Technical Language

2018-2019 ANNUAL REPORT Technical Language

A public watchdog for environmental management at EKATI DIAMOND MINE Satellite image 2010/BHP Billiton CANADA Inc. CANADA Billiton 2010/BHP image Satellite EKATI DIAMOND MINE LEGEND 6 1 1 WASTE ROCK PILE (PANDA-KOALA-BEARTOOTH WRSA)

2 WASTE ROCK PILE (FOX WRSA) 1

3 WASTE ROCK PILE (PIGEON WRSA) 3

4 WASTE ROCK PILE (SABLE WRSA)

5 WASTE ROCK PILE (MISERY AND LYNX WRSA) 2 6 WASTE ROCK PILE (PROPOSED JAY WRSA) B COARSE KIMBERLITE REJECTS STORAGE AREA 3 A 1 1 PIGEON PIT 2 2 BEARTOOTH PIT C 4 3 PANDA PIT 1 4 KOALA AND KOALA NORTH PIT

5 FOX PIT

6 SABLE PIT D AIRSTRIP 7 MISERY PIT 2 8 LYNX PIT E 9 JAY PROJECT (PROPOSED)

• LONG LAKE CONTAINMENT FACILITY (CELLS A–E)

INCINERATORS

1 PIGEON STREAM DIVERSION 5 2 PANDA DIVERSION CHANNEL

1 MAIN SITE

OLD CAMP 2 2 3 MISERY CAMP

AIRSTRIP ii 4 4 6 SABLE PIT 4

PIGEON PIT

BEARTOOTH PIT

PANDA PIT ■ NORTHWEST TERRITORIES

KOALA PIT ■ NUNAVUT MAIN SITE

FOX PIT

5 3 JAY PROJECT (PROPOSED FOOTPRINT)

6 9 7

2,000 0 4,000

KM MISERY PIT LYNX PIT iii LAND DISTURBANCE AND ROAD LENGTH

LAND DISTURBANCE LAND DISTURBANCE

LAND DISTURBANCE AND ROAD LENGTH EKATI MINE YELLOWKNIFE

Sable

Direct habitat loss caused by the Ekati mine project since 1997 38 km2 Pigeon 26 km

City of Yellowknife Main estimated footprint (area shaded brown) Site 30 km2

Jay 29 km

Misery Lynx Total roads at Ekati 141 km

iv LAND DISTURBANCE LAND DISTURBANCE Approx Land How much bigger Disturbance is the Ekati mine?

BEHCHOKǪ̀ KUGLUKTUK LAND DISTURBANCE AND ROAD LENGTH YELLOWKNIFE 30 km2 x 1.3

KUGLUKTUK 2.5 km2 x 15

BEHCHOKO 2.4 km2 x 16

CAMBRIDGE BAY 1.6 km2 x 24

ŁUTSELKʼE 1.3 km2 x 29

WHATI 0.8 km2 x 47

GAMETI 0.8 km2 x 47

WEKWEETI 0.5 km2 x 76

Town of Kugluktuk estimated footprint (area shaded brown) Behchokǫ̀ estimated 2 footprint 2.5 km (area shaded brown) 2.4 km2

v TABLE OF MINE INFO...... II LAND DISTURBANCE AND ROAD LENGTH ��IV

CONTENTS MESSAGE FROM THE CHAIR ��VII

RECOMMENDATIONS AND RESPONSES �� 8

CURRENT CONDITIONS & EXPLORATION �� 13

AGENCY ACTIVITIES �� 16

WILDLIFE EFFECTS ��20

AQUATIC EFFECTS �� 25

TRADITIONAL KNOWLEDGE & ENGAGEMENT ��34

AIR QUALITY...... 38

WASTE ROCK...... 42

WASTEWATER AND PROCESSED KIMBERLITE MANAGEMENT...... 49

CLOSURE & RECLAMATION �� 57

ASSESSMENT OF THE REGULATORS ��63

ASSESSMENT OF DOMINION DIAMOND MINES ��66

FINANCIALS...... 68

ACRONYMS & GLOSSARY ��82

DIRECTOR BIOGRAPHIES ��84

Front and back cover photos: courtesy of Dominion Diamond Mines, ULC MESSAGE FROM THE CHAIR

I am pleased to present the 2018-19 annual report of the Independent Environmental Monitoring Agency (Agency). The report summarizes the Agency’s activities and offers recommendations for Dominion Diamond Mines ULC (Dominion) and for regulators.

2018 marked 20 years of production at the Ekati mine and the company commemorated with a celebration

in August at the mine site and in Yellowknife. The Agency congratulates Dominion on this significant MESSAGE FROM THE CHAIR achievement.

The major focus for the Agency over the past year has been participating in the review of Interim Closure and Reclamation Plan (ICRP) v3.0. This document has not been revised since 2011, and recognizing the importance of closure of the mine to our Aboriginal Society Members, the Agency travelled to five communities to host Information Sessions where we presented a summary of the ICRP. These sessions not only informed the community members about what is in the document and the Agency’s concerns, but also provided an opportunity for open discussion and for the Agency to hear community concerns. As part of the review process the Agency also participated in the WLWB-sponsored technical workshop and provided comments and recommendations to the WLWB including a recommendation that the ICRP v3.0 should not be approved in its current form as the plan lacks detail in many important areas.

This past year the Agency also participated in the review and evaluation of a number of important documents providing comments on the 2017 Air Quality Monitoring Program Report, Dust Suppressant Pilot Study Report (2016/17), Sable Waste Rock Storage Area Design Plan, Waste Water Processed Kimberlite Management Plan and Waste Rock and Ore Management Plan Version 9.0 and 10.0. Our main concerns and recommendations focused on seepage, risk mitigation for potentially acid generating waste rock, the use of the term “non-acid generating”, and the use of diabase as a construction material on site.

Over the next year the Agency will continue to review and provide recommendations on Dominion’s environmental management and monitoring plans and activities to ensure that there is good environmental performance at the mine site. Please feel free to contact the Agency at any time with your comments and concerns, or if you wish for us to visit your community.

Jaida Ohokannoak www.monitoringagency.net

vii RECOMMENDATIONS & RESPONSES

Each year the Agency provides recommendations to Dominion Diamond Mines ULC, the Wek’èezhı̀i Land and Water Board, and applicable federal and territorial government departments based on the review of information and comments from the past 12 months.

This section includes Agency recommendations from the past year and the responses we received to those recommendations.

← Course Processed Kimberlite Rejects Pile TO WEK’ÈEZHÌI LAND AND WATER BOARD

Wek’èezhìi Land and Water Board Response The Board is aware that IEMA has raised similar Waste Rock – Effective Neutralizing Potential concerns previously, including in its comments on The Wek’èezhìi Land and Water Board (WLWB or the WROMP Version 9.01 and 10.02. The Board has the Board) met on June 13, 2019 and considered communicated that it agrees “additional discussion RECOMMENDATION the Independent Environmental Monitoring of effective NP for all waste rock at the Ekati Agency (IEMA)’s May 27, 2019 e-mail (see attached). mine site is warranted” and previously directed 1 IEMA identified that its upcoming Environmental Dominion to discuss the use of effective NP in Agreement Annual Report will include a the interim Closure and Reclamation Plan (ICRP) RESPONSES& RECOMMENDATIONS recommendation for the WLWB regarding effective 3 The Wek’eezhii Land and Water Board undertake Version 3.0 . In addition, the Board has stated neutralizing potential (NP) at the Ekati mine site, a review to determine the most effective and that “given the ongoing review of the Effective NP and requested the Board provide a response to be efficient approach to testing and determining [Memorandum] and the ICRP Version 3.0, it is most incorporated into its Annual Report. the neutralization, acid rock drainage and metal appropriate to consider any necessary actions leaching potential of waste rock at the Ekati (e.g., expert review, technical workshop, resulting mine and other northern mine sites. WROMP revisions) in consideration of the ICRP Version 3.0.”4

IEMA has referenced the technical memorandum submitted by Dominion as part of the ongoing ICRP Version 3.0 proceeding, however, the Board understands that IEMA’s recommendation to the WLWB was not provided as part of a specific proceeding. As a matter of procedural fairness, the Board cannot respond to a recommendation on a proponent’s submission outside of the proceeding for that submission.

1 See WLWB Online Registry for W2012L2-0001 - Ekati - WROMP - Version 10.0 - Review Summary and Attachments - Mar

22_19.pdf; IEMA comment 3 and 4

2 See WLWB Online Registry for W2012L2-0001 - Ekati - WROMP V9 and Sable WRSA Design Report V2 - Review Summary and

Attachments - Jun 4_18.pdf; IEMA comment 3

3 See WLWB Online Registry for W2012L2-0001 - Ekati - WROMP - Version 9.0 - Board Directive and RFD - June 27 _18.pdf

4 See WLWB Online Registry for W2012L2-0001 - Ekati - WROMP - Version 10.0 - Reasons for Decision - Apr 24_19.pdf Photo courtesy of Dominion Diamond Mines ULC

9 TO DOMINION DIAMOND MINES ULC

Dominion Response management of any particular seep. These criteria Waste Rock – Adaptive Management are used in conjunction with Seepage Monitoring Strategy for Seepage Dominion believes that adaptive management is an Reports to verify or identify Seeps of Potential appropriate approach to managing WRSA seepage Concern, summarize response actions that are RECOMMENDATION and have implemented adaptive management on a already underway, and identify appropriate continuous basis. The current Waste Rock and Ore additional response actions. Dominion anticipates Management Plan (WROMP) V.10.0 contains the most that where appropriate, screening criteria may

RECOMMENDATIONS & RESPONSES & RECOMMENDATIONS 2 recent iteration of the Waste Rock Storage Area continue to be refined going forward, on the (WRSA) Seepage adaptive management process, Dominion should develop and implement an basis of new scientific research, continued data which was developed by Dominion in 2018. This adaptive management strategy for seepage collection and professional judgement. process provides an appropriate and effective from waste rock storage areas that defines system that ensures continued protection of the It should be noted that the implementation of appropriate monitoring indicators, benchmarks Receiving Environment in a transparent manner and screening and response programs for WRSA and response plans. addresses the recommendations raised by IEMA. seepage is not new at the Ekati mine. Dominion has undertaken numerous actions in direct response Updated seepage quality screening criteria, to observed seepage quality and a number of as described in the Ekati mine’s WROMP, are response actions are actively being implemented designed to prevent negative impacts on the by Dominion, which include: Receiving Environment. The screening criteria are conservative, based on current information, and • Silt curtains in seepage flow paths; increase the transparency of seepage management • Increased frequency of monitoring; at the Ekati mine. The screening criteria are conservative because they are applied where the • Focused intensive flow monitoring programs; sample is collected, which in most cases is at the • Monitoring of the local Receiving Environment; toe of the WRSA (i.e., as compared to the point of entry to the Receiving Environment). This means • Refined identification of Receiving Environments; that many factors that could mitigate the potential • Mapping of seepage flowpaths; and effects of seepage, such as attenuation, are not taken into account when considering the adaptive • Refinement of seepage data analysis, interpretation and screening.

10 Dominion Response Aquatics As specified in the current Ekati mine Water Licence W2012L2-0001, Schedule 8, Condition 4c, the Response Plan (i.e., for fish) will include “a description of likely causes of the Action Level exceedance”. The timeline RECOMMENDATION for submission of the Fish Response Plan Version 1.3 is 31 October 2019, as approved by the Wek’èezhìi Land and Water Board (the Board). The Aquatic Response Framework and associated Aquatic Response Plans do 3 allow for the implementation of special studies where and when applicable however, Dominion understands the appropriate place to address frequency of constituent monitoring in the Receiving Environment is the Given the exceedance of Health Canada AEMP Re-evaluation, which is due to be finalized and submitted to the Board in December 2019. guidelines of mercury in lake trout

in Kodiak Lake, the Agency recommends that RESPONSES & RECOMMENDATIONS Dominion should: I. Investigate and report on the source of mercury contamination of trout in Kodiak Lake within the next year, and II. Increase the frequency of non-lethal contaminants monitoring of trout in Kodiak Lake.

Dominion Response the Caribou Road Mitigation Plan, work stoppage Wildlife procedures in work instructions, and training/ Wildlife management activities undertaken at the presentations for onboarding or to meet annual Ekati Diamond Mine have evolved throughout the training requirements i.e., grizzly bear safety RECOMMENDATION life of the mine, based on engagement, monitoring training). These controls are in place to ensure the program results and the subsequent adaptive safety of wildlife and site personnel alike. 4 management decisions made over a number of years (See Adaptative Management Decision Tree The most appropriate way to measure the success of for the Ekati Diamond Mine, Figure 2.2-1 in the the management actions is to evaluate the number Dominion should intensify efforts to approved Wildlife Effects Monitoring Plan, 2017). of management actions undertaken (i.e., 515 actions document specific measurable thresholds that in 2018) relative to the number of mortalities (14) trigger wildlife management activities (i.e., In most cases, the trigger for wildlife management and incidents (25) that occurred for the same period. intensified mitigation), and to conduct and activities is the observation and/or reporting of Arguably, for each occasion where wildlife were document follow-up monitoring to determine wildlife to the Environment Department by site observed that did not result in a human-wildlife effectiveness. personnel (i.e., site wildlife notifications). The interaction or incident, the management action was procedures (i.e., Wildlife Protection Fatal Risk successful. Understanding the cause and effect and Control Procedures), program work instructions, extent to which controls and mitigation measures site-wide policies, and WEMP Plan that Dominion directly influence the outcome of each management has in place dictate other management actions (i.e., action is not possible. short and long-term road closures required as per

11 Dominion Response Wildlife Dominion agrees that it could be useful to combine the caribou collar locations (especially geo-fence RECOMMENDATION collar data), road traffic data, road survey data and camera data into an integrated analysis. However, 5 the actual practice of combining all of these different data in a way that produces ecologically relevant results is an extremely complicated Dominion should integrate analysis of caribou process to undertake. Dominion is open to any monitoring techniques (such as incidental suggestions from IEMA regarding processes by

RECOMMENDATIONS & RESPONSES & RECOMMENDATIONS sightings with collar movements and road which all of this information could be integrated to surveys) for management and to determine provide results that would inform the assessments relative efficiency and spatial coverage of of the effectiveness of mitigations or provide monitoring. ecologically meaningful results to inform onsite and range wide management of caribou.

Recommendation Themes + Recipients Overview

The Agency provides recommendations every year to relevant parties (Dominion Diamond Mines ULC, the Wek’èezhı̀i Land and Water Board, and applicable federal and territorial government departments) based on the review of information and comments from the past 12 months. Figure 1 provides an overview of the general themes and topics our annual recommendations have covered over the past 21 years.

RECIPIENTS # OF RECOMMENDATIONS Themes and Frequency Closure and reclamation

Dominion Diamond Ekati ULC (proponent) 102 25 Aquatic Environmental monitoring Government (GNWT, Government of Nunavut, Government of Canada) 21 management, and fisheries planning and reporting 27 Water Boards (NWT Water Board, Mackenzie Valley Land and Water Board, 12 and Wek'eezhìi Land and Water Board) Traditional 27 Waste rock Knowledge management, Environmental Agreement signatories 3 and Aboriginal seepage and involvement characterization Aboriginal Society Members and Dominion Diamond 3 20 17 Wildlife Regional Aboriginal Society Members 1 monitoring monitoring and cumulative effects All Agency Society Members 1 Air quality 16 monitoring 7 Total 134 2

Figure 1: Agency Recommendation Themes 1997-2018

12 CURRENT CONDITIONS & EXPLORATION

HIGHLIGHTS The Jay Project was postponed by Dominion pending completion of project mining optimization studies.

Exploration continued on specific drill targets on the Ekati mine claim block, as well as long term programs at Glowworm Lake and near Courageous Lake.

Pigeon Pit → MINE UPDATE

2019

PANDA OP INFRASTRUCTURE (roads, dams, etc) PANDA UG MINE DEVELOPMENT (waste mining) KOALA NORTH OP MINE PRODUCTION (kimberlite and waste mining) CURRENT CONDITIONS & EXPLORATION& CONDITIONS CURRENT KOALA NORTH TEST UG

KOALA NORTH UG OP = OPEN PIT UG = UNDER GROUND KOALA OP

KOALA UG

BEARTOOTH OP

FOX OP

MISERY OP

MISERY PUSHBACK

MISERY UG

LYNX OP

PIGEON OP

SABLE OP

JAY OP

1997 2002 2007 2012 2017 2022 2027 2032 2037 2042

Figure 2: The Ekati Diamond Mine: Life of Mine Plan

14 JAY PROJECT Misery Underground (UG) EXPLORATION FOR NEW ORE Dominion applied for a water license amendment for Jay Pipe is located on the west side of Lac du underground mining of Misery pit in August 2017. The BODIES Sauvage, about 6 km northeast of Misery Pit. NWT Minister of Environment and Natural Resources Ongoing mineral exploration by Dominion during Mining of Jay pipe would require construction of a approved the amendment on August 24, 2018. 2018/19 included drilling at various locations on the horseshoe shaped dike in Lac du Sauvage to isolate main the Ekati mine claim blocks. The 2018 program the ore body from the lake, pumping of water Mining of Misery pit ended in March 2018. included 6 sites near Main Camp, and 10 large within the diked area to Lac du Sauvage and Misery Development of the underground mine diameter holes in Horseshoe Lake and Point Lake pit, and removal of overburden. development started in July 2018 and is ongoing. Mining of ore at Misery UG is expected to start in located near Misery pit. A further 48 holes were In May 2018, Dominion postponed all work related to early 2020. drilled at various main claims block locations. the Jay Project, pending consideration of the results Longer term exploration programs were also EXPLORATION& CONDITIONS CURRENT of the mining optimization study of the project. active further afield in the Glowworm Lake area If development does proceed, the Jay Project is (65 km east of the Ekati mine main camp) and near expected to extend the current end of mine life at Courageous Lake. The 2017-22 Glowworm Lake the Ekati mine by approximately 10 years. program has been permitted for up to 200 drill locations, with 25 bulk ore samples per year. The Courageous Lake 5 year drill program was extended to 2020. Summer 2018 drilling included 31 large diameter and 7 diamond drill holes. Dominion intends to conduct further drilling in summer 2019 at various locations.

AGENCY ASSESSMENT

The Agency believes that development of kimberlite pipes in new areas of exploration represents a significant geographical expansion of mine operations. This year’s exploration activities included drilling within the Ekati mine claim block as well as sites further east of the Ekati mine (Glowworm and Courageous Lakes). The Agency continues to monitor exploration activities in order to track potential future developments.

Photo courtesy of Dominion Diamond Mines ULC

15 AGENCY ACTIVITIES

HIGHLIGHTS The Agency participated in 18 Wek'èezhìi Land and Water Board review processes over the last year.

Community Information Sessions were held in five NWT and Nunavut communities to discuss the proposed Ekati Interim Closure and Reclamation Plan V 3.0.

Conducted our annual site visit to the Ekati mine in September of 2018.

← Safety demonstration 2018 Ekati mine site visit ITIES V ACTIVITIES 2018-19

The Agency held three board meetings in Yellowknife during the 2018-19 fiscal year and our

Annual General Meeting in December of 2018. Due AGENCY ACTI to lack of quorum at the Annual General Meeting, a Special Meeting of Society Members was held on December 13, 2018 to complete official business and consider formal motions, including retaining the services of a financial auditor.

