physical Works Project Description Reference for Activity VEC Crushing and conveyance Project Description and Scope, Vol. 3, Sec. 6 2 Ore processing and dewatering Project Description and Scope, Vol. 3, Sec. 6 1 Tailing storage Project Description and Scope, Vol. 3, Sec. 6 0 Waste rock stockpiles Project Description and Scope, Vol. 3, Sec. 6 0 Potable and non-potable water use Project Description and Scope, Vol. 3, Sec. 6 0 Site drainage and seepage management Project Description and Scope, Vol. 3, Sec. 6 0 Wastewater treatment and discharge Project Description and Scope, Vol. 3, Sec. 6 0 (sewage, site water) Water release contingencies for extended Project Description and Scope, Vol. 3, Sec. 6 0 shutdowns (treatment) Solid waste management Project Description and Scope, Vol. 3, Sec. 6 0 Maintenance and repairs Project Description and Scope, Vol. 3, Sec. 6 1 Concentrate transport and handling Project Description and Scope, Vol. 3, Sec. 6 1 Vehicle traffic Project Description and Scope, Vol. 3, Sec. 6 1 Transmission line (includes maintenance) Project Description and Scope, Vol. 3, Sec. 6 1 Pit dewatering Project Description and Scope, Vol. 3, Sec. 6 0 Low-grade stockpile processing Project Description and Scope, Vol. 3, Sec. 6 1 Concentrate load-out facility near Macalister Project Description and Scope, Vol. 3, Sec. 6 1 Closure Reclamation of low grade stockpiled material Project Description and Scope, Vol. 3, Sec. 6 0 Reclamation of waste rock stockpiles Project Description and Scope, Vol. 3, Sec. 6 0 Tailing impoundment reclamation Project Description and Scope, Vol. 3, Sec. 6 1 Pit lake, Prosperity Lake and TSF Lake filling Project Description and Scope, Vol. 3, Sec. 6 0 Plant and associated facility removal Project Description and Scope, Vol. 3, Sec. 6 2 Road decommissioning Project Description and Scope, Vol. 3, Sec. 6 1 Transmission line decommissioning Project Description and Scope, Vol. 3, Sec. 6 1 Post-closure Discharge of tailing storage facility water Project Description and Scope, Vol. 3, Sec. 6 0 Discharge of pit lake water Project Description and Scope, Vol. 3, Sec. 6 0 Seepage management and discharge Project Description and Scope, Vol. 3, Sec. 6 0 Ongoing monitoring of reclamation Project Description and Scope, Vol. 3, Sec. 6 0 Interaction of Other Projects and Activities Project Planning and Alternatives Logging 2 Assessment, Vol. 2, Sec. 7 Project Planning and Alternatives Ranching 1 Assessment, Vol. 2, Sec. 7 Project Planning and Alternatives Irrigation 0 Assessment, Vol. 2, Sec. 7 Project Planning and Alternatives Tourism and recreation use 1 Assessment, Vol. 2, Sec. 7 Project Planning and Alternatives Trapping 1 Assessment, Vol. 2, Sec. 7 Project Planning and Alternatives Transmission Corridor Considerations 0 Assessment, Vol. 2, Sec. 7 Project Planning and Alternatives Mining and gravel extraction 1 Assessment, Vol. 2, Sec. 7

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Table 3-1 Interaction of the Project with Social Issues (cont’d) Project Activities/Physical Works Project Description Reference for Activity VEC Traditional Use First Nations Vol. 8, Sec. 2 0 Project Planning and Alternatives Community Infrastructure/Development 1 Assessment, Vol. 2, Sec. 7 Accidents, Malfunctions and Unplanned Events Additional Requirements Pursuant to CEAA, Fuel /chemical spill–land 0 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Fuel /chemical spill–water 0 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Pipeline Failure 0 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Concentrate spill–land 0 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Concentrate spill–water 0 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Road culvert failure 0 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Excessive water in TSF 0 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Loss of power to TSF seepage recovery 0 Vol. 9, Sec. 2 NOTES: 0 = No interaction 1 = Interaction occurs; however, based on past experience and professional judgment the interaction would not result in a significant environmental effect, even without mitigation; or interaction would not be significant due to application of codified environmental protection practices that are known to effectively mitigate the predicted environmental effects. Details on justification for this rating are provided in the issues scoping section 2 = Interaction may result in a significant environmental effect; potential effects are considered further in the EA

During the construction phase, workers will be housed in camps on-site and this will largely negate the short term social effects. The construction industry workforce is mobile, and will typically take up short-term residence where the work is and return to their permanent residence when the job is done. While the on-site camp will continue during operations, the experience of other semi-remote mines is that a proportion of the labour force will re-locate their households to a nearby community that has a range of community amenities, such as Williams Lake. It is noted that the Project interaction with the community and the social issues addressed here are mainly beneficial. The issues are manifestations of improving economic conditions, and of individuals choosing to improve their circumstances. The increment to population, to the extent it diminishes the level of services to existing residents, suggests a social cost. But this should be short term as the service capacity is expanded to at least restore the previous service level. Nevertheless, as the mine operation winds down, some negative social issues should be expected and will need to be addressed. The early identification of social issues is important, since once anticipated they can be appropriately managed. It is also noted that non Project-related events will give rise to social issues, which could amplify or negate the Project effects. For example, the Project would lessen the negative March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 3-4 Prosperity Gold-Copper Project

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effects caused by a general out-migration of the population due to contracting economic conditions (e.g., reduced employment as a result of the mountain pine beetle). Interaction between accidents and malfunctions and social variables are not expected. The primary link between social issues and the Project is employment and it is highly unlikely that an accident or even series of accidents will affect this parameter. The PRS and the EIS identified transportation issues to include use of highway and rail facilities. Project road traffic on the access road and Highway 20 will be noticeable, as will the incremental railcar use at the Gibraltar Mines rail load-out facility near Macalister. The three primary effects of the Project on Social Issues are: • the extent to which the Project may affect the size and/or characteristics of the local and regional population • how this change may be reflected in demand, or increased use of private and public services and infrastructure • the extent to which the Project may increase demand for some services (e.g. mainly transportation) Effects on population size and characteristics are expected to be most pronounced during Project operations and mine closure. The use of a construction camp, and the likelihood that construction workforce will not permanently relocate to the study area, suggests there will be negligible population effects during this phase. In contrast, the operations phase is expected to result in increased long-term employment for local residents, as well as encourage in-migration to population centres like Williams Lake. The Project may increase the use of public services and infrastructure during construction (e.g., increase traffic on Highway 20 and the Mine Access Road) and during operations (community services such as water, sewer, protection, social services) as a result of in- migration of workers and their families, and the demands of the Project itself in the movement of goods, supplies and production. The out-migration of households and cessation of supplies and goods shipment may trigger an adjustment in the quality or quantity of housing and community services when the mine closes.

Table 3-2 Potential Environmental Effects to Social Issues Associated with the Project Potential Socio Economic Effects

Project Activities and Physical Works Existing Demand Demand Capacity Capacity Level and Increment Change in Relative to Relative Population Characteristics Characteristics Operations Pre-production and production 9 9 Crushing and conveyance 9 9 Closure Plant and associated facility removal 9 9

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3.1.3 Selection of Key Indicators and Measurable Parameters Based on the PRS and the EIS, the key social issues that will need to be addressed for the Prosperity Project are: • change in the population structure • change in the workforce settlement and housing • change in transportation needs and traffic • change in needs for community services These effects and the measurable parameters used to assess these effects are described below and in Table 3-3.Further baseline information describing these effects is provided in Appendix 3-A to 3-E.

Table 3-3 Social Effects and Measureable Parameters Social Effect Rationale for Selection Measurable Parameters Baseline Data for EA Change in the • With a sizeable • Source of workers • Labour force profile population workforce, the Project • Labour force trends • Population and structure will affect local • Population change demographic profiles population and almost all • Demographic change • Population growth related socio-economic components effects • Population projections Change in the • With a limited inventory • Housing demand • Regional housing workforce and of housing stock, the • On-site housing supply stock settlement and region may experience • Local and regional • Ownership and rental housing difficulties housing supply profiles accommodating the • Occupancy costs • Structure type construction and • Costs and assessed operations workforces values • Rental vacancies and costs • Future residential development activity Change in • Shipments of goods and • Transportation demand • Traffic volumes transportation people to and from the estimates of the Project • Road and highway needs and traffic mine, as well as • Transportation supply capacity concentrate shipments to for each mode • Accident rates load-out facilities, will • Capacity of other alter existing traffic modes (rail, air) conditions and infrastructure Change in needs • Any effect on population • Demand and supply of • Land for development for community by the Project will have services • Recreation amenities services implications for the • Other municipal services that population infrastructure will be expected to • Police and justice consume • Education system capacity Change in • Legally requirement • Cultural and heritage • Existing ethnographic traditional use sites and activities studies patterns or values affected • Supreme Court case documentation • Some primary feedback on issues

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3.1.3.1 Population The labour market analysis (Volume 6, Section 2) indicates that there are not sufficient suitably qualified persons readily available in the resident labour force to accommodate all of the Project’s labour requirements. It is therefore likely that non-residents will be attracted to the incremental employment opportunities created by the Project. The in-migrant population is measured in terms of the total number of individuals and their likely characteristics. Population change was measured as the difference between the number of in-migrants and out-migrants (i.e., in-migrants minus out-migrants). Absolute numbers of in-migrants and out-migrants were also considered as there can be considerable flux with persons moving into and away from the LSA, but perhaps with little change in the total population. Population characteristics that were considered included age, marital status, and household size. Because the quantification of population changes and characteristics requires forecasting of future conditions, considerations and assumptions adopted in preparing the forecasts are described. The effects of population changes will be most clearly manifested at the local level. In contrast, the magnitude of the change is of little consequence at the provincial and national levels, since the persons moving to, or away from, the LSA are widely distributed and small relative to receiving population.

3.1.3.2 Workforce Settlement and Housing The Project’s workforce will take temporary or permanent accommodation in the LSA. The accommodation is described in terms of its type (camp, single detached dwelling), number of units, and location. The total number of units is predicted from the Project labour requirements, the population forecast and a consideration of workforce settlement choices by similar projects, and company policy. The net increase in new housing units is the basis for predicting effects on community services and work force related traffic.

3.1.3.3 Transportation and Traffic The Project will utilize road, rail and air transportation modes. The incremental Project related traffic is measured in terms of increases in trips relative to current/project traffic volumes, existing system capacity and safety implications. For Highway/Road traffic, the end points of the trips are primarily in the LSA. Rail (i.e., the shipment of concentrate) and air transportation have trip points outside the LSA at marine terminal in Vancouver and Vancouver International Airport, respectfully.

3.1.3.4 Community Services The PRS identified the following community services for consideration: • commercial, retail and industrial services • recreation • basic infrastructure (water, sewer, transportation) • police • fire • justice • education

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For the respective service, the PRS requires a description of the existing services in quantitative and qualitative terms, using metrics appropriate to the service, including projections of future capacity additions, with and without the Project. As community services generally expand to meet the needs of a growing population, the Project effect might be to add capacity or expand services sooner than might have been the case had the Project not proceeded. The labour market analysis, the population forecast and the workforce settlement forecast were used to determine the incremental Project demand for community services. Community health and social services are not included in this section but are addressed separately in Volume 6, Section 4.

3.1.3.5 Cultural Heritage The PRS did not identify a First Nations’ cultural heritage or traditional use assessment as part of the social issues section. It did, however, specify a context for the assessment of First Nations’ issues as directed by the CEAA. The current act states that community and traditional knowledge may be used in an effects assessment and further, that any effect of any change on: the current use of lands and resources for traditional purposes by aboriginal persons; or any structure, site or thing that is of historical, archaeological, paleontological or architectural significance; should also be considered.

3.1.4 Temporal Boundaries The temporal boundaries for social issues are similar to those described for economic issues, particularly the economic effect of changes in the labour market. The onset of construction will bring a burst of employment, income and government-related activity which collectively will draw in-migrants to the area to the extent attractive employment opportunities are available. However, since the construction phase workforce will be accommodated on-site and will likely not change their permanent residency, social issues may not change much from baseline conditions. During the operations phase, employment, income and government-related activity, as well as associated measures for the social key indicators are expected to increase as the mine expands and reaches its steady state operating capacity. As the mine winds down, the direct work force will scale down, which will be reflected in declining values for many of the social indicators.

3.1.5 Spatial Boundaries The LSA is the area within which Project effects can be predicted with a reasonable degree of accuracy and confidence and where effects are likely to be most concentrated. The LSA includes the area from Williams Lake (and surrounding rural areas in D, E, F) to the mine site, the rural areas and communities near the mine site (Alexis Creek , Big Creek, Hanceville, and Riske Creek which are in rural areas, J and K) (Table 3-4, Figure 3-1). Electoral area E is the area immediately south of Williams Lake, electoral area F is to the south of Williams Lake while electoral area D can be found immediately north of Williams Lake. The mine site is located within electoral area K with electoral area J bordering electoral area K to the west (Taseko Lake forms part of the boundary between electoral areas J and K).

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The RSA is the entire Cariboo Regional District and includes the local area as well as the remainder of the rural portion of the Cariboo Regional District, Quesnel and 100 Mile (Table 3-4, Figure 3-1). The “province” includes the local and regional area along with the remainder of the province. The “national” study area includes the first three study areas as well as the remainder of the country.

Table 3-4 Spatial Boundaries for Social VSCs Social Effect LSA RSA Other Population and Williams Lake, Areas J, K, D, E, F Cariboo Regional District Demographics Housing Williams Lake, Areas J, K, D, E, F CRD Transportation Williams Lake, Areas J, K, D, E, F CRD Province Community Services Williams Lake, Areas J, K, D, E, F CRD Cultural Heritage Tsilhqot’in Nation TN and Upper Secwepemc Nation

The study areas for First Nations’ cultural heritage issues do not conform to the Regional District political boundaries above noted. The LSA is considered to be the asserted traditional territories of the Tsilhqot’in Nation (TN) while the RSA incorporates the asserted traditional territories of the Upper Secwepemc Nation (USN).

3.1.6 Environmental Effects Rating Criteria for Assessing Effects Significance Project effects on resource were characterized using seven criteria: direction, magnitude, geographic extent, frequency, duration, reversibility and socio-economic context here possible, quantitative measures were used to characterize each effect resource use. For example, for housing, magnitude can be quantified in terms of the proportion of new housing demand to existing supply. For transportation, it may be the volume and capacity of the road network. Where quantitative measures could not be used, qualitative categories were used as noted in the paragraphs that follow.

Direction • Lower—the effect results in lower use or demand. • Higher—the effects results in a higher use or demand. • Neutral—the overall effect is neutral (i.e., does not affect use or demand) although this may involve separate offsetting positive and neutral effects.

Magnitude • Low—the effect is such that it cannot be distinguished from normal base case variations. • Medium—the effect will result in a demonstrable change in use or demand, but still remain within recent historic norms and system or market capacity for response. • High—the effect results in changes of use or demand that are beyond historic norms or then-existing system/market capacity.

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Figure 3-1 Regional and Local Study Areas

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Geographic Extent • Local—the effect is limited to rural areas surrounding the Project components and Williams Lake. • Regional—the effect extends to the Central-Cariboo Chilcotin region. • Provincial—the effect extends to other areas or communities of the province.

Duration • Short-term—the effect does not last long enough to induce a permanent increase in supply or capacity but is more likely to be managed through contingency measures and mitigation. • Long-term—the effect lasts beyond a typical planning cycle and will result in increased supply or capacity to meet demand.

Frequency • Continuous.

Reversibility • Reversible—effect is easily reversible. • Irreversible—permanent beyond the post-closure phase.

Socio-economic Context • Developed—communities and rural areas have a history of settlement activity, services and infrastructure.

3.1.7 Influence of Consultation on the Assessment The original PRS (1998) and subsequently the EIS Guidelines, developed collaboratively by regulators and the Proponent, identified the disciplines to be considered, the key elements and values to be addressed and the overall scope of the environmental and socio-economic effects to be assessed. Subsequent consultations with regulators and stakeholders have further refined the scope of the assessment of social effects.

3.1.7.1 Working Groups During the initial phase of the Project, several technical working groups were struck to facilitate communication between regulators, the Proponent and their consulting team. An Economic Sub-Group was established and tasked with overseeing a Multiple Accounts Assessment of economically feasible mine options. The Project was deferred before the group became involved in the broader socio-economic effects assessment. In April 2007, a technical working group meeting was held in Williams Lake to reconstitute the working groups. While a socio-economic working group of five government representatives was proposed, it was never formally established and has not convened to date.

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3.1.7.2 Previous Baseline In addition to the factual data collected, the partially-completed socio-economic baseline work undertaken prior to 1999 provided some context for resource-related issues and concerns as expressed by the stakeholders contacted at that time. Taseko commissioned an ethnographic study of the Fish Lake area in 1994. This study, which included consultations with Xeni Gwet’in elders, is the foundation of the cultural heritage assessment.

3.1.7.3 Recent Consultations A number of meetings and discussions with regulators and local stakeholders were conducted in 2007 to scope the assessment, fill in data gaps, identify effects and discuss potential and significant effects. A detailed discussion of these discussions and contacts is provided in Volume 2, Section 8.2. This consultation was supplemented by a review of minutes of meetings held between the Proponent and community groups over the last year and a half. Twenty-two meetings were held and reported out on. These minutes were useful for identifying important issues and concerns. The majority of these meetings were with First Nations’ communities.

3.2 Baseline Conditions for Social Issues The collection of baseline data on social issues will help characterize prevailing conditions and provide benchmarks for identifying incremental effects associated with the Project. Baseline conditions include current conditions, as well as predictions on how these conditions might change in the future. For instance, if the future population of key communities is expected to increase or decline due to changing economic conditions (e.g., expected mine closure, or mill opening), these changes will have implications for assessing Project effects. For example, changes in population will need to be considered in terms of whether they are adding to an expanding labour pool or offsetting a declining labour pool. The first step in approaching this baseline was to review the socio-economic data previously assembled prior to the Project being put in abeyance in 1999, and determining its current validity. As most social indicators are quite dynamic, data were considered out of date and not appropriate for the current analysis. Current baseline information for the social KIRs was obtained from a number of sources including data requests to government agencies, downloads from government and public agency websites, a review of literature (e.g., studies, reports and research), and selected interviews to address gaps or obtain clarification. The economy in the LSA is heavily dependent on production of resource related goods (e.g., ranching, timber) for employment, incomes (family and community) and overall community wealth and stability. These economic characteristics have implications for social issues. For instance, the seasonal and cyclical nature of basic industries leads to fluctuating economic activity, population levels, and demand for social services. The regional area is largely rural, sparsely populated, with several small settlements and Williams Lake as the regional service centre. These characteristics strongly influence population changes and population characteristics, and are an important context in considering Project effects.

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The Mountain Pine Beetle (MPB) epidemic, and its associated salvage and control programs, will be a major factor when forecasting future economic and social conditions. The Cariboo-Chilcotin is one of the most forest-dependent regions of the province, and while forestry is now buoyed by uplifts in the Crown timber supply, future employment declines are inevitable and may result in a fundamental shift in the region’s economic base and social conditions, including the potential for population decline.

3.3 Project Effects Assessment

3.3.1 Population

3.3.1.1 Scope of Assessment for Changes in Population Changes in the size and structure of the local population and the characteristics of the new residents, provides the impetus for the other social issues identified in the PRS and EIS Guidelines. The expected changes in population are driven by the labour market analysis (Section 2), where a forecast of the number of employment opportunities is presented. The population forecast is derived by adjusting the employment forecast for the number of local opportunities, and assumptions regarding hiring existing unemployed residents, average number of dependants per employee, etc. The resulting population and household forecast provides the basis for considering the adequacy of existing housing stock, community services, and the like. The key issues relate to whether the Project will draw a substantial number of new residents to the LSA, and how these changes in population numbers and characteristics will affect the existing residents and social conditions. Project induced population changes were measured relative to expected population growth of the LSA population, as well as certain characteristics, such as income level, gender, and age. These characteristics, and to the extent that the in-migrant characteristics differ substantially from the baseline population, have implications with respect to the demand for private and public services. The Project’s population effects are expected to be more substantial during its operating life. The scaling back of the population as the mine winds down also has implications. The spatial boundaries are the LSA as defined in Table 3-4, excluding the mine site camp. Guidelines for characterizing the residual effects of the Project on population are discussed in Section 3.1.6. Relatively large and abrupt changes in population can create substantial dislocations to the baseline population. While population changes are often the first observed response, the actual effect on local residents relates more to demand for housing, transportation and other services. This being the case, a “threshold” does not pertain so much to the resident human population as it does to the capacity of public and private services relative to the incremental changes in demand.

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3.3.1.2 Effects Assessment Methodology for Changes in Population Population trends and characteristics within the LSA were available from Census information and other government sources. BC Stats (2006) also forecasts population size and certain characteristics for the next 25 years. The Project’s increment to population was developed from the labour market analysis. This analysis identifies the magnitude of “imported” labour required to satisfy the Project’s direct labour requirements. It also estimated other employment opportunities associated with the Project and the availability in the resident population to satisfy the needs. The likely characteristics of the in-migrant labour were then characterized using information from other mining and industrial projects. The Project related population is combined with the forecast values to identify the change in population numbers or characteristics that might occur. Other important events that can be reasonably expected to occur (e.g., other mines closing) are qualitatively addressed.

3.3.1.3 Baseline Conditions for Population and Characteristics

Existing Conditions At the time of the most recent Census in 2006, the population of the LSA was about 29,000 persons and the regional population totalled some 70,000 persons (BC Stats 2006). While the population at both the local and regional levels have been increasing since 2001, the growth rate is well below the provincial average as shown in Table 3-5.

Table 3-5 Census Population and Comparative Growth Rates 1986 1991 1996 2001 2006 Cariboo Regional District 62,469 62,855 69,835 65,659 62,190 Percent change 0.62% 11.10% -5.98% -5.28% LSA (Cariboo Chilcotin LHA) 26,936 26,257 28,220 28,528 26,918 Percent change -2.52% 7.48% 1.09% -5.64% Williams Lake 10,635 10,672 10,895 11,153 10,744 Percent change 0.35% 2.09% 2.37% -3.67% British Columbia (percent 12% 15% 5% 4% change) SOURCE: BC Stats 2006, http://www.bcstats.gov.bc.ca/data/pop/pop/estspop.asp

The LSA encompasses Williams Lake, the area service center, and several unincorporated electoral areas of the Cariboo Regional District. The census population for these regions within the local area is summarized in Table 3-18 (Appendix 3-A). Overall, the data indicates that the regional population declined steadily over the past decade, while the LSA population has also experienced negative growth in the last five years. This is due to a negative net migration exceeding the natural increase in the population. The municipal population of Williams Lake has a similar profile as the LSA population, but with less variation. The municipal population in 2006 was slightly below that of 1996. A large portion of the regional population is located in Williams Lake, or in the unincorporated areas close to the community. This spatial distribution of the local population is shown in Figure 3-9 (Appendix 3-A). March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 3-14 Prosperity Gold-Copper Project

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The LSA’s on reserve First Nation population in 2001 was 2,971 persons, or roughly 10% of the LSA population (Appendix 3-A, Table 3-19). In 2008, the total on reserved First Nations population had decreased to 2239 persons, although, the total on reserve and off-reserve First Nation population had risen to 5761. Of the total in 2008, the six First Nations in the Tsilhqot’in Nation (in the LSA) accounted for 58% of the total First Nations population8. The Upper Secwepemc9 made up 42% of the First Nations population. In 2008, 56% of the LSA’s First Nation population was resident off-reserve and 44% on-reserve. Since 2001, the trend has been for increasing proportion of the First Nation population residing off-reserve. The determinants of population growth are the rate of natural increase (births minus deaths) and net migration (which may be positive or negative). The rate of natural increase is related to the age of the population, balance of males and females, and other factors affecting fertility rates. These factors tend to change slowly overtime. For example, the median age of the LSA was 32.5 years in 1996, increasing to 39 years in 2006. While the population is aging, it is still younger than the provincial median age. In contrast, net migration is more dynamic and less easy to predict. A primary reason to migrate for the working age segment of the population is to enhance employment (and income) prospects. As is evidenced in Figure 3-2, the rate of natural increase for the LSA has been positive over the observation period, while net migration has been strongly negative in some years, positive in others. The growth in total population in the mid- 1990s is evident in the figure, where positive net in-migration reinforced the positive natural increase. Similarly, in recent years the level of net out-migrants has been greater than the natural increase, leading to an overall decline in the total population. The fluctuation is probably linked to the changing economic prospects, relative to other regions in British Columbia and western Canada. It should also be noted that rate of natural increase is observed to be declining, reflecting the LSA's aging population. The age of the local and provincial populations are aging relatively quickly, particularly with the rapid decline in the under 19 population. Currently, it is the older working age cohort of adults that is 45 to 65 that is growing quickest. However, the LSA has a younger population than the province (see Appendix 3-A, Table 3-21). The baseline population’s education, martial and income characteristics are described in Appendix 3-B.

8 Includes the ?Esdilagh (Alexandria), Tl'etinqox-t' Govt. (Anaham), Tsi Del Del (Alexis Creek), Xeni Gwet'in (Nemiah), Yunesit’in (Stone), and Tl’esqox (Toosey first nations. 9 Includes the Stswecem’c (Canoe Creek), T’exelcemc (Williams Lake), Xat’sull (Soda Creek), Esketemc (Alkali), and Llenlleney’ten (High Bar) first nations. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 3-15 Prosperity Gold-Copper Project

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600

400

200

0 Natural Increase persons -200 Net Migration

-400

-600

-800 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006

SOURCE: BC Stats 2007

Figure 3-2 Record of LSA Natural Increase and Net Migration

Population Projections without the Project BC Stats prepares population forecasts that are based on projections of natural increases and migration. The forecast is a direct consequence of the assumptions adopted with respect to the rate of natural increase and net migration, and the balance between them. The natural increase is a long-term stable phenomenon, while net migration is sensitive to the economic cycle as noted above and other difficult to predict events. The relatively slow growth rate in the Local Health Area (LHA) is largely attributable to the decline in the natural increase. The downward trend was evident in the historic values seen in Figure 3-2. Net migration is forecast to be positive over the period, which results in strong population growth in the near term and offsets the decline in the natural increase in later years. Relative to the profile of net migration historically, the forecast values have a positive outlook for the region. With respect to economic assumption imbedded in the forecast, it is expected that timber harvests will decline from current levels with the liquidation of timber attacked by the MPB. A reduction in output from Gibraltar and Mt Polly are also imbedded in the forecast (BC Stats 2007).

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200

100

0

Natural Increase -100 persons Net Migration -200

-300

-400

-500 2006 2009 2012 2015 2018 2021 2024 2027 2030 2033 2036

SOURCE: BC Stats 2005

Figure 3-3 Forecast of Natural Increase and Net Migration (LHA)

Based on these assumptions, the local area population is expected to increase from about 26,916 persons in 2006, to about 27,223 in 2030. This is only about a 1% increase in population over the period. It is noted that imbedded in the general forecast is growth in the aboriginal population. The expected population for the Cariboo Regional District in 2030 is forecast to be about 1% less than its 2006 level. In contrast, the provincial population is forecast to increase almost 30% over the same period. The method for projecting population does not make explicit reference to specific projects, for instance whether the Prosperity Gold-Copper Mine is operating during the period. For the purposes of estimating population implications for the Project, it is assumed that it is not included. Hence Project-induced population will be in addition to the net migration the LSA is forecast to experience.

3.3.1.4 Assessment of Project Effects on Population

Effects of the Project on Population and Characteristics The Project’s effect on population is based on the direct labour requirements, and assumptions on how the requirements may be met. This matter is addressed in the Labour Market Analysis (Economic Issues Report). Observed industry experience, particularly that with the Gibraltar mine, was used as the basis for a number of the assumptions, such as place of residence and average family size, which have settlement and population implications. The population projection is intended to be broadly indicative of the nature and magnitude of potential Project effect, but it is not intended as a forecast of actual future conditions.

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The projection consists of a description of the number of in-migrants to the LSA, and where they may be expected to reside. During the construction phase, the work will be undertaken by independent contractors that will be housed on-site in a construction camp. Since the term of employment is necessarily temporary, it is common for construction workers to maintain their permanent residency. This may be in the LSA and RSA, or outside. While not working, it is assumed individuals will return to their permanent residence. For the labour market analysis, it was assumed that 50% of the construction employment would be filled by local residents. For the population forecast, it is further assumed that 50% of these jobs are filled by in-migrants (i.e., 25% of the total construction labour force will be added to the LSA population). The average household size of the LSA (2.5 persons) is adopted to predict total population increase. The largest increment to population is expected during the Project’s operating life. The characteristics of the Gibraltar labour force was applied for predicting the proportion of the labour force that would reside locally (i.e., 94%), the household size (2.4 persons) and likely settlement pattern (close-by mine site rural 12%, and nearest large town 82%). Embedded in the size and distribution of Gibraltar’s work force are first nations employees, which constitute about 12% of its workforce. For Prosperity, the closer proximity of a larger First Nations population and a larger number of contracting opportunities suggests a potential to increase this share, to perhaps 20% (Patterson 2008, pers. comm.). This could be composed of first nations persons from both on-reserve and off-reserve locations. The economic analysis identified the multiplier effects of the Project, the income created by re-spending of Project expenditures, and incomes in the local economy. This increase in economic activity creates new jobs, some of which will be filled by “in-migrants”. It is assumed that 75% of these positions would be filled by in-migrants.

1800

1600 Nearest Large Town

1400 Close Rural

1200

1000

800 persons 600

400

200

0

8 0 2 4 6 8 0 2 4 6 8 0 1 1 1 1 1 2 2 2 02 02 20 20 20 20 20 20 20 20 20 2 2 years

Figure 3-4 Project Population Forecast and Regional Distribution

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The adopted values are broadly consistent with operating experience of comparable mines in the Thompson/Okanagan and northwest British Columbia. The detailed model is shown in the Appendix and its results summarized in Figure 3-4. “Nearest large” town refers to Williams Lake and 150 Mile House area. “Close rural” refers to the rural areas and small settlements within a reasonable commute of the mine site such as Alexis Creek. A comparison of Figure 3-4 and Figure 3-3 indicates that the Project will induce greater in-migration than forecast by BC Stats, leading to an increase in the total population of the LSA. During the Project’s peak operating period from 2012 to 2022, it might be expected to increase the LSA population by 5–6%. As shown in Figure 3-5, this would return the LSA population to the level attained in about 2001.

29500

Without project 29000 With project

28500

28000 persons

27500

27000

26500

1 4 95 98 13 16 19 22 25 28 010 2 year

Figure 3-5 LSA Population Forecast With and Without the Project

Mitigation A growing population is generally correlated with increasing economic activity, higher standard of living, and increase opportunity, provided the increment to population creates more wealth than the added costs to the community of accommodating them. In certain cases, expansion of community infrastructure should be anticipated. This matter is addressed in each of the social effects, since the increased population will affect the other social effects. The relatively sharp increase in population at start-up and the decline as the mine winds down may create stress as there is relatively high rate of change. This effect can be mitigated by hiring existing residents that would not have otherwise been employed.

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However, given the skill requirement of the positions, there are limits to this measure. A reasonable level of local hire up-take, consistent with Taseko’s local hire program, is reflected in the population forecast. It is noted that an aggressive and effective program to train and hire local persons that would otherwise be less than fully employed would reduce the population gain from what has been presented here. In particular, the arrangement that Taseko might have with First Nations nearby the mine site could facilitate greater participation by those communities which would reduce the projected LSA population gain indicated here.

Characterization of Residual Project Effects on Population The magnitude of the Project’s effect on the LSAs aggregate population level is to return it the levels attained in early 2000. That is, in the range of 28,500 persons. With the Project, the LSA population would remain in this range for the 14 year period 2010– 2024. This would reverse the net out-migration experienced by the LSA in recent years. Hence, the expected increase in the local area population, in aggregate, is not outside recent experience. The implications with respect to how the population may be distributed with the LSA are addressed as community and housing effects. The LSA, as well as the Cariboo Regional District has, over the observation period, experienced population swings similar to that expected with the Project. The effect is reversible, although that may not be desirable in the context. The population decline at the end of mine life may be less than indicated if former employees elect to continue living in the area. The increment to the LSA population is expected to be most evident once operations begin, and persist until the mine is wound up. A large proportion of the construction workforce is expected to commute from outside the LSA; hence this Project phase will not greatly affect the local population level. Given these considerations, the Project effect on population is within recent experience.

Cumulative Effects The population of the LHA will continue to change, in response to natural increase and net migration. BC Stats long-term forecast incorporates these population parameters. The increment to population associated with the Project adds about 5.5–6% to the annual population value when the Project is operating years 3 to 14, and less in the other years. The most extreme case is if all of the Project direct and related employment was filled by new residents to the LSA. In that case, the Project would add about 7% to the LSA total population during the same time frame.

Determination of Significance The effects of the Project are expected to restore the LSA aggregate population to a level experienced in roughly 2001. It is offsetting the negative growth that has actually been experienced to 2006, and is augmenting the slow increase forecast for the local area by BC Stats in the Project’s absences. Whether this gives rise to significant beneficial or detrimental implications on the range of community services driven by population level are addressed in Community, Housing, and Social Services. These effects are examined in the remainder of this volume.

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Confidence in Predictions The population forecast is derived from a forecast of employment opportunities created by the Project and assumptions with regard to the response of the local, regional, provincial and national labour market to satisfy the demand. On balance, our assumptions relied more substantially on the extra-regional labour markets, which would lead to a higher forecast of population growth associated with the Project. This was intentional, as it will tend to somewhat overstate consequential negative social effects that might arise. Hence, if the effects are not large, a greater degree of confidence can be associated with the conclusion.

Follow-up and Monitoring As population growth is not considered a negative effect, no follow-up or monitoring is proposed.

3.3.2 Workforce Settlement and Housing

3.3.2.1 Scope of Assessment for Settlement and Housing The PRS and EIS Guidelines require an examination of the housing requirements and the evaluation of the settlement options for the construction, operation and closure of the Project. Specifically, the assessment should address: • the labour camp and infrastructure requirements for the different components of the Project • the need for off-site housing and the type of housing that may be required • residential development plans in local communities to estimate the future housing supply The primary issue of concern with respect to housing is that the housing needs of the Project’s employees and contractors are effectively satisfied without negatively affecting current residents to a substantial degree. The settlement options will involve a variety of housing types, including camp style and bunkhouse accommodation at the mine site, and apartment, and detached housing units within the LSA for resident workers. Developable residential lots are described in the baseline analysis. The Project workforce settlement needs will be material commencing with the construction phase, reaching a peak during operations and declining during the closure phase. Housing needs will be minimal during the post-closure phase. The concern post- closure is the ability of the future real estate or rental markets to absorb the vacated housing units, in the event that occurs. The location of the settlement options is the mine site and the LSA, including Williams Lake and the rural area around the mine as defined in Table 3-4. On-reserve housing is also addressed. Guidelines for characterizing the residual effects of the Project on workforce settlement and housing are discussed in Section 3.1.6. The Project definition includes workforce settlement and housing options and other policies that will influence the number of new housing units that may be required, as well March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 3-21 Prosperity Gold-Copper Project

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as where and when. These project proposals will be considered relative to the existing stock or developable potential as appropriate. If this analysis suggests a short or long term “housing shortage”, investment in new housing stock will likely be required. This value would be considered as the threshold for workforce settlement and housing effects.

3.3.2.2 Effects Assessment Methodology for Settlement and Housing The effects assessment involves the comparison of existing available residential units, combined with the number of accommodation units that will be provided by the Project, to the total accommodation requirements for the Project workforce and contractors. A deficit in housing stock may be met by building more units, employing individuals who already reside in the region or employing a larger proportion of persons not interested in re-locating to the LSA, or a combination of these three approaches. The options and abilities to shape the employees settlement decision varies with Project phase. Data on the existing housing stock and developable land base was obtained from the villages or municipalities within the Project area. The estimated number of workers and their respective settlement options and needs were determined from the Project description and detailed discussions with TML.

3.3.2.3 Baseline Conditions for Work Force and Settlement on Settlement and Housing The total RSA had approximately 9785 residential dwellings in 2001 (not including reserve housing). First Nations on reserve in the RSA add an additional 715 housing units to the total housing stock. Table 3-6 highlights the number of dwellings in each jurisdiction and whether they are owned or rented (not including reserve housing). The majority of the dwelling stock is owned by residents; however, in the City of Williams Lake and electoral area K of the Cariboo Regional District, there is a sizeable amount of rental housing stock. For on-reserve First Nations in the RSA, 30% own their own house while 22% rent and 48% is classified as band housing.

Table 3-6 Housing Number and Ownership for RSA and British Columbia in 2001 Percent Owned Percent Rented Total Number of Dwellings Dwellings Dwellings City of Williams Lake 62.2 37.8 4,335 Electoral Area D 83.3 16.7 1,235 Electoral Area E 85.0 15.0 1,705 Electoral Area F 86.3 13.7 1,870 Electoral Area J 78.1 21.9 370 Electoral Area K 64.2 35.8 270 Total Area 71.9 28.1 9,785 British Columbia 66.6 33.4 1,534,335 SOURCE: 2001 census

Table 3-7 outlines the type of dwelling structures that are in place in the RSA. Overall, the majority of housing is in the form of single detached houses. There is also a large volume of movable housing stock (i.e., house trailers). The City of Williams Lake has a

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large number of apartment accommodations. For on-reserve First Nations in the RSA 82% of housing is single detached dwellings.

Table 3-7 Occupied Private Dwelling by Structural Type (2001) Single- Semi- Row Apartment Other Movable Detached Detached House Dwelling House House City of Williams Lake 49.5% 4.8% 8.2% 25.7% 0.3% 11.5% Electoral Area D 71.8% 1.2% 0% 2.0% 0% 25.0% Electoral Area E 73.3% 0.6% 0% 2.9% 0% 23.2% Electoral Area F 85.3% 0.3% 0% 2.7% 0.3% 11.5% Electoral Area J 78.7% 1.3% 0% 1.3% 1.3% 17.3% Electoral Area K 76.0% 0% 0% 2.0% 0% 22.0% British Columbia 54.9% 3.0% 6.3% 32.7% 0.2% 2.9% SOURCE: 2001 census

Table 3-8 shows the number of dwellings by type for 2001 and 2005 and highlights the change in housing stock. The category “Williams Lake Rural” includes all of School District 27 minus Williams Lake. This includes three populated electoral areas outside the LSA (Electoral Areas G, H, and L). Overall, the housing numbers appear to provide a good representation in the change in housing stock over the 2001 to 2005 period by category type. The City of Williams Lake experienced a very modest increase in single family dwellings between 2001 and 2005 with an increase of 1.5%. Other dwelling categories have grown more robustly, but the key indicator is single family dwellings. In the surrounding rural areas, single family dwellings have increased marginally, with the majority of rural growth coming from an increase in residences on acreages.

Table 3-8 Change in Residential Properties by British Columbia Assessment Codes, 2001 to 2005 City of Williams Lake Total Williams Lake Rural Single Family Dwellings 2005 2,306 9,071 11,377 2001 2,273 9,044 11,317 Percent change 2001 to 2005 1.5% 0.3% 0.5% Condominiums 2005 350 0 350 2001 350 0 350 Percent change 2001 to 2005 0% 0% 0% Manufactured Homes 2005 522 28 550 2001 488 28 516 Percent change 2001 to 2005 7.0% 0% 6.6% Duplexes, Row housing & other Multi-Family Dwellings 2005 184 0 184 2001 179 0 179 Percent change 2001 to 2005 2.8% 0% 2.8% March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 3-23 Prosperity Gold-Copper Project

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Table 3-8 Change in Residential Properties by British Columbia Assessment Codes, 2001 to 2005 (cont’d) City of Williams Lake Total Williams Lake Rural Stratified Rental Townhouse and Apartments 2005 0 0 0 2001 0 0 0 Percent change 2001 to 2005 0% 0% 0% Residence on 2 Acres or more 2005 157 10,048 10,205 2001 142 9,887 10,029 Percent change 2001 to 2005 10.6% 1.6% 1.8% SOURCE: BC Assessment Authority 2007

Assessed values for single family dwellings in Williams Lake have risen by almost 30% over the past two years, reflecting a general upward trend in housing prices across the province. Housing in the rural part of the LSA is more difficult to forecast, given the diversity of dwelling types, particularly with the variation between homes on acreages and other housing stock. Information on two rural neighbourhoods (Table 3-9) shows a comparable rise in assessed values.

Table 3-9 Assessed Values of Detached Single Family Dwelling, 2001 and 2005 2004 2006 Percent Change 2004–2006 City of Williams Lake South Lakeside in City $112,300 $146,000 +30.0% Columneetza–East of Western Ave. $124,200 $157,000 +26.4% Fox Mountain residential acreages $187,600 $241,000 +28.5% Rural LSA Flett/Chimney Valley residential acreage $163,000 $199,000 +22.1% Borland Valley/150 Mile residential acreage $183,500 $232,000 +26.4% SOURCE: BC Assessment Authority 2007

The number of housing starts in the City of Williams Lake between 2004 and 2006 has averaged 20 new units; all of these have been single family dwellings. In the remainder of the electoral areas of the Cariboo Regional District, an average of 90 units have been built annually in recent years, with the majority of these being single family dwellings10. The rental market in the Williams Lake area has tightened considerably recently. Table 3-10 highlights the rental market in the Williams Lake area for 2005 and 2006. In October of 2006, the most recent data, there were only three rental units available in the Williams Lake area. Overall, the 2006 vacancy rate was 0.4% compared to 9.1% in 2005. Average rents have risen marginally over the past years.

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Table 3-10 Rental Accommodation for Williams Lake CA Private Row (Townhouse) and Apartment Accommodation Vacancy Rates (%) Average Rents Units in October 2006 2005 2006 2005 2006 Vacant Total 9.1% 0.4% $517 $535 3 812 SOURCE: Canada Mortgage and Housing Corporation, December 2006

In addition to the townhouse and apartment accommodation, there were also single family dwellings for rent in the area. Although these units are not captured in the rental numbers, the 2001 Census did estimate the total number of dwellings for rent locally. In 2001 there were 1640 dwellings available for rent, approximately 38% of all dwellings. In Electoral Areas D, E, K, there was an additional 555 rental dwellings in 2001, representing a total of 17% of dwellings in the area. This does not include First Nations housing on reserve in the area11. There does not appear to be any shortage of space for future residential development. Currently, more than 400 ha (1000 acres) of the City’s current area consists of vacant land which, according to the Official Community Plan and zoning bylaw, is suitable for residential development. Near term expansion in housing will likely occur in the Westridge, North and South Lakeside, Western and Pioneer Family neighbourhoods (Brian Lawrence and Jeff Goodall pers. comm.) Alexis Creek also has housing vacancies due to the downsizing of the Ministry of Forests district office in 2002. The previously-noted housing stock on First Nations’ reserves in the LSA was tracked by Statistics Canada in the census. However, information on occupancies, vacancies and land development capacity are not known. It is generally recognized, however, that development potential on reserve is severely constrained by funding limitations. This, in addition to the lack of employment prospects, is a major factor in the declining proportion of on-reserve populations (as a percentage of total band membership) over the last 15 years (McGregor, pers. comm.).

3.3.2.4 Assessment of Project Effects on Housing

Project Effects The Project’s effect on housing demand is based on population change and, in turn, this is driven by labour requirements. As illustrated in Figure 3-6, the number of households supported by the Project will rise dramatically in the first year of operation and continue rising at a modest rate for a decade, after which a gradual decline in employment, population and housing demand will ensue. The projected change in households accounts not only for direct employment effects, but also indirect and induced employment among businesses supporting the mine and its employees.

11 2001 Census. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 3-25 Prosperity Gold-Copper Project

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800

700

600

500

400

300 households 200

100

0

Close Rural yearsWilliams Lake

Figure 3-6 Change in Households Associated with the Project

The average workforce during the two-year construction period is actually greater than the workforce during operations, however their demands for housing in the RSA will be much less because the majority of the workforce will reside in the camp at the Project site while working and will not be seeking permanent residency in the LSA. During operations, the demand for housing will be spread over several communities, primarily Williams Lake and rural communities in the LSA. Based on the experience of Gibraltar, a small percentage of workers will choose to reside in 100 Mile House, Quesnel, in other British Columbia communities and communities in other provinces. Table 3-11 summarizes the estimated total and incremental demand for housing during construction and five-year intervals during the Project’s operating life. The demand for local housing is anticipated to rise quickly during construction, even with a large non- regional labour force. With the start of operations, the labour force is much more likely to reside locally and this is expected to spur demand for local housing right up until Year 10 of operations, when close to 650 homes will be occupied. For the last 10 years of operation, the number of homes occupied will diminish gradually and consistently as the mine workforce declines.

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Table 3-11 Demand For Local Housing over Project Life Construction Operations Year -1 Year 1 Year 5 Year 10 Year 20 Close Rural 22 61 81 85 29 Williams Lake 150 411 546 577 196 Total Demand 172 472 627 663 225 Annual Change in 172 299 22 -17 -77 Demand SOURCE: Appendix 3-A Table 3-35

The projected demand shown in Table 3-11 is not equivalent to a projection for new house construction. There is capacity in the regional housing market, represented by current for-sale houses, apartment/condominium vacancies and residential lease properties suitable for mobile home placement, both in Williams Lake and neighbouring rural areas like Alexis Creek. However, it is very difficult to determine the overall supply potential (and hence the expected need for new house construction), in light of the flexibility of the stock. Two examples will illustrate this point. First, when Gibraltar restarted in 2004, many Williams Lake residents quickly developed basement suites and housekeeping rooms to accommodate in-migrating workers who were not looking to purchase properties. The hiring of that workforce did not result in a noticeable increase in new house construction activity (see Table 3-8), even though more than 90% reside in the region. Anecdotal evidence suggests that many of the original workers from Gibraltar continued to hold their properties in Williams Lake even when they secured employment in other communities. And second, the population of the RSA in 2006 was roughly 1600 less than in 2001, yet the supply of housing increased during that same period. It is true that the average household size is declining slowly over time, which implies higher per capita housing requirements, but it is also evident that the housing supply has some latent capacity that is likely to emerge in a period of high demand (Glen Holling, pers. comm.). As with the 2004 Gibraltar re-opening, this could be in the form of secondary suite development or mobile/manufactured home placement on existing rural lots, solutions that do not require substantial levels of new construction activity. Preliminary data from the 2006 Census shows that the difference between available private dwellings and occupied dwellings in the LSA was approximately 500 units (Statistics Canada 2007). It is believed this inventory could become available to help satisfy Project housing demand. The baseline analysis indicated that Williams Lake and area have ample residential land and development potential to accommodate the new workforce. The Westridge neighbourhood alone, for example, has 100 acres of serviced residential lots ready for development and another 300 acres of expansion potential. This area could supply even the most optimistic projections for new housing associated with the Project. As noted in the baseline, development activity is ongoing in another three neighbourhoods in Williams Lake. There are two other related housing effects for which the capacity of the market to respond is less certain. • First, approximately 25% of Williams Lake residents rent apartment units. If this proportion is projected onto the Project workforce, then demand for multi-family residential will easily outstrip supply. Current rental vacancies are very low, annual March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 3-27 Prosperity Gold-Copper Project

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additions are minimal and investment interest in development of new rentals is very low (Glen Holling, pers. comm.). Many First Nations’ workers who live in Williams Lake are experiencing increasingly difficult finding suitable rental units. (McGregor, pers. comm.) Given the Gibraltar experience, the supply of rental properties may very well come from existing secondary sources, but in the current market this secondary supply does not seem to have satisfied demand. There is some development interest in both Pioneer Family and North Lakeside neighbourhoods for new multi-family residential units, as well as plans for a mobile home park in Pioneer Family (Jeff Goodall, pers. comm.). • And second, the capacity of the residential construction sector in Williams Lake to build new accommodations is somewhat uncertain. As seen in Table 3-8, the number of new units added on average per year between 2001 and 2005 was about 16. There is only one active locally-based residential developer in Williams Lake and most large-scale developers in southern British Columbia have ample opportunity for higher margin projects in the Okanagan Valley, the Lower Mainland and southern Vancouver Island than in the Cariboo. It may be challenging to attract enough developer interest and construction workers to the community to develop the roughly 200 units that might be needed in the final year of construction and the first year of operation. Nevertheless, the scale of the proposed Project and its visibility as a provincially significant development would undoubtedly attract the attention and interest of outside developers (Glen Holling, Jeff Goodall, pers. comm.). The cost of housing will also change in relation to the supply and demand balance for housing, as would be expected in any housing market. While spikes in occupancy costs (rental and owned) and housing values would be most evident in the first year of operations when migrating workers settle in the region, the effect would be temporary as long as suitable inventories of new accommodation units were brought onto the market. It is believed the rental market is the more likely to feel price pressure because of its lower inventories. It is important to note here that rural housing needs and possibly a share of Williams Lake’s housing demand may in fact accrue to First Nations communities. The scale of this effect will depend on the nature of any agreements worked out between TML and First Nations. At a minimum, we would expect the majority of “Close Rural” housing demand to fall upon First Nations. If agreements and hiring agreements take aboriginal employment beyond 85 households, then the demand for housing in Williams Lake will diminish in proportion. However, unlike Williams Lake and the surrounding municipal area, First Nations communities do not have the same flexibility to adjust or expand their on-reserve housing stock. First Nations’ households in the LSA have a higher number of residents per home and those homes tend to be smaller than average. This limits opportunities to accommodate workers and their families who might otherwise be inclined to move back to a main reserve. In addition, several of the First Nation communities are already stressed on service infrastructure that may make it difficult to easily accommodate new housing stock if it were contemplated. As an example, both Tl’esqox and Tsi Del Del reserves have concerns about their drinking water (Read and Associates 2007).

Mitigation The housing market is flexible and responsive to ongoing changes in housing supply and demand. Over the long-term, the efficiencies of the market will lead to a supply demand March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 3-28 Prosperity Gold-Copper Project

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balance and readily accommodate the Project workforce and their families. In the short- term, particularly during the lead-up to the first year of operation when the first wave of mine workers arrives in Williams Lake, Taseko will facilitate settlement by: • working with the CRD, City of Williams Lake, local communities and local real estate industry to anticipate, quantify and monitor housing demand and potential sources of supply • alert and inform landlords and temporary accommodation providers (i.e. motel, hotel, guest house / rooming house operators) in local communities to anticipate demand for short-term rental units to facilitate settlement • assist in establishing a housing placement service for all new employees From a company perspective, a shortage of local housing can also be mitigated by hiring more out-of-region workers, thereby lowering local demand. From an economic and community development perspective, however, this counter-intuitive option will do more harm than good in the long-run as it deprives the region of permanent residents. It also underscores the importance of socio-economic benefits that can accrue from an efficient and responsive housing market.

Characterization of Residual Project Effects The Project will increase demand for housing in the local and regional housing market beginning with construction and lasting for the duration of operations. The first 10 years of operations will see consistent increases in the demand for housing up to a peak level of 663 housing units (6.6% of current housing inventory), after which there will be an equally consistent decline in demand through to closure. It appears that at least half this demand could be accommodated by existing supply and that even without mitigation the incremental demand would eventually be fulfilled by the Williams Lake housing market through new home construction. However, the capacity of the residential development sector (that is both developers and construction companies) to satisfy short-term demand during the last year of construction and first year of operations will require mitigating actions. By actively stimulating supply activity in both Williams Lake and rural areas, the market should be able to adequately house workers and their families. Assuming that this supply demand balance can be achieved, the effects on long-term property values and housing costs should be moderate to negligible.

Cumulative Effects There is the potential for cumulative effects on workforce settlement and housing when the Project is considered in combination with the MPB and other proposed mining projects, but it is unlikely they will result in measurable change beyond the normal variations typical of the market. Mine projects with the greatest potential for future development are believed to be in the Quesnel area and are not expected to exert much influence on the Williams Lake housing market, while the MPB will have an offsetting effect (i.e., it will drive the market lower due to the outflow of displaced workers). To some extent, these effects are already factored into future population and household projections by BC Stats, so residual effects, as with many other socio-economic values, reflect cumulative effects.

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Determination of Significance There will be an increase in demand equal to approximately four percent of the existing housing stock in the LSA during the last year of construction and the first year of operations. Existing vacancies and new development plans for residential housing in Williams Lake will be able to meet this demand, while short-term spikes in housing values can be expected to moderate once employment levels have stabilized and families settle in. As noted in the population section of this chapter, at no point during the operating history of the mine will the population of the LSA exceed 2001 levels. The current housing market has already demonstrated its capacity for fulfilling future demand that may arise from the Project. With the proposed mitigation measures (which are intended primarily to facilitate settlement in Year 1 of operations), negative effects on housing are not significant. To the extent new employment offsets future potential population loss in the LSA, the effects on housing would in fact be considered positive by maintaining demand and prices.

Confidence in Predictions Housing demand projections are based on a forecast of employment created by the Project and observed experiences of where the labour force is likely to reside. While the employment forecasts carry a relatively high degree of certainty, residency patterns and final housing demand are less predictable. It is possible that marginal variations in the proportion of local versus out-of-region workers will be experienced. There is also some uncertainty on the supply side of the market. For example, the housing market can add capacity through a variety of responses (basement suites, housekeeping rooms) that may not be officially tracked and which may understate supply conditions. On balance, housing demand and supply projections are considered to be conservative (i.e., biased to excess demand) yet still within recent historic levels. The efficiency of the housing market to respond to the level of change anticipated gives a high level of confidence in long-term effects’ predictions. However, there is less confident in the predictions in the first year of mine operations.

3.3.3 Transportation and Traffic

3.3.3.1 Scope of Assessment for Transportation and Traffic Transportation modes include highways/roads, rail and air. The highway/road infrastructure will be the principle transportation link for supporting the Project during construction and operations. The capacity and current use of the present highway between the mine site and Williams Lake (to the load-out facility) is the focus of the road assessment. Rail movement is the shipping of concentrate from the load-out facility to the Port of Vancouver. Air mode examines the Project’s implications to capacity and use of the local airports. The issue of primary concern with regard to transportation and traffic is whether the Project will detrimentally affect the functioning of the existing transportations systems, including implications to safety or travel time. The Project’s transportation demands will increase over the construction period and continue during operations and closure, then decline to a trivial level during post-closure.

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Most of the effects will occur within the LSA as defined in Table 3–4. In terms of Project effects, traffic statistics for specific facilities (e.g., airport terminal) and locations (e.g., highway intersection) were used to assess effects and identify potential problem areas at a regional scale. These data are useful for assessing the relative magnitude of Project induced traffic relative to the baseline conditions, but are not suitable for identifying site specific local issues. Where these matters can be reasonably anticipated, specific problems have been resolved through changes in the Project design. For instance, the access road includes a by-pass of the Stone Indian Band (Yunesit’in) community. Guidelines for characterizing the residual effects of the Project on transportation are discussed in Section 3.1.6. The safe operating capacity of the transportation system was used as a threshold to assess Project effects on transportation infrastructure, beyond which the service level of the infrastructure deteriorates. In such cases, the general response would be to address the capacity constraint to restore the desired service level (i.e., new investment may be necessary).

3.3.3.2 Effects Assessment Methodology for Transportation and Traffic The baseline and Project traffic were measured in terms of average annual, or average daily traffic volumes, as available for the respective transportation mode. The effects analysis examined the relative contribution of the Project traffic to baseline traffic and current capacities. Telephone interviews and email correspondence were carried out with Ministry of Transportation and facility operators to determine transportation capacity and infrastructure issues, as well as likely effects and mitigation options.

3.3.3.3 Baseline Conditions for Transportation and Traffic

Highway Use Project related traffic is expected during construction, operations and decommissioning of the mine. It is anticipated that most of the traffic volume will be to and from Williams Lake during construction, operations and closure. To access the mine site from Williams Lake, the following roads would be used: • Provincial Highway No. 20 to Williams Lake (junction with Highway 97) to Hanceville (Lees Corner)—existing 90 km of two-lane, paved road • Taseko Lake and Whitewater roads—existing 68.4 km gravel road • 4500 Road (Riverside Haul Road)—existing 19.4 km single lane gravel road that will be up-graded • Provincial Highway No. 97—from Williams Lake, 54 km of two-lane, paved road north to the Gibraltar Mine Concentrate Load-out Facility near Macalister Road access to the mine site is from the 4500 Road. This new mine access road, approximately 2.8 km in length will be single lane with a gravel surface. Since Project traffic will not interact with public traffic on this road, it is not considered further in this effects assessment. The total road distance from Williams Lake to the mine site is approximately 194 km. Under present road conditions, motor vehicle travel time is approximately three hours.

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Traffic originating west of Lee’s Corner (e.g., Alexis Creek) will travel eastbound on Highway 20 to the Taseko Lake Road, and then follow the route described above. Traffic from Nemiah Valley will come east along the Whitewater Road. Traffic from Big Creek will travel to the Big Creek Road and then along the Taseko Lake to the mine site. Baseline conditions are summarized for each of the following five highway components identified above.

Highway 20

Overview Highway 20 (also known as the Chilcotin Highway) is a provincial highway that extends from the junction with Highway 97 in Williams Lake to the government wharf at Bella Coola. The focus for this assessment is the length of Highway 20 from its junction with Highway 97 to the community of Alexis Creek, a length of about 110 km. Within the municipality of Williams Lake, the highway has an arterial designation (i.e., provides a high level of service for through traffic). West of Williams Lake to Alexis Creek, Highway 20 is a two-lane, paved, all weather road. Traffic volumes drop substantially along this portion of the road and it functions as a rural secondary highway. The Cariboo Highway District has operational responsibility for the highway. This includes on-going maintenance (e.g., snow removal), and capital improvements as required. Regular maintenance and rehabilitation is carried out by the District’s maintenance contractor. Over the short term, there are no major capital expenditures planned for the Highway 20 (Hubner 2007, pers. comm.). The primary users of this length of Highway 20 are residents of the several communities accessed by the highway (e.g., Alexis Creek, Hanceville, Anahim Lake, Nemiah Valley and a number of Indian Reserves), the logging industry, the ranching industry, and seasonal recreationalist/visitors, as well as through traffic (e.g., traffic to/from the Bella Coola valley). Logging truck traffic can vary widely both in terms of the number of trucks and the sections of the highway traveled, as harvest activity shifts around the region and access is required to different sections of the highway. Load restrictions apply from about mid-March to June west of the Fraser River (i.e., the Sheep Creek Bridge). During this period, trucks are restricted to 70% of their legal axel limit.

Recent Traffic Volume The most recent available traffic statistics for Highway 20 within the LSA are summarized in Table 3-12. Annual Average Daily Traffic (AADT) is a calculated estimate of the average number of vehicles traveling past a measurement point during a midnight-to-midnight period on any day of the year. The largest values are at the two sites located in Williams Lake, reflecting large volumes of local traffic associated with the concentration of population. West of Williams Lake, the traffic volume drops to about one-tenth that measured in the community. For the two count stations west of the Fraser River for the years observed, the eastbound traffic volume was generally about 10% higher than westbound and, the summer traffic volume ranged from 1 to 10% greater than the AADT. Less seasonal variation is observed at the Sheep Creek Bridge than west of Alexis Creek. Substantial

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summer related tourism/visitor traffic is typically indicated by average summer traffic volumes being much greater than the annual average volume.

Table 3-12 Highway 20 Annual Average Daily Traffic (vehicles) Year 0.3 km West of 0.8 km West of Sheep Creek 12 km West of Hwy 971 Hwy 972 Bridge3 Alexis Creek4 1999 - - 1,499 - 1998 16,462 - 1,517 - 1997 17,206 - 1,556 - 1996 14,058 16,194 1,163 1,138 1995 13,693 16,151 1,236 1,108 NOTES: Count station identifiers are: 1 TMP 29-013 E/W 2 TMP 29-023 E/W 3 TMP 29-015 E/W 4 TMP 29-019 E/W SOURCE: Ministry of Transportation, Traffic Volumes Data

The Ministry maintains a permanent count station west of Anahim Lake giving a continuous traffic record from 1995–2005. The AADT for the period has been relatively steady at about 200 vehicles per day on average year around. Current traffic volumes (i.e., 2007) on Highway 20 have likely increased from the levels recorded in the late 1990s due to increases in logging related traffic (higher harvest in response to the mountain pine beetle epidemic), and general growth in the local economy that is typically reflected in increased trip frequency. For the District as a whole, anecdotal information indicates that there was little growth in traffic from 2000–04, but it is presently growing at 2–3% per year (Hubner 2007, pers. comm.). Given this regional trend, it might be reasonable to expect AADT of 1600–1800 vehicles per day on the rural section of Highway 20 between Williams Lake and Alexis Creek. However, the outlook may be a decline in traffic volumes over the next 5–10 years as the forest industry winds down from the elevated harvest level to salvage wood attacked by the MPB.

Safety A record of collisions on this segment of Highway 20 for the most recent five years is summarized in Figure 3-7. Over the period, there were eight collisions that involved fatalities, 111 with personal injury, and 204 that caused property damage only. The higher frequency of accidents is in Williams Lake and near the small settlements of Hanceville and Alexis Creek. On the 110 km of Highway 20 examined, 21% of the collisions were recorded within the 1-km length from the junction with Highway 97 to the intersection at Lakeside Drive South in Williams Lake. However, none of these collisions involved any fatality collisions. Seven of the eight fatalities occurred west of the Fraser River.

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45 40 35 30 Fatal 25 Injury 20 PDO

# of collisions 15 10 5 0

0 r 0 0 0 0 0 0 1 3 4 5 6 rk. 7 8 90 eek rne Br. 100 r o n C C ke C 's xis e e e Ris WY 20 /97 Al L Chilcoti H n S. LakesideMackenzie Dr. Ave Jct Landmark or kms from Alexis Cr.

SOURCE: Ministry of Transportation 2007

Figure 3-7 Collisions on Highway 20 (2001–2005)

Traffic analyses completed by the Ministry of Transportation identified two collision prone locations in Williams Lake. The two locations rank thirteenth and fifteenth in the Cariboo District in terms of the collision severity ratio.

Table 3-13 Collision Prone Areas in the Local Study Area Rank in Landmark Rates District AADT Collision Rate Collision Severity Ratio 13 Mackenzie Ave 16,000 1.20 3.6 15 S Lakeside Dr. 16,000 0.86 4.2 SOURCE: Ministry of Transportation 2007

The provincial average collision rate for urban intersections (with AADT of 15,000– 16,000) is 0.86 collisions/million vehicles km12. Mackenzie Avenue is above the provincial rate. With respect to rural sections of Highway 20, AADTs of 1600 and 1800 were used to estimate the collision rate, as this traffic volume likely brackets the volume that was

12 Average collision rate provided in e-mail dated January 18, 2007, from the Southern Interior Region, Ministry of Transportation. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 3-34 Prosperity Gold-Copper Project

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experienced between 2001 and 2005 when the collision data were recorded. The corresponding collision rates range from 0.473 to 0.521 collisions/million vehicles km13. The average collision rate provincially for rural roads with similar traffic volumes over the same time period was 0.58 collisions/million vehicles km.

Taseko Lake, Whitewater and 4500 Roads The Taseko Lake Road is accessed from Highway 20 at Hanceville (Lees Corner). The existing route includes a portion (about 1 to 5 km) of the Big Creek Road from Highway 20 to its junction with the Taseko Lake Road. The Taseko Lake Road connects with the Whitewater Road, which accesses the Nemiah Valley past where the 4500 Road joins. It is noted that the Taseko Lake Road passes through the Stone Band Reserve about 2 km from its junction with the Big Creek Road. Project development includes a by-pass thus avoiding Project traffic traveling through the Reserve. The Taseko Lake and Whitewater roads are part of the provincial side road network. The Ministry of Transportation is responsible for maintaining and improving the roadway. The Taseko Lake Road is classified as a two-lane gravel road, but in some sections has less width. Some sections were re-constructed in the late 1990s. Load restrictions apply to these gravel roads from about mid-March to June. During this period, trucks are restricted to 70% of their legal axel limit (Roberts 2007, pers. comm.). No traffic volume or accident data is recorded on these roadways and the following information is anecdotal. Excluding Project-related traffic, the primary users of the Taseko/Whitewater roads are the several ranches accessed from them, residents of the Nemiah Valley, and the logging industry. In the summer and fall, anglers and hunters use the road. The highest volumes appear to occur on the Big Creek segment between Highway 20 and the Taseko Lake junction. This includes forest industry traffic from operations accessed by the Big Creek and Taseko Lake roads, and residents. It is thought that the daily volume of traffic is highly variable, and that the AADT may be in the order of 50 vehicles per day under typical conditions. In 2007, the closure of Farwell Canyon road put a large number of logging trucks (perhaps 125–150 trucks/day) accessing Highway 20 via the Big Creek Road. The (summer and winter) maintenance standard applied by the Ministry of Transportation is set with reference to the road’s function and level of use. The length of road from Highway 20 to the Stone Reserve is a (winter) Class C maintenance level. This is a relatively higher level than the remaining route through to the Nemiah Valley, which is Class D level. The Nemiah band holds the maintenance contract with the Ministry for the road from roughly the Stone Band Reserve to the Nemiah Valley. The 4500 haul road is a resource road constructed to access timber harvesting sites in the vicinity of Fish Lake. In addition to the forest industry, it is probably used seasonally by recreationalist and First Nations. It is a single lane gravel road. No traffic statistics are available, but the traffic volume is low.

13 The formula for calculating the collision rate is (number of collision in highway segment * 1 million)/(AADT*length of highway segment* 365 days/year * 5 years). Highway 20 from Alexis Creek to Fraser River was divided into roughly 10 km segments and a collision rate estimated for each segment, from which an average rate for the entire length was determined. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 3-35 Prosperity Gold-Copper Project

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Highway 20 to the Load-out Facility Trucks hauling concentrate will travel provincial Highway 97 from its intersection with Highway 20 in Williams Lake, north 54 km to the existing Gibraltar Mine Concentrate Load-out Facility near Macalister. Highway 97 is a major provincial highway and is the only highway link between northern British Columbia and the rest of the Province. Its 460 km section between Cache Creek to Prince George (which includes the segment north of Williams Lake) is being upgraded to four lane highway under a long-term improvement strategy termed the Cariboo Connector14. The Ministry of Transportation has started Phase 1 of the strategy. This involves an expenditure of $200 million over five years to address the most urgent safety and congestion problems first. There are no projects planned in Phase 1 for the segment between Williams Lake and the load-out facility.

Recent Traffic Volume MOT operates a permanent count station about 6 km north of the load-out facility on Highway 97. The available annual traffic volume statistics are summarized in Table 3-14. Over the most recent seven years, the average annual daily traffic has been relatively constant. There is considerable seasonality to the traffic. Large trucks (four or more axels) make up about 10% of the average daily traffic volume.

Table 3-14 Highway 97 Traffic Volume at Marguerite (vehicles) Year AADT1 SADT1 AADT Trucks3 2006 2,875 4,047 284 2005 2,953 4,202 346 2004 2,820 - - 2003 2,932 - - 2002 2,981 - - 2001 2,887 - - 2000 2,848 - - 1999 2,885 - - NOTES: 1 Marguerite - P-41-2NS - N, P-41-2NS, 5865 2 Includes Classes 8-10 and multi-trailer trucks SOURCE: Ministry of Transportation, Traffic Volumes Data

Rail and Port Currently Gibraltar Mines trucks concentrate to its facility five days a week, averaging two haul trucks per day. The load-out facility is located adjacent to the CN Rail mainline. The concentrate is loaded onto rail cars and travels on the CN Rail line via Lillooet/Whistler to the Kinder Morgan Vancouver Wharves port facility in North Vancouver. Presently, an average of 84 rail cars (100 tonne capacity) per month leave the load-out facility monthly. With the anticipated expansion of Gibraltar’s output, the number of railcars departing the load-out facility could increase to as many as 160

14 See Ministry of Transportation site for a discussion of the programme. http://www.th.gov.bc.ca/cariboo_connector/index.htm March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 3-36 Prosperity Gold-Copper Project

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railcars/month15. Prosperity concentrate would add an average of fifteen 40 tonne B-Train haul trucks per day, enough to fill 7 rail cars to this throughput. Kinder Morgan Vancouver Wharves16 offers a variety of inbound and outbound services for bulk and break bulk shippers moving product to and from all regions of Western Canada and the Pacific Northwest. Vancouver Wharves receives railcars directly from CN Rail and via interchanges from CP and Burlington Northern Santa Fe, and is located within five minutes of the Trans-Canada Hwy. The multi-product facility has the capacity to handle as much as 10 million tonnes of cargo annually. With respect to mineral concentrate, the facility handles copper, lead and zinc concentrates for the Canadian mining industry, as well as raw material imports for Teck-Cominco’s Trail smelter. The minerals storage totals approximately 500,000 tonnes in multiple separations. There is also a large land base available on which to build more storage. Concentrates are handled at Berth 1. The berth’s facilities include: • concentrate rail car unloader and grab bucket ship unloader crane • storage warehouses • conveying systems • travelling shiploader • modern inventory/traffic management systems

Air The Williams Lake Regional Airport is located 14 km north of the City of Williams Lake. The Airport was opened in 1956 by Transport Canada. On January 1, 1997, the ownership and operations of the airport was transferred from Transport Canada to the City of Williams Lake. The airport is open daily and the runway accepts planes as large as a Boeing 737 and C-141 Hercules. It provides facilities for two commercial airlines that connect to British Columbia major airports, and the needs of other commercial and private air users. The airport accepts both scheduled and non-scheduled service. The runway is 2100 m (7000 ft) in length. Annual aircraft and passenger statistics are summarized in Figure 3-8. The slowdown in air travel that affected the North American industry in 2001 and 2002 also appears evident at Williams Lake. Both aircraft and passenger movements were sharply higher in 2003 and 2004.

15 Based on e-mail forward from R. Bell-Irving, Dec. 8, 2007. 16 From Port of Vancouver, http://www.portvancouver.com/trade_shipping/terminals/bulk/vancouver_wharves.html March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 3-37 Prosperity Gold-Copper Project

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18,000 40,000 17,000 16,000 Aircraft 35,000 15,000 14,000 30,000 13,000

aircraft 12,000 25,000 Passengers 11,000 passengers 10,000 20,000 9,000 8,000 15,000 1996 2000 2005

SOURCE: Transport Canada 2007 for aircraft movements, Williams Lake Airport for passenger numbers.

Figure 3-8 Annual Aircraft Movements at the Williams Lake Airport17

Since taking over the airport, the City has undertaken two major upgrade projects. In 1997, the entire runway was overlaid and, in 1998, an automated fuelling station was installed. There are no plans for further upgrades at this time.

3.3.3.4 Assessment of Project Effects on Transportation

New Infrastructure Development There will be new infrastructure development with the Project and this will include upgrading 19.4 km of the 4500 Road that is presently single lane, gravel roadway. The upgrades will include widening from its present nominal 5 m width to 8 m and the road surface improved. A total of 10 turnouts will be added at 2 km intervals. The access road to be built is 2.8 km long and 5 m wide. It will have a single lane gravel surface with pullouts. It will be constructed following Forest Practices Code, Forest Road Engineering Guidelines. The concentrate load-out facility will be expanded by Gibraltar Mines Ltd. to accommodate the increased volume of concentrate to be stored from both their expansion and from the Prosperity mine.

Effects on Highway Project related traffic will commence with construction, continue through operations and closure and post-closure phases. It could potentially draw traffic from throughout the Chilcotin, but for this assessment it is assumed that most traffic will travel the roads between Williams Lake and the mine site.

17 Aircraft movement counts include all take-offs and landings, including aircraft that take-off and return without landing at another site. Aircraft is defined as all categories of aircraft including: jet, turboprop, piston, glider, and helicopter. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 3-38 Prosperity Gold-Copper Project

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During the Project’s construction phase, Project traffic consists of transporting material and persons to the construction site. There are no large units that will require special traffic management other than pilot car for wide loads. The composition of the traffic is about 60% trucks/trucks and 40% light vehicles. The largest increment to traffic is Year 1 of operations, which overlaps with construction, with an annual average daily traffic of about 250 vehicles. After that, the Project adds on average about 100 vehicle trips per day (i.e., 50 vehicles making round trip). Concentrate trucks would make about 15 trips per day on average over the mine life. When the mine closes, the traffic volume drops to a negligible value. This analysis focuses on the relative contribution of the Project to existing average annual traffic volumes by road segment. This is a highway performance measure that is available (either measured or anecdotally) for the highway segments under consideration. A roadway that is nearing its capacity will be characterized by deteriorating performance, such as reduced average speed, congestion, excessive accident rate and the like. This may be measured at peak period or average conditions. There is no evidence that the roadways used by the Project are experiencing chronic performance degradation due to excessive traffic volumes, and this is also suggested by lack of road improvement projects (i.e., there are more urgent needs elsewhere in the district). Given these conditions, if the increment of Project traffic is small relative to the current level of traffic, it can be accommodated without a reduction in the roadway’s current performance. Table 3-15 summarizes the Project average annual traffic volume by road segment and Project phase and current traffic volume of these roads.

