T OWARDS S USTAINABLE M INING

P ROGRESS

R EPORT

2005

The Mining Association of Canada Table of Contents

President’s Message 1 Towards Sustainable Mining 2 A Report on TSM Progress 2005 3 Statement from the Community of Interest Advisory Panel 10

Feature De Beers Canada: Creating Value Through Community Partnerships 11

The Mining Association SECTION 1: of Canada again Managing Releases and Materials 13 showcases the photography of one of its Summary of Industry Progress 13 own—Pierre Gratton, Releases of Minerals and Metals 13 Vice President of Sustainable Development and Public Affairs. This Feature report features photos Teck Cominco Pierre has taken across Delivers E-Scrap Solution 15 Canada while attending mine tours, pausing SECTION 2: between business Collaborative Research Delivering Results 16 meetings or simply travelling. Mine Environment Neutral Drainage (MEND) 16

Pierre remains “a very Metals in the Human Environment Research Network (MITHE-RN) 17 amateur photographer” but has been reading up Feature on photographic Progressive Aboriginal Relations: techniques, including Diavik and Syncrude Lead the Way 18 working with light, shadow and other SECTION 3: natural effects. In addition to the second- Improving Responsible Mine Management 19 hand telephoto lens he Orphaned/Abandoned Mines in Canada 19 acquired last year, he has broadened his horizons Tailings and Water Management Facilities 20 with a wide-angle lens. He still resists the Feature pressure to go digital. Albian’s Bird Deterrence System Recognized Worldwide 21

SECTION 4: Highlights of Company Actions 22 President’s Message

It has been another exciting year for the Also provided are updates on the industry’s key Towards Sustainable Mining initiative. In spring research initiatives, MITHE-RN and MEND, 2005 MAC was honoured with the Globe both of which are improving our understanding Foundation’s Award for Environmental of how to address the industry’s environmental Performance in the industry association cate- and health impacts. gory, mostly because of our development of This year we present four feature articles that TSM. As I said at the time, such recognition illustrate the mining industry’s commitment to helps us on our path. It motivates us to go TSM and sustainable development. One article farther, while making others in the mining showcases Albian Sands’ bird deterrence industry aware that change is necessary. system, which is gaining worldwide recogni- TSM made a great deal of progress over the past tion. Teck Cominco describes how its Trail facil- year. Learning from the first year of measuring ity is getting into the e-scrap business, recycling and reporting on TSM performance, MAC old computers instead of sending them to land- members took steps to improve the reporting fill. A third article looks at the Canadian Gordon R. Peeling process, iron out inconsistencies and raise the Council for Aboriginal Business and its President and CEO bar. As described in this report, companies are Progressive Aboriginal Relations (PAR) program. The Mining Association now using comprehensive assessment protocols Two MAC members, Syncrude and Diavik, have of Canada for all performance areas: tailings management, achieved PAR gold status. In the fourth article energy use and greenhouse gas management, De Beers Canada, soon to be this country’s crisis management and external outreach. After largest diamond producer, describes its sustain- a year of training personnel in how to use the able development philosophy and actions. protocols, we now have a measurement system I hope you find this report interesting and infor- that is rigorous and exacting. We have also mative. As support for and commitment to TSM designed a verification system so that, starting broadens and deepens across the Canadian next year, member companies and the public industry, your feedback is important to us. I can be confident about the accuracy of reported encourage you to complete the comment card results. at the end of this report and urge you to contact This report takes a detailed look at our progress us directly if you have any questions. and performance in the past year. It also Sincerely, describes how we have benefitted from the invaluable advice of our Community of Interest Gordon R. Peeling Advisory Panel on the design and implementa- President and CEO tion of TSM. As always, you will find thorough reporting of the industry’s releases to the environment, including efforts to reduce greenhouse gases.

Detailed release data are provided in the 1 bulletins in the back pocket of this report and also on MAC’s website (www.mining.ca).

Towards Sustainable Mining Progress Report Towards Sustainable Mining

A Letter from the Chair of the TSM As the TSM initiative unfolds, it is firmly taking Governance Team root and becoming better known across the mining industry. Thanks to support from the In May 2005 I had the pleasure of attending Canadian Institute on Mining, Metallurgy and the ceremony that honoured The Mining Petroleum (CIM), MAC has been able to intro- Association of Canada with the Globe duce TSM to branches of CIM across Canada. Foundation’s Award for Environmental The initiative has also been featured at CIM’s Performance in the industry association cate- annual convention for the past two years. In gory. MAC won this award largely for develop- addition, MAC is cooperating with several ing and implementing the Towards Sustainable provincial mining associations and the Mining initiative. It was an important recogni- Prospectors and Developers Association of tion of the mining industry’s commitment to Canada. collective action to improve performance in Derek Pannell some key areas. It has been another exciting year for TSM, with the Globe Award a high-water mark. The chal- Chair We took many steps over the past year to build TSM Governance Team lenge now is to make sure the momentum and on the foundation laid for TSM in 2004. We progress continue. To that end, we count on the Chief Executive Officer reviewed, tightened and strengthened all of the Falconbridge Limited ongoing efforts of MAC’s Board of Directors, TSM performance indicators. We developed assess- initiative leaders, MAC committees, members of ment protocols, bringing an auditor’s rigour to the Community of Interest Advisory Panel and the process to make performance measurement the countless others who want to see the and reporting more consistent. We held a series Canadian mining industry succeed responsibly. of French and English workshops to train the staff of mining operations on how to conduct MAC members have made a bold move in assessments. We have almost finished designing putting forward a public document that refers to an external verification system, which should the industry’s shortfalls as well as to its positive come into effect in 2007, and we are making achievements. A report that reflected a perfect progress on new performance elements such as score would be neither credible nor useful. biodiversity and Aboriginal relations. I trust you will take a balanced view of the eval- uations and follow the improvements members are committed to achieving year by year against the baseline that this report establishes. I hope that you enjoy reading the report that follows and that you appreciate the hard work that many, many people have put into the development and implementation of TSM. I welcome your comments on what you read and learn about our industry’s progress and I

2 encourage you to take the time to complete the feedback card contained in this report. Sincerely, Derek Pannell Chair TSM Governance Team

A poppy grows in Nain, Labrador

The Mining Association of Canada A Report on TSM Progress 2005

This article reports on members’ results under the TSM performance indicators over the past year. It also reports on the design of the verifica- tion system and the work of the Community of Interest Advisory Panel.

The path forward Now finishing its second year of implementa- tion, TSM is focusing on the following goals: ■ annual reporting on performance indicators for tailings management, energy use and greenhouse gas emissions management, external outreach and corporate crisis management planning (performance assessed and reported on a facility basis) The performance indicators were greatly TSM Initiative Leaders pause ■ external verification of performance results improved in 2005. Criteria were modified and for a group photo. From left to added, and assessment protocols were devel- right: Patricia Dillon beginning in 2007 (Teck Cominco Limited), ■ eventual development of indicators for new oped to bring greater rigour to the performance Bob Masterson (Stratos Inc.), performance elements evaluation process. For example, in the case of Craig Ford (Chair, Inmet energy use and greenhouse gas emissions Mining Corporation), Brenda management, companies now report against six Erskine (Suncor Energy Inc.), TSM performance indicators Denis Kemp (Falconbridge indicators as opposed to four in 2004. The over- From the outset, MAC members identified the Limited), Bill Ferdinand all effect of the changes is a tighter, stricter need for performance indicators to provide a (Barrick Gold Corporation), performance measurement system. Inge Robinson (Inco Limited), consistent framework for evaluating and report- Jim Seeley (Dynatec ing on industry performance against the TSM However, these improvements have made it Corporation), Gilles Couture guiding principles. Indicators help ensure that difficult to compare 2005 results with those (Quebec Cartier Mining reporting is relevant to communities of interest. from 2004. Under some indicators, for Company), Pierre Gratton They also help member companies improve (Mining Association of instance, the changes have lowered overall Canada), Colin Seeley (Placer their performance at both the operational and ratings even though actual performance may Dome Canada), Claire corporate levels. have improved. Consequently, this report does Parkinson (Inco Limited), As you review the results below, you may want not provide a full comparison with last year’s Lee Preziosi (Iron Ore Company of Canada), Barbara to consult the list of performance indicators in results. It does, however, make some general Shumsky (Syncrude Canada the back pocket of this report. You will also find observations on progress made. MAC is confi- Ltd.), Claire Vivier full assessment protocols for each performance dent that this year’s results will provide a clearer (Falconbridge Limited), element on MAC’s website (www.mining.ca). baseline for evaluating progress in the future. Les Hulett (Inco Limited)

3 Energy Use and Crisis Management Tailings Management Greenhouse Gas (GHG) External Outreach Planning Emissions Management

Tailings management policy Energy use and GHG Community of interest (COI) Crisis management and statement of emissions management identification process preparedness commitments systems

Energy use and GHG Effective COI communications Tailings management system Annual review emissions reporting systems and engagement processes

Responsibility for tailings management assigned to Energy intensity performance COI response mechanism Training a senior official Annual senior management GHG emissions intensity Reporting performance Adherence to best practices review performance Operation, maintenance and surveillance (OMS) manual

Towards Sustainable Mining Progress Report Like last year, the indi- Regardless of which level a facility reports at, cators for three the facility is assumed to be in compliance Interpreting TSM Indicators elements—tailings with all legal and regulatory requirements. The TSM performance indicators developed management, external The measurement system, in keeping with the so far mostly measure the quality and outreach, and energy TSM guiding principles, has been designed to comprehensiveness of management systems use and greenhouse help MAC members improve their performance in four performance areas. They provide the gas emissions manage- by moving beyond minimum regulatory stan- public with a window on the industry’s ment—are supported dards towards best practices worldwide. performance but by no means a complete by a ranking system picture. Readers are encouraged to review and clear criteria for In the case of crisis management planning, the environmental and greenhouse gas evaluating performance companies assess their performance against release data published in this report, as well and monitoring criteria by answering yes or no (met require- as to consult member companies’ reports progress. For each indi- ments/did not meet requirements). One of the for more information on their performance. cator there are five indicators, adherence to best practices, applies performance levels, to MAC itself. This indicator requires that MAC’s Guidelines for Corporate Crisis Management each with its own Planning be reviewed and updated every two criteria. The levels generally reflect the following: years to reflect best practices in the industry. Level 1 No systems in place; activities tend to The last update was in the fall of 2004. be reactive; procedures may exist but are not integrated into policies and The results management systems. The graphs that follow show data from the performance assessments of 16 member Level 2 Procedures exist but are not fully companies’ operating facilities. (Only member consistent or documented; companies with operating facilities in Canada systems/processes planned and being are expected to report.) In total, 4 member developed. companies with operating facilities did not Level 3 Systems/processes developed and report in 2005. implemented. The results show overall performance across Level 4 Demonstrated integration into MAC membership on an aggregate basis. Some management decisions. members are voluntarily publishing their indi- vidual results for 2005. In 2004 companies had Level 5 Excellence and leadership. the option of reporting on a company or a facil- MAC sees Level 3 as representing a good ity basis. This year they have reported results by performance under each indicator. In some facility, which MAC members agreed was the cases, Level 3 presents a realistic stretch target most accurate, effective way to both assess and for member companies. drive performance. In the case of crisis manage- ment planning, companies report at both the 4 corporate and the facility level.

TSM Initiative Leaders at work

The Mining Association of Canada Tailings Management Assessments Companies 22 submitting TSM 20 Assessments (16): 18 16 Albian Sands Energy Inc.* 14 Barrick Gold Corporation 12 Level 1 10 Level 2 BHP Billiton Diamonds Inc.* 8 6 Level 3 Diavik Diamond Mines Inc.* 4 Level 4 Dynatec Corporation 2 Level 5

Number of facilities 0 Falconbridge Limited Tailings management Tailings Assigned responsibility Annual senior OMS manual policy and statement management for tailings management management review HudBay Minerals Inc. of commitments system Inco Limited* Indicators Inmet Mining Corporation* Tailings Management Facility Assessments: 35 facilities Iron Ore Company of Canada 1. Tailings management mining facilities, the development of poli- Newmont Mining The 2005 results for tailings management are cies and systems is still mostly an internally Corporation of Canada mixed. Most facilities are at Level 3 or better for driven exercise. Limited* the two indicators that measure accountability In 2003 MAC published Developing an and responsibility for tailings management. Operation, Maintenance and Surveillance Placer Dome Canada* This is an important result: it means the facility Manual for Tailings and Water Management Quebec Cartier Mining has assigned responsibility and accountability Facilities. This guide has helped members Company for tailings management to a senior official who develop OMS manuals for each of their tail- Suncor Energy Inc.* has the budgetary allocation to implement the ings facilities. The manuals address a range Syncrude Canada Ltd. system. It also means that senior management of issues, including facility design, opera- Teck Cominco Limited conducts a formal, documented annual review tion, regulatory compliance, maintenance of the facility’s tailings management system. To and surveillance, and emergency prepared- *Indicates individual results obtain Level 4 or higher, these actions must be ness and response. Up to now, most published in Highlights of formally verified. members’ facilities have either developed Company Actions The results for indicator 1 (tailings management and implemented OMS manuals or are in policy and statement of commitments) and indi- the process of doing so. cator 2 (tailings management system) are not as strong. In 2005 a new requirement was added 2. Energy use and greenhouse gas to Level 3 for both indicators stipulating that a (GHG) emissions management facility’s communities of interest must be In 2004 energy use and GHG emissions consulted. While this is common practice for management and reporting systems were clus- 5 some sites, it is not yet the norm. For many tered together into four indicators. After some

Energy Use and Greenhouse Gas (GHG) Emissions Management Assessments

30 28 26 24 22 20 18 16 14 Level 1 12 Level 2 10 8 Level 3 6 Level 4 4 2 Level 5

Number of facilities 0 Energy use Energy use Energy intensity GHG emissions GHG emissions GHG emissions management systems reporting systems improvement management reporting systems intensity improvement targets systems targets

Indicators Energy and GHG Management Facility Assessments: 42 facilities

Towards Sustainable Mining Progress Report experience, it became clear that it was easier For example, electricity, a major cost for many and more effective to divide them further. There facilities, will be managed. But managing elec- are now six indicators under this performance tricity produces different GHG emissions element. depending on the electricity generation profile in a given province. The current separation of energy use and GHG emissions management is also revealing. Energy 3. External outreach use, perhaps not surprisingly, is more likely to Assessing external outreach at mine sites has be managed and reported than GHG emissions, revealed widely variable performance among as the mining industry has a longer history of MAC members. Some sites meet requirements dealing with the cost of energy. The majority of for external dialogue; at times these are spelled facilities have established inventories and basic out in agreements with local communities (e.g., systems or strategies for energy use, including impact benefit agreements). Most facilities have having designated energy leaders at the facility at least informal systems for identifying, (Level 2) and company (Level 3 or higher) as communicating, responding to and reporting well as senior management commitment. performance to their communities of interest. Virtually all facilities have systems for collecting Yet there are still some sites with no systems in and reporting data on energy use, and almost place at all. For some, this may be because of their remoteness or because external communi- half report this information publicly. cation has not been a priority. Nonetheless, Furthermore, in 2005 close to 30 percent of MAC members recognize the need to commu- facilities met or exceeded MAC’s annual energy nicate more with their communities of interest, intensity improvement target of 1 percent. and they support the high value TSM has For GHG emissions management, the results placed on external dialogue. are less positive. While many facilities have Many facilities reporting Level 2 performance basic systems for measuring and reporting GHG lack formal documented systems for external emissions, more than half do not have systems outreach. In small communities where people in place for managing them. The majority of tend to know one another, a formal system facilities have not set GHG emissions intensity may seem an unnecessary burden. But still, targets. Of course, facilities that measure and many of these sites have noted that develop- report on energy use, as well as set and meet ment of such a system is a priority and is in energy targets, will in practice do so indirectly progress. TSM initiative leaders will look for to affect GHG emissions. However, these ways of sharing best practices to improve systems and actions are not equivalent. performance in this area.