In conjunction with our 101st Board Meeting, the Agency conducted our annual site visit to the Ekati mine on September 18, 2018. The Agency needed to prioritize its time on site due to a one-day site visit. Observations included the Sable Road and pit Agency site visit to the Ekati mine, September 2018. (highlighting constructed caribou crossings on the road), the waste facility (where we saw how the site document, and for Society Members to effectively composts its organic waste and sorts recycling), participate in the formal review process and TECHNICAL REVIEW AND the Long Lake Containment Facility, including January 2019 Technical Workshop the Agency INPUT reclamation plots, and the Panda Diversion Channel. created a summary presentation and outreach materials to take to communities. Agency Staff The Agency participated in 18 reviews over the last The Agency was invited by the community of Łutsël and selected Directors visited five communities year. K'é to participate in a community career fair in during January: Whatì, Behchokǫ̀, Dettah, Łutsël June of 2018. Beyond interacting with children and Waste Rock and Ore Management Plan Versions K'é, and Kugluktuk. The goal was not only to adults alike at the career fair, the visit enabled 8.0, 9.0 and 10.0 – The Agency had a number of inform community members of what was in Director Tim Byers to update members of Łutsël K'é concerns regarding proposed updates to the the proposed ICRP v3.0, but also to encourage Dene First Nation’s (LKDFN) Lands and Environment Waste Rock and Ore Management Plans (WROMPs). participation in the commenting period Committee. A highlight of this community visit Spanning all updated versions, the Agency’s through the WLWB. More generally, it is always included presenting the translated Agency video concerns involved seepage quality, risk mitigation beneficial for the Agency to bring information to community members for the first time in the for potentially acid generating waste rock, the directly to Society Member communities, as it Chipewyan language. specific method used by Dominion to determine helps to strengthen relationships and increase the acid generating potential of waste rock, communication. A highlight of the Agency’s activities this year including diabase, and using diabase from Lynx pit was holding public Information Sessions in For more information on the Agency’s community as a construction material. For more information five Society Member communities to provide engagement, see the Traditional Knowledge and on WROMPs, see the Waste Rock Management participants with an update on Dominion Engagement chapter in this report. chapter in this report. Diamond Mines ULC’s (Dominion) closure and reclamation planning, specifically the proposed Interim Closure and Reclamation Plan, Version 3.0 – update of the Interim Closure and Reclamation The Agency made a substantial submission to the Plan (ICRP). The ICRP is a complex and long WLWB on the proposed updated Interim Closure

17 ities v and Reclamation Plan, Version 3.0 (ICRP V 3.0). • Dust Suppressant Pilot Study Report (September 14, continues to be added to and tailored based on Overall, we concluded the document should not be 2018) community and public interests. approved in its current form as it lacks sufficient • Response Framework Version 3.0 (October 4, 2018) detail in many important areas. These areas include Social Media – The Agency’s presence on social

gency A cti numerical closure criteria for water, hydrocarbon • Wastewater and Processed Kimberlite media continues to see more interaction with A contaminated soil and Waste Rock Storage Area Management Plan V 8.0 (November 29, 2018) followers. Facebook follower numbers are (WRSA) seepage, closure designs for wildlife, water increasing, and interaction with followers is • Panda & Koala Deposition Study (November 29, 2018) quality predictions, open pit littoral zones and WRSA becoming more consistent. Expanding to increase thermal and water quality monitoring. • Ekati - Cujo Lake Outflow Special Study Design - V the Agency’s presence on Twitter is the next step. 1.0 (March 26, 2019) The Agency’s full submission can be viewed on The Ekati mine Monitor – The Agency published the WLWB Online Review System at: https://bit. AGENCY COMMUNICATIONS one issue of our newsletter this year. The design ly/2UH44pq. To read more about the Agency’s work has been revamped to have a sleeker look, for an on this topic, see the Closure and Reclamation Website – The Agency’s website continues to easier and more enjoyable read. The format is also chapter in this report. improve as resources are added and design being converted to a digital format, so those who changes are made. The most notable update sign up on the Agency’s website will receive the Studies and Reports – The Agency provided was reconfiguring how our listed information newsletter in their inbox. It should be noted that comments on numerous other reports and proposed is viewed. Information is now easily sortable in the distribution list for the Ekati mine Monitor was plans at the Ekati mine in 2018-19 including: accordion-style drop down menus, making each updated, and certain high schools in the north page more accessible. have requested more copies of the twice-annual • 2017 Wildlife Effects Monitoring Program Report newsletter for science classes and reading activities. (August 1, 2018) The Ekati mine Timeline – A central feature of the IEMA website, the Ekati mine Timeline has been • 2017 Aquatic Effects Monitoring Program Report overhauled and redesigned with a more pleasing (September 11, 2018) look and a more navigable format. The Timeline

Date and Location Purpose Main Issues

April 24-26, 2018 Slave Geological Province Regional Hosted by GNWT’s ENR – Wildlife Division, Marc Casas, Kim Poole, and Ron Allen attended Yellowknife, NT Wildlife Monitoring Workshop this workshop. The workshop is part of a series of on-going workshops held annually or bi- annually since 2009 to discuss and set objectives for wildlife monitoring conducted primarily by the diamond mines and government. The focus is typically on sharing results of monitoring activities, harmonizing monitoring objectives and the development of monitoring protocols.

May 1-3, 2018 Annual Report Writing Session Directors and staff gathered to review assigned chapters and discuss the content of our Yellowknife, NT 2018-2019 Annual Report.

September 18, 2018 Site Visit to Ekati Annual site visit to the mine site. Itinerary had to be prioritized, as the visit was reduced to a Ekati Diamond Mine day trip. See “Activities 2018-2019” section for more details.

September 19-20, 2018 Agency Board Meeting Following our annual Ekati site visit, the Agency held its 101st board meeting. Yellowknife, NT

table continued on next page

18 Yellowknife, NT Yellowknife, 2019 5-6, March NT Yellowknife, 2019 15, February NT Łutselk’e, 2019 5, February NU Kugluktuk, 2019 28, January NT Yellowknife, 2019 22-23, January Behchokǫ̀, NT 2019 14, January NT Dettah, 10, 2019 January NT Yellowknife, 10, 2019 January Whatì, NT 2019 8, January conference call & NT Yellowknife, December 2018 13, NT Yellowknife, December 2018 5, NT Yellowknife, 2018 December 4-5, Location and Date Agency Board Meeting Board Agency Reps Tlicho with Meeting Requested Session Info ICRP Łutselk’e Session Info ICRP Kugluktuk –V Plan Reclamation and Closure Interim Ekati Session Info ICRP Behchokǫ̀ Session Info ICRP Dettah NSMA with Discussion ICRP Informal Session Info ICRP Whatì Members Society of Meeting Special Annual Meeting General Meeting Board Agency Purpose ersion 3.0 Technical Workshop Technical 3.0 ersion others as parties prepared to submit comments and responses on Version 3.0 of the ICRP. the of 3.0 Version on responses and comments submit to prepared parties as others of perspectives the and issues the of understanding party’s each increase would discussion collaborative and an open that hope WLWB’s the through designed was workshop This report writing session. session. writing report annual upcoming the discussed board The in Yellowknife. held was meeting board 103rd The Sessions Info Community ICRP the up from Follow in Łutselk’e. Hall Community the at session the attended people 30 NU. in Kugluktuk, Hall Community the at session the joined people 23 . in Behchokǫ̀ Hall Community the at attendees 33 with ICRP the discussed IEMA in Dettah. Centre Drygeese Chief at held session the attended people 15 ICRP. the of 3.0 Version discuss to staff IEMA with met Association Metis Slave North the with Analysts Regulatory in Whatì. Hall Community the at session the attended people 34 moved. and made motions –required met Quorum roles. executive in their acclaimed were Directors Members. Society of Meeting Special to –deferred votes or motions for met not Quorum meeting. board 102nd its held Agency the Meeting, General Annual the up to Leading Issues Main Table 1. Main Agency Activities 2018-19 Activities Agency Main Table 1. 19 Agency Activities WILDLIFE EFFECTS HIGHLIGHTS 3,347 caribou were observed at the mine in 2018, which included caribou from the Beverly/Ahiak and Bathurst herds during the winter.

Under general wildlife management actions and the Caribou Road Mitigation Plan, roads were closed and blasting deferred or cancelled on 20 occasions to reduce exposure to caribou.

Dominion should intensify efforts to integrate and analyze the monitoring used to link specific thresholds to trigger a management activity (intensified mitigation) and subsequent monitoring to determine effectiveness.

← Caribou, photo courtesy of Dominion Diamond Mines ULC ACTIVITIES 2018-19 ffects E

Dominion’s Wildlife Effects Monitoring Program attractants or misdirected wastes (e.g., food, food (WEMP) documents wildlife presence and wildlife packaging, and oil-related waste) and the percent

management responses at the Ekati mine. There of surveys with wildlife sightings in 2018 are among W ildlife is less detailed reporting on the effectiveness the lowest recorded. Over one million kg of solid WILDLIFE of wildlife mitigation. The 2018 WEMP is the 21st waste was shipped off site and 200,000 kg of annual report and focuses on wildlife habitat biodegradable material was composted, the latter and caribou, grizzly bears, wolves, wolverines, saving nearly 300,000 l of diesel fuel. foxes, raptors and breeding birds. The report has detailed compilations of incident reports and Wildlife Incidents and Mortalities EFFECTS road surveys, caribou behavioural surveys and pit Wildlife incidents involve direct interaction nesting surveys. However, the camera sightings between wildlife and humans or infrastructure. will not be reported until 2020 and the use of the There were 25 wildlife incidents reported at the caribou collars is limited. Monitoring the operation Ekati mine over the last year, including 17 involving of the 69 kV Misery Road power line is in its second grizzly bears, higher than numbers reported from year. Intensive efforts – daily road surveys – were 2011 to 2017 (1-9 annually). Ten of the incidents undertaken as part of general monitoring and for involving grizzly bears required use of deterrents. the Caribou Road Management Plan (CRMP) and led Reports of caribou near mine infrastructure to road closures to traffic and delays in blasting. resulted in increased alert levels and on 14 occasions, work stoppages or temporary road The Ekati Mine Footprint closures. On six occasions, blasting at pits was An additional 183 ha of surface area of habitat postponed or cancelled due to the presence of were disturbed at the Ekati mine due to mine caribou within 1 km. The number of vehicle-related development and operations during the 2018 wildlife mortalities reported during 2018 was reporting period, including development of the lower than recent years (three Arctic hare and one Lynx, Pigeon and Sable pits, and transitioning ptarmigan). No caribou mortalities as a result of of Misery Pit to Misery Underground. The total mine activities have occurred in recent years. amount of direct habitat loss caused by the project footprint since 1997 is now 3,819 ha (38 km2). As of 2018, 141 km of roads have been constructed.

Waste Management Dominion continues its efforts to improve waste management practices and reduce attractants at landfills, to reduce wildlife incidents, and to deter wildlife from areas of danger (e.g., airstrip, high traffic areas, active pits). Intensified efforts to educate employees about the need for effective

waste management disposal practices at the mine Grizzly, photo courtesy of Dominion Diamond Mines ULC site has worked as overall occurrence of wildlife

21 515000 520000 525000 530000 535000 540000 !(!(

Sable Road !( !( ffects !(!(!( E !( !( 7195000 !(!(!( 7195000 Sable Pipe ± Development !( (Ongoing) !( Osprey !( !( !( Lake !( !( !( !( W ildlife !(!(!( !( Eagle !( !( !(!( Lake !( !(!( !( 7190000 !( !( 7190000 !( Ursula Lake !(!(!( !( !(!( Ursula Exeter !(!(!(!(!( Lake !(!(!(!(!( !( !( Big !( Lake !(!( Pond !( !( !( !(!( !(!( !( !(!(!( (!!( !( !( !(!( !( !(!( !( !( !( 7185000 !( !( 7185000 !(!( !( !( !( !( !(!(!( !( !( !(!(!( !( !( (! !( !( !( !( !(!(!(!( !( !(!(!( !( !( !( !(!( !( !(!( Falcon Lake !( !( !( !( !(!( !( !( !( !( !( !( !( !( !(!(!( !(!( !(

7180000 !( !( !( 7180000 !( !(!(!( (! !( !(!( !( !(!(!( !(!( !( !( !( (!!(!( !( !(!( !( !( !( !(!(!( !(!( !( !( Main !( !( !( Vulture !( Camp !( !( !(!( !( !( Lake !(!( !( !( !( 1:100,000 !(!(!( !( !( !( 7175000 !(!( !( 7175000 !( !( !(!( !( !(

!( !( !(!( !( !( !( !( !(M !( 7170000 is 7170000 er Jay Pipe Fox !(y R Development !( oa Pit d (Ongoing) !(

!( !( !( 7165000 !( Misery !(!( 7165000 Camp !( !(!( (!!( !(!( !( !(!(!( !( !(!( !(!( Number Observed* !(!( !( !( !( 1 - 5 !( !( !( 6-50 !( !( !(

7160000 !( 7160000 51-100 !(!( (! 100-200 Lynx Pit Misery Pit (! >200

Project Footprint

7155000 Future Development 7155000 Lac de Gras 1:210,000 0 2.5 5

Kilometres *Service Locations Layer are Credits: estimated Date: March 21, 2019

7150000 Projection: NAD 1983 UTM Zone 12N Contains information licensed under the Open Government Licence – Canada. 7150000

515000 520000 525000 530000 535000 540000 Figure 5.3-1: Incidental Caribou Observations at the Ekati Diamond Mine, 2018 Figure 3. Incidental caribou observations at the Ekati Diamond Mine, 2018 Photo: courtesy of Dominion Diamond Mines ULC www.erm.com Project No.: 0492200-0003 Client: DOMINION DIAMOND MINES ULC GIS # EKA-23-356b

22 presented for light vehicles (mainly pickup trucks). trucks). (mainly pickup vehicles light for presented were data no but medium), 3,300 heavy, (900 roads Sable and vehicles) medium by trips 3,200 and vehicles heavy by trips 23,000 (approx. Misery for 2018 for presented were data volume traffic Road mine”. the to proximity inclose areas for tolerance “some showed caribou that concluding inDominion resulting Diavik at infrastructure to close conducted surveys 55 with compared were results These running). feeding, bedding, (e.g., behaviour in different engaged is group or animal an time of proportion the on information obtain to in2018 infrastructure mine of km 1.5 within conducted were level) group the at behaviour (essentially surveys 19 scan and individuals) by used behaviours of types the (to quantify surveys focal behavioural Fifteen area. Misery inthe number asmaller with Road, Sable the along observed were caribou the of most trends, past with Consistent distribution. past with compared 2017-18 occurrences 2018-19, and unusual of winters during mine Ekati the at present were Beverly/Ahiak herds and Bathurst the both from caribou that indicated also GNWT-ENR from data Collar winter. during occurring remainder the and migration spring during occurring half with days, separate 102 on reports incidental ground-based 205 during recorded were caribou 3,347 In 2018, monitoring. camera wildlife and surveys, road dedicated (LLCF) monitoring, Facility Containment Lake Long surveys, behaviour observations, caribou (GNWT-ENR), incidental Resources Natural and –Environment Territories Northwest the of Government by collected cows collared satellite from distribution on information some included 2018 for activities monitoring Caribou Monitoring Caribou noise, dust, soil pH and vegetation cover. vegetation and pH soil dust, noise, activities, mining of visibility examining studies on-going Canada’s Resources Natural for support ended Dominion In 2018 survey. ground calving 2018 the for support in-kind and collars caribou Bathurst for support financial supplied Dominion occurred. yet not has research Actual influence. of zone caribou the of drivers the studying for program research based Knowledge a Traditional develop to communities with discussions continue to 2018 inSeptember aworkshop held Dominion inreporting. delay the for reasons as cited were data” camera inprocessing delays “logistical and rates detection low Relatively 2020. in report acamera produce next will they states Dominion now and in2018, or 2017 from presented were no comprehensive analyses photographs, the process to required time the to due but included are in2018 Misery/Jay near located cameras from results preliminary Afew Gras. de Lac and Sauvage du Lac between Narrows the at as well as roads, Jay and Sable Misery, along in2018 deployed were cameras motion-triggered infrared Eighty-nine roads. to inparticular and infrastructure mine to respond caribou how understand better to cameras motion-triggered uses in2011 Dominion by initiated Study Monitoring Camera Wildlife The main mine complex. complex. mine main camp/pit and area Misery the around occurrences higher with site mine the across occurred Observations time. over trend increasing but variable annually an follow and 2001 since sightings of number highest second the is This bears). more or two of (any group groups family of observations 37 including occasions, 145 on sighted individuals were210 There observations. incidental through mine Ekati the at monitored were bears Grizzly Monitoring Bear Grizzly – 7.5 bears/1,000 km – 7.5 bears/1,000 5.5 of range inthe densities recent with 2012, since population increasing possibly to astable suggest in2012-13. Results conducted programs snagging hair duplicating Diavik, with incollaboration in 2017 undertaken was study DNA snagging hair A regional (431) in 2018 fairly typical. (431) fairly in 2018 recorded birds individual of number (28) the and observed species of number the with year 16th the for conducted was Survey Bird Breeding American North The activities. mining with conflict minimize to pits active several from deterred successfully also was Nesting raptor]). [a functional raven and hawk, rough-legged falcon, (peregrine nestlings producing these of several with in2018, pits the of inthree occurred nesting raptor Successful in2018. infrastructure mine near occurred individual, same the likely sightings, moose incidental Eight 2016-18. during rabies of cases suspected no were There foxes. Arctic were project the of decade first the during observed foxes most while foxes, red were species to identified foxes of 96% about in2018 Interestingly, average. than lower alittle sighted, foxes 146 were there 2018, In rabies. of transmission of risk the and activity human to attraction potential of because concern ongoing an is mine Ekati at occurrence Fox average. long-term the to similar in2018, occurred wolverines of sightings incidental Twenty-three area. pit camp/ Misery inthe concentration higher slightly a with site mine the throughout evenly relatively distributed were observations summer. Wolf late in 5occasions on observed were pups with packs wolf however in2018, area study Ekati in the activity denning wolf known of monitoring no was There time. over trend increasing an following also occasions, 79 on sighted were wolves 139 In 2018, WildlifeOther 2 . 23 Wildlife Effects ffects AGENCY ASSESSMENT E

The 2018 WEMP is well-produced with detailed sightings reflect caribou distribution relative to the Dominion refers to the ‘potential’ zone of influence reporting on waste management and wildlife distribution of the sampling effort. Although the (ZOI) and has shifted from funding ZOI research to

W ildlife incidents. Tables and figures are notable for their report comments on the difficulty of using GNWT’s determining the factors causing the ZOI. In terms of clarity in displaying trends since 2001 (although collar maps to trigger intensified monitoring and practical monitoring, despite the change in caribou there is no reference to pre-2001 information mitigation at site, there is no explanation how this abundance and distribution, Dominion did not including baseline). A separate report on the will be resolved in future years. provide updates about the ZOI (last surveyed and grizzly bear DNA population assessment was estimated in 2012) by undertaking aerial surveys. comprehensive and well done. However, there An example of not integrating datasets is that are disappointments. The camera report has incidental sightings documented more caribou The report has a useful summary attributing been delayed two years and details of caribou groups (13) within the Long Lake Containment the large increase in management to improved movements are missing. Road traffic data are Facility (LLCF) compared to only two groups documentation and reporting but also more grizzly incomplete, are not provided temporally (daily), reported from the road surveys during LLCF bear management actions and increased caribou and are not compared to previous years. Road monitoring. The concern about caribou and their presence near roads in 2016 to 2018. Caribou surveys were conducted daily, but no data were behaviour at the LLCF is that with the change management actions doubled between 2017 and presented (except presumably observations from summer to winter distribution, the nature of 2018 to 183. However, details are still lacking. For were included in incidental observations). the caribou’s use of the LLCF may have changed. example, the summary of blast postponement Adaptive management is mentioned but remains Dominion should indicate that instead of caribou or cancellation due to caribou describes the six incompletely reported. The reporting does not potentially using the LLCF for insect relief, in winter incidences when caribou were within 1 km of a link specific thresholds to trigger a management caribou, especially cows, will seek out sources of proposed blast and the duration of the delay, activity and subsequent follow-up monitoring to sodium. The kimberlite from Fox pit introduced but not how often caribou were sighted outside the determine effectiveness. No comparisons against high sodium levels (DDEC 2016) to the LLCF. 1 km threshold, how the caribou behaved, and why impact predictions were provided, although these the blast suspension times varied so widely. The report concludes that despite the increase in have been promised for the next Environmental caribou around the Ekati mine in winter, the CRMP The report does not acknowledge the on-going Impact Report reporting period. monitoring and mitigation protocols were working. lack of statistical power in using the Behavioural The 2018 WEMP substantiates the change in But the report also states that when caribou on Surveys (Activity Budgets and Response to caribou distribution which includes caribou from the roads are hard to see during severe weather, Stressors) given that sample size in 2018 was so the Beverly/Ahiak herd using the Ekati site and a the roads are also closed to non-emergency traffic limited. This raises the question of continuing shift in the Bathurst herd towards winter, spring and so there is no threat to the caribou. Dominion monitoring which is unlikely to be powerful enough migration and fall presence at the Ekati mine. The states that further testing of infrared imagery will to detect effect size. A consequence of weak report relies on 50% or 95% kernel maps to reveal be undertaken to detect caribou during blizzards. detection is the unsupported generalities such as the shift in distribution but does not measure The 2018 report could have included the frequency caribou “tolerating” disturbance. Tolerance is a trends in distribution, such as use of centroids or and duration of blizzard-caused road closures specific type of response and should not be used moving windows. Additionally, individual trajectories relative to closures triggered by caribou presence, without statistical rigor. of movements are not provided nor is there an and the implications of Dominion’s adaptation to assessment of how geofence collars improve the closures through stock-pile management. This the resolution of movement thresholds. This is a comment highlights the weakness of the 2018 report missed opportunity to analyze how the incidental in integrating among different information sets.

24 AQUATIC EFFECTS

HIGHLIGHTS The Land and Water Boards of the Mackenzie Valley and the Government of the Northwest Territories (GNWT) released Guidelines for Aquatic Effects Monitoring Programs (AEMP).

Dominion’s Water License was amended to increase potassium effluent quality criteria.

Selenium and mercury in harvestable fish have reached levels of concern in lakes downstream of the mine.