Table 3-15 Current Traffic and Project Related Traffic Volumes (Round-trips per day) Current Construction Operations Closure Post- Traffic closure AADT Yr–1AADT Yr 20, Vehicles Typical Yr AADT per wk 4500 Haul Road* 5< 48 100 46 2 Taseko Lake/Whitewater 50 48 100 46 2 Roads Hwy 20 Rural (Lee’s Corner 1,600 to 1,800 48 100 46 2 to Williams Lake) Hwy 20 (Williams Lake to About 16,000 48 100 46 2 Hwy 97) Hwy 97(Williams Lake to 2,900 - 32 Macalister load-out) NOTE: * indicates will be up-graded SOURCE: Taseko Mines, see Table 3-36 for annual values

As summarized in the table, the Project would increase AADT on rural sections of Highway 20 by about 6% (about 15% in the first year when construction and operating traffic overlap). The proportional effect on the urban sections of Highway 20 and the section of Highway 97, which have higher average traffic volumes, is less. Current traffic volumes are well below the respective highway capacity and these incremental increases

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can be accommodated without affecting the present service level (T. Hubner, pers. comm.). Traffic on the Taseko Lake and Whitewater roads would be substantially above current levels of perhaps 50 vehicles per day. The traffic volume and road performance is not well documented. The higher traffic volumes are likely within the first 10 km from the junction with Highway 20. This portion of the road has traffic joining from the Big Creek road and as well as local traffic. It is noted that recently traffic volumes were in the order of 150 trucks/day when the Farewell Canyon bridge was closed and logging trucks were diverted through Hanceville. No capacity problems were evident at that traffic volume (T. Hubner, pers. comm. 2007). The remainder of the road, to the 4500 haul road, has traffic associated with recreation, related to the Nemiah Valley community, and forest industry traffic. The capacity of the road to maintain its current performance level (i.e., average speed, accident frequency, reliability) at the higher traffic volume associated with the Project is probably in the order of 500 to 700 vehicles per day (T. Hubner, pers. comm.), which is well below the average value of 150 vehicles/day, or peak of 240 vehicles per day in the initial year of operation. Nevertheless, the increase in traffic volume, particularly the large component of truck/bus, may affect the design life of the road surface. This would increase or advance maintenance and rehabilitation expenditures by MOT. The increase traffic volume will trigger an increase in the road maintenance standard as applied to summer and winter maintenance. The effect of Project traffic on domestic livestock grazing and wildlife is addressed in the Other Resource Uses section (Volume 6, Section 5) and the Wildlife section (Volume 5, Section 6). The 4500 haul road to the mine access road will change from a relatively rough resource haul road with intermittent industrial and seasonal recreation traffic, to an all season gravel road with daily traffic volume. The road’s present performance, in terms of average speed and safety, is not known. Nevertheless, the proposed road up-grade will significantly improve its performance level in line with the increase in traffic volume. Existing users will realize the improved level of performance and the pull-out will reduce the delay time when opposing traffic is encountered. Industrial users will monitor a radio, which is current practice, and this will reduce the number of unexpected encounters with on-coming traffic.

Effects on Rail Transport and Port Facilities It is estimated that the Project annual concentrate production in the first 16 years of operations will average some 232,000 wet tonnes of concentrate on a continuous basis. This will add about 195 railcars departing the load-out facility monthly. Including the increased output from Gibraltar indicates total monthly railcar departures increase from its current 84 per month to 370 by 2011. Other than the need to re-configure the existing load-out facility to handle the increased throughput, CN Rail indicated that no additional rail infrastructure would be required to handle the combined shipments from the two mines18. Kinder Morgan Vancouver

18 E-mail correspondence dated Nov. 22, 2007 from G. Haberlin to B. Patterson, Subject: Gibraltar and future Prosperity Concentrate shipments March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 3-40 Prosperity Gold-Copper Project

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Wharves indicated that it will be able to accommodate the expected concentrate shipments from the Prosperity and Gibraltar mines as presented to them by Taseko19.

Effects on Airport Employees and suppliers not resident in the region may arrive by air. It is difficult to predict the timing and magnitude of the arrivals and departures. The highest proportion of non-residents is anticipated during the construction phase. If the short term demands exceed capacity of regularly scheduled flights, the commercial carriers may choose to add capacity (e.g., larger planes, or frequent flights), or Taseko may contract charter flights as required.

Mitigation While the Project’s traffic volume can be accommodated within capacity and performance levels on the roadways, a traffic management strategy can help minimize traffic volume, minimize effects, and maintain safety level. Elements of the strategy include: • employees are bussed to/from central point (e.g., Williams Lake) • minimize on-site parking • schedule Project traffic movements to avoid peak traffic periods, when possible • work with Ministry of Transport to ensure that proper signage advising the travelling public of industrial traffic is posted • trucks and busses be radio controlled • the condition of the road, and the performance of the highways be monitored with the MOT and corrective strategies formulated if deteriorating performance is detected • provide regular road report to drivers regarding general road use, peak traffic times, congestion, road conditions and road hazards • drivers will be expected to maintain a safe driving record, and professional drivers will be used to transport the concentrate These measures will reduce the effects of Project traffic volume, and where possible divert it to off-peak periods of the day. The Taseko Lake Road by-pass around the Stone Indian Band (Yunesit’in) community minimizes the effect of the increased traffic on the community.

Characterization of Residual Project Effects The Project will add to the volume of traffic that is carried by the existing highway, rail and airport systems. The effects assessment finds that there is expected to be excess capacity within the respective transport systems to accommodate the Project volume without affecting the level of service of other users. Where this is not the case, such as the 4500 Haul Road being inadequate, the road will be up-graded as part of the Project.

19 E-mail correspondence dated Dec. 24, 2007 from D. Arnott, Kinder Morgan Vancouver Wharves, to B. Patterson, Taseko Mines. Subject: Potential Gibraltar and Prosperity Shipments March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 3-41 Prosperity Gold-Copper Project

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Besides the effect on other infrastructure users, there may be an effect on the expenditure required to maintain the infrastructure. This appears to be the case for the Taseko Lake/Whitewater Roads. The additional traffic volume will trigger a higher maintenance standard be applied. Existing users will potentially realize a benefit from this higher standard.

Cumulative Effects The effects of other events that affect future transportation demand for the respective service are implicit in the transportation forecasts.

Determination of Significance The Project is not expected to require a major expansion in transportation capacity to accommodate the incremental demands created by the Project. The Project’s more substantial effects are relatively near to the mine site, where the roadway infrastructure was not built to accommodate a project of this magnitude. As the Project’s traffic moves on to infrastructure sized to service regional and provincial requirements, the relative effect of the Project is not large. In addition, these systems are presently functioning with excess capacity, which is expected to continue (and perhaps increase) over the forecast period. The implication is that current service level provided by the infrastructure will not be degraded by the Project. An incremental increase in expenditures for maintaining the Taseko Lake/Whitewater Rd can be anticipated and would be funded by MOT. Taken together, the Project does not have a significant residual effect on the road, rail or air infrastructure levels of service or infrastructure. This effects analysis was completed at the system level for respective transport systems. There may be site-specific matters that need to be addressed. For example, blind corners, sharp corners, steep grades, inadequate intersections, etc. may create congestion or unsafe conditions that need to be addressed. This is an operational level detail not addressed at this level of effects analysis.

Confidence in Predictions The existing infrastructure capacity and level of service are known. The Project transportation forecast is developed from the approved mine plan. There appears to be ample capacity to accommodate Project traffic, which would allow for errors in projecting future conditions. On balance, considerable confidence can be attached to the determination of significance.

Follow-up and Monitoring Taseko will articulate a traffic management strategy, developed in consultation with MOT and the community. The implementation of the strategy will be monitored and modified as required.

3.3.4 Community Services

3.3.4.1 Scope of Assessment for Community Services The requirement to examine the Project’s effects on community services is outlined in the PRS and EIS Guidelines. Specifically, Taseko is required to quantify the incremental

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demand on a range of public and private services, including police, fire, education, social services, recreation, basic infrastructure (water, sewer, transportation), justice, commercial, retail and industrial services. The issue is not the increment to demand, but the balance of demand relative to available capacity to accommodate the added growth, without eroding service levels to the existing population. If service were to deteriorate for a sufficient duration, it is likely the capacity of the infrastructure would be increased to restore service levels. In this circumstance, the Project effect would be to advance the need to make a capital investment. The assessment will also address short term and emergency situations. The prediction of incremental demand will depend on the findings of the labour market analysis, the population analysis, and the findings of the settlement and work force assessment. The spatial and temporal boundaries for effects on community services will most closely conform to those for effects on the work force and settlement, since many of the services pertain to supporting household demands for public and private goods and services. These are shown in Table 3-4. Guidelines for characterizing the residual effects of the Project on community services are discussed in Section 3.1.6. The parameters used to measure service demand and infrastructure capacity are appropriate to each service considered. For example, the parameters for measuring the supply and demand for education services, is specific and different from those measuring domestic water supply and demand. The more challenging issue is assessing and identifying the most critical deficiencies and the order in which each should be addressed. This matter was addressed in consultation with the respective agencies.

3.3.4.2 Effects Assessment Methodology The objective of the methodology is to identify the adequacy of existing/planned capacity for community services to meet future demand, including the Project’s incremental demand. In most cases, the challenge is in defining the capacity, or threshold, for the respective community service. For capital facilities, such as water and sewer there is a relatively clear definition of capacity, or service level standard. Once these conditions are no longer met, the system may be expanded to restore the standard. For justice, fire protection and education, which are not strictly limited by physical capacity and for which the service may be provided by different program configurations, the matter is less precise. Given the expectation that the population will continue to grow, the consequence of the Project is to likely advance in time for the investment in added capacity.

3.3.4.3 Baseline Conditions for Community Services

Commercial, Retail and Industrial The City of Williams Lake has abundant retail and commercial space available in the community. Recently the Thompson Rivers University relocated from their downtown campus site, creating over 20,000 sq ft of space in the downtown area. In retail, Wal-Mart has announced plans to locate in the community and is now working on building

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development. Safeway is redeveloping its downtown location (Maddrigga, pers. comm. 2007). It is estimated that 350,000 sq ft of new commercial and retail space could come on-line over the next 12 months. Other retailers are also actively investigating locating in the community. Two hundred acres of land along the south side of Williams Lake is undergoing geotechnical work to determine if it is suitable for industrial and commercial development. In the rural part of the LSA, several of the First Nations communities have gas station and convenience stores.

Recreation and Culture Williams Lake has many indoor and outdoor recreation facilities including parks, baseball diamonds, soccer fields, a curling rink with eight sheets of ice, golf courses, a twin ice arena, a 25-m swimming pool, tennis courts and a racing oval. The City also has a strong cultural and artistic community with art galleries, theatre productions, a museum and other activities. The Williams Lake Stampede is held every July 1 weekend and is Canada’s second largest stampede. Residents from throughout the LSA access the recreational facilities and cultural events in Williams Lake. In 2006, the City of Williams Lake completed a feasibility study to develop a multi- purpose events centre in the City. The centre would be designed and constructed to host a wide variety of sporting, recreation, concert, equestrian and family events. Tradeshows would also be hosted.

Education The City of Williams Lake and surrounding area falls within School District 27. The number of students for the school district is outlined in Table 3-16. As illustrated, the total enrolment has been steadily declining across the District. Overall, enrolment is down 10% between 2002/03 and 2006/07.

Table 3-16 Student Enrolment in School District 27 2002/03 2003/04 2004/05 2005/06 2006/07 Total Enrolment 7554 7393 7201 6960 6792 Enrolment change -161 -192 -241 -168 SOURCE: BC Ministry of Education 2007

There are several elementary schools in the City of Williams Lake including; Chilcotin Road Elementary, Glendale Elementary, Kwaleen Elementary, Marie Sharpe Elementary, Mountainview Elementary, Nesika Elementary, Popular Glade Elementary and Wildwood Elementary. Williams Lake has two secondary schools including; Columneetza Secondary, and Williams Lake Secondary. One elementary school in Williams Lake offers an alternate school year that coincides with the work schedule of loggers. There is a month long vacation in April during spring break-up, and the school year goes until the end of July. The school district also operates a co-ed dormitory for students whose parents live in isolated areas of the district. Another option for these rural students has been to board them in private homes.

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Thompson Rivers University, with its main campus in Kamloops, offers educational opportunities throughout the Cariboo-Chilcotin through its satellite campus in Williams Lake. The former University College of the Cariboo became British Columbia’s newest university in September 2004. The new university acquired the assets and responsibilities of the British Columbia Open University, moving it on to the Kamloops Campus. In Williams Lake, the government has committed $12 million to create a new campus by renovating and expanding the former Anne Stevenson Secondary School facility. Outside the City and in the LSA are Naghateneqed Elementary and Junior Secondary school in the Nemiah Valley, Alexis Creek Elementary and 150 Mile Elementary. Most First Nations communities in the LSA have a local school covering elementary and some junior secondary grades. Tl’esqox is currently working with Indian and Northern Affairs to establish an elementary school in their community (Read and Associates and Stonefield Consulting. November 2007).

Police and Justice The municipal RCMP police force in the City of Williams Lake has 23 officers. This is the same number as in 1995. The Williams Lake provincial detachment has 10 officers servicing the surrounding areas, and again are the same number as in 1995. There is also a small detachment of four RCMP officers in the LSA at Alexis Creek. The Williams Lake municipal police department currently has one officer for every 516 residents, with each officer costing approximately $90,217 in 200520. The City of Williams Lake is the location of the area’s law courts. These courts service the entire LSA.

Fire Protection The City of Williams Lake fire department consists of three career and 28 paid on call members. The department operates out of one fire hall in downtown Williams Lake and has one fire truck stationed at the Williams Lake airport. In total, a population of 20,000 people in an area covering approximately 60 square miles is served by the Williams Lake fire department. Specifically, this is the area inside the City of Williams Lake. In addition, the City of Williams Lake has an agreement with the CRD to cover some of the rural population immediately adjacent to the City. The Cariboo Regional District operates thirteen fire departments through the rural portion of the regional district. However, none of these fire stations are based in electoral areas K and E due to the small population (Bastien, pers. comm. 2008.). In the event of a fire involving forest lands, the Ministry of Forests fire service would respond to fires in rural CRD areas. Also, in the event of a provincial emergency (as was the case during the 2003 fire storm in the Thompson Okanagan) the Williams Lake fire department would become involved. First Nation communities in the LSA provide their own fire services with most communities having a fire hall.

Water and Sewer The water system in Williams Lake consists of five wells to serve the town’s potable water needs. In 2005, there was 108 km of water pipe in place for the City of Williams Lake. The City is formulating a water supply strategy that focuses on water conservation. Proposed initiatives include universal metering by 2009, using non-potable water for

20 BC Ministry of Public Safety and Solicitor General (2006), Police and Crime, Summary Survey 1996 to 2005. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 3-45 Prosperity Gold-Copper Project

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certain industrial processes and expanding use of reclaimed water. Implementation of these initiatives will accommodate expected future growth, such as the magnitude envisaged increase in connections indicated by the Project’s housing forecast (Table 3-11) (Goldfuss, pers. comm. 2008). In addition, the community maintained 34 km of storm sewer lines and 90 km of sanitary sewer lines within municipal boundaries21. Discharge from the sewer system is presently about 50% of the licensed discharge volume. In the rural area of the CRD there is a water and sewer system at Alexis Creek. Currently the Alexis Creek water system is connected to 36 lots, of which approximately 18 have residences connect, and approximately 18 lots are vacant (Minchau, pers. comm. 2008). The CRD is currently working on a new water system at Alexis Creek that will expand water services to the remainder of Alexis Creek connecting to additional lots and government offices in the area. The sewer system currently serves the entire community. Both the water and sewer system at Alexis Creek have capacity to add new residences. In the remainder of electoral area K and E rural properties are on their own well and septic field systems. Closer to the City of Williams Lake, the CRD operates the Pine Valley and Wildwood sewer systems in electoral area D. Both systems are fully developed and could support further subdivision development. First Nations communities provide their own water and sewer services. All communities have established public work facilities and services. However, some of these systems face challenges. For example, in the LSA Tl’esqox and Tsi Del Del require access to potable water as the community water system does not supply safe drinking water (Read and Associates and Stonefield Consulting. November 2007).

3.3.4.4 Assessment of Project Effects on Community Services

Project Effects The Project’s effect on RSA community services is based on population change and, in turn, this is driven by labour requirements. As illustrated earlier, the population and the corresponding number of households supported by the Project will rise dramatically until the sixth year of the Project. Between Year 5 and Year 15 of the Project demand on RSA community services will be relatively stable before starting to decline after Year 15. Given that the Project is anticipate to begin operations in 2010, resident population is estimated to build to a peak of 1650 new residents by 2018 and will bring the RSA population level to that it enjoyed around 2000. During construction a large construction labour force is anticipated but will be sourced throughout the province with only a portion of the labour force coming from the RSA. The dispersed nature of the construction labour force will reduce the demand on many RSA community services such as, commercial, retail, industrial space, recreation and culture facilities, local schools and training, and water and sewer. However, it is possible that local policing and justice services may see increased staffing during construction irrespective of the permanent residency of the construction workforce.

21 BC Ministry of Community Services. Local Government Infrastructure 2005. At website: www.cserv.gov.bc.ca/lgd/infra/municipal_stats/municipal_stats2005.htm March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 3-46 Prosperity Gold-Copper Project

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For mine operations, specific implications on key community services will include: • Commercial retail and industrial space will be adequate to accommodate future growth. Williams Lake is the location of the majority of this space in the LSA, and recent expansion and redevelopment has positioned the LSA to accommodate growth for the foreseeable future including the Project. In rural areas implications for commercial space is anticipated to be minimal. • Recreation and Culture facilities are also primarily based in Williams Lake for the LSA and are anticipated to accommodate population increase that the community anticipates in the future. • Education at the primary and secondary school level enrolment has been declining in recent years. An increase in school age population will be supported by the existing school infrastructure and may play a role in deferring school closures in the area. Approximately one new teaching position will be required for each 24 new school age children. The school age population growth would reside mainly in Williams Lake. At the post-secondary level, Thompson Rivers University operates a satellite campus in Williams Lake and is in the process of investing in a new campus which will meet the needs of the LSA for the foreseeable future including with the Project. For First Nation communities in the LSA, the potential participation in the Project could result in Band members returning to the LSA which could result in increased enrolment at Band schools. It is unknown what implications increased student enrolment will have on these schools. • Policing Williams Lake RCMP detachment has one officer for every 516 residents. The population increase associated with the Project would correspond to approximately three new officers in the area, based on the current ratio. Based on the settlement pattern additional resourcing would need to be assigned to either the City detachment or the Williams Lake rural or Alexis Creek detachments. • Justice services in Williams Lake are anticipated to accommodate the Project population. • Fire Protection There is not anticipated to be any fire service impacts on the Williams Lake area. There is no fire service provided by CRD in Electoral Area K and E due to their same populations with forest fire falling to the provincial government in this area. While First Nations communities in the LSA have fire services there is concern that it is not adequate to meet the event of an increased threat from wild fires that may be brought on by the MPB infestation. Issues of adequate equipment, trained fire fighting personnel and adequate water supply to fight fires in some communities are already being discussed (Read and Associates and Stonefield Consulting, November 2007). • Water and Sewer capacity is available in Williams Lake to accommodate the anticipated growth (Goldfuss, pers. comm. 2008). In the rural portion of the LSA, water and sewer service at Alexis Creek has the capacity to accommodate several new residents (Minchau, pers. comm. 2008). Elsewhere in the rural portion of the LSA, residents are responsible for their own wells and septic fields.

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For First Nation communities, there are already stresses on community infrastructure. Population growth resulting on increased demands on community services will likely add stress to the current infrastructure systems and require considerable investment to address. For example, in the Xeni Gwet’in First Nation community the Xeni Gwet’in office buildings and approximately 20 homes are connected to hydro electricity while the remaining homes in the community rely on gas or diesel generators for power (Read and Associates and Stonefield Consulting. November 2007).

Mitigation The Project will create increased demand for community services in the local and regional area. The majority of the growth pressure will be on the community of Williams Lake. According to City officials, Williams Lake is well positioned to accommodate this growth especially given the economic pressures anticipated with the decline in the forest economy as a result of the MPB. For community services such as education, an increase in students will actually be welcomed as declining enrolment has put pressure on maintaining existing facilities. To minimize localized effects on small rural communities, employees should be encouraged to live in the Williams Lake area.

Characterization of Residual Project Effects It is not expected that the Project will affect the level or quality of community services, but may in fact create a positive effect by stabilizing population and related services. In the larger communities, there is sufficient capacity in the existing public infrastructure to accommodate the increment of demand attributable to the Project. There would be some incremental staffing requirements in services like education and policing. In the rural areas, there may be some pressure on areas such as at Alexis Creek and Hanceville, and other rural areas of Electoral Area K that are closer to the mine site. However, there is some capacity in these areas to accommodate population growth and the infrastructure can be expanded as required. Since all community service effects are population based the implications will be in place for the duration of the Project construction and mine operations.

Cumulative Effects The community service demand will be driven by population. The Project is anticipated to increase demand for community services above the forecasted growth by approximately 3.5% when the mine operations is in Years 3 to 10 and less in other years. The Project is forecast to take place during the downturn anticipated by the decline in area forest harvest as a result of the MPB epidemic. Effects in the forest sector will dampen population growth during the Project operations phase.

Determination of Significance The Project will offset negative growth that has taken place between 2001 and 2007 in the area and will augment the slow growth forecast for the area moving forward. The urban area of Williams Lake has community services that are capable of accommodating growth in the area’s population. For community services such as education, the increase population associated with the Project may play an important role in maintaining current service levels.

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Confidence in Predictions Community services are driven by demand from new residents. The demand for new residents is discussed specifically in the population section and in the labour market section of the economic issues report. The population forecast was conservative in estimating (that is it was biased to over-estimating) the number of workers who would migrate into the region to fill the mine workforce positions. To the extent that the labour market is able to satisfy mine employment needs in an efficient manner, and based on discussions with local government staff regarding available capacity and supply conditions, confidence in the predictions for the effects on community services is reasonable.

Follow-up and Monitoring The assumption is that the population growth associated with the Project will be concentrated in the City of Williams Lake. It would be appropriate to do periodic follow- up on community service utilization on specific locations within the RSA. In particular, Taseko could provide the City of Williams Lake and the Cariboo Regional District information on the residency of their workforce. This will assist Williams Lake the Cariboo Regional District in reviewing service demands based on the actual residency of the new work force and their families. For example, if a large number of workers settle outside Williams Lake this could create incremental demand on fire services, water and sewer, and policing services that are not currently there.

3.3.5 First Nations Cultural Heritage

3.3.5.1 Scope of Assessment for Cultural Heritage The spatial boundaries of the LSA for this assessment are the major project components including the mine buffer, access road and transmission corridor. They fall within the asserted traditional territories of both the Tsilhqot’in Nation and Upper Secwepemc Nation. Disturbances to the land and resource base are expected to be greatest at the mine site and the surrounding mine buffer, and potentially the transmission corridor, with fewer impacts associated with transportation routes (all of which currently exist except for the access road). Tsilhqot’in traditional use interests are therefore considered the most likely to be affected by the project. The parameters used to measure the effects on cultural heritage values include accessibility and use of sensitive or important sites, the productivity of resources supporting traditional activities, and ability to engage in current or future cultural practices.

3.3.5.2 Effects Assessment Methodology This analysis has drawn most of its information from three previous cultural/heritage studies, as well as documentation on public record as part of the Tsilhqot'in Nation v. British Columbia court case. The BC Ministry of Forests has commissioned two cultural heritage overviews, one for the Cariboo Forest Region (Alexander 1997) and another for the western half of the Williams Lake Forest District (Alexander 1996).

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Taseko commissioned a heritage significance analysis of the Fish Lake area as well. (Ehrhart-English 1994) This study utilized a door-to-door survey of 61 Nemiah and Stone members, mostly elders, and asked questions concerning the potential loss of Fish Lake as a traditional use area. The BC Supreme Court case produced numerous documents concerning the traditional use, heritage and culture of First Nations in their claim area, which included Fish Lake. In 2001, the TNG prepared and submitted to MSRM a traditional use study and GIS database of land use locations. Due to confidentiality agreements, requests to the Ministry of Forests and MSRM for a copy of this report were not successful. This literature base was reviewed for a description of traditional uses as well as for insights into how First Nations might be affected by the project. Apart from archaeological resources, which are discussed in Volume 7, no primary research was undertaken for the First Nations cultural and heritage baseline or effects assessment. We note that the studies we reviewed cited the absence of site-specific references in the historical record and that interviews with elders remains the single-best source of information on such.

3.3.5.3 Baseline Conditions for Traditional Use In the early 1800s, lands within the CRD were used primarily by three ethnolinguistic groups: the Tsilhqot’in and the Carrier, both from the Athapaskan language family, and the Secwepemc, a Salish language family. Before Europeans arrived, the northern and western portions of the RSA were traditionally used by the Tsilhqot'in people who today make up the majority of membership in the ?Esdilagh (Alexandria), Tl'etinqox-t'in (Anaham), Tl’esqox (Toosey), Yunesit’in (Stone), Tsi Del Del (Alexis Creek) and Xeni Gwet’in (Nemiah) Indian bands. Five Sepwepemc bands (Canoe Creek, Williams Lake, Xats’ull [Soda Creek], Es’etemc [Alkali Lake] and Llenlleney’ten [High Bar]) are the descendents of peoples that were the primary occupants of land near surrounding the Fraser River and the east side of the RSA. There were many village sites and important travel routes in the RSA. The Tsilhqot'in made extensive use of the upper Chilcotin River and prior to contact close to two-thirds may have lived on the eastern flank of the coast range between Chilko Lake and the Dean River. Until the 1860s, Anahim Lake was the centre of their population. (Alexander, 1997) The Big Creek trail system, which joined the Chilcotin River with Chilko Lake and the , was a major transportation corridor. Numerous lateral trails joined up with the major north-south trails that provided access through the southern mountains. These routes were used mainly by the Xeni Gwet’in and Yunesit’in communities (Ehrhart-English 1994). For the Sepwepemc, salmon was the most sought after and abundant food due to the presence of large and relatively predictable salmon runs on the Fraser and Chilcotin rivers (Alexander 1996). One of the advantages of this abundance was a more sedentary existence and the ability to engage in more trading activities. For the Tsilhqot'in, less predictable and less prolific salmon runs led to greater dependence on other resources, including lake fishing, hunting and the gathering of plants. The dispersed nature of these resources likely contributed to a more nomadic lifestyle. The ethnographic research also suggests that the Tsilhqot'in tended to winter in lodges (rather than pit houses) to facilitate pursuit of dispersed and less predictable food sources, in particular assured access to winter fisheries (Alexander 1996). March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 3-50 Prosperity Gold-Copper Project

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Traditional use was structured around the seasons and changing conditions for the harvest of food and other resources. For the Tsilhqot’in, the winter diet was based on dried meat, fish and berries with supplemental ice fishing and hunting. By late winter with food stores depleted, families would disperse from their camps and expand their search for game and new plants. With spring, lake fishing and hunting intensified, while trapping for muskrat, migratory birds and other small game commenced. When summer arrived, families moved into the mountains in search of Caribou, roots and marmot. The arrival of the salmon, fishing sites on the Chilko, Chilcotin and other smaller rivers became busy. In Fall, families again moved into the mountains for marmot trapping and Caribou and other big game hunting. Kokanee fishing was also popular. The seasonal migrations and changes in traditional activities were based either on the family unit or larger congregations of encampments or bands when harvest opportunities were at their peak in spring and summer. For many activities, the same sites were used year after year. Lake fishing occurred year round, with activity the highest in late April and May to coincide with shore spawning. Families could spend as much as two months at small lakes to take advantage of productive spring fisheries (Alexander 1997). The Tsilhqot'in hunted a wide variety of species including bear, ungulates, fur-bearers, wolves, coyotes, and fox, among others. Some of the larger game bird species were also hunted. In all, over 30 game species were hunted or trapped. Moose did not inhabit the region prior to European contact but became a target species once elk were extirpated. Wildlife had important uses other than food, including blankets mattresses, gloves moccasins and as trade items. Only a few Tsilhqot'in had traplines and fur trapping was never a dominant feature of their economy. (Alexander, 1996) A steep decline in the fur trade occurred in the 1860s once the Canyon Shuswap, who were important trading partners, were decimated by smallpox. The subsequent bartering of furs for goods and sale for cash came to an abrupt decline after WW II. Plant foods were a staple in the Tsilhqot'in diet and places that were abundant and had high yields were well known and often visited. Berries, potatoes, onions and mushrooms are some of the more familiar varieties, but a wide variety of trees, shrubs, herbaceous plants and non-vascular plants like lichens and mosses used for food. Vegetation was also used for many other purposes than just food, including medicines, technology and for ceremonies. Many of the tree and shrub species were used for the construction of canoes, containers, pit house frames, weirs, bridges, drying racks, skin drying frames, fish nets, fish spear handles, snowshoes, baskets and a variety of tools. Burial grounds, quarries for making stone tools, transportation sites such as trails, bridges and portages to facilitate travel, ceremonial sites, medicinal sites, traditional history sites, non-human activity sites and landforms also occurred on the study area land base, but are generally not preserved in the archaeological record. The post-contact period saw an increasing rate of change in traditional land use activities as the result of colonial settlement, intermarriage, new road and town development, the establishment of reserves, the decline of the salmon fishery and some wildlife populations, and the encroachment of non-traditional land uses. The traditional economy became a mixed economy. The raising of cattle and horses, and associated hay farming, became increasingly important as a source of food and income to the Tsilhqot'in.

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The expansion of the industrial forestry in the 1960s and tourism (hunting and fishing) in the 1970s further impinged on the ability of First Nations to maintain subsistence and economic activities. Today, traditional activities that continue to be practised include hunting, fishing, trapping, berry picking, wood cutting, as well as the making of handicrafts. Some of these are carried out with conventional Crown tenures (in which case they are discussed in other sections of this report) but most are considered rights not regulated by government. For this reason, actual use levels for fishing, hunting and plant gathering are undocumented. The Fish Lake area itself is believed to have experienced periodic use well before European contact, but the extent of Tsilhqot'in interest is verifiable only for post-contact use (BC Supreme Court 2008). Interviews done with Nemiah and Stoney elders in the 1990s indicated that the mine buffer area was valued for its trapping, fishing, hunting and cabin areas. The area of Teztaun, Jidizay (Big Onion Lake) and Y’anah Biny was a winter hunting and trapping ground dating back to pre-European contact times and was used until the mid-20th century. Berry and plant harvests also took place, while the aesthetics and viewscapes were noted. The most intensive use sites (in terms of the number of activities and the number of participants in those activities) were in the Little Fish Lake, Big Onion Lake, Beece Creek and Taseko River (mouth) areas. The most popular hunting area was in the Red Mountain area, but the hunting of deer and moose near Fish Lake is said to still occur (BC Supreme Court 2008). Cattle grazing and hay areas evolved into an important subsistence activity in the 1900s. In the 1930s, the Fish Lake area was used by the Jimmy and Amelia William family to grow hay for the cattle and horses he had acquired (Ehrhart-English 1994). The William family eventually moved to Little Fish Lake and at one time maintained a herd of 200 cattle and 15 horses. Other families, including the Salomons, kept cattle in the Fish Lake area. After the death of Jimmy William in 1971, remaining family members moved to Nemiah Valley–there are no permanent residents in Little Fish Lake area today.

3.3.5.4 Assessment of Project Effects on Traditional Use

Project Effects The cultural heritage effects of the proposed project at Fish Lake will be felt mainly by the Xeni Gwet’in since they have been using the area relatively continuously for at least the last 150 years. It is also noted that among the Tsilhqot'in, particularly the Yunesit’in and Xeni Gwet’in, various families from different bands roamed the entire region, with the timing, frequency and duration of use dictated by game and fish availability at any one time. The loss of Fish Lake and disturbances within the mine footprint will result in the loss of an area that has important cultural meaning for many Tsilhqot'in people. This culturality is expressed in the fishing, trapping, hunting, cabins and other traditional use experiences and sites that have attracted people to this area over time. Development of the mine site and TSF will result in the inundation of trapping and hunting areas and the direct loss of Fish Lake itself. Deer, moose, grouse and squirrel are harvested around Fish Lake and these opportunities would be displaced until post-closure (Ehrhart-English 1994). Fishing activity at the existing Fish Lake would be lost but there is a reasonable expectation that fishing opportunities at a newly created lake (Prosperity Lake) would at least partially

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offset this loss. There is some evidence to suggest that fishing by the Xeni Gwet’in has declined since the William and Solomon families departed Little Fish Lake in the early 1970s. This is because fishing is historically conducted in proximity to trapping areas and over-wintering areas for cattle. It is noted, however, that First Nations members likely constitute a good portion of use documented in recent lake fishing surveys. Cultural sites such as the remnants of the William family and Salomon family domiciles at Little Fish Lake will also be lost. Plant gathering is the activity least likely to be affected by the project, as most species still collected exist outside of the mine buffer area, or there are other equally suitable sites for collection (Ehrhart-English 1994). The transmission line is also likely to affect cultural heritage values both for the Tsilhqot’in and the Upper Secwepemc, but the ethnographic information for the corridor is not as well documented as it is for Fish Lake. Still, the line will traverse traditional travel routes and as it proceeds east moves through gradually more intensive traditional use zones from montane forest, to intermediate grasslands and finally to high use river terraces/valleys. Generally, the density of sites in the grasslands was low but some preferred campsites could have seen reuse for a variety of gathering, procurement and ceremonial purposes. The river valleys of the Fraser and Chilcotin were very important for fishing base camps and hunting/butchering spots (Alexander 1996). As well as lodges and other buildings, these sites would have supported trade activities and a wide variety of social activities. Higher up on the terraces is where the winter villages of the Northern Sec’wepémc would have been located. The other project components, including the transportation routes and improvement to the load out facility near Macalister, are not expected to have measurable impacts on cultural heritage values. These facilities already exist and thus characterize baseline conditions. Fish Creek will be less accessible than it is today if the existing access road is decommissioned or not maintained. The new access road will have strict access control.

Mitigation Movement or modification of the tailings pond to avoid historical sites at Little Fish Lake was considered not feasible for economic reasons. Mitigating the effects of the project on cultural heritage values is primarily addressed in other volumes and sections namely: • control local hunting pressure and preserve opportunities for First Nations hunters displaced by the mine (Volume 6, Section 5) • address lost trapping territories (Volume 6, Section 5) • address displaced ranching activity (Volume 6, Section5) • replace and enhance the First Nations’ food/ceremonial fisheries as noted in the Fisheries Compensation Plan (Volume 3, Section 8)

Characterization of Residual Project Effects The Project will have an adverse effect on cultural heritage values for the Tsilhqot’in people and more specifically members of the Xeni Gwet’in whose families have traditionally occupied the Little Fish Lake area. The magnitude of the effect is difficult to

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characterize. Although the Xeni Gwet’in’s asserted traditional territory has many other areas that support the types of traditional activities at Fish Lake, the one ethnographic study conducted on the mine site area did document a consistent pattern of use since 1860 and permanent habitation by one family between 1930 and 1971. The effects will occur once construction activities begin, will continue indefinitely and are considered irreversible because the physical setting, though it may be capable of restoring baseline conditions for traditional activities like hunting and fishing post-closure, will be permanently altered.

Cumulative Effects The focus of this analysis has been on the effects of the mine site and mine buffer on Xeni Gwet’in members and families. Any interactions between other operating mines, proposed or potential mine projects is considered minimal and unlikely to create cumulative effects. The mountain pine beetle is expected to exert considerable cumulative effects on cultural heritage values and traditional use. The majority of Tsilhqot’in territory is dominated by lodgepole pine forests which have been the foundation of Tsilhqot’in existence over time. The following effects are expected (Read and Associates and Stonefield Consulting 2007): • The MPB is destroying wildlife habitat and plants relied upon by community members, hunting pressure is increasing as new roads for logging are developed, and reduced forest cover is adversely affecting water temperatures and fish habitat. • As the forest is lost to the epidemic, cultural places will be lost. “It will become increasingly difficult to maintain the culture because Tsilhqot’in customs are forest based”. • Social structure and activities are inextricably linked to the forest, and are susceptible to the changing environment. • The lack of access to employment and economic opportunities close to reserves will worsen once forest jobs are lost to the epidemic. In this context, the destruction of the forest due to MPB will have effects on cultural heritage values that are spatially and temporally much more adverse and potentially devastating than those that might be expected to result from the Project.

Determination of Significance The Project will disturb a very small area of the LSA and RSA, as well as a minor proportion of the asserted traditional territory of the Xeni Gwet’in. Although the recent Tsilhqot'in Nation vs. British Columbia judgment (2008) did not recognize Aboriginal title to the Eastern Trapline Territory, which includes Fish Lake, rights have been declared and regular habitation and use since European contact has been documented. Project mitigation measures and the limited spatial extent of disturbances to the land and resource base should minimize the effects on traditional uses, but in the absence of direct impact statements from First Nations, we are unable to determine the significance of Project effects on cultural heritage values.

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Confidence in Predictions Our understanding of traditional use areas, sites and other ethnographic characteristics of the LSA and RSA is limited, but for the most part documented in the Tsilhqot'in Nation vs. British Columbia judgment (2008). The Ehrhart-English (1994) report did work closely with Xeni Gwet’in elders at the time and we have assumed accurately portrayed traditional uses and the most likely effects of the Project. However, we also recognize that more recent traditional use studies prepared for the TNG were not made available to the study team and that possible insights into Project effects on cultural heritage values is lacking. For this reason we have a low degree of confidence in our effects predictions.

Follow-up and Monitoring We would expect that should the Project proceed that an understanding between the Tsilqot’in and Upper Secwepemec on managing for cultural heritage values would be reached and include a viable mechanism for the monitoring of impacts and follow-up procedures.

3.4 Summary of Project Effects on Social Issues The Project’s specific and cumulative effects on social issues were assessed for the following: • population • workforce settlement and housing • transportation • community services • First Nations cultural and heritage values These parameters collectively represent the socio-community context of the region and more specifically the demographic, infrastructure and service setting that define communities (including First Nations) and neighbourhoods. The Project is expected to affect this setting through the employment generated by mine activities and by the associated movement of goods, people and services during the different Project phases. For First Nations cultural heritage values, it is the Project components themselves that have the potential to disturb traditional use sites and activities and which, therefore, may represent an infringement upon their rights. Most social effects will be at their peak during the final year of construction and the first few years of operations when the demand for employment and services quickly ramps up. This shock will be noticeable because the region has experienced little population growth and no similar-size projects over the last decade. The effect is expected to be short-lived, however, as the private sector (housing and some transportation) and public sector (transportation and community services) adjust their service levels to accommodate the inflow of new workers and their families.

3.4.1 Summary of Mitigation for Social Issues The derivative social effects of mine activity are not generally seen as requiring mitigation unless there are concerns about the capacity or ability of the community to absorb those effects. As with any new economic activity, the mine will create March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 3-55 Prosperity Gold-Copper Project

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employment, attract new workers into the region, and stimulate population growth as well as the demand for facilities and services typical of the community. This cause-effect relationship is not considered a negative occurrence and in fact is usually perceived as a pre-condition for community prosperity and health. Government, communities and local service organizations plan for this growth and have developed market (or market-like) mechanisms for dealing with it. Williams Lake and the rural areas in the Central Cariboo have the capacity to serve the population growth and increased demand for housing, transportation and community services that the Project will bring. However, even though the anticipated scale of change is well within existing capacity and response capability, its timing will pose challenges. The RSA has not experienced any substantial population growth in the last 20 years, so the surge of building and employment activity during the last year of construction and first year of operations may test the timeliness of that response. Mitigation for housing and community services will include periodic update meetings with the CRD and City of Williams Lake to keep them informed with the labour force status associated with the Project and to ensure the required planning can take place in a timely fashion so that the CRD and City are ready and able to service new in-migrants and offer housing and placement services to new employees to facilitate their transition into the community. Mitigation for transportation will consist of improvements to the Whitewater road and a bypass around the Stone Indian Reserve. All other transportation modes and services are considered fully capable of meeting Project needs without mitigation. Mitigation for First Nations’ cultural and heritage values would focus on the mine site area but details would have to be developed through discussions with First Nations communities. Mitigation concerning activities such as hunting, fishing, trapping and agriculture are addressed separately in Section 5 of this volume.

3.4.2 Summary of Residual Project and Cumulative Effects for Social Issues The effects of the Project on social issues will derive from the increased employment and expected population gain that will be experienced by the Central Cariboo region. The directions of these effects are increased during the construction phase and the first ten years of operation. The direction changes thereafter as employment, population and demand for services are expected to decrease as the mine scales back activity leading up to closure and de-commissioning. Communities are built and managed to accommodate employment and population growth. Housing, transportation and community services are market or population-based and will increase or decrease their supply according to demand conditions. In this sense, the effect of the Project on the community will be no different than any other activity or economic event, whether that is a new store opening, a new resort or a new lumber mill. For First Nations culture and heritage, the predicted residual effects, assuming successful mitigation, is minor, and based mainly on ethnographic studies undertaken in the 1990s. Our confidence levels for this assessment are low, however, due to the absence of direct input from Tsilhqot’in elders. At this time, there are no reasonably foreseeable planned projects or developments within the LSA and thus a low likelihood of potential effect overlaps with the Project. The MPB epidemic is expected to lead to future mill closures and potential population loss,

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although the extent and timing of this loss is still unclear. The contribution of the Project will be to offset this change during the construction and operations period. In this context, positive cumulative effects on social issues are expected from the Project.

3.4.3 Follow-up and Monitoring for Social Issues The only monitoring proposed is for truck traffic on the Whitewater Road to determine if it exceeds stated capacity as set by MOT.

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Table 3-17 Summary of Project Residual Socio-Economic Effects: Social Issues Residual Environmental Effects Characteristics

Proposed Potential Residual Recommended Follow-up Mitigation/Compensati Socio-Economic Effects and Monitoring on Measures Likelihood Likelihood Significance Significance Context Context Direction Direction Magnitude Magnitude Reversibility Socio Economic Socio Economic Prediction Confidence Prediction Confidence Geographic Extent Extent Geographic Duration/Frequency Duration/Frequency Population–The population of the LSA will increase in response to new employment generated by the mine during construction as well as operations. At its height around Year 10 of operations, the LSA population will still be lower than its 2001 Census level. Construction and I M L ST R D Commissioning N H H None Operation I M L LT R D None Decommissioning D M L ST R D Residual effects for all I M L LT R D Phases Workforce Housing–The demand for workforce settlement and housing will be a function of employment and population patterns at the mine. As with population, these effects will be greatest during the last year of construction and first year of operations when approximately 400 households will need to be accommodated. This is within the capacity of the regional housing market, but the ability of the residential development and construction sector to respond to demand in the short-term is questionable. Construction and Settlement plan for Year None I L L ST I D Commissioning 1 of operations and Operation housing service during I M L LT I D early years of operations. Decommissioning D M L ST I D N M M Taseko has the option to Residual effects for all hire out-of-region Nu L L LT R D Phases workers to ease supply constraints in the LSA

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Table 3-17 Summary of Project Residual Socio-Economic Effects: Social Issues (cont’d) Residual Environmental Effects Characteristics

Proposed Potential Residual Recommended Follow-up and Mitigation/Compensati Socio-Economic Effects Monitoring on Measures Likelihood Likelihood Significance Significance Context Context Direction Direction Magnitude Magnitude Reversibility Socio Economic Socio Economic Prediction Confidence Prediction Confidence Geographic Extent Extent Geographic Duration/Frequency Duration/Frequency Transportation–Includes use of road, airport, rail, and port infrastructure to transport people, equipment, supplies and concentrate to/from the mine site. Highway traffic volume will peak in Year 1 of operations. The peak volume plus existing non-Project traffic can be accommodated by existing roads without reduction in service. During operations, rail shipments from the load-out facility will add about 195 railcars per month. The facility will be expanded to accommodate this volume and increase production from Gibraltar. The rail and port operators indicate the incremental volume can be accommodated. Construction and Upgrade Whitewater Rd., Implementation of the traffic I L L ST R D Commissioning by-pass Stone IR., management strategy to be N H H Operation promote higher I M L LT R D monitored and modified as Decommissioning occupancy vehicles D M L ST R D required Residual effects for all D M L LT R D Phases Community Services–Includes public infrastructure (e.g., water/sewer) and public/private services (e.g., police, education, justice, trade) in rural and incorporated communities. The added demand associated with the Project will not lead to a deterioration of existing service levels. This is because of excess capacity in current infrastructure, the Project’s incremental demand is small relative to total demand, or the infrastructure and services may be expanded to maintain target service levels. Community service delivery in small rural communities will be more sensitive to Project changes, due to existing small base Construction and Taseko to encourage Taseko will apprise the LSA I L L ST R D Commissioning settlement in communities as needed of major Operation communities with well I M L LT IR D changes in its workforce level, or Decommissioning developed service D M L ST IR D N M H other events that may trigger a delivery systems. community response, hence Residual effects for all I M L LT IR D community’s need to anticipate Phases and plan a response

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Table 3-17 Summary of Project Residual Socio-Economic Effects: Social Issues (cont’d) Residual Environmental Effects Characteristics

Proposed Potential Residual Recommended Follow-up and Mitigation/Compensati Socio-Economic Effects Monitoring on Measures Likelihood Likelihood Significance Significance Context Context Direction Direction Magnitude Magnitude Reversibility Socio Economic Socio Economic Prediction Confidence Prediction Confidence Geographic Extent Extent Geographic Duration/Frequency Duration/Frequency First Nations cultural and heritage–The mine development will result in the loss of cultural sites and traditional use areas in the Fish Lake and Little Fish Lake area, which the Tsilhqot’in people have used for generations. Although traditional activities will be displaced, the physical transformation of the area will directly and negatively affect the sense of place for the two Xeni Gwet’in families who occupied Little Fish Lake up to 1971. Other project components are expected to have negligible effects on cultural and heritage values. Construction and Building relocation and LT/ TML to develop and implement a N L L IR D - L M Commissioning potential compensation C viable mechanism for the for families. LT/ monitoring of impacts and Operation N L L IR D - L M Mitigation for traditional C implementation of follow-up activities such as hunting LT/ procedures.\ Decommissioning N L L IR D - L M and fishing are C Residual effects for all addressed in Section 5 LT/ N L L IR D - L M Phases C KEY

Direction: Geographic Extent: Reversibility: Prediction Confidence: I Increase L Local: Williams Lake and rural areas R Reversible Based on scientific information and statistical D Decrease around the mine. I Irreversible analysis, professional judgment and Nu Neutral R Regional: Cariboo Regional District effectiveness of mitigation P Provincial. Socio-Economic Context: L Low level of confidence Magnitude: U Undisturbed: Area relatively or M Moderate level of confidence L Low: the effect is such that it cannot Duration: not adversely affected by human H High level of confidence be distinguished from normal base case ST Short term: the effect does not last activity variations long enough to induce a permanent D Developed: communities and Likelihood: M Moderate: the effect will result in a increase in supply or capacity but is more rural areas have a history of Based on professional judgment demonstrable change in use or demand, likely to be managed through contingency settlement activity, services and L Low probability of occurrence but still remain within recent historic measures and mitigation. infrastructure. M Medium probability of occurrence norms and system or market capacity for LT Long term: the effect lasts beyond a H High probability of occurrence response typical planning cycle and will result in N/A Not Applicable H High: the effect results in changes of increased supply or capacity to meet Cumulative Effects

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Residual Environmental Effects Characteristics

Proposed Potential Residual Recommended Follow-up and Mitigation/Compensati Socio-Economic Effects Monitoring on Measures Likelihood Likelihood Significance Significance Context Context Direction Direction Magnitude Magnitude Reversibility Socio Economic Socio Economic Prediction Confidence Prediction Confidence Geographic Extent Extent Geographic Duration/Frequency Duration/Frequency use or demand that are beyond historic demand. Significance: Y Potential for effect to interact with other norms or then-existing system/market S Significant past, present or foreseeable projects or activities capacity. N Not Significant in RSA Frequency: N Effect will not or is not likely to interact with S Occurs sporadically at irregular other past, present or foreseeable projects or intervals. activities in RSA C Continuous.

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3.4.4 Additional Considerations for Social Issues

3.4.4.1 Climate Change The effects of climate change were addressed in Section 2.1.1.1. Based on the best available scientific information, climate change in the Central Interior of British Columbia may be manifest by increase in average temperature (little change in maximum temperatures but some increase in minimum temperatures), some increase in precipitation, and changes in streamflow regime to earlier freshet and lower late summer flows. These climate change effects neither amplify nor buffer the residual Project effects addressed in this volume as social issues.

3.4.4.2 Mountain Pine Beetle A treatment strategy in response to the Mountain Pine Beetle epidemic is the accelerated harvest of pine stands and a short term increase in the rate of total harvest. This is affecting the LSA and RSA economies presently, and will begin to taper off over the next decade or so. The contraction in economic activity would lead to out-migration forest related workers/families in the absence of offsetting economic growth. This event alone would imply the slowed or negative population growth. The Project’s employment opportunities and related economic activity will support an increment to the community population and buffer the population loss that is expected in the aftermath of the Mountain Pine Beetle.

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Appendix 3-A Population

A.1 Population Tables and Notes The LSA consists of Williams Lake, the area service center, and several unincorporated Electoral Areas of the Cariboo Regional District (CRD). The census population for these regions within the local area is summarized in Table 3-18. The population count varies slightly from that reported for the Cariboo Local Health Area (LHA), which is used to represent the population of the LSA in the text. For instance, the LHA population includes an adjustment by BC Stats for non-permanent residents, returning Canadians, provision for Census undercount and those living on Indian Reserves.

Table 3-18 Census Population of Cariboo-Chilcotin Local Health Area 1996 2001 2006 Change 01/06 Williams Lake 11,684 11,599 10,744 - 409 Electoral Area D 3,588 3,426 3,073 - 221 Electoral Area E 5,067 4,855 4,336 - 332 Electoral Area F 4,812 4,179 4384 - 579 Electoral Area J 907 915 808 - 72 Electoral Area K 875 701 552 - 122 Total 26,933 25,674 23,897 - 1,735 NOTE: Table does not include IRs SOURCE: 2006 Census

First Nation population counts are available from Indian and Northern Affairs on an annual basis.

Table 3-19 On- and Off-reserve Populations for 2001 and 2008 Registered members On Own Reserve Off-reserve Total & Crown Land 2001 2008 2001 2008 2001 2008

Tsilhqot’in Nation ?Esdilagh (Alexandria) 60 49 88 125 148 174 Tl'etinqox-t' Govt. (Anaham) 667 592 655 858 1,322 1,450 Tsi Del Del (Alexis Creek) 292 337 284 286 576 623 Xeni Gwet'in (Nemiah) 340 207 48 187 388 394 Yunesit’in (Stone) 264 210 92 187 356 397 Tl’esqox (Toosey) 171 148 87 140 258 288 Upper Secwepemc Stswecem’c (Canoe Creek) 337 242 263 445 600 687 T’exelcemc (Williams Lake) 210 212 260 343 470 555 Xat’sull (Soda Creek) 203 150 127 209 330 359 Esketemc (Alkali) 427 403 273 362 701 765

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Table 3-19 On- and Off-reserve Populations for 2001 and 2008 (cont’d) Registered members On Own Reserve Off-reserve Total & Crown Land 2001 2008 2001 2008 2001 2008

Llenlleney’ten (High Bar) 0 0 62 72 62 72 Total 2,971 2,550 2,239 3,214 5,211 5,764 SOURCE: Indian and Northern Affairs Canada, First Nation Profiles

A large portion of the population is located in Williams Lake, or in the unincorporated areas close to the community. The spatial distribution of the local area’s population is also shown in Figure 3-9.

SOURCE: BC Stats 2007

Figure 3-9 Population Distribution in the LSA

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Table 3-20 Population Forecast

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Appendix 3-B Social Characteristics

B.1 Age The age of the population in the Cariboo-Chilcotin LHA is highlighted in Table 3-21 and is compared to BC levels. Overall, the local and provincial population is aging relatively quickly, particularly with the rapid decline in the under 19 population. Currently, the older working age cohort of adults that is 45 to 65 is growing most rapidly. Locally, the LSA has a relatively younger population than the province.

Table 3-21 Age Characteristics, 2001 and 2006—Cariboo-Chilcotin Local Health Area and BC Age 0 to 19 Age 20 to 44 Age 45 to 65 Age 65+ 2001 2006 2001 2006 2001 2006 2001 2006 Cariboo-Chilcotin 29% 26% 37% 35% 25% 28% 9% 10% LHA BC 25% 22% 36% 36% 25% 28% 14% 14% SOURCE: Statistics Canada (2001); BC Stats - P.E.O.P.L.E 30 Project Run (2005)

Table 3-22 shows the population and the under 14 population in Williams Lake area, the Chilcotin and RSA (Cariboo Regional District) in 2006. In the RSA, First Nations have a much higher proportion of their population in the under-14 age class.

Table 3-22 Off-reserve Aboriginal Population, 2006 2006 Child Population 2006 Population (age 0–14) Total Aboriginal % of Total Total Aboriginal % of Total Williams Lk Area 24,012 2,845 11.8% 4,450 870 19.6% Chilcotin Area 1,360 215 15.8% 210 25 11.9% RSA 62,190 5,840 9.4% 11,000 1,845 16.8% NOTE: Williams Lake Area includes Cariboo RD EAs A, D, E and City of Williams Lake. Chilcotin Area includes Cariboo RD EAs J and K. SOURCE: Statistics Canada, 2006 Census.

Overall, the RSA on reserve population is noticeably younger than generally observed at the provincial level. Table 3-23 overviews the age categories by age group for 2006 and highlights the large percentage of population under twenty-nine years of age for both on reserve in the RSA and provincial aboriginal population.

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Table 3-23 On Reserve Population by Major Age Groups, 2006 Community 0-14 15-29 30-64 65+ Tl’etinqox-t’ Gov’t (Anahim) 21.1% 23.7% 44.7% 10.5% Xeni Gwet’in (Nemiah) 28.9% 10.5% 44.7% 15.8% All Tsilhqot’in Nation 25.6% 22.8% 45.7% 5.9% Stswecem’c/Xgat’tem (Canoe Creek) 21.1% 28.1% 36.8% 14.0% T’exelcemc (Williams Lake) 28.8% 22.7% 42.4% 6.1% Xat’sull (Soda Creek) 27.0% 27.0% 45.9% 0.0% All Upper Secwepemc 25.8% 24.7% 44.9% 4.5% Esketemc (Alkali) 22.4% 30.3% 42.1% 5.3% Total BC Aboriginal Population 28.2% 24.3% 42.4% 5.1% Total BC Population 16.5% 19.1% 49.8% 14.6% SOURCE: Statistics Canada

B.2 Education Characteristics Table 3-24 highlights the highest level of education for the RSA and compares this to the education levels for the province. Overall, the study area has a higher percentage of university graduates and persons with trade diplomas than the CRD. In comparison to the province, the RSA has a higher percentage of residents with trade diplomas and a lower percentage of residents with university degrees.

Table 3-24 Highest Level of Schooling for Residents 20 Years and Older, 2001 Electoral Electoral Williams Cariboo BC Areas D,E Areas J and Lake Regional and F K District Less than Grade 12 28.7% 24.4% 29.8% 33.6% 24.3% Grade 12 14.1% 15.1% 12.9% 13.9% 12.3% Trade Diploma 19.0% 18.5% 17.4% 16.5% 12.8% College No Diploma 6.5% 6.7% 6.1% 7.2% 7.2% College Diploma 14.7% 16.8% 13.3% 13.4% 16.7% University No Degree 7.7% 7.6% 8.6% 7.1% 9.1% University Degree 9.3% 10.9% 11.9% 8.4% 17.6% SOURCE: Statistics Canada 2001

The educational obtainment for the on-reserve and off-reserve First Nations’ populations in the RSA are shown in Table 3-25, and compared to the total BC Aboriginal population and the BC population. First Nations between the ages of 25 and 64 years old in the RSA have a much higher percentage of individuals that have not obtained a high school diploma compared to the BC average. This is similar to attainment levels of all BC First Nations. First Nations in the RSA have a higher proportion of their workforce with apprenticeship or trade certification that either BC First Nations or BC residents.

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Table 3-25 Highest Level of Education (Completed Credentials) for 25 to 64 year olds, 2006 Aboriginal in RSA BC Aboriginal BC Off- On & Off- On reserve Total Pop reserve reserve No certificate or diploma 54% 34% 42% 12% High school certificate 17% 29% 20% 26% Apprenticeship or trade 6% 14% 13% 12% College, CEGEP or other non- 13% 16% 15% 20% university cert. University certificate, diploma below 6% 3% 4% 6% bachelors University certificate or degree 4% 4% 6% 24% Total 100% 100% 100% 100% SOURCE: Statistics Canada, 2006 Census

B.3 Marital Status The marital status of the region is highlighted in Table 3-26. As illustrated, the rural portion of the LSA (i.e., Electoral Areas) has a slightly higher married population than BC and the Cariboo Regional District, while the City of Williams Lake has a slightly lower married population on average. The rural areas also have a noticeably lower percentage of the population identifying themselves as widowed. Part of this lower widowed rate may be correlated with the lower average age in the rural areas.

Table 3-26 Marital Status, 2001 Electoral Electoral Williams Cariboo BC Areas D, E Areas J and Lake Regional and F K District Never legally married 28.2% 31.6% 34.5% 30.3% 31.6% (single) Legally married (and not 56.4% 53.2% 47.3% 51.7% 50.8% separated) Separated, but still legally 3.5% 3.1% 4.2% 4.3% 3.4% married Divorced 8.6% 9.4% 8.0% 8.7% 8.1% Widowed 3.3% 2.7% 6.0% 5.0% 6.1% SOURCE: Statistics Canada 2001

B.4 Income Characteristics Low income levels are defined as the level at which families or unattached individuals spend 20% more than average on food, shelter and clothing. The total number and percent distribution of economic families and unattached individuals are shown in Table 3-27. The level of income required to be classified for low income status varies by the March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 3-69 Prosperity Gold-Copper Project

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size of community that the family or individual lives in. For example, for Williams Lake, an individual making $14,561 or less in 2000 would be classified as being in the low income level, while a rural area individual making $12,696 would be qualified as low income.

Table 3-27 Incidents of Low Income among Economic Families, 2001 Incidents of Low Income Electoral Electoral Williams Cariboo BC Areas D, E Areas J Lake Regional and F and K District Number of economic families 340 70 450 2,260 144,835 Percent of economic families 8.8% 15.7% 14.8% 12.4% 13.9% that are low income Number of unattached 240 220 570 2605 219,800 individuals Percent of unattached 20.9% 29.5% 34.7% 34.7% 38.1% individuals that are low income SOURCE: Statistics Canada 2001

Overall, the incidents of low income families are slightly higher than the provincial average in Williams Lake and Electoral Areas J and K. The rate of low income among unattached individuals is lower throughout the LSA and the Cariboo than generally observed at the provincial level. Table 3-28 outlines the population between ages 19 and 64, receiving basic income assistance or employment insurance in the LSA, Cariboo Regional District and at the provincial level. As illustrated, the rate of assistance in the LSA is consistently above the provincial level. The City of Williams Lake has consistently maintained a higher level than is typical of the surrounding rural area of the RSA. Williams Lake’s higher rate is not unusual, given the nature of the resource economy. It is often that workers who are looking for work or seasonally unemployed will move to the region’s large community until they become reemployed.

Table 3-28 Population Aged 19 to 64 Receiving Basic Income Assistance or Employment Insurance March 2005 June 2005 March 2006 September 2006 Cariboo-Chilcotin LSA 7.1% 6.0% 5.5% 3.8% Williams Lake 8.8% 7.8% 6.5% 5.3% Cariboo RD 7.0% 6.0% 5.9% 4.3% BC 4.9% 4.8% 4.2% 3.3% SOURCE: BC Stats 2006 (2)

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Appendix 3-C Housing

The total LSA had approximately 9785 residential dwellings in 2001 (not including reserve housing). Table 3-29 highlights the number of dwellings in each jurisdiction and whether they are owned or rented. The majority of the dwelling stock is owned by the resident; however, in the City of Williams Lake and Electoral Area K of the Cariboo Regional District there is a sizeable amount of rental housing stock.

Table 3-29 Housing Number and Ownership for LSA and BC in 2001 Percent Owned Percent Rented Total Number of Dwellings Dwellings Dwellings City of Williams Lake 62.2% 37.8% 4,335 Electoral Area D 83.3% 16.7% 1,235 Electoral Area E 85.0% 15.0% 1,705 Electoral Area F 86.3% 13.7% 1,870 Electoral Area J 78.1% 21.9% 370 Electoral Area K 64.2% 35.8% 270 BC 66.6% 33.4% 1,534,335 SOURCE: Statistics Canada 2001

Table 3-30 outlines the type of dwelling structures that are in place in the LSA. Overall, the majority of housing is in the form of single detached houses. There is also a large volume of movable housing stock. The City of Williams Lake has a substantial amount of apartment accommodation.

Table 3-30 Occupied Private Dwelling by Structural Type, 2001 Single- Semi- Row Apartment Other Movable detached detached House Dwelling House House City of Williams Lake 49.5% 4.8% 8.2% 25.7% 0.3% 11.5% Electoral Area D 71.8% 1.2% 0% 2.0% 0% 25.0% Electoral Area E 73.3% 0.6% 0% 2.9% 0% 23.2% Electoral Area F 85.3% 0.3% 0% 2.7% 0.3% 11.5% Electoral Area J 78.7% 1.3% 0% 1.3% 1.3% 17.3% Electoral Area K 76.0% 0% 0% 2.0% 0% 22.0% BC 54.9% 3.0% 6.3% 32.7% 0.2% 2.9% SOURCE: Statistics Canada 2001

Housing statistics from the 2006 Census for the RSA for on reserve and off-reserve aboriginal population and total BC population are shown in Table 3-31. Overall, on- reserve housing has a higher share of units that need major repairing than aboriginal housing off-reserve.

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Table 3-31 Housing Statistics, 2006 RSA Aboriginal Population BC Non- Aboriginal Population On reserve Off-reserve Occupied private dwellings # Single detached % 82% 71% 49% Semi detached home 1% 3% 3% Row House 4% 4% 7% Apartment, duplex 2% 10% 38% Other single –attached home 11% 12% 3%

Average number of rooms 5.8 6.4 6.4 Average number of person in household 3.3 3.2 2.9 Tenure Owned 30% 60% 69% Rented 22% 40% 21% Band housing 48% 0% 0% Housing quality % In good condition 26 45% - % Needing minor repair 32 31% - % Needing major repair 42 24% 7% SOURCES: Statistics Canada, 2006 Census

Table 3-32 shows the number of dwellings by type for 2001 and 2005 and highlights the change in housing stock. The category “Williams Lake Rural” includes all of School District 27 except Williams Lake. This includes three populated electoral areas outside the Project LSA (Electoral Areas G, H and L). However, overall the housing numbers below are felt to provide a good representation in the change in housing stock over the 2001 to 2005 period by category type. Overall, the City of Williams Lake has experienced a very modest increase in single family dwellings between 2001 and 2005 with an increase of 1.5%. Other dwelling categories have grown more robustly but the key indicator is single family dwellings. In the surrounding rural areas single family dwellings have increased marginally, with the majority of rural growth coming from an increase in residences on acreages.

Table 3-32 Change in Residential Properties by BC Assessment Codes, 2001 to 2005 City of Williams Lake Total Williams Lake Rural Single family dwellings 2005 2,306 9,071 11,377 2001 2,273 9,044 11,317 Percent change 2001 to 2005 1.5% 0.3% 0.5% Condominiums 2005 350 0 350 2001 350 0 350 Percent change 2001 to 2005 0% 0% 0%

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Table 3-32 Change in Residential Properties by BC Assessment Codes, 2001 to 2005 (cont’d) City of Williams Lake Total Williams Lake Rural Manufactured homes 2005 522 28 550 2001 488 28 516 Percent change 2001 to 2005 7.0% 0% 6.6% Duplexes, row housing and other multi-family dwellings 2005 184 0 184 2001 179 0 179 Percent change 2001 to 2005 2.8% 0% 2.8% Stratified rental townhouse and apartments 2005 0 0 0 2001 0 0 0 Percent change 2001 to 2005 0% 0% 0% Residence on two acres or more 2005 157 10,048 10,205 2001 142 9,887 10,029 Percent change 2001 to 2005: 10.6% 1.6% 1.8% SOURCE: BC Assessment Authority 2007

Housing values for the City of Williams Lake and the surrounding rural area are outlined in Table 3-33. Assessed values for single family dwellings in Williams Lake have risen by almost 30% over the past two years reflecting a general upward trend in housing prices across the province. Housing in the rural part of the LSA is more difficult to forecast, given the diversity of dwelling types, particularly with the variation between homes on acreages and other housing stock. However, information on two rural neighbourhoods reflects similar increases in assessed values.

Table 3-33 Assessed Values of Detached Single Family Dwelling, 2004 and 2006 2004 2006 Percent Change 2004–2006 City of Williams Lake South Lakeside in City $112,300 $146,000 +30.0% Columneetza–East of Western Ave $124,200 $157,000 +26.4% Fox Mountain residential acreages $187,600 $241,000 +28.5% Rural LSA Flett/Chimney Valley residential acreage $163,000 $199,000 +22.1% Borland Valley/150 Mile residential acreage $183,500 $232,000 +26.4% SOURCE: BC Assessment Authority 2007

The number of housing starts in the City of Williams Lake between 2006 and 2004 has averaged 20 new units, all of which have been single family dwellings. In the remainder

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of the electoral areas of the Cariboo Regional District, an average of 90 units have been built annually in recent years, with the majority of these being single family dwellings22. The rental market in the Williams Lake area has tightened considerably recently. Table 3-34 highlights the rental market in the Williams Lake area for 2005 and 2006. In October of 2006, the most recent data, there were only three rental units available in the Williams Lake area. Overall the 2006 vacancy rate was 0.4% compared to 9.1% in 2005. Average rents had risen marginally over the past years.

Table 3-34 Rental Accommodation for Williams Lake Private Row (Townhouse) and Apartment Accommodation Vacancy Rates (%) Average Rents Units in October 2006 2005 2006 2005 2006 Vacant Total 9.1% 0.4% $517 $535 3 812 SOURCE: Canada Mortgage and Housing Corporation (December 2006)

In addition to the townhouse and apartment accommodation, there were also single family dwellings for rent in the area. Although these units have not been captured in the rental numbers, the 2001 census did estimate the total number of dwellings for rent locally. In 2001, there were 1640 dwellings available for rent, approximately 38% of all dwellings. In Electoral Areas D, E and K there was an additional 555 rental dwellings in 2001, representing a total of 17% of dwellings in the area. This does not include First Nation housing on reserve in the area23.

22 BC Stats 2007 (2), British Columbia Housing Starts for Urban Areas and Communities 23 2001 census March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 3-74 Prosperity Gold-Copper Project

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Table 3-35 Housing Forecast

Single Housing Demand Assumptions Owned Rented detached Apartment Mobile Other Close Rural 0.85 0.15 0.76 0.02 0.2 0.02 Nearest large town 0.62 0.38 0.5 0.26 0.12 0.12

Housing Demand -11 2 3 4 5 6 7 8 9 1011121314151617181920 Close rural Owned 195258646669686972747375656154565139343325 single detached 14.7 40.1 45.2 49.3 51.4 53.3 52.9 53.7 56.0 57.8 56.3 57.9 50.1 47.2 41.8 43.1 39.3 30.3 26.2 25.6 19.1 mobile 3.9 10.5 11.9 13.0 13.5 14.0 13.9 14.1 14.7 15.2 14.8 15.2 13.2 12.4 11.0 11.3 10.3 8.0 6.9 6.7 5.0 other 0.4 1.1 1.2 1.3 1.4 1.4 1.4 1.4 1.5 1.5 1.5 1.5 1.3 1.2 1.1 1.1 1.0 0.8 0.7 0.7 0.5 Rented 3 9 10 11 12 12 12 12 13 13 13 13 11 11 10 10 9 7 6 6 4 single detached 2.5 6.9 7.8 8.5 8.9 9.2 9.1 9.3 9.7 10.0 9.7 10.0 8.7 8.2 7.2 7.4 6.8 5.2 4.5 4.4 3.3 apartment 0.1 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.3 0.3 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.1 mobile 0.7 1.8 2.1 2.2 2.3 2.4 2.4 2.4 2.5 2.6 2.6 2.6 2.3 2.1 1.9 2.0 1.8 1.4 1.2 1.2 0.9 other 0.1 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.3 0.3 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.1 Total Close Rural226169757881808285888588767263656046403929 Williams Lake Owned 93 255 287 314 326 338 336 341 356 367 358 368 318 300 265 274 250 192 167 163 121 single detached 63.0 172.1 194.1 211.9 220.5 228.7 227.1 230.7 240.4 248.0 241.9 248.5 214.9 202.7 179.3 184.9 168.6 130.0 112.7 110.1 82.0 mobile 15.1 41.3 46.6 50.8 52.9 54.9 54.5 55.4 57.7 59.5 58.1 59.6 51.6 48.7 43.0 44.4 40.5 31.2 27.0 26.4 19.7 other 15.1 41.3 46.6 50.8 52.9 54.9 54.5 55.4 57.7 59.5 58.1 59.6 51.6 48.7 43.0 44.4 40.5 31.2 27.0 26.4 19.7 Rented 57 156 176 192 200 207 206 209 218 225 219 225 195 184 163 168 153 118 102 100 74 single detached 28.6 78.1 88.0 96.1 100.0 103.7 103.0 104.6 109.0 112.5 109.7 112.7 97.5 91.9 81.3 83.9 76.5 58.9 51.1 50.0 37.2 apartment 14.9 40.6 45.8 50.0 52.0 53.9 53.6 54.4 56.7 58.5 57.0 58.6 50.7 47.8 42.3 43.6 39.8 30.7 26.6 26.0 19.3 mobile 6.9 18.7 21.1 23.1 24.0 24.9 24.7 25.1 26.2 27.0 26.3 27.0 23.4 22.1 19.5 20.1 18.4 14.1 12.3 12.0 8.9 other 6.9 18.7 21.1 23.1 24.0 24.9 24.7 25.1 26.2 27.0 26.3 27.0 23.4 22.1 19.5 20.1 18.4 14.1 12.3 12.0 8.9 Total Williams Lake 150 411 463 506 526 546 542 551 574 592 577 593 513 484 428 441 403 310 269 263 196 TOTAL 173 472 532 581 604 627 622 632 659 680 663 681 589 556 491 507 462 356 309 302 225

Annual change in Housing Demand Close Rural 22 39 8 6 3 3 -1 1 3 3 -2 2 -12 -4 -8 2 -6 -14 -6 -1 -10 Williams Lake 150 261 52 43 21 19 -4 9 23 18 -15 16 -80 -29 -56 13 -39 -92 -41 -6 -67 TOTAL 173 299 60 49 24 22 -4 10 26 21 -17 18 -92 -33 -64 15 -45 -106 -47 -7 -77

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Appendix 3-D Transportation

Table 3-36 Estimated Annual Traffic–Williams Lake/Prosperity

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Appendix 3-E Community Services

E.1 Commercial, Retail and Industrial The City of Williams Lake has abundant retail and commercial space available in the community. Recently the Thompson Rivers University relocated from their downtown campus site, creating over 20,000 ft2 of space in the downtown area. In retail, Wal-Mart has announced plans to locate in the community and is now working on building development. Safeway is redeveloping its downtown location24. It is estimated that 350,000 ft2 of new commercial and retail space could come on-line over the next 12 months. Other retailers are also actively investigating locating in the community. Two hundred acres of land along the south side of Williams Lake is undergoing geotechnical work to determine if it is suitable for industrial and commercial development.

E.2 Recreation and Culture Williams Lake has many indoor and outdoor recreation facilities including parks, baseball diamonds, soccer fields, a curling rink with eight sheets of ice, golf courses, a twin ice arena, a 25-m swimming pool, tennis courts and a racing oval. The City also has a strong cultural and artistic community with art galleries, theatre productions, a museum and other activities. The Williams Lake Stampede is held every July 1 weekend and is Canada’s second largest stampede. Residents from throughout the LSA access the recreational facilities and cultural events in Williams Lake. In 2006, the City of Williams Lake completed a feasibility study to develop a multi- purpose events centre in the City. The centre would be designed and constructed to host a wide variety of sporting, recreation, concert, equestrian and family events. Tradeshows would also be hosted.

E.3 Education The City of Williams Lake and surrounding area falls within School District 27. The number of students for the school district is outlined in Table 3-37. As illustrated the total enrolment has been steadily declining across the District. Overall, enrolment is down 10% between 2002/03 and 2006/07.

Table 3-37 Student Enrolment in School District 27 2002/03 2003/04 2004/05 2005/06 2006/07 Total Enrolment 7554 7393 7201 6960 6792 Enrolment change -161 -192 -241 -168 SOURCE: BC Ministry of Education 2007(3)

There are several elementary schools in the City of Williams Lake: Chilcotin Road Elementary, Glendale Elementary, Kwaleen Elementary, Marie Sharpe Elementary,

24 Personal communication, Allan Madrigga, Economic Development Officer, City of Williams Lake, February 2, 2007. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 3-77 Prosperity Gold-Copper Project

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Mountainview Elementary, Nesika Elementary, Popular Glade Elementary, and Wildwood Elementary. Williams Lake has two secondary schools including Columneetza Secondary, and Williams Lake Secondary. Outside the City and in the LSA are Naghateneqed Elementary/Junior Secondary in the Nemiah Valley, Alexis Creek Elementary and 150 Mile Elementary. One elementary school in Williams Lake offers an alternate school year that coincides with the work schedule of loggers. There is a month long vacation in April during spring break-up, and the school year goes until the end of July. The school district also operates a co-ed dormitory for students whose parents live in isolated areas of the district. Another option for these rural students has been to board them in private homes. Thompson Rivers University, with its main campus in Kamloops, offers educational opportunities throughout the Cariboo Chilcotin through its satellite campus in Williams Lake. The former University College of the Cariboo became BC’s newest University in September 2004. The new University acquires assets and responsibilities of the BC Open Learning University, moving it on to the Kamloops Campus. In Williams Lake, the government has committed $12 million to create a new campus by renovating and expanding the former Anne Stevenson Secondary School facility.

E.4 Police and Justice The municipal RCMP police force in the City of Williams Lake has 23 officers. This is the same number as in 1995. The Williams Lake provincial detachment has 10 officers servicing the surrounding areas, again the same number as in 1995. Two of these officers are assigned to the First Nations Community Policing section primarily serving the local communities at Sugar Cane, Dog Creek, Alkali Lake, and Soda Creek25. The Highway Department is made up of four regular members and a corporal, and services an area that includes Highway 20 from Williams Lake to Bella Coola. The Williams Lake municipal department currently has one officer for every 516 residents, with each officer costing approximately $90,217 in 200526. The Williams Lake RCMP detachment is also staffed by five municipal employees and three public service employees and has a number of auxiliary constables that assist in a range of policing tasks. There is also a small detachment of four RCMP officers in the LSA at Alexis Creek. The City of Williams Lake is the location of the area’s law courts. These courts service the entire LSA.