External Outreach Assessments

24 6 22 20

18

16

14

12

10 Level 1 8 Level 2 6 Level 3 4 Level 4 2 Level 5

Number of facilities 0 Community of interest Effective COI COI response Reporting (COI) identification communications and mechanism performance process engagement processes

Indicators External Outreach Facility Assessments: 48 facilities

The Mining Association of Canada 4. Crisis management planning Crisis Management Planning Assessments The first indicator in this area, crisis manage- Corporate-Level Reporting ment preparedness, has a high pass mark. 14

Member companies are asked whether they 12 have a crisis plan in place that is consistent 10 with best practices worldwide. The wording 8 here is important: answering “no” does not YES 6 mean a company has no crisis plan. It may NO simply mean that the plan is not yet at the level 4 of excellence MAC members strive towards. 2

Number of companies/facilities 0 Nevertheless, companies are reporting signifi- Crisis management Annual review Training cant progress for all three indicators compared proparedness Indicators to last year. A solid majority of MAC member Crisis Management Corporate Assessments: 16 companies corporate offices have plans in place that are reviewed annually, and training is common- Crisis Management Planning Assessments place. Similarly strong performance is reported Facility-Level Reporting at the facility level, which is encouraging since 32 crisis planning is often a head office initiative 30 28 that takes time to implement fully at operational 26 24 facilities. 22 20 Given these results, MAC’s Board of Directors 18 16 may soon realize its goal—that all MAC 14 YES 12 NO members have crisis management plans in 10 8 place. 6 4 2

Implementing external verification Number of companies/facilities 0 Crisis management Annual review Training The TSM results in this report are based on proparedness Indicators company self-assessment, a procedure the Crisis Management Facility Assessments: 39 facilities MAC Board of Directors believes is a neces- (Companies with only one facility were considered as part of the corporate assessments.) sary part of performance evaluation. When personnel directly participate in assessing their consistent and accurate. To that end, in 2004 company’s performance, they learn from the the Board approved a three-step plan for phas- process and are better able to identify and ing in a TSM verification system: plan improvements. ■ Year 1 (2004 reporting year): Members However, the Board also recognizes how self-assess and submit performance data to crucial it is to assure MAC members and their MAC for reporting on an aggregate basis in 7 communities of interest that reported results are the TSM Progress Report.

A view from the Voisey’s Bay mine site.

Towards Sustainable Mining Progress Report ■ Year 2 (2005 reporting year): As above. ■ verification of company self-assessments by Assessment protocols are developed and an external verifier used to improve consistency of evaluation ■ letter of assurance from a CEO or and reporting. authorized officer confirming the verified ■ Year 3 (2006 reporting year): Each results company’s self-assessment is verified by an ■ annual post-verification review of two or external party. three member companies’ performance by Over the past year TSM initiative leaders from the COI Advisory Panel member companies have worked together to 1. Verification of company self- design a verification system that will do the following: assessments Verification will be conducted by verifiers who ■ verify that MAC members’ assessments are outside MAC and the individual companies. reflect actual company performance MAC members will hire external verifiers who ■ assist members in developing the capacity meet qualifications and conditions spelled out to monitor and self-assess TSM in the terms of reference (currently under devel- implementation opment). The external verification will cover all ■ ensure that MAC members and their indicators at all operating facilities in Canada. communities of interest can rely on the Member companies will report their verified reported results results to MAC. Initiative leaders reviewed a range of verifica- In the first year of implementation, all MAC tion systems in use or under development by members will have their results externally veri- MAC members and by other industry associa- fied. Subsequent years will follow an annual tions in mining and non-mining sectors. Several rotation, with one-third of MAC members auditing and verification professionals were undergoing external verification each year. consulted or were actively involved in the design. In addition, the COI Advisory Panel was 2. CEO letter of assurance regularly consulted on all elements of the In the year when a MAC member company system. Initiative leaders were able to incorpo- undergoes external verification, the CEO or rate much of the panel’s advice. authorized officer of the company will provide a letter of assurance confirming that the verifi- The resulting TSM verification system is based cation was conducted. The letter will be posted on a layered approach. Three elements combine on MAC’s website. to give MAC members and their communities of interest confidence in the integrity of reported company performance:

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Fish in Bear Creek, Voisey’s Bay

The Mining Association of Canada 3. Post-verification review From among the companies externally verified TSM Community of Interest Advisory Panel Members in a given year, the COI Advisory Panel will select two or three to present their performance Gordon Ball Peter R. Jones Gordon Peeling Syncrude Canada Ltd. HudBay Minerals Inc. Mining Association of Canada assessment and verification results. These companies will be expected to answer the Chief Jim Boucher Stefan Lopatka Alan Penn Fort McKay First Nation Nunavut Tunngavik Cree Regional Authority panel’s questions on their performance results Incorporated and future plans. Richard Briggs Allan Morin Canadian Auto Workers Brenda Kelley Métis National Council Canadian Environmental MAC will assess the verification system once Charles Campbell Richard Ross it is underway and, with advice from the COI United Steelworkers of Network Inmet Mining Corporation America Advisory Panel, will decide whether further Soha Kneen David Scott Inuit Tapiriit Kanatami steps are needed to meet TSM objectives. Ginger Gibson CIBC World Markets CoDevelopment Canada Christie Marinig Chief Darren Taylor Timmins Economic The COI Advisory Panel Larry Haber Assembly of First Nations City of Kimberley Development Corporation Eira Thomas The COI Advisory Panel brings together repre- Elizabeth May, sentatives from Aboriginal and labour organiza- Peter C. Jones Stornoway Diamond Inco Limited Sierra Club of Canada Corporation tions, communities where the industry is active, environmental and social NGOs and the finan- cial community, along with senior mining Next steps industry representatives. Over the next year, MAC will continue to work The panel met twice in 2005, on March 10 and on new performance elements in such areas as September 20, with conference calls on specific biodiversity and Aboriginal relations, with the issues between meetings. The panel discussed support of the COI Advisory Panel. In 2006 and advised on a range of issues, including the MAC will hold a workshop for associate following: members—suppliers and consultants to the ■ the design of the TSM verification system mining industry—to identify how they can ■ new performance elements for Aboriginal participate in and support TSM. There will also relations and biodiversity be workshops for potential external verifiers in fall 2006. ■ climate change and climate change adaptation in relation to tailings management ■ orphaned and abandoned mines For more information, see the panel’s meeting reports on the MAC website (www.mining.ca).

The COI Advisory Panel is in the midst of a two- 9 year review of its operations to determine how to enhance its contribution. In a statement in this report, the panel presents its views on TSM progress and the challenges facing Canada’s mining industry.

Towards Sustainable Mining Progress Report Statement from the Community of Interest Advisory Panel

The Community of Interest (COI) Advisory progress, with 16 out of 20 members now Panel is pleased to have an opportunity to reporting within the TSM framework. It is unfor- comment on the implementation of the TSM tunate that not all mines are doing so. But we indicators in light of the many environmental, hope that as the process becomes more familiar social, cultural and economic challenges faced to them, more companies, with the help of both by The Mining Association of Canada, its the panel and MAC, will join the list. members and Canadian communities. This is In our view, the credibility of the TSM initiative the first letter issued by the panel since the rests in large part on meeting its goals. With initiative’s inception. regard to the 2005 report, the panel is pleased The COI Advisory Panel has always regarded to see an issues-oriented approach combined the TSM initiative as having considerable poten- with reporting on indicators. We believe that tial to assist mining facilities in recognizing and these issues are ones that most of your stake- adopting best practice protocols, thereby holders will find relevant. performing above and beyond regulatory An indicator verification system was devel- requirements. The implementation of best prac- oped in 2005 and will be implemented in the tice protocols encourages mining companies to next reporting year. The COI Advisory Panel work more closely within the community to set has requested that the third-party verification goals, guidelines and, where appropriate, reports from several mines be tabled at an specific targets for mining companies. Doing so upcoming panel meeting so that panel ensures that the mine proposal or the mine members can begin to review this concrete itself works more closely and transparently with action, comment on the process and make the citizens living in and around the mine’s recommendations for further improvements communities of interest. if necessary. The development of indicators and a verifica- We believe the system will be strengthened tion process to identify whether the mining when citizens of communities where the local companies participating in TSM are actually mine has adopted TSM processes actually see meeting their objectives has the potential to improvements, both in their working relations provide greater assurance to the community with the mine and in mining’s environmental where a mine is operating that the issues impor- performance. tant to the community are not only being The heightened guidelines for crisis manage- considered passively, but are being planned for ment planning, external outreach, energy use and acted upon positively. and greenhouse gas emissions management, We commend those mining companies that and tailings management, as well as the emerg- have taken a leadership role and made the extra ing discussions on Aboriginal relations and effort to follow the TSM process. We recognize biodiversity, are all signs that MAC member that MAC membership does not include all companies are aware of the importance of

10 mining companies in Canada, and that uranium addressing and including in their work these and coal mining companies in particular are current critical issues, which are of course not members. Most MAC members are making vitally important to all mining communities. Community of Interest Advisory Panel Front row (left to right): George Greene (facilitator, Stratos Inc.), Karla Heath (facilitator, Stratos Inc.), Soha Kneen, Ginger Gibson, Elizabeth May. Middle row: Peter R. Jones, Chris Jones (Albian Sands), Brenda Kelley, Stefan Lopatka, Eira Thomas, Rick Briggs. Back Row: Darren Taylor, David Scott, Gordon Peeling, Christie Marinig, Larry Haber, Pierre Gratton (MAC), Richard Ross, Alan Penn

The Mining Association of Canada De Beers Canada: Creating Value Through Community Partnerships

n the 40 years De Beers has been exploring for diamonds in Canada, I the company has dedicated people, time and resources to building relation- ships based on respect. De Beers is committed to adopting business strategies that meet the current needs of the company, its stakeholders and its partners, while protecting, sustaining and developing human, social, economic and natural resources for the future. To that end, the company believes that good community relationships are essential when developing projects. Although a small team of professionals drives this vision, all De Beers employees are responsible for supporting it. Over the past five years De Beers has been in transition, moving from pure exploration to developing three projects. Its objective is to become a significant Canadian producer by 2009. As the company’s projects move ahead, it is signing agreements with Aboriginal groups across the country.

In June 2005, after two years of negoti- Caribou surveys are completed to monitor any potential effects of the mine on wildlife movements or behaviour. ation, the Attawapiskat First Nation of Surveys are done several times a year in a study area that is a 31 km radius around Snap Lake. northern Ontario voted 85.5 percent— a Canadian record—in favour of an “True partnerships underpin our This is one of four IBAs the company is impact benefit agreement (IBA) with approach to business,” said Richard negotiating with communities impacted De Beers for the Victor project. This Molyneux, President and CEO of by the Snap Lake project. De Beers Canada, “and this is evident was the first opportunity for the First Commenting on this agreement, John 11 Nation to get involved in a develop- in the relationship we have developed McConnell, Vice President of NWT ment project of this size, and the first with Attawapiskat since we first began Projects, said, “As the Snap Lake such agreement concluded by De work in the area in the 1980s. We project has advanced, and during the Beers. have completed a range of agree- IBA negotiations, we have managed ments with different Aboriginal The Chief of Attawapiskat, Mike communities widely across Canada, our business to ensure that the Carpenter, had this to say: “Our people but this is our first IBA. The nature of Yellowknives Dene experience tangible have had a great deal to consider in the this agreement is such that it eclipses benefits from the Snap Lake project. negotiation and ratification process for those previously completed in terms Concluding this agreement builds on this agreement. We wanted to ensure of the major long-term benefits which our success in this area and provides a that we had a sound and fair agree- Attawapiskat will receive throughout more formal mechanism to define a ment which would provide long-term the life cycle of the mine.” positive long-term relationship with the benefits for our First Nation. While community.” there are still concerns over the impact Shortly after signing this IBA in of the project, the people have decided November 2005, De Beers and the Reaching agreements like these takes that the significant long-term benefits Yellowknives Dene First Nation time, patience, resources and a true for our community and our children concluded another for the Snap Lake willingness to understand one another’s outweigh the risks.” project in the Northwest Territories. needs, both business and societal.