Culvert and Stream, photo courtesy of Dominion Diamond Mines ULC → A third point of discharge began with the release of density of the total organisms making up the ffects BACKGROUND

E wastewater from the new Two-Rock Sedimentation community increasing. An increase in chlorophyll Each year Dominion Diamond Mines ULC Pond at Sable on August 14, 2018, the first potential a in Cujo Lake is linked by the company to an (Dominion) carries out a number of programs and water quality impact in the Horseshoe watershed. A increase in total phosphorus in the water, likely

quatic total of 339,154 m3 of minewater was discharged to from King Pond. A studies to determine if changes in the aquatic environment downstream of its operations are Horseshoe Lake during August and September. Fish occurring as a result of mining activities. There Aquatic Effects Monitoring Program are five watersheds which may be affected by Results from the 6-year large body fish study the mining operation (Koala-Lac de Gras, King- The Land and Water Boards of the Mackenzie was included as part of the 2018 AEMP report. Cujo, Desperation-Carrie Pond, Pigeon-Fay-Upper Valley and the GNWT released new Guidelines for The results suggest there are emerging issues Exeter and Horseshoe). Lakes and streams in these Aquatic Effects Monitoring Programs in March related to levels of mercury and selenium in fish systems, as well as background sites, are sampled 2019. These guidelines set out the role of the AEMP downstream of the mine. each year under the Aquatic Effects Monitoring in water monitoring and detail expectations for Mercury: In Kodiak Lake trout muscle, mean Program (AEMP), which is a requirement specified program design, implementation, and adaptive mercury levels have exceeded Health Canada in Dominion’s Water License. Using information management. The new guidelines must be guideline for human consumption. Seven fish of collected through the AEMP, any changing considered when the AEMP is re-evaluated in 2019. 20 sampled exceeded the guideline in Kodiak trends in water and sediment quality, benthic Of particular significance, the guidelines advise Lake, up from 1 fish in 30 sampled between 2002 macroinvertebrate communities, phytoplankton that all three tiers of response (Low, Medium and 2012 (a 30 yr-old in 2007). This represents and zooplankton, as well as fish populations and and High action levels) in reaction to benchmark the first time that an impacted lake (Kodiak) has health, can be identified. exceedances should be developed when Response Frameworks are first established, rather than been reported to have trout mean mercury levels higher action levels only being developed (0.518 mg/kg) above Health Canada guideline MAJOR ACTIVITIES 2018-19 sometime after a Low action level is exceeded. for human consumption (0.500 mg/kg). The high mercury body burdens were not confined to older Fine Processed kimberlite (FPK), treated sewage Water Quality trout as is usually the case, since mercury levels and surface sump water continued to be discharged The Agency reviews the annual AEMP data each accumulate in the body overtime. Five younger into the Long Lake Containment Facility (LLCF) in year for any changes of note in water quality. fish aged 6 to 8 years old were found to be above 2018. Once the slurry has settled out and separated, The results are summarized in Table 2. Overall, Health Canada guidelines. In lakes with non-toxic the process water is pumped back to Cell C of the concentrations of all water quality variables remain levels of mercury, juvenile and young adult fish LLCF. Between June and October 2018, 1,463,000 m3 elevated above baseline levels. However, relative normally haven’t lived long enough to accumulate of decanted surface minewater was pumped from to the three previous years, no significant increases the amount of mercury necessary to push their Beartooth Pit to Cell C. The process plant recycled in parameters were evident in 2018. mercury levels above the levels considered 4,665,000 m3 of water from Cell D of the LLCF. No hazardous to human health. In Ekati lakes, water was released from the LLCF in 2018. Plankton historically this has been seen in lake trout of a As in previous years, changes to plankton minimum 12 years old. A second source of effluent discharge to the community composition in lakes downstream of receiving environment is from the Misery and Lynx the LLCF have been identified that are thought to The mean concentration and number of trout sites into the King-Cujo watershed. A total of 145,776 be caused by the mine, with zooplankton changes with above-guideline mercury levels in small 3 m of water from the King Pond Settling Facility in Leslie, Moose and Nema lakes stabilizing. plugs of muscle taken from live fish (non-lethal (KPSF) was pumped into Cujo Lake in July 2018. Taxonomic change is also occurring in the sampling) might even be higher than reported, if phytoplankton community of Kodiak Lake, with muscle fillets had been sampled. An Ekati mine

26 investigation (RESCAN, 2012) compared trout ffects

muscle fillet samples to tissue plugs and showed E that Kodiak Lake trout muscle fillets had 3 times higher mercury concentrations than plugs from the same fish. The source of mercury loading in Kodiak quatic A Lake trout is unclear.

Selenium: In slimy sculpin, mean whole-body selenium (9.63 mg/kg dry weight) exceeded the USEPA guideline for fish health (8.5 mg/kg ) in Leslie Lake (20 fish out of 29, up from 2 out of 26 fish in 2015). This represents the first time that the majority of sampled sculpin (69%) in an AEMP lake had selenium levels above the guideline. It Long Lake Containment Facility discharge point in Cell E is noteworthy that the 2017 AEMP Evaluation of Effects Report found that selenium concentrations in Leslie Lake sediment had reached a level at Although selenium levels do not currently appear Parasites: Data in the 2018 AEMP indicates that which “there may be a potential for adverse effects to be of concern in relation to whitefish tissue there was a decreasing rate of internal parasite to aquatic life”. consumption, they should continue to be looked infestation in whitefish and slimy sculpin in Leslie at closely as it may have negative effects on fish and Moose lakes. This conclusion is complicated In Leslie Lake (downstream of LLCF), one whitefish reproductive health. because the 2007 and 2012 parasite results were muscle sample exceeded the USEPA guideline for evaluated based on a single species of tapeworm selenium (11.3 mg/kg dry weight) for fish health In Cujo Lake, selenium concentrations in whitefish while the 2018 results are reported for all internal and 13 of 20 whitefish livers were above BC Ministry livers exceeded the Fish Response Plan’s Low parasites regardless of species. Meanwhile, of Environment human health guidelines for fish Action Level in 2018. Overall, selenium in whitefish parasite infestation in Cujo Lake whitefish was eaters (14.5 mg/kg for moderate fish consumption livers show an increasing trend through time reduced from previous years to no monitored fish — 0.11 kg/day). Selenium in whitefish was higher in impacted lakes (Cujo and Koala watershed being infected, the same as reference lakes. in livers than muscle. Although there is no direct lakes), while it has been decreasing in whitefish of consumption of whitefish livers, burbot livers are reference lakes. sometimes consumed by harvesters. The Agency is concerned that Burbot, which are not monitored EROD induction: EROD (ethoxyresorufin-o- under the AEMP, could have elevated levels of deethylase) is an enzyme in fish that is sensitive selenium similar to whitefish in effected lakes to certain contaminants. EROD activity is downstream of the LLCF. Also, liver selenium may induced by exposure to either hydrocarbons or affect the most sensitive fish tissue, the ovaries. organochlorines such as dioxins, furans and PCBs. Transport and uptake of a protein enriched with Levels of EROD activity in both round whitefish and selenium from the liver to ovaries determines the slimy sculpin are substantially lower than levels ultimate selenium dose received by eggs, an excess reported in both 2012 (whitefish & sculpin) and 2015 of which produces larval deformities. According to (sculpin). Previous monitoring years attributed this the USEPA, excess selenium in eggs/ovaries should EROD activity in fish to hydrocarbon exposure. be considered more adverse than that in muscle.

27 ffects AQUATIC RESPONSE FRAMEWORK E The Aquatic Response Framework is an early Actions taken by Dominion to address these ice-covered season. A revised Response Plan v2.1 warning mechanism to alert Dominion and exceedances: includes conducting potassium toxicity studies quatic

A that will inform response planning. regulators to changes in the environment • A revised Dissolved Oxygen Response Plan (RP) downstream of the Ekati mine that reach levels was approved in April 2018, activated by below- • The WLWB did not approve Dominion’s updated that require attention before they reach benchmark Canadian Council of Ministers of Environment Fish RP v2.1 submitted in June 2018. The Board levels that can adversely impact aquatic life. (CCME) levels under-ice in Cujo Lake. Dominion determined that a revised Plan must: The three tiers of action levels for water quality implemented mitigation measures (snow clearing • Propose MAL and HAL for all LAL exceedances; variables other than dissolved oxygen are off lake ice and water column aeration) which Low (LAL - when the variable exceeds 50% of a appear to be effective but their ultimate success • Lay out the possible options for MAL benchmark), Medium (MAL - variable exceeds 70% can’t as yet be quantified using available data. exceedances; of a benchmark) and High (HAL – exceeds 100% of a The Agency looks forward to seeing these results benchmark). • Discuss recommended changes to the current covered in the 2019 AEMP Re-Evaluation report, monitored variables for organochlorines, as per Dominion’s commitment. The following water quality variables exceeded Low including dioxin and furan, and Action Levels (or higher levels, where stated): • An updated Phosphate RP v1.3 was submitted • Specific to selenium in fish: • Dissolved Oxygen under-ice in Cujo Lake (less in August 2018. It includes an analysis of ࢖࢖ Set HAL when either the USEPA guideline than benchmark and at least 10% less than any the probability of exceeding 50% and 100% for protection of aquatic life is met (H1) baseline year); benchmark thresholds as well as clarification on or mean fish tissue concentration in the the rationale for the MAL. Dominion previously portion of fish eaten by people (i.e., muscle • Phosphorus in open water in Cujo Lake; determined the potential for ecological effects and/or eggs) exceeds a site-specific human • Chloride under-ice in Leslie (MAL) and Moose from exceeding phosphorus benchmarks is consumption guideline (H2); lakes; minimal because LAL exceedance occurred during under-ice conditions when stimulation of ࢖࢖ Set MAL to 50% of USEPA guideline. • Potassium under-ice (HAL) and in open water phytoplankton growth is unlikely and because in Leslie Lake; under-ice in Moose Lake (MAL); excess phosphorus is not toxic to aquatic life. • Updates to the Fish Response Plan incorporating under-ice in Cujo. mercury in fish tissue will now also be required • A revised Chloride RP (Version 1.2) was submitted based on the 2018 LAL exceedance for mercury in in August 2018 to address the LAL and MAL Phytoplankton and zooplankton community whitefish. exceedances in Leslie and Moose lakes in 2017 composition in Leslie, Moose and Kodiak lakes and 2018. exceeded LAL for the third straight year. According to Dominion, the likely driver of this exceedance, • The Potassium HAL under-ice exceedance in macronutrients (nitrate, nitrate and phosphorus), Leslie Lake was mitigated by delaying discharge have stabilized or decreased and community from the LLCF during the 2018 open-water composition changes are not continuing to advance season, resulting in only the LAL being exceeded towards the MAL. Management of the problem in Leslie Lake during summer. As well, potassium through the Nitrogen RP therefore seems to be was measured more frequently under ice in functioning as intended and there is no need for a Leslie and Moose lakes during the 2018/2019 plankton RP revision.

28 MISSED SAMPLING EVENTS ffects E Surveillance Network Program (SNP) Sampling quatic

The SNP is a water quality monitoring program A established as part of the water licence to monitor sources of water pollution to ensure Effluent Quality Criteria (EQC) are being met. Some of the scheduled sample events planned for the Sable facility as part of the SNP were missed in 2018, including: • Discharge from Two Rock Sedimentation Pond (SNP 0008-Sa10) on July 31, August 7, 14 and 21;

• Chronic toxicity testing on the first week of discharge; and, Panda Diversion Channel • Two SNP samples in Horseshoe Lake (0008-Sa6 and 0008 Sa9) because of an earlier-than- Uranium has been measured at steadily increasing expected freeze up. concentrations in whitefish livers in Cujo Lake AEMP Sampling In a December 2018 WLWB directive, Dominion over years, a trend not seen in reference lakes. The missed sampling and toxicity testing were was directed to explain why some AEMP sampling This mirrors a steady increase in lakewater attributed by Dominion to slight differences in the events were missed in 2017 and 2018. The following concentrations over the same period, although not requirements of the Ekati water licence SNP for reasons were given by Dominion: unsafe working reaching levels known to adversely affect fish. King Sable and the Metal and Diamond Mining Effluent conditions, administrative errors or operational Pond effluent appears to be the source. Regulations (MDMER), which are regulations errors (operational errors were unexplained). under the Fisheries Act governing the deposit of In summary, the following contaminants exceeded substances harmful to aquatic life from metal and LAL based on a conclusion of mine-caused increase In 2017 Water quality and limnology measurements diamond mines. in fish tissue concentrations: in Pigeon-Fay and Upper Exeter Watershed were not taken in July (scheduling error) and in September Dominion’s proposed to minimize the likelihood of • Mercury - In round whitefish muscle (Kodiak, (sampling deferred to October-bad weather). In missing future sampling events by: synthesizing the Leslie and Moose lakes) and liver (Kodiak and 2018, Nema-Martine stream was not sampled in MDMER and SNP sampling programs at Two-Rock Moose lakes); in Cujo Lake round whitefish June (wildlife danger); Fay Bay and Upper Exeter Sedimentation Pond, which currently require many muscle and liver; Lake secchi depths and water samples were not of the same variables to be sampled at similar, taken in June (operational errors). The planned • Selenium - In trout muscle and round whitefish but not always synchronized times; improvements measures to eliminate future missing samples muscle and liver in Leslie and Moose lakes; in to the computerized sample scheduling system involve improvements to sample scheduling, field Cujo Lake round whitefish muscle and liver; including earlier scheduling of September sampling data sheets, and communication with field crews to avoid early freeze-up; and better communication on these changes, which will be in place for the • Uranium: In Cujo Lake round whitefish liver. with field crews on these changes. 2019 sampling program.

29 Horseshoe Watershed ffects E

HWL2

quatic

A ROSS HWL1 ULU LOGAN HHWL4 TWO ROCK

Koala Watershed & Pigeon Watershed OSPREY WATERSHED LOWER EXETER LAKE

UPPER EXETER PIGEON STREAM LAKE DIVERSION

VULT URE

CELL B GRIZZLY

CELL A

CELL C LONG LAKE PA NDA DIVERSION CONTAINMENT CHANNEL FACILITY KODIAK

CELL D CELL E LESLIE MOOSE

NEMA NERO

MARTINE

SLIPPER

LAC DE GRAS S3 S2

S4 LAC DU SAUVAGE S5

CHRISTINE S6

CUJO

King Kujo & Carrie Pond DESPERAT ION POND Figure 4. Ekati mine watershed map with flows and sampling sites Watershed MOSSING

MISERY PIT

LAC DE 30 GRAS This table is adapted from the AEMP report with additions resulting from the Agency’s review of the monitoring results. monitoring the of review Agency’s the from resulting additions with report AEMP the from adapted is table This Uranium Strontium Selenium Nickel Molybdenum Boron Barium Arsenic Antimony Total Carbon Organic Total Phosphate-P Nitrate Nitrite Total Ammonia Potassium Sulphate Chloride Total Dissolved Solids Hardness Alkalinity pH Parameters Monitored Parameters or open water season water open or benchmarkquality or CCME guideline during ice-covered water SSWQO, the exceeded mean observed indicates water season orbenchmark, CCME guideline during ice-covered or open quality water SSWQO, the exceeded 95% of bound upper time through changing not but elevated aconstant from different or lake/stream reference to comparison in time over increased watershed in lake receiving ultimate to source effluent from Flow ● ● u ¢ ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Long Lake Containment Facility Facility Containment Lake Long watershed in Koala elevated Variables « Leslie ¢ ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Leslie-Moose ● ● u ¢ ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● « Moose Table 2: Mining effects on water quality flowing through the Koala and King-Cujo Watersheds King-Cujo and Koala the through flowing quality Table water on 2: effects Mining ¢ ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Moose-Nero ¢ ¢ ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Nema ¢ ¢ ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Nema-Martine Lac de Gras de Lac ● ¢ ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● « Slipper ¢ ● ● ● ● ● ● ● ● ● ● ● ● ● ● Slipper- Lac de Gras ● ● ● ● ● ● ● ● ● ● ● « Lac de Gras (S2) u ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Cujo King Pond Pond King watershed King-Cujo Variables elevated in ¢ ¢ ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Cujo Outflow ¢ ¢ ● ● ● ● ● ● ● ● ● ● ● Christine- Lac du Savage

Lac du Sauvage du Lac

● ● Lac du Sauvage 31 Aquatic Effects Water License Amendment for Potassium Jay AEMP Design Plan and Aquatic The use of a sediment corer for sediment sampling ffects

E Dominion applied for an amendment to its Water Response Framework is now required by the WLWB in the water license, License EQC for potassium in July 2017. This was Dominion is required to develop an AEMP and as a corer provides for better definition through to address elevated concentrations of potassium Aquatic Response Framework (ARF) for the Jay sediment layers to identify contaminants in the quatic most recently deposited sediments. A sediment A in the LLCF and in discharge to lakes downstream project to address the newly effected watershed that would be difficult to maintain below license (Lac du Sauvage) and possible effects pathways corer was used in 2017 and 2018 in Jay baseline limits. Dominion explained that the elevated unique to the Jay Project relative to the rest of the sampling, which turned out to be more challenging concentrations were caused by processing of Ekati mine. The Agency provided the WLWB with to use compared to the previously-used Ekman Misery ore and requested an increase in the recommendations for the Jay AEMP Design Plan and dredge due to the nature of the sediments (mostly potassium EQC from 41 mg/L (maximum average) ARF, which included: dense clay). As a result, Dominion requested and 82 mg/L (maximum grab) to 64 and 103 mg/L, that the WLWB remove the requirement to use a • Questioning the adequacy of baseline data respectively. Following the review process the sediment corer. The request was not accepted by collection for harvestable fish species proposed WLWB recommended that the potassium EQC limit the WLWB but agreed with the Agency and other by Dominion, which does not include selenium in be revised to 53 mg/L (maximum average) and 103 reviewers that there are ways to modify corer tissue nor spatial trend analysis for slimy sculpin; mg/L (maximum grab) to optimize both protection sampling to make it feasible to use in conjunction of aquatic life and achievability. The amendment • Including the Tibbett-Contwoyto Winter Road with Ekman dredge sampling. into Jay AEMP monitoring plans for cumulative was approved by the GNWT Minister of Environment Two-Rock Outfall Design Report and Natural Resources in July 2018. impacts, as this road crosses over Lac du Sauvage in close proximity to Jay AEMP sample and Sable Diffuser Construction Plan The plan to deposit fine processed kimberlite stations; The design plan to build and set up a diffuser into the Panda-Koala containment area (refer to to safely discharge minewater from Two-Rock • Using a sediment corer rather than Ekman dredge the Waste Processed Kimberlite chapter for more Sedimentation Pond into Horseshoe Lake was to sample lake sediments; and information) should lead to reduced potassium approved by the WLWB in April 2018. A diffuser at concentrations in the LLCF and downstream • Include sediment quality ARF action levels the end of the effluent pipe, similar to the process compliance concerns, at least in the short- for selenium and any other parameters that used at Diavik, was determined to be the best term. The LLCF will no longer be receiving high indicate a connection between sediment quality means of maximizing dilution of the effluent out potassium process water directly from the process and fish tissue. of the pipe through the lake water column before plant. As the Panda-Koala containment area fills, flowing further into the lake. the discharge of process water to the LLCF will In its May 21, 2019 decision, the WLWB did not The Agency’s concerns centred on total suspended resume, which is predicted to increase potassium approve the proposed Jay AEMP Design Plan. We solids (TSS) levels in Horseshoe Lake generated levels in the LLCF. will follow up in 2020 on the next version of this by construction of the pipe and diffuser within design plan. the lake. As a result, the WLWB mandated that a physical barrier (such as silt curtains) was to be used while the construction work is done to keep TSS levels from rising above license limits in Horseshoe Lake.

32 AGENCY ASSESSMENT ffects E Mercury concentrations above safe consumption Environment human health guidelines, monitoring guideline levels in Kodiak Lake trout are a concern of selenium in fish (for round whitefish at least) quatic

for the Agency. This is likely to also be of concern should be expanded to measure selenium A to Aboriginal Society members who have a great concentrations in female ovarian tissue. While the stake in ensuring fish from lakes affected by the BCMOE guideline for safe fish consumption does Ekati mine are safe to eat once the mine closes. not specifically apply to whitefish livers that are The Agency believes it is important that Dominion not consumed by humans, the Agency believes investigate the source of mercury contamination it is could be relevant for fish species such as in the Kodiak Lake trout population. The concerns burbot, whose livers are consumed. Therefore, the have been discussed above and include mean Agency recommends that the AEMP investigate the concentrations in trout muscle that are above selenium levels of burbot liver and muscle tissues guidelines and increasingly found in fish as young to address this potential issue. as 6 years old. The Agency believes the company may be Dominion reports that selenium increases in underestimating zooplankton diversity and density sculpin and whitefish from Leslie Lake are an effect in AEMP lakes due to the mesh size of collecting from LLCF discharge. The source of the selenium nets being too large and allowing smaller species, contamination in Leslie Lake is likely the sediments especially rotifers, to pass through. While a finer since a steadily increasing temporal trend in 80 μm mesh plankton net will be used to collect sediment selenium concentrations has been zooplankton samples in Lac du Sauvage for the identified in all Koala watershed lakes including Jay AEMP when construction of the Jay Project is Leslie Lake (2017 AEMP) while water concentrations initiated, the 118 μm net continued to be used in remain low. A significant correlation between Ekati-wide AEMP sampling in 2018. The Agency fish tissue and sediment concentrations was believes that Dominion should switch to the finer determined in the 2012 AEMP. meshed net for all AEMP sampling.