E.5 Fire Protection The City of Williams Lake fire department consists of three career and 28 paid on call members. The department operates out of one fire hall in downtown Williams Lake and one fire truck stationed at the Williams Lake airport. The fire department services the City of Williams Lake and the surrounding area, including the Williams Lake airport. Major fire department equipment includes: • 1987 GMC one tonne mini pumper (pumper #7)

25 City of Williams Lake RCMP Departments, website: www.williamslake.ca/index.asp?p=127. 26 BC Ministry of Public Safety and Solicitor General (2006), Police and Crime, Summary Survey 1996 to 2005. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 3-78 Prosperity Gold-Copper Project

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• 1981 Ford 840 GPM combination pumper (engine #11) • 1994 E1 Custom 1050 GPM triple combination pumper (engine #15) • 1995 Freightliner, 2500 gallon tanker (tender #16) • 1998 Superior, 75 foot ladder truck (Ladder #17) • 1987 Amertrk RIV, 500 GPM pumper truck, stationed at airport (Red 1) In total, a population of 20,000 people in an area covering approximately 60 square miles is served by the Williams Lake fire department. Specifically, this is the area inside the City of Williams Lake. In addition, the City of Williams Lake has an agreement with the CRD to cover some of the rural population immediately adjacent to the City. The Cariboo Regional District operates thirteen fire departments through the rural portion of the regional district. However, none of these fire stations are based in electoral areas K and E due to the small population (Bastien, pers. comm. 2008). This results in the Williams Lake fire department being the closest service to much of the LSA. The CRD does not provide fire fighting services to First Nation communities on reserve. In the event of a fire involving forest lands, the Ministry of Forests fire service would respond. Also, in the event that a provincial emergency was declared (as was the case during the 2003 fire storm in the Thompson Okanagan) the Williams Lake fire department would become involved.

E.6 Water and Sewer Services

Watersheds and Water Use The Water Stewardship Division of the BC Ministry of Environment is responsible for managing the province’s water resource in the interest of all uses and values. Programs include public safety in the event of floods and droughts, planning, protection and sustainability of the water resource, and oversight for water rights and licensing. The number of community watersheds and water licences affected by Project components is shown in Table 3-38.

Table 3-38 Water Rights and Licences within Project Components Mine Site Total Number Mine Site Buffer Trans. Buffer Access Road Community watersheds 0 0 0 0 0 Water licences (count) 9 0 0 8 1 SOURCE: Jacques Whitford AXYS GIS Analysis

There are 2586 water licences or water licence applications in the Cariboo Water District and 620 water licenses or applications in the Chilcotin precinct. In the RSA, there are four community watersheds totalling approximately 26,000 ha. The largest of these, at 25,527 ha, is the Nemiah Community Watershed. Smaller community watersheds are located in Alexis Creek, Dog Creek and Williams Lake. There is one

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Water Use Community in the LSA, on Rim Rock Creek in Alexis Creek (Water Stewardship Division 2007b).

Table 3-39 Designated Community Watersheds in the RSA Date Created Description Location Source Name Hectares 15-Jun-95 Nemiah Community Watershed Nemiah Valley Nemiah Creek 25,527 15-Jun-95 Rim Rock Community Watershed Alexis Creek Rim Rock Creek 29.3 15-Jun-95 Harold Community Watershed Dog Creek Harold Brook 41.1 15-Jun-95 Weetman Community Watershed Williams Lake Weetman Creek 359.3 SOURCE: Water Stewardship Division (2007a)

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4 Community and Health Services

As detailed in the Project Report Specifications (PRS) and the Environmental Impact Assessment (EIS) Guidelines, changes in social conditions within the study area as a result of the Project, including a consideration of community and health services, are to be assessed.

4.1 Scope of Assessment for Community and Health Services

4.1.1 Regulatory Setting The requirement to assess the health implications of the Project was identified in Section 7.5 of the PRS and Section 7.3 of the EIS Guidelines. The provision of these services to mine personnel or contractors and their families is substantively delivered and funded by government as part of our universal health care system. The regulatory framework (e.g., the Canada Health Act) in this context does not concern the Project Proponent but rather governs public health service standards.

4.1.2 Key Issues for Community and Health Services The British Columbia environmental approval process requires that the effects of the Project on community and health services be addressed. These services include hospital and medical, emergency and social services. Other community services such as recreation and municipal infrastructure are addressed in Section 3 (Social Effects) of this volume. Interactions between the Project and community and health services are considered for the major Project phases, for which it is possible to reasonably characterize and measure changes in workforce and population. The greatest effects are expected to occur during Project construction and operations when employment levels are at their peak. The construction phase will involve clearing and development of the mine site, the transmission line corridor and the access road. The operations phase will entail not just mine operations but road use for the transport of people and goods, as well. The closure and post-closure phases will involve very few workers; therefore, it is unlikely that the demand for services will be substantially different from base case conditions. Closure and decommissioning activities will affect the mine site and the transmission corridor. Health issues may also arise where employment conditions differ markedly from the baseline to the point where they contribute to increased risk behaviour. High incomes and extended work shifting are two areas that can sometimes lead to concerns about the inappropriate spending of income, family stress and abuse, drug and alcohol abuse and sexually-transmitted diseases. Although there is a link between off-site and on-site health and safety issues, the latter is addressed under a separate human health and safety assessment (Volume 6, Section 6). The six accidents or malfunctions considered here (fuel spill, tailings leak, concentrate haul spill, road culvert failure, excessive water in Tailings Storage Facility [TSF], and

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loss of power to TSF) will either not interact with community and health services or have a very low level of interaction due to the application of codified practices. Any leakage or spill, for example, would require a joint response by TML and government agencies as standard practice. For example, the Cariboo Regional District has a plan in place to deal with such accidents and malfunctions, as mandated by the Provincial Emergency Program. In assessing the effects of the Project on community and health services, corporate policies regarding items such as workforce settlement, housing, transportation and occupational health and safety have been considered.

Table 4-1 Interaction of the Project with Community and Health Services Project Activities/Physical Works Project Description Reference for Activity VEC Construction and Commissioning Fisheries compensation works construction Project Description and Scope, Vol. 3, Sec. 8 0 Water diversion Project Description and Scope, Vol. 3, Sec. 6 0 Construction sediment control Project Description and Scope, Vol. 3, Sec. 6 0 Access road construction and upgrades Project Description and Scope, Vol. 3, Sec. 6 1 Camp construction Project Description and Scope, Vol. 3, Sec. 6 2 Site clearing (clearing and grubbing) Project Description and Scope, Vol. 3, Sec. 6 1 Soils handling and stockpiling Project Description and Scope, Vol. 3, Sec. 6 0 Construction: plant site and other facilities Project Description and Scope, Vol. 3, Sec. 6 2 Lake dewatering Project Description and Scope, Vol. 3, Sec. 6 0 Starter dam construction Project Description and Scope, Vol. 3, Sec. 6 2 Sourcing water supplies (potable, Project Description and Scope, Vol. 3, Sec. 6 0 process/TSF) Site waste management Project Description and Scope, Vol. 3, Sec. 6 0 Clearing of transmission line ROW Project Description and Scope, Vol. 3, Sec. 6 2 Construction/Installation of transmission line Project Description and Scope, Vol. 3, Sec. 6 2 Vehicular traffic Project Description and Scope, Vol. 3, Sec. 6 1 Concentrate load-out facility near Macalister Project Description and Scope, Vol. 3, Sec. 6 1 (upgrades to site) Operations Pre-production and production Project Description and Scope, Vol. 3, Sec. 6 2 Crushing and conveyance Project Description and Scope, Vol. 3, Sec. 6 2 Ore processing and dewatering Project Description and Scope, Vol. 3, Sec. 6 1 Tailing storage Project Description and Scope, Vol. 3, Sec. 6 0 Waste rock stockpiles Project Description and Scope, Vol. 3, Sec. 6 0 Potable and non-potable water use Project Description and Scope, Vol. 3, Sec. 6 0 Site drainage and seepage management Project Description and Scope, Vol. 3, Sec. 6 0 Wastewater treatment and discharge Project Description and Scope, Vol. 3, Sec. 6 0 (sewage, site water) Water release contingencies for extended Project Description and Scope, Vol. 3, Sec. 6 0 shutdowns (treatment) Solid waste management Project Description and Scope, Vol. 3, Sec. 6 0 Maintenance and repairs Project Description and Scope, Vol. 3, Sec. 6 1 Concentrate transport and handling Project Description and Scope, Vol. 3, Sec. 6 1

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Table 4-1 Interaction of the Project with Community and Health Services (cont’d) Project Activities/Physical Works Project Description Reference for Activity VEC Vehicle traffic Project Description and Scope, Vol. 3, Sec. 6 0 Transmission line (includes maintenance) Project Description and Scope, Vol. 3, Sec. 6 1 Pit dewatering Project Description and Scope, Vol. 3, Sec. 6 0 Low-grade stockpile processing Project Description and Scope, Vol. 3, Sec. 6 0 Concentrate load-out facility near Macalister Project Description and Scope, Vol. 3, Sec. 6 1 Closure Reclamation of low grade stockpiled material Project Description and Scope, Vol. 3, Sec. 6 1 Reclamation of waste rock stockpiles Project Description and Scope, Vol. 3, Sec. 6 1 Tailing impoundment reclamation Project Description and Scope, Vol. 3, Sec. 6 1 Pit lake, Prosperity Lake and TSF Lake filling Project Description and Scope, Vol. 3, Sec. 6 0 Plant and associated facility removal Project Description and Scope, Vol. 3, Sec. 6 1 Road decommissioning Project Description and Scope, Vol. 3, Sec. 6 1 Transmission line decommissioning Project Description and Scope, Vol. 3, Sec. 6 1 Post-closure Discharge of tailing storage facility water Project Description and Scope, Vol. 3, Sec. 6 0 Discharge of pit lake water Project Description and Scope, Vol. 3, Sec. 6 0 Seepage management and discharge Project Description and Scope, Vol. 3, Sec. 6 0 Ongoing monitoring of reclamation Project Description and Scope, Vol. 3, Sec. 6 0 Interaction of Other Projects and Activities Project Planning and Alternatives Assessment, Logging 1 Vol. 2, Sec. 7 Project Planning and Alternatives Assessment, Ranching 1 Vol. 2, Sec. 7 Project Planning and Alternatives Assessment, Irrigation 0 Vol. 2, Sec. 7 Project Planning and Alternatives Assessment, Tourism and recreation use 1 Vol. 2, Sec. 7 Project Planning and Alternatives Assessment, Trapping 1 Vol. 2, Sec. 7 Project Planning and Alternatives Assessment, Transmission Corridor Considerations 0 Vol. 2, Sec. 7 Project Planning and Alternatives Assessment, Mining and gravel extraction 1 Vol. 2, Sec. 7 Traditional Use First Nations, Vol. 8, Sec. 2 0 Project Planning and Alternatives Assessment, Community Infrastructure/Development 1 Vol. 2, Sec. 7 Accidents, Malfunctions and Unplanned Events Additional Requirements Pursuant to CEAA, Fuel /chemical spill–land 1 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Fuel /chemical spill–water 0 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Pipeline Failure 1 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Concentrate spill–land 1 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Concentrate spill–water 1 Vol. 9, Sec. 2

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Table 4-1 Interaction of the Project with Community and Health Services (cont’d) Project Activities/Physical Works Project Description Reference for Activity VEC Additional Requirements Pursuant to CEAA, Road culvert failure 0 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Excessive water in TSF 0 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Loss of power to TSF seepage recovery 0 Vol. 9, Sec. 2 NOTES: 0 = No interaction 1 = Interaction occurs; however, based on past experience and professional judgment the interaction would not result in a significant environmental effect, even without mitigation; or interaction would not be significant due to application of codified environmental protection practices that are known to effectively mitigate the predicted environmental effects. Details on justification for this rating are provided in the issues scoping section 2 = Interaction may result in a significant environmental effect; potential effects are considered further in the EA

Table 4-2 Potential Community and Health Service Effects Associated with the Project Potential Socio-Economic Effects Project Activities and Physical Works Project will affect the demand for Health Services and Facilities Construction and Commissioning Camp construction 9 Construction: plant site and other facilities 9 Starter dam construction 9 Clearing of transmission line ROW 9 Construction/Installation of transmission line 9 Operations Pre-production and production 9 Crushing and conveyance 9

4.1.3 Selection of Measurable Parameters The supply and demand for public health services are sensitive to Project effects due to the influence of the labour force and related changes in population and family characteristics. The availability of services is tracked by Interior Health Authority (IHA) and is often used to determine the region’s capacity for change. Health services are considered important by communities as a barometer of social well-being. Measurable indicators for the public health setting include: • Number, capacity utilization and proposed future expansion of health services and facilities, including hospitals, acute care services, community care facilities, clinics, emergency services, health care professionals (including doctors) and service

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agencies and providers. These indicators provide an understanding of the supply of, and access to, health services. • Public health status, including life expectancy, mortality rates, disease vectors, growth and development measures, and health services utilization rates that provide an indication of population health.

4.1.4 Temporal Boundaries The temporal boundaries for community and health services are most closely associated with the first two Project phases, construction and operations. The onset of construction will bring a burst of employment and an increased demand for health services as the temporary population adjusts upward. A slight decline will occur as construction nears completion, but will increase again to a steady state as the mine reaches its peak operating (and employment) capacity. All demand measures will decline as employment declines as operations cease and de-commissioning occurs.

4.1.5 Spatial Boundaries The Local Study Area (LSA) includes the area from Williams Lake to the mine site, the rural areas and communities near the mine site (Alexis Creek, Big Creek, Hanceville, and Riske Creek) and the First Nations communities of Nemiah, Stone, Esketemc, Canoe Creek, Anahim, Alexis Creek (Redstone) and Toosey. The political boundaries include the City of Williams Lake and areas J, K, D, E and F of the Cariboo Regional District. The Regional Study Area (RSA) is the entire Cariboo Regional District and includes the local area, as well as the remainder of the rural portion of the Cariboo Regional District, Quesnel and 100 Mile House.

4.1.6 Environmental Effects Rating Criteria for Assessing Effects Significance Project effects were characterized using seven criteria: direction, magnitude, geographic extent, frequency, duration, reversibility and socio-economic context. Wherever possible, quantitative measures were used to characterize each economic effect. For example, magnitude can be quantified in terms of anticipated additions to facilities or health care personnel needed to maintain acceptable standards of health care. Similarly, duration and frequency are closely correlated to projected employment and population levels. Where quantitative measures were not available, the following qualitative rankings were used:

Direction • Positive—contributes to the stability or enhanced availability of health services.

Magnitude • Low: effect does not raise demand beyond normal annual fluctuations. • Moderate: effect may result in service adjustments, but will not require new facilities or capacity additions.

Geographic Extent • Local: rural areas near mine and Williams Lake. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 4-5 Prosperity Gold-Copper Project

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Figure 4-1 Regional and Local Study Areas

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4.1.6.1 Standards for Determining Significance As with other socio-economic parameters, community and health services operate within a market environment, even though many of these services are from public sector agencies. Demand is driven by changes in population, which over the long-term should lead to balanced supply conditions that are supported by local taxes paid by workers and their families and senior government transfer payments. Any project that generates new growth and population gains should see the supply in services increase in line with demand such that overall service levels (which in the case of health services are standardized) are maintained. A significant effect is therefore more likely to occur in the short-term, before the health and service system has had an opportunity to adjust. This may be measured in months rather than years. Unfortunately, most measurable parameters are generated on an annual or even longer basis and cannot be used to identify short-term effects. In these cases, significance becomes subjective, although health care professionals involved may still have access to quantitative measures (e.g., emergency wait times, availability of acute care beds, access to physicians).

4.1.7 Influence of Consultation on the Assessment The interviews conducted with the IHA were instructive for clarifying issues and setting the base and future case situations in the LSA, for First Nations and the public at large. The first point is that while the majority of population effects and related changes in demand for health services will be in Williams Lake, it could be in the outlying rural areas where the effects may be most evident. Even small changes in rural populations can have a demonstrable effect on service availability and system capacity. For example, there has been some controversy surrounding ambulance response times to emergency situations in rural communities along Highway 20 over the last several years. An addition of 20 to 30 families into a smaller community of 200 to 300 residents may stress the system more than a proportional increase of population in Williams Lake. However, this would possibly be only a short-term effect if those additional families raised demand to the point of more stable service levels. The nature of health issues and associated health service needs in rural areas will need to be considered in proposed mitigation strategies. The second point concerns the effects of the Mountain Pine Beetle (MPB), and the associated changes in forestry employment and population over the next decade. Our discussions with Interior Health representatives suggested that while the Project would in fact create a short-term surge in demand for health care services, it could effectively be offset by the potential loss of families once forestry mill closures occur during the same time period. If the demographic and family profile of incoming mine workers matched that of outgoing forest workers, then the offset would be manifested both in type and scale of demand. From this perspective, and at the cumulative scale, the Project would have more beneficial effects than negative. Both of these effects are discussed more fully in this assessment.

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4.2 Baseline Conditions for Community and Health Services Prior to the Project being deferred in 1999, the following analysis of community and health services had been completed: • The identification of health services was, for the most part, completed. Most of the information was time sensitive and needed to be updated to current conditions. The organization and delivery of health care services has changed dramatically since 1999. Organizations such as the Cariboo Health Services Society and the Central Chilcotin Health Council no longer exist. Similarly, the environment for health planning and delivery has completely changed and is now the responsibility of IHA. • Some health status indicators were provided in the report, but these required updating and had to be supplemented with additional indicators. • A major part of the Socio-economic Impact Assessment (SEIA) is the assessment of Project effects, mitigation measures and the significance of residual effects. Very few effects were scoped or analyzed in the earlier work. For the current assessment, baseline information was collected on health services and health status from published documentation of IHA. This was supplemented by telephone interviews with government agencies to verify current conditions and determine future capital and development plans. As there is only one Key Indicator for this VSC, baseline conditions are summarized below in Section 4.3.3. A more detailed description of the community and health services profile, emergency services and health status of the population is provided in Appendix 4-A to 4-C.

4.3 Project Effects Assessment

4.3.1 Scope of Assessment for Community and Health Services This assessment examines the effects of the Project on the demand for community and health services, and the region’s response to that demand. The expectations are that current service levels would not be compromised and that health measures would be maintained.

4.3.2 Effects Assessment Methodology for Community and Health Services Information on baseline service levels, facilities and conditions were provided by IHA and supplemented by direct contact with facility administrators. Similarly, available community services were identified from websites and service plans, and verified with direct contact with managers and administrators. The effects on community and health services is largely dependent on population effects. The number of resident hires is adjusted to account for workers coming off unemployment or from other companies/industries. Given the high average wages of the mining industry, this effect would be substantial. Anticipated net population gains are then compared to the experiences of community and health care providers when the Gibraltar and Mt. Polley mines re-opened in 2004 and 2005, respectively. The combined workforce of the two mines exceed the planned workforce for the Prosperity Mine, and

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thus provide a credible benchmark for the anticipated effects of the operation labour force on community and health services. Several interviews were conducted with Interior Health representatives and other service providers to gauge system capacity and likely response to the in-migration of a new mine workforce. A distinction was made between workers residing in Williams Lake and those in rural areas, where access to health services is more limited. For First Nations likely to be employed at the mine, a residency distribution similar to the general population is assumed. Although on-reserve populations are classified as rural, it is also true that the majority of total aboriginal population (and an even higher proportion of labour force participants and the employed) is off-reserve and clustered in Williams Lake.

4.3.3 Baseline Conditions Health services for all residents in the region, including First Nations’ members, are the responsibility of IHA. Its goals are to improve population health, provide a network of hospital care, and ensure choices for home and community care services. IHA has identified shortages of health care professionals, the aging and longer-living demographic, new technologies, infrastructure renewal and an emphasis on a multi- disciplinary approach with a focus on prevention and improved service delivery as major issues. The federal government provides funding to First Nations communities for a range of locally-delivered health programs (in addition to public health services from the province) including tobacco reduction, Aboriginal Head Start, disease prevention/control and Brighter Futures/Building Healthy Communities. The responsibility for these programs and their funding is in the process of being transferred from the Department of Indian and Northern Affairs to the First Nations Leadership Council. Community and health services in the LSA are centred in Williams Lake and limited in the outlying rural areas where the population is much more dispersed. Community care facilities and services in the LSA include Cariboo Memorial Hospital (CMH), a Level 2 Community Hospital, which provides basic emergency and inpatient services such as observation and assessment, as well as certain core specialty and obstetrical services. Community care facilities such as residential care beds, assisted living units and home support services are also available in Williams Lake. Access to health services in Williams Lake is comparable to what other communities in the province experience (McMahon, pers. comm. 2007). As a relatively young population in BC terms, the greatest needs are in primary care, and both Williams Lake and rural areas have in-region access to these services. Williams Lake has some services that might not be found in similar sized communities elsewhere, because it serves such extensive rural areas to the east and to the west. For example, it has an excellent obstetrics department, good mental health programs, a CT scanner and a core of well qualified general practitioners (McMahon, pers. comm. 2007). Williams Lake’s position as a regional service centre for health services contributes to community stability, as it is a factor in retaining existing families and attracting new ones into the region. Three nursing stations operate in the Chilcotin (Alexis Creek, Anahim Lake and Tatla Lake). The nursing stations are mandated to deal primarily with the First Nations

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individuals, but they also provide primary care services (e.g., immunizations, public health, emergency service) to the other residents on behalf of the Province. Almost all extended and community care facilities are located in Williams Lake. There are currently waiting lists for beds in both Deni House and the Cariboo Lodge, although the waiting lists are not as long as those in other communities. In the future, Interior Health is anticipating a stable or marginally growing population in the region in the medium-term (i.e., 5 to 10 years) due to the effects of the MPB on the forestry industry and its associated jobs. There are no current plans for facility additions but upgrades to the second floor of Cariboo Memorial have been identified as a priority. Service resizing in the near-term will depend in part on IHA's interpretation of Statistics Canada’s 2006 Census results (MacMahon, pers. comm. 2007). The recruitment and retention of health care professionals continues to be a concern that will increase in the future as existing staff retire. Many professionals and service providers are reluctant to come to the region from southwest British Columbia (MacMahon, Rualt, pers. comm. 2007). Emergency services consist of the following: • Williams Lake and the Cariboo Regional District (CRD) offer several emergency services, including 911 service, fire protection and search and rescue. They also work in cooperation with the Provincial Emergency Program (PEP). • Williams Lake and the CRD have emergency plans that coordinate local government, health, RCMP, ambulance, hospital and other services as part of the PEP. • The City of Williams Lake is fully covered by fire fighting services. The fire hall, now under construction, will also serve as the ambulance dispatch, search and rescue centre, and a fire training centre for structure fire fighting training. The Cariboo Regional District has no fire services in electoral areas K and E due to the small population. The CRD does not provide fire fighting services to First Nation communities on reserve. • Ambulances services are available in Williams Lake, Alexis Creek and Anahim Lake. The Alexis Creek Ambulance station services the area from Riske Creek to Tatla Lake and covers the area south to Nemiah. • The BCAS Airevac Program transfers patients when it is medically desirable and economically advisable. Dedicated aircraft, commercial, charter and armed forces aircraft can be used. • The Central Cariboo Search and Rescue Unit (CCSAR) is based in Williams Lake and assists the RCMP and ambulance services in attending to motor vehicle accident victims, searching for missing persons and aircraft, responding at disaster sites, and providing back up to the agencies aiding disaster victims. They serve the entire RSA. Williams Lake has a full range of social services, including advocacy, counselling, alcohol and drug treatment, support groups, day care and babysitting. Services specific to men, women, children, families and the disabled are available. The primary provider of social services is the Ministry of Children and Family Development. Services include child protection, family development, adoption, foster care, early childhood development, child care, child and youth mental health, youth justice and services, special needs children and youth, and adult community living services. The Ministry of Community Services (seniors, women’s and community services) and the Ministry of Employment and Income Assistance (income assistance, disability March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 4-10 Prosperity Gold-Copper Project

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assistance, supplementary assistance and employment programming) also provide services in Williams Lake. Other community-based service providers such as the Mental Health Association, self-help groups and churches provide a variety of services in the LSA. Although programs and services are available to deal with most social and health problems, this does not mean that health measures and social problems are at levels the community is willing to accept. An ongoing dispute between the City of Williams Lake and IHA over drug and alcohol treatment is an example of how gaps in the current system are creating external costs. The City claims it spends about $150,000 annually dealing with public intoxication (mainly in RCMP time), and has asked IHA to compensate those amounts or build a detox centre in the community. (Hitchcock 2008) Another example is the loss of on-reserve addiction counsellors, who in the past used to provide direct access to assistance for those members with addiction problems. Although these issues are too complex to be properly addressed here, they suggest that any population event could expose problems at the system’s weakest points. It is also evident that these issues are base case conditions in the absence of the project and represent ongoing challenges for the public health system as a whole.

4.3.4 Assessment of Project’s Demand on Health Services

4.3.4.1 Project Effects of Demand on Health Services The demand for health and social services will be influenced primarily by population change in the RSA and LSA attributable to new residents working at the mine, and secondarily, to the construction and operation activities of the mine itself. A population increase in any community will create a proportional increase in the demand for health, emergency and social services. Peak employment of 447 workers will occur in 2010 during construction and 488 workers during Year 8 (i.e., 2018) of operations. As noted in Table 4-3, the anticipated number of new residents during these peak phases will be 376 and 1440, respectively in urban areas (mainly Williams Lake), and 56 and 213 people in rural areas. Compared to construction workers, operations’ employees are much more likely to reside in the community due to the longer term employment. Thus, increases in demand for these services would be expected to be more evident during operations than construction.

Table 4-3 Projected Peak and Average Population and Households for Construction and Operating Phases Construction Operating Peak Peak Median Population Urban 376 1,440 1,204 Rural 56 213 178 Households Urban 150 592 495 Rural 22 88 73 NOTES: Construction phase duration two years. Operating phase duration 20 years. Peak operating year is 2018. Last year of construction overlaps with first year of operations– impacts included in operations scenario. For resident labour force only.

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The types of services demanded will depend upon the personal, family and housing characteristics of the work force. It is assumed that these are unlikely to differ substantively from the mine labour force already residing in the RSA (i.e., workers at Gibraltar and Mt. Polley). The average age of Gibraltar workers is 41, while 40% have families with children. Therefore, the types of services in most demand (i.e., primary care) are expected to reflect the baseline (that is, the types of services demanded would be typical of the current profile). The effects on health and social services in rural areas could be more evident than in Williams Lake. Resizing services is easier in larger communities where a core of facilities exist. For small communities, including those on reserve, an increase of 15 to 20 families should not affect access to primary care and other health and social services, but may lead to service problems in areas where current capacity is seen as being deficient (e.g., ambulance, counselling and addiction services). The experience of First Nations’ workers who reside off-reserve (mostly in Williams Lake) is not expected to be substantially different than that of the workforce at large. On- reserve health issues would be a concern, but may be contained by default due to limited labour availability and especially housing. Our understanding is that many health and social stress issues can be traced back to inadequate on-reserve housing and that many if not most First Nations’ workers would be drawn from Williams Lake or the surrounding rural areas.

4.3.4.2 Mitigation Direct measures to mitigate the demand for health and social services resulting from population gains are not generally required of Project Proponents because these services are publicly supplied to provincial standards and paid for through a variety of tax sources. Nevertheless, measures to mitigate other Project effects, including workforce settlement plans, local hire policies and local procurement policies that maximize local employment and reduce unemployment, are expected to have an overall beneficial effect on social and health services. In terms of health effects related to on-site Project activities, construction, operations, and decommissioning will be subject to requirements regarding the protection of, and minimization of risk to, human health and safety. These measures, addressed in the Human Health and Environmental Risk Assessment, will also help minimize the demand for publicly-supported community health services.

4.3.4.3 Characterization of Residual Project Effects The Project will result in an increase in the demand for health and social services in proportion to expected population growth in rural areas near the mine and in Williams Lake. A brief surge in demand during peak construction employment of 376 in 2009 (1.6% above baseline population) will subside once the mine is built. It will be succeeded by a steadier level of demand that will closely follow the employment and population effects of the Project. As noted in the population assessment, these levels will be between 5 and 6% greater than the base case population (i.e., the forecast population without the Project). Once Project construction commences, IHA will be in a position to conduct forward planning in anticipation of the in-migrating work forces and their families. As with any population event, IHA would resize services to meet demand and maintain health service levels in concordance with provincial standards. Access to primary health

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care services, basic outpatient medical consultation, treatment options, laboratory services and residential care are expected to remain unchanged.

4.3.4.4 Cumulative Effects As noted in the assessment of Project effects on populations and characteristics, the potential for cumulative effects is low due to the anticipated closure of the Mt. Polley mine, and the onset of a declining forest industry due to the MPB. These effects are most likely to be during the Project operations phase when the negative effects of the MPB on local manufacturing capacity are expected to occur (i.e., post-2013). As noted in the residual effects statement above, the Project will result in an incremental population gain (compared to the baseline) and new demand for services. However, the duration of peak demand will coincide with the closures of the two mines and almost certain loss of forest manufacturing capacity in Williams Lake. The net result (i.e., the Project future case) may well be a net reduction in the employed labour force compared to today, and conceivably a loss of population in the LSA and the RSA, compared to today. The loss of population would be accompanied by a commensurate decline in the demand and need for social, health and emergency services. In this case, the Project’s contribution to cumulative effects would be to offset and minimize population and service losses resulting from the other projects. Rather than contributing to increased service demands, the Project may be viewed as stabilizing the community by maintaining population and service during a time of decline in other industries. Interior Health has expressed some concern about lower population levels in the Cariboo in the future, and how this might produce unintended threshold effects for health and other social services (McMahon, Rualt, pers. comm. 2007). If the region loses enough population, the threshold levels needed to support local service delivery may be breached, resulting in facility closures and the loss of health care professionals and providers. The Project may not prevent this from happening, but will certainly act as an offsetting factor.

4.3.4.5 Determination of Significance The Project will increase the RSA population during construction and operations due to the influx of workers to the mine. This increase in population will generate new demand for health, social and emergency services, but this will be within the capacity of the existing system, based on the experience of existing mines in the region. Even then, this new demand will be offset during the operations phase by the closures of the Gibraltar and Mt. Polley mines and a lower forest processing work force due to MPB effects. The Project effect on health and emergency services is not anticipated to be significant. For First Nations’ workers, especially those on reserve, mitigation measures would be required in order to contain and manage issues relating to social life and family stress. Providing suitable arrangements can be worked out with band health agencies, we believe the effects on health would also not be significant. For the overall workforce, the net effect could be positive if the Project reverses possible population loss noted in the cumulative effects and is able to maintain system capacity and service levels. The experience of other operating mines in the region provides us with recent historical evidence of the possible effects of the Project. Interviews with IHA officials did not identify any noticeable changes in service demand due to the commencement of

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operations at Gibraltar (2004) or Mt. Polley (2005) (Ruault, pers. comm. 2007). Emergency service providers did not experience a noticeable increase in response rates when these mines began operation (Hill, pers. comm. 2007). Similarly, major health indicators among First Nations did not indicate problems linked to the increase in the mine workforce, which in the case of Gibraltar now constitutes 12% of total labour. (McGregor, pers. comm. 2008) The report prepared in 1999 before the Project was deferred noted that the construction and operation of Mt. Polley had not had any discernable effect on the demand for social services provided by the Ministry of Children and Families. The Gibraltar and Mt. Polley mine projects provide reliable benchmarks for health, social and emergency service effects and a high level of confidence in this assessment.

4.3.4.6 Follow-up and Monitoring A monitoring program to track potential problems with unforeseen effects would also be appropriate. Such monitoring would then be linked back to adaptive and contingency mitigation as deemed appropriate. As suggested in the mitigation discussion, the overall management of First Nations’ health issues (if any) would be coordinate and cooperatively managed with band health agencies. Follow-up and monitoring is not proposed for public health and social services.

4.4 Summary of Effects on Community and Health Services The Project’s direct and cumulative effects were assessed for community and health services, specifically on the demand for public health services by workers and their families, and on the community’s ability or capacity for responding to that demand.

4.4.1 Summary of Mitigation on Community and Health Services As noted Table 4-4, mitigation would not normally be anticipated for community and health services when the expectation that the direction of effects will be positive. For First Nations members employed by the Project, the demand for health services might increase where access is constrained (i.e. on reserve) but hiring, scheduling and contracting with First Nations’ workers in a manner that is sensitive to their family and social needs could help minimize these effects.

4.4.2 Summary of Residual Project and Cumulative Effects for Community and Health Services The Project’s workforce will reside primarily in the Williams Lake area, boosting the population and causing an increase in the demand for health services over and above what would be expected under the base case. The population of the Cariboo Regional District has not grown substantially in the last 15 years and forecasts call for growth rates that fall well below the provincial average well into the future. The primary concern of health care professionals at the Interior Health Authority is not the capacity or ability of the health care system in the RSA to deal with the expected population influx of the Project (or other major industrial projects), but instead potential population decline that over the long term could result in capacity reductions and services cutbacks. This concern is probably more acute for services in the rural Chilcotin than in Williams Lake. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 4-14 Prosperity Gold-Copper Project

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In this context, the Project is expected to offset cumulative effects resulting from future mine closures at Mt. Polley, as well as probable forestry mill closures once the MPB epidemic forces a long-term decline in the local timber supply. For these reasons, the Project is not expected to have any significant negative effects on the demand for health services in the RSA. Based on the region’s experience serving the mine workforce at Gibraltar and Mt. Polley, we have a high level of confidence in these effects predictions. We also consider the likelihood of the effects being neutral or positive to be high.

4.4.3 Follow up and Monitoring for Community and Health Services Follow-up on First Nations health mitigation would be undertaken and coordinated with labour market and housing mitigation to ensure a coordinated approach to worker/family health. Monitoring in cooperation with band health agencies for unintended consequences and contingent mitigation is also recommended.

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Table 4-4 Summary of Project Residual Environmental Effects: Community and Health Services Residual Environmental Effects Characteristics

Proposed Potential Residual Recommended Follow-up Mitigation/Compensation Environmental Effects and Monitoring Measures Likelihood Likelihood Significance Significance Context Context Direction Direction Magnitude Magnitude Reversibility Socio-Economic Socio-Economic Prediction Confidence Prediction Confidence Geographic Extent Extent Geographic Duration/Frequency Duration/Frequency The Project will create employment that will increase population levels and the associated demand for health services. This will help offset employment and population loss stemming from future mine closures and forestry losses associated with the MPB epidemic. Generally the effects would be positive, but negative effects may also arise for some First Nations’ workers and their families. Construction and Mitigation not required P Follow-up required to warrant - L L ST/C R D Commissioning except for First Nations’ on mitigation plans and monitor reserve. Options include N unforeseen consequences enhancing recruitment P related to health, specifically N M H Operation activities, counselling - M L MT/C R D family stress and substance N services and adaptive abuse on reserves. Residual socio-economic employment policy. P M L MT/C R D effects for all Phases KEY Direction Positive: contributes to the Geographic Extent: Reversibility: Prediction Confidence: stability or enhanced availability of health L Local: Rural areas near mine and R Reversible Based on scientific information and statistical services Williams Lake. Socio-Economic Context: analysis, professional judgment and Negative: destabilizes health Duration: D Developed: Area has a long effectiveness of mitigation services. ST Short term: within a normal capital settlement history as well as M Medium level of confidence planning period (less than 5 years) infrastructure and health/social Magnitude: MT Medium term: Greater than a normal service delivery. Likelihood: L Low: effect does not raise demand capital planning period (more than 5 years), Based on professional judgment beyond normal annual fluctuations. allowing for major service or capacity Significance: H High probability of occurrence M Moderate: effect may result in adjustments N Not Significant service adjustments, but will not require Cumulative Effects new facilities or capacity additions. Frequency: Y Potential for effect to interact with other past, C Continuous. present or foreseeable projects or activities in RSA

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4.4.4 Additional Considerations for Community and Health Services

4.4.4.1 Climate Change The effects of climate change were addressed in Section 2.1.1.1. Based on the best available scientific information, climate change in the Central Interior of British Columbia may be manifest by increase in average temperature (little change in maximum temperatures but some increase in minimum temperatures), some increase in precipitation, and changes in streamflow regime to earlier freshet and lower late summer flows. The potential climate change effects would neither amplify nor buffer the Project’s anticipated residual effects on community and health services.

4.4.4.2 Mountain Pine Beetle A treatment strategy in response to the MPB epidemic is the accelerated harvest of pine stands and a short term increase in the rate of total harvest. This is affecting the LSA and RSA presently, and will begin to taper off over the next decade or so. The contraction in economic activity would lead to out-migration of forest related workers/families in the absence of offsetting economic growth. This event alone would imply the need to scale back community and health services and some underutilized community infrastructure. The Project’s employment opportunities and related economic activity will support an increment to the community population and buffer or offset population loss that is expected in the aftermath of the MPB.

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Appendix 4-A Community and Health Services Profile

B.2 Health Planning The BC Ministry of Health works together with BC health authorities to provide quality, appropriate and timely health services to British Columbians. The ministry sets province- wide goals, standards and performance agreements for health service delivery by its six health authorities. The Interior Health Authority was established in 2001 to service the Thompson Cariboo Shuswap, the Okanagan Similkameen, and east and west Kootenay areas. The Authority is responsible for providing all publicly funded health services to the people in the Cariboo-Chilcotin. The Interior Health Authority’s (IHA) main focus is on providing quality patient care in a cost effective manner. In 2001, IHA set out to redesign health services. The hospital system was reshaped into one network of hospitals across the IHA’s jurisdiction, and seniors care was redesigned to offer more choice in care and living arrangements. IHA’s redesign plans for 2003/04 to 2005/06 focused predominantly on: • improving population health • providing a network of hospital care • ensuring choices for home and community care services • becoming the organization of choice for its employees Priorities in IHA's current management plan include improving surgical services, emergency care, human resources and patient safety (IHA May 2005). Themes and challenges identified as most likely to affect health services in the near future were shortages of health care professionals, the aging and longer-living demographic, information, diagnostic and patient care technologies, infrastructure renewal, and a shift away from traditional acute-care institutional approaches to health care to a multi- disciplinary approach with a focus on prevention and improved service delivery through advances in technology.

B.3 Health Profile IHA provides acute care facilities and an associated range of care options to meet the medical and health needs of the community. IHA attempts to deliver the appropriate care to residents as close to home as possible. A map of service facilities in the Cariboo- Chilcotin is shown in Figure 4-2. Community care facilities and services in the local study area (LSA) include Cariboo Memorial Hospital (CMH), a Level 2 Community Hospital, which provides basic emergency and inpatient services such as observation and assessment as well as certain core specialty and obstetrical services (Table 4-5). Specialty services not available at CMH are available at Tertiary Referral sites in either Kamloops or Kelowna.

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Community care facilities such as residential care beds, assisted living units and home support services are available in Williams Lake.

Figure 4-2 Cariboo-Chilcotin Local Health Area 27

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Table 4-5 Community Heath Care Facilities and Services in the Cariboo- Chilcotin Facility Description Community Hospital Level 2 1 Cariboo Memorial Hospital Tertiary Referral Hospital Royal Inland Hospital (Kamloops), Kelowna General

Hospital Community Health Centre Williams Lake (2), Alexis Creek, Anahim Lake, Tatla 5 Lake Acute Services Acute Care Beds 28 Cariboo Memorial Hospital Emergency 9 General Medicine 9 General Surgery 9 Specialized Acute Care Services 9 Pharmacy 9 Outpatient Ambulatory Care 9 Services Laboratory 9 Diagnostic Imaging 9 Ambulance Services 9 BC Ambulance Service Stations in Alexis Creek, Williams Lake Community Care Services Residential Care Beds 101 Williams Lake Seniors Village Assisted Living Units 15 Adult Day Program 9 Direct Care Services 9 Home Support Services 9 SOURCE: Interior Health August 2005

Three nursing stations operate in the Chilcotin (Alexis Creek, Anahim Lake and Tatla Lake) (Table 4–7). The nursing stations are mandated to deal primarily with the First Nations individuals but they also provide some services (e.g., immunizations, public health) to the non-First Nations population on behalf of the Province. Almost all extended and community care facilities are located in Williams Lake. There are currently waiting lists for beds in both Deni House and the Cariboo Lodge, although waiting lists can be common in other communities. First Nations’ communities have the opportunity to participate in the programming decisions at Interior Health. An Aboriginal Liaisons is available to help them gain better understanding of the health systems and improve relationships between health service providers and First Nations of the region. The nearest liaison to the Study Area is based in Williams Lake. An Aboriginal Health and Wellness Advisory Committee was also formed in 2002 to provide advice to Interior Health on the improvement of health and health services for Aboriginal people.

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Table 4-6 Heath Care Facilities by Major Community Community Facility Description Alexis Creek Alexis Creek Outpost Hospital Contact on-call nurse during off-hours and on weekends. There is a direct-dial phone (no- charge) located at the entrance to the clinic. Offers primary care treatment and emergency care Alexis Creek Health Centre Health centre Chilanko Redstone Clinic Medical centre Forks Tatla Lake Anahim Lake Nursing Station Health centre West Chilcotin Health Centre Health centre; Emergency services 24-hours a day; Primary care Tatlayoko Rehab and fitness facilities Williams Cariboo hospital residence Residence Lake Cariboo Memorial Hospital Hospital Deni House Residence Heritage House Residence Jubilee Care House Mental health Ssketmc Health Centre Health centre Three Corners Health Services Home and community care Society Williams Lake Dialysis Renal Williams Lake Health Centre Health centre Williams Lake Home and Community Home and community care Centre Williams Lake Mental Health/ Home and community care Addiction Services Williams Lake Seniors Village Residence SOURCE: Interior Health 2005

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Appendix 4-B Emergency Services

Williams Lake and the Cariboo Regional District (CRD) offer several emergency services, including 911 service, fire protection and search and rescue. They also work in cooperation with the Provincial Emergency Program (PEP). In Williams Lake, police, ambulance and fire services all participate in the 911 phone services. Toll free telephone service is also available for reporting wildfires and earthquake/flood/dangerous spills. The CRD moved ahead with the implementation of 911 emergency telephone services for residents of the Chilcotin in May 2005.

B.1 Provincial Emergency Program The PEP is a branch of the Ministry of Public Safety and Solicitor General within the Government of British Columbia. Under the British Columbia Emergency Program Act all municipalities must develop and have in place, an emergency plan. The plans form the basis for organizing local, regional and provincial resources in the event of an emergency that threatens to overwhelm a local authority's ability to respond. PEP is headquartered in Victoria and has six regions, which correspond to the boundaries of regional districts. The Cariboo is part of the northeast region, with headquarters in Prince George. The Williams Lake PEP operates in concert with the Emergency Measures Committee. The Committee is made up of representatives from the City of Williams Lake, Ministry of Health, RCMP, Ambulance Service and Hospital and other appropriate services. When an emergency occurs, the program is activated according to a pre-determined plan, and each agency responds as appropriate for the services that it provides. In 2005, the Emergency Program Act was amended by the province to include regional districts, as well as municipalities. In response, the CRD adopted its Emergency Plan in May 2006. The plan covers four sub-zones, one of which is the Chilcotin. The Emergency Operations Centre is based in Williams Lake27.

B.2 Fire Services The City of Williams Lake is currently undertaking the construction of a $6.5 million fire hall. This facility will replace the old facility downtown and will be much larger. It is designed to meet foreseeable future growth and will have eight bays. The facility will also serve as the ambulance dispatch, search and rescue centre and a fire training centre. The CRD has no fire services in Electoral Areas K and E due to the small population. It is unlikely that services would be established with the development of the mine in this area unless the population grew substantially28. The CRD does not provide services to First Nations communities’ on-reserve.

B.3 Ambulance The Williams Lake Ambulance Service is staffed with 4 full-time, 11 part-time and 5 secondary operators from neighbouring stations. Two are staffed at all times and, if one is

27 Personal communication, Rowena Bastien, Manager Protection Services, February 12, 2007 28 Personal communication, Rowena Bastien, Manager Protection Services, February 5, 2007 March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 4-23 Prosperity Gold-Copper Project

Section 4: Community and Health Services

called out, the third staff member is called in. The unit has three ambulances and a multi- casualty vehicle for responding to disasters. The service area is from Marguerite in the north, 132 Mile in the south, Riske Creek to the west and Horsefly and Likely to the east. Ambulance service is available 24-hours a day, seven days a week. The Williams Lake service provides back-up to the Alexis Creek service. Quesnel or 100 Mile House back up Williams Lake, depending on where the call originates. Williams Lake also has a multi-casualty vehicle (van) for disasters. Current call volumes are approximately 2500 annually, an increase over the 2200 calls handled in 199929. Residents of the Chilcotin are served by ambulance stations in Alexis Creek, Anahim Lake and Bella Coola. The Alexis Creek Ambulance station services the area from Riske Creek to Tatla Lake and covers the area south to Nemiah. The station has one ambulance and seven staff (four full-time and three part-time). Because of the size of the area, travel times to certain communities are very long. The station handles between 200 and 300 calls annually. As with many small communities around the province, Alexis Creek has experienced periodic interruptions in service due to a shortage of paramedics on call. This has resulted in coverage being provided by Williams Lake (CBC News August 2006). The British Columbia Ambulance Service (BCAS) Air vac Program transfers patients when it is medically desirable and economically advisable. Dedicated aircraft, commercial, charter and armed forces aircraft are used. Depending upon the patient's needs, specially trained BCAS airevac paramedics and/or other health care professionals accompany patients being transported by air.

B.4 Search and Rescue The Central Cariboo Search and Rescue (CCSAR) unit is based in Williams Lake and assists the RCMP and ambulance services with attending to motor vehicle accident victims, searching for missing persons and aircraft, responding at disaster sites, and providing back up to the agencies that provide emergency support for disaster victims. The unit serves as a resource to the PEP and, through that program, may be called upon to assist in other areas as well. Search and rescue activities can only be initiated by the RCMP or Ambulance Service. The CCSAR is funded primarily by the CRD. The CCSAR serves an area east to Wells Grey Park, west to Tweedsmuir Park, south to 132 Mile and north to Marguerite. The unit has two rescue trucks that can independently respond to emergencies. Calls from the Chilcotin are responded to by CCSAR.

B.5 Social Services Williams Lake has a full range of social services, including advocacy, counselling, alcohol and drug, support groups and day care and babysitting. Services specific to men, women, children, families and the disabled are also available. The primary provider of social services is the Ministry of Children and Family Development. Services include child protection, family development, adoption, foster care, early childhood development, child care, child and youth mental health, youth justice and services, special needs children and youth and adult community living

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services. The Williams Lake office of the Ministry serves Williams Lake, the Chilcotin and Quesnel. The Ministry of Community Services has a seniors, women’s and community services mandate that includes supporting third-party services for violence against women, revitalization of inner-city communities and coordination of community transition efforts. The Ministry does not maintain regional offices. For the public, access to services is through partnering agencies, the ministry’s website and toll free services. The Ministry of Employment and Income Assistance delivers a variety of assistance programs and services to individuals and families in need. Programs include income assistance, disability assistance, supplementary assistance and employment programming. The Williams Lake office serves the LSA and includes all standard services. Child care and family maintenance services are available through the Prince George office of the ministry. Other community based service providers such as the Mental Health Association, self- help groups and churches also provide a variety of services in the LSA. Emergency Social Services (ESS) is an important part of Williams Lake’s Emergency Response Plan and consists of registered local volunteers working together to provide for the immediate needs of people evacuated from their homes due to emergencies such as flooding, fire, chemical spills or earthquakes. These essential services include food, clothing, lodging, reunification of families, personal services and other specialized services. ESS also provides support to volunteers and personnel involved in large scale search and rescue activities. The ESS Team works closely with other partner agencies such as Canadian Red Cross, Salvation Army, SPCA and Victim Services. Social services for First Nations are jointly supported by the federal and provincial governments. Local service providers (other than facilities listed in Table 4-6) include the Nenqayni Treatment Centre Society (Williams Lake), Three Corners Health Services Society (Williams Lake), Anaham Elders Care Home Society (Williams Lake) and the Knucwentwecw Society (Williams Lake). They provide a range of services from alcohol and drug counselling to family development. Services provided by Aboriginal health care facilities and staff tend to be readily accessible by Aboriginal people and are specifically focused on Aboriginal health and cultural issues. Through the joint efforts of communities, Health Canada and the Aboriginal Health Branch of the BC Ministry of Health Services, some services are able to provide a holistic model of health and social care in a culturally appropriate way. Overall health measures of the Aboriginal population suggest that mainstream standards of health services are not always effective in treating health issues. The inclusion of traditional medicine models in the mainstream services, more culturally sensitivity among health providers and greater access to peer advocacy are all ongoing challenges. The locations of standard services are also an issue as many Aboriginal people have difficulty with transportation to and from the urban centres where these services are based.

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Appendix 4-C Health Status

C.1 Indicators of Health (General Population) Table 4-7 shows public health status and performance indicators, as well as characteristics of select health measures, for the LSA population. The data are presented by LHA, including the Cariboo-Chilcotin and 100 Mile House.

Table 4-7 Public Health Status, Performance and Characteristics in Local Health Areas Local Health Area Cariboo- 100 Mile Interior Health Chilcotin House Region Health Status Life expectancy at birth (years) 78.5 78.5 79.9 Low birth weight live birth rate (per ‘000) 65.1 71.4 50.6 Standardized mortality ratio (All Causes of Death)* 1.17 0.94 1.03 Health System Performance Acute/rehab days (per ‘000) 507 672 549 Residential care days (per ‘000) 2,175.0 2,119.7 1,880.9 Direct care visits (per ‘000) 529.5 455.0 289.0 Home support hours (per ‘000) 1,771.9 1,135.6 1,237.5 Health System Characteristics Residential care beds (per ‘000 pop 75+) 82.9 67.1 72.9 Assisted living units (per ‘000 pop 75+) 12.3 12.4 13.4 Home support clients (per ‘000 pop) 8.5 9.0 7.2 Direct care clients (per ‘000 pop) 28.6 23.5 17.1 General practitioners (per 0‘000 pop) 5.3 8.3 8.6 NOTES: Standardized Mortality Ration–ratio of deaths versus expected deaths based on provincial age-specific mortality rates. A value greater than one indicates more deaths than expected. Interior Health Region–Interior Health serves a large geographical area, covering 200,000 km2 from Williams Lake in the north, east to the Alberta border and south to the US border. Client population is over 700,000 SOURCE: Interior Health 2005

Health status indicators such as life expectancy at birth in the LSA tend to be below norms for IHA and the province. Health status indicators focus mainly on health conditions, human function, well-being and death. The Cariboo-Chilcotin has a slightly lower life expectancy but substantially higher low birth weight levels and standardized mortality ratios, when compared to the entire IHA region. Indicators under the Health System Performance category measure various aspects of the quality of health care. These measures relate mainly to continuing care services. Residents in the Cariboo-Chilcotin utilized resources at a higher rate than residents served by the IHA, notably in terms of direct care and home support hours. The Health System Characteristic indicators are measures that provide useful contextual information such as access to services and services received, but they are not direct measures of health status or quality of care. Cariboo-Chilcotin residents have reasonably March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 4-27 Prosperity Gold-Copper Project

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good access to residential care beds and assisted living units, but access to doctors is considerably lower than IHA (1900 people per general practitioner, vs. 1160).

C.2 Indicators of Health (First Nations) The Interior Health Authority has stated that Aboriginal people in the Interior do not enjoy the same level of health as the surrounding, non-Aboriginal population (Interior Health Authority, ND). On a national scale, health measures for Registered Indians improved between 1981 and 2001, and the disparity between Registered Indians and other Canadians in HDI scores seems to have decreased. However, Registered Indians continued to have shorter life expectancy, and gaps continued to be seen between males and females as well as between on and off reserve populations (Cooke et al October 2004). Use of the health system, as measured through MSP usage and hospitalization rates, was higher than for the surrounding population. However, the use of residential and home care was significantly lower.

Table 4-8 Public Health Status, Performance and Characteristics for Aboriginal People in the RSA, 2001 Health Indicator Aboriginal Other Population Rank Among 20 Population in the in Cariboo BC Aboriginal Cariboo Region Region Health Regions Health Status Life expectancy at birth (years) 71.4 79.9 12 Infant mortality rate 8.7% 4.7% 9 Mortality rates (per ‘0000) 88.2 68.9 5 PYLL rate (per ‘000) 143.2 61.0 12 Healthy Growth & Development Teen pregnancy (per ‘000) 122.9 39.5 7 Pre-term births 7.4% 5.9% 7 Low birth weight 5.6% 5.3% 10 Post-neonatal mortality 5.4 1.9 9 Health Services MSP utilization rates (per ‘000) 809 798 15 Hospitalization rates (cases per ‘000) 289 217 14 Home support utilization (hours per 143 2,674 16 ‘000) Disease and Injury Prevention Smoking-attributable deaths (per ‘0000) 10.5 15.7 1 Alcohol-attributable deaths (per ‘000) 21.9 4.2 10 HIV/AIDS deaths (per ‘0000) 0.2 0.1 4 Drug-induced deaths (per ‘0000) 1.2 0.7 3 SOURCE: BC Ministry of Health Planning, 2001.

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C.3 Socio-Community Conditions Socio-economic indices summarize social and economic conditions over a wide variety of indicators into a single composite index for each region within the province. When viewed together, these indices provide a summary measure of the relative successes and challenges across all regions of the province. The indices are intended only to flag regions that may be experiencing higher levels of socio-economic stress relative to neighbouring areas, but by themselves do not show why a particular community or region is doing poorly or well. As seen in Table 4-9, the health and other socio-community indicators in the Cariboo- Chilcotin rank poorly against the other 78 local health areas of the province. While all six indices fall well below the median, education concerns and children at risk are areas of notable concern. Economic hardship is a function of high levels of income assistance and low income levels in the region. The crime index rank is attributable to high levels of serious crime, particularly among juveniles. Crime rates are increasing in the region at a time when provincial rates are declining. Education concerns result from high dropout rates, and low provincial test scores. The region’s children and youth at risk scores also rank low as a result of a combination of the above factors, high levels of income assistance, poor educational attainment, above-average crime rates and unemployment.

Table 4-9 Socio-Economic Indices, Cariboo-Chilcotin Local Health Area, 2005 Socio-Economic Indicator Local Health Rank Among All Area Score Health Regions Overall socio-economic index 0.38 14 of 77 Economic hardship 0.22 26 of 77 Crime 0.39 24 of 78 Health problems 0.27 23 of 78 Education concerns 0.62 10 of 78 Children at risk 0.73 8 of 77 Youth at risk 0.37 18 of 77 NOTES: The worst-off region will have the largest positive value, the best-off-region will have the largest negative value and the median will equal zero. The lower the rank, the worse the relative performance. Indicators for the indices and methodologies can be found on the BC Stats web site. Available at: http://www.bcstats.gov.bc.ca/data/sep/method.pdf SOURCE: BC Stats 2006

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Section 5: Effects on Other Resource Uses

5 Effects on Other Resource Uses

The Project will occupy land, or affect resources, that do, or potentially could, support other activities and uses important to the community. On the Crown land base, these resource uses include: • land use objectives • forestry • agriculture and ranching • mining • fishing • hunting • public recreation • tourism • trapping These potential effects are examined in this chapter. The effects of resource use on private land will be confined to the transmission line route. The location of the TL centreline while not yet finalized is being selected so as to avoid the need to cross private land wherever possible. It is expected that once finalized, the centreline will cross a very limited number of private land parcels. Any issues this might raise will be the subject of direct discussions between the landowner and Taseko.

5.1 Scope of Assessment for Resource Uses The requirement to assess the effect of the Project on other resource uses is specified in the Project Report Specifications (PRS) and the Environmental Impact Statement (EIS) Guidelines, specifically Section 7.6 and 7.4 respectively. The particular resource uses identified are land tenure, land use, forestry, agriculture and ranching, mining, fishing, hunting, public recreation, tourism and trapping. The PRS and EIS also indicated that the extent of the review and analysis should generally reflect the relative significance of the effects involved (if any). For example, if the Project will or could have significant positive or negative effects on forestry activity in the region or the local mine area, then a clear presentation of those effects is desirable.

5.1.1 Regulatory Setting The management, use and protection of resources considered in this section are subject to numerous legislative, statutory and policy instruments, primarily at the provincial level in relation to Crown land and resources. Major pieces of legislation are as follows: • General–Land Act • Forestry, Range, Public Recreation–Forest Act, Forest and Range Practices Act, Range Act

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• Mining–Mineral Tenures Act, Mines Act • Agriculture–Agriculture Land Reserve Act • Tourism–Tourism Act • Trapping and Guide Outfitting–Wildlife Act There are dozens of other provincial acts that legislate different aspects of resource- related industrial activity, but the above are primarily responsible for allowing, through licensing (tenure) arrangements with private-sector companies, the development of Crown resources. While the acts discuss rights and entitlements, most do not spell out compensation and other remedies available to licensees for changes in conditions to tenures and to issues concerning multiple use conflicts. Generally speaking, for new project developments that might result in effects to one or more existing licensees, those remedies are negotiated and agreed upon by the licensees themselves in cooperation with the appropriate government ministries, often at the regional or local level. The Cariboo Chilcotin Land Use Plan (CCLUP) and associated Chilcotin and Williams Lake Special Resource Management Plans (SRMPs) are higher level plans that broadly define land use zones, establish objectives that guide management of natural resources, and outline strategies for achieving those objectives. The implications of the CCLUP and SRMPs are discussed in greater detail in the Land Use section of this chapter.

5.1.2 Key Issues for Resource Uses Resource uses may involve formal permission to use or harvest a resource (e.g., timber harvesting), or general permission (e.g., public hunting), and the character of the resource may have qualitative and quantitative characteristics. This locus of characteristics, or “resource value”, may be changed by the Project, diminishing or enhancing particular aspects of the resource use. The Project is expected to interact with the several resource values during construction, operations and closure/post-closure. These interactions will vary among the resource uses in terms of magnitude and direction (beneficial or adverse). Most of the issues related to resource uses will occur at, and adjacent to, the mine site. Access to the mine site will be restricted and the natural resources on the land will be affected. As a result, effects of the mine site on resource uses will be considered in detail in this assessment. In contrast, the transmission line will have limited effect on resource uses during clearing of the right-of-way (ROW) or operation. Access to and use of tenures will continue unimpeded in the corridor. With the exception of agriculture/range and forestry, resource values and use levels are generally low in the area. As a result, effects of the transmission lines on resource uses, other than forestry and range, are not considered in detail in the effects assessment. With the exception of the immediate access to the mine site, the remaining road alignment already exists and will not affect resource use. However, increased vehicle traffic could negatively affect domestic livestock and wildlife populations and associated resource uses. Operations of the load-out facility are not expected to affect resource uses. The mountain pine beetle infestation of pine forests has reached epidemic proportions in many parts of interior British Columbia, including the pine forestland to be occupied by

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the Project. If the infestation progresses, it has the potential to kill 80% of the interior’s pine forests within the next 20 years (MOFR 2006). This has implications for most of the resource uses, as it will likely affect resource abundance, as well as the quality of experience. As a result, effects on resource use will be addressed within the context of the predicted mountain pine beetle infestation as a base case condition. Existing and possible future mine development projects in the region and the potential for interaction with the Project are considered under the cumulative effects assessment. Projects that are now operating (e.g., other mines) can be addressed in cumulative effects, but determining the effects of exploration projects and their potential as future operating mines is more challenging. Exploration activities themselves will not exhibit many cumulative effects while the likelihood that an operating mine will proceed is highly uncertain. Even then, the timing, scale and other feasibility parameters needed to weigh cumulative effects are open to a great deal of speculation. We have company and project information for those projects in the inclusion list and made assumptions about their potential for cumulative effects under the respective Key Indicators (KIs). Accidents and malfunctions are not likely to create incremental effects on other resource uses. Resource uses like forestry, range and tourism are licensed to access large land areas over extended periods. In public recreation, including hunting and fishing, there are available substitute locations and experiences. There is, therefore, ample opportunity to spatially and temporally manage for unforeseen events, natural and otherwise, that continuously occur on the land and resource base. Accidents and malfunctions tend to be site specific, temporary in nature and would not be expected to create measurable effects in light of the mitigation measures that would be in place to deal with them. The Project activities that are expected to change resource values are summarized in (Table 5-2).

Table 5-1 Interaction of the Project with Resource Uses Project Activities/Physical Works Project Description Reference for Activity VEC Construction and Commissioning Fisheries compensation works construction Project Description and Scope, Vol. 3, Sec. 8 0 Water diversion Project Description and Scope, Vol. 3, Sec. 6 0 Construction sediment control Project Description and Scope, Vol. 3, Sec. 6 0 Access road construction and upgrades Project Description and Scope, Vol. 3, Sec. 6 1 Camp construction Project Description and Scope, Vol. 3, Sec. 6 1 Site clearing (clearing and grubbing) Project Description and Scope, Vol. 3, Sec. 6 2 Soils handling and stockpiling Project Description and Scope, Vol. 3, Sec. 6 0 Construction: plant site and other facilities Project Description and Scope, Vol. 3, Sec. 6 2 Lake dewatering Project Description and Scope, Vol. 3, Sec. 6 2 Starter dam construction Project Description and Scope, Vol. 3, Sec. 6 2 Sourcing water supplies (potable, Project Description and Scope, Vol. 3, Sec. 6 0 process/TSF) Site waste management Project Description and Scope, Vol. 3, Sec. 6 0 Clearing of transmission line ROW Project Description and Scope, Vol. 3, Sec. 6 1 Construction/Installation of transmission line Project Description and Scope, Vol. 3, Sec. 6 2 Vehicular traffic Project Description and Scope, Vol. 3, Sec. 6 2 Concentrate load-out facility near Macalister Project Description and Scope, Vol. 3, Sec. 6 0 (upgrades to site)

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Table 5-1 Interaction of the Project with Resource Uses (cont’d) Project Activities/Physical Works Project Description Reference for Activity VEC Operations Pre-production and production Project Description and Scope, Vol. 3, Sec. 6 2 Crushing and conveyance Project Description and Scope, Vol. 3, Sec. 6 2 Ore processing and dewatering Project Description and Scope, Vol. 3, Sec. 6 2 Tailing storage Project Description and Scope, Vol. 3, Sec. 6 1 Waste rock stockpiles Project Description and Scope, Vol. 3, Sec. 6 0 Potable and non-potable water use Project Description and Scope, Vol. 3, Sec. 6 0 Site drainage and seepage management Project Description and Scope, Vol. 3, Sec. 6 0 Wastewater treatment and discharge Project Description and Scope, Vol. 3, Sec. 6 0 (sewage, site water) Water release contingencies for extended Project Description and Scope, Vol. 3, Sec. 6 1 shutdowns (treatment) Solid waste management Project Description and Scope, Vol. 3, Sec. 6 0 Maintenance and repairs Project Description and Scope, Vol. 3, Sec. 6 0 Concentrate transport and handling Project Description and Scope, Vol. 3, Sec. 6 0 Vehicle traffic Project Description and Scope, Vol. 3, Sec. 6 0 Transmission line (includes maintenance) Project Description and Scope, Vol. 3, Sec. 6 1 Pit dewatering Project Description and Scope, Vol. 3, Sec. 6 0 Low-grade stockpile processing Project Description and Scope, Vol. 3, Sec. 6 0 Concentrate load-out facility near Macalister Project Description and Scope, Vol. 3, Sec. 6 0 Closure Reclamation of low grade stockpiled Project Description and Scope, Vol. 3, Sec. 6 0 material Reclamation of waste rock stockpiles Project Description and Scope, Vol. 3, Sec. 6 0 Tailing impoundment reclamation Project Description and Scope, Vol. 3, Sec. 6 1 Pit Lake, Prosperity Lake and TSF Lake Project Description and Scope, Vol. 3, Sec. 6 0 filling Plant and associated facility removal Project Description and Scope, Vol. 3, Sec. 6 1 Road decommissioning Project Description and Scope, Vol. 3, Sec. 6 1 Transmission line decommissioning Project Description and Scope, Vol. 3, Sec. 6 1 Post-closure Discharge of tailing storage facility water Project Description and Scope, Vol. 3, Sec. 6 0 Discharge of Pit Lake water Project Description and Scope, Vol. 3, Sec. 6 0 Seepage management and discharge Project Description and Scope, Vol. 3, Sec. 6 0 Ongoing monitoring of reclamation Project Description and Scope, Vol. 3, Sec. 6 0 Interaction of Other Projects and Activities Project Planning and Alternatives Assessment, Logging 1 Vol. 2, Sec. 7 Project Planning and Alternatives Assessment, Ranching 0 Vol. 2, Sec. 7 Project Planning and Alternatives Assessment, Irrigation 0 Vol. 2, Sec. 7 Project Planning and Alternatives Assessment, Tourism and recreation use 0 Vol. 2, Sec. 7 Project Planning and Alternatives Assessment, Trapping 0 Vol. 2, Sec. 7 Project Planning and Alternatives Assessment, Transmission Corridor Considerations 1 Vol. 2, Sec. 7

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Table 5-1 Interaction of the Project with Resource Uses (cont’d) Project Activities/Physical Works Project Description Reference for Activity VEC Project Planning and Alternatives Mining and gravel extraction 2 Assessment, Vol. 2, Sec. 7.\ Traditional Use First Nations, Vol. 8, Sec. 2 2 Project Planning and Alternatives Community Infrastructure/Development 0 Assessment, Vol. 2, Sec. 7.\ Accidents, Malfunctions and Unplanned Events Additional Requirements Pursuant to CEAA, Fuel /chemical spill–land 1 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Fuel /chemical spill–water 1 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Pipeline Failure 0 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Concentrate spill–land 1 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Concentrate spill–water 1 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Road culvert failure 1 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Excessive water in TSF 0 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Loss of power to TSF seepage recovery 0 Vol. 9, Sec. 2 NOTES: 0 = No interaction 1 = Interaction occurs; however, based on past experience and professional judgment the interaction would not result in a significant environmental effect, even without mitigation; or interaction would not be significant due to application of codified environmental protection practices that are known to effectively mitigate the predicted environmental effects. Details on justification for this rating are provided in the issues scoping section 2 = Interaction may result in a significant environmental effect; potential effects are considered further in the EA

Access may be exclusive or not. Exclusive access is typically conveyed by a tenure of some nature. As most tenures are limited to certain uses, such as harvesting trees or trapping, a number of tenures may overlay one another on the same land base. There is also non-exclusive access, such as practised by public recreation and fishing in public water bodies. In general, the Project’s exclusive occupation of the identified land base precludes the beneficial use of non-compatible tenures. Where the overlap is substantial relative to the total tenure holdings, the beneficial use of the tenure may be reduced. This effect will be most pronounced and detrimental when the Project initiates development, through to operations and closure. During post-closure, some of the land would again be available for such alternative uses. Persons may have certain non-exclusive access rights, such as various forms of recreation, which do not involve a land tenure. The Project is expected to detrimentally affect some of these uses as a result of access restrictions (e.g., no hunting around the mine site). Use of a resource may also be affected as a result of changes in the quantity and distribution, the quality of a resource or the quality of the experience. The resource may March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 5-5 Prosperity Gold-Copper Project

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be relatively fixed (e.g., a tree) or mobile (a moose), and the use may be consumptive (i.e., harvest) or non-consumptive (wildlife viewing). The Project implications to resource uses will depend on the nature of the resource, the manner it is used, and how these elements may be affected by Project components.

Table 5-2 Potential Project Effects on Resource Uses Change in Project Activities and Physical Works Resource Values Construction Site clearing (clearing and grubbing) 9 Construction: plant site and other facilities 9 Lake dewatering 9 Starter dam construction 9 Construction/Installation of transmission line 9 Vehicular traffic 9 Operation Pre-production and production 9 Crushing and conveyance 9 Ore processing and dewatering 9 Interaction of Other Projects and Activities on Resource Uses Mining 9

5.1.3 Selection of Key Indicators and Measurable Parameters The PRS identified a number of specific resource uses to be addressed (Section 7). These resource uses were selected because they are important activities locally or regionally, and could potentially be affected by the Project. As a result, they were adopted as KIs for this assessment. To streamline the assessment, some of the resource uses were grouped. The KIs for the assessment of resource uses were: • land use objectives • forestry • agriculture and ranching • mining • fishing • hunting • public recreation • tourism • trapping For the purpose of this assessment, the term “Project Footprint” refers to the land occupied by the mine site, transmission line, the access road and the highway shipment route along highways 20 and 97 to the load-out facility at Macalister.

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Table 5-3 Key Indicators for Resource Uses and Measurable Parameters KI Rationale for Selection Measurable Baseline Data Parameters Land Use • Land use objectives • Land use zones • Chilcotin and William Objectives reflects communities mapped over Project Lake SRMPs values on the land footprint • GIS analysis base • Tenure overlap with • List of tenure holders • Tenures indicate Project footprint by tenure (forest, interests and activities • On Crown land, range, mineral, on the land base restrictions in land trapping, Land Act, consistent with uses pursuant to a Water Act) Objectives higher level land use • Locally important plan Forestry • Large proportion of • Timber harvesting • Hectares of productive Project Footprint is land base forest land presently productive • Site productivity • Current forest cover forest land • Employment • Forest development • Valid forest tenures • Government plans • Locally important revenue • Stands affected by • Contribution to AAC mountain pine beetle • Primary mills in region • Harvest trends • Non-timber forest products Agriculture/ • Existing land use and • Number of • Agricultural capability Ranching lifestyle choice in local operations and suitability of land study area • Tenure overlap in Project footprint • Related land tenure • AUMs • Farm receipts and • Locally important • Income production (2001) for • Employment local area • AUMs (2003) Mining • Active mineral • Transmission r/w • GIS analysis exploration area overlap with 3rd party mineral claims Fishing • Fish Lake supports • Angling guide • Number of non-guided public and guided territories anglers (2000) fishing effort • Estimated user days • Aerial boat counts • Fishing is an important of guided and non- (2006) recreation activity guided anglers • Fishing lodge activity • Locally important • Total fishing effort in region • Catch success • Economic effects of • Total number of fish guided fishing in caught region • Expenditures • Economic value Hunting • Resident hunting • Hunter harvest and • Resident and non- activity in the Project activity data resident hunting effort, footprint • Guiding territories MU 4, 1996 and 2005 • Project footprint affected • Economic effects and overlaps eight guide • Expenditures value of resident and outfitting territories guided hunting (2005) • Locally important • Recent trends in hunting effort

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Table 5-3 Key Indicators for Resource Uses and Measurable Parameters (cont’d) KI Rationale for Selection Measurable Baseline Data Parameters Public Recreation • public recreation • Key activities (e.g., • GIS data of recreation identified use in the kayaking, canoeing) features and potential Project area • Recreation features (ROS) • Locally important and opportunities • Activity and use levels • User days • Economic effects of • Expenditures public recreation • Economic value Tourism • Visitors to the LSA not • Define “products” • Room revenue included in other • Visitation rates • Number of rooms categories • Expenditure • Visitor markets • Locally important • Economic effects • Visitor trends and • Overlap with expenditure at regional commercial rec. level tenures Trapping • Locally important • Tenure overlap • Trapping reports for economic and lifestyle • Harvest management units in activity • Revenue Project footprint • Employment • Average gross • Lifestyle contribution revenue (2003) • Average royalty payment (2003)

Where the Project effect is related to a change in resource abundance or availability, the change in the KIs identified above will be characterized in terms of the nature and magnitude of the socio-economic effect. Effects on the resource of concern (e.g., wildlife, vegetation) are addressed in other sections of the EA and are referenced where appropriate.

5.1.4 Temporal Boundaries for Resource Uses Project effects on resource uses will occur immediately following the commencement of Project construction and the restriction of public access to the mine site. It is expected that existing, non-compatible tenures will be modified to align with the Project boundaries, and that these changes will persist for the life of the Project or longer. The effect on the availability and quality of a specific resource will also commence during construction and, for some KIs, may increase during operations. Post-closure, effects on land access and resource availability and quality are expected to diminish.

5.1.5 Spatial Boundaries for Resource Uses The LSA is the area within which Project effects can be predicted with a reasonable degree of accuracy and confidence, and where effects are likely to be most concentrated. Since resource uses are often closely connected to the land base, its resources or its attributes, the effects are closely associated with the Project footprint, and the buffer area defined for the Project.

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The RSA is a broader area within which, depending on conditions (e.g., seasonal conditions, habitat use, more intermittent and dispersed project activities), Project effects may be more wide reaching. Effects may occur because of the displacement of activities to other locals (e.g., hunters shift to another area) or because of some interdependency to the management of the regional land base or resource. The LSA and RSA for the assessment will vary among KIs (Table 5-4).

Table 5-4 Summary of Spatial Boundary Definitions KI LSA RSA Land Use Objectives Project footprint: mine site, access road, Williams Lake Timber Supply transmission corridor, and buffers Area Forestry Project footprint: mine site, access road, Williams Lake Timber Supply transmission corridor, and buffers Area Agriculture/Ranching Project footprint: mine site, access road, CRD electoral areas K & E transmission corridor, and buffers Fishing1 Project footprint: mine site, access road, Cariboo-Chilcotin2 transmission corridor, and buffers Hunting and Trapping1 MOE MU 5-4 MOE MUs 5-2, 5-3, 5-4, 5-5, 5-12, 5-13, 5-14 Public Recreation Project footprint: mine site, access road, Cariboo-Chilcotin transmission corridor, and buffers Tourism Project footprint: mine site, access road, Cariboo-Chilcotin transmission corridor, and buffers NOTES: 1 The study areas for the above fishing, hunting and trapping resource KIs, are not co-terminus with the study areas for Fish and Fish Habitat (Volume 5.3) or Wildlife (Volume 5.6) 2 Boundaries are equivalent to the Cariboo Regional District. This term, rather than the CRD, is frequently used in the research

5.1.6 Environmental Effects Rating Criteria for Assessing Effects Significance Project effects on resource uses were characterized using seven criteria: direction, magnitude, geographic extent, frequency, duration, reversibility and socio-economic context. Where possible, quantitative measures were used to characterize each effect on resource use. For example, for forestry, magnitude can be quantified in terms of the loss of timber harvesting land base. For hunting, it may be the number of guide outfitters or hunters affected. Where quantitative measures could not be used, qualitative categories were used as noted in the paragraphs that follow.

5.1.6.1 Direction • Negative—the effect results in a net economic loss or commercial viability to the licensee or user. • Positive—the effects results in a net economic gain or enhanced viability to the licensee or user. • Neutral—the overall effect is neutral (i.e., does not differ from base case conditions) although this may involve separate offsetting positive and neutral effects.

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Figure 5-1 Regional and Local Study Areas

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5.1.6.2 Magnitude • Low—the effect is such that it will not disrupt commercial activities of licensees or other use levels such as public recreation, fishing or hunting. • Medium—the effect will disrupt commercial activities or use levels, but effects can be managed without substantial financial loss. • High—the effect results in a disruption or loss of access to the resource such that the financial viability of the activity or organization is at stake.