Towards Sustainable Mining Progress Report employment, training and business opportunities

While the agreements mean a great operate is key to the continued success deal to the parties involved, the real and development of a mine at Victor,” commitment comes in the implementa- said Jeremy Wyeth, Vice President of tion. Even before the agreements were the project. “As the bulk of the work signed, De Beers was working to fulfil will be contracted out during construc- their spirit. tion, this database will be a vital tool in honouring our commitment to maxi- For example, as of January 15, 2006, mize employment and business oppor- De Beers had spent over $171 million tunities for the north.” on the Snap Lake construction. Of that, Agreement with the Taykwa Tagamou Nation over $90 million, or 53 percent of the In May 2005 the Taykwa Tagamou Nation and Another De Beers collaboration is the total, went to NWT businesses. Nearly De Beers Canada concluded an agreement outlin- James Bay employment and training three-quarters of the NWT expendi- ing how the groups will work together on the partnership, developed to make the tures, some $66 million, went to Victor project. This is one of many agreements most of training opportunities in local Aboriginal businesses or joint ventures. between De Beers and Aboriginal groups in the communities. A contribution agreement region. From left to right: Deputy Chief Deborah With more than $400 million in Rickard of Taykwa Tagamou; Jeremy Wyeth, was recently approved involving De contracts and purchase orders commit- Vice President, Victor Project; Chief Dwight Beers, Human Resources and Skills ted by mid-January 2006, the Snap Sutherland of Taykwa Tagamou; and Wayne Ross Development Canada (HRSDC) and Lake project will make a considerable of Taykwa Tagamou. several Aboriginal communities. Under contribution to the Northwest the agreement HRSDC will provide Territories’ growing economy and to and its partners raised $750,000, which funds for training, and De Beers will Aboriginal businesses. was matched by the Northwest provide funding and jobs to local communities. Another example of De Beers’ partner- Territories government. De Beers had donated $500,000 over five years to the ship approach to social investment is For more information on De Beers’ original construction of the centre. the $1.5 million expansion of the community partnerships, visit the Kimberlite Career and Technical Centre In northern Ontario, to encourage local company’s website in Yellowknife. Spearheaded by De and Aboriginal participation in the (www.debeerscanada.com). Beers, the expansion project involves Victor project, De Beers has launched many partners: Nuna Logistics Limited, an online database to give business Ek’ati Services/ PTI, Ke Te Whii/Procon, owners and contractors information on Ke Te Whii/Ledcor, Deton’Cho procurement and human resources. Corporation, AMEC and Yellowknife “Developing meaningful partnerships Catholic Schools. Together, De Beers with the communities in which we

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The Mining Association of Canada Managing Releases and Materials SECTION ݗ Summary of Industry Progress

For over two decades, MAC members have environment and communities around opera- been steadily reducing the substances their tions. In the case of sulphur dioxide, reductions operations release to the air and water. Better have contributed to a favourable trend for acid controls, new technologies and more sophisti- rain, a North American issue. cated monitoring techniques all contribute over The graphs and tables below show members’ time to better environmental performance. releases to air and water in 2004 against the Release levels may vary from year to year, base year. Detailed tables on members’ green- influenced by changing production levels, for house gas releases are provided in the separate example. But the trend is clearly toward signifi- “Greenhouse Gas Progress Report” in the back cant, meaningful reduction in the releases of pocket of this report. Information on the Metal key substances such as mercury, sulphur diox- Mining Effluent Regulations and environmental ide, lead and cadmium. These reductions have effects monitoring is also provided in a separate led to improved exposure conditions for the bulletin (see back pocket or www.mining.ca).

Releases of Minerals and Metals Government of Canada officials The following are the major substances Many MAC members are involved in commu- visit Voisey’s Bay mine commonly released by our industry. Though nity risk assessments—multi-stakeholder these substances occur naturally, their release to processes designed both to determine how the environment from mining, smelting and releases from historic operations affect human Reductions Achieved to 2004 refining can pose environmental or health risks. health and the environment and to develop Whether this happens depends on a number of mitigation strategies. At the same time, MAC Arsenic 57% factors, including bioavailability (ability to be has been a major sponsor of the Metals in the Cadmium 79% absorbed by living organisms) and the concen- Human Environment Research Network Copper 67% tration of the substances compared to natural (MITHE-RN), which examines the connection Hydrogen Sulphide 69% background levels. For this reason, MAC between metals in the environment and the Lead 87% members believe it is important to reduce potential for adverse effects on humans (see Mercury 93% releases as well as to study their potential article in this report). Nickel 74% effects on environmental and human health. Zinc 75%

Arsenic Cadmium Copper Hydrogen Sulphide Releases to Air and Water (combined total) Releases to Air and Water (combined total) Releases to Air and Water (combined total) Releases to Air and Water (combined total)

1,200 500 400 150 1,000 400

300 800 100 300

200 600 13 200 50 400 100 100 200

0 0 0 0 Base 93 94 95 96 97 98 99 00 01 02 03 04 Base 93 94 95 96 97 98 99 00 01 02 03 04 Base 93 94 95 96 97 98 99 00 01 02 03 04 Base 93 94 95 96 97 98 99 00 01 02 03 04 Tonnes/Year Year Tonnes/Year YearTonnes/Year Year Tonnes/Year Year

Lead Mercury Nickel Zinc Releases to Air and Water (combined total) Releases to Air and Water (combined total) Releases to Air and Water (combined total) Releases to Air and Water (combined total)

1,500 4,000 2,000 30

1,500 3,000 1,000 20 1,000 2,000

10 500 500 1,000

0 0 0 0 Base 93 94 95 96 97 98 99 00 01 02 03 04 Base 93 94 95 96 97 98 99 00 01 02 03 04 Base 93 94 95 96 97 98 99 00 01 02 03 04 Base 93 94 95 96 97 98 99 00 01 02 03 04 Tonnes/Year Year Tonnes/Year Year Tonnes/Year Year Tonnes/Year Year

Towards Sustainable Mining Progress Report Focus on Sulphur Dioxide

MAC members are committed to reducing releases In Canadian base metal ores, the desired metal

of sulphur dioxide (SO2) and have made steady occurs as a compound of sulphur. Extracting the progress over the years. Sulphur dioxide is probably metal means dealing with the sulphur; therefore,

best known as a precursor for acid rain, which traditional smelting generates SO2. Most of the sulphur is rejected at the concentrator stage before occurs when SO2 oxidizes and mixes with water in the atmosphere to produce sulphuric acid. There are smelting; the rest can be treated by capturing the gas generated. Using an acid plant to convert the gas to also health risks associated with SO2. High levels contribute to breathing problems and increased diffi- sulphuric acid can reduce releases by 80 to 99 culty for people with respiratory and cardiovascular percent. However, technological features and the distance between some smelters and markets for diseases. sulphuric acid make this approach challenging for A colourless gas, sulphur dioxide is produced natu- some operations. rally and by human activity. The main natural New hydrometallurgical technologies offer an sources of SO are volcanoes, forest fires and 2 option that does not generate SO , but they are oceans. The main human sources are burning fossil 2 currently economically and technically feasible fuels and smelting sulphidic ores. only for processing some types of sulphidic ores. Research is underway to extend this technology to all sulphidic ores.

Sulphur Dioxide Releases 1988–2004 from MAC Member Smelters, Refineries and Oil Sands Operations

2,500,000

2,000,000

1,500,000

1,000,000

500,000

Tonnes 0 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Year

14

A view from St. Andrews, New Brunswick, location of the 2005 Federal/Provincial/Territorial Mines Ministers Meeting.

The Mining Association of Canada Teck Cominco Delivers E-Scrap Solution

sing existing furnace capacity at its metallurgical complex in Trail, UBritish Columbia, Teck Cominco is building a new business that will divert thousands of tonnes of discarded elec- tronic equipment, or “e-scrap,” from landfills in western Canada and the United States. For two years Teck Cominco worked closely with community partners, federal and provincial regulators and teams of professional engineers and operators at the smelter to come up with a sustainable way of processing growing amounts of e-scrap. Their E-waste close-up on feed belt collaboration led to a new business for Trail furnace to process bulk e-scrap in the #2 slag fuming furnace. It is now an environmentally safe manner. processing shredded e-scrap and is see an excellent opportunity for recy- increasing the recovery of zinc, lead, cling electronic scrap. This was good The e-scrap marketplace is evolving indium, germanium and cadmium at news for Trail, whose furnace, built in and expanding. According to the entire metallurgical complex. In 1947 and modified in 2000 to process Environment Canada, in 2005 more June 2005, after extensive testing, Teck stock slag, was scheduled for perma- than 156,000 tonnes of electronic scrap Cominco announced that it would offer nent shutdown in 2005. accumulated in Canada and 2.2 million its unique service to customers inter- tons in the United States. Teck ested in recycling and processing e- With this new business in the wings, Cominco’s response is to market its scrap responsibly. The company is thus the team turned to setting the parame- new service and work with partners in poised to greatly reduce the volume of ters for processing the metals and plas- and around Trail to deliver efficient e- electronic waste going to landfills. tics that make up most e-scrap. A series scrap recycling. of theoretical and practical tests were The e-scrap idea first surfaced in August Teck Cominco is committed to devel- set up. During the planning and the 2003, when Teck Cominco was looking oping sustainable businesses, contribut- first tests, the team recognized the for ways to make the Trail metallurgical ing to the well-being of the communi- broader potential to recover even more complex more profitable. The company ties in which it operates, providing was particularly interested in opportu- zinc, lead, indium, germanium and value to its customers and increasing cadmium from input feedstocks. This nities that were independent of the the utility of the country’s natural 15 metal price cycle, that would increase discovery, along with rising indium resources. As it moves forward with this the use of existing assets and that prices, was a compelling reason to fast- new business, Teck Cominco will would generate value from its existing track the project. collaborate with government, commu- processes, engineering and market In August 2004 a 30-tonne e-scrap trial nities and customers to ensure that knowledge. Furthermore, the company put some primary assumptions to the metal bearing products have a better recognized that regulations increasingly test. The results were overwhelmingly chance of being used again and again. require manufacturers to take responsi- positive, and the company was able to The company has committed substan- bility for the life cycle management and identify potential environmental tial resources to being part of the e- stewardship of their products. impacts and safety hazards and either scrap solution. It looks forward to the In the business of recycling lead-acid eliminate or mitigate them. In day when residents of British batteries since the mid-1980s, Teck November, a 14-day, 225-tonne trial Columbian, western Canada and the Cominco has in some years recovered was conducted and the recycling pacific northwest can drop off their old as much as 25,000 tonnes of lead from model was evaluated. In the end, 100 computers, printers, telephones and recycling. Armed with this experience, percent of the e-scrap was successfully televisions knowing they will be the team knew that recycling process- processed with no increase in the facil- processed in an environmentally ing fees are often unaffected by the ity’s emissions. In June 2005 the B.C. responsible way. metal price cycle. The team began to Ministry of Environment approved the

Towards Sustainable Mining Progress Report SECTION ݘ Collaborative Research Delivering Results

Scientific research is critical to the mining industry’s environmental and social perfor- mance. MITHE is contributing greatly to our collective understanding of the sources and effects of metals in the environment and their relationship to human health. MEND has contributed enormously to our understanding of acid rock drainage. Both research programs are highlighted here. As well, a feature article looks at how the Canadian Council for Aboriginal Business, through its PAR Program, rigorously assesses the performance of two MAC members that are working with Aboriginal communities. This program will help build our knowledge of effective models of Aboriginal engagement.

Construction of the Voisey’s Bay port facilities Mine Environment Neutral Drainage (MEND)

Canadian research in an international Australian Centre for Minerals Extension and context Research, and the Partnership for Acid Drainage Remediation in Europe. This alliance has many The original MEND program (1989–1997) benefits, including the following: and its successor, MEND 2000 (1998–2000), contributed enormously to understanding ■ better global information sharing acidic drainage and its prevention, and to ■ efficient pooling of resources and leveraging increasing the transfer of information and of funds technology. ■ reduced duplication of effort, meaning a MEND is administered by a small secretariat at wiser investment of capital CANMET, part of Natural Resources Canada. The synergies created by this global alliance It is highly respected both in Canada and further underscore the importance of the abroad. Canada is currently the only country in MEND program. the world addressing acidic drainage and metal leaching through a focused research program A more detailed bulletin is available on this topic directed by a multi-stakeholder committee from (see back pocket or www.mining.ca). industry, government and non-government 16 MEND has organizations. contributed Since 2001 MEND has been building the foun- enormously to our dation for a renewed research program. In doing so, it has identified several priorities: understanding of closure management, verification of technolo- acid rock drainage. gies, metal leaching, passive treatment, early prediction, sludge management, cold tempera- ture effects and paste backfill. In the past year MEND made great progress in addressing these priorities. MEND is now part of a global alliance for acidic drainage research that also includes the International Network for Acid Prevention, the US Acid Drainage Technology Initiative, the

The Mining Association of Canada Metals in the Human Environment Research Network (MITHE-RN)

Metals research network begins The network’s research program addresses key second year uncertainties that hamper site-specific risk assessments for metals in surface environments. The University of Guelph hosted the official Dust, soil and food are the main routes by launch of MITHE-RN on October 24, 2005. which humans are exposed to metals. It is The new research network builds on the knowl- therefore important to measure and character- edge developed by its predecessor, MITE-RN ize the metals present in these routes, looking (Metals in the Environment Research Network), specifically at their speciation and bioavailabil- which ran from 1999 to 2004. ity. The network’s program also recognizes that MITHE-RN has received five-year funding the health of aquatic and terrestrial ecosystems (2004–09) from NSERC (the Natural Sciences is a critical part of human health. and Engineering Research Council of Canada) as well as financial and in-kind support from many partners, for a total of $5.4 million. The network is led by Dr. Beverley Hale from the University of Guelph and is supported by a secretariat managed by Dr. Len Ritter, Executive Director of the Canadian Network of Toxicology Centres.

The research program covers three themes: aquatic ecosystems, soils and plants, and foods and ingested particles. These themes represent a cascade of effects along food webs, from the lowest levels to the highest consumers. The 16 17 projects in the network’s second year promote collaboration among university and govern- ment researchers. For more information, visit the MITHE-RN website (www.mithe-rn.org).

A more detailed bulletin is available on this topic (see back pocket or www.mining.ca).