Toxic levels of selenium adversely affect fish larval Dominion is to be commended in its updates to ARF development (Lemly 1993, Chapman et al. 2010)1. response plans water quality and plankton. They Now that selenium levels in some slimy sculpin are improving with each new version submitted to and lake whitefish in Leslie Lake are exceeding the the WLWB. USEPA guideline for fish health and BC Ministry of

Lemly, A.D. 1993. Teratogenic effects of selenium in natural populations of freshwater fish. Ecotoloxic. Environm. Safety. 26:181-204.;

Chapman, P., Adams, W.J, et al. 2010. Ecological Assessment of Selenium in the Aquatic Environment. 141 p. CRC Press. Pigeon Diversion Channel

33 TRADITIONAL KNOWLEDGE & ENGAGEMENT

HIGHLIGHTS Agency conducted Community Information Sessions on the Interim Closure and Reclamation Plan

←←The Dettah community Information Session on the Closure and Reclamation Plan ACTIVITIES 2018-19 ngagement Agency Community Information Sessions • The need to ensure water quality is maintained Use of Traditional Knowledge The Agency’s community engagement in 2018- downstream of the mine site over the long- in Operations E & 2019 focused primarily on providing communities term was consistently raised by communities, Dominion notes in its 2018 Annual Report with information on the draft Interim Closure and especially Kugluktuk which is located on the that it is committed to incorporating oral and Reclamation Plan Version 3.0 (ICRP). The ICRP had Coppermine River downstream of Lac de Gras. recorded TK into decision making at the Ekati not been revised since v2.4 was approved in 2011. mine. Dominion has developed a Traditional nowledge

• Communities do not like the landfills in the waste K Recognizing the importance of closure of the mine rock piles or anything left underground. They Knowledge Management Framework with input to Aboriginal Society Members, staff and Directors would like to see garbage, buildings, vehicles and from communities and the Traditional Knowledge of the Agency travelled to five communities other debris taken off site upon closure. Elder’s Group (TKEG). The Framework outlines how (Łutselk’e, Kugluktuk, Behchoko, Whati and Dettah) Dominion will collect, store, manage, and use TK in to host Community Information Sessions and • Concern was expressed over open pits being raditional

a respectful way and was approved by the TKEG. T present a summary of the ICRP and supporting filled with water and the potential effects of this outreach materials (maps and posters explaining on fish. Several participants suggested rock to be Traditional Knowledge Elders Group closure plans for various mine components). The put back in the pits. The Ekati TKEG was originally established to Agency’s goal was to inform community members provide TK input into the design and operations about what was being proposed by the company Community Engagement Plan (including closure) of the Jay Project. Since that at closure, summarize the Agency’s concerns, have (Version 4.1) time however, the scope of the TKEG has expanded an open discussion about community concerns and The Agency reviewed Dominion’s Community and the knowledge gathered is now applied to the answer any questions community members may Engagement Plan Version 4.1 in July. This plan entire mine site. have about the eventual closure of the mine. guides Dominion’s communication and outreach The TKEG held one meeting during 2018 in activities with affected parties, outlining Some of the general feedback we heard during the September at the Ekati mine. During their site visit engagement for on-going operations and community sessions is summarized below: members were able to observe caribou crossing the engagement techniques for specific projects Sable Haul Road and held discussions on various • All communities are very concerned about the which include TK. n this latest version, Dominion Ekati mine topics including waste management, declining caribou numbers. Wildlife is very has developed and implemented new dispute air quality, dust suppression, the culture camp, important part of indigenous communities and resolution and community question follow-up caribou mitigation plan, the Interim Closure and planning for the continued health and abundance procedures. of wildlife once the mine closes remains a critical Reclamation Plan and the Kugluktuk Traditional part of closure planning. Knowledge Project.

• At each information session communities expressed the need to see Traditional Knowledge (TK) and community knowledge used in closure planning and in particular in relation to wildlife and the closure of roads and waste rock storage areas. This is also evident from the Indigenous Society members’ formal comments to the Wek'èezhìi Land and Water Board on the ICRP.

35 Kugluktuk Traditional Knowledge Project TK in Sable AEMP Design Plan COMMUNITY-BASED (Hamlet of Kugluktuk Reclamation Program) From March to October 2018, community members ngagement In 2017 Kugluktuk Elders visited the Cell B Long participated in and used local knowledge and TRADITIONAL KNOWLEDGE & E & Lake Containment Facility (LLCF) Reclamation experience to successfully capture, sample and PROJECTS Research Area and shared some of their TK about release fish for the Aquatic Effects Monitoring grasses, sedges and shrubs that are common along Program. Tłı̨ chǫ Boots-on-the-Ground Caribou the shores of the Arctic Ocean. Fine Processed Monitoring

nowledge kimberlite deposited in the LLCF is somewhat Culture Camp Boots-on-the-Ground is a caribou monitoring K analogous to the shores of the Arctic Ocean in A Culture Camp was determined to be a good program where Elders and caribou harvesters that it provides similar substrates and challenges means to provide the company with Indigenous use traditional methods and knowledge to assess for the growth of plants, including bare saline community members’ assistance in monitoring current conditions of the Bathurst caribou herd’s substrates, coarse materials on beaches, and on-the-land mining disturbances using summer range. It focuses on caribou and their

raditional exposed finer substrates on the muddy backwater Indigenous techniques for information gathering. habitat, predators and industrial disturbance. T sediments. In August 2018, community members Unfortunately, the location originally chosen for from Kugluktuk assisted Dominion researchers to establishing a camp was ultimately determined locate specific species of plants on the coast of the to be unsuitable due to swampy conditions. ENGAGEMENT WORKSHOPS Coronation Gulf near Kugluktuk. The local seeds Dominion worked with the TKEG during winter of Dominion conducted community meetings from were collected for reclamation studies in sodium- 2018/19 to identify a more suitable location. The April – July 2018 in each of the Impact Benefit rich soils at the LLCF. This program replaced the creation of the Culture Camp was a requirement Agreement communities (with the exception of Student Seed Reclamation Program activities of the Jay Project Environmental Assessment, Wekweètì) to discuss the Interim Closure and usually held each year at the Ekati Mine. the construction of the camp has been delayed Reclamation Plan. pending a decision on the Jay Project. Environmental Monitors Dominion held a Caribou Engagement Workshop Dominion continues to provide opportunities for in September 2018. As part of the Caribou Roads Aboriginal community members to become familiar Mitigation Plan Dominion committed to providing with the Ekati mine environmental monitoring grant funding towards caribou research. Workshop programs. From March to July 2018, community participants discussed research objectives and the members helped Dominion conduct monitoring process by which successful research proposals of cliff-nesting birds that attempted to establish will be selected. nests in and close to the Misery, Lynx, Pigeon and Sable pit walls.

36 ngagement & E & nowledge K raditional T

Community closure and reclamaition Information Session in Behchoko January 2019

AGENCY ASSESSMENT

The Agency heard during their community The TK and community programs that Dominion An essential part of the Agency’s mandate under information sessions that community members support vary year-to-year, based on requests from the Environmental Agreement is to disseminate were not satisfied with the results of Dominion’s communities and annual reviews. No long-standing information to Indigenous Peoples and the general ICRP community engagement. Dominion indicated programs were discontinued by Dominion in 2018. public on matters pertaining to the Agency’s in their 2018 Annual Report that “The community mandate. The Agency also provides an effective meetings were focused on obtaining traditional In the past Dominion produced a quarterly means to bring the concerns of Indigenous knowledge on the closure and reclamation plans newsletter with the goal to keep in touch with Peoples and the general public about the Ekati of the waste rock storage areas”. The comments the communities and provide updates on their mine to Dominion and regulators. To help fulfill received by the Agency indicate that Dominion programs. This newsletter was widely distributed its mandate, the Agency is interested in meeting did not conduct adequate consultations with the and provided updates in plain language for with the TKEG during one of their meetings with communities, since community members did not community members and the public. Dominion Dominion, to have informal discussions on subjects seem fully aware of the updated plan presented did not produce their newsletters this past year such as closure, waste rock piles, caribou and other in ICRP v3.0 in particular some of the proposed and the Agency encourages Dominion to re- subjects of interest. Requests for such a meeting changes to the roads and waste rock storage areas introduce them. have been made to Dominion staff on several based on caribou movement patterns. The Agency occasions, with a response that they would forward believes input by the Aboriginal Society members our request to the TKEG. The Agency has not yet can help provide relevant biophysical and cultural received a reply. information, help identify potential environmental effects and strengthen mitigation measures; which leads to better closure decisions.

37 AIR QUALITY

HIGHLIGHTS No ambient air quality or dustfall standards or guidelines were exceeded.

Results from the 2016-17 dust suppressant study indicate EnviroKleen™ is effective at reducing dust.

←←Misery Road - Dust Suppressant, photo courtesy of Dominion Diamond Mines ULC during open water season. season. water open during station Lake Polar the and year-round station meteorological Koala the from and duty on are personnel when airport the from daily collected are mine Ekati the at data Meteorological Monitoring Meteorological use. fuel engine Diesel and generation inpower reduction the to due consumption fuel indiesel decrease a1.8% was there In 2018 Program. Reporting Emissions Gas and Greenhouse the Inventory Release Pollutant National the to them reports and fuel diesel of burning from resulting emissions air calculates Dominion year Every facilities. wastewater and waste from emissions and helicopters, on-site by A-1 Jet fuel of combustion buildings; heating for oil used of combustion blasting; and equipment, mobile building operating generation, heat, power for used diesel of combustion include mine Ekati the at emissions GHG of sources The Emissions Air (GHG) contaminants. air and gases greenhouse of emissions the as well as in2018 collected data monitoring quality air and meteorological of results the assesses and presents Report AQMP 2018 The 2018 Results Monitoring Quality Air in2021. expected is report full next The quality. air good maintaining for plans management quality air of effectiveness the assess to and quality air ambient monitor to is program the of purpose The program. sampling lichen and snow the with inconcert years, three every reported are results the and in1998 initiated was (AQMP) Program Monitoring Quality Air Ekati The ACTIVITIES 2018-19 ACTIVITIES (e.g., ozone (O ozone (e.g., pollutants air secondary of anumber transform or generate that reactions chemical of rate the control temperatures ambient day-to-day as AQMP the of component important an is temperature Monitoring Temperature the northwest. northwest. the from is direction dominant the however, directions, all from are site mine the at Winds region. surrounding and area local the to distributed be will mine the from emissions air how assessing for important are direction wind and speed Wind Wind years. few last the over occurring been has precipitation annual total lower of mm). Atrend 331 average (historical year dry avery 2018 making record, on lowest the mm, 169 was amount precipitation annual the In 2018, Precipitation early October. by start typically 0°C temperatures below where record, historical the to compared mid-September, in starting in2018 earlier was winter of onset The July. and inJune experienced were temperatures average than Warmer 2018). to (1995 average record historical the than lower 0.7°C is which -9.6°C, was temperature average annual the In 2018 pollutants. quality air of dispersion affect can which convection, thermal as 3 ) and nitrogen oxides (NO oxides nitrogen ) and x )) as well well )) as below the applicable GNWT standards. SO standards. GNWT applicable the below (SO with aerodynamic diameter less than 2.5 μm (PM 2.5 than less diameter aerodynamic with matter particulate and (TSP) matter particulate suspended total for schedule sampling six-day Program Surveillance Pollution Air National the follows schedule sampling six-day The days. six every period a24-hour for operated are stations Partisol (CAMB). Building Monitoring Air Continuous the as well B) as Cell and (Grizzly stations sampling Partisol two at monitored is quality air Ambient Monitoring Quality Air Ambient annual fine particulate matter PM matter particulate fine annual or daily no were there Similarly, respectively. m3, 120 μg/m3of μg/ or 60 standards (GNWT) Territories Northwest the of Government annual the or hour 24- the of exceedances TSP no were there In 2018 Total Suspended Particulate direction. wind and speed, wind temperature, NO fuel usage for heating. for usage fuel seasonal to due summer, likely the to compared of nitrogen dioxide (NO dioxide nitrogen of concentrations annual and daily, hourly, The Dioxide Sulphur and Dioxide Nitrogen (NO, NO oxides nitrogen dioxide, sulphur of concentrations measure continuously which analyzers contains station (CAM) Monitoring Air Continuous The X 2 concentrations were higher in the winter winter inthe higher were concentrations ) measured at the CAMB in 2018 were were in2018 CAMB the at ) measured 2 , NO x ), TSP,), PM and 2 ) and sulphur dioxide dioxide sulphur ) and 2.5 , as well as ambient ambient as well , as 2.5 exceedances. 2 and and 2.5 ). ). 39 Air Quality Dustfall Monitoring The objectives of the dust suppression study The study indicated that EnviroKleen appears to Dust deposition (dustfall) monitoring was were to: be an effective dust suppressant and is able to maintain a sustained suppression of dust with uality conducted at 31 locations, including two control • Compare the relative effectiveness of

Q repeated applications over the year and proper sites. Total dustfall, acid deposition and metal EnviroKleen and DL-10 on a large scale, road maintenance. Suppression effectiveness A ir deposition were sampled. and inform a decision to expand the use of appears to be comparable to that of DL-10 and EnviroKleen; In 2018, dustfall concentrations at 300 metres (m) water on initial application, but visual observations from the haul roads were below the GNWT interim • Determine the degree to which EnviroKleen show that EnviroKleen does not break down as dustfall objective of 1.53 mg/dm2/d. In general, acid migrates into the surrounding environment to quickly and lasts longer. Dominion notes that each deposition (nitrate and sulphate concentrations) inform the decision on whether an application of the various dust suppressant products have their were greatest at stations close to the Misery buffer is needed near waterbodies; and limitations; for water, the frequency of application haul road but were also elevated along the Lynx • Investigate EnviroKleen’s potential for toxicity to needed and the subsequent loss of road fines (fine haul road in July-August, the Jay road in August- both the terrestrial and aquatic environments. particulates on the road surface), and for both September, and at the Sable Road (measured at 30 DL-10 and EnviroKleen, the fact that these treated m upwind and 30 m downwind from the road). All road surfaces break down with heavy use and concentrations were below the established critical The Agency reviewed the results of the 2016-2017 road grading. Comparisons of the effectiveness of soil load for several provinces. Metal deposition Dust Suppression Study. EnviroKleen was applied various dust suppression products is affected not concentrations are proportional to the amount of along the entire length of the Misery Haul Road, only by variations in mine activity (e.g., amount total dustfall and were highest at locations close to except 15 m buffer areas surrounding water and type of traffic) but also by natural factors the Lynx and Misery haul roads. bodies which were treated solely with water. Dust (i.e., relative humidity, amount and frequency of deposition measurements were taken from dustfall precipitation, wind speed and direction). Dust Suppression monitors installed in transects along the haul road Dust suppression methods are used on roads at as part of the Air Quality Emissions Monitoring and Soil sampling showed that EnviroKleen may be the Ekati mine to mitigate dispersion of fugitive Mitigation Plan (AQEMMP). Additionally, two Casella transported up to 10 m off the road, however dust. Historic dust management practices at the Microdust Dust Detectives were installed along the it is not expected to pose a risk to humans, Ekati mine have primarily relied on the use of DL-10 road to collect real-time TSP data resulting from animals, plant life and aquatic species as it is (a chemical dust suppressant) and road watering, differences in road usage, road conditions and/ readily biodegradable in natural environments. In both of which have limitations in their use and or weather-related events such as rainfall and response to concerns expressed by the Lutsel K’e ability to suppress dust. Starting in 2015 Dominion wind. These data were paired with real-time visual Dene First Nation, Dominion conducted toxicity began pilot research along the Misery Haul Road monitoring through cameras and staff observations testing and demonstrated that it is neither acutely on an alternative dust suppression product called of specific dust generation events such as the nor chronically toxic to various aquatic species. EnviroKleen™. EnviroKleen had been previously types of equipment and traffic on the haul road Following the results of the first three years of the used at Ekati in underground operations (e.g., light vehicle, road train, vs haul max), allowing pilot program (2015-2017), Dominion stated that (since 2009). for a qualitative assessment of the fugitive dust generated by the various types of traffic on site. they planned to continue with the Dust Suppression Pilot Study in 2018, applying EnviroKleen along the entire length of the Misery Haul Road, except 15 m buffer areas surrounding water bodies which were watered. Results of the 2018 Dust Suppression Study have not been received.

40 AGENCY ASSESSMENT

In 2016, the Agency reviewed the Air Quality The Agency and others have repeatedly raised Following the results of the first three years of uality

Emissions Monitoring and Mitigation Plan concerns about the effects of fugitive and finer this dust suppression pilot program, Dominion Q

(AQEMMP) for the Jay Project. At the time Dominion dust on vegetation and caribou, including possible noted that they planned to continue with the A ir committed to amalgamate the Ekati Air Quality links with the zone of influence for the mine on Dust Suppression Pilot Study in 2018, applying Monitoring Plan with the Jay Project AQEMMP into caribou distribution and abundance. As described EnviroKleen along the entire length of the a single sitewide plan by 2017. To date the Agency in the Developers Assessment Report for the Jay Misery haul road while implementing a number has not received the site wide plan. The Agency Project, Dominion was required to implement a of improvements recommended in previous considers this amalgamation to be important as it Caribou Offset and Mitigation Plan that would years. Dominion noted that the 2018 results would consolidate and ensure consistency between incorporate an enhanced dust mitigation study and an accompanying best practices document, the air quality monitoring programs across the including a pilot test on the application of dust describing optimal methods for the application mine site. In addition, an amalgamated plan would suppressants and a dustfall sampling program. of maintenance of EnvioKleen in the Arctic would implement the thresholds and triggers site wide Dominion was to report on the results and propose be distributed for review by January 31st, 2019. for NOx, PM2.5, and TSP that have been developed improvements to be incorporated into the AQEMMP. The Agency has yet to receive this report. The as part of an adaptive management framework If dust management improvements where identified Agency encourages Dominion to provide this report required from the AQEMMP. they were to be applied to all roads at the Ekati as soon as possible. Additionally, based on the mine. As a result, Dominion conducted research on 2016-2017 report indicating there are significant alternative dust suppression products, methods, advantages of applying EnvioKleen compared to and best management practices. DL-10 and water, the Agency encourages Dominion to apply EnviroKleen to all roads at Ekati, especially the Sable Road where caribou are most abundant.

Rock ptarmigan, photo courtesy of Dominion Diamond Mines ULC

41 WASTE ROCK

HIGHLIGHTS The Sable Waste Rock Storage Area (WRSA) has been re-designed.

Significant questions persist over the use of ‘total neutralization potential’ to evaluate the ability of waste rock to neutralize acidic conditions.

Eight problematic seeps from WRSAs were identified in 2018.