5.1.6.3 Geographic Extent • Site—the effect is limited to Project components. • Local—the effect is limited to rural areas surrounding the Project components. • Regional—the effect extends to the Central-Cariboo Chilcotin region.

5.1.6.4 Duration • Short-term—the effect is confined to one operating year (season) or less. • Medium-term—the effect extends into a typical resource planning cycle (one to five years for most licensees and organizations like recreation clubs that are placing infrastructure on Crown land). • Long-term—the effect extends to multiple planning periods (5 to 20 years).

5.1.6.5 Frequency • Once—occurs once. • Sporadic—occurs sporadically often at unpredictable times. • Regular—occurs on a regular basis, at regular intervals and with predictability. • Continuous.

5.1.6.6 Reversibility • Reversible—effect is easily reversible. • Irreversible—permanent beyond the post-closure phase.

5.1.6.7 Socio-economic Context • Developed—the land and resource base has experienced decades of development for multiple uses.

5.1.7 Influence of Consultation on the Assessment The original PRS (1998) and the subsequent EIS Guidelines were, developed collaboratively by regulators and the Proponent and they identified the disciplines to be considered, the key elements and values to be addressed and the overall scope of the environmental and socio-economic effects to be assessed. Subsequent consultations with March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 5-11 Prosperity Gold-Copper Project

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regulators and stakeholders have further refined the scope of the assessment of the effects on other resources users.

5.1.7.1 Working Groups During the initial phase of the Project, several technical working groups were struck to facilitate communication between regulators, the Proponent and their consulting team. An economic sub-group was established and tasked with overseeing a multiple accounts assessment of economically feasible mine options. The Project was deferred before the group became involved in the broader socio-economic effects assessment. In April, 2007, a technical working group meeting was held in Williams Lake to reconstitute the working groups. While a socio-economic working group of five government representatives was proposed, it was never formally established and has not convened to date.

5.1.7.2 Previous Baseline In addition to the factual data collected, the partially-completed socio-economic baseline work undertaken prior to 1999 provided some context for resource-related issues and concerns as expressed by the stakeholders contacted.

5.1.7.3 Recent Consultations A number of meetings and discussions with regulators and local stakeholders were conducted in 2007 to scope the assessment, fill in data gaps, identify effects and discuss potential and significant effects. A detailed discussion of these discussions and contacts is provided in Volume 2, Section 5. This consultation was supplemented by a review of minutes of meetings held between Taseko and community groups over the two and a half years. Twenty-two meetings with municipalities and First Nations communities were and reported on. These minutes were useful for identifying critical issues and concerns.

5.2 Baseline Conditions for Resource Uses Resource uses includes a diversity of activities, which makes generalization difficult. Only a brief regional overview is presented here; detailed baseline descriptions are provided later for each resource use.

5.2.1 Summary of Previous Work and Gap Analysis Before the Project was put in abeyance in 1999, the SEIA had commenced. While earlier work generally identified the required Project tasks, limited progress was made with respect to data gathering and analysis. Specific baseline gaps that were addressed for assessment of effects on Resource VSCs were: • Land Use: update tenure holdings and develop a spatial tool for overlaying Project elements and land management objectives as stated in regional planning documents. • Forestry: update the forest inventory to current conditions, including the most recent AAC determination and response to the mountain pine beetle epidemic.

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• Agriculture and Ranching: update information on agriculture/ranching leases and production. • Public Recreation: assemble all baseline information (no information was assembled in the earlier report). • Commercial Recreation and Tourism: assemble all baseline information (no information was assembled in the earlier report). • Trapping: update information on trapping tenures and production statistics.

5.2.2 Approach and Methods for 2006 Assessment Baseline data on resource uses was obtained to establish prevailing conditions and provides benchmarks for identifying incremental effects associated with the Project. Baseline conditions for resource uses were not limited to current conditions, but also considered how these uses might change in the future in the absence of the Project. As economic activity in the study area is expected to be temporally heightened due to the salvage harvesting of wood attacked by the mountain pine beetle, the formulation of a broadly accepted forecast of future conditions when this activity subsides (post 2013) was challenging. Recent work by the Ministry of Forests and Range, and Cariboo-Chilcotin Beetle Action Coalition (CCBAC), which considers the implications of responding to the mountain pine beetle outbreak and its aftermath, were used to characterize the path of the region’s future economic conditions. The application of GIS referenced databases to the Project footprint provided an initial indication of the overlaps with geo-referenced indicators and Crown tenure holdings. Data on various resource uses was obtained from a number of government land use data layers (e.g., land tenure, land capabilities, harvesting volumes,) interviews with government officials, downloads from government and public agency websites and a review of literature (e.g., studies, reports and research). Details on specific data sources are provided in Appendix 5-A. The comparison between the overlap area and the broader study area provided an initial estimate of the overall spatial effects, but not necessarily a barometer of value effects. Interviews were conducted with tenure holders, resource managers and other stakeholders who used the areas within the Project components to determine the nature and scope of the effects. Changes in resource use and values may also occur due to the physical change in the resource that gives rise to socio-economic implications. Several of the biophysical effects assessment for relevant valued environmental components (VEC) provided an initial indication of potential, which was followed up by selected interviewing users of these resources to get their opinion on the nature and scope of the effects from a human perspective. Where appropriate, this included effects on the quality of the experience.

5.2.3 Baseline Conditions for Resource Uses Resource uses include a large number of diverse activities. Several are primary industries, which involve the harvest or extraction of a raw material such as timber, livestock, trapping and minerals. Materials from these activities are typically sold or transferred for further processing. Other outputs are enjoyed or consumed by the final user, such as public recreation, tourism, hunting and fishing.

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All of the resource uses are sensitive to changes in supply and demand conditions for their respective product. For example, in recent years, conditions have been broadly favourable for forest products and less favourable for trapping. Given the dynamic nature of most resource uses, the “baseline” for each is described in terms of recent and expected average conditions. Descriptions of baseline conditions for each resource use are provided below in the baseline sections for each of the KIs. Further information on each resource use is also provided in Appendix 5-B (Land Use), Appendix 5-C (Forestry), Appendix 5-D (Agriculture/Ranching), Appendix 5-E (Fishing), Appendix 5- F (Hunting), Appendix 5-G (Public Recreation), Appendix 5-H (Tourism) and Appendix 5-I (Trapping).

5.3 Project Effects Assessment Resource use includes a diversity of activities which may be changed by the Project either positively or negatively. The change may be a direct interface between a Project element and a social or economic value or agent. A guide outfitter whose tenured territory includes the mine site is an example. In addition, a physical effect may have biophysical consequences that are of social or economic consequence. An example is the Project’s effect on wildlife which may have implications to hunting. Such changes are also included in this effects assessment. The change in resource value is addressed for the following resource uses. As appropriate for each resource use, the resource value is described, and the change that may be attributed to the Project identified. In a number of instances, this may include both an effect on tenure conditions as well as effects arising from biophysical changes. • land use objectives • forestry • agriculture and ranching • fishing • hunting • public recreation • tourism • trapping Mining is assessed only for the first effect and not the second under the assumption that mineral resources are not affected by the Project outside of the mine site itself. Therefore, mining effects are addressed in the Land Use and Tenure section.

5.3.1 Land Use Objectives

5.3.1.1 Scope of Assessment for Land Use and Tenure The provincial government has articulated regional land management objectives that pertain to Crown land in the Project footprint reflective of certain socio-economic and environmental objectives. The implications of the Project in the context of these stated planning objectives is addressed in this section. The Project’s effects on existing tenure

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holders are addressed in the context of the specific resource use. For instance, the effect on forest licence holders is addressed as a forestry resource use. Land use objectives and strategies contained in the Cariboo-Chilcotin Land Use Plan (CCLUP) and the several sustainable resource management plans are reflective of social values and socially desirable outcomes. Mineral exploration and mine development are clearly articulated in the plans as a socially valuable use of the Project area. However, its development may defer or preclude the attainment of other socially desirable outcomes. This is the matter addressed here. The Tsilhqot’in National Government (TNG) has identified its intention to complete a Land and Resource Stewardship plan in conjunction with the development of a biomass energy project, and to mitigate the impacts of the mountain pine beetle epidemic affecting the area (Tsilhqot’in National Government 2007). However, the planning process is at an early stage and no further studies or reports have been filed with the BC Environmental Assessment Office. The measurable parameter used to assess the Project’s effects on land use and tenure is the aerial extent of the overlap of the Project footprint with these respective values.

5.3.1.2 Effects Assessment Methodology The areal extent of the probable overlap of the Project with specific land tenures and mapped indicators was determined using an overlay analysis. For the purpose of this analysis, the Project “footprint” is the land base that may be occupied by the various Project facilities (e.g., mine site), as well as adjacent land on which the Project may exert an influence on resource uses (i.e., a buffer). In some instances, Project features may coincide on the land base, such as the transmission line ROW and the mine site buffer. In those cases the overlap is assigned to the Project element that may exert the greater effect. In this example, the common area would be assigned to the transmission line ROW because it involves land clearing and construction. The ordering of Project elements in Table 5-5 indicates the priority in attributing overlapped lands, and also shown in Figure 5-2. The Project’s occupation of the mine site, transmission line ROW and the access road would displace non-compatible uses. The direct influence beyond its footprint depends on the nature of the use. For instance, range use may be largely unaffected within a short distance from the footprint, while some types of recreation experiences may be affected within the buffer zone.

Table 5-5 Definition of Project Footprint Project Component and Description Size (ha) Hierarchy Mine site Area disturbed by mining operations 4,419 Transmission line ROW 80 m corridor centred on transmission line 990 Access road buffer 200 m buffer along 87 km of existing roads from Hwy 1,742 20 and new access road (2.8 km to the mine site) Mine site buffer Area bounding mine site, to TEM mapping boundary 13,602 Transmission line buffer 500 m corridor centered on transmission ROW 5,070 Total area 25,823 SOURCE: Jacques Whitford AXYS Ltd. Appendix 5-A

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Figure 5-2 Hierarchy of GIS Analysis Units for Socio-Economic Analysis

5.3.1.3 Baseline Conditions for Land Use and Tenure Land status and resource tenures within the Project footprint are summarized in Table 5-6. Most of the Project footprint is Crown land. The estimate of private land is coarse and is intended as a guideline only. A complete title search is required for more detailed information. The formal tenures are sorted by the Act under which they were issued. A buffer alongside the Project footprint was defined to capture tenure and non-tenured uses and values that may exist. Whether the use or value is affected depends on whether the conditions necessary to support it are influenced by the Project. This is addressed for each of the resources.

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Table 5-6 Private Land and Crown Tenures in the Project Footprint Unit Mine Mine Access Transmission Transmission Total Area Site Site Road Line Buffer Line ROW or Count Buffer Buffer Affected Total footprint ha 4,419 13,602 1,742 5,070 990 25,823 Crown ha 4,419 13,602 1,672 4,883 953 25,529 Private ha 0 0 70 187 37 294 Tenures issued over Crown land or resources Forest Act Licence to cut ha 551 323 0 0 0 874 Wood lot licences ha 0 0 0 102 20 122 Community forest ha 0 0 0 247 47 294 Agricultural Land Reserve Act ha 0 0 173 1,497 277 1,948 Range Act Number of range grazing licences (E01) count 2 8 9 12 12 22 Number of range grazing permits (E02) count 0 0 7 0 0 7 Number of range non-replaceable grazing permits (E03) count 0 0 3 0 0 3 Number of range hay cutting licences (H01) count 0 0 0 0 0 0 Mineral Tenure Act Mineral claims and titles–minerals count 93 82 11 2 7 146 Mineral claims and titles–placer count 0 0 0 0 0 0 Land Act Number of Land Act tenure applications count 0 0 4 4 4 * Number of Land Act tenures count 4 5 5 6 6 13 Wildlife Act Guide outfitter licences count 3 4 3 5 5 7 Guide outfitter licences ha 4,419 13,602 1,613 3,949 778 24,361 Trapper licences count 2 4 3 6 6 9 Trapper licences ha 4,419 13,602 1,742 5,070 990 25,823 Water Act count 0 0 10 0 0 10 NOTE: * a tenure may occupy more than one Project component, hence the sum of the column would involve double counting SOURCE: AXYS Environmental Consulting Ltd. GIS Analysis

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There are no water licences on the land base directly occupied by the Project. There are 10 recorded licences in the access road buffer. These are for storage, irrigation, or domestic purposes mainly. While segments of the existing road will be up-graded this is not expected to affect the water licence holders’ ability to use the water as permitted under the licence. The mineral tenures located in the mine site are 100% owned by Taseko. These claims are a necessary part at this stage of Project development. The transmission line ROW overlies seven mineral tenures held by third parties. Taseko has established a mineral reserve on the ROW, 1.5 km either side of the current centerline. This reserve does not establish tenure but merely ensures that any parties staking mineral claims are aware of the future potential use of this corridor and have no recourse for compensation. With respect to land use, the Project effect is also addressed in the context of the Crown’s land and resource objectives as expressed in the CCLUP area. The plan was announced by government on October 24, 1994. The CCLUP provides the framework for managing Crown land and resources in a manner that “addresses long-term concerns around sustaining the region’s economy: access to timber for the local forest industry, certainty for the mining, ranching and tourism industries, and job security. It sustains the region’s environment by permanently protecting the natural landscapes that make the Cariboo unique. Secure access to resources provides economic and social stability and increased opportunities for growth and investment throughout the region” (ILMB 2007). Sub-regional planning commenced in 1996 to provide more detailed spatial representation of CCLUP values and objectives at the district level. The Project footprint is located in two sub-regions, with operational level values and objectives expressed in the Williams Lake and the Chilcotin Sustainable Resource Management Plans. More specifically, the mine site, mine site buffer and access road are wholly in the Chilcotin SRMP area. The transmission ROW and buffer traverse both SRMP areas. The regulation of forest harvesting is one of the tools used to attain a wide range of timber and non-timber values. Broadly, three zones are defined in terms of rate-of-harvest for the SRMPs as summarized below: • No Harvest Zone: this zone is designated to conserve special ecological and cultural values. Protection of those values is paramount and encompasses the maintenance of natural processes such as endemic levels of natural disturbance. • Extended Harvest Zone: The extended harvest zone requires higher levels of stand retention to protect sensitive habitats, species, provide connectivity among land units and visual quality objectives. • Harvest in One Rotation: non-timber values are adequately represented or protected given general management prescriptions. Table 5-7 summarizes the areal extent of the Project footprint among the three management categories.

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Table 5-7 Distribution of Project Footprint in SRMP Land Units Mine Site Mine Buffer Access Road Transmission Transmission Totals Footprint Buffer (200 m) Buffer (500 m) Footprint (80 m) forest non- forest non- forest non- forest non- forest non- forest forest forest forest forest No harvest 183 137 1,481 488 71 141 460 199 88 35 3,282 Extended 1,283 387 2,989 676 229 16 1,162 127 228 23 7,119 harvest Harvest within 2,060 370 7,222 747 1,255 30 2,750 373 546 71 15,423 one rotation Total project 3,525 894 11,691 1,911 1,555 187 4,371 699 862 128 25,823 footprint SOURCE: ILMB Williams Lake, Appendix 5-B, Table 5-20

As noted earlier, the TNG were proposing to prepare a Land and Resource Stewardship plan. It is expected that the plan would identify areas where harvest would not be allowed, or restricted, to protect other values. The linkage of this plan to the SRMP is a matter to be addressed in the planning process.

5.3.1.4 Assessment of Project Effects on Land Use Objectives Development of the Project footprint may preclude or defer Crown land management strategies embodied in the current land management plans.

Land Use Management Objectives The Project will remove trees and vegetation from the mine site and the transmission line ROW. The mine site has a total forested area of 3525 ha. Some of this will be cleared permanently while some areas are to be reclaimed to forest cover post-closure. Also, the mine site does not require complete clearing of trees and vegetation. Site clearing will be done on an as required basis, without clearing excessive areas too far in advance of need. In the first five years, some 744 ha is expected to be cleared. All of the trees would be removed from the transmission ROW, which is estimated to be some 860 ha of forest land. If the transmission line is de-commissioned post-closure all to this land would be reclaimed to forest cover. Trees and vegetation would not be removed from the buffer areas; hence the forest cover would continue to contribute to the pre-Project management objectives. The Project will create the greatest divergence with expressed land management prescriptions with respect to the “no-harvest” and “extended harvest” strategies. Forest lands that have the “one-rotation” management prescription that are reclaimed to forest post-closure, the effect would be very comparable to industrial timber production with slightly extended regeneration delay. Table 5-8 provides greater detail with regards to the objective or value the management prescription is intended to sustain. For example, most of the forested lands in the mine site that has the “no-harvest” prescription are old growth management areas (OGMAs). The location of the polygons with the respective management objectives within the mine site and transmission line is not known. Nevertheless, if all of the forest areas in the “no-

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harvest” and “extended harvest” were cleared, this would amount to clearing 269 ha in the former and 1511 ha in the latter. The mine site straddles two resource management zones that were defined by the CCLRMP, the Eagle and resource management zones (RMZs). The total land area with “no-harvest” prescription in the two RMZs is 44,663 ha and in “extended harvest” prescription is 103,030 ha. While the transmission ROW overlies other RMZs, its land has been included with the mine site to yield a “high” estimate of the effect of the Project from a regional perspective. That is, we estimate that the Project would remove land in the “no-harvest” prescription by 0.6 and 1.5% of land in the “extended-harvest” prescription.

Table 5-8 Distribution of Project Footprint in SRMP Land Units Transmission Footprint Mine Site Footprint (80 m) Forest Non- Forest Non- No Harvest (ha) forest (ha) forest Total Not Available 7 5 0 12 Critical Fish Habitat Areas 0 2 2 Lake, Stream and Wetland RRZs 60 78 15 23 177 Mapped Permanent OGMAs 115 54 71 9 249 Extended Harvest Visual Management, Retention VQO Pine 41 6 0 47 Class B Lakes LMZ 71 41 112 Stream Class S4 RMZ 169 117 23 9 317 Stream Class S1,S2,S3 RMZ 377 102 26 6 510 Visual Management, Partial Retention VQO 614 120 734 Wetland RMZs 11 0 77 2 90 Class C Lakes, LMZ 2 0 2 MDWR Moderate Snowpack, Fir Management Area 65 0 65 MDWR Shallow Snowpack, Fir Management Area 35 6 41 One-rotation Class D, E, Unclassified Lakes, LMZ 19 3 1 0 23 Mapped Transition OGMAs 189 9 5 203 Mule Deer Winter Range (non fir management area) 24 48 71 Visual Management, Modification VQO 0 17 0 18 Unconstrained Land base 1,852 358 499 23 2,732 SOURCE: ILMB Williams Lake

Post-closure, much of the land will be reclaimed to forestry uses, but it would be some time before the site conditions returned to current conditions (and re-establish the biodiversity values). The time lapse would be somewhat extended as compared to conventional timber harvesting, but for land in the one-rotation prescription, the effect would be similar. The above assessment does not account for the effect that MPB has had, or will have on the timber stands within the Project footprint. The spread of mountain pine beetle March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 5-20 Prosperity Gold-Copper Project

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affecting the Project footprint is requiring on-going monitoring and adjustment to how land management objectives might be obtained. To date there have been 12 updates to the CCLUP Biodiversity Strategy (ILMB),with updates #5, 6, 8, 10 and 11 addressing mountain pine beetle effects, as discussed in the Forest Resources and Land Use Report (Jacques Whitford AXYS Ltd. 2007b). Update #8 is the most important because it addresses how to manage the levels of mature seral forest as specified for each Landscape Unit. This includes the option to draw down the level of mature forest within an LU, under certain conditions, to address the mountain pine beetle outbreak.

Mitigation With reclamation, most of the Project footprint will eventually be returned to productive forest use, but less so for the mine site. In particular circumstances it may be possible to modify site clearing to preserve certain identified attributes or values. The mine site encroaches on 170 ha of existing OGMA locations, and the transmission ROW, 80 ha. These lands have the “no-harvest” management prescription and were delineated as part of the SRMP process and approved through legislation. The replacement OGMAs must have similar stand age and species compositions and be within the same BEC subzone. Otherwise, the disturbed lands could be viewed as a natural disturbance type (NDT 3) with development and restoration incorporating both landscape biodiversity features, such as opening shape, maintenance of internal islands of trees, and coordination with adjacent planned openings and biodiversity strategies, and stand level features such as placing stub trees as snags and coarse woody debris on the site. These matters are addressed in the forest and land use volume, and the reclamation plan.

Residual Effects The socio-economic implications of not satisfying, or suspending, the land management objectives embodied in the CCLUP and the SRMPs is minimal. For more than half of the affected land base, the effect is equivalent to delaying regeneration. Sites that have special attention, such as OGMA, may be relocated, which is relatively common practice. Nevertheless, the effect of the mountain pine beetle on the forest stands in the footprint will be substantial in the absence of the Project.

Determination of Significance The clearing of land for the Project that would be reclaimed to forest is broadly similar to industrial timber harvesting, hence would correspond to the “one-rotation” land management prescription. About half of the mine site and more than half of the forested areas in the transmission line ROW have this management prescription. Nevertheless, if it is assumed that all of the cleared forest is lands with “no-harvest” or “extended harvest” prescription, then the Project reduces the quantum of lands in two categories by 0.6% and 1.5% respectfully at the regional level. With reclamation, most of these lands would return to a state that would contribute to the maintenance of biodiversity values. Overall, the clearing of Project footprint effect on the attainment of land use objectives is not significant. Given the Project’s small effect of relatively limited duration, it is unlikely that the Project’s contribution to cumulative environmental effects will affect the viability or sustainability of the values the land use plans are intended to manage.

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Confidence in Predictions Confidence is relatively high. The analysis did not involve the identification of the land management prescriptions for the specific polygons to be cleared from the site, but our assumption was that those polygons with the most restrictive prescriptions would be removed.

5.3.2 Forestry The Project’s physical effects on the forest and timber resources in the Project Footprint are addressed in detail in the Forest Resources and Land Use Report (Jacques Whitford AXYS Ltd. 2007b). The consequential economic ramifications of these physical effects are addressed here.

5.3.2.1 Scope of Assessment for Forestry Much of the Project footprint, including the mine site, transmission line and new access roads, is forested. Some of the forest is economic to harvest, and has, or is expected to be harvested, thus contributing to the local and provincial economies. In the short to medium term, the Project may have the effect of re-ordering the harvest sequence of stands found in the mine site and transmission line ROW. It is assumed that forest management in the buffer areas would continue under current management practices and not be materially affected by the Project. In addition, the Project may cause the harvest and disposition of stands in the mine site and transmission line ROW that are presently excluded from harvest, perhaps because the stands are not mature, costs exceed wood values, or land is restricted from harvest to satisfy biodiversity considerations. The latter matter is addressed as a land use issue. In addition to commercial timber, forested lands may produce a range of other products. Non-timber forest products (NTFPs) include mushrooms, berries, floral and/or decorative materials, and medicinal plants. The harvest may have commercial value (e.g., pine mushrooms), or may be utilized as traditional foods, medicines and crafts (Powell 2005). Pine mushrooms are mostly harvested around Anahim Lake. The Chilcotin Forest District Office was not aware of any harvesting of NTFPs around the mine site area (Schofield 2007, pers. comm.). This being the case, Project effects on commercially valuable NTFPs were not considered further. The harvest of NTFP by First Nations for social or cultural values is addressed in the cultural heritage assessment (Volume 6, Section3). Potential issues considered are: • the economic implications associated with the merchantable timber volume • reduction in the productive timber land base and associated effects on the aggregate volume of timber available for the Crown forest management units • considering this reduced timber supply in relation to affected forest tenures The degree to which the forestland in the footprint has, or is reasonably expected to be killed by the mountain pine beetle infestation is considered in the baseline, since the epidemic is spreading independent of whether the Project proceeds. The Project’s direct effects will occur at the Project construction/commission stage when the footprint is cleared and post-closure where the land is reclaimed to forest cover.

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The local study area is defined as the Project footprint, specifically the mine site and transmission ROW, both of which are to be cleared for the Project. The regional study area is Williams Lake TSA. The entire mine site and about 90% of the transmission line ROW is located in the Williams Lake TSA. About 102 ha at the eastern end of the transmission line ROW is in the 100 Mile House TSA. To simplify this effects assessment, Project effects on this 102 ha is considered as part of the Williams Lake TSA. A TSA is a regional unit that is managed to provide continuous timber supply on a long term basis. The chief forester sets an annual allowable cut (AAC) for TSAs. The Crown forested land managed by MOFR in the Project footprint contributes to the management objectives of the TSA. Administratively, the Chilcotin Forest District manages that portion of the Williams Lake TSA occupied by the mine site, access road and western end of the transmission ROW. Most of the remainder of the transmission line ROW is administered by the Central Cariboo Forest District office in Williams Lake. The 100 Mile House Forest District has administrative responsibility for the small portion of the 100 mile TSA at the eastern terminus of the transmission line ROW as noted earlier.

5.3.2.2 Effects Assessment Methodology An analysis of the timber resource in the Project footprint and the physical effects of the Project are addressed in the Forest Resources and Land Use Report (Jacques Whitford AXYS Ltd. (Appendix 6-5-A) and referred henceforth as the Forest Resources Report). Pertinent to this socio-economic assessment of forestry, the report addresses the following: ƒ A review of the current forest health conditions in the Project area, and a projection of forest pest influence on the Project. ƒ A description of the existing forest resources, including existing timber values and forest land productivity, within the planned footprint areas of the mine site and transmission line corridor. ƒ An assessment of the potential effects of Project construction, operations and closure on forest land and timber production in accordance with the PRS, including: recommended mitigation measures designed to avoid or minimise adverse effects. The findings of the Forest Resource Report provided the basis for estimating the short and long term socio-economic implications the Project has with respect to removing timber from the Project footprint. The specific effect on existing forest tenure holders was addressed using GIS analysis and discussions with the MOFR.

5.3.2.3 Baseline Conditions for Forestry According to the Forest Resource Report, the mine site and transmission line ROW are mostly forested, with a large proportion of mature forests greater than 100 years. The forest type is pre-dominantly coniferous forests, interspersed with grassy or shrubby meadows and wetlands. The forest in the Project footprint is dominated by lodgepole pine stands with spruce and black cottonwood common in the riparian areas as summarized in Table 5-9 . Spruce also occurs on some wetter site series and as a secondary species in older forests. The transmission line ROW consists mainly of lodgepole pine stands in the western portion, March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 5-23 Prosperity Gold-Copper Project

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and various mixes of Douglas fir and lodgepole pine stands in the eastern portion, with Bunchgrass ecosystem adjacent to the Fraser River. The disturbed areas mostly refer to recently logged sites. Note that nearly 70% of the stand area is lodgepole pine leading. The standing inventory of merchantable timber is estimated at 372,447 m3 in the mine site and 57,264 m3 for the transmission ROW. This total volume, if harvested uniformly over the two year construction period (i.e., 215,000 m3 per year) is less than 4% of the Williams Lake TSA AAC of 5.77 million m3 per year. Note that about 60% of the inventory is Lodgepole pine. Project clearing will also remove some immature and non- merchantable volumes.

Table 5-9 Area of Stands, by Leading Species, within the Mine Site and Transmission Corridor Footprints Mine Site Footprint Transmission ROW Leading Undisturbed Disturbed Undisturbed Disturbed Species (ha) (ha) (ha) (ha) None specified* 878.1 64.2 121.2 115.4 Poplar 0.0 0.0 5.4 0.0 Trembling aspen 0.0 0.0 1.6 4.8 Douglas fir 0.0 0.0 96.1 84.0 Lodgepole pine 3,129.2 56.7 378.2 121.4 Spruce 232.0 47.1 67.8 3.8 Totals 4,239.2 168.0 670.4 329.5 SOURCE: Appendix 6-5-A

The major industrial forest operators in the mine site and transmission ROW are Tolko Industries Ltd. and British Columbia Timber Sales. Sigurdson Brothers Logging Ltd. and other small timber tenure holders may also initiate planning activities in the vicinity (M. Gatenby, pers. comm. 2006). A list of tenure holders (including First Nations) is presented in the Appendix 5-C (Table 5-22 and 5-23). There are also several First Nations logging operations active in the area including Yun ka whu’ten Holdings Ltd., Tsi del del Enterprises Ltd., Esketemc First Nation, Klatassine Resources Ltd and Tl’etinqox Logging Ltd. The transmission ROW crosses two area based tenures, a woodlot held by an individual and a community forest held by the Esketemc First Nation. Additional short-term timber tenures will be tendered to accommodate the recent AAC increase. This is expected to occur over the next several years and could add new forest licensees to the planning area. There are currently 75.8 ha of existing roads and 92.8 ha of planned and existing cutblocks within the mine site area. In the transmission ROW, historic logging activity and practices vary along its length. Partial cut harvesting of Douglas fir stands has been ongoing for more than 30 years leaving a mosaic of multi-aged stands on approximately 120 ha of the corridor. The majority of the clear cutting of the predominantly pine leading stands has been conducted in the past 15–20 years on approximately 105 ha. In the near-term, the expectation is that upwards to 95% of the pine stands in the Project footprint specifically (and Williams Lake TSA generally) will be killed in the next 10 years by MPB. The recent AAC determination indicates the Chief Forester’s intention to harvest as much of the infected stands while the stands still have a positive economic

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value. The new licences are expected to be made available mostly through a competitive process (G. Feldinger, pers. comm. 2007). While the pine stands in the Project footprint match the criteria, it remains to be shown how much of the incremental volume will be taken up by the wood industry, or wood users, in the region generally and the Project footprint specifically. The TNG, in a joint venture, is in the pre-application phase of the EA process to build and operate a 60 MW forest based biomass energy project (Tsilhqot’in Power Corporation 2008). The plant, with a proposed location adjacent to the Sigurdson sawmill east of Hanceville, would utilize the non-merchantable pine killed by the MPB. The proposed in-service date is 2012. The plant would consume a significant volume of fibre harvested from stands within an economic haul distance from the thermal plant.

5.3.2.4 Assessment of Forestry

Project Effects on Forestry The Project will have the immediate effect of increasing harvest volume and the associated economic activity while the footprint is cleared. Subsequently, while the Project is operating there is a reduction in the forest land base that contributes to the Williams Lake AAC determination. Post-closure, site reclamation will return a large proportion of the footprint to the timber harvesting land base. The effect on the two area based licences located in the transmission line ROW is also considered. The beneficial effects of the Project in forest management terms i.e., creating a fire break, accelerating salvage of dead wood are addressed in the Forest Resources report and not considered here. The total effects on employment in the LSA and provincially from harvesting 430,000 m3 are summarized in Table 5-10:

Table 5-10 Employment from Harvesting Mine Site and Transmission ROW

Activity in Mine Site and Person Years Employment Transmission Line Corridor TSA BC Total harvesting + processing 275 348 Total indirect + induced 150 464 Total employment 425 812 Total income (before tax, 2001 $) $13.2 million $ 21.3 million SOURCE: MOFR 2001, Appendix 5-C for coefficients

The total person years would be spread over the period of time required to complete the clearing. For instance, if the harvest were completed in two years, there would be approximately 140 direct fulltime jobs and 75 “spin-off” fulltime jobs in the TSA and $6.5 million in before tax income for two years. This increment corresponds to about 2% of the LSA 2001 labour force and 4% of the income30.

30 While somewhat dated, 2001 is the most recent year consistent data is available for employment and incomes March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 5-25 Prosperity Gold-Copper Project

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All or some of the harvest volume could be credited to the forest service reserve portion of the AAC. The harvest volume is large volume relative to the existing apportionment of less than 100,000 m3. Nevertheless, to the extent this occurred, the volume displaces other harvest and the corresponding economic effects are displacement from elsewhere in the TSA rather than incremental. The mine site clearing will directly affect cutblocks recently harvested, or planned to be harvested. Taseko will need to enter discussions with the tenure holders involved and the MOFR because harvested areas are subject to reforestation obligations. Any effects to the growing stock on these areas will require administrative amendments by the licensee and government for the tracking of these obligations and possibly financial compensation to the government for the loss of costs incurred. Stumpage would be payable to the provincial government for the timber harvested. It is noted that stumpage rates for a given site vary with market conditions (rising with increasing log prices and falling with lower prices) and that these actual rates may not provide a reliable guide to future values. In particular, given that a large increment of pine logs might be expected if industry responds to the AAC uplift, a relative abundance will tend to depress the log price. This relationship can be observed presently in interior log markets. For the purposes of estimating government revenue, the minimum stumpage rate is assumed here of $0.25/m3. Based on this stumpage rate, the minimum payment to the provincial government for the Crown timber on the mine site and transmission line corridor would be at least $110,000. While the Project is operating, the forest land it occupies will not be contributing to the regional timber supply calculated for the Williams Lake TSA. This is a reduction of some 4300 ha from the TSA’s total timber harvesting land base of some 1.86 Mm3. It is estimated the net effect is a 6802 m3/yr reduction in timber supply for the Williams Lake TSA during the term of the Project through to post-closure. This is 5706 m3/yr from the mine site and 1096 m3/yr from the transmission corridor, or 0.12% of the current AAC of 5.77 Mm3/yr. The timber licences in the mine site are volume based, and there is presently ample unallocated wood supply in the TSA for the existing licensees to make up this relatively minor volume reduction. In recent years the actual harvest has been less that the AAC (see Figure 5-4, Appendix 5-C) which suggest the total timber harvest is not constrained by supply factors. There are two area based forest tenures in the transmission ROW. These types of licences are tied to a specific land base. The GIS analysis indicates that 20 ha of Crown forest land of a woodlot licence issued to Mr. Hodgson lies in the proposed ROW. Woodlot licences in this area are typically about 600 ha in size, with AACs in the range of 800 to 1000 m3/yr. The second licence is a community forest licence held the Esketemc First Nation. The total licence area is some 1500 ha. Discussions with the Forest District indicated that there were a number of options available to largely mitigate the effect of this temporary removal of the forest land. Taseko, the licensees and MOFR would discuss the options, which range from replacing the land with comparable forest land, to doing nothing (M. Gatenby, pers. comm. 2007). Relative to the total licence area, the land removed is not large for either licence. If the transmission line is de-commissioned post-closure, the land would be available for timber production after a relatively short period. That is, trees do

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not grow quickly in this area so the licence areas in the ROW could be re-planted some years before the Project is scheduled to close.

Mitigation The effect on regional timber supply and licence holders is not large. Nevertheless, opportunities to mitigate the negative effects include adjusting the route of the transmission line centre line to avoid productive forest land, and minimizing merchantable trees removed from the mine site. The reclamation plan will provide for the restoration of forest land post-closure. The current reclamation plan calls for replacement of the topsoil and establishment of native vegetative cover including commercial conifer species (Forest Resource Report). Reclamation could be expedited by initiating activities on portions of the site as soon as they are no longer required for mine operations rather than waiting until the completion of all mine operations to begin reclamation. With respect to positive economic effects, Taseko could maximize local effects by hiring local logging contractors that, in turn, sell the wood to local mills. Non-merchantable timber cleared from the project footprint may be suitable feedstock for the proposed biomass energy plant, if it is operating at the time of site clearing.

Residual Effects In the near-term, forest management on Crown land is being driven in reaction to the mountain pine beetle epidemic. It has led to an accelerated rate of harvest in the near term and reduction in harvest volume in the medium term as compared to the profile of a healthy forest. The response has led to a near term up-lift in harvest of over two million cubic metres. This response will effectively mask and absorb the small incremental influence the Project might have with regards to timber supply. The residual effects to the forest industry and licensees as a consequence of the Project clearing the mine site and transmission line ROW and occupying the land is not large. The volume of merchantable timber removed from the Project footprint may result in a short-term accelerated harvest, as the forest land that was slated to be harvest at some point in the future. To the extent the harvest volume displaces harvest off lands elsewhere in the TSA the net effect is very minor. While it is the case that during the interval the Project occupies the forest land it no longer contributes to the regional timber supply (i.e., AAC determination), the reduction in land base is less than 1%. Furthermore, planting of conifers could occur before the mine closure, essentially returning the land to forest use within a relatively short period of time.

Cumulative Effects The AAC for the Williams Lake TSA is determined at least every five years. In that process, the land base is “netted down” to those forest lands that are available and commercially viable for timber harvesting. This is termed the Timber Harvesting Land Base (THLB). For instance, in the most recent AAC determination, the netting down process yielded a THLB of 1.86 million ha from a total area of 4.9 million ha. Included in the net down is the land occupied by the currently operating mines, such as Gibraltar and Mt. Polley. The net down for the mines is a very small proportion of the land area removed from the THLB. The forest land base to be occupied by the Project will be

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removed from the THLB in the next AAC determination following a commitment the Project will proceed. The Spanish Mountain and Blackdome properties are exploration projects in the Williams Lake TSA whose potential net down of the THLB is not fully recorded in the current AAC determination. If these projects, or other mineral exploration projects, develop into operating mines, the respective Project footprint will be removed from the THLB. If these projects’ net downs are about the same as for the Prosperity mine, the corresponding reduction in the THLB is some 13,000 ha, or about 0.7% of the THLB in the TSA. In addition, most of the land will be reclaimed to timber production post- closure. The cumulative effect on timber supply is neither large nor lasting.

Determination of Significance The Project’s several effects are relatively short in duration and not large in the regional context. The positive economic effects from clearing the land will substantially occur in the two year construction period. Relative to the TSA’s harvest volume and level of industry activity, the increment to economic activity is in the order of 2 to 4%. The reduction in timber supply from the removal of productive forest land represents less than 1% of the TSA’s productive land base. With respect to the two area based licensees that lie in the transmission ROW, there are several options available for mitigating residual effects. The most suitable arrangements would evolve from discussions between Taseko, the licensee, and MOFR. The residual effects of the Project on forestry are determined to be not significant.

Confidence in Predictions The employment coefficients correspond to logging and processing technology in the year 2000. The trend has been to increasing capital intensity, which would imply the labour estimate provided here may be somewhat high as compared to current technology and practices. The key elements supporting the conclusion such as size of the disturbed land base, forest cover, forest productivity, and mountain pine beetle management response are known with relative certainty. This gives a high degree of confidences in the reliability of the conclusion.

Follow-up and Monitoring Taseko will obtain a license-to-cut from the MOFR before site clearing commences. The process for approving the license will require Taseko to submit its harvesting plans and involve consultations with MOFR and affected licensees. Future obligations to restore the land are also addressed in Taseko’s approved reclamation plan.

5.3.3 Agriculture and Ranching

5.3.3.1 Scope of Assessment for Agriculture and Ranching The main concern of the PRS was the effect of the Project on range tenures administered by the MOFR, particularly those intersected by the transmission corridor. The Forest and Range Practices Act Section 48 requires a person to mitigate the effect of removing or rendering ineffective a natural range barrier. Seeding of the corridor and vegetation

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controls was also seen as affecting range resources. More generally, the PRS identified the availability of forage for livestock, the effects on cattle movement, and the spread of noxious weeds as areas of concern. The measurable parameters used to assess the Project’s effects include land capability, agricultural production, range tenures and range use. The majority of effects will occur during Project construction when the mine site is alienated and the transmission corridor cleared. The mine site and transmission line traversed several Crown range tenures. The LSA consists of the Project components, with an emphasis on the transmission corridor, where the loss of natural range barriers may result. The RSA consists of the Cariboo-Chilcotin (see Table 5-4). Range activity has administrative boundaries unique to that resource. The Project’s transmission line crosses Clinton and District Stock Range on the east side of the Fraser River administered by the 100 Mile Forest District. Continuing west, the transmission line first crosses the Clinton and District Stock Range administered by the Central Cariboo Forest District (Williams Lake) and then the Big Creek Stock Range administered on the east side by the Central Cariboo Forest District and on the western edge adjacent to the Nemiah road by the Chilcotin Forest District in Alexis Creek. District boundaries are often more aligned to timber extraction than the administration of grazing rights. Therefore it is not uncommon for one district range office to administer grazing in another district’s area. Consequently the William Lake office administers Gang Ranch, which belongs to the Clinton and District Stock range. Likewise a good portion of the Big Creek Stock Range, which is within the Chilcotin Forest District, is managed by the Williams Lake District office. Only the tenures adjacent to the Nemiah Road in the Big Creek Stock Range are administered by the Chilcotin District’s Alexis Creek office.

5.3.3.2 Effects Assessment Methodology Spatial analysis was used to determine where Project components overlapped with range tenures. These overlaps are shown in Table 5-6 and discussed in the Land Use and Tenures section. The profile of agriculture in the LSA and RSA was drawn from Statistics Canada’s 2001 Census of Agriculture. More recent studies on agriculture and range in the Cariboo- Chilcotin were used to characterize range activity and capacity. This was supplemented with personal communications with range officers in both the Chilcotin and Central Cariboo forest districts. The Project effects were described based on discussions with range officers, as well as affected range licensees. All but two of the range licensees identified in the GIS analysis were interviewed.

5.3.3.3 Baseline Conditions for Agriculture and Ranching Sixteen percent of the land area within the Project components is Agricultural Land Reserve (ALR). The mine site and mine buffer do not include any ALR land. While the soils and terrain of the mine site and mine buffer are suitable for forage crops, improvement practices there are not feasible. Approximately one half of the transmission buffer and over two thirds of the new access road footprint are considered suitable for forage crop improvement practices.

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Table 5-11 Agricultural Capability within Project Components Area (ha) Mine Site Mine Site Access Transmission Total (ha) (ha) Buffer (ha) Road Line Buffer Buffer (ha) (ha) Agricultural land reserve 0 0 173 1,497 1,948 Agricultural capability Severe limitations 0 0 20 0 20 Forage crops–improvement practices feasible 46 1,171 1,213 872 3,464 Forage crops–improvement practices not feasible 4,373 12,300 502 1,154 18,580 No capability for arable culture or permanent pasture 0 71 0 33 108 Organic soils 0 60 7 11 79 N/A–unclassified 0 0 0 3,000 3,572 SOURCE: Jacques Whitford AXYS Ltd. GIS Analysis, Appendix 5-A: Table 5-20

The CCLUP specifies that all lands within the plan area can be considered for the expansion of existing agricultural holdings. The Cariboo-Chilcotin Grasslands Strategy has noted that the biggest threat to grasslands in the region, and associated livestock grazing and biodiversity, is from forest encroachment. An open range benchmark has been established by the MOFR and will result in the long term expansion of range lands and grazing capacity to 1965 levels. The main agricultural activity in the RSA is beef cattle. Local producers account for 64% of all farms in the RSA and contribute approximately 30% of total provincial production. Other agricultural industries include dairy, sheep, game farming, horse, poultry, horticultural crops and forage production. Electoral areas K and E represent the primary areas for agriculture within the LSA. The 127 farms in the LSA constitute just over 10% of the total farms in the RSA, but close to two thirds of all farmed areas. They are predominantly land-intensive beef cattle operations, although other livestock are raised, mostly pigs and sheep. Crop production is used mainly for forage. On average, farm area, herd size, farm receipts and invested capital are higher in the LSA than in the RSA or British Columbia. Ranches are highly dependent on Crown range, which is managed by MOFR. Two forest districts, Chilcotin and Central Cariboo, are responsible for range management in the RSA. The mine site, mine buffer and access road are almost entirely within the Chilcotin Forest District boundaries. The transmission line actually passes through the Central Cariboo Forest District and the 100 Mile House Forest District boundaries, however all affected range units are administered by the Central Cariboo FD. In 2003, a total of 232 grazing tenures authorized close to 200,000 Animal Unit Months31 to licensees in the two forest districts. AUMs tend to be fully utilized in the Central Cariboo Forest District, but capacity remains available in the Chilcotin. Fifty-two hay cutting tenures authorizing 1116 tonnes of harvest were fully used in 2003.

31 The amount of forage required for one month by an average animal of the genus Bos (i.e., a cow) aged six months or older. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 5-30 Prosperity Gold-Copper Project

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The Project components intersect a total of 32 grazing tenures, or approximately 14% of all tenures in the LSA. The licence area overlapped by mine components is negligible for the majority of tenures. However, the transmission line will cross several large ranch operations, including one of the province’s largest ranches (the Gang Ranch). The majority of range use occurs from spring through to early autumn.

Table 5-12 Range Tenures Overlapping Project Components Area (ha) Mine Site Mine Site Access Transmission Total Buffer Road Line Buffer Buffer Number of range grazing licences (E01) 2 8 9 12 22 Number of range grazing permits (E02) 0 0 7 0 7 Number of range non replaceable grazing permits (E03) 0 0 3 0 3 Number of range hay cutting licences (H01) 0 0 0 0 0 SOURCE: Jacques Whitford AXYS Ltd. GIS Analysis, Appendix 5-A: Table 5-20

The proposed mine site (i.e., the Bullion Range Unit), is presently used by a Nemiah Band rancher, and Siegfried Reuter for approximately 250 AUMs. The carrying capacity is estimated at 700 AUMs (Klause, pers. comm. 2007). The Nemiah Band rancher does not have a registered range agreement with MOFR and is believed to have approximately 30 cattle/calf pairs in the Fish Lake and Onion Lake area.

5.3.3.4 Assessment of Effects on Agriculture and Range Use

Project Effects Except for a small area within the access road buffer, the only ALR designated land occurs along the transmission ROW. Because the ROW does not change the underlying use of the land, there are no effects on the ALR. For the transmission corridor, the effects on range use as a result of the Project will be both positive and negative. The greatest benefit will be the seeding of disturbed areas to domestic grass species after removal of trees from the ROW. The majority of the forest grass species is Pinegrass. This species is palatable until mid June when lignin content increases and stock find it less palatable. It is never preferentially grazed. In the lower forested sites, domestic grass will be an advantage because of its greater palatability. Upper elevation forested sites produce virtually no forage and historic stocking rates were based on dry meadows, found along creeks, and wet meadows. Since logging has advanced into these upper elevation pine stands, canopy removal has dramatically increased production of Pinegrass. Pinegrass typically flushes (produces the most forage) five years after logging and then diminishes with forest regrowth. Stock will graze the forage resulting from logging, but the meadows will continue to produce the most palatable forage and therefore attract the most livestock usage.

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The negative effects are the loss of natural barriers as a result of clearing along the ROW. The cleared ROW could result in: • livestock drift by creating an easy egress corridor leading towards home32 (ranches) • increased public access by recreational users, primarily hunters, which often can result in damage to roads and trails, the spread of noxious weeds and breaching of fences or gates left open with the subsequent problems of finding livestock • increased risk of rustling, poaching or unintentional killing of stock • noise and associated disturbances to cattle and wildlife • illegal dumping of garbage and littering The mine site will have a minimal effect on forage availability, although the existing sole licensee will have to alter the grazing pattern of his horses (Klause, pers. comm. 2007). The area along the Taseko Lake Road is open range. Cows are frequently observed travelling up and down this road from May 15 to October 31. The approximate doubling of daily vehicle traffic as a result of the Project could therefore be expected to result in increased mortality of cattle from collisions. Additional fencing may be required to minimize this risk. Two of the 10 water licences intersected by Project components are for irrigation (Table 5-6). Because these licences are adjacent to the access road (an existing ROW), incremental effects are not anticipated.

Mitigation The company will work with the one range licensee and the First Nations’ rancher now using the mine buffer area to ensure that existing forage access is not compromised and that range barriers are maintained. Temporary negative effects associated with the clearing of the ROW and the construction of the transmission line will be mitigated by: • Timing the clearing of the ROW and construction of the transmission line to avoid activity on grasslands until late fall or winter when the plants are dormant and not as susceptible to damage. Further, there is less risk of soil rutting and compaction, although there is risk of wind erosion if vehicle traffic is heavy and the soil is dry. Driving over frozen grasslands is preferred to building a road. The best alternative is to utilize helicopter lifts. • Checking and washing equipment undercarriages and track cleats prior to use in the area to remove mud and minimize introduction of weeds, particularly knapweed, Canada thistle and houndstongue. • Avoiding the building of access roads across dry meadows. Where possible, roads will be located within the cleared forest sites. If crossing of a meadow is necessary, and it is dry and level, topsoil will not be cut with a cat blade.

32 Livestock will naturally drift towards home especially during the late fall. During the fall the nutrition levels drop in native forage, it is colder, and cattle know at home they will be at a lower elevation where it is warmer and they will eat high quality forage (hay) that requires no work (walking) as they are fed. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 5-32 Prosperity Gold-Copper Project

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• Minimizing potential conflicts between construction activities and ranching by selecting areas to work where stock are not being moved between units, when possible. • When possible, avoiding construction during the fall roundup when noise and activity could cause scattering of cattle and therefore problems for ranchers gathering and moving stock. • Maintaining fence line integrity throughout construction by first installing cattleguards with gates for both stock and heavy equipment passage. When stock is present, fences will be breached only when guards are available and crews are ready to install. Every reasonable attempt will be made to prevent stock gaining access to neighbouring operations. The example given by local ranchers was the possibility of Anvil Mountain Ranch stock gaining access and getting lost in the much larger operation of Gang Ranch, by breaching the fence separating Sugar Cane Jacks from the Gang Ranch (Ramstead; Weetman; Russel, pers. comm. 2007). Smaller stock operators may not get their stock back until fall/winter/the next year and will have a long trucking expense to retrieve their animals. This can also result in lost revenue when moving stock through the auction sales, as mixed small groups tend to bring lower prices, not to mention the nuisance factor. • Properly breaching of fences to ensure that the fence integrity is not lost. Brace panels at such breaches will be built to Ministry of Forests and Range standards to ensure that the fence line wire tension is maintained. Where log fences are breached, it will be necessary to add pole gates and properly tie in the log fence to the cattleguard. • Seeding of all disturbances as soon as possible following construction. Good germination depends not only on adequate moisture but also seed coverage. Small seed such as clovers and timothy are more easily covered than larger seeds such as wheatgrasses and orchard grass. As time elapses, fine soil particles compact and drift into the depressions making seeding less successful the longer the disturbance is left unseeded. Although hydro seeding will provide the best results, the forest industry is not required to hydro seed. Seeds are broadcast on disturbed soil using equipment such as Herd seeders, which throw the seed off a revolving pan. Herd seeders can be truck mounted or quad mounted. An alternative would be aerial application by fixed or rotary wing. For most application methods, a heavy application rate will be required (i.e., in the neighbourhood of 10 kg+/ha), as surface seeding is not efficient (published rates are typically based on a prepared seedbed with the seed being drilled into the ground). • Use of seed mixes that are appropriate to the disturbed sites. The seed mix for most sites should contain a winter hardy orchard grass variety as it is an excellent forage species; creeping red fescue and bluegrass because they spread vegetatively; alsike clover and low white clover for nitrogen fixation; and a small amount of timothy as it will grow in most locations. For dryland sites, the seed mix should include several wheatgrasses, including crested wheatgrass, as it is drought and heat tolerant. Alfalfa should not be included in any of the seed mixes as it will winter kill in mid to higher elevations. In lower elevations, it may invade native grasslands. The MPB is changing the forest landscape of the RSA. One result of this change will be the conversion of some previously forested areas back to their historical grassland state. Such an outcome is envisioned in MOFR's grasslands strategy for the Cariboo-Chilcotin

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(Cariboo-Chilcotin Grasslands Strategy Working Group, January 2001). MOFR is slowly implementing this strategy when the opportunities to convert small diameter stands (i.e., non-merchantable) is available. The opportunity to manage the transmission corridor as productive range would presumably be incorporated into their long-term plans, along with other mountain pine beetle land conversion opportunities. The above mitigation steps, if undertaken in cooperation with MOFR and affected range licensees, would then manage effects in support of the overall grasslands and range strategy for the RSA.

Characterization of Residual Project Effects The Project will exert a slight negative effect on the one range licensee and one First Nations rancher by removing 250 AUMs (0.3% of total AUMs authorized in the Chilcotin Forest District) of productive range at the mine site once when site clearing begins. However, by altering grazing patterns, users can access available forage in the areas immediately surrounding the mine. Overall, the mine site itself will have a minimal effect on forage availability (Klause, pers. comm. 2007). Even then the effect is reversible, as much of this lost range would be restored post-closure. The majority of mitigation steps outlined above are associated with the transmission corridor and preservation of range barriers. When constructed, the transmission line will run through 12 range licences, with an average overlap area of 1% of each licensees total range licence area. The conversion of 862 ha of forest to new forage lands, while positive, will be minor in comparison to total forage availability in the RSA (Armes, pers. comm. 2007). Preservation or construction of range barriers will allow ranchers to continue operations without disruption. The transmission line will be reclaimed post- closure so all effects are considered reversible.

Cumulative Effects The two existing operating mines, Gibraltar and Mt. Polley, the recently re-opened QR mine and the exploration project at Spanish Mountain are already accounted for in range management by the Central Cariboo Forest District. As these projects are on the east side of the Fraser River, they do not affect the range area or the licensees affected by the Project and thus do not contribute to cumulative effects. Galore Resources Inc.’s Taseko exploration project lies 25 km south of Prosperity, south and west of Upper Taseko Lake. Even if this project develops into an operating mine the effects on range at a prospective site would appear to be minimal as the tenure area is remote and at elevations ranging between 4000 and 8000 ft. Any plan to place new infrastructure (e.g., road or transmission line) south of Prosperity may also affect range values but, given the remote setting and low use levels, would not be expected to generate significant cumulative effects.

Determination of Significance The Project will cause one licensee at the mine site and one First Nations rancher to have to alter the grazing patterns for their animals, and have a minor, but positive, effect on forage availability along the transmission corridor. Increased traffic along the access road will likely increase the mortality of cows in this open range area. For the transmission corridor in particular, but also the access road, re-establishing range barriers and controlling access into forage areas will be important. The transmission corridor crosses

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provincially important beef cattle operations that rely on natural and built range barriers to manage their herds and their costs. With the proposed mitigation and environmental protection measures, the Projects effects on agriculture and range use should not be significant. Further, as the conversion of forested land to range land is incorporated into the Cariboo-Chilcotin Grasslands Strategy, the Project contribution to cumulative effects on agriculture and range use is anticipated to be not significant.

Confidence in Predictions The effects of mine and power line construction on range activity are well known in British Columbia. The mitigation measures also are widely practised and supported by range managers and licensees. Therefore, there is a high level of confidence in the effect predictions.

Follow-up and Monitoring Monitoring of effects on range and agriculture use and mitigation success will be incorporated into the Project reclamation plan.

5.3.4 Fishing

5.3.4.1 Scope of Assessment for Fishing The PRS and EIS Guidelines require that the Project effects on fishing be assessed, specifically an assessment of the effects of Project development on the recreational lake and stream fisheries affected by the proposed Project development plan. The Project will result in the destruction of Fish Lake as a productive sport fishery. Changes in hydrology and other environmental conditions may also affect nearby lakes. This has obvious implications for the fish resource itself and the displacement of fishing activity into neighbouring areas. Effects on the fish resource itself are assessed in Volume 5, Section 3. Effects on fishing as a traditional use activity by First Nations are discussed in the cultural heritage assessment in Volume 6, Section 3. The Cariboo-Chilcotin supports a sizeable sport fishery and the numerous lakes and streams contribute to a varied fishing experience that attracts resident and international anglers. Lodges in the region cater extensively to fishers at different times of the year. In addition, many other outdoor activities (e.g., hiking, camping) will lead to fishing as a secondary activity. The measurable parameters used to assess the Project’s effects include the economic value of the sport fishery, the origin of the users at Fish Lake, demographic characteristics of the anglers, the total amount of fishing effort expended on the lake over the year, the catch success, the total number of fish caught, and characteristics of the fish caught by anglers. The majority of effects will occur during the construction phase and remain through the mine’s operating life. Post-closure, the mine pit could be reclaimed to a productive sport fishery. The LSA consists of the Project components, with an emphasis on the mine site and buffer. The RSA is the Cariboo-Chilcotin, which, because of its relatively consistent fishing experience, would be reasonably expected to receive any fishing pressure displaced by Project components. Because effects on fishing use includes human March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 5-35 Prosperity Gold-Copper Project

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behaviour (in this case anglers) and not the fish resource itself, the LSA and RSA are not the same as the study areas for the Fish and Fish Habitat section (Volume 5, Section 3). For guiding or recreational fishing, an effect is considered significant if the activity or experience cannot be offered in nearby lakes or streams and results in a net economic loss to the RSA.

5.3.4.2 Effects Assessment Methodology The spatial analysis of Crown tenures shown in the Land Use and Tenures section was not able to extract any data on guided angling tenures. Even though these are issued under the Wildlife Act (as guide outfitting and trapping tenures are), they do not appear to be tracked in the available government databases. Ministry of Environment publications were used to identify angling guides in the immediate area of the mine. Baseline information for recreational fishing was provided by a major study of the recreational fishing sector published by the province in 2003. Creel surveys, MOE aerial boat counts and the Small Lakes Index Management (SLIM) data set were used to characterize fishing activity in and around Fish Lake. Representatives of government ministries were interviewed to determine Project effects.

5.3.4.3 Baseline Conditions for Fishing

Recreational Fishing The Cariboo-Chilcotin is a popular fishing destination with a variety of lakes and rivers in remote and semi-remote settings. In 2000, close to 80% of anglers were British Columbia residents, while the majority of non-resident anglers were from outside the country. An estimated 0.5 million days were fished and 1.2 million fish caught, primarily rainbow trout, freshwater salmon and kokanee. Less than 10% of the catch consisted of trout species, other than rainbow (Jack and Levey 2003). According to MOE's SLIM Program, Fish Lake ranked 55 out of the Cariboo-Chilcotin’s 116 fishing lakes in terms of total annual angling effort during the late 1980s and early 1990s, when Creel surveys and boat counts were regularly undertaken (MOE 2006a). The lake then supported an average of 424 angler days per year compared to an average effort for all Cariboo-Chilcotin lakes of 904 angler days. Fish Lake represented approximately 0.4% of total angler days for Cariboo-Chilcotin lakes and 14% of the seven lakes monitored in the LSA (MOE 2006a). Aerial boat counts for the 2006 (21 boats) and 2007 (9 boats) summer seasons indicated Fish Lake to be the seventh busiest of the 32 lakes on the Chilcotin flight circuit with regular but low use levels. Horn, Chaunigan, Bluff, Cochin, Sapeye and Big Onion lakes supported the most boats. There has been a substantial decline in freshwater angling activity in the last 20 years, both province-wide and in the Chilcotin region. The province supported 5.7 million angler days in 1985, compared to 4.4 million in 2005 (Gislason April 2003b).

Guided Fishing Many non-resident anglers and a small percentage of resident anglers will hire a third party to package one of more services (travel, accommodation, food, guiding, and

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equipment) to facilitate the fishing experience. The guided fishing and lodge sector is an important component of the local tourism industry. In 2005, there were 22 individuals listed as freshwater angling guides for the Cariboo-Chilcotin in MOE’s guide directory (Ministry of Water, Land and Air Protection, March 31, 2005 British Columbia Angling Guides). Of these, four were listed as being active in the RSA, including one registered outfitter and one lodge (Chaunigan Lake). During the 10-year period ending 2005, the number of fishing lodges, the number of rooms and room revenues all declined in the region (BC Stats 2006). The proportion of guided to total angling days in the Cariboo-Chilcotin is believed reflective of the provincial experience. In 2000, approximately 17% of provincial freshwater angler days were attributed to guides/lodges (Gislason 2003b). Based on the 2000 fishing survey conducted for the Cariboo, this would generate approximately $1.46 million in guide services, $4.6 million in lodge revenues and an estimated net economic value of $471,000.

5.3.4.4 Assessment of Effects on Fishing

Project Effects The Project will eliminate recreational and guided sports fishing at Fish Lake for the duration of the construction and operations period of the mine. Although Fish Lake is not a destination for the seasoned sports fisher, it does attract many return visitors. It is known for its high population of fish and the relative ease with which anglers are able to have a successful day. It is also distinctive for its high elevation setting and relatively difficult access (which helps keep fishing pressure low and angling success high). The loss of the lake would have no effect on sport fishing overall in the RSA (Cariboo Chilcotin) as the total fish effort and catch represented by Fish Lake is minor (0.4% of RSA angler effort). Even without mitigation, the displaced activity could be easily absorbed by other area lakes. The pressures on the fishery resources from the sport fishery are not expected to change and may in fact decline if current trends persist. What is not easily replaceable is the “fishing experience” at Fish Lake resulting from its exceptional vistas, relative remoteness and lack of crowding (Noelle Kekula, pers. comm.). The anglers seeking out these types of conditions would likely move to Chaunigan or Vedan lakes or other reasonably good fishing lakes in the local area, but would then be experiencing a more typical angling encounter. Increased pressure on local area lakes may also be expected to occur because of angling by construction workers and mine employees. There is no commercial recreation tenure and thus no effect on guided fishing at Fish Lake. Similarly, guided fishing in the RSA is not expected to be affected. Fishing lodges and their clients in the LSA may be affected by increased traffic, noise and dust along the access road during the construction and operations phases but the incremental effects will be minor.

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Mitigation Mitigation and compensation plans presented in the Fisheries Compensation Plan (Volume 3, Section 8) are summarized below as they affect sport fishing activity. The replacement of the Fish Lake fishery will be achieved through the construction of a new lake with two management options, production of a large number of smaller trout for family fishing or development of a “trophy” style fishery with smaller numbers of fish. MOE has indicated in its Benchmark Statement a preference for a “replacement” fishery with a reasonable catch per unit effort. The final selection of options and character of the fishery is to be determined through agency, public and First Nation consultation. Compensation measures for Fish Lake and associated stream habitat should also increase opportunities for First Nations fisheries and recreational angling opportunities in the Taseko and Chilko watersheds. The interim period prior to confirmation of a suitable replacement fishery for Fish Lake will include a program for stocking fry from the fish culture facility and/or the transplant of mixed age class of fish from Fish Lake into recipient lakes. These lakes could also be the recipients of access improvements and the construction of recreational facilities (e.g., campsites) to fully realize the recreational potential. To mitigate against increased pressure on local stocks, fishing and hunting bans for contractors, their employees and the mine’s operational employees will be instituted.

Characterization of Residual Effects With the proposed fisheries compensation programs, the 424 annual angler days (0.4% of total RSA angling activity) and annual catch that will be displaced at Fish Lake when construction begins will be easily absorbed by existing lakes in the LSA and by new facilities at the Haines Lake chain without any loss of opportunity to the sport fishery. Fishers will have to alter their fishing patterns somewhat but the region and province- wide decline in fishing as a recreational activity should allow this adjustment to occur without a net loss to economic value in the LSA. The loss of Fish Lake’s high elevation setting may force some fishers who value that aspect of the experience to seek equally attractive settings in neighbouring lakes. Overall, the negative and positive effects that are experienced when construction begins will continue until mine closure, at which time new opportunities to fish at the TSF will be available. The improved access to the tailings pond, in combination with developing and maintaining a self-sustaining fish population and environmental testing programs, will likely lead to fishing opportunities that exceed pre-Project levels.

Cumulative Effects Cumulative effects are not expected to occur for sport fishing because all projects but one are located outside the LSA and would therefore not be expected to exhibit a demonstrable overlap with the Prosperity Project. Galore Resources Inc.’s Taseko property might be expected to overlap on fisheries issues if it were to proceed but the continued application of no net loss compensation policy for fish habitat would minimize if not eliminate the cumulative effects.

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Determination of Significance For the sport fishery, the contributions of Fish Lake to the total regional catch and the overall fishing experience is minimal. As no other projects or activities are proposed that are likely to reduce recreational fishing opportunities, there is limited or no potential for cumulative effects on fishing use. Guided angling activity does not occur within the proposed mine site and so will not be displaced. Fish productivity and opportunities in the RSA will not affect recreational or guided angling once the proposed mitigation and environmental protection measures are implemented. Therefore, the Project’s contribution to cumulative effects on fishing is not expected to be significant.

Confidence in Predictions Angling activity at Fish Lake and its contribution to LSA and RSA angling effort and experience is well documented in the Creel surveys, boat counts and other research on the Cariboo-Chilcotin sport fishery over the last 25 years. Ministry of Environment stocking programs clearly demonstrate that the “naturalness” of the fishing experience is not as important to sport fishers as the opportunity to catch fish, which would indicate that fisheries compensation programs will have the desired mitigating effect, as they have had elsewhere in the province. For these reasons, we have a high level of confidence in the above conclusion that the Project will not have a significant effect on sport fishing.

Follow-up and Monitoring Fish habitat and compensation efforts will be monitored as part of the fisheries compensation plan, the reclamation plan for the mine site and any environmental programs that will continue as part of monitoring of aquatic resources. Proposed new facility development and enhancement to replace Fish Lake angling opportunity will require follow-up in cooperation with the Ministry of Environment.

5.3.5 Hunting

5.3.5.1 Scope of Assessment for Hunting The PRS requires that the Project effect on recreational hunting opportunities in the immediate and adjacent areas be assessed. In addition, changes in wildlife and wilderness values for registered guide outfitters are also to be considered. The three major hunting issues will be the loss of the mine site to hunting activity, disturbance of animal movements or productivity as a result of the Project, and the potential for increased hunting pressure by employees and contractors. Each of these is expected to affect resident hunters, as well as registered guide outfitters. The effects of the Project on the hunting experience of First Nations are addressed in the cultural heritage assessment in Volume 6, Section 3. The Cariboo is a major hunting destination for both resident and non-resident hunters. Lodges and other tourism businesses cater to resident hunters during the hunting season, while guide outfitters sell their hunts to international clientele. The measurable parameters used to assess the Project’s effects include the value of hunting, the number of hunters, number of kills, hunter effort and spending.

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The majority of the effects on hunting will occur during Project construction and remain through the mine’s operating life, and beyond as long as the no-hunting zone remains in force. The LSA consists of the Project components, with an emphasis on the mine site and buffer where a no hunting zone will be enforced. The RSA consists of the seven management units that collectively surround the Project Components (see Table 5-4). For hunting, an effect is considered significant if it results in the loss of unique or irreplaceable habitat/wildlife, or causes a substantive change in the operating conditions or profitability of affected guide-outfitters.

5.3.5.2 Effects Assessment Methodology A spatial analysis was used to determine how the Project components overlapped with known hunting areas. The area of guide territories affected is summarized in Table 5-6. The Ministry of Environment, Wildlife Branch, was contacted for hunter effort, kills, expenditure and consumer surplus data for RSA and LSA for the last 10 years. These data are taken from hunter surveys and allows detailed tracking of resident and non-resident hunters. This database does not account for hunting activity undertaken by First Nations. The economic value of resident hunting in the RSA was based on a review of four different government publications (BC Stats 2005; MSRM 2003; Environment Canada 1996; Fish and Wildlife Branch 2007a). The economic value of guided hunting was based on a publication commissioned by the Guide Outfitters Association of BC in 2003 (Pacific Analytics 2003). Representatives of government ministries and the hunting sector were interviewed to determine Project effects.

5.3.5.3 Baseline Conditions for Hunting For the RSA, the number of resident hunters declined between 1996 and 2005, although the number of hunter days remained the same (Table 5-13). The number of kills rose dramatically, from 3976 in 1996 to 6282 in 2005. The number of non-resident hunters and their harvests also rose substantially during this time. Total expenditures for resident and non-resident hunting in the RSA were $6.6 million in 2005 (Fish and Wildlife Branch 2007a). For the LSA, the number of hunters remained virtually unchanged between 1996 and 2005, but the effort they expended rose, while their harvest declined. Close to $0.5 million was spent in 2005 in harvesting 184 big game species. Black bear, cougar, goat, sheep, deer, moose and wolf are regularly harvested (Fish and Wildlife Branch 2007a). A review of compulsory inspection data from the Ministry of Environment shows that one goat was killed in the mine site area between 1990 and 2006 (1993). (Fish and Wildlife Branch 2007b) There was no harvest of sheep, Grizzly bear or cougar. Many local hunters are members of the Williams Lake Sportsmen Association or the Alexis Creek Rod and Gun Club. The use of the Fish Lake area by Williams Lake hunters is very low because there are other areas in the region that provide better opportunities, more options and closer proximity for the principle species of moose and Mule deer (Driesdelle, pers. comm.).

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Table 5-13 Hunting Effort Summary, 1996 and 2005 1996 2005 non- non- residents total residents total Regional Study Area residents residents Number of hunters 13,343 419 13,762 12,823 822 13,645 Number of hunter days 84,581 2,393 86,974 85,788 4,371 90,159 Kills (all big game species) 3,976 197 4,173 6,282 320 6,602 Expenditures $3,956,566 $850,946 $4,807,511 $4,657,704 $1,923,052 $6,580,756 Local Study Area Number of hunters 584 88 672 572 111 683 Number of hunter days 3,920 515 4,435 4,318 591 4,909 Kills (all big game species) 163 33 196 151 33 184 Expenditures $190,894 $180,871 $371,765 $243,533 $247,236 $490,770 NOTES: RSA - MUs 5-2, 5-3, 5-4, 5-5, 5-12, 5-13, 5-14; LSA–MU 5-4. See appendix for complete 10 year trend line SOURCE: Fish and Wildlife Branch 2007a

The baseline conditions for hunting are changing as the MPB epidemic moves through the Cariboo. Major changes to wildlife habitat are anticipated because of the loss of pine forest. This will be particularly harsh for winter range areas and make the remaining non- pine areas of the Cariboo-Chilcotin that much more valuable. The mine site is predominately spruce forest so its value as habitat may increase, but the potential contribution of the mine site to total winter range is minimal. The MPB may actually enhance the populations of some species like deer because of increased forage availability in new stands. Likely the biggest change will be new road access created as a result of the increased logging and silviculture activity to combat the MPB. There is some fear that with a rapid expansion of the road network into previously unroaded areas poaching will become a major problem and create new pressures on wildlife populations.

Resident Hunting Total hunter expenditures in the RSA were estimated to be $4,657,000 in 2005. Government revenues were estimated at an additional $860,000. Estimated net economic values ranged from a low of $1.4 million (Environment Canada) to a high of $4.9 million (Fish and Wildlife Branch 2007a).

Guided Hunting There are 47 registered guide outfitters in Cariboo region, 45 of which are licensed by MOE to operate in the RSA. This is down slightly from the 50 operators licensed in 1996 (Pacific Analytics 2003). Of British Columbia’s eight management regions, the Cariboo has the third-most outfitters, after the Peace-Omineca and the Skeena management regions. Moose and black bear account for the bulk of hunter effort, harvest and expenditures. Province-wide, the geographic origin of guide-outfitters clients is 85% American, 4% German, and 6% Other European and 5% other countries (Pacific Analytics 2003).

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Project components will overlap eight registered guide-outfitters territories. The 23,802 ha affected by the Project footprint represents 1% of the total area licensed to these operators by the province (Table 5-14).

Table 5-14 Area Summary of Registered Guide Territories Overlapped by Project Components Guide-Outfitter Total Mine Mine Buffer Transmission Access Total Area Licence Area Footprint Buffer Road Affected by Project Components Total 2,218,399 4,638 13,601 3,948 1,613 23,802 100% 0% 1% 0% 0% 1% SOURCE: Jacques Whitford AXYS Ltd. Environmental GIS Analysis

Based on an average hunter expenditure of $440 per day, total revenues to the industry are estimated to be $1.9 million. Person-years of employment are estimated to be 25.7, while net economic value is estimated to be $330,360 (see Table 5-33 for sources).

5.3.5.4 Assessment of Effects on Hunting

Project Effects Hunting and guiding are undertaken in the area and thus will be affected by the mine construction and operation of the mine components. Once the mine permit is issued, a no-hunting ban will be instituted around the mine site for human safety reasons. Three guide outfitters will lose access to part of their registered territories. As noted in Table 5-32, the no-hunting zone will represent a small portion of total licence area. The transmission line will run through another five guide outfitter territories but access to or the ability to work tenure area is not restricted. For resident hunters, the loss of the mine site as a no-hunting zone represents a negligible part of the hunting area in the RSA (i.e., less than 0.3%), and hunting pressure will shift to adjacent areas. No discernible effects are anticipated (Driesedelle, pers. comm.). A substantial increase in hunting because of more resident use of the area is not expected. Road access to the mine site and the recreation site at Fish Lake is already well- established and currently provides residents with ample opportunity to hunt. However, the potential exists for increased hunting activity around the mine site both by construction contract workers and mine employees. Increased hunting pressure from this source may be perceived as competition for game by licensed guide outfitters who cater to non-resident hunters. It is apparent over the last 10 years that non-resident kills in the LSA have been increasing, while resident kills have been declining. A substantial increase in the recreational or resident harvest may result in fewer opportunities for guided hunters and possibly less revenue for guide outfitters. In terms of the transmission line, the ROW cuts through guiding territories and may affect travel corridors for animals. However, it is relatively narrow and no new access will be created in constructing the line. Barriers will be maintained for range and new

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access routes (and associated opportunities to hunt) are not expected. However, some linear mortality from hunters’ use of ATVs is anticipated. The transmission line is expected to have minimal effect on wildlife populations. Finally, the mine site may affect big game habitat, populations and movements and thus hunting opportunities. Many of the species hunted in the region, including mountain goat, sheep and mountain caribou are not present at the mine site. The major species studied in the wildlife volume are Mule deer and moose. Although Mule deer do move out of the Chilcotin mountains into the Interior plateau there is little evidence that the mine site is a transit corridor. The mine area is not high value winter range so overall the effect on populations in the area surrounding the mine is believed to be minimal. Post-closure, once the mine site is remediated and wildlife populations return, the potential for guiding and hunting activities are expected to be returned to pre-Project levels.

Mitigation Taseko will consult with all eight guide outfitters whose outfitting areas are overlapped by parts of the Project to discuss areas of conflict and develop measures to minimize detrimental effects. Discussions with the three guide outfitters for the effects attributable to their loss of use of lands contained within the mine buffer will be undertaken. One outfitter (Reuter) also holds a grazing licence in the mine site area and discussions concerning the loss of grazing opportunities will be undertaken in conjunction with the guide outfitting licence. Given the minimal expected effects on guide outfitting along the transmission corridor, consultations there will focus more on ensuring licensees are involved in range and wildlife protection measures. Mitigation for controlling cattle movements and access to range areas, as described in Section 5.3.4, will help control access by hunters, while also controlling wildlife movements along the transmission ROW. Strict hunting bans will be implemented for mine employees during the construction and operations phases of the mine, thereby reducing potential hunting effects, and minimizing the threat of competition for game to guide outfitters and their clients.