Towards Sustainable Mining Progress Report Progressive Aboriginal Relations: Diavik and Syncrude Lead the Way

BY KEN TUFTS, CANADIAN COUNCIL FOR ABORIGINAL BUSINESS

hat does diamond mining in the Canada’s premier diamond Far North have in common with mine. Part of this vision is to digging for bitumen in Alberta? leave a lasting legacy in W employment, business devel- Syncrude Canada and Diavik Diamond opment, capacity building Mines both operate in Aboriginal terri- and community relations. tory in these regions. Both have made Diavik’s self-assessment was the commitment to be good neighbours verified by independent and good corporate citizens, and both assessors and received PAR are profiting handsomely from the deci- gold recognition in 2005. sion. Both companies have been honoured by the Canadian Council for Diavik has adopted a philos- Aboriginal Business (CCAB) for their ophy of sustainable develop- work with Aboriginal people, receiving ment and continuous the gold level of recognition in the improvement. It is therefore Progressive Aboriginal Relations (PAR) committed to providing program. Aboriginal people, families, communities, businesses and “We are very proud that two of the Darryl Bohnet (Diavik Diamond Mines) receives PAR Gold organizations with opportuni- Award from Albert Diamond (Air Creebec) leading companies in Canada’s vital ties in the areas PAR focuses mining sector have chosen to support on so the benefits last long Aboriginal business and participate in after the Diavik diamond their approach to the emerging the PAR program,” said Jocelyne mine has ceased operations. Soulodre, President and CEO of CCAB. Aboriginal marketplace. It also gives “The success they have gained by Like Syncrude in Alberta, Diavik has them tools to improve their perfor- negotiated agreements with the govern- recognizing the capabilities of mance. PAR is a long-term process that ment of the Northwest Territories and Aboriginal employees and suppliers helps companies expand their knowl- neighbouring Aboriginal communities. serves as an example to the rest of the edge of and interaction with the The commitments made by both Diavik corporate world.” Aboriginal community. The program is and Syncrude are clearly reflected in based on mutual understanding and Syncrude Canada has been a leader such agreements, which aim to maxi- respect and is motivated by enlightened in Aboriginal relations since it began mize participation in mining operations self-interest, which is the way Syncrude operating in the oil sands near Fort by affected Aboriginal communities and Diavik operate. McMurray, Alberta, in the 1970s. and groups. Beyond these agreements, In recent years it has become the Diavik and Syncrude have adopted PAR is the first program of its kind in largest industrial employer of policies, strategies and programs to the world. It has already attracted inter- Aboriginal people in Canada, with maximize Aboriginal participation in est from Aboriginal and business orga- 18 Aboriginal workers making up employment, business, capacity build- nizations in Australia, the United States 12.5 percent of the employee/contrac- ing and community relations. and South America. PAR is overseen by tor workforce. In 2004 Syncrude a jury of eminent Aboriginal and non- The Progressive Aboriginal Relations conducted about $107 million in busi- Aboriginal businesspeople who exam- program helps companies assess their ness with Aboriginal firms in the Fort ine each company’s application. For relationships with the Aboriginal McMurray area. more details, visit the CCAB website community. By participating in PAR, (www.ccab.com). Syncrude first achieved gold recogni- companies show they are committed to tion from PAR in 2002. It resubmitted establishing a balanced business rela- CCAB is the leading organization in self-assessments of its Aboriginal rela- tionship based on mutual self-interest. Canada dedicated to promoting tions achievements for verification in Companies’ internal assessments are Aboriginal communities’ full participa- 2004 and 2006, and was renewed at verified by the National Quality tion in the Canadian economy. CCAB’s the gold level both times. Institute through document reviews, mission is to connect Aboriginal and discussions with management, site non-Aboriginal people and companies Diavik Diamond Mines is committed to visits and feedback from stakeholders. with the opportunities they need to effective, meaningful, lasting relation- achieve personal and business success. ships with Aboriginal people, employ- PAR is not a competition among ees, families and communities. The companies. Rather, it provides a frame- company’sCommitment vision is to become work organizations can use to assess

The Mining Association of Canada Improving Responsible Mine Management SECTION ݙ

The development in 2003–04 of TSM perfor- mance indicators for tailings management continued the global leadership of MAC and its members on issues concerning tailings manage- ment performance. Last year these indicators were improved, and companies were trained in their use. A Guide to the Management of Tailings Facilities was refined and updated, and the finishing touches are being put on a comprehensive verification protocol for tailings management. As well, the industry’s partnership with other communities of interest on orphaned and aban- doned mines continues to make progress. This section also highlights an innovative bird deter- rence program developed by Albian Sands at its tailings facility in northern Alberta. Thompson mine tailings area in northern Manitoba

Orphaned/Abandoned Mines in Canada

Assessing opportunities for First Nations and communities. The agenda The workshop, remediation centred on three case studies: Giant, Britannia and Kam Kotia. The workshop proceedings are “Assessing Liabilities First launched in 2002, the multi-stakeholder available on the NOAMI website. National Orphaned/Abandoned Mines Initiative and Funding Options,” (NOAMI) has contributed greatly to addressing NOAMI has also completed guidelines to help drew 75 representatives the legacy of orphaned and abandoned mines jurisdictions evaluate their own legislation, poli- in Canada. The initiative continues to make cies and practices for contaminated sites, oper- from industry, progress on complex issues such as liability, ating sites and orphaned/abandoned sites. In government, health concerns and clean-up costs. the summer of 2005 NOAMI hired a consultant to assess the gaps and opportunities in each environmental In March 2005 NOAMI completed a report jurisdiction for addressing orphaned/abandoned entitled Capacity Building for a National organizations, First sites and to formulate recommendations. The Inventory of Orphaned/Abandoned Mines in consultant’s report, expected in 2006, will help Nations and Canada. The report, posted on NOAMI’s NOAMI develop a best practices guide for website (www.abandoned-mines.org), brings communities. 19 legislative, regulatory and policy approaches to much-needed clarity to the task of categorizing the management of orphaned and abandoned and prioritizing orphaned and abandoned sites. mines across Canada. A report produced for NOAMI in 2003, A more detailed bulletin is available on this topic Potential Funding Approaches for (see back pocket or www.mining.ca). Orphaned/Abandoned Mines in Canada, was the basis for discussions at a NOAMI workshop held in Ottawa in November 2005. The work- shop, “Assessing Liabilities and Funding Options,” drew 75 representatives from indus- try, government, environmental organizations,

Towards Sustainable Mining Progress Report Tailings and Water Management Facilities

In 2005 MAC Assessing the industry’s performance ■ introduced a new draft document, A Guide to Verification of Tailings Facility To support TSM, the Tailings Working Group developed a Management began in 2004 to develop performance indica- ■ protocol for tors based on two MAC best practice guides: updated participants on TSM as it relates to tailings management assessing tailings A Guide to the Management of Tailings Facilities and Developing an Operation, ■ explored emerging issues such as climate management Maintenance and Surveillance Manual for change adaptation and its implications for performance. Tailings and Water Management Facilities. The tailings management performance indicators help measure members’ The Tailings Working Group is currently This development progress towards full implementation of MAC’s completing A Guide to Verification of Tailings helped refine the framework for tailings and water management. Facility Management and updating A Guide to the Management of Tailings Facilities. Both will indicators and In 2005 MAC developed a protocol for assess- ing tailings management performance. This be published in 2006. clarify some development helped refine the indicators and A more detailed bulletin is available on this topic criteria. clarify some criteria. (see back pocket or www.mining.ca). In June 2005 the Tailings Working Group held a two-day “lessons learned” workshop in Toronto that did the following: ■ reviewed the industry’s usage of A Guide to the Management of Tailings Facilities and Developing an Operation, Maintenance and Surveillance Manual for Tailings and Water Management Facilities

20

Adding lime to neutralize Thompson tailings water

The Mining Association of Canada Albian’s Bird Deterrence System Recognized Worldwide

il sands companies with large tailings ponds have tried many ways of keeping Obirds from landing on the ponds. In 2002 Albian Sands Energy, the newest mining opera- tion in the Athabasca oil sands, was the first to introduce an on-demand radar-based bird deterrent system. Developing an effective bird deterrent system is more than a nice-to-have luxury—it’s an impor- tant regulatory requirement. According to the Migratory Birds Convention Act and regulations, anyone controlling a body of water that contains harmful oily substances must take measures to keep migratory birds from frequent- ing the water. Albian is concerned because its operations are near a major migratory flyway for waterfowl travelling to the Peace-Athabasca Delta. The problem is most serious in early spring, when Research conducted by the University of Alberta Solar panels power the bird migrating birds are looking for safe places to in the spring of 2003 showed the BirdAvert deterrent radar system that rest and the only ice-free bodies of water are system to be more effective than the industry activates the falcon models on the floats the tailings ponds. standard. On the heels of this research, Albian In the oil sands region, propane “scare cannons” and BirdAvert improved the system further. The and human effigies are the most common bird final version was installed in May 2004 and is deterrents used. Research shows that the most still providing outstanding results today. common problem with these devices is that Albian stakeholders, including residents of Fort birds get used to them, making them less effec- McKay, have applauded the system, and Alberta tive over time. To address this problem, Albian wildlife inspectors have voiced their approval as worked with a company called BirdAvert to well. The academic response to the program is apply the latter’s innovative bird-activated deter- also encouraging. The University of Alberta’s rent system to the conditions of northeastern study has already been published in Marine Alberta. The system uses radar to detect birds as Ornithology, Canadian Field-Naturalist and the they approach a tailings pond. When the system Journal of Applied Ecology. 21 senses bird activity, a radio signal activates a selection of deterrents, including propane scare Since Albian adopted its on-demand deterrence cannons, moving falcon models, recorded attack system, other mining companies have followed calls and flashing lights. suit with similar programs. Last year two systems were installed on tailings ponds in the Because the system can be activated while the United States, and papers have been presented birds are in flight, particularly at lower altitudes, internationally at several bird strike confer- it is effective in altering their landings. The ences. Albian is proud to be leading the way deterrents stay activated as long as the birds fly towards better bird deterrence systems for the over or near the tailings pond, then turn off industry around the world. when they leave the area. With the tailings pond only six kilometers from Fort McKay, resi- dents were concerned that they would hear the propane scare cannons every day from spring to fall. But because the cannons are activated only when birds are near the pond, the noise is seldom heard.

Towards Sustainable Mining Progress Report SECTION ݚ Highlights of Company Actions

Albian Sands Energy Inc. cation of traditional knowledge. Albian Albian has also invested in health and was also instrumental in setting up an e- wellness projects associated with the Albian Sands Energy is a joint venture learning program so that local youth that operates the Muskeg River mine on region’s rapid growth. When the can attend high school online without behalf of the owners of the Athabasca Northern Lights Regional Health commuting to Fort McMurray. Oil Sands Project—Shell Canada, Foundation needed extra support, Furthermore, an office in Fort McKay Chevron Canada and Western Oil Albian responded by helping to allows Albian to keep in close contact Sands. The Muskeg River mine contains purchase a new CT scan machine. with the community and address more than 5 billion barrels of minable The company supported the foundation concerns as they arise. bitumen, equal to about twice the further by becoming the lead donor in amount of conventional oil reserves In Fort McMurray, Albian has teamed fundraising efforts to buy a new MRI remaining in Alberta. Operating at its up with Keyano College on many machine. design capacity, the mine produces projects. Recently, Albian made a dona- In the area of environmental manage- 155,000 barrels of bitumen per day. tion to Keyano’s campaign to build a ment, Albian takes a best practices As a member of the Regional Sport and Wellness Centre, a new recre- approach. A prime example is the Municipality of Wood Buffalo, Albian ational facility that will be accessible to company’s innovative bird deterrence recognizes its social responsibility and the entire community. Albian has also system, which uses radar to keep migra- supports projects and activities that been a champion supporter of the tory birds from landing in tailings benefit local communities. For example, college’s environmental technology ponds. (See the feature article in this in the Aboriginal community of Fort program for the past two years, and in report.) Also, in 2004 Albian was the McKay, Albian helped build a 2,500- 2005 became the lead donor of the first oil sands operation in the world to square-foot community centre for Aboriginal entrepreneurship certificate become ISO 14001 certified. This elders, which promotes the communi- program. achievement is a testament to Albian’s

Tailings Management Assessment Energy Use and Greenhouse Gas (GHG) Emissions Albian Sands Energy Inc. Management Assessment 5 Albian Sands Energy Inc. 5

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Assessed Level 0 Muskeg River Mine

Assessed Level 0 Muskeg River Mine Tailings management policy and statement of commitments Tailings management system Energy use management systems Assigned responsibility for tailings management 22 Energy use reporting systems Annual senior management review Energy intensity improvement targets OMS manual GHG emissions management systems GHG emissions reporting systems GHG emissions intensity improvement targets External Outreach Assessment Albian Sands Energy Inc. 5 Crisis Management Planning Assessment 4 Albian Sands Energy Inc.

3 Crisis management preparedness 2

YES 1 Annual review NO

Assessed Level 0 Muskeg River Mine Training Community of interest (COI) identification process Effective COI communications and engagement processes COI response mechanism Reporting performance Albian Sands Energy Inc.