←←Misery Waste Rock Pile Koala/Beartooth (0.1 mt). Koala/Beartooth Panda/ and (2.1 mt) (7.4 Misery/Lynx mt), Pigeon by (19.4 followed mt) Sable at deposited was quantity largest The in2018. WRSAs various the at deposited were rock waste of (mt) tonnes million Twenty-nine inTable 3. provided been has CKRSA the and WRSA each of Adescription WRSA. Koala/Beartooth Panda/ the to adjacent located is plant, process the from ore kimberlite rejected of comprised is which (CKRSA) Area Storage Rejects Kimberlite Coarse the In addition, Project. Jay the of development with planned is WRSA Asixth Misery/Lynx. and Panda/Koala/Beartooth, Pigeon Sable, Fox, mine: Ekati the at WRSAs five currently are There height. and area footprint surface between balance areasonable achieve and permafrost; of establishment the promote term; long inthe and operations mine during both stable, physically be to designed are and mining of completion the following inplace remain will that structures landscape permanent are They ore. kimberlite of mining the during excavated overburden and rock waste of quantities large the contain to designed are (WRSA) Areas Storage Rock Waste STORAGE AREAS STORAGE ROCK WASTE

maximum designed capacities. designed maximum their reach WRSAs West and South the until WRSA East inthe placed be not rock waste that directed but 2018 inJune re-design the approved (WLWB) Board Water and Land Wek'èezhìi The watershed. Lake Ulu adjacent the on impacts possible reducing while capacity storage additional provide to intended is re-design The WRSA. East anew with along TRSP the to setback m, a100 of instead m, a30 with WRSA South enlarged an and WRSA West the of construction proposed which 2018 inApril submitted was plan A re-design mined. rock waste of volume the reduce to pit the of redesign or watershed Horseshoe the outside disturbances and piles planned the of expansion either require would TRSP the from msetback 100 required the that (Dominion) ULC determined Mines Diamond Dominion consideration, further Upon (TRSP). Pond Two Settlement Rock the to adjacent located be to were which of both piles, designated two of consisted design WRSA original The WRSAs. adjacent the at deposited be will rock waste diabase and granite of mt 103 approximately which during 2022 through continue to expected is and 2017 in August commenced pit open the of mining and overburden of Removal camp. main Ekati the of north km 20 approximately located is Project Sable The WRSA Sable the of Re-design AND STUDIES AND DESIGN, MANAGEMENT DESIGN,

use of diabase as a construction material. aconstruction as diabase of use the from result could leachate metal and drainage rock acid that concerns raise and non-PAG is diabase that conclusion inDominion’s uncertainty suggest results These times. five by granite of that exceeded sulphur of concentration median the while leaching metal for tested samples diabase of majority inthe criteria reference accepted the exceeded metals several of concentrations that noted also Agency The rock. waste other and diabase of characteristics geochemical the determining when potential’ neutralization ‘total of use continued Dominion’s over concern expressed Agency the review, its During used. currently is granite as manner same inthe material a construction as use its for sought was (non-PAG), approval generating acid non-potentially be to Dominion by considered is rock waste diabase Because Pit. Lynx inthe dyke diabase unknown an of presence the of WLWB the notified previously had Dominion Materials Construction as Rock Waste Lynx of Diabase Use

43 Waste Rock ock Panda/Koala/ Coarse Kimberlite Fox Sable Pigeon Misery/Lynx Jay R Beartooth Rejects

aste Operational W Complete Complete Active Active Active Active Future Status Gran ite, Rock Types Granite, Diabase, Granite, Diabase, Coarse Processed Granite, Diabase, Granite, Diabase Diabase, Granite, Diabase Contained Metasediment, Till Metasediment Kimberlite Metasediment Kimberlite Final Designed 341 320 182 66 151 115 227 Area (ha)

Final Designed 50 50 65 70 65 50 65 Height (m)

Current Volume 169 (inactive) 214 (inactive) 19.4 (active) 7.4 (active) 99 (active) 38.2 (active) 155 (planned) (million tonnes)

Landfarm, Solid Solid Waste Other Features None None None None None Waste Landfill Landfill

Table 3. Ekati Mine Waste Rock and Coarse Kimberlite Rejects Storage Areas

10-20 m

50-70 m

10-20 m

Diagram 1: Waste rock storage area illustration

44 "Best case scenario" case "Best conditions Controlled lab the In the cumulative rates of generated acid. generated of rates cumulative the neutralize to potential rock’s waste the determine conditions specific site the under place taking mechanisms weathering the and concentrations their rock, the in present are minerals specific What widely. vary rates reaction and reactions their but solutions, acidic of neutralization the to contributing of capable minerals common the among are aluminosilicate and oxides, and hydroxides iron and aluminium silicate, Carbonate, eliminated. or reduced drainage mine acid with associated problems the and neutralized be effectively can acid the rock, the in found also are minerals neutralizing sufficient if Fortunately, streams. and lakes adjacent into WRSAs from leach to cadmium and copper as such metals cause can rock inwaste minerals natural other and sulphides of oxidation through generated acid as problem costly and adifficult is It industry. mining the facing problem environmental term long largest the as some by described been has it with associated contaminants the and drainage acid mine of formation The AND WHY IS ITIMPORTANT? WHY AND WHAT POTENTIAL IS NEUTRALIZATION TOTAL NEUTRALIZATION POTENTIAL (TNP) potential neutralization maximum measure to us allow conditions Controlled

VS difficult, time consuming and more costly. more and consuming time difficult, testing the makes This conditions. field under chemistry drainage actual determine that factors the all simulate accurately can method testing available single no Unfortunately, in. resides it conditions environmental the under inrock residing potential neutralization effective, or actual, the of (ENP) ameasure is Potential Neutralization Effective conditions. field actual under properties neutralization acid similar contribute not may that those including sample inarock minerals neutralizing the all quantifying and dissolving involves testing The neutralizing. of capable is amaterial acid cumulative, or total, the of ameasure (TNP) is Potential Neutralization Total minerals. carbonate than conditions acid to slower react minerals silicate In general, acid. neutralize to silicates on relies and minerals carbonate of amounts low has generally Ekati at rock Waste Run off might not pass pass not might off Run Taking place in WRSAs in place Taking At mine the site minerals through neutralizing land" the on reality "The EFFECTIVE EFFECTIVE NEUTRALIZATION POTENTIAL (ENP) effective as carbonate as effective as not is Silicate site. on silicate of Lots

could be frozen in the core the in frozen be could Neutralizing minerals Neutralizing

Diagram 2: Neutralization Potential Neutralization 2: Diagram acid generated any neutralize to available be and column water enter will potential neutralizing the of aportion Only

45 Waste Rock Jay WRSA Co-placement Study Misery WRSA Geotechnical Investigation • All waste rock between the 4 m active layer and the

ock In October 2017, Dominion submitted a study to the The Misery WRSA geotechnical investigation was maximum depth of monitoring at 21 mbgs remained R frozen throughout the monitoring period. WLWB that outlined how the co-placement of PAG conducted in February and March 2018. One borehole and non-PAG waste rock within the proposed Jay

aste was drilled from the 515 m bench to a final depth • The in situ weathering of waste rock within the

W WRSA pile will be optimized so as to ensure acid of 59 m below ground surface (mbgs). Although the pile has been very slight with frozen ground rock drainage and metal leachate are eliminated. planned depth was 75 mbgs, all metasediment layers temperature contributing to the slow rate The Jay WRSA Co-placement Study Design of the WRSA are believed to have been intersected. of weathering and helping to immobilize the suggested geochemical testing and a waste rock Nine granite and 16 metasediment samples were weathering products. placement and monitoring system, along with a collected, photographed, logged and sampled during geochemical and geothermal monitoring program drilling, and a series of temperature, moisture and Seepage Monitoring on the reported analogous Misery WRSA. groundwater monitoring instruments were installed A summary graphic showing how water interacts or In its September 2018 decision, the WLWB did not in the borehole. Unfortunately, the deep thermistor moves through (seepage) with a given waste rock pile approve the Study Design. The Board agreed with and hole casing were damaged below 21 mbgs during is presented in Diagram 3 at the end of this chapter. the Agency that the proposed study would not backfilling, which means deep temperature and water adequately assess the ‘effective neutralization monitoring were not possible. Dominion is required to monitor seepage coming potential’ of Jay waste rock and the sensitivity from WRSAs and report findings each year. The 2018 Monitoring results obtained up until November of the pile to imperfect co-placement, or mixing, Waste Rock and Waste Rock Storage Area Seepage 2018 suggest the following: of PAG and non-PAG material. Dominion was also Survey Report (Seepage Survey Report) was directed to assess the need for, and potential value • The near-surface summer active layer extends submitted to the WLWB in April 2019. In addition, of, operating field-scale tests concurrent with to a depth of 4 m, which is within the constructed Dominion is required every three years to complete construction of the Jay WRSA and to re-submit a 5 m thick cover of non-PAG material. a detailed analysis of seepage trends over time. revised Study Design. The next 3 Year Seepage Survey Report is expected • Preliminary water flow velocity estimates to be submitted in 2020. indicate porewater in the active layer may be flushed from the WRSA every two to four years.

Pigeon pit

46 an unnamed lake). an unnamed and Lake (Mossing WRSA Lynx and (Cujo Lake); Pad Crusher Lynx Lake); Fox (2) South and Lake Hump (Three WRSA Fox Lake); Pelzer and Lake (Bearclaw WRSA Panda/Koala/Beartooth environment: receiving the with along 2018 in identified seeps problematic the of asummary is following The to be developed. need may streams and lakes surrounding protect to strategies management adaptive results, on depending and, increased is frequency sampling identified, been has seep aproblematic Once year. one than more for location that at typical is what to compared quality water poor shows or year one than more for criteria quality effluent License Water exceeds that one is seep problematic year. A previous the during six to compared as 2018 in identified were seeps problematic Eight date. to reported maximum the above some fall, the to compared as freshet during concentrations total and inconductivity peaks higher showing CKRSA the around seeps and pad; crusher Lynx the of downstream seep inthe parameters measured all almost of concentrations higher WRSAs; other at reported those to relative seeps Lynx most at concentrations Solid Suspended Total high including noted were exceptions Some years. inprevious observed as trends and concentrations similar showed seeps sampled previously Most found. was seepage no where WRSA Sable new the except WRSA, each and CKRSA the areas, laydown some at occurred seepage years, previous As in identified. previously not were which 26 including in2018 sampled were seeps of 49 total A flow. ameasurable have that seeps any from fall the and freshet spring during year each obtained are samples Seepage testing for TNP. for testing than costly and consuming time difficult, more ENPfor testing makes This conditions. field actual under chemistry drainage rock waste determine which factors the all simulate accurately can procedure analytical single no that acknowledge we acidity, external and internal neutralize to rock waste of ability the determining of means (ENP) accurate amore is Potential Neutralization Effective of use the believes Agency the While 2). (Diagram minerals acid-producing other and sulphides of oxidation through generated acid neutralize to ability rocks’ the of a measure (TNP) as Potential Neutralization Total of use continued Dominion’s and management rock waste on focussed in2018 efforts Agency’s the of Much time’. first the right it ‘get to made be efforts reasonable all and WRSAs, of operation and design inthe considered carefully is behavior rock waste of aspects term long and term short that therefore, important is It modify. to costly and difficult be will completed, once and, ended have operations mining after long landscape Gras de Lac the on fixtures permanent be will areas storage large The mine. Ekati the of reclamation and closure eventual the for challenges significant most the of one represents kimberlite processed and rock waste of management The concentrations. open-water than, greater slightly only or to, similar and concentrations seep the than lower being lake adjacent an entered seep the where shoreline the at in concentrations resulted This path. flow the along diluted rapidly be to tended seep the within concern of constituents of concentrations elevated cases, reported In all AGENCY ASSESSMENT AGENCY perimeter of the pile. pile. the of perimeter the around occurring processes and conditions reflect accurately not may which WRSA the of centre approximate inthe located is borehole current the that notes Agency The slopes. shoulder exposed the to adjacent located in areas particularly (summer), heating and (winter) cooling conductive and convective by affected are WRSA the within processes geochemical and Geothermal future. inthe hole bore in aseparate casing sampling water and thermistor deep areplacement install to Dominion encourages Agency The monitored. be cannot pile the of thirds two lower the means this m, 65 of height designed afinal has WRSA Misery/Lynx the As m. 21 of depth the below samples water obtain and regime thermal the profile to possible not it making investigation geotechnical the of part as prepared borehole single P and thermistor deep the Unfortunately, WRSA. Misery/Lynx the within place taking processes geochemical and geothermal the to related uncertainties reduce to efforts Dominion’s acknowledges Agency The mines. northern other and Ekati at rock waste of potential leaching metal and drainage rock acid neutralization, the determining and testing of means efficient and effective most the examine to review expert an undertake Board Water and Land Wek’eezhii the that recommended have we reasons these for is It used. method only the be longer no should it that conditions field under rock waste of potential neutralization the determining for TNP of use Dominion’s over demonstrated been has uncertainty sufficient that and significance such of is issue the believes Agency the However, V C casing were damaged in the inthe damaged were C casing 47 Waste Rock Additional boreholes may be required to supporting a general 30 m setback as the Agency exceedance (refer to the Aquatic Effects chapter

ock accurately estimate the long term geothermal and believes a 100 m setback is more protective of of this report). While results from the 2018 survey

R geochemical performance of the entire WRSA and lakes and streams as it better provides sufficient confirm that seepage quality from some WRSAs closure cover. room for any necessary adaptive management exceed current surface water quality limits aste facilities to be constructed. established through the Water Licence, a similar W The Agency supported Dominion’s request to adaptive management program has not been reduce the standard 100 m setback between Where water, fish and plankton and benthos initiated. Given the potential long term impacts the South Sable WRSA and Two Rock Settlement community quality exceed pre-determined action seeps may have on water quality in adjacent lakes Pond to 30 m as a means of providing additional levels, Dominion has implemented an Adaptive and streams, the Agency believes a similar adaptive protection for the adjacent Ulu watershed. This Management Framework and Response Plans management approach should be developed for support should not however, be interpreted as which are intended to address and mitigate the WRSA seepage.

Summer heat melts the 1 Active Layer/Slope active layer & slopes

Melting snow and rainfall leave the active layer: 2 • runs off to the surface Active Layer/Slope • runs to the subsurface • some water may run through the core before draining to the surface or subsurface Frozen Core • Some WRSAs will have a Frozen Core • Other WRSAs may not develop a Frozen Core

Surface

Some water could be captured subsurface. Subsurface (permafrost) Some water will flow elsewhere

Diagram 3: Seepage

48 WASTEWATER AND PROCESSED KIMBERLITE MANAGEMENT

HIGHLIGHTS Dominion updated the Wastewater and Processed Kimberlite Management Plan (WPKMP) to incorporate the Panda-Koala Processed Kimberlite Containment Area (PKCA) as the primary location for deposit of Fine Processed Kimberlite (FPK).

Mining of Koala underground is complete, making the Panda-Koala-Koala North Pits available for deposit of FPK.

Further research is needed to support a decision about the depth of freshwater cap required above FPK in the Panda-Koala PKCA.

Coarse Kimberlite Rejects Pile, September 2018 → WASTEWATER AND FINE PROCESSED KIMBERLITE

Operation of the Ekati mine requires Dominion plant after the extraction of diamonds. This includes are closely linked activities. The WPKMP describes to manage several different types of wastewater, Fine Processed Kimberlite (FPK) that leaves the site-wide wastewater management and FPK including water that contacts various mine facilities process plant as a slurry of fine ground up rock disposal. Table 4 summarizes the types of and wastes, and sewage. Also, the diamond recovery (sand/silt/clay sized particles) mixed with water. The wastewater and PK at the Ekati mine site. Diagram process produces large quantities of Processed large volume of water associated with FPK means 4 shows the flows & destinations of water and Kimberlite (PK) – material rejected from the process that wastewater management and FPK management processed kimberlite at the Ekati mine site.

Category Type Description/Source

Water that flows or is pumped from surface mine infrastructure, e.g., Surface Minewater roads, waste storage areas, truck wash bays, collection sumps. Minewater Runoff from facilities and water pumped from mines Open Pit Minewater Water that flows or is pumped from open pits.

Underground Minewater Water that flows or is pumped from underground workings.

Sanitary sewage system WASTEWATER AND PROCESSED KIMBERLITE MANAGEMENT Sewage – Main Site Sewage at the main site. Toilet waste and greywater Sewage – Remote Sites Sewage from remote work sites, e.g., Fox Pit, Misery Camp.

Coarse kimberlite (> 0.5 mm diameter particles) rejected from the Coarse Processed Kimberlite process plant. Trucked to waste rock storage areas (See Waste Rock Processed Kimberlite section of this report for more information). Material rejected from the process plant Fine kimberlite (< 0.5 mm diameter particles) discharged from the Fine Processed Kimberlite process plant in a slurry mixture of FPK and water.

Table 4. Wastewater and processed kimberlite at the Ekati mine site

Water is recovered from 3.b the retired open pits and reused

Cell B Koala (Full)

Cell A (Partially Full) Kimberlite arrives Cell C 1 (Partially Full) at the processing plant

2.b 2.a Processing Panda WASTEWATER AND PROCESSED KIMBERLITE MANAGEMENT Plant R d emaining 3.a euse capacity Processed Kimberlite “settles ter is r Processed Kimberlite and Wa 2 out” and stays, while water water are sent to the LLCF, moves downstream (2.a) and are used to ﬁll exhausted open pits (2.b)

Beartooth

Cell D

Water Flow of water Water is only released into Leslie Lake 4.a when it meets strict standards. Flow of Processed Kimberlite Settled Processed Kimberlite Cell E Filter Dykes Leslie Lake receiving to Lac de Gras Dyke environment

Diagram 4: Wastewater and processed kimberlite at the Ekati mine site 51 WASTEWATER MANAGEMENT Panda Waste Rock Storage Area Photo Courtesy of Dominion Diamond Mines ULC

All minewater must meet effluent quality criteria (EQC) specified in the Water Licence before the water can be discharged to the receiving environment. Ekati mine currently relies on three water management facilities as the primary discharge locations, where Dominion collects and analyzes water samples to confirm compliance with the EQC before discharge.

• Two Rock Sedimentation Pond (TRSP) manages water from the Sable site, with discharge to Horseshoe Lake in the Horseshoe watershed.

• Long Lake Containment Facility (LLCF) manages water from the Main Camp, Panda/Koala/Beartooth area, Ammonium Nitrate Storage Facility, Polar Explosive Building, Fox site and Pigeon site, with

WASTEWATER AND PROCESSED KIMBERLITE MANAGEMENT discharge to Leslie Lake in the Koala watershed. Water management in this area sometimes relies on temporary storage in the Beartooth PKCA before discharge through the LLCF. Image TK

• King Pond Settling Facility (KPSF) at the Misery site manages water from the Misery and Lynx sites, with discharge to Cujo Lake in the King-Cujo watershed.

In future, Dominion plans to use the Misery Pit to manage water from the Jay project, with discharge to Lac du Sauvage.

Dominion manages most surface minewater by temporary collection in sumps, followed by pumping or trucking to one of the three primary water management facilities. Surface minewater runoff from some roads, laydowns, and waste rock storage areas follows natural flow paths or is directed into the tundra. The Waste Rock and Ore Storage Management Plan dictates that roads and laydowns can only be constructed using materials that are non-potentially acid-generating with low metal leaching potential.

52 The management of open pit and underground water in 2018 is summarized in Table 5.

Mine Area Source Water Management 2018 Volumes (m3)

Open Pit Pumped to LLCF. 274,677

Panda, Koala, Underground Pumped to LLCF or Beartooth PKCA. 262,918 to LLCF Koala North Discontinued in early 2019 when mining and underground 0 to Beartooth PKCA reclamation completed.

Open Pit Pumped to LLCF. 1,462,770

Beartooth Currently used for FPK storage and temporary storage of water from other sources.

Open Pit Pumped to LLCF during operation. 0 Fox Currently accumulating in pit.

Open Pit Pumped or trucked to LLCF 15,760 to LLCF or Beartooth PCKA. Pigeon WASTEWATER AND PROCESSED KIMBERLITE MANAGEMENT 19,520 to Beartooth PKCA

Open Pit Pumped or trucked to KPSF. 43,408 to KPSF

Lynx Future storage of non-compliant water from KPSF

Sable Open Pit Pumped or trucked to TRSP. 44,507

Open Pit Pumped to KPSF. 0 Misery Underground Pumped to KPSF or Lynx Pit. Not operational in 2018.

Open Pit Pumped to Misery Pit. Not operational Jay in 2018.

Table 5 – 2018 Open Pit and Underground Water Management

All sewage wastewater from the site is treated in the sanitary sewage treatment plant located at the main camp. Sewage from washroom facilities across the site is trucked to the sewage treatment plant. Treated effluent from the sewage treatment plant flows through a pipeline to the process plant, where it is mixed with FPK and then discharged to one of the PKCAs. In 2018, Dominion discharged 81,140 m3 of sewage effluent to the LLCF with the FPK slurry.