Characterization of Residual Project Effects The land area lost to the no-hunting zone at the mine site represents about 0.3% of the RSA land area and less than 1% of guide outfitter territories. The contribution of the mine site area to big game harvest is considered minor, with no recorded kills of compulsory inspected species (cougar, Grizzly bear, goat, sheep) in the last 14 years and only a small share of the LSA harvest of 184 animals in 2005 (Packham, pers. comm.). In 2005, the LSA accounted for 2.7% of the RSA big game harvest. The Ministry of Environment’s issuance of quotas and tags for limited entry hunts (e.g., moose) will not change with the Project. With the mitigation strategies, the effect on wildlife habitat and populations is expected to be low and extend only to the LSA. Resident hunters and guided non-resident hunters will have to make small spatial adjustments to their hunting behaviour to avoid the no- hunting zone. This transition will occur during construction and remain throughout the full operating period through to closure when the remediated site will be re-opened for

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hunting. The overall hunting activity level as measured by kills, hunter days, expenditures and net economic value is not likely to change from the baseline.

Cumulative Effects The Project and residual effects on hunting will be localized around the mine site and to a lesser extent along the transmission corridor. There will be no spatial overlaps with current and future mining projects in the LSA and for the greater part of the RSA. Cumulative effects between the Project and logging activity linked to the MPB can reasonably be expected, but the contribution of the Project to those effects will be minor and for the most part beyond measure. As noted in both the forestry section of this chapter and the wildlife volume, the MPB is exerting considerable change on forest health, composition, wildlife habitat and recreation values (i.e., roaded versus non-roaded areas). The Ministry of Forests’ recent uplift of the AAC by 2.5 Mm3 in the TSA is targeted in areas west of the Fraser River, but the quotas, licensees and harvest plans related to those uplifts have yet to be determined. Discussions between licensees and Taseko have provided a rough idea about where harvest areas and road infrastructure are likely to develop. The expanded rate of harvest will create new roads and access opportunities for hunters, but important species such as moose are already limited entry and will be controlled by the Ministry of Environment in line with their expectations for sustainable harvests. In this context, the MPB and related forest harvest activity is likely to have a considerably larger effect on hunting opportunities such that Project effects cannot be observed.

Determination of Significance The mine footprint will only remove a small area from hunting use. In addition, the transmission line ROW is not expected to alter hunting patterns greatly as no new access roads will be created. Maintenance or installation of range barriers for ranching operations will also help limit access along the ROW. Hunting by contractors and operational employees will be prohibited. Wildlife distributions and abundance are also not expected to change substantially due to a suite of mitigation measures that will be implemented by Taseko. Given the proposed Project design and mitigation measures, and the limited spatial extent of effects on recreational and guided hunting, the Project should not result in significant negative effects on hunting.

Confidence in Predictions The understanding of the hunting baseline in the study area is excellent as both resident and non-resident hunting activity and game harvest is very closely tracked by the Ministry of Environment. The exact location of all kills is also known. The implications of access road, mine site and transmission corridor development for the species found in the study area is well-documented in the provincial experience. Similarly, the mitigation measures for minimizing wildlife disturbance, controlling access and enforcing no- hunting rules for workers have been applied at other mines in the province to good effect. For these reasons, our confidence in these effect predictions is high.

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Follow-up and Monitoring Regarding commitments made to guide outfitters, Taseko will report to EAO regarding compliance prior to start of significant surface disturbance during construction, prior to commencement of full scale commercial operation, and one year after the start of full scale commercial operation.

5.3.6 Public Recreation

5.3.6.1 Scope of Assessment for Public Recreation The PRS requested that public recreation activities, specifically canoeing/kayaking and backcountry recreation, be considered in the effects assessment, including the value of recreation in both the proposed Project development area and in the broader area. Effects of the Project on park and recreation features and recreation opportunities were also to be assessed. The key issues for public recreation are the loss of Fish Lake and the adjoining recreation site, as well as changes in the availability of quality of recreational activities as a result of the Project. Changes in visual quality will play a role in how different recreational users will respond to the mine development and operations (this effect is discussed in more detail in relation to tourism in Section 5.3.7). The Cariboo-Chilcotin has large tracts of wilderness and semi-wilderness settings that are used by recreationists in the local area and region. Loss of features or sites due to the Project could alter recreation use patterns and recreation values. The measurable parameters used to assess the Project’s effects include overlap with park features and facilities, number of user days, expenditures and net economic value. The majority of effects on public recreation will occur during site clearing for Project construction and will remain through the mine’s operating life. Fish remediation plans for the mine pit may generate positive effects post-closure. The LSA for the assessment of public recreation consists of the Project footprint, with an emphasis on the mine site and buffer where there is a direct loss of recreation area. The transmission corridor may also affect public recreation activities. The RSA consists of the Cariboo-Chilcotin region (see Table 5-4). For public recreation, a significant effect can often be measured in terms of concepts like limits of acceptable change and carrying capacity. These planning tools do not purport to prevent human-induced change but rather focus on deciding how change will be managed and the actions needed to control it. These concepts are almost always defined in terms of the local context because stakeholders are asked to determine what is acceptable. Thus, there is an inherent level of subjectivity involved and no hard and fast rules for how changes to the recreational experience are to be managed, and what may be termed significant.

5.3.6.2 Effects Assessment Methodology The public recreation assessment consisted of three components. First, a spatial analysis was completed to determine the overlap between the Project footprint and existing land use and recreation zones. The analysis was also used to identify how the Project would alter the Recreational Opportunity Spectrum (ROS) and affect trails and recreation sites

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used by the public. The overlap areas provided a broad indication of affected user groups and activities. Second, RSA baseline data was compiled using British Columbia Parks and Ministry of Tourism, Sports and Arts publications. Interviews were also conducted with ministry representatives to identify the types of activities, participation levels and locations in the LSA. The economic value of public recreation in the RSA was based on a review of four different government publications listed in the reference section (BC Parks 2007; Jack and Levey 2003; Economic Planning Group 2003). Lastly, representatives of government ministries and the public recreation sector were interviewed to determine Project effects.

5.3.6.3 Baseline Conditions for Public Recreation In the RSA, most recreation activity is outdoors due to the proximity to an abundance of natural settings and opportunities. Because the vast majority of land in the RSA is publicly owned, most outdoor recreation depends on access to Crown land for recreational opportunities, infrastructure and access. The spatial distribution of ROS33 classes (Table 3-38), shows the LSA to be a combination of semi-primitive and roaded resource land, with no primitive lands. The mine site and mine site buffer are less developed than the areas surrounding the transmission line and access road. The parks closest to the LSA are Nuntsi Park, Big Creek Park, Ts'ilos Provincial Park and Bull Canyon. Nuntsi and Big Creek parks are wilderness areas and do not provide overnight camping or day-use facilities. In 2006, attendance in these parks was 2611 overnight parties and 12,504 day-use parties. The total gross income generated for the summer of 2006 equalled about $34,000. MTSA manages approximately 39 recreation sites with over 1740 campsites in the RSA. Twenty four of the sites offer boat launch infrastructures. In the LSA, a total of seven recreation sites (including Fish Lake) with 23 campsites are available for public use. Non-consumptive recreation activities in the RSA include camping, hiking/backpacking, nature study/wildlife viewing and trail riding. Reliable estimates of public recreation use in British Columbia and in the region are not available. Using recreation research from coastal British Columbia, about 2.5 million user days for outdoor recreation activity other than hunting and fishing are estimated in the RSA. However, a considerable proportion of this activity is nature study close in to urban areas. When this is excluded, an estimated 653,000 user days (other than hunting, fishing and nature study) remain. The net economic value of this use is calculated to be $6.2 million. Apart from fishing and hunting, recreation use at and around Fish Lake is negligible due to the remote conditions and lack of compelling recreational features. As noted in the fishing section, the site, which was cleared in 1992 and opened in 1998, has a relatively short operating history. No records are kept on recreation site use, but the majority is believed to be by anglers and hunters (Harris and Eastwood, pers. comm.). Users come mainly from within the region, the Lower Mainland and Washington State during the

33 The ROS represents mixes or combinations of settings, and probable experience opportunities which have been arranged along a spectrum or continuum. This ROS continuum is used by the Unites States Forest Service (USFS) and has been adopted to help formulate the British Columbia Forest Service (BCFS) ROS inventory. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 5-46 Prosperity Gold-Copper Project

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May to October. German visitors are also known to have used the site. Few winter activities occur in the LSA (Doug Harris, Noelle Kekula, pers. comm.). In the adjacent Taseko lakes and river, kayaking/canoeing, rafting, mountain biking and backpacking take place, and although the use numbers are low in comparison to total RSA recreation activity, users have a very strong attachment to this area and the experiences it provides. Canoe users from the Williams Lake area will paddle the Lower Taseko Lake and Taseko River periodically but there are better lake loops in the region, the most popular being Bowron Lakes and Tweedsmuir Park (Bryan, per. comm.). Kayaking is popular on lower Taseko Lake, Taseko River and occasionally Fish Creek during spring freshet (Savard, pers. comm.). An estimated 40 to 50 paddlers from the Williams Lake area would use the Taseko River during the spring and summer seasons and when other paddlers from around British Columbia are considered this use would probably double (Savard, pers. comm.). One of the most popular trips on the river is a multi-day excursion from Davidson Bridge down to Alexis Creek. The attraction of this trip, apart from a variety of Class 2 to 4 waters, is that once departed from the put-in at Davidson Bridge there is practically no visible human activity along the way until take- out at Alexis Creek. Mountain biking and backpacking are the two other activities that occur along Lower and upper Taseko Lake. There is an old access road up the west side of the lake that is accessible from the Elkin Creek Road but the majority of use is via the existing road on the east side of the lake through Beece Creek and onto the south end where road access ends (Noel Kekula, pers. comm.). There is also a horse trail closer to the lakeshore running up the east shore that is very popular with mountain bikers. The main attraction of Taseko Lake is that once at the south end, there is a campsite and then numerous trails that backpackers and bikers can follow on multi-day trips through Warner Pass and into the Goldbridge area (Savard, pers. comm.). Hundreds of users are believed to traverse Warner and neighbouring passes (Grant, Tosh) from south Taseko Lake annually. Winter activities are not that prevalent in the LSA. The ski touring window is fairly short and conditions are often colder, windier and more exposed than other areas in the RSA (Savard, pers. comm.). There is also a small recreation site at Brigham Springs at the east end of the proposed Transmission ROW. Attendance records are not kept for this site and use is believed to be very low (Jennifer Eastwood, pers. comm.). The Canoe Creek Indian Band has a management agreement to maintain the site.

5.3.6.4 Assessment of Effects on Public Recreation

Project Effects Although the Project will have a direct effect on public recreation at the mine site due to the loss of the Fish Lake recreation site (and access to the surrounding area), the effect on recreation and tourism in the LSA and RSA will be negligible. Other than along the access road (at Hanceville) and at Fish Lake, there are no recreation features, sites or high use areas within Project components. However, there is occasional use of Fish Creek for kayaking and this opportunity would be lost. The Project does not substantially alter the distribution of recreation land class as defined by the Recreation Opportunity Spectrum (see Table 3-38). There is a loss of what is

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considered semi-primitive recreation land at the mine site, but access to and land designation in proximity to other Project components will not change. The activity opportunities represented can be readily replaced elsewhere in the Cariboo. Excluding hunters and fishers, other visitor numbers in the LSA are low. Other lakes in the LSA provide equal opportunity to recreate. There is the possibility that with the loss of the Fish Lake recreation site, there will be more dispersed use on Crown land in the future. This is already happening in some areas and may increase with fewer facilities (Jennifer Eastwood, pers. comm.). However, proposed mitigation under the Fisheries compensation Plan (Volume 3, Section 8) may result in more and better recreation site access than is now the case. A successful replacement fishery may also have the effect of increasing use over the baseline, given that fishing is often a secondary activity for primary activities such as hiking, trail riding and canoeing/kayaking. For backpackers and mountain bikers using the Taseko lakes and river system the Project is not expected to substantially affect either the nature or the quality of the current experience along those waterways. Users shuttling back and forth to Taseko Lake and put-ins on the Taseko River will notice more traffic on Taseko Lake Road during construction and operations. The Project might be expected to affect visual quality as part of the recreation experience for users in the vicinity of the transmission line and the mine site. The transmission ROW does not pass through visually sensitive areas as determined by the Ministry of Forests’ Visual Quality Objectives (Table 5-165). Only 27 ha of the 5070 buffer area is designated retention or partial retention forest cover. However, roughly 29% of the mine footprint and buffer lay within retention or partial retention designations owing to the presence of the Fish Lake recreation site. Once site clearing begins during the construction phase, the recreation site will be closed and use of the Fish Lake area for recreation purposes will diminish greatly, if not cease.

Table 5-15 Area Summary of Visual Quality Objectives within Project Components

Mine Mine Transmission Guide-Outfitter Footprint Buffer Buffer Visual landscape inventory–retention 47 2,322 13 Visual landscape inventory–partial retention 1,333 1,415 14 Visual landscape inventory–modification 3 663 303 Visual landscape inventory–not visually sensitive 111 350 0 Visual landscape inventory–N/A 2,925 8,852 4,740 SOURCE: Jacques Whitford AXYS Ltd. Environmental GIS Analysis

Another aspect of visual quality will be the effect on recreationists who will be viewing the mine area from afar. Taseko has undertaken a visibility analysis of the main embankment of the TSF, which will be the most visible site feature because of its breadth and height (Figure 5-3). Known tourism facilities, lodges, population centres and travel routes were overlaid to see what facilities and routes would fall within that area from which the TSF at closure would be visible. The analysis showed that the TSF would not

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be visible for the large majority of recreation use sites. Users of Nuntsi or Big Creek Parks and the majority of Ts’yl-os Park users will not have a view of the TSF. Recreationists who venture into the extreme northwest corner of Ts’yl-os will be able to see the facility from across the valley. Users in the upper reaches of lower Taseko Lake will also be able to see the TSF 15 km in the distance. Backpackers and mountain bikers who are using the horse trail along the lake or the road will be in the viewshed at certain times along the way. Main lakes in the vicinity, including Konni, Big, Big Onion and the lower half of lower Taseko, existing travel routes, including the road network along the Taseko River and Beece Creek areas, and all recreation sites in the vicinity (Davidson Bridge, Vedan, Chaunigan) will not be in the viewshed. The two priority Taseko River Corridor sections identified in the CCLUP’s Recreation Corridor Management Strategy (Taseko Lakes to Nemiah Valley Road and Davidson Bridge to Chilco-Taseko junction) are not in the viewshed.

Light Visibility Exterior lighting at the mine site will be installed for the safety of site personnel. The current design calls for hooded, directional lighting for ground traffic. Detailed engineering will incorporate best management practises (e.g., BC Hydro’s Powersmart program) for lighting that minimizes energy consumption while maintaining a safe working environment. In response to an expressed concern, a simple assessment of light visibility from nearby residences as a potentially significant issue was undertaken. Using Google Earth as the framework for the analysis, known elevations of the proposed plant site and estimated elevations of any residences within a 25 km radius of the site, it was determined that the line of sight from any residence within a 25 km radius of the plantsite is in excess of 150 m above the plantsite. As there will be no lights directed up, it was concluded that in order for there to be any “light visibility” there would need to be some atmospheric condition that provided sufficient reflection while still permitting a minimum visibility of 10 km. That very same atmospheric condition that would permit sufficient reflection would most likely preclude 10 km of visibility. It was concluded that this would be an extremely rare condition and therefore no further analysis is warranted.

Mitigation Mitigation strategies for hunting and fishing will help offset the loss of public recreation opportunities at the mine site. The no fishing and hunting policy for employees and contractors should help with managing possible over-use of recreation sites and dispersed use on Crown land in the LSA. If consultations with local stakeholders indicate that employee use of the backcountry may create conflicts with existing users, then this policy could be expanded to include off-road motorized uses of local trails and roads. These policies would apply to employees residing on-site. Plans for on-site housing for all employees and bus transportation for all employees arriving and departing the site will limit motorized recreation use in the LSA. To control dispersed use and compensate for the loss of Fish Lake, additional recreational sites will be considered as part of the Fisheries compensation Plan (Volume 3, Section 8), most probably at lakes selected for transplant or replacement of Fish Lake stock. Agency consultation in the Fisheries compensation Plan should include MTSA for input on sites most likely to offset displaced recreation use at Fish Lake. The ministry has previously

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assessed several lakes in the area for recreation site upgrades and these should be considered in the context of other fisheries compensation and mitigation objectives. Finally, Taseko will work with Tolko Industries, the Chilcotin Forest District and recreation groups on managing visual quality of the Project. In addition to the viewshed analysis already completed, field-checking visual quality objectives at the mine site to account for the expected decline in recreation activity could contribute to a new visual resource inventory and potential adjustment of forest licensee forest stewardship plans or site plans (Bob Osmachenko, pers. comm.).

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Characterization of Residual Project Effects With the proposed mitigation programs, opportunities for public recreation within the LSA are not expected to change, except in the active mine area. Opportunities to use Fish Lake and Fish Creek for paddling will be lost. However, as the number of user days represented is believed to be in the low hundreds, a very small proportion of total recreation use is being affected. The ability to continue to pursue various recreational activities elsewhere in the LSA (including within the mine buffer) and the RSA should not be affected, while the creation of new recreational amenities outside the mine area will replace the existing recreation site on Fish Lake. In total, the number of users, user days and net economic value of public recreation in the LSA will not be altered by the Project. Visual effects of the mine and associated infrastructure may affect the quality of the recreational experience for some users, but this effect will be limited to the viewshed for the mine which does not extend to the major use sites, recreation features or access routes, except for certain segments of the road and horse trail on the east side of Lower Taseko Lake. Positive and negative effects on recreation use will persist for the life of Project and until the site is successfully revegetated (i.e., approximately 80 years). However, as the mitigation plan for recreational use, the fisheries compensation plan, and the site reclamation plan will eventually restore many of the natural values to the site, all detrimental effects will be reversible.

Cumulative Effects The nature of recreation effects will be localized at the mine site and therefore will not overlap with other existing and potential mining projects in the Cariboo. The one exception to this might be Galore Resources Inc.’s possible development of its Taseko property south of Taseko Lake. If developed during Prosperity’s operating lifetime, and if provisioned from Williams Lake, two mines would be in close proximity to a low use but nevertheless highly valued recreation corridor along Taseko Lake and the Taseko River. The same Project effects of concern, namely use of the area by employees, visual effects, and traffic-related disturbances, would be incrementally larger, but by how much and during what time period are not known. The cumulative effects of increased logging stemming from the MPB are more difficult to project. The expansion of the road network will undoubtedly expand access for, and use by, hunters, fishers and motorized recreation groups, while eroding the unroaded recreation areas that non-motorized use groups (kayak/canoe, hiking, backpacking) place a premium on. They are likely to be the most affected by the MPB's destruction of forest cover and increased road network and will likely see their options for accessing viable use areas decline. One result will be increased use of parks, protected areas and Crown land areas where there is less opportunity for conflict with other users. In this context, the Project’s contribution to cumulative effects in the negative appear to be minimal. With new recreation facilities proposed in the mitigation program opportunities to enhance the recreation experience would be possible and could help offset the cumulative effects of the MPB in the LSA.

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Determination of Significance The Project may displace some recreation activity by boaters, hikers and those engaging in nature or wildlife viewing, but based on discussions with government agencies and some user groups, use levels are very low and there is believed to be ample capacity at other recreation sites and parks in the LSA. Based on the viewshed analysis, visual quality should not be a factor for most users. It is true that the gradual loss of wilderness conditions that the mine will contribute to is an ongoing concern for recreation users. Nevertheless, the Cariboo-Chilcotin Land Use Plan and subsequent SRMPs have provided for the encouragement of industrial development in the region along with sustaining recreation opportunities. The availability of large parks and protected area has protected most of the outstanding recreational features for non-motorized recreation. As long as the proposed mitigation strategies are implemented and minimize disruptions to recreation groups, the effects on public recreation are predicted to be not significant.

Confidence in Predictions Public recreation use in the LSA is low, in large part because of the distance to population centres at Williams Lake and Highway 97 communities. The availability of substitute recreation areas and experiences, the distance and/or lack of sightlines between the Project and existing recreation corridors and zones (other than Fish Lake), and mitigation measures to replace recreation sites and amenities, manage the behaviour of mine contractors and employees along the access road and manage visual quality give us a high level of confidence in our effects predictions.

Follow-up and Monitoring Commitments made to MTSA and MOE for replacement of recreation infrastructure will be monitored prior to start of significant surface disturbance during construction, prior to commencement of full scale commercial operation, and one year after the start of full scale commercial operation. Similarly, visual quality inventories at the mine site undertaken in cooperation with forest licensees and the Ministry of Forests and Range will be monitored prior to significant surface disturbance during construction.

5.3.7 Tourism

5.3.7.1 Scope of Assessment for Tourism The PRS requested that tourism activities, tourism features and the value of tourism in both the proposed Project development area and in the broader area be assessed. This section of the report deals only with commercial activities other than fishing and hunting, purchased by non-resident visitors. Effects on recreational, hunting and fishing activities by local residents are considered in other sections of this chapter. Effects on tourism can arise from changes to access or availability of natural resources that underlie the visitor experience, baseline environmental conditions, or visitors’ perceptions of the study area as a destination prior to and during their travel into the region. As with recreation, the key issues for tourism are the loss of the mine site to operators who have commercial recreation tenures, access to licence areas in other parts of the

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Project footprint, loss of tourism features, and effects on the visitor experience due to changes in visual quality and or other environmental issues such as traffic conditions. The measurable parameters used to assess the Project’s effects include visitor use and expenditure estimates, operator inventories and revenues, and net economic value. The majority of effects will occur during Project construction and remain through the mine’s operating life. Remediation plans for the mine pit are expected to return the mine site to useable lands and water bodies for recreation and other uses, and may generate positive effects for tourism post-closure (e.g., enhance boating opportunities). The LSA consists of the Project components, with an emphasis on the mine site and buffer where there is a direct loss of Crown land for tourism use. The transmission corridor may also affect tourism activities in the case of visual quality. The RSA consists of the Cariboo-Chilcotin (see Table 5-4). Thresholds for determining significance of effects to tourism are similar to those discussed for recreation. In brief, levels of acceptable change are subjective models that can be useful for assessing post-mitigation effects. This analysis would look to losses in net economic value in the RSA as a test of significance.

5.3.7.2 Effects Assessment Methodology The tourism (i.e., commercial recreation) assessment consisted of three components. A spatial analysis was used to determine the overlap between different components of the Project and existing tourism zones as stipulated in the CCLUP and the SRMPs. The overlap between Project components and backcountry recreation range tenures was also identified. These are shown in Table 5-6 and discussed in the Land Use and Tenures section. RSA baseline data were compiled using BC Stats, Tourism BC and Ministry of Tourism, Sports and Arts publications. Time series were analysed for a number of key indicators, including room revenues, so readers have an idea of overall industry trends. An inventory of tourism operators in the LSA was undertaken and their websites reviewed to determine the types of visitors being drawn to the area and the activities they are participating in. The economic value of public recreation in the RSA was based on a recent study commissioned by CCBAC and undertaken by the Council of Tourism Associations. This study provided good baseline data and identified tourism employment in the Williams Lake and Chilcotin areas. Representatives of government ministries and the tourism and recreation sector were interviewed to determine Project effects.

5.3.7.3 Baseline Conditions for Tourism The tourism economy in the RSA is dominated by touring travellers who arrive and depart the region along Highway 97. Many travellers are en route to other destinations, including Alaska, while some are attracted by the region’s wilderness, lakes, rivers, scenery, wildlife, local culture and ranching experiences. The more remote Chilcotin attracts mainly outdoor adventure enthusiasts who hunt, camp, fish, trail ride, hike, boat, snowmobile and enjoy the nature and wildlife that the area has to offer. The Chilko Resorts and Community Group has stated that local wilderness lodges and other tourism businesses provide most of the jobs and represent the dominant local economy.

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Room revenues are one measure of overall tourism activity. In the RSA, room revenues have increased steadily during the six-year period ending in 2005, mainly because of price increases. The actual number of facilities and rooms did not change substantially. In the LSA, 18 accommodation providers include 1 hotel, 2 motels, 5 lodges, 1 cabin, 6 guest ranches and 2 Bed and Breakfasts (B&Bs) (Table 5-39). Accommodations include over 130 units with a variety of fees ranging from $55 a night for a rustic cabin to $360 a night for an all inclusive package. The closest accommodation to the mine site is approximately 10 km to the south (Reuter) while facilities at Big Lake (Bed and Breakfast) and into the Nemiah Valley (Chaunigan Lake Lodge and Elkin Creek Guest Ranch) are from 15 to 35 km distant. The only accommodations near the transmission corridor are at Big Creek. The estimated room inventory on the Nemiah Valley Road and Taseko Lake Road is 40 rooms. With the possible exception of the hotels, accommodation providers also offer recreation activities and associated services. Many of the lodges and ranches provide multi-day packages. Fresh water fishing and guide outfitting (assessed elsewhere in this volume) are the two primary activities. Popular non-consumptive activities include river rafting and trail riding. There are another 30 adventure tourism operators in the RSA that provide guide outfitting (17), river rafting (8), freshwater fishing (1), hiking/nature viewing (3) and cycling (1). The overlay analysis (Table 5-37) indicates that there are only two tourism facilities (other than fishing and hunting guide operators) within or near Project components. The two facilities are located on the access road (Lees Corner and Scum Lake). The only two tourism features within the boundaries of the Project components were the Fish Lake recreation site and Kloakut Lake (transmission line). Also identified were 13 commercial recreation tenures (held by five licensees) that are partially affected by the Project footprint (Table 5-40). There are also four applications for commercial recreation tenure on file with the ILMB, all for guided freshwater recreation. Based on visitor studies undertaken over the last 10 years for the region, the visitor market is estimated to be 50,000 for the Chilcotin area (i.e., excluding the Cariboo/Williams Lake area). Estimates for the economic effects of RSA tourism in 2005 include room revenues ($23.6 million), total visitor spending ($130 million), employment (2345 person years), employment income ($56.9 million), government revenues ($47.8 million) and net economic value ($9.3 million). The MPB is expected to present considerable challenges to tourism operators in the Chilcotin that far exceed the potential effects of the mine. The effects on the forest land base are occurring at such a rapid rate that operators have had little time to react or even plan for long-term solutions. Sometimes the effects appear suddenly in the front and mid- country, along major access routes and next to private property. In light of the current timber uplifts and forest licensee pursuit of the remaining volumes of merchantable wood, there is the belief management of tourism values by government is minimal (Van Es, pers. comm.). In a 2005 research study on beetle effects in the Chilcotin, the West Chilcotin Tourism Association (WCTA) stated that outdoor recreation values could be effectively managed in beetle-attacked forests, but that the real threat to tourism activity was accelerated harvests and new infrastructure to carry out that harvest (WCTA 2005). The loss of unroaded and unlogged expanses was seen as potentially devastating to outdoor tourism operators.

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Local groups such as the CCBAC and WCTA, in cooperation with the Council of Tourism Associations, are pushing forward strategies to diversify the industry with provincial-federal beetle funds. These initiatives are still in the planning stages and at this time it is unknown how effective they will be in offsetting MPB effects. Between these efforts and the MPB itself, there is a high degree of likelihood that the tourism sector in the region today will be much different in eight to nine years when the epidemic has subsided. The Tsilhqot’in and Northern Secwepemc nations are also actively engaged in tourism planning and development, as part of their participation in CCBAC planning and through their own initiatives. All six Tsilhqot’in communities have prioritized tourism development and although their current involvement in tourism business is limited, several tourism attractions are expected to be in place when the Winter Olympics take place in 2010 (Read and Associates and Stonefield Consulting 2007). The Northern Secwepemc have a greater presence in the tourism sector with a small cluster of band- owned and member-owned businesses in the Williams Lake area, but like the Tsilhqot’in have ambitious plans to develop a number of tourism attractions and products (Robertson 2007). A secondary effect of accelerated MPB harvests will be greatly increased truck traffic along routes serving harvest areas leading up to the climax stage (i.e., around 2015), then greatly reduced traffic as the AAC declines to long-term sustainable levels thereafter.

5.3.7.4 Assessment of Effects on Tourism

Project Effects Once the mine permit is issued, five licensees holding seven separate licences with commercial recreation tenures will be affected by Project components. As shown in Table 5-16, three licences will lose access to that part of their tenured territories within the mine site, while four will be affected by the transmission line. One licensee (Adrenalin) has only a one hectare overlap while three others are affected on just more than one percent of their total licence areas. The other licensee (Collins) has about three percent of his tenure area overlapped by the mine site and the transmission line. The two licensees most affected by the overlaps (Collins and Reuter) are also licensed guide outfitters (see Table 5-32). The guide outfitting licences are a different tenure than the commercial recreation tenures discussed here.

Table 5-16 Commercial Recreation Tenures Overlapping Project Components Licensee Tenured Activity Overlap Area (ha) Total Intensive Licence Mine Trans. Use Sites Site ROW Area Brauns Hiking, nature viewing, trail riding 403 1,577 179,001 0 Pack trips, hiking, wildlife viewing, 1,598 - 128,720 0 Reuter x-country skiing Collins Hiking, nature viewing, trail riding 1,906 966 91,723 0 Big Creek Lodge Trail riding - 632 46,284 0 Adrenalin Mountain - 1 95,253 0 Adventures Multiple use adventure sports NOTE: Reuter holds two separate licences. The table presents aggregate amounts SOURCE: Jacques Whitford AXYS Ltd. GIS Analysis, Appendix 5-A: Table 5-20

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Outside of the mine site, the Project should not substantially affect the access to, or availability of, the land base for tenured operators. The access road buffer intersects only 11 ha of two tenured operators. According to MTSA, no licensed tourism or commercial recreational operator has an intensive use site within the footprint of the mine site, transmission line or access road (MTSA 2006). The majority of capital invested in the LSA tourism industry is in accommodation and food/beverage service facilities. Most revenue is generated during the peak summer season with some operators catering to shoulder season activities including hunting and fishing. The high elevation lodges at Chaunigan and Elkin lakes are closed in the winter, as is Taseko Lake Lodge. Clients of these lodges use the Nemiah Valley Road as the main access into the area but the increased traffic is not expected to affect business (Scruton, pers. comm.). Improvements to the Nemiah Valley Road to accommodate truck traffic would actually improve existing safety standards for visitors and open up the possibility of winter operations. The analysis of transportation (Volume 6, Section 3) outlines the nature of these effects and proposed mitigation. Guests of the lodges and guides are not expected to be affected by the visual or air quality effects of the mine. The presence of the mine may result in reduced use in the immediate area for commercial recreational purposes but the inconvenience should be minimal. A comparison of Taseko’s visibility analysis of the TSF’s main embankment facility with lodge locations and intensive use commercial recreation sites documented by the Ministry of Tourism, Sport and Arts shows no overlap (MTSA 2007). As noted in the recreation section, the analysis also showed that the TSF would not be visible from any recreation use sites or major access routes, and from all area lakes (except for a small land area on either side of mid-Lower Taseko), as well as parks, saving a small remote corner of Ts’il-os Park. However, it is recognized that activities like trail riding and mountain bike touring can occur over a variety of landscapes and it is possible that participants may come into the mine viewshed at some trail positions. The transmission line will be visible along its length and even though the Ministry of Forests has left most of the corridor unclassified for visual quality, it is recognized that visitors to Big Creek and rafting participants on the Fraser River may be affected. It is unlikely the visual effects associated with the lines in these two areas can be managed beyond design and realignment in specific areas to minimize effects on local residents. The extent to which this will be a factor in the business and revenue base of tourism operators is unknown. As noted in the effects on the acoustic environment (Volume 4, Section 3), the Project will affect noise levels, with sources at the mine site and along the Nemiah Valley Road proposed for mitigation. Again, the distance of the lodges and high use tourism sites from the mine, and the absence of accommodations along the access road means that noise will not be a major issue. However, tourism facilities on Highway 20 may be affected. The construction and operation of the mine will have a positive effect on accommodation, food, beverage and miscellaneous services such as rentals due to business travel in the RSA (Williams Lake) and the LSA. This has already benefited several operations during the exploration and pre-development phases by giving accommodation providers additional revenues especially outside the peak summer and early fall months. The Project will affect tourism activity within Project components, but no effect on tourism in the RSA is anticipated. Even though, as outlined above, there will be some negative aspects to the tourism experience, the lodges and backcountry operators will be

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far enough away from the mine and the transmission line as to make these effects marginal at worst. Road improvements and the potential for increased mine-related business could result in increased revenues for operators in the LSA.

Mitigation Three forms of mitigation will help minimize the Project effects on tourism. It will be necessary to have discussions with commercial recreation licensees in the mine site area who will no longer have access to that land. For licensees who also hold other forms of Crown tenure (e.g., guide outfitting, range) discussions would also be held. For tourism operators not directly affected by the loss of land access, including accommodation providers along Nemiah Valley Road, outdoor adventure guides around the mine buffer and operators along the transmission line, notably at Big Creek, Taseko will work with stakeholders to ensure their input into a number of mitigation strategies discussed elsewhere in this report: • Acoustic Environment (Volume 4, Section 3)—A public notification procedure, daytime scheduling of truck traffic and proper maintenance standards on all vehicles will ensure traffic-related noise effects are kept to a minimum. The covering of conveyor and processing equipment and routine roadway and mobile equipment maintenance will minimize mine site noise. • Atmospheric Environment (Volume 4, Section 2)—Dust suppression and other measures mainly related to equipment operation and maintenance to minimize criteria air contaminants and greenhouse gasses. • Transportation (Volume 6, Section 3)—Employees to be bussed to and from the mine to minimize vehicle traffic, traffic scheduling to avoid peak periods, new signage to alert motorists, radio control of all trucks and busses, road upgrades to widen and eliminate and blind corners, regular road reporting and use of experienced drivers. Efforts have been made to incorporate local resident concerns about the visuals of the transmission line through Big Creek. It is believed that the design and placement of the line that minimizes effects on residents will have similar effects for visitors. Finally, procurement agreements will be considered with local area operators for the purchase of accommodation, food and beverage, and other services during construction and operations to help diversify their revenue base. Although on-site accommodation is planned for all construction and operating personnel, there may be an ongoing demand for off-site services to accommodate management, contractors, consultants, and other mine guests. Should First Nations build their capacity for tourism accommodation and services, they would also stand to benefit from this mitigation. More details on procurement policies are outlined in Volume 6, Section 2 under Regional Economic Development.

Characterization of Residual Project Effects With the mitigation strategies, the magnitude of negative effects on tourism in the LSA should be low, that is to a level where operators are not experiencing any loss of clientele or income. The loss of land at the mine site affects between one and three percent of total licensee operating areas. These licences support about 1000 client days and total output of roughly $76,000 annually (equivalent to 2% of the LSA total tourism output). The

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availability of comparable experiences in the remaining licence areas should allow licensees to continue uninterrupted operations. Land alienation will occur prior to construction and continue until post-closure when the mine site is remediated and again available for commercial recreation use. Other tourism operators could be affected by visuals, noise, dust and traffic from the Project but considering their distance from the mine area and proposed mitigation (including road improvements), the overall effects are not significant. Collectively, these effects will begin with and reach their peak during the construction phase when traffic, dust and noise are at their greatest, tapering slightly to more stable levels during operations, then reaching a final peak during closure. The visual effects for the transmission line will be reversed at de-commissioning, while at the mine site they are more likely to persist well into the post-closure phase until the mine pit is full (some 25–30 years after mining ceases). Most effects are considered reversible.

Cumulative Effects As with recreation activity, the spatial effects of tourism from the Project will extend to the LSA and more specifically to the mine buffer area and to a lesser extent along the access road and the transmission line. Interaction and cumulative effects from other existing and most potential mining projects is not anticipated. However, if Galore Resources Inc. were to develop its Taseko property south of Taseko Lake during Prosperity’s operating lifetime, then cumulative visual effects might occur. There may also be cumulative effects from logging associated with the MPB. The effect associated with the loss of forest cover and new road access into previously unroaded areas is expected to have a major effect on how tourism operators manage their visitors and the visitor experience. The contribution of the Project effects, which will be largely limited to the LSA, to the pervasive, region-wide and unavoidable effects of the MPB will not be substantive on a cumulative basis. Project-related noise, dust and traffic on the Nemiah Valley Road during construction and operations may also act cumulatively with logging truck traffic needed to take logs to processing facilities in Williams Lake. However, MPB logging is almost at its peak today and will be on a downward trend when the Project reaches the operations phase. Mitigation for these Project effects would also apply to cumulative effects and may be enhanced by joint planning with forest licensees and their contractors.

Determination of Significance The Project will displace some activity by licensed commercial backcountry recreation operators, create some inconvenience for clients of lodges and accommodation facilities in the Nemiah Valley, and alter the visual landscape along the transmission corridor and near the mine site, possibly affecting the experience of tourists using these areas. The majority of visitors to the LSA are in fact fishers and hunters and the significance of effects on these users has been addressed in previous sections of this chapter. When considering the room inventory in the LSA (approximately 40) and vacancy rates (50% in summer, mainly closed in winter), and in accounting for fishing and hunting clientele who represent the bulk of visitors, the quantum of visitor days that will be potentially affected by the Project would be less than one thousand (compared to approximately 50,000 for the Chilcotin tourism area). The total number of guided visitor days by registered commercial recreation licensees at about the same, 1000 days (see Table 5-41).

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An effect on a visitor cannot be interpreted as a loss of a visitor to the local tourism economy. If that were the case, there would be no tourism facilities near mine operations, when we know there are many areas in British Columbia where the industries co-exist under conditions similar to those proposed for the Project. For example, there are several successful Bed and Breakfasts, resorts and guest ranches in close proximity to Highland Valley Copper. The Sundance Guest Ranch is one of the more successful guest ranches in the Gold Country region despite the fact that it is on Highway 97C, the same route as concentrate trucks going to and from CP and CN load-out facilities in Ashcroft. The industry has been constantly adapting over the years to modifications in the landscape due to logging and now the mountain pine beetle and they would likely adapt to the mine as well. To make this adjustment as smooth as possible, it will be important to ensure proposed mitigation measures are implemented to minimize inconvenience and disruption to clients of these operators. Agreements to utilize the services of local accommodation providers for mine business will contribute to this transition. The Project is not expected to alter the underlying tourism values or visitor interest, and operators are unlikely to see a decline in the number of clients because of the Project. The effects in the LSA and RSA will not be significant.

Confidence in Predictions How visitors respond to mining activity, how they actually alter their trip planning and spending and how that translates into the net economic value of tourism to an economy is an imprecise science. The research is not clear, for example, on how traffic conditions, power lines and distant views of mines affect visitor behaviour, even for those who are seeking an outdoor wilderness experience. There is ample evidence in this province in regions like the Northwest, the Okanagan and the Kootenays that tourism and accommodation providers can successfully co-exist with mining and in fact prosper. Based on our understanding of these comparable areas, and our discussions with lodge operators near the mine site, we are moderately confident of our estimation of tourism effects in the LSA and RSA.

Follow-up and Monitoring Commitments made to MTSA for replacement of recreation infrastructure and discussions with affected commercial recreation licensees will be monitored prior to start of significant surface disturbance during construction, prior to commencement of full scale commercial operation, and one year after the start of full scale commercial operation. Similarly, visual quality inventories at the mine site undertaken in cooperation with forest licensees and the Ministry of Forests will be monitored prior to significant surface disturbance during construction. Other follow-up procedures pertaining to tourism are addressed in other chapters, namely Acoustic Environment (Volume 4, Section 3), Atmospheric Environment (Volume 4, Section 2), Transportation (Volume 6, Section 3) and Economics (Volume 6, Section 2).

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5.3.8 Trapping

5.3.8.1 Scope of Assessment for Trapping All of the Project footprint, including the mine site, transmission line and new access roads overlap existing trap line areas. The trap line areas at the mine site will be lost as the mine is developed, and it is assumed that trap line areas within the mine buffer will be negatively affected. Some Project components, such as the construction of the transmission line, will open new corridors for wildlife movement, however, the narrow width of the transmission lines is anticipated to exert minimal effects overall. This assessment focuses on the trappers’ ability to continue to engage in trapping as a commercial activity and a lifestyle. We recognize that some of the licensed trappers are First Nations’ members and that additional effects may be anticipated. The effects on trapping as a traditional use activity by First Nations are discussed in the cultural heritage assessment in Volume 6, Section 3. Wildlife habitat within the Chilcotin region is being modified by the mountain pine beetle. The mountain pine beetle will reduce the forest cover for many fur-bearing animals and this will clearly have an effect, however, it remains to be determined how significant this change will be on fur-bearing animals. Although it is known that once pine stands die off, other stands will become increasingly important as wildlife migrates to new habitat. The mine site and mine buffer area is currently a low value area for wildlife; however, it is a predominately spruce forest and is likely to survive the pine beetle attack which will increase its wildlife value in the future. Parameters for measuring the Project effects include the number of active trap line licences and the area (ha) these licences cover. Economic measures will include, the number and species of animals harvested, the harvest value, and royalties and licences paid to undertake trapping activities. The Project’s direct effects will occur as a result of site clearing and preparation during Project construction and post-closure when the land is reclaimed to its more natural state. The local study area is defined as the direct Project footprint as well as a sensory buffer around the mine site and access road. The regional study area is the Ministry of Environment management units that the footprint occupies. The Project falls within Region 5 and is made up of seven separate management units (i.e., MU 5-2, 5-3, 5-4, 5-5, 5-12, 5-13, and 5-14).

5.3.8.2 Effects Assessment Methodology The trapping territories affected by the Project and the area they cover are summarized in Table 5-6. The Ministry of Environment, Wildlife Branch, records fur harvest data for all registered trap lines in the province. The Ministry was contacted for trap line information that included; number of trap lines, number of animals by species reported harvested, their average selling price, and the average royalty paid to the province. Trap line information was available for the period 1999 and 2005. The economic value of trapping is based on a review of harvest values and materials produced by the provincial government and the Fur Institute of Canada. Representatives of government ministries and the Project study team were interviewed to determine Project effects.

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5.3.8.3 Baseline Conditions for Trapping For the RSA, the number of animals harvested for furs typically fluctuates from year to year, as animal populations move through a natural cycle. Over the period 1999 to 2005, the average value of furs harvested was $102,150 per year. For the RSA, the harvest of marten (41% by value), Lynx (20%), Beaver (9%), and Otter (9%) are the key species and collectively represent 79% of the total value of the furs harvested over the period. The royalties from the RSA are less than $2700 per year. For the LSA, fur harvesting from trapping generates approximately $2060 a year in fur revenue and $70 in royalties. However, for the last two years in which data is available, 2004 and 2005, there has been no harvest of fur-bearers in the LSA. Overall, the economic value from trapping in the RSA and LSA is small; however, it is an important recreational activity for those involved in the sector. The Project footprint consists of 56,252 ha of land, all of which is covered by trap lines. Two trap lines (3540 ha) have portions of their trap lines within the mine footprint and a portion of their trap lines in the mine buffer area (11,250). One trap line has a portion of their trap line in the mine buffer (3485 ha) and a portion in the road buffer (1509 ha). One trap line has a portion of their trap line in the mine buffer (5119 ha) and a portion in the transmission buffer (4484 ha). The transmission line and associated 3-km wide buffer area overlaps a portion of eight trap lines (36,460 ha). Table 5-17 outlines the specific trap lines and their locations.

Table 5-17 Trap Lines Located at the Mine Site, Mine Buffer Area, Road Buffer Area and Transmission Buffer Trap line ID Trapper Residency Hectares Mine Site TR0504T003 Nemaiah Band/Sonny Lulua Nemaiah Valley 2,782 TR0504T005 Heidi Gutfrucht Williams Lake 758 Mine Buffer TR504T002 Leo Rufiange Williams Lake 6 TR504T003 Nemaiah Band/Sonny Lulua Nemiah Valley 6,131 TR504T005 Heidi Gutfrucht Williams Lake 5,119 TR504T008 Norman George Hanceville 3,485 Road Buffer TR0504T008 Norman George Hanceville 1,509 TR0513T001 Anahim Band Alexis Creek 2 Transmission Buffer TR502T003 Canoe Creek Dog Creek 7,748 TR502T006 Alkali Lake Alkali Lake 501 TR503T001 Woodridge Quesnel 1,093 TR503T002 Toosey Band Williams Lake 11,994 TR504T005 Heidi Gutfrucht Williams Lake 4,484 TR504T007 Robert Russell Big Creek 3,600 TR504T008 Norman George Hanceville 760 TR504T012 Lonnie Russell Maple Ridge 6,280

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5.3.8.4 Assessment of Effects on Trapping

Project Effects As seen in Table 5-17, two trap lines are located at the mine site, one owned by the Nemaiah Band/Sonny Lulua (trap line ID TR504T003) and the other by Heidi Gutfructht (trap line ID TR504T005). The mine site area will occupy an area of 2782 ha within the Nemaiah trap line and 758 ha within the Gutfructht’s trap line. There are four other trapping territories in the mine buffer, TR504T003 (6131 ha), TR504T002 (6 ha), TR504T005 (5119 ha), and TR504T008 (3485 ha). It is possible that these trap lines will be affected and possibly experience a decline in fur bearing populations. In the wildlife section (Volume 5, Section 6) of this report, Fisher is examined as a leading indicator species for all fur-bearers, while general comments on other small fur- bearers are also offered. The conclusions were that significant effects on furbearers in the LSA and RSA were not anticipated. TR504T008 also has 1509 ha of his trap line along the road buffer. The wildlife analysis, again using fisher as a representative species, did note that a noticeable effect on fur- bearers can be expected from new road development, primarily in the form of road kill. There are eight trap lines in the transmission buffer, including portions of the trap lines also in the mine site. Trap lines in and near the transmission corridor will not be affected and could in fact experience an increase in harvest potential due to improved fur-bearer habitat. Some fur-bearing animals, particularly wolves and coyotes, may choose to utilize the transmission corridor for access, which could enhance opportunities to trap these species.

Mitigation Mitigation specific to wildlife habitat was previously outlined in (Volume 5, Section 6). As noted in the hunting assessment in this section, hunting bans will be implemented for mine employees during the construction and operations phases of the mine, reducing potential hunting effects on fur-bearing animals that might also be targeted by trappers. Taseko has previously held discussions with the one trapper whose trap line is likely to be displaced by the mine site, and expectations are that consultations will occur with the other trappers to find a suitable solution to effects that might occur. The potential for relocation or other management strategies that will maintain trapping productivity without cost to the licensee or to Taseko would be thoroughly explored.

Characterization of Residual Project Effects The effects on the two trap lines at the mine site and in the mine buffer will experience the loss of a portion of their trap line when construction starts. The trap line in the mine buffer and road buffer area will experience effects as well at this time. The reported fur harvests for the four trap lines within the mine site and mine buffer areas are outlined in Table 5-18.

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Table 5-18 Summary of Fur Harvest from Trap Lines in the Mine Site and Mine Buffer, 1999 to 2005 Trap Line Animal Harvest Average Price Royalty Years Harvested TR504004 Bear 1 $168.23 $2.97 2000 TR504002 Beaver 38 $963.98 437.14 1999, 2000 TR504002 Coyote 2 $52.28 $17.40 1999 TR504002 Fisher 16 $522.58 $22.74 1999, 2000, 2002 TR504002 Lynx 15 $1,225.92 $44.75 1999, 2000, 2002 TR504002 Mink 3 $53.83 $1.92 1999, 2000 TR504002 Squirrel 4 $7.63 $0.20 1999, 2000, 2002 TR504005 Squirrel 95 $91.20 $5.70 2003 TR504002 Weasel 33 $160.71 $5.61 1999 TR504005 Weasel 2 $5.88 $0.36 2003 TR504002 Wolf 1 $79.08 $3.28 2003 TR504002 Wolverine 4 $960.30 $3.28 2003 Total Values: 214 $4,291.62 $545.35 SOURCE: Ministry of Environment, Fur Harvesting Database

Over the seven year period a total of $4291.62 in furs was harvested from 214 fur-bearing animals. This represented an average harvest value of $613 per year. Most of this harvest was derived from TR504002 which has 6 ha in the mine buffer area and is not anticipated to be affected. Among the three trap lines that have significant trap line areas within the mine site and mine buffer area the total fur harvest value is $265.31 over the seven year period. Negative effects on trapping in the mine site and immediate buffer area have the potential to occur with Project construction and continue until mine closure and site reclamation when fur bearing habitat will be restored. It is anticipated that fur-bearers will re-inhabit the mine site with mine closure and the potential of re-establishing trap lines can be considered. It is important to note that this assessment only considers trapping activity officially regulated by the Ministry of Environment and only as a resource activity. Trapping as a traditional use of First Nations are discussed in the cultural heritage assessment of Volume 6, Section 3.

Cumulative Effects The probability that the effects on trapping will result in a demonstrable overlap with similar effects from other projects is low. The fur-bearers currently trapped in the LSA inhabit localized home ranges that have a low likelihood of overlapping with other projects during the lifetime of the proposed mine.

Determination of Significance The mine site and associated buffer area represents a small portion of both the habitat and the harvest of fur-bearers in the RSA. Fur-bearer populations are not expected to be affected by other Project components, including the transmission and transportation corridors. However, for the two licensees located at the mine site their trapping operations will be disrupted, although it is unlikely they would be completed displaced,

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even without mitigation. Providing Taseko is able to conclude discussions with these licensees, the Projects contribution to cumulative effects on trapping activities is expected to be minimal.

Confidence in Predictions The understanding of the trapping baseline in the study area is excellent as activity is closely tracked by the Ministry of Environment. The implications of access road, mine site and transmission corridor development for the fur-bearers in the study area is well documented in the provincial context. Similarly, the mitigation measures for minimizing wildlife disturbance, controlling access and enforcing no-hunting rules for workers have been applied at other mines in the province to good effect. For these reasons, our confidence in these effect predictions is high.

Follow-up and Monitoring Follow-up monitoring for fur-bearers is described in the wildlife section. In addition, on- going communications with trappers is anticipated to assess change in fur-bearer harvests.

5.4 Summary of Effects on Resource Uses The Project’s specific project and cumulative effects on Resource Uses were assessed for the following: • land use objectives • forestry • agriculture and ranching • fishing • hunting • public recreation • tourism • trapping Each of these resource uses have licensed access (e.g., timber harvesting), or general permission (e.g., public hunting, fishing) to use or harvest a resource on Crown land with certain assumed qualitative and quantitative characteristics. This locus of characteristics, or “resource value”, may be changed by the Project, diminishing or enhancing particular aspects of the resource use.

5.4.1 Summary of Mitigation for Resource Uses Mitigation for Resource Uses comes under two distinct categories, those measures to address infringement or loss of Crown tenure at the mine site and those mutually agreed- to strategies for ensuring licensees that might be affected by the Project outside the mine site experience minimal effects. Specific mitigation steps include the following: • General—the reclamation plan for the Project, including the mine site and the transmission corridor will restore most resource values after closure. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 5-65 Prosperity Gold-Copper Project

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• Forestry—adjust transmission corridor to avoid commercial forest; minimize merchantable trees removed from the mine site; direct timber harvest from site clearing to local mills. • Agriculture and Ranching—discuss with one range licensee and un-licensed First Nations’ rancher using the mine site to ensure forage availability is maintained; timing of transmission corridor clearing for late fall/winter when plants are dormant to minimize damage; avoidance of new access routes across dry meadows; avoid construction during fall roundup and in areas where livestock movement between units is occurring; maintain fence line and range barrier integrity; seed disturbed areas with appropriate seed mixes. • Fishing—in conjunction with the Fisheries Compensation Plan, enhance access and use of newly stocked lakes; hunting and fishing ban on mine employees and contractors near the mine site. • Hunting—in addition to wildlife mitigation strategies, discussions with affected licensed outfitters leading to mutually agreed-to strategies; hunting ban on mine employees and contractors near the mine site. • Public Recreation—in addition to the hunting and fishing ban on employees and contractors (which will limit potential overuse of recreation sites in the area), in cooperation with MTSA, and in the context of the Fisheries Compensation Plan, enhance access to and use of replacement recreation sites; cooperate with MOFR and forest licensees to ensure preservation of visual recreation inventory. • Tourism—in addition to noise, air quality and transportation mitigation plans, ensure local operators have the opportunity to bid and secure contracts from the mine for accommodation, food service and other hospitality services. • Trapping—in addition to wildlife mitigation plans, negotiate compensation agreements with the two affected trap line owners.

5.4.2 Summary of Residual Project and Cumulative Effects for Resource Uses The effects of the Project on Resource Uses will entail either a direct loss of access to Crown tenure area, or public access, at the mine site, or a disruption of access to or quality/abundance of the resource in question in the vicinity of other mine components. These effects are slightly negative (with the exception of range) and will occur during construction when the mine site is alienated for these uses and the transmission corridor is built. Crown tenures, with few exceptions, are allocated for relatively large geographic units. Forestry, range, guide outfitter, trapping and commercial recreation licensees often have licence areas in the tens of thousands of hectares if not more34. Similarly, public recreation has access to the entire Crown land base, including many parks, with a full range of alternative and substitute sites and experiences. The Project effects on these licences or public activities are linked to physical disturbances which are likely to be either site specific or confined to the area occupied by mine components. The proportion of the “disturbed” resource compared to the total resource represented by the licence area is typically minor and as such can be managed without substantive loss of commercial

34 Forest licenses are volume-based and not area-based but do have access to entire Timber Supply Areas for their apportionment. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 5-66 Prosperity Gold-Copper Project

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viability, or in the case of resident recreation (including fishing and hunting), loss of net economic values. At this time, there are no reasonably foreseeable planned projects or developments within the LSA and thus a low likelihood of potential effect overlaps with the Project. The MPB epidemic is changing fundamentally all resources uses in the Cariboo-Chilcotin region. The scale of change is enormous and will undoubtedly alter resource activity and industries in the decades ahead. The contribution of the Project to this change is considered not significant and in most cases beyond measure. Therefore, no cumulative effects on Resource Uses are expected from the Project.

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Table 5-19 Summary of Project Residual Environmental Effects: Resource Uses Residual Environmental Effects Characteristics

Proposed Potential Residual Recommended Follow-up Mitigation/Compensation Environmental Effects and Monitoring Measures Likelihood Significance Context Context Direction Magnitude Magnitude Reversibility Socio-Economic Socio-Economic Prediction Confidence Geographic Extent Extent Geographic Duration/Frequency Duration/Frequency Land Use—Management for a variety of environmental values reflected in SRMP will be disrupted. Construction and May be potential to designate Addressed in Reclamation N L R LT/C R D commissioning other old growth areas as old Plan N H H Operation growth management areas Decommissioning (OGMAs) Residual effects for all phases N L R LT/C R D Forestry—Site clearing of commercially valuable trees will be sold for conversion. Some land will be permanently removed from timber production but not substantial for TSA management. Salvage logging for MPB overwhelms effect of Project. Construction and Mine site, minimize forest Addressed in Reclamation N L R LT/S R D commissioning disturbance, reclaim to forest Plan Operation as soon as site is available. N H H Decommissioning Align trans. ROW to minimize Residual effects for all phases effect on commercial timber N L R LT/S R D Agriculture and Ranching—the Project will disrupt grazing patterns for range licensees at the mine site, disturb range barriers and ranching activities for licensees along the transmission corridor and potentially introduce noxious weeds into range lands. Construction and Work with range licensees at Compliance to N L S ST/C R D commissioning the mine site and along commitments made to Operation transmission corridor; timing P L S LT/C - D Ranchers and licensees to Decommissioning of transmission ROW P L S LT/C - D N H H be reported prior to construction to avoid conflicts; construction, prior to Residual effects for all phases maintenance of range P L S LT/C - D operations and one year barriers; seeding of ROW into operations

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Table 5-19 Summary of Project Residual Environmental Effects: Resource Uses (cont’d) Residual Environmental Effects Characteristics

Proposed Potential Residual Recommended Follow-up Mitigation/Compensation Environmental Effects and Monitoring Measures Likelihood Significance Context Context Direction Duration/ Duration/ Magnitude Magnitude Frequency Frequency Reversibility Socio-Economic Socio-Economic Prediction Confidence Geographic Extent Extent Geographic Fishing—the Project will result in the loss of Fish Lake as a sport fishery and displace activity to other lakes in the region. Increased mine traffic may also affect sport fishing lodges in the Vedan/Chaunigan lakes area, while fishing by employees may increase local pressure. Construction and Fisheries Compensation Plan Compliance to N L S ST/C I D commissioning will maintain the sport fishery commitments made to with a replacement to Fish N MOE to be reported prior Operation L S LT/C - D N H M Lake and stocking of recipient u to construction, prior to lakes in the area;; fishing ban operations and one year Decommissioning P L S LT/C - D on mine employees and into operations Residual effects for all phases contractors P L S LT/C - D Hunting—the Project will result in a no-hunting zone around the mine site, displacing some resident hunters and removing hunting area from guide outfitter territories. Hunting by employees could increase local pressure and affect guided outfitting activity. Construction and Wildlife mitigation strategies, Compliance to N L L LT/C I D commissioning compensation agreements commitments made to Operation with affected licensed MOE and licensees to be Decommissioning outfitters; hunting ban on mine P L L LT/C R D N H H reported prior to employees and contractors for construction, prior to Residual effects for all phases mine site N L L LT/C R D operations and one year into operations Public Recreation—the loss of the Fish Lake recreation site will displace use from the mine site to other recreation sites in the area. Some niche activities like kayaking on Fish Creek will no longer be possible. Visual quality may be affected for recreation sites and corridors within the mine viewshed and along the transmission corridor. Construction and Improved recreation access to Compliance to N L S LT/C I D commissioning and use of recipient lakes of commitments made to the Fisheries Compensation MTSA to be reported prior Operation N H H Decommissioning Plan; cooperation with MTSA N L S LT/C R D to construction, prior to and MOF on preserving visual operations and one year Residual effects for all phases quality standards for recreation N L S LT/C R D into operations March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 5-69 Prosperity Gold-Copper Project

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Table 5-19 Summary of Project Residual Environmental Effects: Resource Uses (cont’d) Residual Environmental Effects Characteristics

Proposed Potential Residual Recommended Follow-up Mitigation/Compensation Environmental Effects and Monitoring Measures Likelihood Significance Context Context Direction Magnitude Magnitude Reversibility Socio-Economic Socio-Economic Prediction Confidence Geographic Extent Extent Geographic Duration/Frequency Duration/Frequency Tourism—Seven commercial recreation licensees will have minor portions of their guiding areas at the mine site and the transmission corridor affected by mine activity, while traffic, noise and dust associated with mine operations will be an inconvenience to clients of lodges in the area. Construction and Noise, air quality and Compliance to N L L LT/C R D commissioning transportation mitigations to commitments made to Operation be complemented by MTSA and licensees to compensation with affected N M H be reported prior to licensees and procurement N construction, prior to Decommissioning L L LT/C R D agreements with local u operations and one year operators into operations Residual environmental effects N L L LT/C R D for all phases u Trapping—major portions of one trap line negatively affected. One trap line has significant territory in mine site and mine buffer area. Three additional trap lines impacted in mine buffer area. Construction and Settlement and compensation On-going follow-up with N L S C R D commissioning agreements with affected affected trappers. Operation trappers. Wildlife habitat management strategies can N N H M Decommissioning L S C R D provide mitigation to fur- u Residual environmental effects bearers N L S C R D for all phases KEY

Direction: Duration: Socio-Economic Context: Likelihood: P Positive ST Short term: Occurs within one U Undisturbed: Effect is outside the Based on professional judgment N Negative operating year or season. typical variation in resource characteristics L Low probability of Nu Neutral MT Medium term: Extends into resource as experienced by primary users, or occurrence planning cycle (1 to 5 years). community. M Medium probability of

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Residual Environmental Effects Characteristics

Proposed Potential Residual Recommended Follow-up Mitigation/Compensation Environmental Effects and Monitoring Measures Likelihood Significance Context Context Direction Magnitude Magnitude Reversibility Socio-Economic Socio-Economic Prediction Confidence Geographic Extent Extent Geographic Duration/Frequency Duration/Frequency Magnitude: LT Long term: Extends to multiple D Developed: Effect is within the occurrence L Low: Will not disrupt commercial planning periods (5 to 20 years). typical variation in resource characteristics H High probability of activities of licensees or other use levels. P Permanent: Permanent loss of land as experienced by primary users, or occurrence M Moderate: Will disrupt commercial or resource access. community. activities or use levels, but effects can be Cumulative Effects managed without financial substantial loss. Frequency: N/A Not Applicable Y Potential for effect to H High: Disruption or loss of access to O Occurs once. interact with other past, present or the resource results in financial or net economic S Occurs sporadically at irregular Significance: foreseeable projects or activities in value loss that threatens the financial viability of intervals. Not predictable with accuracy S Significant RSA the activity or organization. R Occurs on a regular basis and at N Not Significant N Effect will not or is not regular intervals. Predictable likely to interact with other past, Geographic Extent: C Continuous. Prediction Confidence: present or foreseeable projects or S Site-specific: Mine components Based on scientific information and activities in RSA L Local: Rural areas surrounding Reversibility: statistical analysis, professional judgment components R Reversible within a meaningful time and effectiveness of mitigation R Regional: Central Cariboo-Chilcotin frame, given context of the activity L Low level of confidence region Otherwise M Moderate level of confidence I Irreversible H High level of confidence

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5.4.3 Follow-up and Monitoring for Resource Uses The follow-up process is similar for each resource use: • discussions with licensees at the mine site and buffer will be concluded prior to the onset of construction All other mitigation strategies will be reviewed with the EAO and the respective licensees or stakeholders at three points in time, once prior to construction, again prior to the onset of operations and finally one year after the onset of operations.

5.4.4 Additional Considerations for Resource Uses

5.4.4.1 Climate Change The effects of climate change were addressed in Section 2.1.1.1. Based on the best available scientific information, climate change in the Central Interior of British Columbia may be manifest by increase in average temperature (little change in maximum temperatures but some increase in minimum temperatures), some increase in precipitation, and changes in streamflow regime to earlier freshet and lower late summer flows. The Project’s residual effects on Resource Uses are not expected to be materially magnified or buffered by these potential changes in climate conditions. In the case of forestry and agriculture, adaptive management may be required to better suit the changing conditions. This might include modifying silviculture practices at the landscape level, or crop and range management choices at the ranch level. The activity related Resource Uses that are based on resource abundance (i.e., fishing, public recreation, hunting, public recreation, trapping) may adjust to changing conditions, but the characteristics of the residual effects are unchanged.

5.4.4.2 Mountain Pine Beetle Where it is commercial to harvest trees, the effect of the Mountain Pine Beetle is to accelerate harvest. This treatment is implemented by the Chief Forester providing an “uplift” to the allowable annual cut, and by the forest industry concentrating its harvest on pine leading stands. In the consideration of Forestry, 60% of the timber to be harvested is mature pine, some of it already attacked by the beetle. Hence, in the absence of the Project the timber would likely have been harvested in the near term. In this respect, the effect of the mountain pine beetle, buffers the Project’s effect on forestry. Other Resource Uses sensitive or reliant on forest cover, and where a negative residual Project effect is anticipated due to land clearing (agriculture, trapping and visual quality degradation effecting recreational pursuits), the effect is buffered. That is, the site would have been cleared in the absence of the Project, or in other cases the effect of the mountain pine beetle on changing the landscape is at such a scale it overwhelms the Project’s effects.

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Appendix 5-A GIS Tables

Table 5-20 GIS Summary Table

Access Mine Site Transmission Transmission Resource/Interest Mine Site Road TOTAL Buffer Line Buffer Line Footprint Buffer Crown 4,419 13,602 1,672 4,883 953 25,529 Private 0 0 70 187 37 294 0 0 70 187 37 294 Water licences–points of diversion 0 0 10 0 0 10 Severe limitations 0 0 20 0 0 20 Forage crops–improvement practices feasible 46 1,171 1,213 872 162 3,464 Forage crops–improvement practices not feasible 4,373 12,300 502 1,154 251 18,580 No capability for arable culture or permanent pasture 0 71 0 33 5 108 Organic soils 0 60 7 11 0 79 N/A - unclassified 0 0 0 3,000 572 3,572 Agricultural land reserve 0 0 173 1,497 277 1,948 Number of range grazing licences (E01) 2 8 9 12 12 22 Number of range grazing permits (E02) 0 0 7 0 0 7 Number of range non-replaceable grazing permits (E03) 0 0 3 0 0 3 Number of range hay cutting licences (H01) 0 0 0 0 0 0 Area of provincially known trap lines 4,419 13,602 1,742 5,070 990 25,823 Number of existing tourism facilities (count) 0 0 2 0 0 2 Recreation and tourism–features (count) 1 0 0 0 0 1 Recreation and tourism–travel routes (50 m buffer) 33 343 512 47 8 942 Visual landscape inventory–retention 47 2,322 0 13 2 2,384 Visual landscape inventory–partial retention 1,333 1,415 0 14 3 2,765 Visual landscape inventory–modification 3 663 314 303 63 1,347 Visual landscape inventory–not visually sensitive 111 350 0 0 5 466 Visual landscape inventory–N/A 2,925 8,852 1,428 4,740 916 18,862 Area of G/O Territories 4,419 13,602 1,613 3,949 778 24,361 March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 5-73 Prosperity Gold-Copper Project

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Access Mine Site Transmission Transmission Resource/Interest Mine Site Road TOTAL Buffer Line Buffer Line Footprint Buffer Number of Land Act tenure applications 0 0 4 4 4 4 Number of Land Act tenures 4 5 5 6 6 13 Productive forest land base (PFLB) 3,525 11,691 1,555 4,371 862 22,005 Age Class 1 (0–20) 952 3,012 580 1,560 308 6,412 Age Class 2 (20–40) 90 165 48 256 48 608 Age Class 3 (40–60) 24 673 67 85 17 866 Age Class 4 (60–80) 1,738 3,705 195 566 120 6,323 Age Class 5 (80–100) 3 339 187 249 46 824 Age Class 6 (100–120) 48 572 82 318 53 1,073 Age Class 7 (120–140) 27 299 158 673 120 1,277 Age Class 8 (140–250) 1,536 4,630 397 1,310 257 8,131 Age Class 9 (>250) 0 207 27 52 21 307 Site index good (>22) 0 12 0 37 10 59 Site index medium (15–22) 1 38 40 178 43 300 Site index poor (<=15) 4,418 13,552 1,702 4,855 938 25,465 Roaded modified 301 3,048 1,201 3,545 675 8,771 Roaded natural 0 0 0 87 15 102 Semi-primitive motorized 947 3,563 133 448 86 5,177 Semi-primitive non-Motorized 414 4,218 251 596 112 5,592 Unclassified 2,757 2,773 156 394 102 6,181 100 Mile House TSA 0 0 0 87 15 102 Williams Lake TSA 4,419 13,602 1,742 4,983 975 25,721 Road permits 4 66 53 23 5 150 Licence to cut 551 323 0 0 0 874 Wood lot licence A 0 0 0 0 0 0 Wood lot licence B 0 0 0 102 20 122 Community forest 0 0 0 247 47 294 Mineral claims and titles–minerals 93 82 11 2 7 146 Mineral claims and titles–placer 0 0 0 0 0 0 MinFile–developed prospect 1 0 0 0 0 1

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Access Mine Site Transmission Transmission Resource/Interest Mine Site Road TOTAL Buffer Line Buffer Line Footprint Buffer MinFile–showing 0 1 0 0 0 1 Canoe Creek Band Esketemc High bar Stone Toosey Williams Lake Band Xeni Gwet'in First Nation Government Cariboo Tribal Council 0 0 1 3,310 629 3,940 Esketemc First Nation 3,768 5,421 0 5,070 990 15,250

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Appendix 5-B Land Use

The Cariboo-Chilcotin Land Resource Management Plan (CCLRMP) established 17 new protected areas covering about 460,000 ha. Outside the protected zone, the CCLRMP defined three resource development zones covering about 80% of the plan area. The zones are: • Enhanced Resource Development Zone (ERD)—land units where economic benefits and jobs will be increased through intensive resource management and development. In this zone, the plan challenges all local resource users and government to set targets for increased sustainable resource development. • Integrated Resource Management Zone (IRM)—land units that will be dedicated for sustained integrated resource use. • Special Resource Development Zone (SRD)—land units where significant fish, wildlife, ecosystem, back country recreation and tourism values exist. Timber harvesting, mining and grazing will take place in this zone in a manner that respects these values. The CCLUP states that mineral development is an accepted land use in the three zones. The plan defines land units which were assigned to one of the three management zones noted above. The Project footprint overlaps six of these land units. These are identified in Table 5-21.

Table 5-21 Distribution of Project Lands by Cariboo-Chilcotin Land Use Plan Land Units Land Unit Designation Total Mine Mine Transmission Access (CCLUP) Area (ha) Footprint Buffer (ha) Buffer (ha) Road Buffer (ha) (ha) Eagle IRM 19,133 2,531 13,802 1,928 872 Gaspard ERD 25,013 25 24,365 623 Grasslands IRM 8,927 8,660 267 Gustafson ERD 1,247 1,247 Taseko Lake SRD 5,847 1,005 4,439 403 Williams ERD 1,448 1,448 Lake Total 61,615 3,536 18,266 38,051 1,762 SOURCE: Jacques Whitford AXYS Ltd. GIS Analysis (these numbers will need updating to Project footprint)

A key component of the implementation of the CCLUP is the completion of sub-regional plans, termed sustainable resource management plans (SRMPs). Eight SRMP areas have been designated, and the Project falls within two, the Chilcotin and Williams Lake. The SRMPs provide detailed objectives and strategies for the management of the Cariboo’s resources and the maintenance of environmental values consistent with the strategies and targets set out in the CCLUP. The Williams Lake SRMP is complete and the Chilcotin is in draft at the time of writing (ILMB 2005).

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The management of forest harvesting is one of the tools used to attain a wide range of timber and non-timber values. Broadly, three zones are defined in the SRMPs by the following: • no harvest zone • extended harvest zone • harvest in one rotation These zones are addressed in the main report.

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Appendix 5-C Forestry Tables and Figures

Table 5-22 Forest Tenures in the Project Footprint

Holds Road Permit in Forest Licences Licence Volume Footprint Replaceable Tolko Industries Ltd. 1,042,968 9 West Fraser Mills Ltd. 659,222 9 Non-replaceable Yun ka whu’ten Holdings Ltd. 190,000 Tsi del del Enterprises Ltd. 60,000 Esketemc First Nation 59,663 9 Amabilis Contracting Ltd.; Maheca Timber Co. Ltd.; Kodiak b 110,000 Waddington Charter & Contracting 10,000 Tolko Industries Ltd. 300,000 West Fraser Mills Ltd. 150,000 9 Sigurdson Bros. Logging Company Ltd. 290,000 9 Klatassine Resources Ltd 73,459 Pal lumber Co. Ltd. 15,000 9 Tl’etinqox Logging Ltd. 15,000 Amabilis Contracting Ltd. 60,000 BIG 6 Contracting Ltd. 135,000 Transmission Line Area Based Licences in Footprint (ha) Form of Tenure ROW Esketemc First Nation Community Forest 47 Hodgson Wood Lot 20.5 SOURCE: Ministry of Forest Apportionment System (2006-06-16) Jacques Whitford AXYS Ltd. GIS Analysis

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Table 5-23 Forest Agreements with First Nations First Nations/Band Date signed Term Total Volume Revenue Sharing ($ (‘000 cubic millions) metres) Forest and Range Agreements Xats’ull (Soda Creek) 2007/03 5 yrs 60 $ .835 Ulkatcho 2006/12 5 yrs 232 $ 2.15 Tletinqoxtin (Anaham) 2006/10 5 yrs 367 $ 3.4 Canoe Creek 2006/06 5 yrs 165 $ 1.52 Esketemc 2004/04 5 yrs 191 $ .731 Direct Awards Canoe Creek 08/05 390 Xats’ull (Soda Creek) 08/05 150 Esketemc 08/02 740 Canoe Creek 08/03 175 Xats’ull (Soda Creek) 07/09 300 Esketemc 07/09 75 Esketemc 05/06 107 Ulkatcho 06/12 500 Ulkatcho 07/09 300 SOURCE: Aboriginal Affairs Branch, Ministry of Forests and Range, as of Sept 2008.

3500 Chilcotin Williams Lake 3000 Total harvest

2500

2000

'000 m3 '000 1500

1000

500

0 1997 1999 2000 2001 2002

SOURCE: Revenue Branch, MOFR

Figure 5-4 Billed Harvest Volume Williams Lake TSA

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Table 5-24 Primary Mills Operating in the Williams Lake TSA in 2005

Facility Annual Company Community Type Capacity Units Tolko Industries Ltd. Williams Lake Chip plant 55,680 bone dry units of Chips Chimney Creek Lumber Co Ltd. Williams Lake saw mill 2.4 million board feet of lumber Linde Bros Lumber Ltd. Williams Lake saw mill 4.8 million board feet of lumber R. Durfeld Log Construction Ltd. Williams Lake saw mill 2.4 million board feet of lumber Sigurdson Bros. Logging Company Hanceville saw mill 72 million board feet of lumber Sigurdson Bros. Logging Company Williams Lake saw mill 72 million board feet of lumber Tolko Industries Ltd. Williams Lake saw mill 103 million board feet of lumber Tolko Industries Ltd. Williams Lake saw mill 240 million board feet of lumber Tolko Industries Ltd. Williams Lake saw mill 293 million board feet of lumber West Chilcotin Forest Products Ltd. Anahim Lake saw mill 84 million board feet of lumber West Fraser Mills Ltd. Williams Lake 149 million board feet of lumber Pioneer Log Homes Ltd. Williams Lake log homes Wildwood Forest Products Ltd. Williams Lake Pinnacle Pellet Inc. Williams Lake pellet mill 115 000 of tonnes West Fraser Mills Ltd. Williams Lake Veneer Mill 120 million sq. Ft, 3/8” basis Plywood million sq. Ft, 3/8” basis West Fraser Mills Ltd. Williams Lake Mill 188 SOURCE: MOFR 2006b

Table 5-25 Employment from Timber Clearing

TSA Employment Total Total Indirect/ Total Coefficients Harvesting Silviculture Processing Direct Induced Employment TSA 0.22 0.03 0.39 0.64 0.35 0.99 BC 0.22 0.05 0.53 0.81 1.08 1.89 Before-tax Income Coefficients TSA BC Direct $ 38,827.40 $ 38,827 Indirect/induced $ 16,686.00 $ 16,686 SOURCE: MOFR, accessed at http://www.for.gov.bc.ca/HET/tsr_sea/TSR2.xls for employment and BC Stats (2004) http://www.for.gov.bc.ca/HET/tsr_sea/2001%20Forest%20District%20Tables%20(by%20pre- 2003%20district%20boundaries).xls for income.