The Mining Association of Canada Highlights of Company Actions

environmental policy and its commit- Barrick participates in a number of liability issues and to working with ment to constantly improving its envi- voluntary environmental initiatives. The provincial governments towards lasting ronmental performance. company is a signatory to the Australian results that satisfy all stakeholders. Minerals Industry Code for Environ- For more information, visit Albion’s website mental Management and MAC’s TSM Profile of closed mines (www.albiansands.com). guiding principles. Barrick has also The company’s closed mines in Canada been a key partner in developing and include the Selbaie and Poirier sites in Barrick Gold Corporation implementing the International Cyanide Quebec, the Elliot Lake properties in Since entering the gold mining business Management Code for improved Ontario, the East Kemptville site in Nova in 1983, Barrick Gold Corporation has cyanide management in gold operations Scotia and the Island Copper site in grown into one of the largest gold around the world. In addition, Barrick’s British Columbia. Reclamation projects companies in the world. At the end of operations participate in local environ- at these sites are in various stages of 2005, the company had fourteen oper- mental initiatives such as the Nevada final implementation. Detailed caretak- ating sites and three development governor’s sage grouse initiative in the ing plans, including monitoring for projects on four continents and in eight United States and the Western Australia reclamation success, are in place and countries. conservation of raptors program in are reviewed annually for improvement. Australia. With corporate headquarters in Toronto, BHP Billiton’s programs at these closed Barrick operates two mine sites in Late in 2003 the board of directors mines align well with the TSM initiative. Canada: the Eskay Creek mine in north- approved a safety and health system Each site has a water management plan, ern British Columbia and the Hemlo that focuses Barrick’s safety programs and runoff from tailings and waste rock joint venture on the north shore of Lake and policies on a company-wide basis. areas is treated as needed to conform to Superior in Ontario. Barrick also has The system builds on Barrick’s existing permit limits. The amount of water one active-closure property in Canada, corporate safety and occupational released varies from year to year, the Nickel Plate mine in south central health policy by setting global, compre- depending mostly on weather condi- British Columbia. hensive standards of excellence and the tions. Generally there is no significant Corporate social responsibility has long practices to achieve them. Safety is one waste generation, or greenhouse gas or been a priority at each of Barrick’s sites. of the five key performance dimensions other air releases. represented in the formal annual perfor- In 2004 this priority received additional Here are some of the company’s activi- mance commitments made by all senior support when management established ties in 2005 involving its closed mines: the Executive Environmental, Health, leaders of Barrick, from the CEO on ■ inspecting reclaimed tailings Safety and Sustainability (EHSS) down. impoundments regularly and Committee, which regularly reviews For more detailed information about planning for risk reduction performance trends and issues, and Barrick’s environmental performance, visit ■ approves EHSS strategic business plans. the company’s website (www.barrick.com). monitoring and assessing site status Barrick also developed a corporate to plan improvements to water management and vegetation covers social responsibility charter late in BHP Billiton Base Metals 2004, which frames the company’s ■ producing a historical video so that BHP Billiton is a global resource approach in this area. the community, especially its new 23 company headquartered in Melbourne, residents, Social responsibility at Barrick involves Australia. It is one of over 300 compa- is aware of Elliot Lake’s mining an array of programs and initiatives nies included in the Dow Jones history related to dialogue, communications, Sustainability Index, which lists the top ■ social effects assessment, community 10 percent of sustainability firms in 59 partnering with Wildlife Habitat infrastructure development and charita- industry groups in 34 countries. Canada to support the North ble giving. This comprehensive American Waterfowl Management BHP Billiton takes a long-term view of approach aims to ensure that the bene- Plan’s Eastern Habitat Joint Venture business, focusing strongly on its perfor- fits generated through mining are (other projects include wetland mance in health, safety, environment shared, leading to lasting social and habitat enhancement in Ontario and the community (HSEC). The economic benefits for the communities, and data collection for the Ontario company values people, respects host regions and countries where the Breeding Bird Atlas) communities and believes that excel- company operates. Barrick became a lence in HSEC is good for business. signatory to the UN Global Compact late in 2005, signalling the company’s Besides its current operations, BHP commitment to integrating corporate Billiton manages a number of closed citizenship into its culture, strategy and mine sites in Canada. The company is day-to-day operations. committed to addressing long-term

Towards Sustainable Mining Progress Report Highlights of Company Actions

■ partnering with NSERC (Natural Charles Fipke and Stewart Blusson BHP Billiton aspires to cause zero harm Sciences and Engineering Research (10 percent each). to people, host communities and the Council of Canada), industry, École Located about 300 kilometres northeast environment. It also strives to embrace Polytechnique de Montréal and of Yellowknife, the EKATI mine operates leading industry practices through its Université du Québec en Abitibi- in an area of continuous permafrost. sustainable development policy. EKATI Témiscamingue on a project to The claim block covers 344,000 has both an internal and an external examine applied technologies for hectares in the subarctic tundra, with a auditing process to help the company mine waste disposal land lease area of 10,960 hectares. improve its compliance with manage- ■ internal auditing and statistical Access to the mine is primarily by air, ment standards. The company’s environ- reporting to ensure that sites though a 400-kilometre ice road is built ment management system was recom- contribute to BHP Billiton’s rigorous and operated for three months in winter mended for ISO 14001 registration on HSEC goals and targets to allow bulk supplies to be trucked to July 24, 2003, and was re-registered in BHP Billiton produces an award-winning the site. April 2004 and again in 2005. annual HSEC report. This report and more In 2005 BHP Billiton Diamonds Recognition information can be found at www.bhpbilli- employed about 760 people; another ton.com. 530 contractors provided a variety of BHP Billiton Diamonds was recognized support services. Most employees work nationally several times during 2005. BHP Billiton Diamonds Inc. at the mine site. In addition, there are For instance, the company won the The EKATI diamond mine, operated by offices in Yellowknife and Vancouver Canada Export Award for Community BHP Billiton Diamonds Inc, is a joint and an exploration office in Kelowna. Impact. This was the second Canada venture between BHP Billiton During this reporting period, the EKATI Export Award for BHP Billiton, the first (80 percent) and founding geologists mine produced 4.5 million carats of having come in 2003 in the Job high-quality diamonds. Creation Achievement category.

Tailings Management Assessment Energy Use and Greenhouse Gas (GHG) Emissions BHP Billiton Diamonds Inc. Management Assessment 5 BHP Billiton Diamonds Inc. 5

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Assessed Level 0 EKATI Diamond Mine Assessed Level 0 EKATI Diamond Mine Tailings management policy and statement of commitments Tailings management system Energy use management systems 24 Assigned responsibility for tailings management Energy use reporting systems Annual senior management review Energy intensity improvement targets OMS manual GHG emissions management systems GHG emissions reporting systems GHG emissions intensity improvement targets External Outreach Assessment BHP Billiton Diamonds Inc. 5 Crisis Management Planning Assessment 4 BHP Billiton Diamonds Inc.

3 Crisis management 2 preparedness

1 YES Annual review NO

Assessed Level 0 EKATI Diamond Mine Training Community of interest (COI) identification process Effective COI communications and engagement processes COI response mechanism Reporting performance BHP Billiton Diamonds Inc.

The Mining Association of Canada Highlights of Company Actions

The company was also named one of water, mineral processing on site used Environmental studies Canada’s top 100 employers for the fifth 5,139 megalitres of recycled water from EKATI conducts a number of envi- consecutive year. These accomplish- the Long Lake containment facility. ronmental studies. Here are some ments are due to the staff and contrac- EKATI’s water management strategy examples: tors who make the EKATI diamond mine aims to maximize the use of recycled ■ Bear surveys a safe and productive place to work. water through the process plant, elimi- nating the need for fresh water in ■ Wolverine genetics study The EKATI mine is proud to have processing. ■ Aerial caribou surveys received the 2005 Environment Award ■ Caribou behaviour studies for the Naonayaotit Traditional EKATI has two storage locations for water affected by mining: the Long Lake ■ Wolf surveys Knowledge Project, a GIS (geographic containment facility, near the main ■ information system) database that Panda diversion channel study camp, and King Pond, near the Misery contains the ecological knowledge of ■ Long Lake containment facility pit. All releases complied with the efflu- the local Inuit. The project enables studies ent quality requirements in EKATI’s western scientists to use information ■ North American breeding bird water licence. while preserving the intended context. survey As well, EKATI’s Workplace Learning Energy ■ Upland breeding bird survey Program was recognized when For this reporting period the mine used ■ Raptor surveys employee Germaine Eyakfwo, a partici- approximately 115,921 megawatt hours ■ Aquatic effects monitoring study pant in the program, received the 2005 of self-generated electricity. About 49 Canada Post Literacy Award for percent of this was used by the process Community consultation Individual Achievement. plant and 26 percent by the under- The EKATI diamond mine’s consultation activities have evolved as a result of Globally, UK business leaders recog- ground operations. several voluntary agreements—socio- nized BHP Billiton as company of the EKATI has a conservation plan, the economic, environmental, and five year in 2005 at the Business in the Energy Smart Program, which is driven impact and benefit agreements—negoti- Community National Awards for by employee suggestions. In the past ated before or at the time of the mine’s fiscal year, the mine met its savings Excellence. The company is proud to be startup. Each agreement specifies a target of 2 million litres of diesel fuel. a leader in building business success on consultation schedule, and these sched- Many energy efficiency initiatives, some the values of sustainable development ules govern the company’s meetings of which were suggested by employees, and responsible business practice. with stakeholders. Meetings are held in have been incorporated into the new various communities to provide Reclamation underground office building. updates, and the mine staff is occasion- EKATI operations disturbed an addi- EKATI is currently investigating the feasi- ally invited to make presentations on tional 244 hectares during the past year. bility of installing a wind farm consisting specific topics. This brings the total site disturbance of six one-megawatt wind generators. Stakeholders are encouraged to express requiring rehabilitation to 2,002 their concerns or suggestions directly to hectares. Waste management the site management. Any complaint or 25 All waste oil produced by EKATI will The waste produced by kimberlite query is directed to the responsible now be burned on site during the cold processing and diamond production person on site, and feedback is given months to heat the mine air in the includes both coarse material, which is directly to the person who made the underground operations. This measure trucked to reject stockpiles, and fine initial contact. All concerns are taken will eliminate the need to send this processed kimberlite, which is pumped seriously and treated confidentially. hazardous material to southern Canada to the Long Lake containment facility for processing each year. EKATI trans- Voluntary codes and industry for disposal. Field studies are underway ports used engine filters, vehicle batter- initiatives to find an appropriate method for reha- ies, waste grease, used dry cell batteries BHP Billiton is a signatory to several bilitating the fine tailings disposal site, and waste glycol over the winter ice voluntary initiatives, including the TSM including possible revegetation using road to be processed or recycled by initiative, the Australian Minerals native plants. registered contractors. Industry Code for Environmental Management and the Australian Water management Air emissions Greenhouse Gas Challenge. The mine is The total volume of fresh water used by Air quality is monitored regularly at the committed to implementing the princi- the EKATI mine for this reporting period EKATI mine to provide operational air ples of these initiatives through its was 148 megalitres. In addition to fresh quality data. health, safety, environment and

Towards Sustainable Mining Progress Report Highlights of Company Actions

community (HSEC) management The rest of the construction will be Sigma business improvement processes systems, goals and targets, and through finished in 2006. to maximize its operational efficiency. its performance indicators. Diavik’s vision is to become Canada’s During 2005 Diavik continued its premier diamond producer, creating a construction of fish habitat within the Diavik Diamond Mines Inc. legacy of responsible safety, environ- A154 dike. This work is part of the Diavik Diamond Mines Inc. is a wholly mental and employee development progressive reclamation that will prepare owned subsidiary of Rio Tinto plc of practices and enduring community the mine for eventual closure and will London, England. The Diavik diamond benefits. An important milestone in the help ensure no net loss of fish habitat. mine, located on a 20-square-kilometre past year was receiving the 2004 E3 A fish health and palatability study, island in Lac de Gras, 300 kilometres Environmental Excellence in which combines traditional and scien- northeast of Yellowknife, is a joint Exploration Award from the Prospectors tific knowledge to measure fish health venture between Diavik (60 percent) and Developers Association of Canada. over the mine life, continued in 2005 at and Aber Diamond Mines Ltd. (40 the seasonal camp Diavik constructed percent), a wholly owned subsidiary of With production fully underway, Diavik near the mine for such work. remains committed to protecting the Aber Diamond Corporation of Toronto. Diavik also advanced reclamation Diavik is the mine operator. ecological integrity of the local environ- ment through adaptive management research programs to study the follow- The Diavik mine is expected to produce and custom prevention programs. ing topics: over 100 million carats of diamonds Diavik’s environmental management ■ till cover stability from four ore bodies (kimberlite pipes) system is certified to ISO 14001 stan- ■ over a life of 16 to 22 years. Mining the revegetation dards and was recertified in 2005 to ore, which is located under shallow ■ planning for PKC (tailings) closure 2004 standards. The company’s prod- water in Lac de Gras, requires three ■ uct-sorting facility was also recertified disposal alternatives for sludge from dikes. The first was completed in 2002. under ISO 9001 (to 2000 standards). As the water treatment plant The second, which encircles the third ■ ore body, was partially built in 2005. well, Diavik launched several more Six country rock test piles

Tailings Management Assessment Energy Use and Greenhouse Gas (GHG) Emissions Diavik Diamond Mines Inc. Management Assessment 5 Diavik Diamond Mines Inc. 5

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Assessed Level 0 Processed Kimberlite Containment Facility (PKC) Assessed Level 0 Diavik Mine Site, Lac de Gras, NT 26 Tailings management policy and statement of commitments Tailings management system Energy use management systems Assigned responsibility for tailings management Energy use reporting systems Annual senior management review Energy intensity improvement targets OMS manual GHG emissions management systems GHG emissions reporting systems GHG emissions intensity improvement targets External Outreach Assessment Diavik Diamond Mines Inc. 5 Crisis Management

4 Planning Assessment Diavik Diamond Mines Inc. 3 Crisis management 2 preparedness

1 YES Annual review NO Assessed Level 0 Diavik Diamond Mine

Community of interest (COI) identification process Training Effective COI communications and engagement processes COI response mechanism Reporting performance Diavik Diamond Mines Inc.