53 FINE PROCESSED KIMBERLITE MANAGEMENT

Dominion’s current FPK deposition plan uses the and potassium concentrations may be directed to Licence Effluent Quality Criteria before discharge LLCF as the primary FPK storage location and the Beartooth PKCA where it can mix with other to Leslie Lake can be granted by the inspector. the Beartooth PKCA as the secondary storage water before discharge to the LLCF. As approved Dominion has deposited PK only in Cells A, B and location. Dominion pumps FPK to the LLCF and by the Wek'èezhìi Land and Water Board in its C. Cell B has been filled to capacity while Cells A Beartooth PKCA as a slurry, with approximately February 2019 decision, the Panda-Koala pits and and C have remaining space for FPK storage. Cell 40% solids by mass (i.e., 60% water). In 2018, underground will be used as the main FPK storage D has pumping facilities to recycle water for use Dominion did not place any FPK in the Beartooth area beginning in spring of 2019. in the process plant. Table 6 lists the volumes of PKCA. The Beartooth PKCA also serves as a FPK and process plant water placed into the LLCF, minewater retention pond when water quality The LLCF has five cells (A through E) separated Beartooth PKCA and water used by process plant conditions make it beneficial to divert certain by two filter dikes, with the most downstream from Cell D in 2018. minewater sources away from the LLCF. For cell (Cell E) retained by the Outlet Dam, where example, water with elevated nitrate, chloride Dominion monitors compliance with the Water

Facility Process Plant Solids Process Plant Solids WASTEWATER AND PROCESSED KIMBERLITE MANAGEMENT FPK (m3) FPK (m3)

LLCF 1,082,087 5,995,091

Beartooth PKCA 0 0

Table 6. FPK and Water Volumes for PK Containment Facilities in 2018

Haul Train, photo courtesy of Dominion Diamond Mines ULC

54 PANDA-KOALA PROCESSED KIMBERLITE CONTAINMENT AREA

As part of the licensing for the Jay Project, there is outstanding uncertainty about the depth Dominion also submitted the Panda and Koala Dominion received conditional approval of a of freshwater cap that is required to achieve Deposition Study, including the results of water conceptual plan to deposit FPK into the Panda, acceptable post-closure water quality conditions. quality modelling and FPK consolidation modelling, Koala and Koala North Pits after completion of Dominion’s water quality modelling predicts in September 2018. In its review of the Deposition underground mining. Part H, Clause 2 of the Water that the proposed 30 m depth of freshwater Study, the Agency expressed concern about the Licence requires submission and approval of an cap will have long-term concentrations of some lack of detail provided about modelling inputs, updated WPKMP that incorporates the results of parameters that exceed the current operational assumptions and methods. It also identified a freshwater cap optimization study, and Part H, water quality benchmarks. As discussed in the specific concern about the methods used to Clause 32 requires completion of the “Panda and Closure and Reclamation section of this report, estimate loading from WRSAs, the lack of site- Koala Deposition Study” intended to “investigate the operational water quality benchmarks may not specific data for runoff from disturbed areas, and how FPK behaves once deposited into mined-out be appropriate for evaluating closure conditions. the reliance on median concentrations to estimate pits and the quality of the resulting supernatant The results of the water quality modelling identify loading from mine sources. water” and “include an updated Panda and Koala WRSAs as the primary source of loading that Pits predictive water quality model.” causes the predicted exceedances. Dominion Dominion completed underground mining in Koala has proposed a research plan to evaluate the in November 2018. A GNWT inspection report Dominion submitted the updated WPKMP v8.0 optimal depth for the freshwater cap to achieve dated March 12, 2019 states that the Panda- in September 2018, incorporating plans for FPK Koala underground decommissioning had been acceptable post-closure conditions. WASTEWATER AND PROCESSED KIMBERLITE MANAGEMENT deposition in Panda, Koala and Koala North pits. completed. Under the revised FPK deposition plan, Dominion WPKMP v8.0 lacked a section describing planned proposes that the Panda-Koala PKCA will become closure and reclamation for PK containment the primary FPK storage facility, with the LLCF and facilities, something that had been included in Beartooth PKCA as secondary storage facilities. As previous versions. In February 2019, the WLWB water levels rise in the Beartooth and Panda-Koala approved the disposal of FPK into the Panda/ PKCA’s the water will be decanted to the LLCF. Koala PKCA, but directed Dominion to provide an additional updated version of the WPKMP clarifying Dominion believes these pits provide physically that the freshwater cap depth requires further secure and long-term storage for large volumes of research and incorporating a description of closure FPK and therefore have benefits for post-closure and reclamation plans. Dominion submitted WPKMP physical stability at the site. However, they rely v9.0 in March 2019 to address these requirements. on freshwater caps overlying the FPK to address Review is ongoing. potential long-term water quality concerns. During its review, the Agency expressed concern that

55 AGENCY ASSESSMENT

The use of the Panda-Koala PKCA as the primary conditions. There is little evidence to support this The uncertainty about water quality predictions location for deposition of FPK is a fundamental assumption because Dominion has not completed leads to uncertainty about the depth of freshwater change in the management plan for FPK at the detailed water and energy balances for WRSAs. Also, cap that is required above the FPK in pit lakes to Ekati mine. This change will have implications estimates of key source loads are based on data that protect the receiving environment. for long-term water quality in Panda, Koala and represent the median of measured conditions. There Koala North Pits and their post-closure pit lakes. is a strong possibility that more adverse conditions The modelling indicates that WRSA sources may be Discontinuing ongoing discharge of FPK to the LLCF will exist at some times. Overall, these assumptions ongoing sources of contaminants that could lead to will lead to changes in water quality and water and estimates leave significant uncertainty about post-closure exceedance of current water quality levels in that facility. the long-term predictions of water quality in pit benchmarks. The Agency considers further research lakes, and may underestimate future loading and about optimal depth for a freshwater cap over The water quality modelling for the pit lakes relies concentrations. The Agency considers timely and FPK stored in pits as a critical step in the closure on many assumptions and on estimates of loading robust monitoring and research programs to support planning process. from a variety of sources including FPK porewater, future modelling and predictions to be critical as the and WRSA runoff and seepage. There are limited or no deposit of FPK into the facilities proceeds. data to support estimates of source loading for some contaminant sources, e.g., runoff from disturbed areas like roads and laydowns. The estimates of WASTEWATER AND PROCESSED KIMBERLITE MANAGEMENT loading from WRSAs assume that current runoff and seepage conditions are representative of long-term Misery Pit, camp and Waste Rock Storage Area, photo courtesy of Dominion Diamond Mines ULC

56 CLOSURE & RECLAMATION

HIGHLIGHTS The submitted Interim Closure and Reclamation Plan v3.0 has several critical flaws that need to be addressed before it is approved.

More work and engagement is needed to support Dominion’s proposals to reduce closure efforts aimed at mitigating effects on wildlife, e.g., roads and WRSAs.

Legal and administrative issues related to financial securities at the Ekati mine are impediments to appropriately managing public liability and risk for mine closure.

Long Lake Containment Facility Reclamation Area, photo courtesy of Dominion Diamond Mines ULC → CLOSURE PLANNING STATUS Open Pits additional reclamation and closure activities. The The proposed closure plan for open pits involves closure and reclamation plan for underground mines begins with removal of all hazardous

R eclamation The Wek’èezhı̀ı Land and Water Board (WLWB) flooding the pits and connected underground requires Dominion to have an approved Interim mines with freshwater to create new pit lakes. materials and equipment, and materials with and Closure and Reclamation Plan (ICRP) during Dominion expects to reconnect pit lakes with potential for chemical degradation. Dominion active mining operations, and to annually report their surrounding watersheds when the water plans to leave equipment underground if it is not on reclamation progress and any revisions to quality meets appropriate standards. For most salvageable and will not negatively affect water

losure reclamation planning. Dominion’s reclamation quality. All underground portals and fresh air C pits, reconnection will involve inflow and outflow planning is guided by the following goal: channels, but for Jay pit Dominion will breach the raises will be protected against inadvertent access dike to allow reconnection with Lac du Sauvage. by animals and humans, either by constructing “Return the Ekati mine site to viable, and For pits that contain mine water, Dominion plans plugs/seals, or because they will be submerged wherever practicable, self-sustaining to layer freshwater on top of denser mine water, under pit lake water and/or PK. ecosystems that are compatible with a healthy so that the mine water remains permanently at the environment, human activities, and the Waste Rock and Coarse Kimberlite bottom of the pits. surrounding environment.” (ICRP v2.4 and v3.0) Storage Areas The plan proposes construction of berms around All of the Waste Rock Storage Areas (WRSAs) on site In August 2018, Dominion submitted ICRP v3.0, all pits except Jay pit, to deter wildlife from (i.e., Sable, Pigeon, Panda/Koala/Beartooth, Fox, the first comprehensive update of the ICRP since entering the flooded pits. and Misery/Lynx and the future Jay) will remain in 2011. The WLWB has initiated the review process. place after mining operations have ceased. Areas The Agency participated in a WLWB ICRP Technical Both versions of the ICRP propose establishment of exposed metasediment rock at the Misery/Lynx Workshop in January 2019 and submitted comments of littoral zones around pit lakes to provide and Jay WRSAs are to be covered with 5 m of non to the WLWB in March 2019. As of the end of 2018, favourable conditions for the development of acid-generating waste rock. Based on the results ICRP v2.4 remains as the approved plan for closure self-sustaining ecosystems. ICRP v3.0 concludes of thermal modelling, Dominion predicts that 5 and reclamation. that littoral zones are only practical in small areas m covers will be thicker than the active layer that of the Panda, Koala, Koala North and Beartooth thaws in the summer, so that the underlying waste In January 2019, Dominion submitted its 2018 pits, indicating a substantial reduction from the rock material will be permanently frozen. Keeping Closure and Reclamation Progress Report, objectives for littoral zones in ICRP v2.4. any potentially acid-generating or metal leaching including information about reclamation research waste rock permanently frozen below the active program progress and results, and progressive Both versions of the ICRP propose establishment layer is the primary mechanism for controlling acid reclamation activities. of means for wildlife to safely escape from pits, but rock drainage and metal leaching for WRSAs. ICRP v3.0 proposes no active remediation efforts CLOSURE AND to achieve this objective. Instead it proposes that The approved design for the Pigeon WRSA egress will be facilitated by inflow and outflow envisioned a cover composed of 3 m of till overlain RECLAMATION PLANS channels, pit ramps and, in some pits, littoral areas. by 1 m of non acid-generating waste rock. ICRP v3.0 proposes that further research is needed to For the most part, the basic closure concepts did Underground Mines determine whether the geochemistry of Pigeon not change between ICRP v2.4 and v3.0. However, Underground mines are all associated with pits and waste rock warrants placement of a cover (i.e., v3.0 does include substantial changes with respect will eventually be filled with water or processed whether the Pigeon waste rock is potentially acid- to details of some proposed closure activities. kimberlite (PK) as part of mine operations and pit generating or may leach metals). closure. Nonetheless, underground mines require

58 Covers are not proposed for Panda/Koala/ research plan to support decision-making about in the Panda/Koala PKCA may exceed existing Beartooth, Fox (non-kimberlite portion), Sable “the need to facilitate wildlife access/egress and operational water quality benchmarks with a 30 m or Lynx WRSAs because Dominion has concluded the number and location of access points” (ICRP freshwater cap. Dominion has proposed a research R eclamation that the rock on the surface of these facilities is v3.0, Section 5.5.4.3). Based on its preliminary plan to evaluate the depth of freshwater cap and not potentially acid-generating and will not leach evaluation included in ICRP v3.0, Dominion did required to meet water quality objectives. metals. Therefore, it considers these materials to not identify any WRSA with a high priority for be suitable as part of the active layer (i.e., subject establishment of access/egress ramps and Roads

to seasonal thaw). identified moderate priority for only Sable, Pigeon, The closure and reclamation for roads is one area losure C Misery and Lynx WRSAs. where ICRP v2.4 and ICRP v3.0 differ substantially. Dominion proposes that the closure geometry of ICRP v2.4 proposed scarifying the surface, removing WRSAs will be similar to their current configuration: Fine Processed Kimberlite culverts and flattening safety berms on all roads angle of repose rock slopes with a series of flat Containment Areas that are not required to support access for long- benches to establish physically stable overall The ICRP proposes reclamation of the Long term monitoring activities. Roads that are required slopes. The designs include stepped profiles and Lake Containment Facility (LLCF) surface using a for monitoring would be closed in the same way flat tops (intended to reduce snow build-up). Pigeon combination of vegetation and rock placement once they are no longer required. ICRP v3.0 on the WRSA is the only potential exception to this closure (Diagram 5). Both of these activities are intended other hand, proposes that: geometry. If Pigeon WRSA is covered with till, the to stabilize the surface and provide protection placement of the till will require re-grading to create from erosion by wind and water. Closure water “…some roads maybe left in place as travel flatter slopes. Dominion expects that the WRSAs will management in the LLCF involves the construction corridors, and if required, road berms will be become permanently frozen over the long term. of new drainage channels and improvement of knocked down to facilitate access and egress existing drainage channels to drain residual ponds by wildlife. Where roads are not left in place, Coarse PK stored at the Fox WRSA and the Coarse and safely convey water off of the LLCF. Dominion they will be selectively scarified and vegetated Kimberlite Rejects Containment Area needs plans to construct spillways through existing to promote natural vegetation.” protection from erosion. The closure plan entails dikes and dams to allow water to flow from one (ICRP v3.0, Section 5.8.1.2.3) either covering with non-acid generating waste cell to the next through the LLCF. Dominion is rock or active re-vegetation of the PK materials. Dominion envisions that the roads, if left in place, undertaking reclamation research intended to may facilitate wildlife movement as “potential support decisions about final design of surface One important difference between ICRP v2.4 esker complexes” (e.g., ICRP v3.0, Section 5.8.5.3.2). stabilization measures and water management. and ICRP v3.0 relates to plans for wildlife access It proposes reclamation research and engagement to WRSAs. ICRP v2.4 includes an objective for The closure and reclamation plan for fine activities to support final decision-making about providing safe access and egress to/from WRSAs, processed kimberlite (FPK) stored in the which roads should be left in place or reclaimed. and identifies the construction of access ramps for Beartooth and the Panda/Koala processed wildlife as a closure activity for all WRSAs. ICRP v3.0 Surface Infrastructure kimberlite containment areas (PKCA) involves the does not identify any objectives related to access/ All buildings, storage tanks, power lines, water establishment of freshwater caps above the FPK. egress on WRSAs and proposes that the need for pipelines and other physical structures are to be These freshwater caps are intended to result in providing safe access/egress for wildlife should removed and either buried in a landfill or shipped water quality that meets post-closure water quality be determined by evaluating recent and historical off site. Lay down pads and the airstrip are to benchmarks, which Dominion has not yet defined. caribou movement patterns, nearby habitat types, remain in place and be decommissioned so they The water quality modelling predicts that post- and proximity of WRSAs to caribou movement are safe for human and wildlife use after the mine closure concentrations of some contaminants corridors. Dominion has proposed a reclamation is closed.

59 WasteLONG Rock Placement LAKE Methods CONTAINMENT at the Ekati Mine PROGRESSIVE CLOSURE AND Dominion Diamond’s proposed construction methodology for the Jay waste rock pile differs RECLAMATION ACTIVITIES R eclamation from the method currently used at the Ekati mine of building the WRSA from the original ground FACILITY RECLAMATION In 2018, Dominion conducted progressive and

surface up in horizontal layers or lifts. The proposed approach would see diagonal layers built by end-dumping waste rock from the full height of the pile. reclamation activities at Old Camp and the Panda- AND CLOSURE Koala Underground. These activities are described in the 2018 Closure and Reclamation Progress losure

C Report, and summarized below. Dominion also conducted monitoring of previously completed progressive reclamation work, and identified any

Vegetation cover over processed Kimberlite maintenance requirements. Rocks block wind and help seeds settle Old Camp Old Camp reclamation activities began in 2014 Vegetation regrows and continued through 2018. Sampling following and spreads hydrocarbon soil excavation in 2017 revealed some remaining soils with hydrocarbon contamination Water flows through, and eventually to exceeding guideline concentrations. In 2018, Leslie Lake Dominion removed approximately 250 m3 of

Currently researching additional contaminated soil from the Old Camp different rock piles area and hauled it to the active on-site land farm and shapes for remediation. Dominion conducted confirmatory Rock along the monitoring after the 2018 excavation work, and all waterways protect soil samples had hydrocarbon concentrations less against erosion than the guidelines.

Water 2018 water quality monitoring in the constructed Vegetation over processed Kimberlite channel at the reclaimed Phase 1 pond measured Filter Dykes arsenic concentrations at some locations above the Dyke Effluent Quality Criteria specified in the Ekati Water Licence. Dominion plans to continue monitoring in the area, but asserts that natural attenuation and dilution along the flow path will reduce Leslie Lake to Lac de Gras concentrations before the water enters Larry Lake.

Diagram 5 : LLCF plan closure and reclamation

60 Panda-Koala Underground In July 2018, the Government of the Northwest

Territories (GNWT) granted approval for R eclamation Dominion to permanently leave equipment in the and underground, including the entire conveyor system. The approval requires the removal of all hydraulic oil, and that all grease left on/in equipment be losure

biodegradable. Dominion completed underground C mining activities in the Panda-Koala underground in November 2018. A GNWT inspection report dated March 12, 2019 states that the Panda-Koala underground has been decommissioned and the Panda Waste Rock Storage Area, photo Courtesy of Dominion Diamond Mines ULC portal blocked with mesh to keep wildlife out. All power, air and communications were shut down on February 26, 2019.

Security Item Amount Held Split Between Land and Water FINANCIAL SECURITY AND Reclamation Security Water Licence Security As indicated in the Table 7, GNWT holds reclamation W2012L2-0001 $271,095,482 CLOSURE PLANNING security predominantly under the Water Licence. Financial Security Ekati Environmental Agreement $19,991,424 As part of the Water Licence amendment processes for the Jay project and Misery Underground To manage public liability and risk, the GNWT needs Jay Early Works Land Use (MUG) project GNWT stated its preference to hold to hold financial security that is equal to the total Permit W2016F0007 $1,480,000 separate securities under: anticipated cost of closure and reclamation of the Ekati mine at that time. The total reclamation Pigeon Land Use Permit 1. Land use permits and leases for land-related W2016D0005 $427,000 security held by the GNWT as of December 31, 2018 liabilities, and was $293 million. This represents an increase of $8 Total $292,993,906 2. Water Licence for water-related liabilities. million from December 2017. Table 7. Ekati Mine Reclamation Security Held For both projects the WLWB determined that In January 2018, Dominion requested adjustments (December 31, 2018) security should be combined and held under the of its reclamation security to address changes in Water Licence. In an October 2018 Request for the closure liability, including: In October 2018, the WLWB concluded that any Ruling, Dominion asked WLWB to authorize splitting • An increase of $735,000 for Pigeon pit because adjustment related to the Pigeon pit should be of security for the Misery Underground (MUG) the enlargement of the pit requires an increased addressed as part of the overall ICRP v3.0 review Project land and water related liabilities because water volume for flooding as part of closure, and and additional information is required before GNWT had refused to accept a combined security • A decrease of $7.9 million for Misery WRSA making a decision about reduction of security under the Water Licence. Pending resolution of this because Dominion has covered most of the for Misery WRSA. On March 20, 2019 Dominion issue, GNWT does not hold security for liabilities exposed metasediment. submitted a request for security adjustment to associated with the MUG project. address the information request. Review of the new information is ongoing.

61 reclamation measures, facilities and activities, The Agency is concerned about proposed changes AGENCY ASSESSMENT including for progressive reclamation activities to the closure and reclamation plan that could have that are already underway or may soon start. In long-term effects on wildlife, including proposed

R eclamation Interim Closure and Reclamation Plan (ICRP) v3.0 a proactive closure planning approach, closure changes for closure of roads, pits and WRSAs that and

criteria also influence decisions about operational may affect wildlife movement and access/egress. The submission of an updated, site-wide ICRP was designs and activities. Otherwise, decisions and ICRP v3.0 proposes substantially less closure effort a positive step in planning for closure of the Ekati actions taken during operations can constrain specifically aimed at mitigating wildlife-related mine. The Agency reviewed ICRP v3.0, held five

losure future closure options and make it difficult, concerns. During the WLWB’s Technical Workshop

C community information sessions to discuss the Plan expensive or impossible to achieve closure criteria and the Agency’s community information sessions with Aboriginal Society members, and participated in and objectives. The Agency believes that well- about the ICRP, community members frequently the WLWB’s Technical Workshop January 22-23 2019. defined closure criteria, including appropriate raised concerns about the potential effects of the Closure and reclamation planning is an iterative numerical criteria (e.g., for water, sediment, air and project on wildlife, especially caribou. Additional process and ICRPs are expected to evolve and soil) provide a critical foundation for evaluating the research, evidence, analysis and engagement are develop as mining progresses. ICRPs should adequacy of the closure and reclamation activities needed before the proposed reduced efforts for increase in level of detail as the mine moves proposed in ICRP v3.0. wildlife mitigation are accepted. towards closure, with each version providing In some cases, the analyses in ICRP v3.0 rely on Overall, the Agency concluded that ICRP v3.0 has increased certainty and understanding about comparison with operational aquatic benchmarks several critical flaws that make it inadequate as the closure and reclamation. As expected, as criteria. However, Dominion does not provide a closure and reclamation plan for the present Dominion updated ICRP v3.0 to include new mine any rationale to describe why the same criteria stage of mining at the Ekati mine, and therefore the components, but the ICRP failed to provide the will be applicable at closure. Adverse conditions Agency does not support the approval of ICRP v3.0 expected increased level of detail (e.g., in closure and risks that may be acceptable during the in its current form. designs, and details about future water quality relatively short operational life of a mine may not predictions). In some areas (e.g., closure criteria, be acceptable for the ensuing 100s or 1000s of With respect to financial security and closure closure monitoring) ICRP v3.0 provides less detail years, during which the enduring structures and liabilities, the Agency continues to believe that than ICRP v2.4. In ICRP v3.0, the reduced detail contamination exist. Thus, operational criteria may closure liabilities should never be allowed to exceed about closure criteria increases uncertainty not be applicable for closure. the posted security. The Agency also remains about the expected post-closure outcomes, and convinced that there are benefits, efficiencies the lack of detail about closure designs leaves The Agency is concerned that ICRP v3.0 fails to and reduced risks that arise from holding both greater uncertainty about what the closure and provide details about monitoring closure and post- land and water securities under one regulatory reclamation will entail. closure conditions, and responding to changing and instrument. The proposed splitting of security unexpected conditions. Monitoring and adaptive into two instruments could create significant ICRP v3.0 lacks numerical closure criteria that are management are key components of the closure and challenges for making timely security adjustments needed to define the expected closure and post- reclamation plan for Ekati mine. ICRP v3.0 identifies and using security for closure activities if that closure conditions, for water, soil, sediment and the need for these activities, but provides very little becomes necessary. GNWT has indicated that there air for example. The Agency considers this to be detail. There is a generic summary of what adaptive is a legal impediment to holding security under a a major weakness of the ICRP. In an objectives- management entails, but no details about how it will single instrument. If this is the case, then this is an based closure planning approach as required by be applied at Ekati. Details about monitoring that important flaw in the current regulatory system and WLWB guidance, closure objectives and closure were included in ICRP v2.4 have been removed from it should be addressed. criteria define expected closure and post-closure ICRP v3.0, leaving little information about closure conditions and outcomes. These will influence and post-closure monitoring. the design and implementation of closure and

62 ASSESSMENT OF THE REGULATORS

HIGHLIGHTS Department of Fisheries and Oceans Canada (DFO) level of involvement in the environmental regulation of the Ekati mine was disappointing and seems to be decreasing from previous assessments;

Environment and Climate Change Canada’s (ECCC) participation in document reviews has improved in the level of detail and the number of documents reviewed; and

GNWT-ENR approved the updates to the Environmental Agreement (EA), this process began in 2015. The EA is expected to be signed shortly.