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Appendix 5-D Agriculture/Ranching

Agriculture plays a central role in the history, culture and economy of the Cariboo- Chilcotin. As an economic activity, agriculture makes an important contributing to the region’s economic base.

D.1 Agriculture Land Use ALR land accounts for 7.5% of all the land area within the Project components, although the mine site and mine site buffer does not include any ALR at all (Table 5-20). The capability of the land base within Project components is primarily in forage crops. The mine site and mine buffer are suitable for forage crops but improvement practices are not feasible. Approximately 17% of the transmission line buffer and over two thirds of the access road are considered suitable for forage crop improvement practices. The CCLUP specifies that all lands within the plan area can be considered for the expansion of existing agricultural holdings, and includes a CCLUP objective of providing for the future growth and development of agriculture. The land use plan also recognizes the needs of industry to enhance its access to Crown land and water in support of agricultural economic opportunities. The Cariboo-Chilcotin Grasslands Strategy has noted that the biggest threat to grasslands in the region, and associated livestock grazing and biodiversity, is from forest encroachment. “Cattle herd size, or animal unit month (AUM) allocations set in the 1960s, cannot be maintained at current levels for much longer” (Cariboo-Chilcotin Grasslands Strategy Working Group 2001, p 4). An open range benchmark has been established for the Ministry of Forests and Range and will result in the long term expansion of range lands and grazing capacity to 1965 levels35. The MOFR is contracting to clear selected small diameter forest stands across the District as part of the strategy.

D.2 Agriculture Activity The Cariboo Regional District (CRD) is an important beef cattle producing area, representing 10% of cattle farms and 16.5% of the cattle/calve inventory in the province in 2001 (Table 5-26). The cattle industry accounts for 64% of farms in the CRD and contributes approximately 30% of total provincial production (Cariboo Geographic Systems 2003). Average herd size is 178 head. Other agricultural industries include dairy, sheep, game farming, horse, poultry, horticultural crops and forage production. Some organic production is occurring. There are many small hobby farms where the residents raise animals and crops for their own consumption.

35 Personal communication, Chris Armes, District Agrologist, Cariboo-Chilcotin Forest District, 250-398-4362. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 5-83 Prosperity Gold-Copper Project

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Table 5-26 Selected Agriculture Statistics for the Cariboo Regional District, Electoral Areas K and E, BC, 2001 Electoral Area Electoral Area Cariboo BC K E Regional District Total farms–number 77 50 1,188 20,290 Total farms–number reporting receipts 71 48 1,046 17382 greater than $2,500 annually Total area of farms (ha) 216,486 41,856 400,177 2,587,118 Average area per farm (ha) 2,811 837 220 127 Livestock production: Cattle and calves–number of farms 61 34 758 7,726 Cattle and calves–number of animals 38,231 11,042 135,435 814,949 Average herd size 626 325 178 105 Crop production: Alfalfa & alf mixtures (ha) 4,392 2,076 26,395 195,516 All other tame hay and fodder (ha) 2,104 314 28,502 205,475 Total farm capital ($ ‘000) 81,000 161,000 935,000 15,831,000 Average farm capital ($) 2,090,000 1,620,000 787,000 780,000 Total gross farm receipts ($ ‘000) 14,000 6,000 102,000 2,308,000 Average farm receipts ($) 182,000 120,000 56,000 114,000 SOURCE: Statistics Canada (2001)

Electoral areas K and E comprise the LSA for agriculture. The 127 farms in the LSA constitute just over 10% of the total farms in the CRD, but close to two thirds of all farm area. They are predominantly land-intensive beef cattle operations, although other livestock are raised, mostly pigs and sheep. Farm area, herd size, farm receipts and invested capital tend to be higher among the average LSA farm than their CRD or BC counterparts. Dairy production occurs on two farms. There is no poultry production and vegetable/fruit production represents a very small portion of activity. Crop production among LSA farms is used mainly for forage and consists primarily of alfalfa/alfalfa mixtures and other tame hay and fodder crops. The bulk of grain and forage production in the region occurs on beef cattle farms is in support of beef cattle operations (Powell 2006).

D.3 Range Activity Ranches are highly dependent on Crown range for grazing, which is administered under a tenure system by the MOFR. Two tenure types are used, the permit and the licence36. The former is rarely used and can be any interval from one to five years. It expires at the end

36 The term “lease” is sometimes used to describe range tenure, but the usage is incorrect. Lease is another tenure type and is distinct from Ministry of Forest and Range grazing tenures, which are either permits or licenses. The latter authorizes only the use of forage; a lease authorizes control of the land base including access. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 5-84 Prosperity Gold-Copper Project

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of the permit and renewal is discretionary. The licence is a 10-year evergreen document, which means the licence is replaced before expiry. The licence offers greater security for the ranch; it is also the favoured administrative tenure for the MOFR. Both permit and licence rights may be transferred in a ranch sale or lease. They are rarely cancelled. The range tenure system is based on large geographical areas called Stock Ranges, which normally have an association of grazing tenure holders (e.g., the Big Creek Stock Association). They are a society and hold spring and fall meetings. Within most stock ranges are smaller geographical management areas called “units”. These units are for the most part separated from other units by geographical barriers such as rivers, creeks, rock, height of land, large areas of barren forest and by fences where such barriers are absent. Similarly Stock Ranges are separated from adjacent ranges usually by firmer barriers such as the Fraser River, Chilcotin River and Taseko River where stock drift is impossible. The range unit forms the basic management unit for individual ranch herds. Grazing rights are based on legal boundaries specified in the tenure document and are confined to dates of use, stock numbers and types, within the boundaries of a range unit. Occasionally a unit maybe further divided between two or more users. This might arise where a unit has only a few isolated areas of suitable grazing separated by large areas of non productive waste ground. In essence there are pastures within one unit. In other cases the range is divided with users attempting to manage their herds separately. This is often for convenience where the ranches enter and exit the unit from different directions and therefore attempt to eliminate costly separating of mixed herds, or to keep breeding programs (i.e., one ranch uses Hereford bulls, another Angus). Ranches with tenures along the Fraser and Chilcotin Rivers usually turnout onto Crown Range in mid April and move onto higher elevation summer ranges in early June where they typically graze until early winter snowfalls start cattle moving towards their lower elevation grazing areas and home. Most tenures authorize grazing in the upper elevation areas until mid- to late-October. Gang Ranch and the Big Creek Stock Association tenures of Weetman and Anvil Mountain Ranch have the longest grazing period and the longest herd movements from spring range along the Chilcotin River to summer-fall range at the headwaters of Relay, Vic and Anvil Mountains. Ranches are highly dependent on Crown range. Winter feeding of livestock, lasting anywhere from four to six months, relies primarily upon hay and silage stores produced in the region or imported. From the spring to the early fall, livestock are pastured on Crown and private rangelands, after which most calves are sold and shipped out of the region. In 2003, a total of 232 grazing tenures authorized close to 200,000 AUM37 to licensees in the two forest districts (Table 5-27). AUMs tend to be fully utilized in the Central Cariboo Forest District, but capacity remains available in the Chilcotin. Fifty-two hay cutting tenures authorizing 1116 tonnes of harvest were fully used in 2003.

37 The amount of forage required for one month by an average animal of the genus Bos (i.e., a cow) aged six months or older. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 5-85 Prosperity Gold-Copper Project

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Table 5-27 Crown Grazing and Hay Cutting Tenures in the Cariboo-Chilcotin, 2003 Grazing Tenures Hay Cutting Tenures Forest District Licences AUMs AUMs Licences Tonnes Tonnes and Permits Authorized Used and Permits Authorized Used

Central Cariboo 128 127,459 125,863 22 453 428 Chilcotin 104 71,292 65,852 30 688 688 SOURCE: Lohr (2003)

The Project components intersect a total of 22 grazing tenures, approximately 9% of all tenures in the LSA (Table 5-27). The licence area covered by mine components is negligible for the majority of tenures (less than 6% in total), while productivity in terms of AUMs that those areas represent cannot be determined with the available data38. The largest lease area for an individual tenure is 251,000 ha, while the average tenure is 60,000 ha.

38 Personal communication, Chris Armes, District Agrologist, Cariboo-Chilcotin Forest District, 250 398-4362. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 5-86 Prosperity Gold-Copper Project

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Appendix 5-E Fishing

There are over 31 lakes within the Chilko and Taseko River watersheds suitable for fishing and boating, with important sport fisheries in both rivers and in over a dozen lakes that include Chaunigan, Chilko, Fishem, Konni, Taseko, Tsuniah and Vedan. Fish species such as Bull Trout, Chinook salmon, Dolly Varden, Steelhead, Sockeye salmon and native Rainbow trout attract fishers from the region and beyond. Lodges and other tourism operations promote fishing as one of the primary activities and many are dependent on this resource.

E.1 Recreational Fishing The Cariboo-Chilcotin is a popular fishing destination made attractive by a variety of lakes and rivers in remote and semi-remote settings. In 2000, close to 80% of anglers were BC residents, while the majority of non-resident anglers were from outside the country (Table 5-28). An estimated 0.5 million days were fished and 1.2 million fish caught; 70% of fish were released. In 2000, anglers fishing in the Cariboo region reported catching rainbow trout (73%), freshwater salmon (7%) and kokanee (6%). Another 9% of the catch was comprised of three other trout species: cutthroat trout, brook trout and lake trout (about 3% each). The remaining 5% of the catch was comprised of other species, including Dolly Varden (2%) (Jack and Levey 2003).

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Table 5-28 Socio-Economic Effects and Economic Value of Non-guided Angling in the Cariboo-Chilcotin Number Percent of BC Total Anglers (2000) 52,082 17 BC Residents 40,763 17 Other Canadians 2,122 7 Non-Canadians 9,197 24 Days fished 500,331 11.4 Fish caught 1,197,726 12.7 Fish kept 359,243 14.2 % released 70 Expenditures (2005) Total Per Angler Per Angler Day Packages 6,076,756 116.68 12.15 Accommodation 4,728,895 90.80 9.45 Food 7,348,065 141.09 14.69 Transportation 8,340,721 160.15 16.67 Supplies 1,682,876 32.31 3.36 Licences and Fees 1,421,298 27.29 2.84 Other 2,993,833 57.48 5.98 Total Expenditures 32,592,445 625.79 65.14 Government Revenues (2005) Basic Licences 1,562,460 30 3.12 Surcharges 208,328 4 0.42 Total 1,770,788 34 3.54 Net Economic Value (2005) Environment Canada $ 6,750,538 $ 129.61 $ 13.49 SOURCE: Modified from Jack and Levey (2003). Expenditures and revenues updated to 2005 using the BC Consumer Price Index.

According to MOE’s Small Lakes Index Management (SLIM), Fish Lake ranked 55 out of the Cariboo-Chilcotin’s 116 fishing lakes in terms of total annual angling effort during the late 1980s and early 1990s when creel surveys and boat counts were regularly undertaken (MOE 2006a). The lake supported an average of 424 angler days per year compared to an average effort for all Cariboo-Chilcotin lakes of 904 angler days. Fish Lake represented approximately 0.4% of total angler days for Cariboo-Chilcotin lakes and 14% of the seven lakes monitored in the LSA (i.e., MU 4) (MOE 2006a). However, data deficiencies suggest the share of total angling activity supported by Fish Lake is actually lower than these estimates. In the SLIM dataset, no data were available for at least 40 lakes in the Cariboo-Chilcotin known to support fishing, including eight lakes in MU 4. Consideration of the activity on these lakes would presumably reduce Fish Lake’s share of total angling activity in the local and regional study areas. Aerial boat counts for the 2006 and 2007 summer seasons indicated Fish Lake to be one of the busier of the 32 lakes on the Chilcotin flight circuit, with regular, but low, use levels. Overall, fishing effort on the survey lakes declined by 36% between 2006 (479 boats observed) and 2007 (308 boats observed). During both years, Horn, Chaunigan,

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Bluff, Cochin, Sapeye and Big Onion lakes supported the most boats. Twenty-one boats were observed on Fish Lake in 2006 (ranked eighth highest) compared to only nine boats in 2007 (ranked seventh highest) (Jacques Whitford AXYS Ltd 2007a). A search of Internet websites featuring fishing in the Cariboo Chilcotin did find a reference to Fish Lake. Bcadventure.com, a privately-operated tourism website based in Williams Lake, did not list Fish Lake among the 88 fishing lakes in the region (Interactive Broadcasting Corporation 2007). The Chilcotin region has a viable steelhead sport fishery. There are 10 Class II39 rivers in the Cariboo-Chilcotin (the nearest to the LSA being the Chilco and the Chilcotin) and one Class I river (Dean River). In the late 1970s the Cariboo-Chilcotin steelhead fishery accounted for between eight percent and nine percent of provincial anglers and angler days and between 12 and 15% of all caught fish. By 2005–06 the region accounted for roughly 3% of anglers, angler days and fish caught (MOE 2007). The decline in steelhead activity on the Chilco and Chilcotin rivers has been more dramatic. At their peak in 1977 these two rivers accounted for one third of Cariboo-Chilcotin anglers (3% of BC steelhead anglers). In 2005–2006, this share declined to 6% of all Cariboo-Chilcotin steelhead anglers. There has been a substantial decline in freshwater angling activity in the last 20 years, both province-wide and in the Chilcotin region. The province supported 5.7 million angler days in 1985, compared to 4.4 million in 2005. Demographic change, including an ageing population and growing urban populations, may explain some of this decline, but other factors are involved. Increased competition from other outdoor activities has increased considerably, while increased costs, increased angling regulations and changing fish populations have affected angling behaviour (MSRM 2003b).

E.2 Guided Fishing The vast majority of anglers to the region are self-guided and do not use the services of an angling guide or lodge. However, many non-resident anglers and small percentage of resident anglers will hire a third party to package one of more services (travel, accommodation, food, guiding, equipment) to facilitate the fishing experience. The guided fishing and lodge sector is an important component of the local tourism industry. Quantifying guided fishing activity is difficult because angling guides can work alone or in conjunction with fishing lodges, and because most lodges will serve nature-based tourism clients other than fishermen. Some guests, although primarily engaged in outdoor activities such as hiking and wildlife viewing, may choose to participate in fishing as a secondary activity. In 2005, there were 22 individuals listed as freshwater angling guides for the Cariboo- Chilcotin in MOE’s guide directory. (Ministry of Water, Land and Air Protection, March 31, 2005; British Columbia Angling Guides) Of these, four were listed as being active in the RSA, including one registered outfitter and one lodge (Chaunigan Lake). BC Stats estimates 21 fishing lodges in the Cariboo-Chilcotin in 2005, with a room inventory of 193, or 9.1 rooms per facility. Room revenues were approximately $42,000 per facility, or $4500 per room. A substantial, but un-quantified, proportion of fishing lodge activity is associated with the steelhead fishery on classified waters. During the 10-

39 The classified waters of BC are highly productive trout streams. These streams are classified as Class I and Class II, according to the productivity and uniqueness. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 5-89 Prosperity Gold-Copper Project

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year period ending 2005, the number of fishing lodges, the number of rooms and room revenues all declined in the region (Figure 5-5).

1.5

1.25

1

Percent Change 0.75

0.5 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Revenues Properties Rooms

SOURCE: BC Stats (2006)

Figure 5-5 Cariboo-Chilcotin Fishing Lodge Activity, 1995–2005

Fishing lodges tend to be small operations, family-owned and operated, and seasonal in their operations. As already noted, lodges often cater to non-fishing clients. The proportion of guided to total angling days in the Cariboo-Chilcotin is believed reflective of the provincial experience. In 2000, approximately 17% of provincial freshwater angler days were attributed to guides/lodges (MSRM 2003b). Based on the 2000 fishing survey conducted for the Cariboo, this would generate approximately $1.46 million in guide services and $4.6 million in lodge revenues. Lodge revenues would include angler package expenditures on all services related to the fishing experience, and not just accommodation. The average number of jobs generated by freshwater fishing lodges in BC in 2000 was 4.7 (Table 5-29). This was equivalent to 1.6 person-years of employment. Average wages and salaries in 2005 dollars was $28,800, or $46,117 per operation. The average invested capital in guide/lodge operations was $398,000 (MSRM 2003b).

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Table 5-29 Socio-Economic Effects and Economic Value of Guided Fishing in the Regional Study Area Impacts Per Operation Socio-Economic Net Economic (2005 except where noted) Effect Value Total Employment - jobs per operation (2000) 4.7 PY of Employment - per operation (2000) 1.6 Wages and Salaries - per person-year $28,823 Total Wages and Salaries - per operation $46,117 Public Sector Rent (Licences and Taxes) - $ per client day $0.71 Industry Revenues - $ per client day $71.44 Net Economic Value (NEV) Estimate for Chilcotin Number of Client Days for LSA 85,056 Total Revenues 6,076,756 Guided services 1,458,421 Lodge/camp/resorts 4,618,334 Public Sector Rent - 5% of total revenues 303,838 Public Sector Rent - licences and taxes 60,768 Public Sector Rent - 5% of wages and salaries 106,343 Total Net Economic Value 470,949 NOTE: Package expenditures for lodges are only partially apportioned to accommodation and will cover other services such as transportation, food and equipment rentals. SOURCE: Modified from Jack and Levey (2003), MSRM (2003b). Expenditures and revenues updated to 2005 using the BC Consumer Price Index.

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Appendix 5-F Hunting Profile

The RSA consists of seven Management Units (MUs) 2, 3, 4, 5, 12, 13 and 14 within Region 5. The LSA falls predominantly within MU 4. Immediately adjacent to the west is MU 5 (Chilco Lake). The transmission line transects Mus 3 and 2, while Highway 20 transects Mus 12, 13 and 14. Large mammals frequent the area and include populations of moose, mule deer, white- tailed deer, mountain goats, black and grizzly bear, the northernmost extent of California bighorn mountain sheep, as well as the largest population of mountain caribou in BC. Regional and BC based game hunters arrive in the area primarily between September and November for the hunting seasons. There is a limited entry for moose throughout the region.

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Table 5-30 Big Game Hunting and Harvest Activity in the Study Area, 1996-2005 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Resident Hunters in the Regional Study Area (Mus 5-2, 5-3, 5-4, 5-5, 5-12, 5-13, 5-14) Number of hunters 13,343 15,283 17,500 10,345 11,059 11,367 11,207 11,687 12,130 12,823 Hunter days 84,581 99,478 113,791 68,911 72,855 87,583 74,465 74,972 85,882 85,788 Number of kills 3,976 4,832 4,788 2,954 3,922 4,606 4,663 5,824 5,867 6,282 Expenditures $3,956,566 $4,645,467 $5,378,445 $3,308,824 $3,597,109 $4,351,123 $3,842,275 $3,899,385 $4,676,648 $4,657,704 Consumer Surplus $4,044,674 $4,778,406 $5,508,653 $3,393,497 $3,712,823 $4,455,855 $3,963,018 $4,045,228 $4,770,140 $4,854,319 Non-resident Hunters Regional Study Area (Mus 5-2, 5-3, 5-4, 5-5, 5-12, 5-13, 5-14) Number of hunters 419 502 483 560 802 880 810 846 926 822 Hunter days 2,393 2,700 2,388 3,289 4,619 4,938 4,189 4,416 5,096 4,371 Number of kills 197 237 220 225 311 337 319 413 342 320 Expenditures $850,946 $960,713 $888,570 $1,214,949 $1,826,147 $1,997,905 $1,765,150 $1,913,683 $2,167,786 $1,923,052 Consumer Surplus $157,092 $180,552 $156,158 $222,045 $301,290 $327,757 $287,601 $307,961 $365,069 $320,558 Resident Hunters Local Study Area (MU 5-4) Number of hunters 584 763 825 667 769 602 608 664 639 572 Hunter days 3,920 4,642 8,204 4,429 5,194 3,990 3,739 3,939 4,419 4,318 Number of kills 163 231 193 186 237 176 203 270 220 151 Expenditures $190,894 $220,939 $404,630 $219,925 $260,384 $207,827 $202,375 $212,391 $243,568 $243,533 Consumer Surplus $192,236 $227,127 $378,689 $220,244 $264,928 $207,606 $199,391 $217,336 $251,629 $251,541 Non-resident Hunters Local Study Area (MU 5-4) Number of hunters 88 101 113 65 98 105 109 132 163 111 Hunter days 515 557 524 363 583 531 538 717 898 591 Number of kills 33 34 50 27 31 34 40 39 48 33 Expenditures $180,871 $203,192 $204,987 $130,546 $228,155 $211,995 $231,905 $296,532 $376,111 $247,236 Consumer Surplus $33,398 $38,641 $35,043 $25,165 $37,987 $35,303 $36,572 $51,597 $64,575 $44,186 SOURCE: Fish and Wildlife Branch (2007a)

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Hunter harvest and effort data for the RSA and LSA for the last 10 years is shown in Table 5-31. For the RSA, the number of resident hunters declined between 1996 and 2005, although the number of hunter days was similar. The number of kills rose dramatically from 3976 in 1996 to 6282 in 2005. The number of non-resident hunters and their harvests also rose substantially during this time. Total expenditures for resident and non-resident hunting in the RSA were $6.6 million in 2005. For the LSA, the number of hunters remained virtually unchanged between 1996 and 2005, but the effort they expended rose, while their harvest declined (Table 5-31). Close to $0.5 million was spent in 2005 in harvesting 184 big game species. Black bear, cougar, goat, sheep, deer, moose and wolf are regularly harvested.

F.1 Resident Hunting Hunting activity, expenditures and values for resident hunters in the RSA during 2005 are shown in Table 5-31. Average expenditures are estimated at $54 per hunter day or $363 per hunter, leading to total expenditures of $4,657,000. Government revenues are estimated at an additional $860,000. The net economic value40 of hunting in the RSA will vary according to the literature and research cited. The estimates presented in the table range from a low of $1.4 million (Environment Canada) to a high of $4.9 million (Fish and Wildlife Branch).

Table 5-31 Socio-Economic Effects and Economic Value of Resident Hunting in the Regional Study Area, 2005 Hunter Expenditures Total Activity Per Hunter Per Hunting Day Transportation $1,778,292 $139 $21 Food, Beverages & Accommodation $931,486 $73 $11 Equipment $1,016,167 $79 $12 Taxidermy & Butchering $254,042 $20 $3 Hunting Fees $338,722 $26 $4 Other $338,722 $26 $4 Total $4,657,000 $363 $54 Government Revenues Hunting Licences $410,336 $32 Tags41 $384,690 $30 Other $64,115 $5 Total $859,141 $67 Net Economic Value Environment Canada $1,418,000 $212,000 $16.57 Ministry of Environment $4,857,000 $726,000 $ 56.59 SOURCE: Modified from BC Stats (August 12 2005), MSRM (March 2003), Environment Canada (1996), Fish and Wildlife Branch (2007a).

40 Value of enjoyment received but not paid for (i.e., in excess of actual expenditures), as measured by willingness to pay. 41 Tag costs range widely from $8 (Lynx) to $80 (Grizzly Bear). March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 5-95 Prosperity Gold-Copper Project

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F.2 Guide Outfitting Non-residents of British Columbia hunting big game must be accompanied by a licensed BC guide. The number of non-resident hunters in the RSA and LSA over the last 10 years is shown in Table 5-30. There are 47 registered guide outfitters in Cariboo region, 45 of which are licensed to MOE to operate in the RSA. This is down slightly from the 50 operators licensed in 1996, a trend which is evident province-wide (Pacific Analytics 2003). The Cariboo has the third most outfitters, after the Peace-Omineca and the Skeena, of British Colubmia’s eight management regions. Guide-outfitters offer a variety of species and hunts, but in the RSA moose and black bear account for the bulk of hunter effort, harvest and expenditures. Province-wide, the geographic origin of guide-outfitters clients is 85% US, 4% German, 6% and Other Europe. Residual markets include Other Canada and Overseas (Pacific Analytics 2003). Project components will intersect with the registered territories of eight guide-outfitters (Table 5-32). The area affected, 23,802 ha, represents about 1% of the total area licensed to these operators by the province.

Table 5-32 Area Summary of Registered Guide Territories Intersected by Project Components Guide-Outfitter Total Mine Mine Buffer Transmission Access Total Area Licence Area Footprint Buffer Road Affected by Project Components Collins 92,515 2,002.0 2,273.8 811.8 466.7 5,554.3 100% 2% 2% 1% 1% 6% Keeler 85,077 698.2 6,327.0 414.4 1,092.5 8,532.1 100% 1% 7% 0% 1% 10% Reuter 151,145 1,938.4 4,769.6 6,708.0 100% 1% 3% 0% 0% 4% Hawkridge 261,674 231.5 231.5 100% 0% 0% 0% 0% 0% Hoessl 45,262 530.1 530.1 100% 0% 0% 1% 0% 1% Elliot 1,409,534 699.2 699.2 100% 0% 0% 0% 0% 0% Lancaster 173,192 1,493.2 1,493.2 100% 0% 0% 1% 0% 1% Petal NA 54.0 54.0 0% 0% 0% 0% 0% Total 2,218,399 4,638.6 13,601.9 3,948.7 1,613.2 23,802.3 100% 0% 1% 0% 0% 1% SOURCE: Jacques Whitford AXYS Ltd. GIS Analysis

The socio-economic effects of guide-outfitting operations in the RSA are shown in Table 5-33. The effects apply only to guided hunting operations and not to other revenue

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streams that guide-outfitters may obtain. According to a 2003 study of the guide- outfitting industry, hunting accounted for 62% of total revenue among Cariboo operators. Based on an average hunter expenditure of $440 per day, total revenues to the industry are estimated to be $1.9 million. Person-years of employment are estimated to be 25.7, while net economic value is estimated to be $330,360.

Table 5-33 Socio-Economic Effects and Economic Value of Guide-Outfitting in the RSA Socio-economic Net Economic Value Effects Total Employment (number of jobs) 57.5 Total Employment (person-years) 25.7 Wages and Salaries - $ per PY $29,224 Total Wages and Salaries $750,064 Public Sector Rent (Licences and Taxes) - $ per client day $45 Industry Revenues - $ per client day $440 Net Economic Value (NEV) Estimate for RSA Number of Client Days for LSA 4,371 Total Revenues (4,371 client days @ $440 per day) $1,923,240 Public Sector Rent–5% of total revenues $96,162 Public Sector Rent - licences and taxes $196,695 Public Sector Rent–5% of wages and salaries $37,503 Total Net Economic Value $330,360 NOTE: Per outfitter coefficients for the RSA are not possible due to overlaps between outfitter territories and management units. SOURCE: Adapted from Pacific Analytics (2003); Fish and Wildlife Branch (2007a)

F.3 Hunting Trends The number of British Columbians who hunt has been declining. Roughly 2% of BC residents were active hunters in 2003, down from 6% in 1981. Between 1991 and 2003, licence sales to BC residents fell from nearly 121,700 to 81,500, suggesting that the number of hunters has declined in both relative and absolute terms. A variety of factors, including shifting consumer preferences, restricted access to the stock of wildlife available to hunters in the province, and fluctuations in the population of some species may explain the long-run decline in hunting participation (BC Stats August 12, 2005). The number of resident hunters in the RSA has also declined but not as much as for the province. Other regions with greater urban populations, notably Vancouver Island, the Lower Mainland and the Okanagan, have experienced much greater declines. This could be an indication that total hunter effort is shifting to less populated and more productive habitats in the province.

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Appendix 5-G Public Recreation Profile

Recreation is defined to include all public/self-guided recreation that does not include commercial recreation for which a fee is paid. Using this broad definition, self-guided recreation may be undertaken by individuals who are not local residents. In the RSA, most recreation activity takes place outdoors due to the proximity to an abundance of natural settings and opportunities. Because the vast majority of land in the RSA is publicly owned, outdoor recreation requires access to Crown land for recreational opportunities, infrastructure and access.

G.1 Land Use The ROS is used by resource managers to establish targets for recreation. The classification system characterizes the type of recreation experience that either a commercial or non-commercial recreationist would have based on various criteria, including remoteness, size, evidence of human presence, social setting, setting characterization and experience characterization. The area distribution of ROS class (Table 3-38), shows the LSA to be a combination of semi-primitive and roaded resource land, with no primitive lands. The mine site and mine buffer are less developed than the areas surrounding the transmission line and access road.

Table 5-34 Percent Distribution of Recreation Opportunity Spectrum in the Local Study Area Total Local Mine site Mine site Transmission Access Road Study Area Buffer Buffer Primitive 0% 0% 0% 0% 0% Semi-Primitive 42% 31% 57% 21% 22% Roaded Resource Land 34% 7% 22% 72% 69% Unclassified 24% 62% 20% 8% 9% Total 100% 100% 100% 100% 100% SOURCE: Jacques Whitford AXYS Ltd. GIS Analysis

The LSA was not identified as a critical tourism and recreation area in the Cariboo Chilcotin Land Use Plan. The Chilcotin and Williams Lake Sustainable Resource Management Plans (SRMPs) have identified recreation values and targets in their respective study areas, including visual quality, trail management, lake management and wildlife habitat (see Appendix 5-A.1).

G.2 Provincial Parks BC Parks is responsible for the designation, management and conservation of a system of ecological reserves, provincial parks and recreation areas located throughout the province. These contain many of the best representative elements and special features of British Columbia's natural heritage.

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The parks closest to the LSA are Nuntsi Park, Big Creek Park, Ts'ilos Provincial Park and Bull Canyon. Nuntsi and Big Creek parks are wilderness areas and do not provide overnight camping or day-use facilities. BC Park attendance in the Chilcotin is limited to those with campsites. These are Tweedsmuir (south) with 42 campsites (includes Atnarko and Fisheries Pool), Ts'ilos Provincial Park with 24 campsites (includes Nu Chugh Beniz and Gwa Da Ts’ih) and Bull Canyon with 20 sites. Attendance estimates for 2006 are shown in Table 5-35. Figures for the day use sites are not accurate due to the absence of road counters during the peak seasons. The total gross income generated for the summer of 2006 equalled approximately $34,094.

Table 5-35 Provincial Park Activity in the Regional Study Area, 2006 Number Number of Number of Fees of Day Gross Park Hectares Drive-in Campsite $/Night Use Revenues Campsites Parties Parties Tweedsmuir (south) 506,000 14 28 614 1687 8,596 Atnarko Fisheries Pool 14 14 608 5072 8,512 Ts'ilos Provincial Park 233,240 10 16 377 450 3,770 Nu Chugh Beniz Gwa Da Ts'ih 10 8 238 NA 2,380 Bull Canyon 369 14 20 774 5295 10,836 Total 86 2,611 12,504 $34,094 NOTE: Data are not available for Junction Sheep Range SOURCE: BC Parks (2007)

G.3 Recreation Sites and Trails The Recreation, Sites and Trails section within the Ministry of Tourism, Sports and the Arts (MTSA) is responsible for managing recreation opportunities within Crown lands with a focus on the management of camping sites and recreation trails. There are approximately 39 recreation sites with over 1740 campsites in the RSA. Twenty four of the sites provide boat launch infrastructures. Four of the recreation sites are managed with fees, 24 are maintained with no fees and the remaining 6 are user maintained. In the LSA, a total of seven recreation sites (Big Lake, Chaunigan Lake, Davidson Bridge, Chilko-Taseko Junction, Fletcher Lake, Vedan Lake and Fish Lake) with a total of 23 campsites, are available for public use. Only Big Lake charges fees, the rest are user maintained. All with the exception of Vedan have boat launches. The primary use of the recreation sites is camping, fishing and nature viewing (Harris, Eastwood, pers. comm.). MTSA does not maintain attendance numbers for user maintained sites. Big Lake is the only lake lying within the LSA.

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G.4 Activities and Use The majority of public recreation user days are believed dominated by fishing and hunting, both of which are profiled in subsequent sections of this report. Non- consumptive recreation activities in the RSA include camping, hiking/backpacking, nature study/wildlife viewing and trail riding. Canoeing/kayaking, All Terrain Vehicle (ATV), snowmobiling and cross-country skiing also take place. Reliable estimates of public recreation use in BC and in the region are not available. A 2003 study of recreation use on the BC coast was the first rigorous analysis done in the province since the late 1980s; however, interior regions of the province were not included (Economic Planning Group 2003). Applying the assumptions of the 2003 recreation study to the RSA indicates close to 2.5 million user days for outdoor recreation activity other than hunting and fishing, 653,000 user days when nature study is not counted.

G.5 Value of Public Recreation The net economic value is the estimate of the monetary value of a resource which might exist if it were owned by a single individual and a market existed for its use. For non- commercial recreation, net economic value can be expressed as the sum of the expenditures incurred to undertake recreation, plus the participant’s willingness to pay over and above that amount before they were willing to forego the activity. Estimates of net economic value for outdoor recreation vary widely according to the activity undertaken. Different studies often attribute different values to the same activity. In Table 5-36, the average daily expenditure of $33.69 is a weighted average of five outdoor activities (hiking, kayaking/canoeing, trail riding, ATV riding, snowmobiling) using expenditure estimates from a 2003 study of coastal BC outdoor recreation undertaken by the Outdoor Recreation Council (Economic Planning Group 2003). The high end of daily expenditures was snowmobiling ($59), while the low end was trail riding ($20). Total expenditures amount to $29.2 million. Environmental Canada estimated the net economic value of outdoor activities other than hunting and fishing to be $8.20 per day in 1996. At a conservative net economic value of $9.43 per recreation day in 2005, the 568,026 recreation activity days (excluding nature study) result in a net annual economic value of $6.2 million42.

Table 5-36 Value of Public Recreation in the Cariboo-Chilcotin Total User Days 2,451,578 Nature Study 1,798,436 Other outdoor recreation activities 653,142 Expenditures Total Per User Day Nature study 7,193,744 $4.00 Other outdoor recreation activities 22,004,881 $33.69 Total expenditures 29,198,625 Net Economic Value 6,162,323 $9.43 SOURCE: Modified from Jack and Levey 2003; Economic Planning Group (2003); Environment Canada (1996). Expenditures and revenues updated to 2005 using the BC Consumer Price Index.

42 The exclusion of nature study from this estimate because of its low daily expenditure and associated low willingness to pay results in a conservative bias. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 5-101 Prosperity Gold-Copper Project

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Appendix 5-H Tourism Profile

Tourism is defined here as employment and income generated by the spending of non- resident travellers to the region on such activities as accommodation, food, transportation and outdoor activities.

H.1 Overview The tourism economy in the RSA is dominated by touring travellers who arrive and depart the region along Highway 97. Many travellers are en route to other destinations, including Alaska, while some are attracted by the region’s wilderness, lakes, rivers, scenery, wildlife, local culture and ranching experiences. The more remote Chilcotin attracts mainly outdoor adventure enthusiasts who hunt, camp, fish, trail ride, hike, boat, snowmobile and enjoy the nature and wildlife that the area has to offer. The Chilko Resorts and Community Group has stated that local wilderness lodges and other tourism businesses provide most of the jobs and represent the dominant local economy (White et al. 2001).

H.2 Land Use The GIS area analysis indicated that there are only two tourism facilities (other than fishing and hunting guide operators) within or near Project components (Table 5-37). The two facilities are located on the access road (Lees Corner and Scum Lake). The only tourism feature within the boundaries of the Project components was the Fish Lake recreation site.

Table 5-37 Summary of Tourism Facilities and Features Intersected by Project Components Mine site Mine site Access Road Transmission Total Buffer Buffer Line Buffer Number of Existing Tourism Facilities (count) 0 0 2 0 2 Rec/Tourism–Features (count) 1 0 0 0 1 Rec/Tourism–Travel Routes (50 m buffer) 33 343 512 47 942 Visual Landscape Inventory–Retention 47 2,322 0 13 2,384 Visual Landscape Inventory–Partial Retention 1,333 1,415 0 14 2,765 Visual Landscape Inventory–Modification 3 663 314 303 1,347 Visual Landscape Inventory–Not Visually Sensitive 111 350 0 0 466 Visual Landscape Inventory–N/A 2,925 8,852 1,428 4,740 18,862 SOURCE: Jacques Whitford AXYS Ltd. GIS Analysis

H.3 Travel Indicators The provincial tourism economy has experienced turbulence in the last four to five years due to the combined effects of an appreciating currency, Severe Acute Respiratory Syndrome (SARS), rising gas prices, the Iraq war and passport and security issues. The

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volume of visitors, especially among key US markets, has been declining, and while future forecasts remain positive, many BC regions continue to experience volatility in their tourism sectors. In the RSA, room revenues have increased steadily during the six-year period ending in 2005, mainly because of price increases (Table 5-38). The actual number of facilities and rooms did not change substantially. Attendance at Tourism BC-sanctioned Visitors Centres (VCs) showed four consecutive years of decline between 2001 and 2004, but showed gains in 2005.

Table 5-38 Regional Tourism Indicators, 2000-2005 Indicator 2000 2001 2002 2003 2004 2005 Total Overnight Custom Entries– 5,049,995 5,021,835 5,134,341 4,735,387 4,946,858 4,888,829 BC % change 3.9% (0.6)% 2.2% (7.8)% 4.5% (1.2)% Room Revenue ($000)–Cariboo- 21,032 20,876 21,482 21,621 22,424 23,622 Chilcotin Coast % change 7.5% (0.7)% 2.9% 0.6% 3.7% 5.3% Visitor Centres–total parties 37,847 36,002 34,662 34,241 32,204 34,871 % change 17.6% (4.9)% (3.7)% (1.2)% (5.9)% 8.3% SOURCE: Tourism BC (2006)

H.4 Accommodations In the RSA, a total of 90 accommodation facilities include hotels (2), motels (16), lodges/resorts (21), adventure tourism operators providing wilderness camps or huts (18), cabins/cottages (20), guest ranches (9) and Bed and Breakfasts (6). With the possible exception of the hotels, accommodation providers offer recreation activities and associated services. Many, particularly the lodges and ranches, provide multi-day packages. Operators will often arrange for connecting services from Vancouver International Airport and transport from local fly-in lakes or airports. Ten of the accommodation providers identify fresh water fishing as a primary activity. Eight of the wilderness camps/huts providers identify guide outfitting services as their primary operation and six identify river rafting along the Blackwater, Chilko, Chilcotin and Fraser Rivers, as their principal activities. Thirteen accommodation providers identify horse riding/packing as their primary activity. In the LSA, 18 accommodation providers include 1 hotel, 2 motels, 5 lodges, 1 cabin, 6 guest ranches and 3 B&Bs (Table 5-39). The significance of the tourism in the area is reflected by the numbers and variety of accommodation in this remote and distant area. Accommodations include over 130 units with a variety of fees ranging from $55 a night for a rustic cabin to $360 a night for an all inclusive package. A survey of accommodation providers in the West Chilcotin (Chilko, Nemiah Valley and Tatlayoko) revealed that they were all open during the peak season (June to August) with fifty-seven percent indicating that they were open all year (White et al. 2001). High

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numbers of operators open in September and October is a reflection of the importance of fishing and the fall hunting season. Occupancy for all accommodation operators in the summer months were either full (over 85%) or strongly occupied (55 to 85%). For the fall, 60% of those open reported being full or strongly occupied. For the winter and spring months, 80% of all operators were either closed or experienced low occupancies (i.e., under 55%).

Table 5-39 Hotel, Motel and Resort Accommodations in the Local Study Area Type Number Number Total of of RV Number Rooms Sites of Units Chilcotin Hotel Hotel 8 5 13 Cook Shack Motel Bed And Breakfast Motel 6 6 Lee’s Corner Motel 8 8 Tsuniah Lake Lodge Ltd. Lodge 10 10 Ts'yl-Os Park Lodge and Adventures Lodge 9 9 Big Creek Lodge Lodge 7 7 Chaunigan Lake Lodge Lodge 9 9 Chilko Lake Resort & Guest Ranch Lodge 32 32 Konni Lake Resort Cabins 3 3 Solaris Guest Ranch Ranch NA NA T H Guest Ranch Ranch NA NA Twilight Ranch Ranch NA NA Vedan Ranch Ranch NA NA Charly's Guest Ranch Ltd. Ranch 6 6 Elkin Creek Guest Ranch Ranch 19 19 Chilcotin Lodge Country Inn Bed and Breakfast B&B 10 10 Colgate B&B B&B 2 2 Riske Creek Roadhouse B&B NA NA 130+ 130+ SOURCE: Internet search, December (2006)

H.5 Other Outdoor Tourism Operators According to Tourism BC, the RSA has a total of 168 outdoor adventure companies, but only 47 businesses, when fishing lodges, guide outfitters and resorts are excluded. These companies offer rafting (6), kayaking/canoeing (5), mountain biking (1), winter activities (2) and general land-based summer guiding (33) which can include hiking, trail riding, photography or nature observation (Tourism BC July 2007). Many of these operators utilize the Crown land base for commercial purposes and in so doing are required to obtain commercial recreation tenures from the Ministry of Tourism Sport and the Arts. The GIS area analysis shows 13 commercial recreation tenures overlapping with Project components (Table 5-40). There are also four applications for commercial recreation

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tenure on file with the Integrated Land Management Bureau. These are all for guided freshwater recreation (rafting).

Table 5-40 Count of Commercial Recreation Tenures Intersected by Project Components Mine Site Mine Site Access Road Transmission Total Buffer Buffer Line Buffer Number of Licences of Occupation–multiple use 4 5 5 5 12 Number of Licences of Occupation–trail riding 0 0 0 1 1 SOURCE: Jacques Whitford AXYS Ltd. GIS Analysis

Our discussions with MTSA also showed several tenures in the general area of the mine site that would not appear in the GIS analysis because they do not overlap with the Project components. These tenures are shown in Figure 5-6. A total of nine tenures include five owned by guide outfitters. Our base case description of guide outfitting in the LSA attributed a portion of total outfitting revenues to non- consumptive uses so activity related to these five tenures is already accounted for. The other four licensees all engage in horseback/trail riding and/or hiking, while one lodge has winter activities listed. Total user days for these licensees since 2001 are as shown in Table 5-41. In the first four years only two operators were active and they guided around 350–500 clients per year each. These two operators do mainly trail riding and hiking. One of these operators also offers winter activities. In 2005/06 two more tenured operators were registered. One is not yet in operation and has claimed no client days, while one of the original operators did not submit client day forms for that year. Actual client days for 2005–06, as shown in the table, are therefore underestimate and are likely similar to 2003–04 levels (Macrae, pers. comm.).

Table 5-41 Commercial Recreation Tenure User Days, 2001-2006 2001-02 2002-03 2003-04 2004-05 2005-06 User Days 771 1,013 1,088 932 826 SOURCE: MTSA 2007.

H.6 Visitor Markets The most reliable visitor profile for the study area is from the BC Visitor Study, which is now nine years old. In 1996, 1.7 million visitors travelled to the Cariboo-Chilcotin coast region for a day or overnight trip, representing 6% of all BC visitors. Of these, 60% were BC residents and 40% non-residents. The total tourism revenue of $198 million represented 2% of all BC tourism revenue. Non-residents generated 33% of regional tourism revenue and residents 67%. Resident visitors spend an average of $40 per day and $128 per stay in the region, while non-residents spend $36 per day and $95 per stay (Tourism British Columbia 1998).

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Major geographic markets include the Greater Vancouver Regional District (22%), south BC (20%), Canada regional (12%), US regional (11%) and north BC (11%). Long haul markets, whether from the US or overseas, represent a small share of total visitor volumes. The majority of BC residents travelling in the Cariboo-Chilcotin coast favour summer travel, but about one in five travel in the winter. Summer travel is even more popular among non-resident visitors. Land-based outdoor activities, sightseeing, fishing, boating, photography and visiting historic sites were popular activities.

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SOURCE: MTSA 2007

Figure 5-6 Commercial Recreation Tenures in the LSA

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H.7 Visitation and Expenditures According to Tourism BC’s Visitor 98 study, 6% of all visitors to BC spent part of their trip in the Cariboo (Tourism BC 1998). Assuming the relative distribution of visitors among BC regions has not changed in the last 10 years, applying this share to Tourism BC’s estimate of 2004 visitation to the province indicates a Cariboo visitor market of approximately 1.7 million visitors. Visitor 98 also estimated the percentage of Cariboo visitors visiting the Chilcotin at 3%, which would imply a visitor market of approximately 50,000. The BC Visitor Study for the Cariboo showed that 18% of all expenditures by visitors are for accommodation (Tourism BC 1998). Cariboo-Chilcotin room revenues in 2005 were $23.6 million (Table 5-38), implying total visitor spending of approximately $130 million.

H.8 Economic Value Estimates of the socio-economic effects and economic value of tourism are shown in Table 5-42. According to a 2006 survey of tourism operators in the Cariboo-Chilcotin, the industry generated 3442 direct jobs and 2345 person years of direct employment. Employment income was $56.9 million, total economic output $129.8 million, while government revenues totalled $47.8 million (Intervistas Consulting Inc. 2006). The net economic value, which includes economic rent from both operators (5% of total revenues) and labour (5% of wages and salaries), totalled $9.3 million.

Table 5-42 Socio-Economic Effects and Economic Value of Tourism in the Cariboo-Chilcotin Cariboo-Chilcotin Coast Chilcotin Number of visitors–2005 1,700,000 50,000 Visitor expenditures–2005 130,000,000 3,800,000

Total Employment–jobs 3,442 400 Accommodation 2,324 Outdoor recreation 301 Other 817 Total Employment–person-years 2,345 300 Accommodation 1,608 Outdoor recreation 145 Other 592 Employment income 56,900,000 1,700,000 Output 129,800,000 3,800,000 Government Revenue 47,800,000 1,400,000 Net Economic Value 9,300,000 300,000 NOTE: Estimates are for all tourism activity and will include hunting and angling. SOURCE: Tourism BC (1998), Intervistas Consulting Inc. (2006), estimates of 2005 visitor market and expenditures, and Chilcotin economic effects other than employment, by Lions Gate Consulting Inc.

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Appendix 5-I Trapping

Registered trapping activity is administered by the BC Ministry of Environment. The registered trap line system is the primary system for setting harvest guidelines and managing furbearing animals. In 1926, the province was divided into registered trap lines, giving the trap line owner the exclusive right to trap furbearing animals inside the trap line area (BC Trappers Association www.bctrappers.bc.ca). Harvest levels are guided by species management strategies, with furbearers being divided into three classes: • Class 1—Species managed on individual trap lines including beaver, fox, marten, mink, muskrat, raccoon, skunk, squirrel, weasel. • Class 2—Species move between and among trap lines and are managed regionally in consultation with local trappers and includes lynx, bobcat, wolverine, fisher, and otter. • Class 3—Species also move between and among trap lines, but generally are not vulnerable to over-trapping. This class includes the wolf and coyote (BC Ministry of Environment www.env.gov.bc.ca/fw). In general, appropriate trapping seasons have been developed by considering a variety of criteria including pelt primeness, relative vulnerability of age and sex classes to harvesting, abundance, and capture technology. The Prosperity Mine Project falls within Region 5 of the BC Ministry of Environment’s Cariboo Management Region. This Region is further broken down into Wildlife Management Units with the study area including eight separate Management Units: 5-3, 5-4, 5-5, 5-6, 5-10, 5-12 and 5-13 (these MUs are considered the RSA for trapping). There are no trap lines registered in Wildlife Management Unit 5-3. The LSA is the Project footprint. Table 5-43 outlines the specific trap lines in the RSA with data from MU 5-4 representing the LSA. The Ministry of Environment records fur harvest returns for all registered trap lines in the province. Trapping activity and the number of animals harvested can vary greatly from year to year. The average number of animals by species, their average selling price, and the average royalty paid to the province for the trap lines in the RSA are outlined in Table 5-44. As illustrated, the 58 trap lines in the RSA generate a modest amount of direct revenue of approximately $34,400 per year. However, for many individuals involved in trapping, the activity also has a high recreational value and is an important element of their overall lifestyle. Also, the income earned by the local trapper is only the initial or wholesale value of the overall fur trading activity. In Canada, the fur trade industry is estimated to contribute approximately $800 million to the Canadian GDP, with only $25 million of this being made up of wild fur sales43. The 58 trap lines in the RSA will generate approximately $2320 in trapping licence fees annually with this amount including the surcharges for the Habitat Conservation Trust

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Fund. In addition the region will contribute approximately $965 annually in royalties for the furbearing animals taken from the RSA.

Table 5-43 Trap Line Identification by Wildlife Management Unit, 2003 Region 5, Wildlife Management Unit 4 (MU 5-4) TR504T001 TR504T002 TR504T003 TR504T005 TR504T009 Region 5, Wildlife Management Unit 5 (MU 5-5) TR505T003 TR505T006 TR505T007 Region 5, Wildlife Management Unit 10 (MU 5-10) TR5010T001 TR5010T002 TR5010T003 TR5010T006 TR5010T006 TR5010T008 TR5010T009 Region 5, Wildlife Management Unit 12 (MU 5-12) TR5012P0017 TR5012T001 TR5012T005 TR5012T008 TR5012T011 TR5012T012 TR5012T015 TR5012T017 TR5012T018 TR5012T019 TR5012T020 TR5012T021 TR5012T022 TR5012T025 TR5012T026 TR5012T027 TR5012T028 Region 5, Wildlife Management Unit 13 (MU 5-13) TR5013PT001 TR5013P004 TR5013P025 TR5013P026 TR5013T001 TR5013T003 TR5013T005 TR013T006 TR5013T011 TR5013T012 TR5013T013 TR5013T015 TR5013T018 TR5013T019 TR5013T020 TR5013T024 TR5013T025 TR5013T026 TR5013T031 TR5013T032 TR5013T033 TR5013T035 TR5013T044 TR5013T045 TR5013T046 TR5013T053 SOURCE: BC Ministry of Environment

Table 5-44 Average Annual Trapping Harvest for the RSA, 1999–2005 Animal Species Number Avg. Price Avg. Annual Avg. Avg. Annual Harvested Harvested Revenue Royalty Royalty Revenue Bear 6 $121.53 $746.54 $3.26 $20.03 Beaver 381 $25.10 $9,568.71 $0.80 $306.42 Coyote 150 $36.71 $5,507.18 $0.98 $146.62 Fisher 88 $41.30 $3,619.28 $1.03 $89.87 Fox 69 $32.21 $2,213.53 $0.84 $57.61 Lynx 137 146.21 $20,009.69 $3.47 $475.41 Marten 848 50.07 $42,467.55 $1.32 $1,123.44 Mink 69 17.67 $1,226.62 $0.55 $38.07 Muskrat 233 2.64 $614.27 $0.08 $18.28 Otter 67 144.50 $9,619.67 $3.27 $218.02 Squirrel 1415 1.58 $2,237.40 $0.05 $70.11 Weasel 287 5.21 $1,494.99 $0.16 $45.68 Wolf 12 96.26 $1,168.92 $2.89 $35.15 Wolverine 7 227.35 $1,656.42 $7.50 $54.61 Total $102,150.77 $2,699.32 NOTE: RSA–MU 5-2, 5-3, 5-4, 5-5, 5-12, 5-14 LSA–MU 5-4 SOURCE: BC Ministry of Environment, January 2007.

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Table 5-45 highlights the fur harvest numbers and revenue for the LSA for the period 1999 to 2003.

Table 5-45 Average Trapping Harvest Numbers and Values for the LSA (MU5- 4), 1999–2005 Animal Species Total Harvest Avg. Price Avg. Annual Avg. Royalty Avg. Annual Harvested Over Period Revenue Royalty Bear 3 $109.91 $65.95 $3.76 $2.25 Beaver 42 $25.52 $214.34 $0.96 $8.45 Coyote 3 $27.84 $16.70 $0.82 $0.49 Fisher 20 $34.82 $139.27 $1.37 $5.48 Lynx 17 $85.09 $723.29 $2.92 $24.84 Marten 19 $43.72 $415.35 $1.37 $12.97 Mink 3 $17.94 $26.92 $0.64 $0.96 Squirrel 99 $1.00 $49.32 $0.06 $2.95 Weasel 35 $4.76 $83.30 $0.17 $2.98 Wolf 1 $79.08 $15.81 $3.28 $0.66 Wolverine 6 $131.24 $310.63 $3.63 $8.64 Total $2060.88 $70.67 SOURCE: BC Ministry of Environment, January 2007. Note: No fur-bearers were taken in 2004 and 2005.

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6 Human Health and Ecological Risk Assessment

This section examines the potential effects of the Project on human and ecological health, specifically related to potential chemical releases to the environment. This assessment of environmental effects involved both quantitative and qualitative risk assessment methods. Human and ecological health have been identified as VECs given their potential to be exposed to chemicals released during the construction, operation, closure, and post- closure phases of the Project. Potential chemical releases to the environment will vary depending on the Project phase, and may include releases to air, deposition of dust on soils, and controlled releases into the watershed. In addition, potential effects of chemical spills to land and water were also evaluated. This assessment relies on results provided in other sections of the EIS, including: • Volume 4, Section 2: Atmospheric Environment • Volume 5, Section 2: Water Quality and Aquatic Ecology • Volume 5, Section 4: Terrain and Soils A baseline chemical risk assessment of human ingestion of country foods and ecological risk is provided in the Taseko Prosperity Gold-Copper Project Baseline Technical Data Report (Appendix 6-6-A). The results of this baseline study are summarized within this assessment and provide the basis upon which potential chemical changes in the environment, as a result of Project activities, can be compared. Based on the assessment, approaches for mitigation and monitoring of environmental effects are provided for the protection of human and ecological health. Potential chemical effects on the aquatic environment are not considered in this assessment and are provided in Volume 5, Section 2: Water Quality and Aquatic Ecology.

6.1 Scope of Assessment for Human and Ecological Health This section outlines the scope and process used for the assessment of potential effects from chemical releases from the Project on human and ecological health. Mining activities such as grading, blasting, extraction, heavy machine operation, concentrating, tailings storage, and transport of ore concentrate have the potential to release chemicals and dust into the environment. The human health and ecological risk assessment (HHERA) determines what, if any, affect these chemical releases would have on human and ecological receptors in the area. As the area surrounding the Project is used for subsistence hunting and fishing, trapping, and recreation, and there is a community within 20 km of the site (Volume 6, Section 5), particular attention has been paid to potential risks posed to traditional and recreational users of the area. Risk assessment components relate to potential health effects associated with exposure to changes of chemical concentrations in environmental media, including air, soil, surface water, sediment, vegetation and fish tissue.

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6.1.1 Regulatory Setting The HHERA was conducted to fulfill the environmental assessment (EA) requirements under the Canadian Environmental Assessment Act (CEAA) and the British Columbia Mines Act. It was prepared in accordance with the Prosperity Gold-Copper Project: Project Report Specifications (Prosperity Project Committee 1998), the EIS Guidelines (2009) and considered the British Columbia Environmental Assessment Office’s (BC EAO) Mine Proponent’s Guide: How to Prepare Terms of Reference and an Application for an Environmental Assessment Certificate (BC EAO 2006). The BC EAO guidance document refers to health as an independent VEC, and indicates that reporting of human health effects should bring together information from a variety of disciplines including air, water, noise and fauna and flora used as country foods (BC EAO 2006). Risk assessments vary in complexity and their nature from qualitative, preliminary quantitative and detailed quantitative risk assessment. However, the EAO guidance document does not provide clear direction as to what level of risk assessment should be conducted for a mining EA. Therefore, guidance for preparing the HHERA was extracted from: • Federal Contaminated Sites Risk Assessment in Canada, Part I: Guidance on Human Health Risk Preliminary Quantitative Risk Assessment (PQRA), Version 2 (Health Canada 2004). • Protocol 13 for Contaminated Sites. Draft Screening Level Risk Assessment. (BC MOE 2007). • Technical Guidance on Contaminated Sites. Supplemental Guidance for Risk Assessment (BC MOE 1997). • Ministry of Environment. Protocol 1.Recommended Guidance and Checklist for Tier 1 Ecological Risk Assessment of Contaminated Sites in British Columbia (Ministry of Environment, Lands and Parks January 1998). • A Framework for Ecological Risk Assessment—Canadian Council of Ministers of the Environment (CCME 1996). In addition, recent decisions and submissions for similar EA projects in British Columbia were considered (e.g., Kemess North, Galore and Gibraltar). Environmental quality guidelines for chemical concentrations in soil, air and water were also used in the assessment, including: • BC MOE Air Quality Objectives (AAQO) (BC MOE 2006) • National Ambient Air Quality Objectives (NAAQO) (Government of Canada 2004)

• Canada-wide Standard for Respirable Particulate Matter (PM2.5) (CCME 2000) • Canadian Environmental Quality Guidelines (CCME updated 2007) • British Columbia Environmental Management Act—Contaminated Sites Regulation (includes amendments up to BC Reg. 239/2007, July 1, 2007) (BC 2007)

6.1.2 Key Issues for Human Health and Ecological Risk Assessment The HHERA focuses only on the potential effects related to chemical changes in the environment in soil, air, and water as a result of Project activities. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 6-2 Prosperity Gold-Copper Project

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There are three key issues that have the potential to change the chemical environment associated with the proposed mine: • emissions of criteria air contaminants (CACs) from Project activities (Volume 4, Section 2) have the potential to affect human health • deposition of inorganic elements on soil from releases from mining activity (Volume 5, Section 4) have the potential to increase soil metal concentrations and affect country foods for human consumption and ecological health • release, seepage or discharge of groundwater and surface water and associated metals to the watershed (Volume 5, Section 2) post-closure have the potential to increase the metal body burden of fish tissue and thus potentially affect human health and ecological receptors through consumption HHERA is an evaluation process used to describe the nature and magnitude of risks associated with the exposure of human and ecological receptors to potential chemical hazards. For risk to exist, three critical elements need to be present: receptors, hazard and exposure. That is: • a chemical or compound must be released to the environment at a sufficient concentration • a pathway must exist for the chemical to travel to a potential receptor and be absorbed into the human body • a dose must be received, and the chemical must have some adverse toxicological effect (i.e., temporary or permanent damage) If any one of these components is missing, then there is no level of risk to receptors. The elements of a HHERA are presented schematically below (Figure 6-1).

Receptor Exposure

RISK

Hazard

Figure 6-1 Key Elements of Human Health and Ecological Risk Assessment

Therefore, health risks are evaluated only where a receptor (human or ecological) has reasonable exposure to a chemical introduced into the environment as a result of Project activity. Mitigation and management of chemical releases are examined if the potential exposure is determined to result in a potential effect on either human or ecological health. Scoping of key issues for the assessment was based on a review of Project activities that

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could potentially release or emit chemicals into the environment and the potential exists for human and ecological receptors to be exposed to these chemicals. Potential interactions between Project activities, chemical emissions and exposure of human and ecological receptors are summarized and ranked in Table 3-1. Aquatic ecological receptors are considered in Volume 5, Section 2. Project activities where the interaction between chemical hazards and human receptors were deemed as reasonable and requiring further assessment were ranked as two. Project activities that will not result in emissions of chemicals or where emissions would be present but where the potential for exposure was deemed as negligible or unlikely, were ranked as “1”, and Project activities where no chemical emissions are likely were ranked as “0”.

Table 6-1 Interaction of the Project with Human Health and Ecological Risk Assessment Project Activities/Physical Works Project Description Reference for Activity VEC Construction and Commissioning Fisheries compensation works construction Project Description and Scope, Vol. 3, Sec. 8 0 Water diversion Project Description and Scope, Vol. 3, Sec. 6 0 Construction sediment control Project Description and Scope, Vol. 3, Sec. 6 0 Access road construction and upgrades Project Description and Scope, Vol. 3, Sec. 6 0 Camp construction Project Description and Scope, Vol. 3, Sec. 6 2 Site clearing (clearing and grubbing) Project Description and Scope, Vol. 3, Sec. 6 1 Soils handling and stockpiling Project Description and Scope, Vol. 3, Sec. 6 0 Construction: plant site and other facilities Project Description and Scope, Vol. 3, Sec. 6 2 Lake dewatering Project Description and Scope, Vol. 3, Sec. 6 0 Starter dam construction Project Description and Scope, Vol. 3, Sec. 6 2 Sourcing water supplies (potable, Project Description and Scope, Vol. 3, Sec. 6 0 process/TSF) Site waste management Project Description and Scope, Vol. 3, Sec. 6 0 Clearing of transmission line ROW Project Description and Scope, Vol. 3, Sec. 6 1 Construction/Installation of transmission line Project Description and Scope, Vol. 3, Sec. 6 1 Vehicular traffic Project Description and Scope, Vol. 3, Sec. 6 2 Concentrate load-out facility near Macalister Project Description and Scope, Vol. 3, Sec. 6 0 (upgrades to site) Operations Pre-production and production Project Description and Scope, Vol. 3, Sec. 6 0 Crushing and conveyance Project Description and Scope, Vol. 3, Sec. 6 2 Ore processing and dewatering Project Description and Scope, Vol. 3, Sec. 6 2 Tailing storage Project Description and Scope, Vol. 3, Sec. 6 0 Waste rock stockpiles Project Description and Scope, Vol. 3, Sec. 6 1 Potable and non-potable water use Project Description and Scope, Vol. 3, Sec. 6 0 Site drainage and seepage management Project Description and Scope, Vol. 3, Sec. 6 1 Wastewater treatment and discharge Project Description and Scope, Vol. 3, Sec. 6 0 (sewage, site water) Water release contingencies for extended Project Description and Scope, Vol. 3, Sec. 6 0 shutdowns (treatment) Solid waste management Project Description and Scope, Vol. 3, Sec. 6 1 Maintenance and repairs Project Description and Scope, Vol. 3, Sec. 6 0 Concentrate transport and handling Project Description and Scope, Vol. 3, Sec. 6 1 March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 6-4 Prosperity Gold-Copper Project

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Table 6-1 Interaction of the Project with Human Health and Ecological Risk Assessment (cont’d) Project Activities/Physical Works Project Description Reference for Activity VEC Vehicle traffic Project Description and Scope, Vol. 3, Sec. 6 2 Transmission line (includes maintenance) Project Description and Scope, Vol. 3, Sec. 6 0 Pit dewatering Project Description and Scope, Vol. 3, Sec. 6 0 Low-grade stockpile processing Project Description and Scope, Vol. 3, Sec. 6 1 Concentrate load-out facility near Macalister Project Description and Scope, Vol. 3, Sec. 6 1 Closure Reclamation of low grade stockpiled Project Description and Scope, Vol. 3, Sec. 6 1 material Reclamation of waste rock stockpiles Project Description and Scope, Vol. 3, Sec. 6 1 Tailing impoundment reclamation Project Description and Scope, Vol. 3, Sec. 6 1 Pit Lake, Prosperity Lake and TSF Lake Project Description and Scope, Vol. 3, Sec. 6 0 filling Plant and associated facility removal Project Description and Scope, Vol. 3, Sec. 6 1 Road decommissioning Project Description and Scope, Vol. 3, Sec. 6 1 Transmission line decommissioning Project Description and Scope, Vol. 3, Sec. 6 1 Post-closure Discharge of tailing storage facility water Project Description and Scope, Vol. 3, Sec. 6 2 Discharge of Pit Lake water Project Description and Scope, Vol. 3, Sec. 6 2 Seepage management and discharge Project Description and Scope, Vol. 3, Sec. 6 2 Ongoing monitoring of reclamation Project Description and Scope, Vol. 3, Sec. 6 2 Interaction of Other Projects and Activities Project Planning and Alternatives Assessment, Logging 0 Vol. 2, Sec. 7 Project Planning and Alternatives Assessment, Ranching 0 Vol. 2, Sec. 7 Project Planning and Alternatives Assessment, Irrigation 0 Vol. 2, Sec. 7 Project Planning and Alternatives Assessment, Tourism and recreation use 2 Vol. 2, Sec. 7 Project Planning and Alternatives Assessment, Trapping 2 Vol. 2, Sec. 7 Project Planning and Alternatives Assessment, Transmission Corridor Considerations 0 Vol. 2, Sec. 7 Project Planning and Alternatives Assessment, Mining and gravel extraction 1 Vol. 2, Sec. 7 Traditional Use First Nations Vol. 8, Sec. 2 0 Project Planning and Alternatives Assessment, Community Infrastructure/Development 0 Vol. 2, Sec. 7 Accidents, Malfunctions and Unplanned Events Additional Requirements Pursuant to CEAA, Fuel /chemical spill–land 2 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Fuel /chemical spill–water 2 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Pipeline Failure 2 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Concentrate spill–land 2 Vol. 9, Sec. 2

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Table 6-1 Interaction of the Project with Human Health and Ecological Risk Assessment (cont’d) Project Activities/Physical Works Project Description Reference for Activity VEC Additional Requirements Pursuant to CEAA, Concentrate spill–water 2 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Road culvert failure 0 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Excessive water in TSF 1 Vol. 9, Sec. 2 Additional Requirements Pursuant to CEAA, Loss of power to TSF seepage recovery 1 Vol. 9, Sec. 2 NOTES: 0 = No interaction 1 = Interaction occurs; however, based on past experience and professional judgment the interaction would not result in a significant environmental effect, even without mitigation; or interaction would not be significant due to application of codified environmental protection practices that are known to effectively mitigate the predicted environmental effects. Details on justification for this rating are provided in the issues scoping section 2 = Interaction may result in a significant environmental effect; potential effects are considered further in the EA

Table 3-2 provides a summary of interactions between Project activities and potential environmental effects related to human health and ecological risk.

Table 6-2 Potential Environmental Effects to Human and Ecological Health Associated with the Project Potential Environmental Effects

Project Activities and Physical Works Soil Health Health Health Ecological Air Quality Contaminant Contaminant Country Food Food Country Water Quality/ Quality/ Water Health Human /Human Health /Human Health Quality/Human Construction and Commissioning Operation of construction equipment to build 9 infrastructure and facilities on mine site Diesel generated power supply for construction 9 Exhaust emissions from vehicular traffic 9 Operation of construction equipment for transmission 9 line and switching station Pre-production mining (atmospheric deposition on soils) 9 9 Operations Exhaust emissions from mine fleet and vehicles 9 Ore extraction, crushing, transport, conveyer systems 9 9 9 and processing (Dust) Vehicular traffic 9 Closure Exhaust emissions from vehicular traffic and equipment 9

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Table 6-2 Potential Environmental Effects to Human and Ecological Health Associated with the Project (cont’d) Potential Environmental Effects

Project Activities and Physical Works Soil Health Health Health Health Ecological Air Quality Contaminant Contaminant Country Food Food Country Water Quality/ Quality/ Water Health Human /Human Health /Human Health Quality/Human Post-closure Tailings storage facility–discharge 9 9 Pit Lake discharge 9 9 Reclamation monitoring 9 9 Cumulative Effects Regional emissions of CAC 9 Regional hazardous air pollutants 9 Regional effluent and metal discharges 9 9 Accidents, Malfunctions and Unplanned Events 1a. Fuel Spill–Land 9 9 1b. Fuel Spill–Water 9 9 2. Pipeline Failure 9 9 3a. Concentrate Spill–Land 9 9 3a. Concentrate Spill–Water 9 9

6.1.2.1 Mine Site As described in Table 3-1, there are a variety of Project activities on the mine site that may have the potential to emit chemical hazards and affect human and ecological health during the construction to post-closure phases. Again this assessment is limited to those activities that would result in a potential chemical change in the environment.

Construction Phase During the construction phase there will be a requirement for the operation of a diesel generator (power supply) and the operation of heavy machinery for mine site construction. Emissions of CACs from these activities have the potential to alter air quality and subsequently affect human health and thus were ranked as “2”. Although ecological receptors may be exposed to these CACs from vehicle and diesel exhaust, it is not standard practice to examine potential affects to ecological receptors from these contaminants as they would not affect the overall viability of the ecosystem and were given a ranking of “1”. The pre-production site preparation and clearing of overburden at the location of the open pit all have the potential to increase the dust load at the site, hence potentially increasing the soil metal concentrations around other areas of the property. As a result, they were ranked as “2” for both human and ecological health. Physical clearing activities and infrastructure development would not result in any chemical emissions that would affect human health or they could be mitigated using

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established methods and practices. As there would not be a significant exposure pathway for receptors, they were ranked as either “1” or “0”.

Operation Phase Activities related to open pit mining (e.g., blasting), ore crushing, conveyance and processing and stockpiling are ranked as “2” (both human and ecological), given their potential for dust generation and subsequent metal deposition onto surrounding soils. Similar to the construction phase of the Project, any power generation or vehicle emissions have the potential to generate CACs that may affect human health and were ranked as “2”, while ecological effects were ranked as “1”. The remaining activities during the operational phase were all ranked as “1” or “0”, either because they will not emit chemicals to the environment or potential emissions can be addressed through mitigations in mine design or monitoring. For example, although metal affected water seepage may occur from the TSF, this water will be collected and reintroduced to the TSF facility throughout operation of the mine.

Closure and Post-closure Phases During the closure phase there will be a requirement for heavy machinery to be operated for grading, infrastructure removal, and reclamation activities. This was ranked as a “2” as per above. Post-closure of the mine, the TSF will fill and the open pit will be flooded and be referred to as the Pit Lake. Drainage from the mine site, TSF and Pit Lake will flow in a north- west direction and discharge to the Upper Fish Creek. In addition, there will be a controlled seep discharge from the TSF to the Taseko River. These aquatic discharges have the potential to alter water chemistry and the tissue concentration of fish in these water bodies, and hence potentially affect human and ecological receptors via the consumption exposure pathway. Therefore, this activity was ranked as a “2” and requires further evaluation in this assessment. Discharges from the Pit Lake and the TSF seepage and their potential affect on aquatic receptors are discussed in Volume 5, Section 2.

6.1.2.2 Transmission Line Key issues related to the transmission line would include potential effects on air quality during clearing and installation of wood or fibreglass pole structures and conductors for the line. Although there is potential for chemical emissions from construction equipment and clearing and grading activities, they are expected to be transient in nature, hence effects on air quality will be minimal. Any proposed burning of vegetation will be conducted in accordance with the British Columbia Open Burning Smoke Control Regulation (Reg. 145/93) and are therefore not considered further in relation to human or ecological health. Herbicides may be used for tree management along the right-of-way. Any herbicide use will be approved by the Pest Management Regulatory Agency (PMRA) and applications will follow British Columbia regulations for herbicide application. More detail on herbicide use will be released once the tree management plan for the transmission line has been developed.

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Criteria used in the selection of transmission line corridor include (Hayard International 2007): • follow existing transportation and access corridors where possible • minimizing disturbance to private properties • minimizing effects on the forestry resource • avoiding small lakes and wetlands where possible Use of these criteria for selection of the center line will minimize any potential chemical release to water and air, and subsequently on human and ecological health. Although the proposed transmission line route does pass several privately owned lots in Big Creek, the localized, short-term nature of emissions does not warrant further assessment in the EA. As a result, these interactions were ranked as “1” and are not considered further in this assessment.

6.1.2.3 Access Road Vehicular traffic on access roads to the mine site will emit dust, particulates and other chemicals from combustion engines. Although traffic will increase on access roads during construction and operation of the mine, increases in dust and chemical emissions are anticipated to affect only air quality immediately adjacent to the road (Volume 4, Section 2: Atmospheric Environment). The majority of the access road to the mine site is in an isolated area, away from human habitation. Mitigation and management techniques (i.e., road watering, use of covered trucks) will minimize dust emissions and, therefore, are ranked as “1” or “0” and not considered further in the EA. Effects of dust from concentrate trucks on water quality are discussed in Volume 5, Section 2. Effects of dust on vegetation health are described in Volume 5, Section 5. Potential mortality risks to wildlife associated with the road are discussed in Volume 5, Section 6.

6.1.2.4 Rail Load-out Facility The Project will utilize the existing Gibraltar Mine Concentrate Load-out Facility. The environmental effects of the load-out facility are not assessed as road transport vehicles will be covered, and the transfer of ore concentrate to rail cars at the Macalister Lake facility will occur inside a building. A number of other measures also will be employed to minimize and manage dust emissions (Volume 5, Section 4).

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6.1.3 Selection of Key Indicators and Measurable Parameters for Human and Ecological Health The key indicator risks considered in this assessment are: • chemical risks to human health • chemical risks to ecological health The rational for consideration of these effects and the selection of measurable parameters to quantify these effects is provided in the following section. A summary of these effects and measurable parameters is provided in Section 3.1.3.4. Additional details on aquatic ecological health and toxicity are provided in Volume 5, Section 2: Water Quality and Aquatic Ecology.

6.1.3.1 Human Health Potential Project effects on human health were considered with respect to First Nations living in the Chilcotin Region and for those individuals who use the area for recreational purposes (e.g., hunting and fishing). The assessment of potential human health effects is based on human interactions with chemicals emitted from the Project and draws on information from other key indicators and VECs including; air quality (criteria air contaminants and hazardous air pollutants), water quality (metals and chemical hazards), soil quality (metals), fish tissue (metals) and vegetation (metals). Measurable parameters that will be used to assess effects on human health include: • concentrations of Criteria Air Contaminants (CAC) and Hazardous Air Pollutants (HAP) in air • risk estimate calculations based on daily exposure to concentrations of metals in: • drinking water • country foods (i.e., vegetation, fish, and wild game)

6.1.3.2 Ecological Health Effects on ecological health were also considered due to the abundance of wildlife (i.e., mammals, birds, amphibians, reptiles and invertebrates) and wildlife habitat in the vicinity of the proposed Project. The ERA evaluated plant, mammalian and avian receptor exposure to chemical emissions from the Project. This is important for maintaining healthy, sustainable wildlife populations in the region. Ecological health is also important to First Nation people and recreational users who may be harvesting plant and wildlife species in the vicinity of the Project for consumption and other uses. The assessment of potential ecological health effects is based on interaction with chemicals emitted from the Project and draws on information from other key indicators and VECs including; water quality (metals and chemical hazards), soil quality (metals), fish tissue (metals) and vegetation quality (metals). Key receptor species for the ERA were selected from the KI list developed by the Wildlife discipline team (Volume 5, Section 6). KI selection was based on conservation status, known presence and relative abundance within the Project area, vulnerability to potential Project effects, role as an March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 6-10 Prosperity Gold-Copper Project

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indicator species for a specific wildlife group (e.g., ungulates) and socio-economic and regional significance (including importance to First Nations). Measurable parameters that will be used to assess effects on ecological health include: • risk estimate calculations based on daily exposure to concentrations of metals in: • drinking water • soil • vegetation (including dust on vegetation) • wildlife and fish tissue

Table 6-3 Human Health and Ecological Risk Assessment Key Indicators Linkage to EA Guidelines, Other Environmental Regulatory Drivers, Effect Rationale for Selection Policies and Programs Baseline Data for EA Risks to • Human health is • Identified in BC • Air quality baseline, Project site Human Health important to local EAO Mine and regional 2001–2006 stakeholders Proponents Guide • Vegetation baseline metals • Regulatory (2006) data, 1995, 2006 importance • Health Canada • Soils quality metals baseline, • Important in the (2004) 1993, 1995, 1996 assessment of • BC MOE (2007) • Fish tissue metals baseline, effects on First 1995,1997, 2006 Nations • Water quality metals baseline, 1992–1998, 2006 • Baseline Country Food Human Health Risk Assessment 2007 Risks to • ecological health • Species at Risk • Air quality baseline Ecological is important for Act (SARA) • Vegetation baseline metals Health maintaining • BC Conservation data, 1995, 2006 healthy wildlife Data Centre (CDC) • Soils quality metals baseline, populations • CCME (1996) 1993, 1995, 1996 • Important to local • BC MOE (1998) • Fish tissue metals baseline, stakeholders 1995,1997, 2006 • Regulatory • Water quality metals baseline, importance 1992–1998, 2006 • Important in the • Sediment quality metals assessment of baseline, 1994, 1996, 1997, effects on First 2006 Nations • Baseline Ecological Risk • Important for local Assessment 2007 hunters and trappers

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6.1.4 Temporal Boundaries Temporal boundaries for the human and ecological health risk assessment coincide with those of the Project timelines / phases. Temporal boundaries for the Project are divided into: • construction and commissioning (21 to 23 months) • operations (20 years) • closure (decommissioning [2 years], reclamation [2 years] and Pit Lake filling [27 years]) • post-closure (at the start of mine discharge, ~ 26 years after operations cease)

6.1.5 Spatial Boundaries

6.1.5.1 Local Study Area The LSA for the human and ecological risk assessment is the mine site property and includes the LSA boundaries for Water Quality and Aquatic Ecology (Volume 5, Section 2). This is anticipated to be the area where the maximum emissions will occur from mine operations and the effects on water quality, soil quality and air quality will be the greatest.