The Mining Association of Canada Highlights of Company Actions

Even though the sulphide content is sure hydrometallurgy. This technology Finally, Dynatec is involved in pilot very low, Diavik is using the precau- uses chemical reactors known as auto- production of natural gas through a tionary principle to manage waste rock claves to conduct chemical reactions at coal-bed methane lease arrangement in with a very low acid-generating poten- high temperatures and pressures. This West Virginia. The lease covers 42,053 tial. Waste rock is classified into three technology and related processes have acres, which contain an estimated types, ranging from low to relatively proven highly successful in the extrac- 65 billion cubic feet of gas-in-place. high sulphur content. Rock with the tion and recovery of a variety of metals Dynatec is currently producing and sell- highest potential is placed in the middle from metal-bearing materials. In fact, ing gas from two pilot production units of country rock piles and surrounded by the division has commercialized more that consist of a single horizontal well medium- and low-grade, virtually clean than 40 circuits that use autoclaves in intersecting with a single vertical well. granitic rock. over 20 client operations on 6 conti- Two more pilot well units have been nents, including 15 circuits involved in drilled, and production should begin in Permafrost enters the central core, help- producing nickel and cobalt. the near future. Dynatec has also drilled ing to eliminate contact with water and the first full production unit, consisting air and thus any acid-draining potential. Now Dynatec is focusing on opportuni- of two horizontal wells intersecting with ties to own and operate mineral assets Diavik takes a comprehensive approach that involve the production of nickel a single vertical well. Dewatering of this to community engagement. This and other base and precious metals and unit began late in 2005. The company approach provides for open communi- that also draw on the company’s mining plans to use data from the pilot program cation through community-based socio- and metallurgical experience. In addi- and the first full production well to find economic and environmental advisory tion, Dynatec is looking into natural gas the optimal approach to drilling the full boards, and through Aboriginal involve- production. The company currently has field and realizing the greatest value ment in agreement implementation three main growth assets in its portfolio. from it. committees. The mine participates in The first is the Ambatovy nickel project and contributes to local and Aboriginal Falconbridge Limited communities, moving toward the in Madagascar, which could become collective goal of a positive legacy, for one of the world’s largest nickel opera- Falconbridge Limited is a leading the community and the environment, tions. Its unit operating costs are among copper and nickel company with when the mine eventually closes. the lowest in the industry, and it has an investments in fully integrated zinc and estimated project life of 27 years. aluminum assets. It is also a recycler More detailed information can be found in Annual production capacity is expected and processor of metal-bearing materi- Diavik’s annual sustainable development to total 60,000 tonnes of nickel and als. The company took the name report and other resources available at 5,600 tonnes of cobalt. The project will Falconbridge Limited following the www.diavik.ca. make use of Dynatec’s hydrometallurgi- amalgamation of Noranda and cal expertise. Extensive testing has Falconbridge in June 2005. Dynatec Corporation shown that the laterite ore at Ambatovy Falconbridge employs 14,500 people at is highly amenable to the proprietary Dynatec Corporation is a growing processes and technologies of the operations and offices in 18 countries. company with extensive mining and Metallurgical Technologies Division. Its Canadian operations include the metallurgical expertise. It has developed The division has played a lead role in following: this expertise as a leading service 27 completing the feasibility study, includ- Ontario provider to the global mining industry ing designing the project flowsheet. for over 25 years. ■ Sudbury mines, mill and smelter Second, with 20.5 million common ■ Dynatec’s Mining Services Division has Montcalm mine, Kidd mine and shares, Dynatec is the largest share- completed over 1,000 mining contracts Kidd metallurgical division holder in FNX Mining Company. FNX on behalf of clients. The division’s (Timmins) produces nickel, copper, platinum, expertise extends to all aspects of the ■ palladium and gold at one operating Noranda Recycling Inc. (Brampton) mining business, including full mine mine, McCreedy West, near Sudbury, Quebec development and operation. Its capabil- Ontario. FNX is also pursuing several ■ ities in underground narrow-vein Raglan mine (northern Quebec) other development properties and mining have been successfully applied ■ Horne smelter (Rouyn-Noranda) exploration targets, including the foot- to large-scale production of gold, ■ wall discovery at the Levack mine CCR refinery (Montreal) nickel, copper and other base and announced in early 2005. Besides its ■ General Smelting (Lachine) precious metals in North America and ownership interest, Dynatec provides ■ around the world. CEZ refinery (Salaberry-de- FNX with mine production, develop- Valleyfield) The Metallurgical Technologies Division ment and construction services under a is a recognized leader in applying pres- two-year mining services contract.

Towards Sustainable Mining Progress Report Highlights of Company Actions

New Brunswick geographically diverse of Falconbridge’s The 2005 report, along with related infor- operations to be registered. CEZ, a zinc mation on performance, is available on the ■ Brunswick mine and smelter refinery, also received ISO 14001 regis- company’s website (Bathurst) tration, as did Brampton’s Noranda (www.falconbridge.com). Falconbridge is a strong supporter of Recycling, which processes post- TSM. The TSM guiding principles and consumer electronic waste to feed the HudBay Minerals Inc. protocols, besides encouraging perfor- Horne smelter. In all, 14 Falconbridge mance improvement throughout the HudBay Minerals Inc. (HMI), which operations worldwide are registered to bought Hudson Bay Mining and Canadian industry, also align with the stringent ISO standard. Falconbridge’s values, commitments Smelting (HBMS) from Anglo American plc in late 2004, is an integrated and objectives. In 2005 the company’s Energy and greenhouse gas manage- Canadian mining company that operations improved their understand- ment remain critical to Falconbridge’s produces zinc, copper and precious ing of the protocols and indicators. In operations and sustainability commit- metals. In 2005 HMI operated four 2006 they will develop new practices ments, and TSM plays a pivotal part in mines, two concentrators and two and will further apply the indicator achieving the company’s goals. metallurgical processing facilities (one criteria in order to improve results. Falconbridge takes an approach to for zinc and one for copper) through its Falconbridge recognizes the value of energy and GHG management that subsidiary, HBMS. These plants are building relationships and dialogue includes the elements found in the TSM located in Flin Flon and Snow Lake, with its communities of interest. The protocols for energy use and GHG Manitoba. HBMS also operates an external outreach programs at the emissions management. The company exploration division known as HBED company’s operations are designed to has integrated the accompanying indi- and a zinc oxide plant in Brampton, address unique, site-specific stakeholder cators and targets into its energy Ontario, called Zochem. concerns. management plans at Canadian opera- Because HMI’s only operating tions and is also promoting them in its For example, Falconbridge is participat- subsidiary in 2005 was HBMS, this global operations. ing in the Sudbury Soils Study, one of profile focuses on HBMS results. the largest human health and ecological Falconbridge is committed to an energy The company made significant progress risk assessment studies ever in Canada. intensity improvement target of one towards meeting the requirements of Other partners include the Ontario percent per year for 2000–10. In 2005 MAC’s Developing an Operation, Ministry of the Environment, the the company’s energy intensity at Maintenance and Surveillance Manual Sudbury District Health Unit, the City Canadian operations was 0.3 percent for Tailings and Water Management of Greater Sudbury, Health Canada’s lower than in 2004. On average, energy Facilities. A manual was completed for First Nations and Inuit Health Branch, intensity has been decreasing by 0.7 the Flin Flon tailings impoundment and Inco Limited. An independent percent per year relative to 1989 levels. system, and most of the work is done observer attends meetings to represent on a manual for Snow Lake. the general public and the environment, Falconbridge is working to optimize its The company retained ISO certification and a public advisory committee repre- energy performance by implementing at its Flin Flon and Snow Lake opera- sents citizens’ interests and ensures that Six Sigma process efficiency projects, tions, and also at HBED and Zochem. 28 the process is transparent. using energy monitoring and control systems and buying energy-efficient In 2005 HBMS received approval from Following peer review by an indepen- equipment whenever possible. The Saskatchewan’s Environmental dent panel of international experts, the company will continue to take part in Assessment Branch to expand the Flin results of the Sudbury Soils Study will discussions with the federal government Flon tailings pond northwest of its be shared with the public. For more and industry associations as climate current location. Construction is set to information, visit the study’s website change policy develops. begin in 2006. The expansion has two (www.sudburysoilsstudy.com). main benefits. First, it will be easier to All Falconbridge operations strive to Falconbridge produces an annual manage water quality because of longer continuously improve their environ- sustainable development report that retention times before effluent is mental performance and have adopted details progress on commitments to released through the final discharge rigorous environmental management environmental responsibility, social point. Second, there will be less poten- systems. In 2005 the Sudbury mines equity and economic prosperity. tial for dusting because the active tail- ings areas will move farther away from and mill were registered to the ISO Beginning with the 2005 report, the the nearby community. 14001 standard for world-class environ- company is aligning its reporting with mental management systems. This the Global Reporting Initiative frame- Also during 2005, mine closure plans achievement is noteworthy, as Sudbury work, internationally recognized as a were updated to feasibility level; envi- is the largest integrated and most best practice in sustainability reporting. ronmental effects monitoring studies

The Mining Association of Canada Highlights of Company Actions

were completed for Flin Flon and Snow For instance, the company launched its ing relationships with communities on Lake; and experiments with vegetation own integrated health, safety and envi- the northern Labrador coast. test plots continued in the Flin Flon tail- ronmental management system in 2005. At its operations in Sudbury, Ontario, ings impoundment system. At the end of the year, all operations and Thompson, Manitoba, Inco contin- reported to the chief operating officer ues to focus on the impact of its emis- on their compliance with the system, Inco Limited sions. The sulphur dioxide abatement enabling the company to focus on areas Inco, a Canadian-based mining and project at Sudbury advanced during the needing improvement. Inco’s perfor- metals company, is the second-largest past year. The project, which should be mance is detailed in its annual environ- producer of nickel in the world. It also commissioned in 2006, will bring a mental, health and safety progress produces copper, cobalt and precious considerable reduction in sulphur diox- reports (www.inco.com). metals at operations in Canada and ide emissions. The startup of the Voisey’s Bay nickel around the world. Inco is expanding Inco is especially focused on controlling mine and concentrator in 2005 marked with a new mine that began operations emissions during periods of poor atmos- the culmination of a considerable effort, in 2005 at Voisey’s Bay, Labrador. With pheric dispersion. At both Sudbury and one that involved a major environmen- this increasing activity, the company Thompson, the company used measure- tal assessment; a large-scale construc- must strive to meet new health, safety ment equipment and better dispersion tion project in a harsh, environmentally and environmental challenges at all its modelling to anticipate the occurrence sensitive region; and the creation of operations. of such periods. These steps have close working relationships with the Inco’s performance in these areas is helped, but Inco is determined to two main Aboriginal groups in the area. being driven to higher levels by initia- improve even more in 2006. Inco’s partnership with the Innu and tives like TSM and the reporting stan- Inuit has meant that environmental The company’s efforts to improve the dards of the Global Reporting Initiative. challenges can be met amicably, in a quality of effluent discharge have In addition, Inco’s evolving internal way that incorporates shared environ- produced results. In 2005, thanks to an requirements play an important role. mental values. Inco is proud of its work- enhanced water management program,

Tailings Management Assessment Energy Use and Greenhouse Gas (GHG) Emissions Inco Limited Management Assessment 5 Inco Limited 5

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Assessed Level 0 Copper Cliff Central Tailings Thompson Tailings Facility

Assessed Level 0 Ontario Division Tailings management policy and statement of commitments Thompson Operations 29 Tailings management system Energy use management systems Assigned responsibility for tailings management Energy use reporting systems Annual senior management review Energy intensity improvement targets OMS manual GHG emissions management systems GHG emissions reporting systems External Outreach Assessment GHG emissions intensity improvement targets Inco Limited 5 Crisis Management Planning Assessment 4 Inco Limited

3 Crisis management 2 preparedness

1 YES Annual review NO

Assessed Level 0 Ontario Operations Manitoba Operations

Community of interest (COI) identification process Training Effective COI communications and engagement processes COI response mechanism Reporting performance Inco Limited

Towards Sustainable Mining Progress Report Highlights of Company Actions

there were no bypasses of the effluent Inco is involved in other related continuous improvement. However, the treatment systems in Sudbury. A similar research projects, such as the co-mix company was unable to meet its 2005 program in Thompson will better cover project underway in the Copper targets for reasons described below. control the quality of discharges from Cliff tailings area. There Inco is testing Inmet’s overall results actually improved the Birchtree mine. the long-term efficacy and geotechnical in 2005 compared to 2004, but some stability of potential dry covers for evaluations appear to show a perfor- Land use and reclamation continue to preventing future acid generation from mance decline. This discrepancy was be a priority at all Inco operations. sulphidic tailings and waste rock. expected and occurred because the The company has three aims: to under- TSM indicator protocols were strength- take reclamation at operations that have ened during the year. reached the end of their productive Inmet Mining Corporation phase; to continue progressive reclama- Inmet Mining Corporation reported its Cobre Las Cruces is Inmet’s develop- tion of active properties wherever feasi- 2004 TSM performance in detail in last ment property near Seville, Spain. ble, and in accordance with closure year’s TSM Progress Report. Since then Although it is not operating, certain plans; and to continue reclamation at the company has continued to improve components of TSM apply to it. 42 idle properties in the Sudbury basin. its operational performance to reduce Community dialogue has been an inte- One example of Inco’s emphasis on this risk. Inmet incorporated TSM principles gral part of the site’s activities and will important responsibility is the reclama- into its 2005 targets for safety, environ- continue to be as construction begins in tion at its Shebandowan and Whistle ment and community affairs by commit- 2006. Las Cruces will also develop an properties in Ontario. The company has ting to better tailings management, emergency preparedness and response flooded active tailings, filled in pits and community engagement and dialogue. plan to meet both regulatory require- ments and Inmet’s TSM goals. placed engineered covers over acid- Throughout Inmet, personnel are generating waste rock to prevent further becoming more knowledgeable about In 2004 Inmet conducted self-assess- acidification. TSM and its valuable philosophy of ments for the Ok Tedi mine in Papua New Guinea, based on the company’s Tailings Management Assessment knowledge of operations there. Inmet’s Inmet Mining Corporation assessment of tailings management was 5 based on the fact that Ok Tedi carries out considerable dialogue with down- 4 river communities about the impact of 3 mine waste management practices. In

2 2005 Ok Tedi staff completed the self- assessments themselves, based on the 1 strengthened TSM protocols. As a result,

Assessed Level 0 Çayeli Mine Copper Norbec Ok Tedi Mining Pyhäsalmi Samatosum Sturgeon Lake Troilus Mine Winston Lake Ok Tedi’s results for the tailings manage- Range Company (closed) Limited (18% Mine (closed) (closed) (closed) (closed) shareholding) ment indicators have declined signifi- cantly and more accurately reflect the Tailings management policy and statement of commitments Tailings management system site’s current status. 30 Assigned responsibility for tailings management Annual senior management review In Canada Inmet made progress in tail- OMS manual ings management by developing and implementing formal OMS (operation, External Outreach Assessment maintenance and surveillance) manuals Inmet Mining Corporation at its closed properties. For instance, at 5 Troilus in northern Quebec, formal

4 implementation of the OMS manual began. However, Inmet did not make as 3 much progress as it had hoped in 2 implementing a management system

1 and OMS manual at Pyhäsalmi in Finland. Assessed Level 0 Çayeli Mine Cobre Las Copper Range Norbec Ok Tedi Pyhäsalmi Samatosum Sturgeon Lake Troilus Mine Winston Lake Cruces (70% Company (closed) Mining Mine (closed) (closed) (closed) In the area of crisis management and development (closed) Limited (18% project) shareholding) emergency response, the company Community of interest (COI) identification process advanced considerably by developing Effective COI communications and engagement processes COI response mechanism emergency preparedness and response Reporting performance plans at its closed Canadian properties.