Ice road at the Ekati mine site, photo courtesy of Dominion Diamond Mines ULC → Department of Environment and Natural Resources The Bathurst Caribou Range Plan appears THE REGULATORS (ENR) : to have stalled with little progress since the egulators

R AND OUR MANDATE release of the draft engagement document Water Resources Division (WRD): Apart from in January 2018. Given the critical declines the As the public watchdog for environmental the Agency, the WRD have been the only in caribou herds, the Agency believes that

of management at the Ekati mine, the Agency regulator that consistently provides detailed completion and implementation of this plan monitors the performance of the operator as well comments and analysis, including consultant should be a top priority. as agencies that regulate the mine. The following input when necessary. Their analysis and are our comments regarding the regulators’ input was particularly helpful for major Environment Division: The Agency has not performance in 2018-19. reviews, including the ICRP v3.0, Panda- been made aware of any developments at the ssessment

A Koala Deposition Study, and the Waste Rock Environment Division that relates to the Ekati mine. and Ore Management Plans. In the Agency’s AGENCY’S OVERALL opinion, this input improved participants’ Crown-Indigenous Relations ASSESSMENT understanding of review topics and provided and Northern Affairs Canada relevant information to help inform the Following devolution of its land and water As in previous years, the regulators as a whole Wèk'eezhìı Land and Water Board’s decision. management responsibilities to the Government remain effective in ensuring that Dominion of the Northwest Territories (GNWT), Crown- operates the Ekati mine in an environmentally Conservation, Assessment and Monitoring Indigenous Relations and Northern Affairs sound manner. The majority of regulators’ time Division: This Division is responsible for Canada (CIRNAC) has a much-diminished role in and expertise during 2018-19 was focused on the administering Ekati’s Environmental Agreement. environmental regulatory processes including updated Interim Closure and Reclamation Plan v3.0, The process of updating the Environmental involvement with the Environmental Agreement. finalization of Misery under-ground and potassium Agreement was initiated in 2015. The addendum Each year the Agency has an Annual General amendments, deposition of Processed Kimberlite and release document was signed on Meeting (AGM) and an Implementation Meeting in into Panda-Koala pits, updates to the Waste Rock November 21, 2018. The updated version of the order to meet its obligations under its bylaws and and Ore Management Plans, and various responses Environmental Agreement has yet to be finalized, the Environmental Agreement. Although CIRNAC plans. Over the course of the year, the Agency signed and distributed. This process continues to did not attend the AGM, the Agency was glad that a identified some instances where we felt that take much longer than expected. representative from CIRNAC was able to participate government agencies and regulators performed at a follow up Special Meeting of the Society Wildlife Division: The Agency was disappointed well and some instances where their involvement (necessary due to not meeting quorum during the with wildlife division’s lack of participation in could have been improved. AGM). We hope to see increased participation from the regulatory process. The ICRP v3.0 review CIRNAC at future meetings. Government of the Northwest Territories process is ongoing with important issues being Department of Lands: The Agency is pleased that raised regarding how to best close the mine site a regular inspections routine was maintained in in relation to wildlife and caribou movement 2018-19 (12 water licence and 4 operational land use and usage in particular. Unfortunately the permit operational inspections, 6 exploration land wildlife division did not provide any comments use permit inspections). The inspections for the to the ENR submission nor did they attend the Ekati mine continue to be thorough and effective. technical workshop in January 2019.

64 Fisheries and Oceans Canada Environment and Climate Change Canada Wèk'eezhìı Land and Water Board

Fisheries and Oceans Canada (DFO) involvement Environment and Climate Change Canada’s (ECCC) The Agency is pleased with the WLWB’s egulators with the regulatory process this past year has been involvement in the regulatory processes for the management of the Water Licence, Land Use R negligible. They provided a single comment and Ekati mine has steadily improved over the last few Permits and management plans associated with the recommendation requesting the use of silt curtains years. In 2018-2019 both the level of detail and the the operation of the Ekati mine. Of note, the level of for the Sable Diffuser Construction Plan. They did number of documents reviewed have increased. of detail provided in the Board’s recent Reasons for not comment on several other key documents Of particular note were comments on the ICRP 3.0, Decision is excellent, as this helps the Agency and that could have potential impacts to fish and fish WROMP 10, and the Panda-Koala Deposition Study. others to understand the rational for the decision health including the Aquatics Effect Monitoring We were also glad to see that ECCC had one of their and clarify requirements for future revisions. The

Plan (AEMP), AEMP Response Plans, Waste Water regional experts call in from Winnipeg for the ICRP Agency notes however, the need for the WLWB ssessment A and Process Kimberlite Plan v8.0 with associated Technical Workshop. Their involvement is important to better ensure the inter-relationship between Panda-Koala Deposition Plan, Jay AEMP Design and welcome. review decisions is maintained (e.g., while several Plan, and the Interim Closure and Reclamation aspects of water quality modelling related to the Plan. Considering DFO’s technical expertise and ECCC has finalized changes to the federal Metal Panda/Koala Deposition Study were deferred to the their mandate it is very disappointing that a and Diamond Mining Effluent Regulations. The process to update the ICRP, the proposed ICRP v3.0 Federal Agency is not able to provide greater input regulations now include diamond mining. Dominion did not address this issue). The Agency would like to the regulatory system. is now required to comply with these regulations in to highlight the importance of alternative methods addition to requirements under its Water Licence. of communications (e.g., technical workshops) on major subjects of review (e.g., ICRP v3.0) as it allows for clarification, discussion and information exchange with Dominion and other participants.

Haul truck carrying kimberlite ore leaving open pit

65 ASSESSMENT OF DOMINION DIAMOND MINES

HIGHLIGHTS Dominion was generally responsive to written comments on management plan submissions, but reluctant to discuss concerns during the ICRP technical workshop in a meaningful way.

The Agency’s annual on-site visit to the Ekati mine was constrained by Dominion to one day.

←←Falcon, photo Courtesy of Dominion Diamond Mines ULC ULC M ines D iamond ominion D of ssessment A

Caribou on Ekati minesite, photo Courtesy of Dominion Diamond Mines ULC.

With only minor exceptions, Dominion continues to providing independent comments and advice to With the development of several new pits (Misery operate the Ekati mine in compliance with its water address community concerns. When meetings are Underground, Lynx, Sable, etc.), construction of the and land licences and permits. not held, the quality of analysis we are able to Sable road, and ongoing concerns with Waste Rock provide is impaired and the ability of our Aboriginal Storage Areas in recent years it is not possible to Following a trend set in the last few years, Society members to participate in the review effectively visit and discuss with Dominion staff the Agency again felt that Dominion’s overall process is compromised. Due to high workloads, all the areas of interest in a single day. In addition engagement and responses to comments over Aboriginal Society members are more likely to to the obvious advantage of being onsite, there the course of the 2018-19 review period were attend a meeting on a topic of interest than are many less tangible benefits such as having disappointing. The depth and transparency of submit lengthy written comments. The Agency is more time for general discussion, understanding technical discussions at workshops and written disappointed to see that Dominion does not take perspectives and relationship building with comments were poor. The Agency believes the full advantage of the face to face meetings with Dominion staff that can’t be accomplished with a quality of engagement and discussion at meetings regulators and community representatives. shortened visit. While the Agency acknowledges are not at the same high level as they have been the increasing operational and financial challenges historically. In the past Dominion has been very accommodating Dominion are currently facing, we feel that a in providing the Agency with a two-day overnight minimum of two days at site each year is important Meetings with Dominion and regulators are a site visit each year to view mine operations. While in enabling us to fulfill our mandate. critical component of any review system as they scheduling the 2018 site visit, the Agency was allow for all parties present to be aware of the informed we would only be able to do a day trip. topics and discuss options and solutions. They This greatly limited our ability to see the whole site, also enable the Agency to meet our mandate in forcing us to focus on a few key areas of interest.

67 FINANCIALS

The Independent Environmental Monitoring Agency had a financial audit completed for fiscal year 2018-2019 in accordance with Canadian accounting standards for not-for-profit organizations.

←←Photo courtesy of Dominion Diamond Mines ULC STATEMENT RESPONSIBILITY July 31, 2019 TreasurerKim Poole, Secretary Agency. the from directives and legislation specified with accordance in respects, significant inall are, audit this of course inthe notice his to come that transactions the whether considers also Auditor The standards. auditing accepted generally with accordance in statements financial the on opinion an expressing of purpose the for audit objective independent, an provides annually Auditor The to are IEMA. appropriate that conduct of standards maintaining for and principles, business sound and laws applicable of requirements the with inaccordance affairs Agency's the conducting for responsibility its recognizes management Agency's The responsibility. of areas well-defined and appropriate within performance for accountability and manuals, procedures and policies written employees, training and in hiring standards quality include controls These maintained. are records proper and safeguarded are assets authorized, are transactions that assurance provide to designed controls internal of system necessary the maintains management derived, are they which from systems accounting the for and statements financial the of fairness and integrity the for responsibility its In discharging materiality. of limits reasonable to consideration appropriate giving management, by estimates and judgments informed on based are that amounts include statements the necessary Where Organizations. Not-for-Profit for standard accounting Canadian with inaccordance prepared been have They provided. information the of objectivity and integrity reliability, the for responsible is which management, by prepared been have statements financial accompanying The

69 Financials inancials

F INDEPENDENT AUDITORS’ REPORT

Opinion Basis for Opinion In preparing the financial statements, management We have audited the accompanying financial We conducted our audit in accordance with is responsible for assessing IEMA's ability to statements of Independent Environmental Canadian generally accepted auditing standards. continue as a going concern, disclosing, as Monitoring Agency (IEMA), which comprise the Our responsibilities under those standards are applicable, matters related to going concern and statement of financial position as at March 31, 2019, further described in the Auditor's Responsibilities using the going concern basis of accounting unless and the statement of operations, statement of for the Audit of the Financial Statements section management either intends to liquidate IEMA or to changes in net assets and statement of cash flows of our report. We are independent of IEMA in cease operations, or has no realistic alternative for the year then ended, and notes to the financial accordance with the ethical requirements that are but to do so. statements, including a summary of significant relevant to our audit of the financial statements Those charged with governance are responsible for accounting policies. in Canada, and we have fulfilled our other overseeing IEMA's financial reporting process. ethical responsibilities in accordance with these In our opinion, the accompanying financial requirements. We believe that the audit evidence statements present fairly, in all material we have obtained is sufficient and appropriate to respects, the financial position of IEMA as at provide a basis for our opinion. March 31, 2019, and the results of its operations and its cash flows for the year then ended in Responsibilities of Management and accordance with Canadian accounting standards Those Charged with Governance for the for not-for-profit organizations. Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

70 the Financialthe Statements of Audit the for Responsibilities Auditor's • We also: audit. the throughout skepticism professional maintain and judgment professional exercise we standards, auditing accepted generally Canadian with inaccordance audit an of part As statements. financial these of basis the on taken users of decisions economic the influence to expected be reasonably could they aggregate, in the or individually if, material considered are and error or fraud from arise can Misstatements exists. it when misstatement amaterial detect always will standards auditing accepted generally Canadian with inaccordance conducted audit an that aguarantee not is but assurance, of level ahigh is assurance Reasonable opinion. our includes that report auditor's an issue to and error, or fraud to due whether misstatement, material from free are whole as a statements financial the whether about assurance reasonable obtain to are objectives Our fraud is higher than for one resulting from error, error, from resulting one for than higher is fraud from resulting misstatement amaterial detecting not of risk The opinion. our for abasis provide to appropriate and sufficient is that evidence audit obtain and risks, those to responsive procedures audit perform and design error, or fraud to due whether of the financialstatements, misstatement material of risks the assess and Identify • • • IEMA to cease to continue as a going concern. agoing as continue to cease to IEMA cause may conditions or events future However, report. auditor's our of date the upto obtained evidence audit the on based are conclusions Our opinion. our modify to inadequate, are disclosures or,such if statements financial inthe disclosures related the to report auditor's in our attention draw to required are we exists, uncertainty amaterial that conclude we If concern. a going as to continue ability on IEMA's doubt significant cast may that conditions or events to related exists uncertainty amaterial whether obtained, evidence audit the on based and, accounting of basis concern going the of use management's of Conclude appropriateness on the made by management. disclosures related and estimates accounting of reasonableness the and used policies accounting of appropriateness the Evaluate control. internal IEMA's of effectiveness the on opinion an expressing of purpose the for not but circumstances, inthe appropriate are that procedures audit design to inorder audit the to relevant control internal of understanding an Obtain control. internal of override the or misrepresentations, omissions, intentional forgery, collusion, involve may fraud as statements on August 2, 2018. 2, August on statements those on opinion unmodified an expressed who auditor another by audited were 2018 31, March ended year the for of IEMA statement financial The Matters Other audit. our during identify we that control ininternal deficiencies significant any including findings, audit significant and audit the of timing and scope planned the matters, among other governance regarding, with charged those with We communicate • achieves fair presentation. fair achieves that inamanner events and transactions underlying the represent statements financial the whether and disclosures, the including statements, financial the of content and structure presentation, overall the Evaluate EPR Yellowknife Accounting Accounting Yellowknife EPR Professional Corporation Professional Yellowknife, Canada July 31, 2019

71 Financials STATEMENT OF

CHANGES IN NET ASSETS 2018 For the year ended March 31 2019 2018 inancials F See accompanying notes. Tangible Tangible Unrestricted Unrestricted Total Capital Total Capital Funds Funds Asset Fund Asset Fund BALANCE, BEGINNING OF YEAR $12,086 $8,655 $3,431 $12,086 $6,939 $5,147 Excess of revenues over Expenditures $- $- $- $- $- $- Amortization $- $1,033 ($1,033) $- $1,716 ($1,716) Additions $- $- $- $- $- $- BALANCE, END OF YEAR $12,086 $9,688 $2,398 $12,086 $8,655 $3,431

2019 2018 STATEMENT OF 2019 2018 FINANCIAL POSITION ASSETS CURRENT For the year ended March 31 Cash $69,692 $124,546 See accompanying notes. Restricted cash (Note 5) $506,528 $376,561 Prepaid expenses $526 $2,473 $576,746 $503,580 Tangible capital assest (Note 6) $2,398 $3,431 TOTAL ASSETS $579,144 $507,011 Approved on behalf of the board: LIABILITIES CURRENT Accounts payable and accrued liabilities (Note 7) $60,531 $118,364 Deferred revenue (Note 8) $356,875 $348,851 Jaida Ohokannoak, Chairperson Contributions repayable (Note 9) $149,652 $27,710 $567,058 $494,925 FUND BALANCES Unrestricted Fund $9,688 $8,655 Tangible Capital Asset Fund $2,398 $3,431 Kim Poole, Secretary-Treasurer TOTAL NET ASSETS $12,086 $12,086 TOTAL LIABILITIES AND NET ASSETS $579,144 $507,011

72 See accompanying notes. accompanying See 31 March ended year the For OPERATIONS STATEMENT OF

Separate fund Community consultation Board support REVENUES EXCESS OF REVENUES OVER EXPENSES FOR THE YEAR OTHER ITEMS EXCESS OF REVENUES OVER EXPENSES FROM OPERATIONS TOTAL EXPENSES EXPENSES TOTAL REVENUES Auditing andbookkeeping fees Interest income Seperate fund-DominionDiamondMinesULC Core fund-DominionDiamondMinesULC Unspent funding-separate fund Unspent funding-core Wages andbenefits Telephone andfax Staff travel Staff recruitment - travel andadministration - honoraria Rent- office andmaintenance Rent -facility rental Professional development Postage andcourier Office supplies Insurance Equipment Consultants - community visits - annual report - annual general meeting - travel, meals andaccomodations - honoraria Amortization Advertising andpromotion ($109,874) ($149,652) $550,801 ($39,778) $700,453 $149,652 $657,702 $112,069 $241,251 $40,000 $36,333 $10,665 $31,526 $15,652 $51,189 $6,826 $4,539 $4,539 $5,072 $1,033 ($100) $2,751 $2,711 $286 $212 2019 $37 $- $- $- $- $- $- $660,620 ($10,203) $688,330 ($27,710) ($17,507) $160,650 $646,715 $221,538 $40,000 $30,928 $19,883 $26,570 $ $32,533 $19,283 $42,431 $21,422 $19,778 $13,116 $4,550 $2,609 $2,928 $2,928 $6,734 27,710 $1,335 $1,615 $1,716 $499 $233 $297 2018 $87 $- 73 Financials STATEMENT OF 2019 2018 CASH PROVIDED BY (USED IN) CASHFLOWS Operating activities Excess of revenue over expenses $- $-

inancials For the year ended March 31 F See accompanying notes. Items not affecting cash Amortization $1,033 $1,716 $1,033 $1,716 CHANGES IN NON-CASH WORKING CAPITAL BALANCES Increase in prepaid expenses $1,947 $1,579 Increase (Decrease) in accounts payable and accrued liabilities ($57,833) $54,683 Increase (Decrease) in deferred revenue $8,024 $5,494 Increase (Decrease) in contributions repayable $121,942 (509) Net change in non-cash working capital balances $74,080 $61,247 Net cash provided by (used in) operating activities $75,113 $62,963 Investing activity Purchase of capital assets $- $- Increase (decrease) in cash and cash equivalents $75,113 $62,963 CASH, AT BEGINNING OF YEAR $501,107 $438,144 CASH, AT END OF YEAR $576,220 $501,107 Cash consists of: Operating cash $69,692 $124,546 Restricted cash $506,528 $376,561 $576,220 $501,107

74 Operating activities Increase (decrease) in cash andcash equivalents Investing activity Items notaffecting cash CASH PROVIDED BY (USED IN) CASH, AT END OF YEAR CASH, AT BEGINNING OF YEAR CHANGES IN NON-CASH WORKING CAPITAL BALANCES Restricted cash Operating cash Cash consists of: Amortization Excess ofrevenue over expenses Purchase ofcapital assets Net cash provided by (usedin)operating activities Net change innon-cash workingcapital balances Increase (Decrease) incontributions repayable Increase (Decrease) indeferred revenue Increase (Decrease) inaccounts payable andaccrued liabilities Increase inprepaid expenses $ $576,220 $576,220 ($57,833) $501,107 $ 506,528 $ $74,080 121,942 $75,113 $75,113 69,692 $8,024 $1,033 $1,033 $1,947 2019 $- $- $124,546 $438,144 $376,561 $501,107 $501,107 $54,683 $62,963 $62,963 $61,247 $5,494 $1,716 $1,579 $1,579 $1,716 (509) 2018 $- $- FINANCIAL STATEMENTS STATEMENT ON See accompanying notes. accompanying See 31 March ended year the For

Territories. Northwest inthe site Diamond Ekati the of management environmental oversee to is Agency the of mission The Tax Act. Income the of 1)(i) 149( Section under tax income from exempt is It Territories. Northwest the of Act Societies the under incorporated organization anot-for-profit is Agency") ("the Agency Monitoring Environmental Independent 1. ORGANIZATION JURISDICTION AND these financial statements. financial these of preparation the in management by used policies accounting significant the of summary the is following The ACCOUNTING POLICIES SIGNIFICANT 3. organizations. profit not-for- for Standards Accounting Canadian with accordance in prepared are statements financial These below. out set policies accounting significant the with accordance in prepared been have statements financial These ACCOUNTING OF BASIS 2. b) accounting Fund a)

useful lives at the following rates: following the at lives useful estimated their over method balance declining the by calculated is Amortization inEquipment. invested assets net and asset the both to areduction as applied is Amortization cost. at recorded are Assets Capital Tangible assets capital and disposal. amortization accumulated less acquired equipment of cost historical the record -to inEquipment Investment Agency. the of activities general the record Fund -to Unrestricted Agency. the by restricted internally are and maintained are funds following The activities. specific to according resources classify to established accounts of a set is Afund accounting. fund of principle the with inaccordance maintained are Agency the of accounts The Website Computer Equipment-New Computer Equipment Equipment

30%

55% 30% 20%

75 Financials 3. SIGNIFICANT ACCOUNTING POLICIES (CONTD ... )

Tangible capital assets (Contd ... )

inancials When tangible capital assets are sold or retired, the related cost and accumulated amortization are F removed from the accounts and any gain or loss is charged against earnings in the period.