6.1.5.2 Regional Study Area The RSA for the HHERA extends from the mine site to the closest community Nemaiah Valley, which is located 20 km to the north-west of the property. This is also the furthest special receptor location modeled by the Atmospheric Environment team. In addition, mixing point “D” in the Taseko River, which is approximately 3.5 km downstream of the Pit Lake discharge, was used as the extent of the RSA for determining potential metal effects on drinking water and fish tissue concentrations. For the ERA, the regional study area will include the home ranges of the key receptor species, acknowledging the mine site is only one portion of their habitat and effects should be assessed based on the larger range area. Details on the RSAs for wildlife are provided in Volume 5, Section 6 (Wildlife).

6.1.6 Environmental Effects Rating Criteria for Assessing Effects Significance Project effects on human health and ecological health were characterized using five criteria: direction, magnitude, geographic extent, frequency, and reversibility. Quantitative measures, where possible, are used to characterize each potential health effect. For example, magnitude can be quantified in terms of the calculated hazard quotient (HQ, non-cancer risk) or incremental lifetime cancer risk (ILCR), the higher the value the greater potential that a predicted health effect could occur. Where quantitative measures could not be used, qualitative categories were used, following the definitions provided in Table 6-4.

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Table 6-4 Environmental Effects Rating Criteria for Human Health and Ecological Health

Criteria Ranking Definition Direction Adverse Effect is worsening from baseline or is undesirable Neutral Effect is not changing compared with baseline conditions and trends Positive Effect is improving from baseline or is desirable Magnitude Negligible Hazard quotient (HQ) (<0.2) or Incremental Lifetime Cancer Risk (ILCR) (<1E-05) Moderate HQ between 1 and 10 ILCR >1.5E-05 High HQ>10 ILCR>1.0E-04 Local Effect will be limited to LSA Geographic Regional Effect is limited to RSA Extent Frequency Once Occurs once Sporadic Occurs at sporadic intervals Regular Occurs on a regular basis and at regular intervals Continuous Occurs continuously Reversibility Reversible Effect is reversible if the exposure ceases Irreversible Effect is not reversible after the exposure ceases

6.1.7 Influence of Consultation on the Assessment Regulatory consultation for the Project is ongoing. Preliminary consultations with TNG have indicated that there is concern regarding effects from tailings leachate on groundwater and surface water quality, and regarding dust and particulate generation during Project construction and operations activities. Concerns about potential contamination of country foods were also noted. For the ecological risk assessment, a list of wildlife species to be assessed was selected originally in 1998, through consultation with BC Ministry of Environment, Lands and Parks (now BC Ministry of Environment) Region 5 (Cariboo) staff, with additional input from the Canadian Wildlife Service (CWS) (Madrone 1999). The selection of species was also informed by the results of the ecosystem mapping and baseline wildlife inventories. These species were referred to as focal species at that time, but are now referred to as KIs. This list was reviewed and approved by the Wildlife and Vegetation Technical Working Group in May 2006 (see Volume 5, Section 6). With respect to vegetation, meetings were initially held with a representative of First Nations to determine which native plant species were typically harvested in the Fish Lake area (Dan Case, Chief Stone Reserve, pers. comm., November 25, 1998). It was indicated that the most commonly used plants were rose (Rosa sp.), soopolallie (Shepherdia canadensis) and tea (Ledum sp.) (Volume 5, Section 5).

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6.2 Baseline Conditions for Human and Ecological Health

6.2.1 Summary of Previous Work and Gap Analysis There is a considerable amount of baseline data available on metal concentrations in soil, sediment, water and vegetation over the past decade at the proposed mine site. These data were sufficient for evaluation of baseline conditions for the human and ecological risk assessment. There are, however, some identified gaps in the data resulting in uncertainty in the baseline HHERA. Firstly, no chemical information has been collected on wildlife tissue. This is common in environmental data collection and can be overcome by conservatively modelling uptake of metals into wildlife tissue. Secondly, the data available on berries in the Project area is insufficient prohibiting the assessment of existing issues that may arise from berry ingestion. Sampling of berries in the area can overcome this gap in data in the future. Thirdly, there is a data gap in existing air concentrations of CACs and HAPs at the mine site. Again this is common in baseline data collection and will be dealt with in the assessment of the Project itself. Finally, the most significant gap in knowledge is related to consumption patterns of traditional foods in the area. At the time of preparation of this report such a survey had not been undertaken. As a result, credible sources of information were reviewed to estimate conservative consumption patterns in the area.

6.2.2 Approach and Methods for Assessment The following section details the approach to assessing the potential risk to human and ecological receptors with respect to chemical emissions from the proposed Project. Both quantitative and qualitative tools were used to evaluate potential human health risks. Baseline monitoring data presented in the HHERA Baseline Report (Appendix 6-6-A) provide a benchmark against which changes in the environment can be compared. HHERA is an evaluation process used to describe the nature and magnitude of the risk associated with the exposure of human and ecological receptors to a potential hazard (chemical). A HHERA combines information on potential receptors with exposure data and identified hazards (i.e., toxicity) to determine the relative level of risk resulting from an operation. The HHERA framework is composed of the following major components (Figure 6-2), which are the same for both human and ecological characterization: • Site Characterization / Modeled Predictions: A review and compilation of existing data and a summary of past activities. • Problem Formulation: Identification of the environmental hazards that may pose a human health or environmental risk (i.e., chemical concentrations that exceed applicable guidelines), potential receptors, and relevant exposure pathways. • Hazard Assessment: Identification of published, scientifically reviewed toxicity values against which exposures can be compared. • Exposure Assessment: Qualitative or quantitative evaluation of the likelihood or degree to which the receptors will be exposed to the hazard.

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• Risk Characterization: Qualitative or quantitative assessment of the human health or environmental risk of each hazard to each receptor, based on the degree of exposure. • Uncertainty Assessment: Review of the assumptions and uncertainties associated with the risk estimation. • Recommendations: If required providing recommendations for mitigation and/or monitoring that would reduce the potential risk. According to this framework, the risk assessment progresses from a more qualitative initial phase (problem formulation), through exposure and toxicity analysis, and culminates in a final quantitative risk characterization. Based on the risk characterization, potential Project effects on receptor health can then be assessed based on the magnitude of the predicted risk and the degree of uncertainty and conservatism in the assessment.

Figure 6-2 Key Elements of Human Health and Ecological Risk Assessment

6.2.3 Overview of Baseline Conditions for Human Health and Ecological Health The Human Health and Ecological Risk Assessment Baseline Report was included in the Taseko Prosperity Gold-Copper Project Baseline TDR (Appendix 6-6-A), and provides an overview of the baseline (existing) conditions surrounding the proposed Project mine March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 6-15 Prosperity Gold-Copper Project

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site. A considerable amount of baseline data was collected for metals in soil, sediment, water, and vegetation over the past decade at the proposed mine site. These data were sufficient for the purposes of evaluating the existing baseline for a HHERA. The following section provides a brief summary of the findings of this report.

6.2.3.1 Baseline Chemicals of Potential Concern The baseline HHERA (Appendix 6-6-A) determined that the existing concentrations of chemicals of potential concern (CoPCs) in soil were below soil quality guidelines for residential and parkland land uses, and existing concentrations in water were below drinking water quality objectives. Therefore, these direct contact exposure pathways were not quantitatively assessed. The selection of CoPCs for evaluation in the HHERA was limited primarily to metals that have the potential to negatively affect human or ecological health, and where empirical baseline soil concentrations were available. The metals selected as CoPCs for all environmental media (soil, water, sediment, vegetation, and fish) and evaluated in the baseline HHERA are presented in Table 6-5.

Table 6-5 Chemicals of Potential Concern Parkland Use Soil Chemical of Potential Quality Guideline Maximum Concentration Concern mg/kg mg/kg antimony 20 8.5 arsenic 12 278 barium 500 199 beryllium 4 1.4 boron 2 142 chromium 64 399 cobalt 50 40 copper 63 297 lead 140 9.3 manganese NV 6330 mercury 6.6 0.59 nickel 50 192 selenium 3 20 silver 20 2.1 zinc 200 175

Mean and 95th percentile concentrations were calculated for each CoPC for all environmental media. Values for each CoPC are presented later in this assessment; details are provided in the Human Health and Ecological Risk Assessment Baseline Report (Appendix 6-6-A). These concentrations were used as inputs to the HHERA model to determine, whether or not, a baseline potential risk was already present at the property.

6.2.3.2 Results of the Baseline Country Food Human Health Risk Assessment The baseline HHRA focused on the potential risk from consumption of wild game in the LSA. Although soil and water concentrations were below guidelines for risk based environmental quality, no such guidelines exist for consumption of wild game. This March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 6-16 Prosperity Gold-Copper Project

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quantitative assessment utilized measured concentrations of metals in locally consumed vegetation and fish species and modelled concentrations of CoPCs in locally consumed wildlife species (Table 6-6).

Table 6-6 Country Foods Selected for Study Food Type Species Selected Large mammal herbivore Moose (Alces americanus) Small mammal Muskrat (Ondatra zibethicus) Rainbow Trout (Salmo gairdneri), Bull Trout (Salvelinus confluentus), Fish Mountain Whitefish (Prosopium williamsoni) Bird Willow Ptarmigan (Lagopus lagopus) Traditional plant Labrador tea (Ledum groenlandicum) Berries Insufficient data to quantitatively evaluate risk

Both mean and 95th percentile modeled existing concentrations of metals in a number of country foods were assessed for their potential risk to human consumption. Values for each CoPC are presented later in this assessment; details are provided in the Human Health and Ecological Risk Assessment Baseline Report (Appendix 6-6-A). Although arsenic and methyl mercury were determined to be above risk-based standards for fish and moose consumption, they were within exposure limits that would commonly be found in store-bought foods (CEPA 1993; Dabeka 1993; Hughes 1994; HC 2007). The remaining metal concentrations in country foods assessed did not pose an unacceptable risk. Overall, it was determined that First Nations or subsistence hunters in the area would not be at an undue risk from ingestion of country foods and fish under existing conditions in the LSA.

6.2.3.3 Results of the Baseline Ecological Risk Assessment To determine if existing metal concentrations in environmental media in the LSA present a risk to the health of ecological receptors, a quantitative ERA was conducted. This baseline ERA provides a benchmark to which potential changes in environmental metal concentrations associated with the Project can be compared. The potential health risks associated with exposure of ecological receptors to baseline concentrations of metals in surface soil, surface water, sediment, vegetation and fish tissue were evaluated. It is not possible (nor practical) to address all of the wildlife species inhabiting the Project area individually. Instead, surrogate wildlife species for the ERA were selected primarily from a list of established wildlife KIs, and included: • plant community • soil invertebrate community • moose (Alces americanus) • snowshoe hare (Lepus americanus) • muskrat (Ondatra zibethicus) • mink (Mustela vison) March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 6-17 Prosperity Gold-Copper Project

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• cinereus shrew (Sorex cinereus) • grizzly bear (Ursus arctos) • Canada goose (Branta canadensis) • mallard (Anas platyrhynchos) • willow ptarmigan (Lagopus lagopus) • short-eared owl (Asio flammeus) It was determined that existing environmental media metal concentrations do not pose a potential risk to mammals, birds or soil invertebrates in the study area. Although baseline soil conditions were elevated for some plant species, field surveys did not indicate any evidence of stressed vegetation.

6.3 Project Effects Assessment

6.3.1 Human Health

6.3.1.1 Scope of Assessment for Human Health The human health assessment focuses on potential exposure to chemicals emitted at the varying phases of the Project and includes assessment of potential risk from exposure to: • vehicle emissions in the form of the CACs • dust emissions from mine operations that may affect soil metal concentrations, which may ultimately be taken up into country food • water discharge (post-closure) from Pit Lake and TSF to receiving water bodies that may affect fish tissue metal concentrations that may ultimately be consumed Project effects on human health were assessed in relation to three potential exposures: • chemical hazards in air • chemical hazards in water • chemical hazards in country foods and fish

6.3.1.2 Effects Assessment Methodology for Human Health The problem formulation for the human health risk assessment is provided below. Chemicals, receptors and exposure pathways for the mine site are identified.

Chemicals of Potential Concern CoPCs for the HHRA were identified based on baseline studies, Project specifications, and a review of chemicals that are related to copper-gold mine operations. Chemicals typically associated with mine activities include metals in dust/ore concentrate, air pollutants (e.g., SO2, NO2, and particulates), and petroleum products (e.g., gasoline, diesel fuel).

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Metals (Inorganic Elements) Mining by its very nature involves extraction of ore bodies that are rich in minerals (inorganic element). Through the mining, crushing, conveying, processing and tailings disposal processes, fugitive emissions of dust have the potential to load to existing soil concentrations on the property. Volume 5, Section 4, the Terrain and Soils assessment provides estimates of metal soil changes in the environment from air deposition loading. Those chemicals that were determined to have a loading that would be above soil quality guidelines, or for those inorganic elements that were of potential concern in the baseline HHERA were carried forward in the Project effects assessment. During the post-closure phase of the Project, the Pit Lake will begin discharging water into Lower Fish Creek that may contain some elevated concentrations of metals in water. In addition, there are plans for a controlled seep discharge from the TSF to Taseko River. These discharges were evaluated for potential metal loading in the aquatic environment and subsequent increase in fish tissue concentrations of metals.

Criteria Air Pollutants CACs that are associated with the Project activities are detailed in Volume 4, Section 2: Atmospheric Environment. They are primarily related to various combustion sources including open burning, construction equipment, rock moving equipment, diesel generators and motor vehicles. They include:

• particulate matter <2.5 µm (PM2.5)

• particulate matter <10 µm (PM10) • total suspended particulate (TSP)

• nitrogen oxides (NOx)

• sulphur dioxide (SO2) • carbon monoxide (CO) The Project effects on air quality and human health at the closest community were evaluated.

Human Receptors Evaluated The Project is located approximately 20 km from the community of Nemaiah Valley where the Xeni Gwet’in (People of Nemaiah) reside and are members of the Tsilhqot'in National Government (TNG). The air quality assessment evaluated the potential effects on this closest community to the Project. In addition, a generic First Nations, as well as a recreational hunter, angler and user of the lands surrounding the proposed mine site were evaluated for their potential exposure to metal concentrations in country foods.

Potential Pathways of Human Exposure In an exposure assessment, the likelihood that human receptors would come into contact with the chemicals of potential concern is evaluated. Exposure could be through a number of mechanisms, including ingestion, dermal contact, and inhalation; however, in

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the case of the current study, the main pathways of exposure considered are through ingestion of country foods and inhalation of Project emissions. Possible routes of human exposure from country foods include ingestion of fish muscle tissue burdened with metals accumulated from uptake in water; ingestion of vegetation tissue contaminated with metals accumulated from uptake from soil; and from the ingestion of animal meat that have accumulated metals from water, vegetation and soil intake (Table 6-7). Although plants may have some level of metal in dust adhered to their surface, the overall amount would be relatively small, and is not typically considered quantitatively in human health risk assessment. A conceptual model for this exposure pathway is presented in Figure 6-3.

Table 6-7 Potential Pathways of Exposure Exposure Inclusion Rationale Pathway in HHRA CoPCs and dust will be emitted from mine construction, operations and decommissioning activities; diesel powered equipment and mine Inhalation of vehicles, ore extraction, crushing, grinding and processing activities and air 9 site clearing and decommissioning. Potential effects on local air quality contaminants have been raised by stakeholders as an issue of concern. This pathway was carried forward for further assessment Soil concentrations are below those that were used to set the soil quality guidelines. These guidelines are set using a 365 day/year exposure and Soil Ingestion X thus would be protective of occasional use of the area by hunters/trappers. Future risks to local hunters/trappers will be mitigated by implementation of a comprehensive soil monitoring program Potential accumulation of metals and other CoPCs in country foods is a Ingestion of significant issue for local First Nation stakeholders. Deposition of dust Country 9 and metals on soil and local vegetation and subsequent accumulation in Foods traditional foods may occur from mining activities. This pathway was carried forward for further assessment Baseline soil concentrations were determined to be below those acceptable for exposure in a residential/parkland scenario. Ongoing future monitoring will ensure that soil concentrations remain below Dermal guideline levels. These guidelines are set using a 365 day/year exposure X Contact and are applicable to dermal exposure. Therefore, there would not likely be a risk to hunters/trappers occasionally using the area. Future risks to local hunters/trappers will be mitigated by implementation of a comprehensive monitoring program Baseline surface water concentrations of inorganic elements meet applicable drinking water quality guidelines. No water discharges from the Water 9 mine site area are planned to occur until many years after mine closure. Ingestion Concentrations of metals in mixing zones will be evaluated after this discharge begins

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Taseko Soils Mine Area Water

Aquatic Food Vegetation Food Chain Chain

TODDLERS AND ADULTS Figure 6-3 Exposure Pathway Model

Human Health Toxicity Assessment The potential hazards associated with exposure to non-carcinogenic (threshold) substances are assessed differently than those for carcinogenic (non-threshold) substances. For threshold substances, it is assumed that there is a dose (or concentration) that does not produce any adverse effects. The tolerable daily intake (TDI) is an estimate of a chemical intake that is unlikely to cause increased incidence of deleterious health effects during a lifetime of exposure. TDIs are specifically developed to be protective of chronic chemical exposures. Non-carcinogenic chemicals are generally active through a threshold mechanism where it is assumed that there is a level of exposure (dose) below which no health effects are expected. As the level of exposure (dose) increases to a point where the body can no longer process or excrete the substance, an adverse effect may occur. This juncture is termed the threshold and is unique for every chemical. Details on chemical specific toxicity and acceptable toxicity doses or benchmarks are provided in Appendix 6-6-B.

Human Health Risk Characterization The potential health effects associated with exposure to non-carcinogenic chemicals are assessed differently than those for carcinogenic chemicals, since these two groups of substances generally have different etiologies and act via unrelated mechanisms. Full spreadsheet calculations are found in Appendix 6-6-B. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 6-21 Prosperity Gold-Copper Project

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Non-carcinogenic Risk Calculations For risk characterization of non-carcinogenic CoPCs, hazard quotients (HQs) were calculated for each chemical by deriving the chronic daily intakes (CDIs) of exposed receptors and weighing these against the respective TDIs. Equation 6-1 shows the calculation to determine a hazard quotient.

Equation 6-1 Hazard Quotient Derivation CDI HQ = TDI where: HQ = hazard quotient CDI = chronic daily intake (mg metal/kg body weight-day) TDI = tolerable daily intake (mg metal/kg body weight-day) If the exposure dose is less than the safe dose (i.e., HQ <1), then the concentration of chemicals in the environment would not pose a health risk. However, in the human health risk assessment another five-fold safety factor is added, and the exposure dose must only be 20% of the safe dose (HQ <0.2). These are the very conservative government (both federal and provincial) benchmarks used to define an acceptable level of risk. A HQ benchmark of 0.2, assumes 80% of an individual’s intake of CoPCs will come from off- site exposures (i.e., an individual is exposed in an area that is not within the mine footprint). If the calculated total HQ is less than 0.2, then intake of CoPCs from site exposures does not exceed the tolerable level and no adverse health effects are expected. The exception to this is for fish ingestion of methyl mercury, where it is assumed that direct exposure from consumption of fish would be the only route of exposure and thus an acceptable HQ benchmark of one was selected. Simply put the only exposure humans are expected to have to methyl mercury is through ingestion of fish. Given that the dietary intake values used in this assessment would account for 100% of someone’s consumption of fish, then there would be no need to account for background methyl mercury exposure. Therefore, one could be exposed to the entire “safe dose” or a HQ = 1, where the daily intake does not exceed the TDI.

Carcinogenic Risk Calculations For the human health risk assessment some chemicals have the potential to cause cancer and are referred to as non-threshold chemicals. These cancer causing chemicals have toxicity reference values that are based on their chance (probability) that exposure would cause some level of cancer, and are commonly called cancer slope factors. To determine the chance of people getting cancer from exposure to these chemicals, the exposure (dose) is multiplied by the cancer slope factor (cancer causing dose). This risk estimate is called an incremental lifetime cancer risk. Of the CoPCs evaluated, only arsenic is carcinogenic. To derive a conservative estimate of the total incremental lifetime cancer risk (ILCR) associated with exposure to arsenic, the estimated exposure is multiplied by the appropriate slope factor as shown in Equation 6-2.

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Equation 6-2 Incremental Lifetime Cancer Risk Derivation ILCR = CDI * CSF where: ILCR = Incremental Lifetime Cancer Risk CDI = Chronic daily intake (mg/kg -day) CSF = Cancer Slope Factor (mg /kg-day)-1 The ILCR estimates the incremental probability that an individual will develop cancer as a result of lifetime exposure to a substance (e.g., arsenic). The incremental lifetime cancer risk is in addition to the probability of developing cancer due to ambient exposures. Given the conservatism associated with the derivation of cancer slope factors and unit risks, Health Canada and British Columbia have recommended a benchmark cancer risk level of 1-in-100,000 (1E-05) for the purposes of assessing carcinogenic substances. Accordingly, cancer risks are deemed negligible when the estimated ILCR is ≤1-in- 100,000 (1E-05). This government cancer benchmarks for risk assessment is based in policy, on the idea that this rate of cancer from exposure to environmental chemical concentrations would not affect the current Canadian cancer incidence rate of approximately 40%. This means that more than one in three British Columbians are at risk of getting cancer in their lifetime, and the results of the cancer risk assessment would not change this for individuals exposed to chemicals from the Project.

6.3.1.3 Baseline Conditions for Human Health A considerable amount of baseline data on metal concentrations in soil, sediment, water and vegetation has been collected over the past decade at the proposed mine site. Baseline soil, water and sediment concentrations of the inorganic elements were all below their respective guideline values in the Project area. Nevertheless, it is unlikely that any human receptors would be in contact with these environmental medium in a manner that would be elevated compared to how contaminated site guidelines were established; thus Country Foods were the focus of the human health assessment. Section 6.3.3 of the HHERA Baseline Report (Appendix 6-6-A) provides further details on baseline conditions.

6.3.1.4 Project Effects of Human Exposure to Criteria Air Contaminant Chemicals in Air on Human Health Air currents moving past the Project have the potential to carry air-borne CACs from the Project to human receptors. Volume 4, Section 2: Atmospheric Environment provides details on the evaluation of potential Project effects resulting from Project activities that emit CACs into the environment. For the purpose of the human health assessment, further consideration was given to the potential effects on the closest community, that of Nemaiah Valley located 20 km to the NW of the proposed mine site. As potential adverse effects to mine workers are governed by occupational health and safety laws and codes of practice, effects on workers were not considered in the EA.

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Mitigation for Air Contaminants with Respect to Human Health No mitigation measures are required in relation to CACs and health at the closest community to the mine site. However, Project related CAC mitigation measures are described in Volume 4, Section 2.4.1.5.

Characterization of Residual Project Effects for Air Contaminants and Human Health Table 6-8 provides the maximum predicted CAC background concentrations and those predicted for the Project in Nemaiah Valley. The construction and operations phase concentrations are those that are predicted to be added to the existing conditions. Although concentrations increase from the construction phase to the operations phase, they remain well below background concentrations of chemicals in air and if added to the background concentrations, would not exceed their respective regulatory objectives. In addition, the concentrations of CACs emitted from the Project are well below the published regulatory objective or standards.

Table 6-8 Maximum Predicted CAC Concentrations at Nemaiah Valley throughout the Project Substance Averaging Maximum Predicted Concentration at Nemaiah Regulatory Period Valley(μg/m3) Objective or Background Construction Operation Standard Alone Alone b e PM2.5 24-hour 7.0 0.080 0.27 30 15 a e PM10 24-hour 18.5 0.73 2.4 50 25 TSP 24-hour 18.5 0.73 2.4 150a Annual 18.5 0.03 0.08 60a DF (mg/dm2/d) 24-hour 0.01 0.03 NAd 30 day 0.2 0.001 0.00 1.7–2.9 d c NO2 1-hour 26.8 13.2 20.5 400 24-hour 17.1 1.9 4.1 200c Annual 17.1 0.1 0.1 60c CO 1-hour NV 6.5 14.9 14,300a 8-hour NV 3.3 7.7 5,500a a SO2 1-hour NV 0.0 0.00 450 24-hour NV 0.0 0.00 160a Annual NV 0.0 0.00 25a Pb 24-hour NV 0.000049 0.000158 4a Annual NV 0.00000165 0.00000355 2a NOTES: a BC MOE Air Quality Objectives (AAQC) (BC MOE, 2006). Pb is referenced to an annual geometric mean. b CCME (2000) Canada-wide Standard for Respirable Particulate Matter (PM2.5). This objective is referenced to the 98th percentile 24-h concentration, averaged over 3 consecutive years. c National Ambient Air Quality Objectives, or NAAQO (Government of Canada, 2004). d BC MOE 1979 Pollution Control Objectives for the Mining, Smelting, and Related Industries (BC MOE 1979). The Dustfall Objective (DF) is a daily rate, referenced to a 30 day sampling interval. e Health Canada (1998) Federal Reference Levels.

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Given the distance from the proposed mine site and haul route to the closest community and the low concentrations of CACs at this location, it is concluded that air-based CAC concentrations from the Project would not be a human health risk in the Nemaiah Valley, the closest community to the proposed mine site.

Cumulative Effects for Air Contaminants and Human Health As stated in the Atmospheric Environment Assessment (Volume 4, Section 2.4), no cumulative effects related to CACs associated with the Project are predicted.

Determination of Significance Given that the Project will not change the air quality in Nemaiah Valley, concentrations of CACs in both the RSA and LSA are predicted to be well below applicable standards. Given this, and that the air emission sources will cease upon closure of the mine, no significant effect on human health is predicted.

Confidence in Predictions The confidence in the potential air quality effects on human health is reliant on the confidence in the prediction of the air quality modeling. Volume 4, Section 2.4 rates confidence in the prediction of air quality data as high for the Project based on the quality of the baseline data, emissions data and confidence in the conservative nature of analytical techniques applied in the assessment.

Follow-up and Monitoring Follow-up and monitoring would not be required in Nemaiah Valley given the high confidence in the air quality predictions and the fact that the effects were deemed to be not significant. However, additional follow-up and monitoring for the Project related to CACs is recommended (Volume 4, Section 2.4). In brief the air monitoring report suggests that Taseko establish an ambient air quality monitoring network to characterize the effects of the Project on the atmospheric environment, and for the monitoring of health related CACs.

6.3.1.5 Project Effects of Human Exposure to Chemicals in Drinking Water on Human Health The assessment of human exposure to chemicals in drinking water focused on consumption of water from local surface water bodies by traditional and recreational users while in the area of the proposed mine site. Baseline (existing) surface water quality from lakes, creeks and rivers in the vicinity of the proposed mine site area were determined to be below drinking water quality guidelines (Appendix 6-6-A). Human exposure to chemicals in potable water for the mine was not considered in this assessment as there are regulated requirements for testing of the potable water used for drinking, showering and bathing at the site. Potable water will be supplied by three proposed wells along the south perimeter of the open pit. During operations, a potable water tank will be installed near the concentrator building, with a capacity of 150 m3.

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Mitigation for Surface Water Metal Loadings with Respect to Human Health Mitigation measures are described in Volume 5, Section 2 for aquatic considerations. No additional mitigation measures are recommended in relation to surface water discharge of metals post-closure with respect to drinking water quality.

Characterization of Residual Project Effects Surface Water Metal Loadings with Respect to Human Health A review of modeled post-closure concentrations of metals in surface quality was conducted to assess future exposure to chemical hazards in drinking water. While effects were assessed for all phases of the Project, they are expected to be greatest during the post-closure phase, when Pit Lake and TSF water is released to the regional watershed. Table 6-9 provides the baseline regional surface water quality data (reported in the baseline HHERA, Appendix 6-6-A) and the post-closure water concentration at the point of highest discharge at mixing zones A–D. Mixing zone “A” is the predicted concentration of metals in surface water in the Taseko River, influenced from the controlled discharge of the TSF seep. Mixing point “B” and “C” are located downstream of the Pit Lake discharge in Lower Fish Creek, while mixing point “D” is located further downstream of both discharges in the Taseko River. All predicted concentrations of metals in post-closure release water from Pit Lake and the TSF meet drinking water quality objectives at all the mixing points, with the exception of antimony in mixing points “B” and “C”. However, by the time antimony reaches the mixing points in the Taseko River (“A” and “D”), the concentrations are diluted to below the drinking water quality objectives and were equivalent to baseline conditions. It is assumed that traditional and recreational users in the area may occasionally consume water from water bodies in the Fish Creek and Taseko River watersheds. During post-closure discharge from the Pit Lake and TSF, when concentrations of metals in surface water will be the highest, concentrations did not exceed drinking water quality guidelines in mixing zones in the Taseko River. As a result, the Project will not affect drinking water quality or the health of individuals that use this water. Water quality was not assessed for the TSF or the Pit Lake as it is assumed that warning signs would be posted to not consume the water. Additional, residual effects related to the aquatic environment are found in Volume 5, Section 2.

Table 6-9 Baseline and Post-closure Predicted Surface Water Metal Concentrations

Baseline Regional Water Constituent Quality Post-closure Mean Water Concentration mean 95th Percentile A B C D Units (mg/L) (mg/L) Inorganics Antimony 0.00014 0.0006 0.0001 0.027 0.0268 0.0008 Arsenic 0.0008 0.003 0.0005 0.008 0.008 0.0007 Barium 0.01 0.026 0.01 0.05 0.04 0.01 Beryllium 0.0004 0.0025 0.0005 0.002 0.002 0.0005 Boron 0.02 0.073 0.01 0.06 0.06 0.01

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Table 6-9 Baseline and Post-closure Predicted Surface Water Metal Concentrations (cont’d)

Baseline Regional Water Constituent Quality Post-closure Mean Water Concentration mean 95th Percentile A B C D Units (mg/L) (mg/L) Chromium (Total) 0.0004 0.0011 0.0005 0.002 0.002 0.0005 Cobalt 0.0003 0.0009 0.0002 0.002 0.002 0.0002 Copper 0.0015 0.0037 0.0008 0.014 0.014 0.0011 Lead 0.0001 0.0005 0.0001 0.0016 0.0015 0.0001 Inorganics Manganese 0.14 0.44 0.0037 0.63 0.65 0.019 Nickel 0.0011 0.0033 0.0003 0.0103 0.0101 0.0005 Selenium 0.0003 0.0005 0.0005 0.007 0.006 0.0007 Silver 0.00001 0.0004 0.00001 0.0001 0.0001 0.00001 Zinc 0.0021 0.013 0.0011 0.0143 0.0144 0.0014

Cumulative Effects for Surface Water Metal Loadings with Respect to Human Health No cumulative effects of surface water metal loadings are anticipated given that there are no other projects of a similar nature that would potentially discharge metals to the Taseko River upstream of the proposed Project mine site.

Determination of Significance for Surface Water Metal Loadings with Respect to Human Health Given the low-level concentrations of metals predicted to reach the Taseko River, often at or below background concentrations at mixing point “A” and “D”, the prediction that surface water quality will meet all drinking water quality objectives except for antimony at mixing points “B” and “C”, and concentrations of all CoPCs at all mixing points are lower than baseline concentrations from the mine site, the effect of the Project metal loadings in surface water with respect to human health are concluded to be not significant. In addition, mitigation measures for dealing with water quality upon mine closure and eventual discharge to the receiving environment include a commitment by Taseko to meet generic or site-specific water quality guidelines that may be developed for the Project during the permitting stage. Therefore, the conservative predictions of water quality exceedance of antimony of drinking water quality objectives in the post-closure phase represent a worst-case scenario and would not be significant in light of mitigation.

Confidence in Predictions The confidence in the potential loading of metal impact water to surface water bodies in the Project area is reliant on the confidence in the prediction of the surface water quality modeling exercise. Volume 5, Section 2 states that predictions in altered water chemistry in the Taseko River post-closure can be made with confidence.

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Follow-up and Monitoring Additional follow-up and monitoring is not recommended with respect to drinking water quality in the area of the Project.

6.3.1.6 Project Effect of Human Health Risks from Metal Loadings in Country Foods on Human Health There are a variety of activities during construction, operations, decommissioning and reclamation of the proposed Project that have the potential to affect the quality of country foods. Potential human exposure to metal concentrations in country foods will be greatest after closure of the mine site, when local wildlife and bird species will have access to vegetation on the reclaimed site and when water from the Pit Lake and TSF is released into the regional watershed. The baseline HHRA (Appendix 6-6-A) determined that under current environmental conditions there would be negligible risk to humans consuming wild game and fish in the LSA. The EA methodology for conducting the effects assessment of the Project was to employ data reported on changes in soil or water metal concentrations as a result of Project activities, and determine if these altered conditions then pose a potential risk to humans consuming country foods within the LSA.

Metal Loadings with Respect to Country Foods There are two potential mechanisms by which country foods and fish tissue concentrations may be affected by Project emissions. The first is potential metal deposition onto soil from mine activities (discussed previously) that would increase the soil concentrations of metals, and subsequent uptake into vegetation, mammals and avian species. In addition, the loading of metals in avian and mammal species also considered the incidental ingestion of soil and metal containing dust on vegetation. The second is the potential for increased body burden of metals in fish from changes in water chemistry in receiving water bodies from Pit Lake and TSF discharge post-closure.

Mitigation for Metal Loadings with Respect to Country Foods Mitigation measures and strategies to reduce the effect of metal deposition on soil metal concentrations are provided in Volume 5, Section 4.9. No additional mitigation recommendations are provided in this section of the EA.

Characterization of Residual Project Effects on Metal Loadings with Respect to Country Foods Residual Project effects on metal loadings with respect to country foods were assessed using a number of different measures, including: • changes in metal concentrations in soil • changes in metal concentrations in surface water and fish tissue • predicted non-cancer risk from country food consumption • predicted cancer risk from country food consumption • predicted non-cancer risk from fish consumption • predicted cancer risk from fish consumption

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A number of Project design features, operational protocols and mitigation measures will be used to minimize releases of dust and metals and potential accumulation in soil, vegetation and surface water. In addition, although some accumulation of metals in soil and vegetation may occur in areas within and immediately adjacent to the mine site, these areas will likely not be used for harvesting during the operation of the mine. As noted in Section 6.4.5.7, chemical hazards in tailings and waste storage areas will be assessed at mine closure prior to the release of any waste materials to the natural environment. This will also minimize the potential for human exposure to metals in country foods over the long-term.

Changes in Metal Concentrations in Soil Volume 5, Section 4.9: Terrain and Soils describes the predicted effect of deposition of metals as a result of Project related activity to soils for both the construction and operational phases of the Project. In the soils assessment under baseline conditions, boron, molybdenum and cadmium were conservatively reported as exceeding the CCME agricultural land use soil quality guidelines. However, baseline concentrations of these chemicals in soil were below the measurable analytical laboratory detection limits and for the purposes of the human health and ecological assessment they were therefore not considered to subsequently load to the environment above the CCME guidelines. Therefore, these elements were not quantitatively considered in the HHRA. It was predicted that the construction phase would not alter the soil chemistry over baseline conditions. However, during the operations phase, copper would exceed the agricultural guidelines prior to the end of the 19-year period of operation. Although copper was not predicted to pose an unacceptable risk in the baseline HHRA, it was carried forward in this assessment. In addition, in the baseline HHRA, chromium and arsenic were identified as exceeding tolerable risk benchmarks in the country food assessment. Therefore, these chemicals were carried forward in the determination of whether or not their loading to soil over the life of operations would pose an increased potential risk through human ingestion of country foods. Table 6-10 provides a summary of potential changes in soil metal loadings during the various phases of the Project that were used to estimate potential uptake into vegetation and country food body burdens. For the purposes of the HHRA and country food assessment, both the mean (average) and 95th percentile concentrations of metals in soil in the baseline, plus the addition of the Project emissions were evaluated. Given that hunters, trappers and anglers would be excluded from the LSA during active mine operations and closure, and predicted soil concentrations for chromium and copper are below the soil contact guidelines for human health and arsenic is marginally above, direct soil ingestion and contact exposure pathways were deemed not to pose a potential risk to human health and were not evaluated further in the HHRA.

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Table 6-10 Changes in Soil Quality as a Result of Project Activities Metal CCME Soil Quality Guideline Baseline Soil Concentration After 19 Years of Operation Agricultural Residential Mean 95th % Mean 95th % Land Use Parkland Land (soil contact) Use (soil contact) mg/kg Arsenic 12 (12) 12 (12) 7.1 13 8.8 15 Chromium (total) 64 (220) 64 (220) 51 94 69 106 Copper 63 (1100) 63 (1100) 43 103 287 347 NOTES: ( ) concentrations in brackets are the health based guidelines for direct soil contact and ingestion

Changes in Water Chemistry Metal Concentrations Changes in the metal concentration in water bodies have the potential to increase the fish tissue metal body burden concentration. As demonstrated in Table 6-11, for the most part, there is no alteration in the metal concentrations in the Taseko River during post-closure. However, concentrations of some metal parameters in the mixing points “B” and “C” had elevated concentrations of some select parameters (e.g., arsenic, total chromium, copper and selenium). Although antimony was elevated in water at these locations it was not considered to pose a potential increased risk to humans from fish tissue consumption. This is due to the fact that the slightly elevated antimony concentrations in water do not translate to discernable increase in fish tissue, based on antimony’s bioaccumulation potential from water to fish tissue. The modeled water concentrations at the four mixing points were used to predict the body burden concentrations of metals in fish in the Taseko River (mixing points “A” and “D”) and Lower Fish Creek (mixing points “B” and “C”) for human consumption. Table 6-11 provides fish tissue concentrations from regional baseline data that were reported in the baseline HHERA and those predicted via bioconcentration of water chemistry in the post- closure phase of the Project. Although fish tissue concentrations of the four metals were elevated in mixing zones “B” and “C”, they were predicted to be at a similar or lower concentration than those measured in baseline in the Taseko River in mixing points “A” and “D”.

Table 6-11 Changes in Metal Concentrations in Fish Tissue as a Result of Post-closure Water Discharges to the Taseko River Metal Fish Tissue Concentrations Taseko River Baseline Post-closure (Measured Data) (Predicted Concentrations at Mixing Points) Mean 95th % A B C D mg/kg wet weight Arsenic 0.035 0.09 0.05 0.82 0.78 0.06 Chromium (total) - 0.25 (DL)0.10 0.46 0.44 0.06 Copper 0.53 0.70 0.98 3.4 3.3 1.2 Selenium 0.24 0.40 0.09 1.1 1.1 0.12

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Predicted Non-Cancer Risk from Country Food Consumption Table 6-12 provides a summary of the potential risk to both toddlers and adults from ingestion of country foods under existing conditions (baseline) and after 19 years of mine operations. With the exception of chromium in moose meat, there are no potential non- cancer risks above the acceptable benchmark of 0.2. For chromium (total), elevated HQs of greater than 0.2 were calculated for both the baseline and after 19 years of operation of the mine. This suggests that chromium levels in moose meat could already pose a potential issue for consumption and mine operations would not alter these tissue concentrations to any measurable degree and hence would not alter the risk predictions over baseline. Although potential risks have been calculated for chromium (total), HQ values were derived using modeled moose meat concentrations using existing soil, water and vegetation data. Given the conservatism built into the baseline model and the predictions after 19 years of mine operation, there is unlikely a potential risk for humans consuming moose meat. However, Taseko will consider conducting an assessment of existing metal levels in moose meat as part of their due diligence program prior to the start of the Project if this issue remains a significant potential concern. This will establish the actual baseline risk posed to people consuming moose in the area. In the event that the concentrations are elevated then it would be recognized that this is an existing natural level in the area and would not be attributable to mining operations in the future. Overall, it was determined that First Nations or subsistence hunters in the area would not be at an undue non-carcinogenic risk from ingestion of country foods in the LSA either during existing conditions or after 19 years of mine operations.

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Table 6-12 Predicted Hazard Quotients for Toddlers and Adults Consuming Country Foods in the Local Study Area1 Hazard Quotients (non-carcinogenic risk) Toddler Adult Baseline Operations Baseline Operations 95th 95th 95th 95th Metal Mean Percentile Mean Percentile Mean Percentile Mean Percentile Vegetation Arsenic 0.020 - 0.092 - 0.009 - 0.012 - Chromium (Total) 0.109 - 0.030 - 3.39E-05 - 2.50E-06 - Copper 0.022 - 0.036 - 0.010 - 0.005 - Willow Ptarmigan Arsenic 0.003 0.008 0.004 0.007 0.002 0.004 0.002 0.004 Chromium (Total) 0.009 0.044 0.019 0.030 0.005 0.024 0.010 0.016 Copper 0.006 0.012 0.007 0.008 0.003 0.006 0.004 0.004 Muskrat Arsenic 0.001 0.003 0.002 0.003 0.001 0.002 0.001 0.002 Chromium (Total) 0.003 0.017 0.007 0.012 0.002 0.010 0.004 0.007 Copper 0.002 0.005 0.003 0.003 0.001 0.003 0.002 0.002 Moose Arsenic 0.045 0.116 0.057 0.093 0.025 0.063 0.031 0.051 Chromium (Total) 0.125 0.620 0.268 0.414 0.068 0.338 0.146 0.226 Copper 0.078 0.169 0.099 0.115 0.042 0.092 0.054 0.063 NOTE: 1 Shaded cells indicate an exceedance of the associated government benchmark value.

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Predicted Cancer Risk from Country Food Consumption Predicted incremental lifetime cancer risks (ILCRs) for arsenic from ingestion of country foods are provided in Table 6-13. Similar to non-carcinogenic risks, the minor loading of soil concentrations of arsenic from deposition after 19 years of mine activity do not change the ILCR predictions from existing conditions. Although it appears that the risks slightly decrease after operations, this is an artefact of the modeling process where vegetation concentrations predicted for consumption by the wild game are less than those based on a limited number of samples measured during the baseline studies. Although a potential carcinogenic risk was identified for ingestion of moose, this is consistent with findings of arsenic carcinogenic risk from grocery store bought foods (CEPA 1993; Dabeka 1993; Hughes 1994). In fact incremental cancer risk from store bought foods range from 1.1E-03 to 3.5E-04. Therefore, the potential risk at the mine site would be no different than for others in British Columbia eating food from their grocery store.

Table 6-13 Predicted Incremental Lifetime Cancer risk from Arsenic Exposure to Country Foods in the Local Study Area1

Baseline Operations 95th 95th Country Food Mean Percentile Mean Percentile Vegetation 5.9E-06 -- 7.28E-06 Willow Ptarmigan 1.1E-06 2.8E-06 1.4E-06 2.2E-06 Muskrat 4.6E-07 1.2E-06 5.8E-07 9.5E-07 Moose 1.6E-05 3.9E-05 1.9E-05 3.2E-05 NOTE: 1 Shaded cells indicate an exceedance of the associated threshold value.

Predicted Non-Cancer Risk from Fish Consumption Due to the lack of data on fish consumption by First Nation residents in the vicinity of the Project, consumption rates were derived from surveys conducted around the Galore Creek Project in 2006 (Rescan 2006). In particular, it was assumed that toddlers ate 43 g/d and adults 100 g/d of fish tissue per day, only from fish that were exposed to water in Lower Fish Creek, and that this fish tissue was eaten a total of two months every year (i.e., 60 days per year). It is unlikely that anyone is subsistence fishing for more than 60 days per year from this area. Further communication and consultation with local FN communities will assist in determining actual consumption statistics. Non-carcinogenic risks from the ingestion of fish muscle tissue are presented in Table 6-14 for toddlers and Table 6-15 for adults. Predicted HQs were below the 0.2 conservative benchmark of acceptable risk in almost all cases, indicating that there is minimal risk to toddlers and adults from consumption of fish tissue. There was little change in predicted risks between the baseline (existing conditions) and the potential risk from ingestion of fish from the Taseko River at mixing points “A” and “D” during the post-closure phase of the Project. However, there was a potential elevated arsenic risk from ingestion of fish from the conservatively estimated fish tissue

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concentrations at mixing points “B” and “C” in Lower Fish Creek during the post-closure phase of the Project. It should also be noted that the non-carcinogenic risk of exposure to arsenic in fish is similar to that found in other studies (CEPA 1993; Dabeka 1993; Hughes 1994). It has been well established that ingestion of grocery store produce and fish in the general Canadian population results in HQs that range from >1 up to 8 (CEPA 1993). Of additional importance to this study is that arsenic in fish was measured as total arsenic, while at least some portion would have been present in its less toxic organic form. Therefore, although HQs for arsenic from fish ingestion were elevated, they are within the range expected for the general Canadian population. Therefore, overall potential loading of metals to the Lower Fish Creek and Taseko River will likely not pose a potential risk to humans during the post-closure stage of the mine.

Predicted Cancer Risk from Fish Consumption Predicted incremental lifetime cancer risks (ILCR) from arsenic exposure in fish tissue ranged between 2.7E-04 to 9.0E-05 in the baseline HHRA. At post-closure, the potential cancer risk from consumption of fish in the Taseko River (mixing points “A” and “D”) remains unchanged, and range from 2.6E-05 to 3.5E-05. However, if one was to conservatively ingest fish only from the Lower Fish Creek throughout their life (i.e., daily consumption of fish only from Lower Fish Creek, for two months per year) during the post-closure phase of the mine (when arsenic levels are most elevated), the ILCR could be as high as 4.0E-04. Although a potential carcinogenic risk was identified for ingestion of arsenic in fish, this is consistent with findings of carcinogenic risk from grocery store bought foods (CEPA 1993; Dabeka 1993; Hughes 1994). In fact incremental cancer risk from store bought foods range from 1.1E-03 to 3.5E-04, which is consistent with values reported here. As noted for non-cancer risk, an ingestion rate of fish tissue of 43 g/d for toddlers and 100 g/d for adults was used in calculating the ILCR. This is likely an overestimate of actual fish consumption that would occur from Lower Fish Creek, even for subsistence fishing in the area.

Table 6-14 Predicted Hazard Quotients for Toddlers Consuming Fish in the LSA1 Metal Fish Consumption Hazard Quotients Taseko River Baseline Post-closure (Measured data) (Predicted Concentrations at Mixing Points) Mean 95th A B C D Percentile HQ (unitless) Arsenic 0.30 0.78 0.07 1.14 1.14 0.10 Chromium (total) ND ND 0.04 0.20 0.19 0.04 Copper 0.046 0.060 0.01 0.05 0.05 0.02 Selenium 0.13 0.20 0.01 0.10 0.09 0.01 NOTE: 1 Shaded cells indicate an exceedance of the associated threshold value.

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Table 6-15 Predicted Hazard Quotients for Adults Consuming Fish in the LSA1 Metal Fish Consumption Hazard Quotients Taseko River Baseline Post-closure (Measured data) (Predicted Concentrations at Mixing Points) Mean 95th A B C D Percentile HQ (unitless) Arsenic 0.16 0.42 0.04 0.63 0.62 0.06 Chromium (total) ND ND 0.02 0.11 0.10 0.02 Copper 0.025 0.033 0.01 0.03 0.03 0.01 Selenium 0.068 0.11 0.001 0.05 0.05 0.01 NOTE: 1 Shaded cells indicate an exceedance of the associated threshold value.

Cumulative Effects on Metal Loadings with Respect to Country Foods No cumulative effects of metal loadings into country foods are anticipated given that there are no other projects of a similar nature that would deposit metals either onto surface soils or water in the area surrounding the proposed Project mine site.

Determination of Significance Given that there is little predicted change in the final metal soil concentrations or water concentration in the LSA, uptake to wild game and fish is expected to be negligible. Furthermore, risk predictions do not change from baseline to post-closure, thus effects of Project activities on the metal concentrations in country foods and fish are predicted to be not significant.

Confidence in Predictions The confidence in the predictions of potential risk to consumption of metal concentrations in country foods is high, given the confidence in the predictions in changes to water quality and metal deposition (Sections 6.3.4.5 and 6.4.4.5). In addition, the HHERA was conducted using conservative ingestion rates (i.e., consumption of fish only from affected areas, every day, 60 days per year) and toxicity reference values to ensure, that if anything, potential risks are overestimated.

Follow-up and Monitoring To confirm the conservative nature of the risk assessment and the predicted metal loading in soils, Taseko will undertake a monitoring program in the LSA for metal concentrations in soils, local surface water and vegetation. The suggested monitoring events would take place before construction begins, at start of operations, then at intervals of 2, 5, 10 and 15 years after the start of operations. Periodic sampling of background is also recommended during the lifetime of the Project, as baseline conditions may change. Results of the monitoring program will be compared against the most current baseline conditions; if increases in concentrations of chemicals of concern occur over time are observed, a formal quantitative assessment may be required.

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6.3.2 Ecological Health

6.3.2.1 Scope of Assessment for Human Health The ecological health risk assessment (ERA) focuses on potential exposure to metals emitted during the varying phases of the Project. It includes an assessment of potential risk from exposure to fugitive dust from mine operations that may affect soil metal concentrations, which may ultimately be taken up by vegetation and wildlife Project effects on ecological health were assessed in relation to three potential exposures: • predicted metal loadings in soil and dust concentrations on plants • predicted metal uptake in plants (from soil) • predicted metal body burden concentrations for higher trophic level wildlife (i.e., shrew body burden to owl) Effects of discharges on the aquatic environment are not considered in this section and can be found in Volume 5, Section 2: Water Quality and Aquatic Ecology.

6.3.2.2 Effects Assessment Methodology for Ecological Health The ERA was based on an evaluation of the nature and magnitude of the risk to the health of potential receptors associated with exposure to a potential hazard (details are provided in Section 6.3). The methodology employed in this ERA was based on guidance provided by CCME (1996) According to this framework, the risk assessment progresses from a more qualitative initial phase (problem formulation) through exposure and toxicity analyses, and culminates in a final quantitative risk characterization. The risk characterization assesses potential Project effects on ecological health based on the magnitude of the predicted risk and the degree of uncertainty and conservatism in the assessment.

6.3.2.3 Baseline Conditions for Ecological Health A considerable amount of baseline data on metal concentrations in soil, sediment, water and vegetation has been collected over the past decade at the proposed mine site. Section 6.3.3 of the HHERA Baseline Report (Appendix 6-6-A) provides further details on baseline conditions.

6.3.2.4 Project Effect of Ecological Receptors Exposed to Metal Deposition on Soils on Ecological Health The following section discusses the potential Project effects on ecological receptors.

Problem Formulation and Chemicals of Potential Concern CoPCs for the ERA were identified based on baseline studies, Project specifications and a review of chemicals that are related to copper-gold mine operations. Only metal deposition on soil related to mining activities were determined to potentially affect the ecosystem in the absence of mitigation measures (Table 3-2). The concentration of metals in soils in the LSA could potentially increase as a result of mining activity, including: mining, crushing, conveying, transportation and processing of

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ore. The Terrain and Soils assessment (Volume 5, Section 4) estimated potential soil concentrations of metals as a result of Project activities. Those metals that were determined to have a loading that would be above soil quality guidelines protective of Parkland land use, or that were of potential concern in the baseline were carried forward in the ERA. In the baseline assessment, the existing metal concentrations in soil did not pose a risk to the mammal and avian receptors. However, concentrations of boron, cobalt, and zinc were determined to be elevated for plant communities. That being said, a biophysical survey of the LSA did not indicate any stress to vegetation under baseline conditions. Given that during operations, boron levels may slightly increase and that copper values are loaded greater than their applicable CCME soil quality guideline for the protection of plant species, these two elements were quantitatively assessed for their potential risk to plants, mammals and avian species. Baseline and operations phase concentrations of these two elements in soil in the LSA are presented in Table 6-19.

Table 6-16 Changes in Soil Quality as a Result of Project Activities Metal CCME Soil Quality Guideline Baseline Soil Concentration After 19 Years of Operation Agricultural Residential Mean 95th Mean 95th Land Use Parkland Land Percentile Percentile (soil contact) Use (soil contact) mg/kg Boron 2 (2) - 8.9 23 9.4 24 Copper 63 (63) 63 (63) 43 103 287 347 NOTES: ( ) concentrations in brackets are the ecological based guidelines for direct soil contact and ingestion No value

Potential Ecological Receptors Potential adverse health effects of exposure to metals in soils associated with the Project were assessed for wildlife receptors. Key receptor species for the ERA were selected from the list of KIs outlined in Volume 5, Section 6 and were based on known presence and relative abundance in the LSA, vulnerability to potential Project effects, and, for some KIs, the socio-economic and traditional importance of the specific wildlife groups. The selected wildlife species were considered representative of all wildlife receptors (i.e., protection of these species would also provide protection for all other species) and include: • soil invertebrates • plants • moose (Alces alces) • grizzly bear (Ursus horribilis) • snowshoe hare (Lepus americanus) • masked shrew (Sorex cinereus) March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 6-37 Prosperity Gold-Copper Project

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• Canada goose (Branta canadensis) • short-eared owl (Asio flameus) • willow ptarmigan (Lagopus lagopus) Further details on receptors are provided in Table 6-17, while the site conceptual model is provided in Figure 6-4. A quantitative assessment of exposure to baseline environmental chemical concentrations (metals) was conducted for these wildlife species to characterize potential health risks (Appendix 6-6-A). Detailed descriptions of the ecological and physical characteristics of these species are included in the Appendix 6-6-B.

Table 6-17 Descriptions of Ecological Receptors Species Local Abundance Conservation Socio-economic Exposure to Status Value Chemical Hazards Moose • most frequently • not a species of • hunting and • ingestion of observed large concern wildlife viewing soil, surface mammal in the water, Project area from sediment and May to September aquatic vegetation Grizzly bear • observed in the • blue-listed in • regional and • ingestion of mine site LSA and BC and province-wide soil, surface RSA federally interest; water, designated as sensitive to vegetation of special human and prey concern disturbance species Snowshoe • present in RSA and • not a species of • hunting and • ingestion of hare observed in the concern trapping soil, surface transmission water and corridor LSA in 2006 vegetation Cinereus • likely present in the • not a species of • N/A • ingestion of shrew mine site LSA, as it concern soil, surface is widely distributed water and in British Columbia prey items in most habitat types Canada • occurs in LSA • not a species of • N/A • ingestion of goose concern soil, surface water, soil, sediment and aquatic vegetation Short-eared • none observed in • blue-listed in • N/A • ingestion of owl the RSA from May BC and soil, surface to September 2006, federally water and but is well-known designated as a prey items from the Central species of Interior and breeds special concern in the Cariboo Basin, Fraser River Basin, and Chilcotin Plateau ecosections

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Table 6-17 Descriptions of Ecological Receptors (cont’d) Species Local Abundance Conservation Socio-economic Exposure to Status Value Chemical Hazards Willow • present in RSA but • not a species of • some hunting • ingestion of ptarmigan unlikely in LSA concern vegetation, invertebrates, surface water and soil Vegetation • present • N/A • some species • root uptake of plants are from soil and traditionally shallow harvested groundwater • absorption through foliage Soil • present • N/A • N/A • ingestion of Invertebrates soil • dermal absorption

Potential Exposure Pathways and Calculation of Exposure Dose Potential exposure pathways between CoPCs in environmental media and wildlife receptors include direct ingestion, inhalation and dermal contact, as well as uptake via ingestion of plant and animal tissue. Relevant exposure pathways for the ecological receptors are provided in Figure 6-4.

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Figure 6-4 Exposure Pathway Model for Ecological Receptors

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Average Daily Dose For each receptor, the CoPC-specific Average Daily Dose (ADD) resulting from all relevant exposure pathways (Figure 6-4) was calculated. The ADD is a body weight- normalized measure of exposure that can be directly compared to a Reference Toxicity Dose (RTD) for each metal. The generalized equation for calculating the ADD is outlined below (expressed as mg chemical/kg body weight–day):

ADDj = IFj ⋅ AFj ⋅ EPCj for exposure pathway “j”, where:

IFj = Intake Factor (kg contaminated media/kg body weight–day)

AFj = Absorption Factor (unitless, generally one, but can be modified to represent compounds that have low bioavailability, or which are potentially metabolized after intake)

EPCj = Exposure Point Concentration (EPC; mg contaminant/kg media) The Intake Factor (IF) is calculated for each exposure pathway using the media-specific ingestion rate (IR), the fraction of the total ingestion rate from the site, and the receptor’s body weight (BW). For the purpose of this ERA, it was assumed that all wildlife receptors spend 100% of their time living, and feeding within the Project LSA (fsite, assumed to equal one). The IF was calculated as described below:

IFj = (IRj ⋅ fsite) / BW

Ecological Risk Characterization and Project Effects Risk characterization is the final component of an ERA. It includes quantification of the nature and magnitude of potential adverse effects that may occur to ecological receptors as a result of CoPCs within the Project area. In this stage, estimates of exposure and effects for each CoPC are integrated into a quantitative estimate (i.e., hazard quotient [HQ]) of the potential for adverse effects to ecological receptors.

Development of Ecological Hazard Quotients Ecological hazard quotients were calculated for all CoPCs by dividing the exposure estimate (i.e., ADD) for each receptor by the appropriate effects threshold (i.e., RTD) as follows:

HQ = Average Daily Dose / Reference Toxicity Dose For each receptor, HQs are calculated for all relevant exposure pathways, and summed to attain the total HQ. No adverse effect is expected to occur if the total HQ value is less than one. Conversely, a HQ >1 indicates a potential for adverse effects. Given the high degree of conservatism built into risk assessment calculations, an HQ >1 does not necessarily indicate an unacceptable level of risk. A more focused investigation may be required to provide a more realistic evaluation of the actual level of risk.

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Mitigation for Potential Effects to Ecological Receptors Potential mitigation measures and strategies to reduce the effect of metal deposition on soil metal concentration loadings are provided in Volume 5, Section 4.9. No additional mitigation recommendations are recommended with respect to ecological receptors.

Characterization of Residual Project Effects on Metal Loadings with Respect to Ecological Effects Project design measures and the mitigation measures identified in Section 6.5.4 will help control potential releases and accumulation of metal loadings in soil, vegetation and wildlife. However, to provide a conservative estimate of risk to ecological receptors, predicted risks were based on CoPC values prior to mitigation measures being introduced. Furthermore, if accumulation of metals in soil and vegetation are detected in areas within and immediately adjacent to the mine site, these areas could be remediated during the closure phase of the Project, if necessary.

Risk Estimates for Plants Table 6-18 summarizes HQs for plants, obtained by dividing the baseline and operations phase soil concentration (mean and 95th percentile) by a phytotoxicity benchmark. Details of these benchmark values are provided in Appendix A. Plant HQs for boron already exceed the benchmark of one under baseline soil concentrations in the LSA. During the operations phase, the loadings to soil are minor and only slightly increase the HQs. Existing soil concentrations in the LSA result in plant HQs below the benchmark of one, while there is a potential that during the operations phase the predicted concentration of copper loading to soils would pose a potential risk to plants in the area (HQ >1). The phytotoxicity benchmarks are conservatively derived based on laboratory experiments on plants. Their exceedance in the ERA does not necessarily mean that there will be actual phytotoxicity effects as a result of Project activities.

Table 6-18 Hazard Quotients for Plants1 HQ for Phytotoxicity Mean Soil Concentration 95th Percentile Soil Concentrations Metal Baseline Operations Baseline Operations Boron 18 19 47 48 Copper 0.19 1.3 0.46 1.5 NOTE: 1 Shaded cells indicate an exceedance of the associated threshold value.

Ecological Risk (Effects) Assessment Hazard quotients for all mammals (Table 6-19) and avian species (Table 6-20) exposed to average concentrations and 95th percentile concentrations metals in the LSA were less than one under both baseline and the operations phase of the Project. Therefore, although soil concentrations for boron and copper are expected to increase above the soil quality guidelines after 19 years of mine operation, the Project is not expected to result in adverse ecological health effects. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 6-42 Prosperity Gold-Copper Project

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Table 6-19 Hazard Quotients for Wildlife Receptors

Masked Shrew Snowshoe Hare Moose Grizzly Bear Exposure to Mean (Average) Soil Concentrations Metal Baseline Operations Baseline Operations Baseline Operations Baseline Operations Boron 0.01 0.01 0.07 0.01 0.02 0.01 0.02 0.004 Copper 0.09 0.23 0.08 0.09 0.03 0.03 0.04 0.04 Exposure to 95th Percentile Soil Concentrations Boron 0.02 0.02 0.07 0.02 0.0715 0.06 0.03 0.01 Copper 0.13 0.26 0.16 0.10 0.0608 0.04 0.07 0.05

Table 6-20 Hazard Quotients for Avian Wildlife Receptors

Canada Goose Willow Ptarmigan Short-eared Owl Exposure to Mean (Average) Soil Concentrations Metal Baseline Operations Baseline Operations Baseline Operations Boron 0.029 0.01 0.05 0.01 0.003 0.001 Copper 0.01 0.02 0.02 0.03 0.01 0.02 Exposure to 95th Percentile Soil Concentrations Boron 0.06 0.02 0.11 0.04 0.01 0.003 Copper 0.03 0.03 0.04 0.03 0.02 0.02

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Cumulative Effects on Metal Loadings with Ecological Health No cumulative effects of metal loadings into the environment are anticipated given that there are no other projects of a similar nature that would deposit metals onto surface soils in the area surrounding the proposed Project mine site.

Determination of Significance Given that there is little change in the final metal soil concentrations in the LSA, the uptake to ecological receptors is not expected to be high, and risk predictions do not change from baseline to post-closure, no significant effects from Project activities on ecological health is predicted.

Confidence in Predictions The confidence in the predictions of potential risk to ecological health is high, given the confidence in the predictions in changes to metal deposition that have already been stated. In addition, the ERA was conducted using conservative ingestion rates and reference toxicity dose values to ensure that, if anything, potential risks are overestimated.

Follow-up and Monitoring To confirm the conservative nature of the risk assessment and the predicted metal loading in soils, Taseko will consider undertaking a monitoring program in the LSA for metal concentrations in soils, local surface water and vegetation throughout the Project. The suggested monitoring events would take place before construction begins, at start of operations, then at intervals of 2, 5, 10 and 15 years after the start of operations. Periodic sampling of background is also recommended during the lifetime of the Project, as baseline conditions may change. Results of the monitoring program will be compared against the most current baseline conditions; if increases in concentrations of chemicals of concern occur over time are observed, a formal quantitative assessment may be required.

6.4 Summary of Effects on Human and Ecological Health Potential effects on human and ecological health specifically related to exposure of aerial emissions and water discharges from the Project were examined. In addition, residual and cumulative effects were also addressed for the following: • emissions of criteria air contaminants (CACs) from Project activities (Volume 4, Section 2) and their potential to affect human health • deposition of inorganic elements on soil released from mining activity (Volume 5, Section 4) and their potential to increase soil metal concentrations and affect country foods for human consumption and ecological health • release , seepage or discharge of metals to the watershed (Volume 5, Section 2) post- closure and their potential to increase the metal body burden of fish tissue, thus potentially affecting human health and ecological receptors through consumption

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The assessment was conducted using both standard quantitative and qualitative risk assessment methodologies.

Summary of Effects on Human Health Changes to air quality in the Nemaiah Valley, the closest community located 20 km north-west of the Project, were assessed for potential health effects. Although predicted concentrations of CACs increased in the community during the construction phase through to the operations phase of the Project, they will remain well below background concentrations of these chemical concentrations in air. Thus, it is concluded that air emissions from the Project would be relatively minor at the closest community to the proposed mine site. First Nation and recreational hunters/anglers potentially use the Project LSA for hunting, fishing and trapping. During the construction and operations phases of the Project, all mine surface water will be diverted to the TSF and not released into the receiving watersheds of the LSA. However, during the post-closure phase of the Project, controlled discharge from the Pit Lake to Lower Fish Creek and the TSF to the Taseko River will occur. It was determined that surface water concentrations in the four predicted mixing zones (“A” to “D”) were below drinking water quality objectives, with the exception of antimony, in Lower Fish Creek. Assuming that local harvesters occasionally use water bodies in the regional watershed for drinking water, the Project is not anticipated to have an effect on surface water drinking water quality of concern to human health. The potential effect of metal loadings in soil and subsequent uptake in country foods was evaluated. The effect of soil loading to wildlife through direct contact and ingestion, and subsequent human ingestion of such wildlife was evaluated for arsenic, chromium and copper. Potential risk to humans from consumption of vegetation, willow ptarmigan, muskrat and moose indicated that the health risk would be no different from baseline conditions, even after 19 years of mining activity. Fish tissue concentrations of metals have the potential to increase during the post-closure phase of the mine when water is discharged from the Pit Lake into Lower Fish Creek and from the TSF to the Taseko River. Arsenic, chromium, copper and selenium concentrations in fish tissue were predicted using water quality values at each of the four mixing points. There was little change between baseline risk from consumption of fish in the LSA and those that would be caught in the Taseko River (mixing points “A” and “D”). However, consumption of fish from Lower Fish Creek would result in a potential effect on human health. However, the predictions were made using two very conservative predictions: a) fish tissue concentrations are likely overestimated, and b) it is unlikely that anyone would consume as much fish as modelled from either river (i.e., consumption of fish, only from Lower Fish Creek, every day, 60 days per year). Therefore, overall potential loading of metals to the Lower Fish Creek and Taseko River will likely not pose a potential risk to humans during the post-closure phase of the mine.

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Summary of Effects on Ecological Health The potential effects of metal loading onto soil as a result of Project activities were quantitatively assessed for wildlife and avian species, including: • soil invertebrates • plants • moose (Alces americanus) • grizzly bear (Ursus arctos) • snowshoe hare (Lepus americanus) • cinereus shrew (Sorex cinereus) • Canada goose (Branta canadensis) • short-eared owl (Asio flammeus) • willow ptarmigan (Lagopus lagopus) Hazard quotients (risk estimates) for all mammals and avian species were less than one, for both baseline and the operations phase of the Project. Therefore, although soil concentrations for boron and copper are expected to increase above the soil quality guidelines after 19 years of mine operation, they will not adversely affect ecological health in the LSA. Potential plant effects were assessed by dividing the predicted soil concentrations with phytotoxicity benchmarks. Plant HQs for boron currently exceed the benchmark of one under existing soil concentrations in the LSA. During the operations phase, the loadings to soil are minor and only slightly increase the HQs. Existing soil concentrations in the LSA result in plant HQs below the benchmark of one. During the operations phase, there is a potential that the predicted concentration of copper loading to soils would pose a potential risk to plants in the area (HQ >1). The phytotoxicity benchmarks are conservatively derived based on laboratory experiments on plants. Their exceedance in the ERA does not necessarily mean that there will be actual phytotoxicity effects as a result of Project activities.

6.4.1 Summary of Mitigation for Human and Ecological Health Mitigation measures that address issues of release of air contaminants, soil loading of metals and discharge of Pit Lake and TSF water into the surrounding watershed are provided in other sections of the EA, including: • Volume 4, Section 2: Atmospheric Environment • Volume 5, Section 2: Water Quality and Aquatic Ecology • Volume 5, Section 4: Terrain and Soils No additional human or ecological health specific mitigation measures are recommended for human and ecological health.

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6.4.2 Summary of Residual Project and Cumulative Environmental Effects on Human and Ecological Health No cumulative effects of metal loadings into country foods or the environment are anticipated given that there are no other projects of a similar nature that would deposit metals either onto surface soils or water in the area surrounding the proposed Project mine site.

6.4.3 Follow-up and Monitoring for Human and Ecological Health To confirm the conservative nature of the risk assessment and the predicted metal loading in soils, Taseko will undertake a monitoring program in the LSA for metal concentrations in soils, local surface water and vegetation throughout the Project. The suggested monitoring events would take place before construction begins, at start of operations, then at intervals of 2, 5, 10 and 15 years after the start of operations. Periodic sampling of background is also recommended during the lifetime of the Project, as baseline conditions may change. Results of the monitoring program will be compared against the most current baseline conditions; if increases in concentrations of chemicals of concern occur over time are observed, Taseko will consider a formal quantitative assessment. In addition, a number of the monitoring recommendations made in other volumes and sections of the EA will also serve to protect human and ecological health (e.g., air monitoring, Volume 4, Section 2). Chemical changes in air, water and soil quality are expected to be minor in nature throughout the Project. Given the proposed mitigation, environmental protection measures and proposed monitoring measures, the effects of the Project on human and ecological health are anticipated to be not significant. In addition, cumulative effects on human and ecological health were assessed in combination with other past, present and likely future projects in the area. None of the identified projects will result in chemical emissions of either metals or CACs that will overlap with the areas studied for the protection of human and ecological health. Therefore, no cumulative effects are anticipated for human and ecological health.

6.4.4 Additional Considerations for Human Health and Ecological Risk Assessment

6.4.4.1 Climate Change Climate change will not have an effect on the outcome of the human health and ecological risk assessment.

6.4.4.2 Mountain Pine Beetle Mountain pine beetles potentially can have an effect on the habitat and movement of certain wildlife in the Project area; however, from a chemical impact point of view MPB will not affect the outcome of the human health and ecological risk assessment.

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Appendix 6-A Human Health Toxicity Values

Non-Carcinogen Carcinogenic

CoPC TDI SForal mg/kg-d Reference (mg/kg-d)-1 Reference Antimony 0.0004 EPA 2007 NA NA Arsenic 0.0003 EPA 2007 2.80 HC 2004 Barium 0.016 HC 2004 NA NA Beryllium 0.002 EPA 2007 NA NA Boron 0.2 EPA 2007 NA NA Chromium (Total) 0.001 HC 2004 NA NA Cobalt 0.02 EPA 2004 NA NA Copper 0.03 HC 2004 NA NA Lead 0.0036 HC 2004 NA NA Manganese 0.14 EPA 2007 NA NA Mercury - Inorganic 0.0003 HC 2004 NA NA b a 0.0002 HC 2007 NA NA Mercury–Methylmercury 0.00047 c HC 2007 NA NA Nickel 0.02 EPA 2007 NA NA Selenium 0.005 EPA 2007 NA NA Silver 0.005 EPA 2007 NA NA Zinc 0.3 EPA 2007 NA NA NOTES: a only relevant to fish VEC. b TDI for toddlers and pregnant mothers. c TDI for general population. NA– not applicable

A.1 References EPA (United States Environmental Protection Agency). 2004. Region 9: Preliminary Remediation Goals (PRG) Table, October 2004. EPA (United States Environmental Protection Agency). 2007. Integrated Risk Information System (IRIS) Database. United States Environmental Protection Agency. Available on-line at: http://www.epa.gov/iris/. HC (Health Canada). 2004. Federal Contaminated Site Risk Assessment in Canada, Part II: Health Canada Toxicological Reference Values. Environmental Health Assessment Services, Safe Environments Programme. HC (Health Canada). 2007. Human Health Risk Assessment of Mercury in Fish and Health Benefits of Fish Consumption. Bureau of Chemical Safety Food Directorate Health Products and Food Branch.

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Appendix 6-B Human Health Risk Calculation Example–Operations

B.1 Non-carcinogens

Hazard Quotient Derivation CDI HQ = TDI Where: HQ = hazard quotient CDI = chronic daily intake (mg metal/kg body weight-day) TDI = tolerable daily intake (mg metal/kg body weight-day)

If the exposure dose is less than the safe dose (i.e., HQ <1.0), then the concentration of chemicals in the environment would not pose a health risk. However, in the human health risk assessment another 5 fold safety factor is added, and the exposure dose must only be 20% of the safe dose (HQ <0.2). These are the very conservative government (both federal and provincial) benchmarks used to define an acceptable level of risk. A HQ benchmark of 0.2, assumes 80% of an individual’s intake of CoPCs will come from off- site exposures (i.e., an individual is exposed in an area that is not within the mine footprint). If the calculated total HQ is less than 0.2, then intake of CoPCs from site exposures does not exceed the tolerable level and no adverse health effects are expected. The example risk calculation below uses mean data from the operations phase.