The Mining Association of Canada Highlights of Company Actions

Energy Use and Greenhouse Gas (GHG) Emissions Management Assessment Inmet Mining Corporation Crisis Management 5 Planning Assessment Inmet Mining Corporation 4

Crisis 3 management preparedness 2

1 YES Annual review NO Assessed Level 0 Çayeli Mine Copper Norbec Ok Tedi Mining Pyhäsalmi Samatosum Sturgeon Lake Troilus Mine Winston Lake Range Company (closed) Limited (18% Mine (closed) (closed) (closed) (closed) shareholding) Training

Energy use management systems Energy use reporting systems INMET Mining Corporation Energy intensity improvement targets GHG emissions management systems GHG emissions reporting systems GHG emissions intensity improvement targets

Crisis Management also build on the existing foundation for Planning Assessment community engagement by developing Inmet Mining Corporation and implementing formal plans, espe- Crisis cially at its operating sites at Çayeli, management preparedness Pyhäsalmi, Troilus and Las Cruces.

Annual review Iron Ore Company of Canada IOC is the largest manufacturer of iron Training ore pellets in Canada and a leading supplier of iron ore pellets and concen- Çayeli Copper Norbec Ok Tedi Pyhäsalmi Samatosum Sturgeon Lake Troilus Mine Winston Lake Range (closed) Mining Mine (closed) (closed) (closed) Company Limited (18% trate around the world. It operates a (closed) shareholding) mine, concentrator and pelletizing plant YES in Labrador City and has port facilities NO in Sept-Îles, Quebec. It also operates a 418-kilometre railroad that links the mine to the port. IOC’s customer base As well, simulation exercises were mental monitoring and a case study on includes North American, European conducted at Samatosum (British the Troilus experience. At Çayeli and Asian steel producers. The Columbia) and Winston Lake (Ontario). (Turkey) Inmet became more involved company employs about 1,700, and its in the community by helping establish major shareholder is Rio Tinto, an inter- In the area of developing and imple- 31 a housing foundation to assist needy national mining group active in over menting formal community engagement families. At Samatosum and Winston 40 countries. and dialogue plans, Inmet did not Lake, the company developed formal progress as hoped. But the company IOC supports MAC’s Towards Sustain- community plans and began dialogue did make headway in building a solid able Mining initiative. In fact, the with its communities of interest. foundation for this activity and in company was involved in developing improving dialogue. The business case In the area of energy and greenhouse the TSM guiding principles. These prin- for formal community engagement and gas, Inmet has generally not advanced. ciples align with IOC’s mission, values, dialogue has evolved slowly over the After re-evaluating performance commitments and performance past few years. However, Inmet now against the revised TSM protocols, the improvement objectives, all of which are outlined in the company’s annual has understanding and commitment company adjusted some of its levels social and environment reports (avail- throughout the company to move ahead upward compared to 2004, particu- able at www.ironore.ca). IOC also with formal dialogue plans. larly at Ok Tedi. played a key role in developing the TSM At the Troilus site, Inmet built on its Looking ahead, Inmet has maintained external outreach indicators, and will be existing relationship with the Cree its 2005 targets for 2006. The company involved in shaping future TSM perfor- community by collaborating on a will continue to improve its tailings mance indicators in areas such as biodi- number of projects, including environ- management in the coming year. It will versity.

Towards Sustainable Mining Progress Report Highlights of Company Actions

IOC’s commitment to TSM is evident in mize the tailings footprint, improve that conforms to MAC’s Guidelines for the improvements the company has biodiversity and ecosystems, and Corporate Crisis Management Planning. made, not only under the TSM perfor- reduce the physical and chemical Finally, under community outreach, mance indicators but also in other areas impact of its tailings operations. IOC IOC continues to improve its relation- that IOC considers important to the has incorporated some of the TSM tail- ship with its communities of interest. sustainability of the company and the ings management performance indica- In Labrador City, a community advisory communities in which it operates. The tors into its own performance improve- panel has been established to provide TSM performance indicators, as well as ment objectives to ensure that first-class feedback on the company’s social and other environmental initiatives, are standards are in place. environmental initiatives and issues. incorporated into IOC’s environmental IOC has made advancements in the management system, which was Biodiversity is another important area other three TSM performance areas as formally registered to ISO 14001:2005 in which IOC has improved its perfor- well. Under energy use and GHG emis- in the fall of 2005. mance. The company’s Tailings to sions management, IOC’s Continuous Biodiversity initiative has made some Looking at the first TSM performance Improvement Initiative has identified a important gains in attracting diverse area, tailings management, IOC has number of energy conservation oppor- waterfowl to the wetlands created on faced some unique challenges in how it tunities in the past few years. As a the tailings facility. In a related project operates and maintains its tailings facil- result, the company has seen significant completed in 2005, the company ity in Labrador City. But after several reductions in its energy usage and emis- designed and built a meandering fish years of consulting with the community sions. In the area of crisis management habitat channel for resident and migra- and interacting with government, IOC planning, IOC has adopted a formal tory species in the Luce Creek Basin has developed a solution that will mini- disaster management and recovery plan and Wabush Lake. This channel is another example of IOC’s commitment Tailings Management Assessment to having a net positive impact on Newmont Canada Limited biodiversity. 5 In 2005 IOC was awarded the Great 4 Blue Heron Award by the North American Waterfowl Management Plan 3 Committee in recognition of the

2 company’s work to conserve wetland habitat. 1

Assessed Level 0 Newmont Canada Limited— Golden Giant Mine Holloway Mine Golden Giant Mine Tailings management policy and statement of commitments Tailings management system Newmont’s Golden Giant mine is a Assigned responsibility for tailings management Annual senior management review shaft-access underground gold mine OMS manual operation that includes a mill, a refinery 32 and other surface facilities. The mine is Energy Use and Greenhouse Gas (GHG) Emissions located 30 kilometres inland Management Assessment from the north shore of Lake Superior in Newmont Canada Limited the Hemlo mining camp. The operation 5 employs about 250 people, most of whom live in Manitouwadge, Ontario, 4 50 kilometres north of the mine site.

3 The Golden Giant mine started produc-

2 tion in 1985 and has operated continu- ously ever since. The operation sold 1 162,000 ounces of gold in 2005, bring-

Assessed Level 0 ing the mine life total to over 6.7 Golden Giant Mine Holloway Mine million ounces, valued at $3.2 billion. Energy use management systems After 21 years of successful mining and Energy use reporting systems Energy intensity improvement targets with the depletion of the ore reserves at GHG emissions management systems GHG emissions reporting systems hand, Golden ceased underground GHG emissions intensity improvement targets operations in February 2006.

The Mining Association of Canada Highlights of Company Actions

The company will now focus on site External Outreach Assessment reclamation, which should be complete Newmont Canada Limited in four to five years, with regulatory 5 monitoring and reporting to continue 4 thereafter.

3 The key environmental goals at Golden

Giant have not changed from previous 2 years. They are still to have no environ- mental incidents, to minimize the oper- 1

ation’s footprint on the environment Assessed Level 0 and to comply with all environmental Golden Giant Mine Holloway Mine regulatory requirements. Community of interest (COI) identification process Effective COI communications and engagement processes COI response mechanism By setting internal standards that are Reporting performance more stringent than the environmental regulatory standards, Golden Giant has achieved its sixth straight year of Crisis Management Crisis Management 100 percent compliance with require- Planning Assessment Planning Assessment ments for treated effluent discharge and Newmont Canada Limited Newmont Canada Limited 100 percent compliance with its permit Crisis Crisis for taking fresh water. In another major management management accomplishment, the mine reduced its preparedness preparedness reportable spills from twelve in 2004 YES YES Annual review Annual review to only one minor spill in 2005. This NO NO single spill, of 1,500 litres of grinding circuit slurry, was contained and Training Training promptly cleaned up with no adverse effect on the environment. Newmont Mining Corporation Golden Giant Holloway Mine Mine Golden Giant has set the following objectives for 2006: ■ increase involvement and The table below summarizes some key ■ minimize its environmental communication with communities indicators of Golden Giant’s environ- footprint by meeting all regulatory of interest regarding the mine mental performance: requirements and corporate closure standards ■ encourage good relations with local ■ review and amend as needed all First Nations to ensure a positive environmental programs, approvals, environmental legacy permits and requirements to ■ encourage public dialogue during properly monitor and manage the transition from operation to 33 closure and reclamation closure to reclamation

Environmental Performance Indicators

2002 2003 2004 2005

Total number of environmental incidents 16 12 12 1

Environmental incidents with adverse effect 0 0 0 0

Treated effluent discharge compliance 100% 100% 100% 100%

Fresh water take/use compliance 100% 100% 100% 100%

Environmental offences/charges/fines 0 0 0 0

Water recycling efficiency 75.1% 80.4% 96.2% 95.9%

Fresh water use in litres per tonne of ore 906 1,113 264 223

Towards Sustainable Mining Progress Report Highlights of Company Actions

Newmont Canada Limited— the company can ensure that the envi- water each year from the tailings stor- Holloway Mine ronment is protected. age and treatment facility into the Magusi River. Newmont’s Holloway mine is located in With the purchase of the Holt- the Abitibi-Témiscamingue region, 56 McDermott mill from Barrick, Holloway Despite the environmental challenges of kilometres east of Matheson in north- had to incorporate new disciplines, incorporating the acquired mill into its eastern Ontario. The mine consists of an such as tailings storage management, operations, Holloway achieved a underground operation with three shafts, into its environmental program. number of milestones in the past year: Integrating the mill and its four tailings as well as a gold mill and refinery. ■ improved its Five Star Assessment ponds, formed by eighteen small dams, The mine employs about 179 people environmental scores from 26 surrounding communities. broadened Holloway’s work and ■ presented new challenges. Overall, the achieved zero releases of mercury, Holloway’s environmental strategy is to tailings area covers a watershed of 3.39 cyanide and hydrocarbons (oils and remain compliant with all government square kilometres (1.3 square miles). fuels) regulations and industry standards while ■ experienced no mortality of implementing the Newmont Five Star These operational changes mean that threatened, endangered or other environmental management system. Holloway must discharge water into the common species By integrating compliance and environ- environment in accordance with mental management systems into opera- provincial and federal permits and regu- A key focus for Holloway in 2006 will tional strategies, and by adopting effec- lations. The operation discharges some be working on its environmental closure tive monitoring and control programs, 2.5 million cubic metres of treated plan, an integral part of the overall mine-life planning process.

Placer Dome Canada Tailings Management Assessment All of Placer Dome’s Canadian opera- Placer Dome (CLA) Limited 5 tions are based in Ontario. They include the Campbell mine in the Red Lake 4 district, the Musselwhite mine north of Pickle Lake and the Porcupine joint 3 venture in Timmins. Canadian opera-

2 tions that are closed but still under Placer Dome’s care include the Equity 1 silver mine near Houston, British

Assessed Level 0 Columbia; the Dona Lake mine near Porcupine Joint Venture – Dome Mine Campbell Mine Musselwhite Mine Pickle Lake, Ontario; and the Detour Tailings management policy and statement of commitments Tailings management system Lake mine north of Cochrane, Ontario. Assigned responsibility for tailings management Annual senior management review Placer Dome’s commitment to sustain- OMS manual ability is reflected in the company’s 34 sustainability charter, a set of guidelines to govern sustainability practices Energy Use and Greenhouse Gas (GHG) Emissions Management Assessment throughout the company. Mine sites can Placer Dome (CLA) Limited adapt these guidelines to their local 5 needs. The guidelines provide a frame- work for setting goals and priorities and 4 for identifying areas that need improve- ment at each site. Each component of a 3 site’s sustainability program is geared

2 towards enabling that site to operate as sustainably as possible. 1

Assessed Level 0 Porcupine Joint Venture Campbell Mine Musselwhite Mine

Energy use management systems Energy use reporting systems Energy intensity improvement targets GHG emissions management systems GHG emissions reporting systems GHG emissions intensity improvement targets

The Mining Association of Canada Highlights of Company Actions

External Outreach Assessment Dome Canada aims to improve its Placer Dome (CLA) Limited energy efficiency by 10 percent by the 5 end of 2006.

4 Although Watt Watchers focuses on energy conservation, it is expected to 3 lead to improved greenhouse gas emis-

2 sions as well. The company will use information gained from its energy 1 conservation programs to develop a

Assessed Level 0 future GHG strategy. Porcupine Joint Venture Campbell Mine Musselwhite Mine All in all, Placer Dome’s approach to Community of interest (COI) identification process Effective COI communications and engagement processes TSM has been to integrate the require- COI response mechanism Reporting performance ments into existing management systems and programs, and to include improve- ments that can be reflected in the TSM Crisis Management assessment in the company’s annual Planning Assessment sustainability plan. By taking this Placer Dome (CLA) Ltd. approach, the company can build on

Crisis existing programs rather than viewing management TSM as an independent initiative. Placer preparedness Dome has made progress but will YES continue to strengthen its environmental Annual review NO and social performance in the future.