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Toddler–Mean Adult–Mean Intake Intake Rate [Metal] EDI TDI HQ Risk Rate Metal EDI TDI HQ Risk TDI COPC mg/ Mg/ kg/d mg/kg mg/kg-d kg-d kg/d Conc. kg-d Reference Arsenic 0.002 0.003943 4.78E-07 0.0003 0.001593 No risk 0.005 0.003943 2.79E-07 0.0003 0.00093 No risk IRIS Chromium (Total) 0.002 0.061521 7.46E-06 0.001 0.007457 No risk 0.005 0.061521 4.35E-06 0.001 0.004351 No risk IRIS Copper 0.002 0.6793 8.23E-05 0.03 0.002745 No risk 0.005 0.6793 4.8E-05 0.03 0.001601 No risk HC 2004

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B.2 Carcinogens

Incremental Lifetime Cancer Risk Derivation ILCR = CDI * CSF Where: ILCR = Incremental Lifetime Cancer Risk CDI = Chronic daily intake (mg/kg -day) CSF = Cancer Slope Factor (mg /kg-day)-1

The ILCR estimates the incremental probability that an individual will develop cancer as a result of lifetime exposure to a substance (e.g., arsenic). The incremental lifetime cancer risk is in addition to the probability of developing cancer due to ambient exposures. Given the conservatism associated with the derivation of cancer slope factors and unit risks, Health Canada and British Columbia have recommended a benchmark cancer risk level of 1-in-100,000 (1E-05) for the purposes of assessing carcinogenic substances. Accordingly, cancer risks are deemed negligible when the estimated ILCR is ≤1-in- 100,000 (1E-05). This government cancer benchmarks for risk assessment is based in policy, on the idea that this rate of cancer from exposure to environmental chemical concentrations would not affect the current Canadian cancer incidence rate of approximately 40%. This means that more than one in three British Columbians are at risk of getting cancer in their lifetime, and the results of the cancer risk assessment would not change this for individuals exposed to chemicals from the Project. The example risk calculation below uses mean data from the operations phase.

Adult - Mean COPC Intake Rate [Metal] EDI TDI ILCR Risk ICLR kg/d mg/kg mg/kg-d mg/kg-d Reference Arsenic 0.005 0.003943 2.08E-07 2.80E+00 5.83E-07 No risk HC, 2004

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Appendix 6-C Ecological VEC Descriptions

The following descriptions provide details of the ecology and physical attributes that are relevant to the ecological risk assessment. Some of these parameters are estimates (e.g., food ingestion rate, water intake rate) that were derived using equations from sources supported/provided by the US EPA and CCME (i.e., Nagy’s (1987) equations for food ingestion rates).

C.1 Moose In Canada, the geographic distribution of moose follows, but is not confined to, the boundaries of the boreal forest. Moose are highly dimorphic between sexes, with cows weighing much less than bulls. The average body weight (for both sexes) is 435 kg, although bulls of the northern subspecies, a. a. gigans can weigh as much as 800 kg (Dewey et al. 2000; NWF 2005; CWS and CWF 2007). Although seasonal home ranges are surprisingly small for a large herbivorous animal (5 to 10 km2), annual home ranges 2 can be up to 40 km or more depending on habitat and food availability (BC MOE 2000; Lawson and Rodgers 1997 in NatureServe 2006). Seasonal migration usually follows an elevation gradient, as moose seek higher grounds in summer and lower elevations in winter. Moose are entirely herbivorous, consuming an estimated 18.6 kg/day (ww) of food, comprised of a mixture of terrestrial (80%) and aquatic (20%) vegetation. In winter, the diet consists primarily of conifer and hardwood twigs and shrubs (CWS and CWF 2007; NatureServe 2006; Dewey et al. 2000). The summer diet is more variable, consisting of leaves, twigs, bark, roots, and shoots of woody plants, as well as some grasses. Additionally, a considerable portion of the summer diet is aquatic vegetation (e.g., lilies, pondweed, etc.), which moose will occasionally dive underwater to retrieve (CWS and CWF 2007; NatureServe 2006, Dewey et al. 2000). Based on its consumption of these foods, the moose is estimated to incidentally ingest 1.43E-01 kg/day of dry soil and 1.08E-01 kg/day dry sediment. Water intake is estimated to be approximately 23.5 L/day.

C.2 Snowshoe Hare The snowshoe hare is an herbivore weighing approximately 1.35 kg (EPA 1993). The snowshoe hare tends to inhabit forests, swamps, and riverside thickets (EPA 1993). Home ranges vary from 3 to 7 ha (Shefferly 1999). A frequent prey item, the snowshoe hare may be a keystone species in boreal forests, maintaining food webs (CWS and CWF 2005). Active year-round, it feeds on herbaceous plants and leaves from shrubs in summer, and small twigs, buds, and bark in winter; it will eat meat occasionally, if available (CWS and CWF 2005). The snowshoe hare consumes approximately 0.26 kg of wet weight food per day and 0.13 L of water or its equivalent per day. The snowshoe hare's diet is modeled as including 95% terrestrial plant material and 5% small mammal or bird carrion. Based on its consumption of these foods, the snowshoe hare is estimated to incidentally ingest 3.58E-03 kg/day of dry soil.

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C.3 Muskrat The muskrat weighs approximately 1.17 kg and is a highly aquatic rodent, living in saltwater and brackish marshes, freshwater creeks, streams, lakes, marshes, and ponds (EPA 1993). Home ranges vary in configuration depending on aquatic habitat and range from approximately 0.048 to 0.17 ha (EPA 1993). Muskrat are prey for many species including foxes, hawks, minks, and otters, and feed mainly on aquatic vegetation, although they also consume terrestrial vegetation, benthic invertebrates, young birds, reptiles, amphibians, and fish (EPA 1993). Active year-round (EPA 1993), muskrats consume approximately 0.12 kg of wet weight food per day and 0.11 L of water or its equivalent per day. The muskrat is one of the most valuable fur animals in North America (EPA 1993). The muskrat's diet is modeled as including 12.5% terrestrial plant material, 80% aquatic plant material, 2.5% terrestrial mammals, 2.5% fish and 2.5% benthic invertebrates. Based on its consumption of these foods, the muskrat is estimated to incidentally ingest 9.93E-05 kg/day of dry soil, and 2.05E-03 kg/day of dry sediment.

C.4 Mink The mink, which weighs approximately 0.85 kg, is a small member of the weasel family and is the most abundant and widely distributed carnivorous mammal in North America (EPA 1993). Mink are active year-round and are associated with aquatic habitats such as rivers, streams, lakes, ditches, swamps, marshes and backwater areas (EPA 1993). Home ranges vary considerably but are in the range of 7.8 to 380 ha (EPA 1993). Feeding extensively on small mammals, fish, amphibians, and crustaceans, as well as birds, reptiles, and insects depending on the season (EPA 1993), mink consume approximately 0.22 kg of wet weight food per day and 0.09 L of water or its equivalent per day. The mink's diet is modeled as including 55% small mammal or bird prey, 35% freshwater fish, and 10% benthic invertebrates. Based on its consumption of these foods, the mink is estimated to incidentally ingest 3.58E-04 kg/day of dry soil, and 7.77E-04 kg/day of dry sediment.

C.5 Masked Shrew The masked shrew, which weighs approximately 0.005 kg (EPA 1993), is the most widely distributed shrew in North America, and is found throughout most of Canada (Lee 2001). It is common in moist environments and is found in open and closed forests, meadows, riverbanks, lakeshores, and willow thickets (Lee 2001). Home range sizes are 0.2 to 0.6 ha (Saunders 1988). Masked shrews are preyed upon by many small predators such as weasels, hawks, falcons, owls, domestic cats, foxes, snakes, and short-tailed shrews (Lee 2001). The masked shrew does not hibernate (NWF 2003) and feeds year- round on insects (dormant insects in winter) (NWF 2003; Lee 2001) including insect larvae, ants, beetles, crickets, grasshoppers, spiders, harvestmen, centipedes, slugs, and snails, but will also consume seeds and fungi (Lee 2001). It consumes approximately 0.003 kg of wet-weight food per day and 0.001 L of water or its equivalent per day. The masked shrew's diet is modeled as including 2.5% terrestrial plant material and 97.5% terrestrial invertebrates. Based on its consumption of these foods, the masked shrew is estimated to incidentally ingest 4.44E-05 kg/day of dry soil.

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C.6 Grizzly Bear The grizzly bear weighs approximately 225 kg (CWS and CWF 2005). It occupies a variety of habitats, preferring open areas such as tundra, alpine meadows, and coastlines (Ballenger and Dewey 2002). Not a true hibernator, the grizzly bear enters its den around mid-November and emerges in March to early May (CWS and CWF 2005). Home range 2 sizes vary with food supply from approximately 200 to 1800 km (CWS and CWF 2005). Grizzly bear diets rely heavily on vegetation, consisting of berries, roots of the legume Hedysarum, and leafy plants (CWS and CWF 2005). When available, they will supplement their diet with newborn ungulates, invertebrates and salmon (CWS and CWF 2005). Grizzly bears consume approximately 16.1 kg of wet weight food per day and 13 L of water or its equivalent per day. The grizzly bear's diet is modeled as including 85% terrestrial plant material, 2.5% terrestrial invertebrates, and 12.5% small mammals. Based on its consumption of these foods, the grizzly bear is estimated to incidentally ingest 1.67E-01 kg/day of dry soil. Fish, however, are not included in the model grizzly bear diet, since consumption of fish would be a seasonal feature, and the fish (e.g., Pacific salmon) are unlikely to contain site-originated CoPCs. The greatest threat to grizzly bears is human encroachment on their habitat. The grizzly bear is blue-listed in BC (CDC 2007) and is federally designated as of Special Concern (COSEWIC 2006). Although the grizzly bear would not normally be recommended as a receptor for ERAs (due to its large home range), its importance in the regional ecosystem, conservation concern, and known presence at the mine site warranted its inclusion.

C.7 Canada Goose The Canada goose is a large, primarily herbivorous waterfowl that weighs approximately 3.7 kg (EPA 1993); however, several varieties exist, and body weights may range from as little as 1 kg (for the small “cackling” variety to 8 kg (for the “giant” variety). The migratory Canada goose breeds in forested areas near lakeshores and coastal marshes from the Arctic tundra through temperate climates, and forages primarily in open fields (EPA 1993). Mean home ranges during the breeding season are approximately 983 ha, and may vary from 290 to 2830 ha in size (EPA 1993). The Canada goose consumes approximately 0.8 kg of wet weight food per day and 0.14 L of water or its equivalent per day. The Canada goose's diet is modeled as including 99% terrestrial plant material and 1% soil invertebrates. Based on its consumption of these foods, the Canada goose is estimated to incidentally ingest 2.60E-02 kg/day of dry soil.

C.8 Mallard The mallard duck is found nesting near woodland lakes and streams, or in freshwater and tidal marshes, and adapts well to human activity in urban areas. The mallard duck weighs approximately 1.16 kg. Home range sizes vary from approximately 40 to 1400 ha (EPA 1993). The mallard duck feeds primarily on aquatic invertebrates as ducklings and adults during the breeding season and on aquatic and terrestrial plants during the non-breeding season (CWS and CWF 2005). Breeding females consume approximately 0.61 kg of wet weight food per day and 0.07 L of water or its equivalent per day. The duck's diet is modeled as including 12.5% terrestrial plant material, 12.5% aquatic plant material, and 75% benthic invertebrates. Based on its consumption of these foods, the duck is estimated to incidentally ingest 4.38E-04 kg/day of dry soil, and 1.24E-02 kg/day of dry sediment.

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C.9 Willow Ptarmigan The willow ptarmigan is a member of the grouse family weighing approximately 0.63 kg (CWS and CWF 2005); it is the largest and most numerous of the ptarmigan species (Cornell Lab of Ornithology 2003). It lives year-round throughout the Arctic tundra, in the summer inhabiting treeline areas, Arctic valleys, and coastal tundra, and in the fall moving down slopes or south into forested areas (CWS and CWF 2005). Winter home ranges of white-tailed ptarmigan (Lagopus leucurus), which inhabit the Cascade and Rocky Mountains of North America (CWS and CWF 2005), are approximately 24 to 390 ha in size (Giesen and Braun 1992). Ptarmigan spend most of their lives on the ground and are mainly herbivorous, feeding on willow seeds, buds and twigs throughout the year, and any other vegetation that might be available (CWS and CWF 2005). Ptarmigan, especially chicks, will also feed on insects when they are available (CWS and CWF 2005). Willow ptarmigan are estimated to consume approximately 0.23 kg of wet-weight food per day and 0.04 L of water or its equivalent per day. They are valued for their meat and hunted by local residents (CWS and CWF 2005). The willow ptarmigan's diet is modeled as including 75% plant material and 25% soil invertebrates. Based on its consumption of these foods, the willow ptarmigan is estimated to ingest 2.69E-03 kg/day of dry soil.

C.10 Short-eared Owl The short-eared owl weighs approximately 0.35 kg. Although widespread throughout North America (Doan 1999), the short-eared owl is blue-listed in BC (CDC 2007) and federally designated as a species of special concern (COSEWIC 2006). Found in open, treeless areas, this migratory species is a daylight and twilight hunter found in marshes and bogs and uses similar habitats during the summer and winter (Doan 1999). Short- eared owls have relatively small home ranges of approximately 15 to 200 ha (Lewis 2005) during the breeding season. Short-eared owls nest on the ground on dry sites in open country where small mammal prey is abundant (Doan 1999). In addition to small mammals such as voles and mice, short-eared owls prey upon birds and occasionally insects (Lewis 2005). They consume approximately 0.09 kg of wet weight food per day and 0.03 L of water or its equivalent per day. The short-eared owl's diet is modeled as including 95% small mammals and 5% terrestrial invertebrates. Based on its consumption of these foods, the short-eared owl is estimated to incidentally ingest 3.63E-04kg/day of dry soil.

C.11 References Ballenger, L. and T. Dewey. 2002. Ursus arctos. Animal Diversity Web. Online: http://animaldiversity.ummz.edu/site/accounts/information/Ursus_arctos.html. BC MOE (British Columbia Ministry of Environment). 2000. Moose in British Columbia: Ecology, Conservation, and Management. MELP 851536.0300 Cornell Lab of Ornithology. 2003. All About Birds. Online Bird Guide. Accessed 2005 and 2006 at http://birds.cornell.edu/programs/AllAboutBirds/Bird Guide/. COSEWIC (Committee on the Status of Endangered Wildlife in Canada). 2006. Canadian Species at Risk. August 2006. Committee on the Status of Endangered Wildlife in Canada. Ottawa, ON. CWS and CWF (Canadian Wildlife Service and Canadian Wildlife Federation). 2005 and 2006. Hinterland Who’s Who. Accessed at various times in 2005 and 2006 at http://www.hww.ca.

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Dewey, T. 2005. Felis silvestris. Animal Diversity Web. Accessed November 29, 2005 at http://animaldiversity.ummz.umich.edu/site/accounts/information/Felis_silvestris.html. Doan, N. 1999. Asio flammeus. Animal Diversity Web. Accessed March 22, 2005 http://animaldiversity.ummz.edu/site/accounts/information/Asio_flammeus.html. EPA (United States Environmental Protection Agency). 1993. Wildlife Exposure Factors Handbook. Office of Health and Environmental Assessment, Office of Research and Development. Washington, D.C. December 1993. Giesen, K.M. and C.E. Braun. 1992. Winter home range and habitat characteristics of White-tailed Ptarmigan in Colorado. The Wilson Bulletin 104(2):263-272. Accessed March 22, 2005 at http://elibrary.unm.edu/sora/Wilson/v104n02/p0263-p0272.pdf. Lee, W. 2001. Sorex cinereus. Animal Diversity Web. Accessed March 22, 2005 at http://animaldiversity.ummz.edu/site/accounts/information/Sorex_cinereus.html. Lewis, D. P. 2005. The Owl Pages. Accessed March 22, 2005 at http://www.owlpages.com. NatureServe. 2006. NatureServe Explorer: An online encyclopedia of life [web application]. Version 6.1. NatureServe, Arlington, Virginia. Accessed March, 2007 at http://www.natureserve.org/explorer. Nagy, K.A. 1987. Field metabolic rate and food requirement scaling in mammals and birds. Ecological Monographs 57: 111-128. NWF (National Wildlife Federation). 2003. eNature. Accessed February 9, 2005 at http://www.enature.com/guides/select_group.asp. NWF (National Wildlife Federation). 2005. eNature Fieldguides: Moose. http://www.enature.com/fieldguides/detail.asp?shapeID=1033andcurGroupID=5andlgfromWhere =andcurPageNum=4. Accessed March, 2007 Saunders, D.A. 1988. Adirondack Mammals. State University of New York, College of Environmental Science and Forestry. 216pp. Accessed March 21, 2005 at: http://www.esf.edu/aec/adks/mammals/masked_shrew.htm. Shefferly, N. 1999. Lepus americanus. Animal Diversity Web. Accessed February 17, 2005 at http://animaldiversity.ummz.edu/site/accounts/information/Lepus_americanus.html.

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Section 6: Human Health and Ecological Risk Assessment

Appendix 6-D Ecological Toxicity Values

The following table presents ecological toxicity values used in the ecological risk assessment for the Masked Shrew.

Body Test Species Total Chronic LOAEL - Weight Reference Body Weight Body Weight Daily Dose Uncertainty Test Species (b) Scaling Toxicity Dose Constituent Test Species (kg wet) Reference Effect Reference Endpoint (mg/kg-day) Factor (a) (mg/kg-day) Receptor Species Factor (mg/kg-day) Inorganics Schroeder et al. (1968b), Sample et al. Antimony Mouse 0.03 USEPA (1988) lifespan, longevity chronic LOAEL 1.25 1 1.25E+00 (1996) Masked Shrew 1.1134971 1.391871326 Schroeder & Mitchner (1971), Sample et Arsenic Mouse 0.03 USEPA (1988) reproduction chronic LOAEL 1.26 1 1.26E+00 al. (1996) Masked Shrew 1.1134971 1.403006297 Barium Rat 0.35 USEPA (1988) growth, hypertension Perry et al. (1983), Sample et al. (1996) chronic NOAEL 5.1 0.2 2.55E+01 Masked Shrew 1.2903451 32.90380046 Schroeder & Mitchner (1975), Sample et Beryllium Rat 0.35 USEPA (1988) longevity, weight loss chronic LOAEL 6.6 1 6.60E+00 al. (1996) Masked Shrew 1.2903451 8.516277767 Boron Rat 0.35 USEPA (1988) reproduction Weir & Fisher (1972), Sample et al. (1996) chronic LOAEL 93.6 1 9.36E+01 Masked Shrew 1.2903451 120.7763029 Elbetieha & Al-Hamood (1997), Zahid et al Chromium III or Total Mouse 0.03 USEPA (1988) reproduction chronic LOAEL 5 1 5.00E+00 (1990), (2000) Masked Shrew 1.1134971 5.567485304 Cobalt Rat 0.35 USEPA (1988) reproduction Mollenhauer et al. (1985), ATSDR (2004) chronic LOAEL 13.25 1 1.33E+01 Masked Shrew 1.2903451 17.09707279 Copper Mink 1 USEPA (1993e) reproduction Aulerich et al. (1982), Sample et al. (1996) chronic LOAEL 15.14 1 1.51E+01 Masked Shrew 1.3742375 20.80595596 Lead Rat 0.35 USEPA (1988) reproduction Azar et al. (1973), Sample et al. (1996) chronic LOAEL 80 1 8.00E+01 Masked Shrew 1.2903451 103.2276093 Manganese Rat 0.35 USEPA (1988) reproduction Laskey et al. (1982), Sample et al. (1996) chronic LOAEL 284 1 2.84E+02 Masked Shrew 1.2903451 366.458013 Total Mercury Mink 1 USEPA (1993e) reproduction Aulerich et al. (1974), Sample (1996) chronic NOAEL 1 0.2 5.00 Masked Shrew 1.3742375 6.87118757 Ambrose et al. (1976), Sample et al. Nickel Rat 0.35 USEPA (1988) reproduction chronic LOAEL 80 1 8.00E+01 (1996) Masked Shrew 1.2903451 103.2276093 Rosenfeld & Beath (1954), Sample et al. Selenium Rat 0.35 USEPA (1988) reproduction chronic LOAEL 0.33 1 3.30E-01 (1996) Masked Shrew 1.2903451 0.425813888 Rungby and Danscher (1984), ATSDR Silver Mouse 0.03 USEPA (1988) hypoactivity subchronic LOAEL 18.1 5 3.62E+00 (1990) Masked Shrew 1.1134971 4.03085936 Schlicker & Cox (1968), Sample et al. Zinc Rat 0.35 USEPA (1988) reproduction chronic LOAEL 320 1 3.20E+02 (1996) Masked Shrew 1.2903451 412.9104372

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Section 6: Human Health and Ecological Risk Assessment

Appendix 6-E Phytotoxicity Benchmark Values

The following example provides phytotoxicity benchmarks compared to mean data from the operations phase.

Soil Concentration Phytotoxicity Screening CoPC EHQ for Phytotoxicity (mg/kg) Benchmark (mg/kg)

Boron 9.40 0.5 a 18.8 Copper 287.49 225 b 1.3 NOTES: a Efroymson, R.A., M.E. Will, G.W. Suter and A.C. Wooten. 1997. Toxicological benchmarks for screening contaminants of potential concern for effects on terrestrial plants: 1997 revision. Oak Ridge National Laboratory report ES/ER/TM-85/R3. b OME. 2004. Soil, Ground Water and Sediment Standards for Use Under Part XV.1 of the Environmental Protection Act. Table 3. March, 2004.

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Section 7: Navigable Waters

7 Navigable Waters

The Navigable Waters Protection Act (NWPA) regulates the construction of works in navigable waters. Section 5 provides that no work shall be built or placed in, on, over, under, through or across any navigable water unless the work and the site and plans thereof have been approved by the Minister (Transport Canada). The Environmental Impact Statement (EIS) Guidelines (January 2009) outlines specific information that must be included in this EIS in order that an assessment of the potential effects of the Project on navigable waters may be completed. The specific information includes the following: • Identify all waterways and water bodies that will be directly affected by components of the proposed Project and provide representative width, depth, gradient, flow and photographs of all potentially affected waterways. • Identify the Project components that will affect waterways and water bodies and the anticipated direct and indirect effects on the waterways and water bodies. • Provide information on current and/or historic usage of all waterways and water bodies that will be directly affected by the proposed Project development plan. A discussion of that information follows.

7.1 Background Design of the Prosperity Project began in the early 1990s, and in 1993 the Navigable Waters Protection Division issued an opinion on what proposed components of the Project needed to be assessed for their potential effect on navigable waters. These components were: • the use of Fish Lake as a disposal site for waste rock • the upgrading of existing road bridges over Chilcotin River and Big Creek • a water intake placed in the Taseko River—both the impact of the physical structure as well as the impact of the removal of water on downstream navigation • the crossing of the Fraser River and Big Creek by transmission lines No other body of water potentially affected by the Project was considered navigable. Since the issuance of this opinion the Project has undergone an extensive alternatives assessment process, completed feasibility, environmental baseline and impact assessment studies and begun an environmental review and assessment at both the provincial and federal level. The project now under review has changed in limited ways from that presented in 1993. The Project no longer includes the need to upgrade bridges over the Chilcotin River and Big Creek and no longer requires the construction and operation of a water intake in the Taseko River. The Project does require the use of Fish Lake and portions of Fish Creek at the mine site and includes the construction of a 125 km transmission line which would cross the Fraser River, Big Creek and approximately 125 unnamed small creeks and water bodies.

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7.2 Waterways and Water Bodies Directly Affected

7.2.1 Fish Lake Fish Lake is located within the Fish Creek watershed at an elevation of 1457 metres above sea level (masl). The lake has a drainage area of 6490 ha. The lake is 2050 m long and 541 m wide. The aspect of the lake is northwest and the drainage is as follows:

Fish Creek (150-335700-13400-47700) ↓ Little Fish Lake ↓ Fish Creek (150-335700-13400-47700) ↓ Fish Lake (01093TASR44) ↓ Fish Creek (150-335700-13400-47700) ↓ Taseko River (150-335700-13400) ↓ Chilko River (150-335700) ↓ Chilcotin River (150-000000) ↓ Fraser River (100-00000-00000-00000)

Fish Lake has one large island and four small islands and a narrow gravel beach at the Forest Recreation Site at the north end of the lake. The volume of Fish Lake is 4,438,446 m3, a surface area of 111 ha, a maximum depth of 13 m and a mean depth of 4 m. Fish Lake has three permanent inlet streams, seven ephemeral inlet tributaries and one permanent outlet stream. Fish Lake and these creeks have been extensively studied and the results can be found in Volume 5, Appendix 5-3-A (Fish Creek Fish and Fish Habitat Survey 1999 Report) and Appendix 5-3-C (Lakes Physical Habitat).

7.2.2 Little Fish Lake Little Fish Lake is located at an elevation of 1527 masl and has a drainage of 1470 ha. The lake has a volume of 133,280 m3, a surface area of 6.6 ha, a mean depth of 2 m and a maximum depth of 4.4 m. The lake is 560 m long and 118 m wide with water levels

44 The numbers shown in brackets are the unique watershed codes (for streams and rivers) and the unique water body identifiers (for lakes) assigned by the BC Government. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 7-2 Prosperity Gold-Copper Project

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being maintained by a beaver dam at the mouth of the lake. Little Fish Lake has five ephemeral inlets and one permanent outlet stream.

7.2.3 Fish Creek The Fish Creek watershed covers 95.4 km2 with an average elevation of 1540 m. The headwaters of the watershed are indistinct because the land is a complex of marshes and morainal depositions that have created hummocks. The creek flows approximately 14 km in a northerly direction to its confluence with the Taseko River. Approximately 3.2 km upstream of that confluence is an 8 m high waterfall that is impassable to fish. Stream flow and precipitation data have been collected from the Fish Creek area between the years 1992 and 1998 and again between 2006 and 2007. Average monthly flows are estimated to reach a maximum of 1.67 m3/s in April during spring freshet, after which they decrease to a minimum of 0.02 m3/s in September and October. The mean annual flow is 0.36 m3/s.

Fish Creek Mainstem Fish Creek has been broken down into 10 reaches. Reaches 1 to 3 are situated between the confluence with the Taseko River and the impassable falls 3.2 km upstream. Reach 1 is ephemeral and during the summer and low-flow periods there is no surface flow. Reaches 4, 5 and 6 situated between the upstream end of the falls and Fish Lake consist of run/riffle and pool habitats and trout from Fish Lake are known to utilize portions of these reaches. There is considerable beaver activity and their dams have considerable influence over the reach characteristics. Reach 7 and 9 are Fish and Little Fish Lake respectfully and both will be directly affected by development of the Tailings Storage Facility and/or Prosperity Lake. Reaches 8 and 10 are characterized as meandering, with beaver dams and activity evident throughout. Reach 10 only exists as a defined continuous channel for 800 to 1000 m upstream of Little Fish Lake above which the channel becomes discontinuous and difficult to follow during low flow period as there is no flow. Portions of Reaches 5 and 10 and all of Reaches 6, 7, 8 and 9 will be directly affected by development of the Project.

Fish Creek Tributaries Although 1:20,000 TRIM maps of the Fish Creek watershed show a number of tributary streams, stream surveys conducted in spring and late-summer found that only three of the tributaries were used by rainbow trout. The remaining streams were ephemeral and went dry soon after snowmelt in both 1996 and 1997. Portions of these tributaries will be directly affected by development of the Project.

7.2.4 Transmission Line River and Stream Crossings Following an extensive assessment of alternatives a preferred 3km wide transmission line corridor has been selected. Connecting to the British Columbia Transmission Corporation (BCTC) grid near Dog Creek on the east side of the Fraser River, the 125 km transmission line will cross the Fraser River and Big Creek before reaching the mine site at Fish Lake. Although the final alignment of the centre line for the 30-80 m right-of-way has not been determined, a review of the TRIM II dataset (Table 7-1) confirms that in addition to the 142 m wide Fraser River and the 20 m wide Big Creek crossing sites

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Section 7: Navigable Waters

approximately 125 additional definite or indefinite streams will be crossed by the transmission line.

Table 7-1 Transmission Line River and Stream Crossing Sites Object Id Y_coordinate X_coordinate Type_1 7 5700872.55712000000 459637.16446300000 River - Definite 6 5701365.87684000000 459661.25130800000 River - Indefinite 8 5701787.10485000000 459681.81526500000 River - Indefinite 9 5705064.38222000000 461493.28520900000 River - Indefinite 17 5707225.39814000000 464344.84033800000 River - Definite 13 5707973.50476000000 465229.69485200000 River - Definite 14 5708718.34584000000 466110.24751100000 River - Definite 10 5709081.37385000000 466539.26109100000 River - Definite 11 5709282.07109000000 466776.39330600000 River - Indefinite 16 5709301.31576000000 466799.13001200000 River - Definite 15 5709491.21787000000 467023.47513400000 River - Definite 12 5711625.20080000000 469267.49479100000 River - Definite 19 5713313.44487000000 471278.48322000000 River - Definite 18 5713358.21637000000 471331.78264400000 River - Definite 20 5714618.33076000000 472831.25987800000 River - Indefinite 25 5714690.79920000000 472917.45524500000 River - Definite 24 5714974.08638000000 473254.36210600000 River - Definite 23 5715112.49101000000 473418.94014600000 River - Definite 1 5715322.27255000000 473668.36378700000 River - Definite 27 5715511.49942000000 473893.31832500000 River - Definite 4 5715584.05586000000 473979.56646400000 River - Definite 22 5715708.46550000000 474127.44288300000 River - Definite 3 5715873.00128000000 474322.99521900000 River - Definite 26 5716022.40082000000 474500.53920800000 River - Definite 21 5716035.61943000000 474516.24714000000 River - Definite 2 5716253.31484000000 474774.91854800000 River - Definite 28 5716735.47939000000 475347.70414000000 River - Definite 41 5716796.28781000000 475419.92805300000 River - Definite 40 5716853.09233000000 475487.39376700000 River - Definite 54 5717573.13970000000 476342.35745700000 River - Definite 42 5717756.73139000000 476560.28267000000 River - Definite 43 5718403.32991000000 477327.58727600000 River - Definite 53 5718622.64311000000 477613.63529700000 River - Definite 50 5718862.59857000000 477933.12770300000 River - Definite 44 5719203.16763000000 478386.48553100000 River - Definite 30 5719306.44071000000 478523.93758200000 River - Definite 52 5719453.43163000000 478719.55792800000 River - Definite 35 5719608.80523000000 478926.31089900000 River - Definite 48 5719634.03098000000 478959.87610500000 River - Definite 46 5720123.20550000000 479610.64363000000 River - Definite 45 5720354.03032000000 479917.63627700000 River - Definite 34 5720653.29662000000 480584.00001700000 River - Definite 47 5720887.41641000000 481138.75891900000 River - Definite 31 5720951.17639000000 481289.80758200000 River - Definite 36 5721278.25327000000 482064.42454400000 River - Definite 49 5721487.39476000000 482559.54553500000 River - Definite

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Table 7-1 Transmission Line River and Stream Crossing Sites (cont’d) Object Id Y_coordinate X_coordinate Type_1 5 5721581.48837000000 482782.24874400000 River - Definite 38 5721598.99993000000 482823.69206400000 River - Definite 32 5722120.08458000000 484056.40567200000 River - Definite 33 5722151.01692000000 484129.55096100000 River - Definite 37 5722163.78831000000 484159.75028500000 River - Definite 39 5722463.88296000000 484869.19003600000 River - Definite 29 5722505.26460000000 484966.99334400000 River - Definite 60 5723130.49986000000 486443.96427000000 River - Definite 56 5723269.99133000000 486773.29086400000 River - Definite 58 5723300.36302000000 486844.98654900000 River - Definite 55 5723697.67499000000 487782.58358500000 River - Definite 51 5723759.50613000000 487928.44569000000 River - Indefinite 61 5723977.64135000000 488495.24608000000 River - Definite 59 5725188.07568000000 492577.86774000000 River - Definite 57 5725311.01342000000 492991.78564200000 River - Definite 2 5726209.42800000000 495959.49412800000 Big Creek 105 5729171.21590000000 500788.76795700000 River - Definite 106 5729721.41001000000 501874.85353900000 River - Definite 104 5729896.79133000000 502827.34965900000 River - Definite 100 5730034.85097000000 503654.99997400000 River - Definite 102 5729980.39359000000 504369.49767700000 River - Definite 107 5729933.34040000000 504987.93507300000 River - Definite 103 5729917.33344000000 505198.55068000000 River - Definite 101 5729945.82443000000 507014.47090000000 River - Definite 109 5730316.84514000000 511559.79014600000 River - Definite 110 5730399.22023000000 512562.10824500000 River - Definite 112 5730472.21994000000 513448.30249900000 River - Definite 113 5730501.65166000000 513805.05357800000 River - Definite 121 5730516.84358000000 513989.07823500000 River - Definite 114 5730552.18641000000 514416.87855500000 River - Definite 115 5730720.90394000000 516452.98158600000 River - Definite 116 5730755.44797000000 516868.62562300000 River - Definite 118 5730781.56779000000 517182.63110900000 River - Definite 117 5730801.39002000000 517420.70195600000 River - Definite 120 5730828.46984000000 517978.77107600000 River - Definite 122 5730643.80898000000 518963.25181700000 River - Definite 108 5730541.54529000000 519508.92210200000 River - Definite 123 5730462.98581000000 519928.33806800000 River - Definite 124 5730425.50140000000 520128.53147900000 River - Definite 111 5730135.61742000000 521678.25560500000 River - Definite 119 5729923.71570000000 522812.81370600000 River - Definite 90 5729900.12785000000 522939.19771100000 River - Definite 89 5729863.83781000000 523133.67562800000 River - Definite 91 5729559.41838000000 525165.39869700000 River - Definite 93 5728186.05389000000 529246.05387300000 River - Definite 92 5728185.25501000000 529247.55000100000 River - Definite 125 5727804.67441000000 529960.45665600000 River - Definite 62 5727397.56010000000 530723.39475400000 River - Definite 63 5727040.67129000000 531392.48890200000 River - Definite 71 5726674.16894000000 532079.87841100000 River - Definite

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Table 7-1 Transmission Line River and Stream Crossing Sites (cont’d) Object Id Y_coordinate X_coordinate Type_1 64 5726611.11305000000 532198.16998400000 River - Definite 66 5725973.91186000000 533394.00469400000 River - Definite 65 5725319.94482000000 534622.17167300000 River - Definite 77 5724883.68915000000 535441.96050400000 River - Definite 67 5724737.16529000000 535717.38840500000 River - Definite 68 5724174.77324000000 536774.95465500000 River - Definite 69 5724019.59201000000 537113.47857000000 River - Definite 72 5724502.32196000000 539095.62977500000 River - Definite 73 5724609.75360000000 539536.27242400000 River - Definite 76 5724665.10553000000 539763.23557000000 River - Definite 75 5724732.36974000000 540038.98045400000 River - Definite 74 5724786.38324000000 540260.35503100000 River - Definite 81 5725157.13203000000 541778.67116700000 River - Definite 82 5725469.26114000000 543055.29908000000 River - Definite 83 5725623.15035000000 543684.18036000000 River - Definite 3 5725974.61190000000 544781.68546700000 Fraser River 70 5726618.77372000000 545873.12830100000 River - Definite 79 5726877.33132000000 546350.33219200000 River - Definite 88 5726814.66056000000 546769.00918900000 River - Definite 87 5726789.81365000000 546935.06826200000 River - Definite 80 5726714.92380000000 547435.80945300000 River - Definite 85 5725737.49234000000 551646.40513000000 River - Definite 84 5725664.11955000000 553651.08936400000 River - Definite 97 5725506.09345000000 558044.93961100000 River - Definite 86 5725495.73828000000 558336.63354700000 River - Definite 98 5725632.10251000000 560857.99993900000 River - Definite 78 5725721.19196000000 562094.09964000000 River - Indefinite 94 5725715.06306000000 562284.71818800000 River - Definite 99 5725707.37714000000 562524.08048500000 River - Definite 95 5725598.58140000000 565951.13948600000 River - Definite 96 5725581.85723000000 566484.55356100000 River - Definite

7.3 Project Components Affecting Waterways The mine site will be constructed over a 2-year period and the mine will operate for a total of 20 years. Once the mine ceases operation there will be an estimated 27 year closure period during which the pit will fill with water before discharging to Fish Creek. In the initial stages of the construction period three coffer dams will be placed across Fish Creek, one at the north end of Fish Lake near the outlet and two near the south end of the lake (Figure 7-1). The two coffer dams at the south end of the lake are necessary to isolate the area where the main embankment is being constructed. The coffer dam at the north end is being placed to isolate the pit area in advance of stripping and grubbing. During this Pre-construction Stage 1a Fish Lake will be drawn down by approximately 3m. During the construction Stage 1b the entire Fish Lake will be drained except for a water collection pond at the north end of the lake. Water from Fish Lake will be pumped into the supernatant pond within the TSF (Figure 7-2). During the operations and closure period the bed of Fish Lake will be used to store waste rock and overburden. The TSF

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will expand to include Little Fish Lake and the upper reaches of Fish Creek. A new 132 ha lake, Prosperity Lake, will be constructed at the far south end of the TSF during the initial construction period. Prosperity Lake will be stocked with fish from Fish Lake and will support a fishery as soon as it is established (Figure 7-3 and Figure 7-4). At the commencement of and throughout the post-closure period water from Prosperity Lake will be diverted into the TSF and into the pit eventually filling the pit before it discharges in to Fish Creek (Figure 7-5). The centre line for the proposed 30–80 m transmission line ROW within the 3-km wide corridor has not yet been finally determined nor has the detailed design of the line been completed. A feasibility study completed in 1999 by Ian Hayward International Ltd has provided a general concept for the crossing of the Fraser River (Figure 7-6). It is anticipated that during the final design phase the crossing will need to be reviewed by Transport Canada’s Aerodromes and Air Navigation Branch to determine if lighting or marking of transmission line structures will be required to meet standards for air safety. Taseko will submit information on the line’s planned vertical clearance, alignment, and slope stability for the Fraser River crossing; and will submit a completed Aeronautical Obstruction Clearance form once final design details become available.

Although no specific concept for the crossing of the 20 m wide Big Creek has been prepared it is understood that the average span between poles will be in the order of 230 m and it is anticipated that for the crossing at Big Creek and at all 125 definite and indefinite stream or river crossing sites the transmission line will span all crossing sites and thus will not have any direct affect on navigable waters.

7.4 Current and Historical Use of Fish Lake Information concerning visitor and sport fishery use of Fish Lake has been collected annually for the period 1995 to 1997 and again in 2006 and 2007. While full details of this information are reported in Volume 5, Section 3 (Fish and Fish Habitat) and associated Appendices it is summarized here for ease of reference. In 1995, 1996, and 1997 surveys were carried out at the Fish Lake Forest Service Recreation Site to gather information concerning use of the site and angling activity at the lake. In 1997, Taseko’s environmental monitors collected data from January 1 to September 28. Daily checks of the site were carried out from January 1 to May 28 while two daily visits (1100 and 1800 hr) were conducted from May 29 to September 28. Data was collected in the generally same manner in 1995 and 1996. In 1997, recorded use of the Forest Service Recreation Site (173 individuals) was considerably lower than in 1996 (274 visitors) but was similar to that in 1995 (188 visitors). Recorded user-days decreased substantially in 1997 when 310 user-days were recorded compared to 542 user-days in 1996 and 505 user-days in 1995. Use of the site is primarily in July and August with no use recorded in winter months. Coinciding with fewer visitors and user-days, the campground occupancy (53% during peak season) was lower in 1997 than in 1995 and 1996. The surveys revealed the site is used by generally small user groups (average 2.9 to 3.5 people) and for generally short visits (recorded average length of stay was 1.7 to 2.3 days). The differences in average group size and length of stay were not found to be statistically significantly between years. The percent of visitors which resided in the Cariboo-Chilcotin decreased from 31%

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in 1995 to 27% 1996 and 16% in 1997 while out-of-province visitors ranged from 8% (1996) to 14% (1995) of visitors. In 1996 and 1997, “fishing” was the most frequently provided reasons for coming to Fish Lake, but was only given by 45% of respondents in 1997. First time visitors accounted for more than 55% of groups and visitors to the site in 1996 and 1997, while 66 and 70% of those interviewed in these years respectively, were aware of the Project. Over 50% of visitors that responded had visited other Chilcotin lakes in 1997 while this percentage was slightly higher in 1996. An audit was carried out on nine days in August and September 1997 and identified a significantly higher use of the site than previous recorded. A daily correction factor of 1.5 for groups and 1.6 for individuals was applied to the daily record for 1995, 1996 and 1997 to identify a revised number of groups, visitors, user-days, average length of stay, angler-days, and total fish kept, released and caught. As a result of the audit, the revised estimate of the number of groups is 171 in 1997, 286 in 1996 and 192 in 1995. The estimated number of visitors is revised to 460 in 1997, 814 in 1996 and 744 in 1995. As a result of the increase in visitors, the estimated number of user-days is revised to 597 in 1997, 1082 in 1996, and 1061 in 1995. The average length of stay at the site is revised to 1.3 days in 1997, which is slightly lower than previously recorded. As a result of the increase in estimated user-days, the number of angler days was revised to 388 in 1997, 548 in 1996 and 458 in 1995. The estimated number of fish caught is revised to 4869 fish in 1997, 4900 fish in 1996 and 4150 fish in 1995 as shown in Table 7-2. Aerial boat counts of Chilcotin Region lakes were conducted during 2006 and 2007 by Whitesaddle Air Service Ltd. The maximum number of boats (all types) observed at Fish Lake during the 2007 overflights occurred on June 30 (four boats), similar to the maximum observed on the July 1 weekend in 2006 (four boats). However, while 22 boats were observed for the total survey time on Fish Lake in 2006 (ranked eighth highest), only 9 boats were counted over the same study period May 13 to September 16 in 2007 (ranked seventh highest). A comparison of boats enumerated on the Region 5 Chilko Circuit lakes during 2006 and 2007 is shown in Figure 7-7. Overall, fishing effort on the survey lakes declined by 36% between 2006 (479 boats observed) and 2007 (308 boats observed). During both years, Horn, Chaunigan, Bluff, Cochin, Sapeye and Big Onion lakes supported the most boats. The general decrease in the number of boats on survey lakes between 2006 and 2007 may be related to a decline in angler interest in those lakes, and/or the cold, wet spring- summer weather during 2007 acted as a deterrent (S. Rimmer, MOE pers. comm. 2007).

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Section 7: Navigable Waters

Figure 7-1 Water Management and Sediment Control Stage 1a Pre- Construction

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Figure 7-2 Water Management and Sediment Control Stage 1b Construction Phase

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Section 7: Navigable Waters

Figure 7-3 Water Management and Sediment Control Operations Phase

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Section 7: Navigable Waters

Figure 7-4 Water Management and Sediment Control Closure Phase

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Figure 7-5 Water Management and Sediment Control Reclamation and Post- closure Arrangement Phase

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Figure 7-6 Fraser River Crossing Concept

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Table 7-2 Summary of the Fish Lake Rainbow Trout Recreational Fishery during 1994–1997 Fish Creek and Fishery Fish Lake Little Fish Lake Lake Tributaries Recreation site/road access Yes/4x4 No/ATV No/ATV Annual angler-days 388–548 NA NA Annual mean catch/h 2.7–2.9 NA NA Annual total fish captured 4100–4900 NA NA Size range (FL [mm]) 200–300a NOTE: a Retained by anglers SOURCE: Volume 5, Appendix 5-3-J (Visitor and Creel Survey Fish Lake 1997)

120

100 2007 2006

a 80

60

Number of Bo 40

20

0 Big Fox Slim Fish Bluff Horn Elkin Joyce Chilko Vedan Cochin Murray Tuzcha Fishem Sapeye Brittany Yohetta Dorothy Lastman Big Onion Lingfield 1 Lingfield 2 Choelquoit Chaunigan Chilko River Chilko Little Choelquoit Lake Figure 7-7 Chilko Circuit Boat Counts, 2006 and 2007

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Section 8: References

8 References

8.1 Literature Cited BC Assessment Authority. 2007. Change in Residential Properties by BC Assessment Codes. Data run purchased by Taseko Mines Ltd. BC Competition Council. March 2006. Report to the Council, Wood Products Industry Advisory Committee. Available at: http://www.bccompetitioncouncil.gov.bc.ca/Wood_Products_IAC_Report.pdf Accessed: December 2006. BC Environmental Assessment Office (BC EAO) Mine Proponent’s Guide: How to Prepare Terms of Reference and an Application for an Environmental Assessment Certificate (BC EAO 2006). BC Ministry of Environment (MOE). 2006a. SLIM4 database. Unpublished database on file at Ministry of Environment, Victoria, BC. BC Ministry of Environment (MOE). 2007. Steelhead Harvest Analysis. Unpublished database on file at Ministry of Environment, Williams Lake, BC. BC Ministry of Forests. 2001. Williams Lake Timber Supply Area Analysis Report. Timber Supply Branch. Victoria, British Columbia. BC Ministry of Forests. 2006. Urgent Timber Supply Review for the William Lake Timber Supply Area, Public Discussion Paper. Victoria, British Columbia. BC Ministry of Forests. 2006b. Major Primary Timber Processing Facilities in British Columbia, Economics and Trade Branch. Victoria, British Columbia. BC Ministry of Public Safety and Solicitor General. 2006. Police and Crime, Summary Survey 1996 to 2005. BC Ministry of Sustainable Resource Management, Victoria, BC, 24 pp. Cited in Powell, George W. June 22, 2006. Cariboo-Chilcotin Regional Agriculture Sector Profile. Cariboo Chilcotin Beetle Action Coalition. Williams Lake, BC. BC Ministry of Sustainable Resource Management. 2002. Building Blocks for Economic Development and Analysis, Guide Outfitting in BC–An Economic Profile. Prepared by GS Gislason and Associates. BC Ministry of Sustainable Resource Management. 2003a. Building Blocks for Economic Development and Analysis, Freshwater Angling in BC–An Economic Profile. Prepared by GS Gislason and Associates. BC Ministry of Sustainable Resource Management. 2003b. Building Blocks for Economic Development and Analysis, Freshwater Guiding and Lodges in BC–An Economic Profile. Prepared by GS Gislason and Associates. BC Ministry of Sustainable Resource Management. 2003c. Building Blocks for Economic Development and Analysis, Resident Hunting in BC–An Economic Profile. Prepared by GS Gislason and Associates. BC Ministry of Tourism, Sport and the Arts (MTSA). January 8, 2007. Commercial Recreation Tenures Cariboo Land Management Region–EAST. Map.

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Section 8: References

BC MOE Air Quality Objectives (AAQO) (BC MOE 2006) BC MOE. 1998. Ministry of Environment. Protocol 1.Recommended Guidance and Checklist for Tier 1 Ecological Risk Assessment of Contaminated Sites in British Columbia (Ministry of Environment, Lands and Parks January 1998) BC MOE. 2007. Protocol 13 for Contaminated Sites. Draft Screening Level Risk Assessment. (BC MOE 2007) BC MOE. 2007. Technical Guidance on Contaminated Sites. Supplemental Guidance for Risk Assessment (BC MOE 1997) BC Parks. 2007. BC Parks Attendance System. Unpublished database maintained by BC Parks, Williams Lake, BC. BC Progress Board. December 15, 2005. Comparing BC’s Performance–Reaching Our Potential. Fifth Annual BC Progress Board Benchmarking Report. Volume II–Internal Performance Review: Regional. BC Stats, BC Tourism Room Revenue, Annual Series 1995-2000. BC Stats. 2007. Labour Force Survey (from Statistics Canada). Available at: http://www.bcstats.gov.bc.ca/data/dd/handout/lfsregn.pdf BC Stats. August 2007. Population Extrapolation for Organizational Planning with Less Error (P.E.O.P.L.E. 32). Services Division. Forecast purchased by Taseko Mines Ltd. BC Stats. February 2007 (2), British Columbia Housing Starts for Urban Areas and Communities. BC Stats. January 2004. British Columbia’s Heartland at the Dawn of the 21 Century. Victoria, BC BC Stats. January 2007. Spatial distribution of Cariboo-Chilcotin LHA 2001 Census Population. Data Services Division. Purchased by Taseko Mines Ltd. BC Stats. May 2006. Industry and Occupation Projections: 2006-2010 Thompson Rivers College Region. Victoria, BC BC Stats. October 2005. British Columbia Provincial Economic Multipliers and How to Use Them. Victoria, BC. BC Stats. September 2006 (2). Population Aged 19-64 Receiving Basic Income Assistance. Data Services Division. British Columbia Environmental Management Act–Contaminated Sites Regulation (includes amendments up to BC Reg. 239/2007, July 1, 2007) (BC 2007) Canada Mortgage and Housing Corporation. 2006. Rental Market Report. Vancouver B.C. Canada Revenue Agency. 2004. Neighbourhood Income & Demographics (various years). Prepared by BC Stats. Available at: http://www12.statcan.ca/english/census01/home/index.cfm Cariboo Geographic Systems. November 2003. Agriculture and Forestry Policies Review and Development. Cariboo Regional District. Cariboo-Chilcotin Grasslands Strategy Working Group. January 2001. Cariboo-Chilcotin Grasslands Strategy Forest Encroachment onto Grasslands and Establishment of a Grassland Benchmark Area. Cariboo-Mid Coast Interagency Management Committee. Williams Lake, BC. CCME (Canadian Council of Ministers of the Environment). 1996. A Framework for Ecological Risk Assessment: General Guidance. CCME Subcommittee on Environmental Quality Criteria for Contaminated Sites. March, 1996. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 8-2 Prosperity Gold-Copper Project

Section 8: References

CCME. 2000. Canada-wide Standard for Respirable Particulate Matter (PM2.5) (CCME 2000) CCME. Updated 2007. Canadian Environmental Quality Guidelines (CCME updated 2007) CEPA (Canadian Environmental Protection Act). 1993. Priority Substances List. Arsenic and compounds. City of Quesnel. June 2005. Quesnel and Area Community and Economic Profile–3rd Edition. Quesnel Community and Economic Development Corporation. City of Williams Lake, April 2006. Williams Lake and Area Community Profile. Prepared by the City of Williams Lake Economic Development Office. Dabeka R.W., A.D. McKenzie, G.M.A. Lacroix, C. Cleroux, S. Bowe, R.A. Graham, B.S. Conacher and P. Verdier. 1993. Survey of arsenic in total diet food composites and estimation of the dietary intake of arsenic by Canadian adults and children. J. AOAC International, 76(1), 14-25. Economic Planning Group. December 2003. Economic Impact Analysis of Outdoor Recreation on British Columbia’s Central Coast, North Coast and Queen Charlotte Islands/Haida Gwaii. Outdoor Recreation Council. Environment Canada. 1996. The Importance of Nature to Canadians: The Economic Significance of Nature-Related Activities. Prepared by the Federal-Provincial-Territorial Task Force on the Importance of Nature to Canadians. Ottawa, Ontario. Fish and Wildlife Branch. 2007a (data run). Summary Statistics Data, Hunter Harvest and Effort. Unpublished database on file at Ministry of Environment, Victoria, BC. Fish and Wildlife Branch. 2007b (data run). Compulsory Inspection Data for MU 504. Unpublished database on file at Ministry of Environment, Victoria, BC. Global InfoMine. Gibraltar Mine. Available at: http://www.infomine.com/minesite/minesite.asp?site=gibraltar. Accessed: February 15, 2007. Global InfoMine. Mount Polley Mine. Available at: http://www.infomine.com/careers/eoc/mtpolley.asp. Accessed: February 15, 2007. Government of Canada. 2004. National Ambient Air Quality Objectives (NAAQO) (Government of Canada 2004) Hatch. 2006. Taseko Mines Ltd. Prosperity, Section 7–Ancillary Facilities. Health Canada. 1987 (updated 1994). Guidelines for Canadian Drinking Water Quality - Supporting Documents. Sulphate. Health Canada. 1999. National Ambient Air Quality Objectives for Particulate Matter. Part I: Science Assessment Document. A Report by the CEPA/FPAC Working Group on Air Quality Objectives and Guidelines. Health Canada. 2004b. Federal Contaminated Site Risk Assessment in Canada. Part I: Guidance on Human Health Preliminary Quantitative Risk Assessment (PQRA). September 2004. Horne, G. and T.Q. Zhuang. May 2001. British Columbia Provincial Economic Multipliers and How to Use Them. Ministry of Finance and Corporation Relations. Horne, G. January 2004. British Columbia’s Heartland at the Dawn of the 21st Century2001 Economic Dependencies and Impact Ratios for 63 Local Areas. Ministry of Management Services. Hughes, K., M.E. Meek and R. Burnett. 1994. Environ. Carcino. Ecotox. Revs. C12(2), 145-159

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Section 8: References

Imperial Metals Corporation. 2006b. Imperial Reports Production Statistics and Updated Mount Polley Resource. Available at: http://www.imperialmetals.com/s/MountPolley.asp. Accessed: February 15, 2007. Imperial Metals Corporation. January 23, 2006. Mount Polley Property and Mine Operations. TSX III E- mail list. Available at: http://www.imperialmetals.com/s/MountPolley.asp. Accessed: February 15, 2007. Intervistas Consulting Inc. November 2006. Cariboo Chilcotin Coast Region Tourism Trends Backgrounder DRAFT. Cariboo-Chilcotin Beetle Action Coalition. Jack, J. and B. Levey. March 2003. 2000 Survey of Sport Fishing in British Columbia. Ministry of Water, Land and Air Protection. Jacques Whitford AXYS Ltd. 2007a. Chilko Circuit Aerial Boat Counts for 2006 and 2007 seasons. Unpublished count records available at Jacques Whitford AXYS Ltd, Sidney, BC. Jacques Whitford AXYS Ltd. 2007b. Forest Resources and Land Use (Draft, July 2007). Levelton Consultants Ltd. June 6, 2008. Project Description Tsilhqot’in Power Development Project. Prepared for BC Environmental Assessment Office. Available at: http://a100.gov.bc.ca/appsdata/epic/documents/p330/1218133820441_8e248a8d30d9c613482645 9c488388b9ae1898066d76.pdf Accessed: September, 2008. Lions Gate Consulting Inc. June 2003. Williams Lake Economic Development Strategy. Prepared for Williams Lake Economic Development Commission. Lohr, W. 2003. Regional agricultural socio-economic profile overview: Cariboo Region. Ministry of Community Services. 2006. Local Government Statistics. Available at: www.cserv.gov.bc.ca/lgd/infra/statistics_index.htm. Accessed: January 2007. Ministry of Economic Development. December 2006. Major Projects Inventory 2006. Ministry of Energy, Mines and Petroleum Resources, Exploration and Mining in British Columbia–2007. Available at: http://www.em.gov.bc.ca/DL/GSBPubs/Expl-BC/2007/BCExploration-and-Mining- 2007.pdf. Ministry of Energy, Mines and Petroleum Resources, Operating Mines and Selected Major Exploration Projects in British Columbia- 2005. Available at: http://www.em.gov.bc.ca/subwebs/mining/OF2006-1.pdf. Accessed: February 15, 2005. Ministry of Finance. February 20, 2007. Budget and Fiscal Plan, 2007/08–2009/10. Ministry of Management Services and Canada Revenue Agency. May 2006. Neighbour Income and Demographics, 2004. Prepared by BC Statistic Branch, Victoria, BC. Available at: www.bcstats.gov.bc.ca. Accessed: January 2007. Ministry of Management Services. January 2004. British Columbia’s Heartland at the Dawn of the 21st Century–2001 Economic Dependencies and Impact Ratios for 63 Local Areas. BC Stats Branch, Victoria, BC. Ministry of Transportation. 2007(2). Accident Histogram for LKI 3340, and Table of Collision Prone Locations. Southern Interior Region. Pacific Analytics Inc. December 2003. The Guide Outfitting Industry in BC: An Economic Analysis of 2002. Main Report. Guide Outfitters Association of BC. Richmond, BC. Pacific Analytics Inc. September 2004. Economic Value of the Commercial Nature-Based Tourism Industry in British Columbia. In cooperation with the Wilderness Tourism Association. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 8-4 Prosperity Gold-Copper Project

Section 8: References

Patriquin, M. and B. White. 2006. Assessing the economic effects of mountain pine beetle infestations in BC. PO#3.11 Canadian Forest Service Northern Forestry Centre, Edmonton, AB. Available at: http://mpb.cfs.nrcan.gc.ca/research/projects/3-11_e.html. Accessed: January 2007. Patriquin, M., S. Heckbert, C. Nickerson, M. Spence and B. White. 2005. Regional economic implications of the mountain pine beetle infestation in the northern interior of British Columbia. Working Paper 2005-3. Canadian Forest Service. Peak Solutions Consulting and Lions Gate Consulting Inc. May 15 2003. Highland Valley Copper Socio- Economic Assessment. Prepared for Highland Valley Copper, Logan Lake. Powell, G.W. December 2005. A Regional Profile of Non-Timber Forest Products Being Harvested from the Cariboo-Chilcotin, British Columbia Area. The Centre for Non-Timber Resources, Royal Roads University, Victoria, BC. Powell, G.W. June 22, 2006. Cariboo-Chilcotin Regional Agriculture Sector Profile. Cariboo Chilcotin Beetle Action Coalition. Williams Lake, BC. PricewaterhouseCoopers. 2006. The Mining Industry in British Columbia 2005. Vancouver Prosperity Gold-Copper Project: Project Report Specifications (Prosperity Project Committee 1998) and Environmental Impact Statement Guidelines (January 2009) Read and Associates and Stonefield Consulting. November 2007. Tsilhqot’in Nation Strategy: Towards Sector Strategies to Address the Impact of Mountain Pine Beetle. Available at: http://www.c- cbac.com/Documents/wdgpdf/Tsilhqotin Strategy_November07.pdf Accessed: September, 2008. Rescan. 2006. Galore Creek Country Foods Baseline Assessment. Rescan Environmental Services Ltd. March 2006. Robertson, T.A. March 2007. Upper Secwepemc Beetle Working Group: Sector Strategy. Available at: http://www.c-cbac.com/Documents/wdgpdf/07-02-28 USBGW Sector document edit–EDWG meeting April 5th.pdf Accessed: September 2008. Service Canada. 2007. Work Ready Claimants and Occupation Categories. Data provided by e-mail Jan, 2007. Prince George. Service Canada. Northern British Columbia Labour Market Bulletin, third quarter 2005. Statistics Canada. 2001. 2001 Census of Canada. Available at: http://www12.statcan.ca/english/census01/home/index.cfm Statistics Canada. Federal General Government Revenue and Expenditures. Available at: Statistics Canada. Provincial and Territorial General Government Revenue and Expenditures, by Province and Territory. Available at: http://www40.statcan.ca/101/govt08c.htm. Taseko Mines Limited (Taseko). 2008. Capital cost, financial and employment estimates in multiple spreadsheets taken from the draft Mine Feasibility Study (Hatch). Taseko Mines Limited. July 13, 2006. Visibility of the Main Embankment of the Tailings Storage Facility (TSF). Taseko Mines. Available at: http://www.tasekomines.com/tko/Gibraltar.asp. Accessed: February 2007. Tourism British Columbia. 1998. Report on Travel in British Columbia. Destination Report: The Report on Visitors to Cariboo Tourism Region.

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Section 8: References

Tourism British Columbia. January 2005. Characteristics of the Commercial Nature-Based Tourism Industry in British Columbia. Research Services in Cooperation with the Wilderness Tourism Association. Tsilhqot’in Power Corporation. 2008. Project Description: Tsilhqot’in Power Development Project. Prepared by Levelton Consultants. Prepared for BC Environmental Assessment Office. Tsilhqot'in Nation vs. British Columbia, 2007. British Columbia Supreme Court 1700. West Chilcotin Tourism Association (WCTA). December, 2005. Wilderness Tourism Land Base Analysis Cariboo-Chilcotin Land Use Plan Area Explanatory Report. Cariboo-Chilcotin Beetle Action Coalition. White, B., C. Bottril and B. Whyte. 2001. Community Report 2001. Chilko Resort and Community Association. Williams Lake Airport. 2007. Passenger Movement Statistic.

8.2 Personal Communications Armes, Chris. District Agrologist. Central Cariboo Forest District. Telephone conversation. February 2, 2007. Arnott, D. Kinder Morgan Vancouver Wharves. Email communication on December 24, 2007. Bastien, Rowena. Emergency Program Coordinator, Cariboo Regional District, Williams Lake, 250 392- 3351, February 12, 2007. Bastien, Rowena. Manager Protection Services, Cariboo Regional District. Telephone conversation on January 8, 2008. Bauermeister, Dr. Kristen. TeePee Heart Ranch, Personal meeting. April 18, 2007. Brauns, Uva. TeePee Heart Ranch, Personal meeting. April 18, 2007. Bryan, Rick. Cariboo-Chilcotin Voyageurs Canoe Club. Telephone interview, October 18, 2007. Christian, Ken. Director Health Protection, Interior Health, Kelowna, 250-851-7309, June 12, 2007. Driesdelle, Jacques. Williams Lake Sportsmen Association. Telephone interview October 15, 2007. Eastwood, Jennifer. Regional Recreation Manager, Southern Interior Region West, Ministry of Tourism, Sport and the Arts. June 28, 2007. Feldinger, Grant. Tenure Officer, Chilcotin Forest District. Ministry of Forests and Range. Telephone interview, May 31, 2007. Fisher, Joan. Rancher. April 19, 2007. Gaetz, Peter. Area Supervisor, BC Parks, Williams Lake. Email correspondence, December 19, 2007. Gatenby, Mike. Tenure Officer R.P.F. Central Cariboo Forest District. Telephone interview Oct 12, 2007. Goldfuss, Kevin. Director of Municipal Services, City of Williams Lake. Telephone conversation, January 8, 2008. Goodall, Jeff. Director of Development Services, City of Williams Lake. Telephone conversation, January 9, 2008. Harris, Doug. District Recreation Officer, Ministry of Tourism, Sports and the Arts. June 15 & 28, 2007. Hill, Laurie. BC Ambulance Service, Williams Lake, 250 392-3120, February 11, 2007. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 8-6 Prosperity Gold-Copper Project

Section 8: References

Hoffos, Robin. Planning Team Leader, ILMB, Client Services Planning, Williams Lake. Telephone interview Oct 8, 2008. Holling, Glen. ReMax Realty, Williams Lake. Telephone conversation in January 2008. Hubner, Todd. District Manager, Cariboo District Office, Ministry of Transportation. Telephone conversations in April and December 2007. James, Lyle. Circle S Ranch. Personal meeting. April 18, 2007. Kekula, Noelle. District Recreation Officer, Ministry of Tourism Sport and the Arts (formerly Chilcotin Forest District Recreation Officer). June 28, 2007. Keogh, Kym. Environmental Impact Biologist, Ministry of Environment, Williams Lake. June 15, 2007. Klause, Cameron. Range Agrologist, Chilcotin Forest District. Email correspondence. February 12, 2007. Klopp, Bill. Assistant Section Head Allocation, Water Stewardship Division, Ministry of Environment. 250 398-4255. February 13, 2007. Lawrence, Brian. Director Development and Business Services, City of Williams Lake. Personal meeting June 2006. Lucas, Judy. Natural Resources Officer, FrontCounter BC, Williams Lake. Email correspondence February 23, 2007. MacRae, Heather. Assistant Regional Manager, Adventure Tourism Branch, Prince George. Telephone interview and email correspondence December 14-20, 2007. Madrigga, Alan. Economic Development Officer, City of Williams Lake. 250 392-1764. Numerous telephone and personal meetings between June, 2006 and May, 2007. McGregor, Rosanna. Cariboo Friendship Society and Interior Health Authority Board Member, Williams Lake, 250 3986831. October 6, 2008. McMahon, Martin. Corporate Director Performance Management, Interior Health, Kelowna, 250-870- 4654. June 14, 2007. Messmer, Mark. Senior Economist, Fish and Wildlife Branch, Victoria. Numerous telephone interviews and email correspondence, January to October, 2007. Minchau, Mitch, Supervisor of Environmental Services, Cariboo Regional District, Telephone conversation January 8, 2008. Osmachenko, Bob. Stewardship Forester, Chilcotin Forest District, Alexis Creek. Telephone interview, December 18, 2007. Packham, Roger. Senior Ecosystem Biologist, Ministry of Environment, Williams Lake. Telephone interview October 17, 2007. Patterson, Robert. Manager of Government and Environmental Affairs, Taseko Mines. Telephone conversation September 23, 2008. Puhalo, Gordon. Twilight Ranch. April 19, 2007. Ramstead, Larry, Gang Ranch. Personal meeting. April 19, 2007. Roberts, Russ. Area Manager Roads. Cariboo District Office, Ministry of Transportation. Telephone conversation in April 2007. Ruault, Alison. Community Administrator, Interior Health, Williams Lake, 250 392-8201, November 2007. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 8-7 Prosperity Gold-Copper Project

Section 8: References

Russel, Bob. Anvil Mountain Ranch. Personal meeting. April 19, 2007. Russell, Sandra. Community Administrator Assistant, Interior Health, Williams Lake, 250 392-8202, February 12, 2007. Savage, Jim. Economic Development Officer, City of Quesnel. 250 992-3522. April 24, 2007. Savard, Mark. Red Shreds Bike and Board Shop, Williams Lake. Telephone interview, October 18, 2007. Schofield, Shane. Stewardship Officer, Chilcotin Forest District, Ministry of Forests and Range. Telephone conversation . February 9, 2007. Scruten, John. Manager, Chaunigan Lake Lodge. Telephone interview October 18, 2007. Van Es, Bill. Escott Bay Resort. Personal meeting, Williams Lake, April 16, 2007. Vukelich, Vera. Regional Manager, Adventure Tourism Branch, Prince George. Email correspondence February 22, 2007. Webb, Clinton. Planning Officer, Client Services Planning (Williams Lake), Integrated Land Management Bureau, Ministry of Agriculture. Numerous telephone discussions. January/April 2007. Coordinated GIS analysis of Williams Lake and Chilcotin SRMP’s. Weetman, John. Anvil Mountain Ranch. April 19, 2007. Wilkinson, Tom. Fish and Wildlife Inventory Specialist, Fish and Wildlife Branch, Williams Lake. Email correspondence December 19, 2006. Witte, Iris. Rancher. April 19, 2007.

Internet Sites BC Ministry of Community Services. Local Government Infrastructure 2005. At website: www.cserv.gov.bc.ca/lgd/infra/municipal_stats/municipal_stats2005.htm BC Ministry of Education. May 2007(3). Student Statistics 2002/03–06/07. www.bced.gov.bc.ca/enrol/student.php BC Ministry of Energy and Mines, 2007. Exploration and Mining in British Columbia 2006. Webpage at: http://www.em.gov.bc.ca/Mining/Geolsurv/Publications/expl_bc/2006/toc.htm BC Ministry of Environment (MOE). October 2006b. Guide Outfitters in British Columbia 2006-2007. Fish and Wildlife Branch. Available at: http://www.env.gov.bc.ca/fw/wild/documents/guide_outfitters.pdf. Accessed: November 2006. BC Ministry of Environment. Webpage at: www.env.gov.bc.ca/fw. BC Ministry of Forests. 2007b. Williams Lake Timber Supply Area, Rational for Allowable Annual Cut Determination. Effective April 18, 2007. Available at http://www.for.gov.bc.ca/hts/tsa/tsa29/tsr3/29ts07ra.pdf . BC Ministry of Forests. Revenue Branch. 2007. Summary of Volumes and Average Stumpage Rates. (various years). Available at http://www.for.gov.bc.ca/hva/timberp/volumesrates/index.htm . BC Ministry of Health Planning. 2001. The Health and Well-being of Aboriginal People in British Columbia. Report on the Health of British Columbians Provincial Health Officer’s Annual Report 2001. Available at: http://www.health.gov.bc.ca/pho/pdf/phoannual2001.pdf. Accessed: January 2007.

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Section 8: References

BC Ministry of Transportation. 2007. Traffic Volume Data Base. Accessed on line data base February 2007. Available at: http://www.th.gov.bc.ca/trafficData/ BC Ministry of Water, Land and Air Protection. Undated. Big Game Hunting Statistics for the 2002/03 Hunting Season. Available at: http://www.env.gov.bc.ca/fw/wild/documents/hunter_stats_2002.pdf. Accessed: November 2006. BC Ministry of Water, Land and Air Protection. Undated. British Columbia Angling Guides Valid to March 31, 2005. Available at: http://www.env.gov.bc.ca/fw/documents/angling_guides_2006.pdf Accessed: December 2006. BC Stats. 2004. 2001 Forest District Tables using Old Forest District Boundaries, Table 1. Available at: http://www.for.gov.bc.ca/HET/tsr_sea/index.htm. Accessed: June, 2007. BC Stats. 2006. Local Health Area 27 - Cariboo–Chilcotin Socio-Economic Indices: 2005. Available at: http://www.bcstats.gov.bc.ca/data/sep/i_lha/charts/lha27.pdf. Accessed: December 2006. BC Stats. April 28, 2006. BC Tourism Room Revenue, Annual 2005, Development Regions, Regional Districts and Selected Municipalities. Available at: http://www.bcstats.gov.bc.ca/data/bus_stat/busind/tourism/trra2005.pdf. Accessed: November 2006. BC Stats. August 12, 2005. British Columbia’s Hunting, Trapping & Wildlife Viewing Sector. Available at: http://www.bcstats.gov.bc.ca/data/bus_stat/busind/fish/wildlife.pdf. Accessed: November, 2006. BC Stats. March 2006. British Columbia’s Regional District and Municipal Population Estimates. Available at: http://www.bcstats.gov.bc.ca/data/pop/pop/estspop.asp. Accessed: Sept. 2006. BC Trappers Association. Website at: www.bctrappers.bc.ca. Cariboo Regional District. Fire Protection, accessed January 4, 2008. Available at: http://www.cariboord.bc.ca/Services/Emergency/FireProtection/tabid/99/Default.aspx CBC News. August 8, 2006. Alarm sounded about rural ambulance service in B.C. Available at: http://www.cbc.ca/news/story/2006/08/08/bc-ambulance.hTaseko. Accessed: December 2006. City of Williams Lake. City of Williams Lake Fire Department, accessed January 4, 2008. Available at: http://www.williamslake.ca/index.asp?p=158 Cooke, Martin, Daniel Beavon and Mindy McHardy. October 2004. Measuring the Well-Being of Aboriginal People: An Application of the United Nations’ Human Development Index to Registered Indians in Canada, 1981–2001. Strategic Research and Analysis Directorate Indian and Northern Affairs Canada. Available at: http://www.ainc- inac.gc.ca/pr/ra/mwb/dis_e.hTaseko. Accessed: January 2007. Fur Institute of Canada. Available at: www.fur.ca. Hitchcock, Erin. City to “bill” IHA for addiction costs. Wiiliams Lake Tribune. September 11, 2008 edition. Available at: http://www.bclocalnews.com/news/28229909.html Accessed: September, 2008. Integrated Land Management Bureau. 2005. Williams Lake Sustainable Resource Management Plan. Available at http://ilmbwww.gov.bc.ca/ilmb/lup/srmp/northern/williams_lk/pdfs/Williams_Lake_SRMP_Final .pdf. Integrated Land Management Bureau. 2007. Cariboo Chilcotin Land Use Plan. Available at http://ilmbwww.gov.bc.ca/ilmb/lup/lrmp/northern/cclup/cariboo.hTaseko Mines Limited. March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 8-9 Prosperity Gold-Copper Project

Section 8: References

Interactive Broadcasting Corporation. 2007. Lakes of the Cariboo Chilcotin Coast. Available at: http://www.bcadventure.com/adventure/explore/cariboo/lakes/index.hTaseko Mines Limited. Accessed: January 2007. Interior Health Authority. August 2005. Local Health Area Profile(s). South Cariboo, Cariboo-Chilcotin, 100 Mile House. Available at: http://www.interiorhealth.ca/Information/Reports/Local+Health+Profiles/. Accessed: January 2007. Interior Health Authority. February 2003. Aboriginal Health and Wellness Plan 2002/03-2005/06. Available at: http://www.interiorhealth.ca/NR/rdonlyres/52AF7D85-3ED9-4F59-8189- 3F2342D3345E/702/IHAboriginalHealthPlanRevisedFeb03.pdf. Accessed: January 2007. Interior Health Authority. Find A Service. Community public health service listing. Available at: http://www.interiorhealth.ca/Information/ServiceDirectory/Services/. Accessed: January 2007. Interior Health Authority. May 2005. Health Services & Budget Management Plan. Available: at http://www.interiorhealth.ca/NR/rdonlyres/2083BF9A-02A2-4EFC-9325- D3A5921F6EEA/2812/HSBMP_MoH_Aug05.pdf. Accessed: January 2007. Interior Health Authority. May 2006. IH Master Site List. Available: at http://www.interiorhealth.ca/Health+Services/Service+Directory/. Accessed: January 2007. Read and Associates and Stonefield Consulting. November 2007. Tsilhqot’in Nation Strategy: Towards Sector Strategies to Address the Impact of Mountain Pine Beetle. Available at: http://www.c- cbac.com/Documents/wdgpdf/Tsilhqotin Strategy_November07.pdf Accessed: September, 2008. Robertson, Terrance A. March 2007. Upper Secwepemc Beetle Working Group: Sector Strategy. Available at: http://www.c-cbac.com/Documents/wdgpdf/07-02-28 USBGW Sector document edit–EDWG meeting April 5th.pdf Accessed: September 2008. Statistics Canada. 2001. 2001 Census of Canada. Accessed at: http://www12.statcan.ca/english/profil01/CP01/Index.cfm?Lang=E Statistics Canada. 2007. 2006 Census of Canada Community Profiles. Several LSA community profiles accessed at: http://www12.statcan.ca/english/census06/data/profiles/community/Index.cfm?Lang=E. Accessed: January 2008. Tourism British Columbia. 2006. Year In Review. Available at: http://www.tourismbc.com/template_list.asp?id=17. Accessed: December, 2006. Tourism British Columbia. July 2007. Cariboo Chilcotin Coast Regional Profile. Available at: http://www.tourismbc.com/PDF/RegionalProfile_CaribooChilcotinCoast_2007.pdf. Accessed: September, 2007. Transport Canada. 2005. Aircraft Movement Statistics TP 577, table 9. Various years. Accessed at http://www.tc.gc.ca/pol/en/Report/TP577/pdf/TP577(2005-Web)1.pdf Water Stewardship Division. 2007a. Community Watersheds Query. Online database at the BC Ministry of Environment. Available at: http://www.env.gov.bc.ca/wsd/data_searches/comm_watersheds/index.html. Accessed: January 2007. Water Stewardship Division. 2007b. Water Users’ Communities Query. Online database at the BC Ministry of Environment. Available at: http://www.env.gov.bc.ca/wsd/water_rights/wuc/index.html. Accessed: January 2007.

March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 8-10 Prosperity Gold-Copper Project

Section 9: Appendices

9 Appendices

Effects on Other Resource Uses Appendix 6-5-A Forest Resources and Land Use Report

Human Health and Ecological Risk Assessment Appendix 6-6-A HHERA Baseline Technical Data Report Appendix 6-6-B HHERA Appendix

March 2009 Environmental Impact Statement/Application Taseko Mines Limited Volume 6 Page 9-1 Prosperity Gold-Copper Project