Training Québec Cartier Mining Company (QCM) Placer Dome (CLA) Ltd. QCM is a leading producer of iron ore Involving stakeholders is an important verify the assessment levels at the products in North America. The sustainability priority for Placer Dome. Campbell mine and the Porcupine joint company operates an open pit mine Using established methods for engaging venture. The sites have been working and a crusher/concentrator facility with local stakeholders at the mine together to improve their operation, capable of producing 16 million metric level, each operation strives to inform maintenance and surveillance (OMS) tonnes of iron ore concentrate annually stakeholders, facilitate dialogue and manuals. Future OMS refinements at Mont-Wright in northern Quebec. invite feedback. should result in better operation of the QCM also operates an iron ore pellet plant with annual production capacity Since its last report on the TSM indi- company’s tailings facilities and a of some 9 million metric tonnes at Port- cators, Placer Dome Canada has, in higher assessment in the TSM program. Cartier, Quebec, on the north shore of its annual sustainability plan, empha- Energy management is a key focus for 35 the Gulf of St. Lawrence. The deep sized performance improvement in Placer Dome. In 2005 the company harbour at Port-Cartier operates year- crisis planning, tailings management, introduced the Watt Watchers program round and can accommodate ships energy management and community to get employees involved in energy carrying up to 188,000 tonnes of ore. involvement. conservation and management. The The Cartier Railway Company, a QCM program, active at all three mine sites, In the area of crisis planning, Placer subsidiary, links the mine to the port. Dome has substantially revised its crisis includes an employee awareness After the federal Metal Mining Effluent management plan, establishing linkages campaign to modify behaviour and Regulations came into effect in 2002, to mine sites and corporate offices in encourage workers to participate. QCM applied for a transitional autho- Vancouver. The program involves workshops on how to save energy and promotes rization for total suspended solids at In tailings management, Placer Dome’s communication with employees and one of its effluent sources. After making operations underwent external audits communities about the importance of modifications to decrease the total based on MAC’s guidelines. As well, energy management. In less than a year suspended solids, QCM met all effluent external TSM audits were conducted to the program has proven its value. Placer requirements in 2005.

Towards Sustainable Mining Progress Report Highlights of Company Actions

When Quebec’s industrial waste reduc- QCM’s pellet plant uses about 30 oil. Since then Suncor has grown into tion program for mining came into percent less energy per tonne of pellet four major business divisions. Our core effect in 2002, QCM submitted two production than its Brazilian competi- oil sands business is supported by requests to the Quebec Ministry of the tors. In keeping with Kyoto objectives, conventional natural gas production in Environment, one for Mont-Wright and the plant contributes considerably to western Canada and by downstream one for Port-Cartier. In cooperation with reducing net emissions from pellet refining, marketing and retail businesses the Quebec Mining Association, QCM production at the global level. in Ontario and Colorado. continues to be active in defining the As a member of The Mining Association Suncor recovers bitumen from the oil contents of its “depollution attesta- of Canada, QCM adheres to the TSM sands near Fort McMurray in northern tions”—the operating permits in which guiding principles. The company will Alberta and upgrades it to refinery-ready facilities measure and declare their make additional efforts in the coming feedstock and diesel fuel. With total normal discharge levels and outline year to improve its performance under production surpassing the one billion measures for lowering them. This is specific indicators, especially those barrel mark and enough reserves to done with a joint committee involving involving crisis management planning sustain production for the next 50 years, members of the Quebec Mining and energy use. the company remains a leader in oil Association and the Quebec Ministry of sands development. the Environment. In 2005 a working Suncor Energy Inc. group was created to define the specific In 2005 Suncor completed the next aspects of the waste reduction program In 1967 Suncor Energy made history by phase of its expansion, increasing oil for pellet plants. tapping the oil sands to produce the first sands production capacity to 260,000 commercial barrel of synthetic crude barrels per day. For Suncor, being a sustainable energy company means managing the business Tailings Management Assessment in a way that enhances social and Suncor Energy Inc. economic benefits to society, while 5 striving to minimize the environmental impacts of resource development. 4 Suncor believes technology and innova- 3 tion are key to this vision.

2 Here are some examples of sustainabil- ity in action at Suncor. 1 ■ In 1997 Suncor pioneered

Assessed Level 0 Lease 86/17 Tailings Facility and Millennium Tailings Facility consolidated tailings (CT) technology. CT technology uses Tailings management policy and statement of commitments Tailings management system gypsum to bind mature fine tailings Assigned responsibility for tailings management Annual senior management review with mined sand, freeing water for OMS manual reuse in oil sands processes. The 36 remaining solids consolidate to form Energy Use and Greenhouse Gas (GHG) Emissions a reclaimable deposit. Once the Management Assessment released water has been removed, Suncor Energy Inc. the solids can be sealed with a sand 5 cap to provide a firm platform on 4 which to begin reclamation activities. Suncor’s first CT pond 3 should be filled in by 2007, a key

2 step toward surface reclamation.

1

Assessed Level 0 Oil Sands Facility

Energy use management systems Energy use reporting systems Energy intensity improvement targets GHG emissions management systems GHG emissions reporting systems GHG emissions intensity improvement targets

The Mining Association of Canada Highlights of Company Actions

External Outreach Assessment Suncor Energy Inc. 5 Crisis Management Planning Assessment 4 Suncor Energy Inc.

3 Crisis management preparedness 2

YES 1 Annual review NO

Assessed Level 0 Oil Sands Facility Training Community of interest (COI) identification process Effective COI communications and engagement processes COI response mechanism Suncor Energy Inc., Oil Sands Reporting performance

■ Water withdrawal intensity at exceeded its commitment to reduce Association secure important boreal

Suncor’s oil sands operations NOx emissions in the mine by habitat that will be turned over to declined 32.3 percent between buying more efficient replacement Alberta Parks for ongoing 2000 and 2004. This reduction equipment such as heavy haulers, stewardship and management. reflects the increased use of shovels, bulldozers and backhoes. ■ Suncor is also collaborating with the recycled water from the company’s ■ Suncor is also playing a lead role in Regional Municipality of Wood tailings systems in the bitumen balancing the conservation of Buffalo on waste management. extraction and upgrading Canada’s boreal forest with Suncor and the Suncor Energy operations. Because more recycled responsible resource development. Foundation will give the water is being used, less water is Suncor was a founding member of municipality up to $100,000 a year being released back to the the Boreal Forest Conservation for the next three years to develop a Athabasca River. Recycled water Framework, a groundbreaking public awareness and education from the ponds accounts for 82 national initiative developed by 11 campaign about recycling and percent of the water Suncor uses to First Nations, environmental groups waste management. The two parties produce oil. and resource companies. In will also examine the joint ■ Between 2000 and 2004, NOx addition, in November 2005 the management of waste, including emissions and emissions intensity at Suncor Energy Foundation recyclables, generated by both Suncor’s oil sands operations announced that it would invest organizations. decreased by 8.9 percent and 53.5 $1.05 million over three years to percent respectively. The company help the Alberta Conservation

37

An iceberg floats offshore from the Torngat mountains, Labrador

Towards Sustainable Mining Progress Report Highlights of Company Actions

Here are some highlights from 2005. ■ Syncrude continued to work toward improving its sulphur performance. The company is building sulphur reduction technology into its upgrader expansion project, scheduled for completion in mid- 2006. Syncrude is also proceeding with an initiative to incorporate sulphur reduction technology into its existing operations by 2009. These two projects will reduce sulphur dioxide emissions and particulates by 50 percent from current approved levels, even though Syncrude’s crude oil Gannets nesting at Cape St. Mary’s, Newfoundland production will increase about 50 percent. ■ Suncor, in partnership with the For more information on Suncor’s progress ■ Syncrude reduced its fresh water Regional Municipality of Wood on sustainability, the environment and intake from the Athabasca River by Buffalo and the Athabasca Regional social responsibility, look for the company’s over 25 percent. This reduction is Issues Working Group, has 2005 sustainability report and 2004 climate due to better management of the developed the first sustainable change report, both available at recycled water pond system as well community indicators for the Wood www.suncor.com. For printed copies of as water conservation initiatives Buffalo region. The 21 indicators are current and previous reports on climate throughout the operations. A site- being used to measure quality of life change and sustainability, call 1 800 558- wide water management program in the community compared to 9071 or email the company at made further progress in 2005, other Alberta communities, [email protected]. helping Syncrude achieve its lowest including Edmonton, Grande Prairie raw water intake since 1990, at less and Medicine Hat. Syncrude Canada Ltd. than half the regulatory licence ■ In December 2005 the Suncor Syncrude is a leader in Canada’s oil limit. Over 80 percent of Syncrude’s Energy Foundation announced that sands industry, supplying 13 percent of water needs are now met by a it will invest $2.5 million in what the nation’s crude oil requirements. continuous recycle system. The will be Alberta’s largest multi- The company operates technologically company does not inject any water recreational facility. The new facility advanced oil sands mines, extraction into reservoirs, nor does it discharge will be built on MacDonald Island and upgrading facilities, and utilities any process-affected water into river in Fort McMurray and will serve the plants at its two sites north of Fort systems. 38 surrounding communities in the McMurray, Alberta. Syncrude is in the Regional Municipality of Wood midst of a major expansion that will see Buffalo. it producing about 350,000 barrels of Sustainable development is fundamen- crude oil a day by 2006. tal to Suncor’s long-term strategy. Syncrude’s commitment to superior Suncor believes that supplying energy environment, health and safety (EHS) in a way that meets the social, environ- performance has been strengthened mental and economic expectations of and streamlined with the implementa- stakeholders—employees, sharehold- tion of an EHS management system ers, customers, communities, govern- ments and advocacy groups—creates a that identifies risks, then documents solid foundation for increasing share- and implements controls to mitigate holder value. against the identified risks.

The Mining Association of Canada Highlights of Company Actions

■ During the year Syncrude reclaimed Teck Cominco Limited Teck Cominco measures its perfor- 305 hectares of land, bringing the mance on an ongoing and comprehen- Teck Cominco is committed to sound, total reclaimed to 4,360 hectares— sive basis. The company’s monthly and responsible business practices in every 22 percent of the land disturbed to quarterly internal reports on environ- aspect of its activities. These activities date. In 2005, for the first time, ment, health and safety, and community are governed by both the principles Syncrude’s reclamation rate (EHSC) track many performance indica- set out in the company’s charter of exceeded the rate of disturbance at tors, including compliance with corporate responsibility and the stan- the Mildred Lake base mine. permits, environmental monitoring, dards set out in its code of business, Reforestation in 2005 included material inputs and outputs, community environmental and health and safety planting more than 660,000 tree concerns and actions, reclaimed land practices. These principles and stan- and shrub seedlings, bringing the and dialogue processes initiated, to dards (available at www.teckcom- total planted to more than 4 million. name a few. The company modified inco.com) have been highlighted in ■ these reports in 2005 to capture infor- The company continued to operate the company’s sustainability reports mation that supports the TSM perfor- the Beaver Creek Wood Bison since 2002. Furthermore, Teck mance areas. Ranch in partnership with the Fort Cominco’s performance standards for McKay First Nation. Syncrude was external outreach, tailings manage- On behalf of Teck Cominco’s board of once again a winner at the annual ment and crisis management planning directors, the Environment, Health and bison show for the quality of its align closely with the TSM perfor- Safety Committee sets goals and strate- herd of 300. mance indicators. gies for environmental, social and safety ■ Syncrude conducted a thorough independent review of its Aboriginal Relations Program and has already begun to act on stakeholders’ recommendations. Of note, an Aboriginal recruitment representative has been hired to work closely with Aboriginal communities to ensure that employment opportunities are realized. ■ The company continued to work with regional stakeholders to manage the social and environmental effects of oil sands development. Independent multi- party groups are gathering and sharing comprehensive scientific data for a better understanding of 39 human and industrial impacts on performance. As well, the Corporate air, land and water. This year Teck Cominco is reporting on Environment and Risk Management ■ Syncrude awarded $54,000 in TSM performance for three facilities: Committee, a senior management grants to non-profit organizations Highland Valley Copper, one of the committee chaired by the CEO, estab- that its employees volunteer for. world’s largest-tonnage copper mining lishes priorities and directions for envi- Syncrude also has a community and milling complexes; Trail ronmental, health and safety programs, investment program that makes Operations, one of the world’s largest tracks performance and measures strategic investments in education fully integrated zinc and lead smelting results. These two committees ensure and lifelong learning; environment, and refining facilities; and Hemlo Gold the highest level of oversight on EHSC health and safety; science and Mines, in which Teck Cominco has a issues. technology; community 50 percent interest with Barrick Gold development; arts and culture; and Corporation. recreation. For more information about Syncrude, or to see the company’s 2004 sustainability report, visit www.syncrude.com.

Towards Sustainable Mining Progress Report Highlights of Company Actions

In early 2006 site and corporate person- At Hemlo, a 2005 analysis of energy to set goals in priority areas for 2006. nel conducted “brutally honest” self- management practices and a site-wide With its 2005 sustainability report, Teck assessments against the protocols for energy review led the company to iden- Cominco will begin its multi-year transi- TSM’s four performance areas: external tify improvements that, when fully tion to reporting in accordance with the outreach, tailings management, crisis implemented, will reduce annual Global Reporting Initiative’s G3 management planning, and energy use energy costs by about $1 million. Guidelines. One of the first steps will be and greenhouse gas emissions manage- After this year’s experience with TSM to return to a more detailed print report. ment. These self-assessments were reporting, Teck Cominco recognizes that The report will be available to commu- reviewed by senior operations managers some indicators need more clarification nities of interest and will be posted on to make sure the results were clearly in order to be consistently applied the company’s website by mid-year. understandable and to identify priority within the company. As well, site staff areas for 2006. Results were lower than As a company committed to continuous are now fully involved and can provide expected for some indicators because of improvement, Teck Cominco strongly valuable insight into the interpretation a lack of fully documented systems and supports TSM as a means of demonstrat- of indicators and the design of systems supporting paperwork. ing progress on key issues and identify- to track and report on performance. ing areas that need further action. ■ Currently, the facilities are focusing on Teck Cominco has used the TSM indica- energy efficiency and cost reduction. tors in conjunction with other elements

40

View departing Prince Edward County, where geology, soil and climate combine to create one of Canada’s newest wine-growing regions. Dedicated to former MAC employee, Dan Paszkowski, who is now president of the Canadian Vintners Association.

The Mining Association of Canada The Mining Association of Canada is the national organization of the Canadian mining industry. It comprises companies engaged in mineral exploration, mining, smelting, refining and semi-fabrication. Member companies account for the vast majority of Canada’s output of minerals and metals. The association’s functions are to promote the interests of the industry nationally and internationally, to work with governments on policies affecting minerals, to inform the public and to promote cooperation between member firms to solve common problems. MAC works closely with provincial and territorial mining associations, and other industry groups across Canada and internationally. The Mining Association of Canada

Suite 1105, 350 Sparks Street, Ottawa, Ontario K1R 7S8

Telephone: 613 233-9391 Facsimile: 613 233-8897 Website: www.mining.ca

This publication is printed on paper containing recycled fibre.

Published in May 2006

Printed in Canada