Tangible capital assets acquired or constructed during the year are not amortized until they are put into use.

One half of the year's amortization is recorded in the year of acquisition. No amortization is recorded in the year of disposal.

c) Financial instruments - recognition and measurement

Independent Environmental Monitoring Agency measures its financial assets and financial liabilities at fair value. The Agency subsequently measures all of its financial assets and financial liabilities at amortized cost, except for investment in equity instruments that are quoted in an active market, which are measured at fair value. Changes in fair value are recognized in the statement of operations.

Financial assets measured at cost include cash and cash equivalents, term deposits and restricted cash. Financial liabilities that are measured at cost include accounts payable and accrued liabilities and contributions repayable.

d) Impairment

Financial assets measured at amortized cost are tested for impairment when there are indicators of possible impairment. At the end of each reporting period, management assesses whether there are any indications that financial assets measured at cost or amortized cost may be impaired. When a significant adverse change has occurred during the period in the expected timing or amount of future cash flows from the financial asset or group of assets, a write-down is recognized in net income. The write down reflects the difference between the carrying amount and the higher of:

࢖࢖ the present value of the cash flows expected to be generated by the asset or group of assets;

࢖࢖ the amount that could be realized by selling the assets or group of assets;

࢖࢖ the net realizable value of any collateral held to secure repayment of the assets or group of assets.

When the events occurring after the impairment confirm that a reversal is necessary, the reversal is recognized in net income to a maximum of the accumulated impairment loss recorded in respect of the particular financial asset.

76 4. FUTURE ACCOUNTING FUTURE 4. CHANGES g) Use of Estimates of Use g) Revenue recognition f) e) revenue Deferred differ from those estimates. those from differ could results year. Actual the during expenses and revenues of amounts reported the and date sheet balance the at liabilities and assets contingent of disclosure and liabilities and assets of amounts reported the affect that assumptions and estimates make to management requires organizations profit not-for for standards accounting Canadian with inconformity statements financial of preparation The earned. when recognised is income Interest assured. reasonably is collection its and estimated reasonably be can amount the if or receivable or received are they when revenue as recognized are contributions occur. Unrestricted expenses related inwhich year inthe revenue as recognized are contributions Restricted contributions. for accounting of method deferred the follows Agency The year. fiscal next the within repaid be funds or completed be will program the that expected is it as liability acurrent as reported is year. It subsequent the into agreement by transferred are that year fiscal the during received amounts contribution unexpended the is revenue Deferred is permitted. permitted. is Application 2019. Earlier 1, January after or on beginning periods annual for effective are standards new The respectively. 4440 and 4432 4431, Section replace standards) new (the 4441 and 4434 4433, Section method. same the using for accounted are collections All position. financial of statement the on value nominal or cost either at position financial of statement the on recorded are assets) similar or treasures historical arts, of work includes which ( collections that states Organizations Not-for-Profit by held Collections 4441, Section asset. tangible acontributed of cost the determine to how on guidance no was there Previously, use. intended its for necessary condition the and location the at installing including acquisition, it to attributable directly cost all plus contribution of date the at value fair be to deemed is assets capital tangible of contributed cost the that states Organizations Not-for-Profit by Held Assets Intangibles 4434 Section and Organizations Not-for-Profit by Held Assets Tangible Capital 4433 Section Book. Hand Canada CPA the of Organizations) Not-for-Profit for Standards Accounting III ( inpart standards new following the issued (AcSB) Board standards Accounting the 2018, In March 77 Financials 5. RESTRICTED CASH Restricted cash represents cash received from Dominion Diamond Mines ULC that is intended for a specific purpose or represents the amount to repay.

inancials 2019 2018 F Cash received in advance for the next fiscal year (Note 8) $356,876 $348,851 Cash repayable from annual surplus (Note 9) $149,652 $27,710

$506,528 $376,561

6. TANGIBLE CAPITAL ASSETS

Accumulated 2019 2018 Cost Amortization Net Book Value Net Book Value

Equipment $13,065 $11,718 $1,347 $1,684 Computer equipment 8,521 8,211 $310 $689

Website 15,120 14,379 $741 $1,058

$36,706 $34,308 $2,398 $3,431

7. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 2019 2018 Accounts payable and accrued liabilities $21,875 $99,861

Payroll remittances-Canada Revenue Agency $12,560 $10,932

GNWT-Payroll taxes $4,968 $6,019

Salaries and benefits payable $21,128 $1,552

$60,531 $118,364

8. DEFERRED REVENUE Deferred revenue consists of payments received in advance and is intended for the upcoming fiscal year expenditures.

2019 2018 Received from Dominion Diamond Mines ULC $356,875 $348,851

78 10. COMMITMENTS 2019/2020 the contributions. from deducted be to is which of$149,652 contributions excess had Agency the year, the year. In fiscal following inthe ULC Mines Diamond Dominion by provided contributions from deducted normally are year fiscal one from arising repayable Contributions 9. REPAYABLE CONTRIBUTIONS The Agency is exposed to the following risks in respect of certain of the financial instruments held: instruments financial the of certain of inrespect risks following the to exposed is Agency The outlays. cash infuture result will which repayable contributions and revenue, deferred liabilities, accrued and payable accounts as well as cash restricted and deposits term equivalents, cash and cash of amounts recorded of consist instruments Financial INSTRUMENTS FINANCIAL 12. legislation. by governed is arrangement funding The ceased. or curtailed substantially was funding the if affected significantly be would operations that opinion the of is Management ULC. Mines Diamond Dominion from funding contribution its of all receives Agency The 11. ECONOMIC DEPENDENCE -$31,500). (2018 $31,500 is contract month-to-month existing the on based is year next the for payment The location. nor agreements inrental changes for plans immediate no are there space; office for (month-to-month) lease operating an has Agency the 2019 31, March at As Dominion DiamondMinesULC Separate Funding Dominion DiamondMinesULC Core Funding (b) risk Liquidity risk (a) Credit Agency cannot repay its obligations when they become due to its creditors. This risk has not changed from from changed not has risk This creditors. its to due become they when obligations its repay cannot Agency the that risk the is risk Liquidity -$118,364). (2018 $64,213 of repayable contributions and liabilities accrued and payable accounts the in risk liquidity a have does Agency liabilities.The financial the with associated obligation its meeting in difficulty have will entity an that potential the from arises risk Liquidity year. prior the from changed not has risk This institution. financial one at held is cash of balance full as risk credit of aconcentration has Agency the Furthermore, limit. insurable the of inexcess bank chartered one with funds having of aresult as 107) -$501, (2018 576,220 of$ cash restricted and deposits, term equivalents, cash incash, risk credit have does Agency The obligations. its perform to fail will party acounter that potential the from arises risk Credit $149,652 $109,874 $39,778 2019 $10,203 $27,710 $17,507 2018 79 Financials the prior year. The Agency manages liquidity risk by continually monitoring actual and forecasted cash flows from operations to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due, without incurring unacceptable losses or risking damage to the Agency's reputation. The Agency has determined that the risk is not significant.

inancials 13. COMPARATIVE AMOUNTS F The financial statements have been reclassified, where applicable, to conform to the presentation used in the current year.

SUMMARY OF WORK PLAN AND CORE BUDGET 2019-20 AND 2020-21

The work plan for 2019-20 is based on the direction and feedback received from Activity Forecasted Proposed Proposed 2018-19 2019-20 2020-21 our Society Members at our annual general meeting (AGM) and the Agency’s own initiatives. Board Meetings 51,549 92,530 94,000 The second year of the work plan, 2020-21, will be refined and modified based Review of Documents 78,747 66,295 67,300 on direction received during next year’s AGM, and any changes or modifications to activities at the Ekati mine. Separate Fund 212 40,000 40,000 Dominion Diamond Mines ULC (Dominion), as the owner of the Ekati mine, Communications 102,255 169,060 171,595 is solely responsible for funding the Agency in accordance with the 2006 Outside Contracts 0 10,000 10,000 Resolution Agreement. The Agency’s budget for 2019-20 is $713,749 while the budget for 2020-21 is projected to be $724,456 which reflects an assumed Management and Admin 318,037 329,880 334,800 increase in Canada’s Annual Consumer Price Index (CPI) of 1.5%.

Total 550,800 707,765 717,695

Approved 697,665 713,749 724,455

Table 8. Core Budgets 2019-20 and 2020-21

80 MAJOR ACTIVITIES

Board Meetings and Conference Calls There is also the Implementation meeting with Outside Contracts Board meetings are held three to four times per year. Dominion, GNWT, Indigenous and Northern Affairs On occasion, the Agency turns to other experts to

They provide an opportunity for Directors to discuss, Canada, and the Agency which focuses on the help review reports, studies, and plans. FINANCIALS review, and make recommendations on recent, ongoing implementation of the Environmental Agreement. and anticipated initiatives. Guests are invited to meetings Proposed Activities 2019-20: It is difficult to predict to provide updates and receive input on their specific A similar workload is expected in 2020-21. what, if any, outside expertise the Agency may activities. Dominion, Wek’eezhı̀ı Land and Water Board commission, but expects the review of Aquatic (WLWB), and Government of the Northwest Territories Separate Fund Activities Effects Monitoring Program Design Plan and Re- evaluation may require some outside expertise. (GNWT) inspectors are regular guests. The Resolution Agreement establishes a Separate Fund of up to $40,000 per year for Agency expenses Proposed Activities: Annually, three to four board where a public hearing is reasonably assured as Management and Administration meetings, including follow up and administration. indicated in approved work plans or budgets, or as The Agency provides the majority of its management Review of Reports, Plans and Programs, and confirmed by a regulatory body. and administrative services through its Yellowknife Implementation of the Environmental Agreement office and staff of an Executive Director and a Proposed Activities: There currently is no Public Communications and Administration Specialist. The Directors review and make recommendations on the Hearing process expected for 2019-2020. Agency manages its own office space and equipment. major reports, programs, studies and plans required The Agency is not expecting a public hearing process under the Environmental Agreement, water licences, Proposed Activities 2019-20: Maintain current staff for 2020-21. and other regulatory approvals. and benefit levels.

Proposed Activities: The Agency expects to review Consultation and Communication The same activities are anticipated in 2020-21. the following reports in 2019-20: Consultation and communications with our Society Members and the general public is an important part • The regular environmental monitoring annual of the Agency’s mandate. reports for 2019 under the Environmental Agreement and water licence; Proposed Activities 2019-20: The Agency will maintain • Environmental Impact Report; its visits to communities. The Agency will continue to • Interim Closure and Reclamation Plan; produce technical and plain language annual reports, a pamphlet summarizing the annual reports for • Aquatic Effects Monitoring Program Design Plan distribution to all households, and attend workshops and Re-evaluation; and meetings relevant to our mandate. The Agency • Aquatic Response Framework - Response Plans; will continue to maintain its website, the Ekati mine • Air Quality Emission Monitoring and Management Timeline and public registry. The Agency will also be Plan (consolidated) implementing other parts of our Communications • Dust Suppression Pilot Project Interim Report; Plan including printed material.

• Various management plans and updates including Similar activities are anticipated in 2020-21. the Caribou Road Management Plan; Wildlife Effects Monitoring Plan.

81 lossary ACRONYMS AND GLOSSARY

AEMP – Aquatic Effects Monitoring Program ENR – Department of Environment and Natural REA – Report of Environmental Assessment A cronyms G & Resources (GNWT) AQMP – Air Quality Monitoring Program Review Board – Mackenzie Valley Environmental EPA – NWT Environmental Protection Act Impact Review Board AQEMMP – Air Quality and Emissions Monitoring and Managment Plan GNWT – Government of the Northwest Territories SLEMA – Snap Lake Environmental Monitoring Agency AES – Aquatic Ecology Synthesis GTC – Ground Temperature Cable SNP – Surveillance Network Program ARD – Acid Rock Drainage HVAS – High Volume Air Samplers SSMMP – Suspended Sediment Monitoring and ARF – Aquatic Response Framework IACT – Inter-Agency Coordinating Team Management Plan CAM – Continuous Air Monitoring ICRP – Interim Closure and Reclamation Plan TK – Traditional Knowledge CCME – Canadian Council of Ministers of the INAC – Indigenous and Northern Affairs Canada TKEG – Traditional Knowledge Elders Group Environment KIA – Kitikmeot Inuit Association TOC – Total Organic Carbon CIMP – Cumulative Impact Monitoring Program KPSF – King Pond Settling Facility TDS – Total Dissolved Solids CPI – Consumer Price Index LKDFN – Lutselk’e Dene First Naiton TSP – Total Suspended Particulate CRMP – Caribou Road Mitigation Plan LLCF – Long Lake Containment Facility TSS – Total Suspended Solids CPKSA – Coarse Processed Kimberlite Storage Area LUP – Land Use Permit WEMP – Wildlife Effects Monitoring Program DDEC – Dominion Diamond Ekati ULC (“the MVEIRB – Mackenzie Valley Environmental Impact company”) WEMPlan – Wildlife Effects Monitoring Plan Review Board DFO – Fisheries and Oceans Canada WLWB – Wek’eezhìi Land and Water Board NSMA – North Slave Métis Alliance DO – Dissolved Oxygen WRSA – Waste Rock Storage Area NWT – Northwest Territories DNA – deoxyribonucleic acid YKDFN – Yellowknives Dene First Nation PAG – Potential Acid Generating EQC – Effluent Quality Criteria VEC – Valued Ecosystem Component PDC – Panda Diversion Chanel ECCC – Environment and Climate Change Canada ZOI – Zone of Influence PK – Processed Kimberlite EIR – Environmental Impact Report PSD – Pigeon Stream Diversion EMAB – Environmental Monitoring Advisory Board QA/QC – Quality Assurance/Quality Control

82 Action Levels – A predetermined change to input into management practices not covered Schist – A large group of coarse-grained lossary a monitored variable or other qualitative or by other authorizations. Parties include BHPB metamorphic rocks which readily split into thin quantitative measure that requires the Licensee to and the federal and territorial governments. plates or slabs as a result of alignment of lamellar take appropriate actions that may include, but that Akaitcho Treaty 8 First Nations (LKDFN and YKDFN), or prismatic minerals. are not limited to: further investigations, changes Kitikmeot Inuit Association, North Slave Métis to operations, or enhanced mitigation measures. Alliance and T i¸cho¸ Government were involved in Slave Geological Province – Area between the

the negotiations. City of Yellowknife and the Arctic coast. A cronyms G & Adaptive Management – A management system with continual monitoring so that if initial Hydrocarbons – Organic compounds which Tailings – See “Processed Kimberlite”. mitigation measures are ineffective, additional or contain only hydrogen and carbon. This includes Total Suspended Particulates – The fraction alternative mitigation is applied to keep the impact fossil fuels (i.e., coal, petroleum and natural gas) as of airborne particulates that will remain airborne within acceptable levels. well as their derivatives, such as plastics, solvents after their release in the atmosphere. and oils. Benthos – The sediments and mud at the bottom Valued Ecosystem Component – Environmental of rivers, lakes and ponds that can contain living Kimberlite – A rare, potentially diamond bearing element of an ecosystem that is identified as organisms. Benthic invertebrates such as fly larvae iron and magnesium rich rock from deep in the having scientific, social, cultural, economic, and clams are an important food source for small fish. earth’s mantle. Kimberlites are generally found as historical, archaeological or aesthetic importance. vertical pipe-like structures. Chloride – Salt resulting from the combination Waste Rock – Rock containing diamonds but of the gas chlorine with a metal. Fish and aquatic Molybdenum – A metal that can affect trout just too low in grade to be mined or processed communities cannot survive in water with high after they hatch. economically. Also other rock that must be levels of chlorides. Nitrate – A nutrient, like a fertilizer, derived from removed to access kimberlite pipes. Cladocera – An order of small crustaceans (i.e., nitrogen. Nitrate can affect the growth of baby fish Waste Rock Seepage – Water that drains through zooplankton) that live in water (commonly called if it gets too high. the waste rock piles. This water may pick up water fleas). Phytoplankton – Microscopic plants (e.g., algae) contaminants as it touches the waste rock and may Consultation – (i) The provision, to the party to found in freshwater and ocean environments. They enter the receiving environment. be consulted, of notice of a matter to be decided are an important food source for zooplankton. Wastewater – Water that contains wastes from the in sufficient form and detail to allow that party to mining process, including sewage and chemicals prepare its views on the matter; Processed Kimberlite – The waste material and water mixture that is left over after the mill from explosives. (ii) The provision of a reasonable period of removes the diamonds from the ore. Also referred Zone of Influence – Area of reduced caribou time in which the party to be consulted may to as “tailings”. occupancy. prepare its views on the matter, and provision Progressive Reclamation – Reclamation that of an opportunity to present such views to the Zooplankton – The small, mostly microscopic can be carried out during the construction and party obliged to consult; and (iii) Full and fair animals that live suspended in freshwater (and operation phases of a mine prior to final closure consideration by the party obliged to consult of ocean) environments. Zooplankton feed on (e.g., rock waste dumps). any views presented. phytoplankton and small particles in the water. They are an important food source for small fish. Environmental Agreement – Created as a legally Reclamation – The recovery to viable ecosystems binding instrument to provide monitoring and of areas of land and water bodies that have been disturbed during mining.

83 BIOGRAPHIES DIRECTOR BIOGRAPHIES

JAIDA OHOKANNOAK | CHAIRPERSON JESSE JASPER

APPOINTED BY KITIKMEOT INUIT ASSOCIATION IN 2003 APPOINTED JOINTLY BY GOVERNMENTS OF CANADA AND THE NWT, AND DOMINION DIAMOND IN 2016 For over 20 years, Jaida Ohokannoak has lived and worked in small northern communities. She currently resides in Nunavut. Jaida has Jesse Jasper retired in 2011 after 39 years of service. Since 1971 he has significant experience, knowledge and expertise in environmental worked exclusively in northern Canada, focusing on land and water assessment, research, monitoring and renewable resource management. resource development, water monitoring studies to evaluate impacts She believes mining can be conducted in an environmentally responsible on development. He coordinated a number of reviews and technical manner to the benefit of both industry and local peoples without long-term presentations for environmental impact assessments, including NWT adverse impacts to the environment. Diamond Project, which is now the Ekati Diamond Mine. Jesse represented INAC and EC on a number of boards, including the Mackenzie River Basin Board, the NWT Water Board, and the Mackenzie Gas Project. EMERY PAQUIN | VICE CHAIRPERSON

APPOINTED JOINTLY BY THE GOVERNMENTS OF CANADA TIM BYERS AND THE NWT, AND DOMINION DIAMOND IN 2015 Emery Paquin is an independent environmental consultant living in APPOINTED BY AKAITCHO TREATY 8 FIRST NATIONS (YKDFN AND LKDFN) Yellowknife. He has more than 35 years of environmental management IN MAY 2001 experience with the northern mining industry and territorial government, Tim Byers is an independent consultant living in Manitoba. He has been and served six years as a Member on the Inuvialuit Water Board. working on projects in the Canadian Arctic since 1980. He specializes in studies of fish, Arctic seabirds and marine invertebrates and has assisted Aboriginal communities in documenting their indigenous environmental knowledge. He would like to see more Aboriginal youth engaged in environmental sciences and Traditional Knowledge used more effectively in environmental monitoring, research and impact KIM POOLE | SECRETARY/TREASURER assessments.

APPOINTED BY THE TŁĮCHǪ GOVERNMENT IN 2015 Kim Poole first served as an Agency Director from 2006 – 2015 (jointly appointed by the Governments of Canada and NWT and BHP Billiton), but was RONALD ALLEN reappointed by the Tłı̨chǫ Government in 2015. Kim is an independent wildlife biologist with over 35 years of experience in the Northwest Territories, APPOINTED JOINTLY BY GOVERNMENTS OF CANADA AND THE NWT, AND Nunavut and British Columbia in the areas of wildlife and wildlife habitat DOMINION DIAMOND IN 2017 research, and assessment and mitigation of environmental impacts related to the mining, forestry, and tourism industries. Ron Allen has been living and working in a variety of Arctic communities since the 1970s and has worked with community groups and organizations on local cultural values, concerns and aspirations related to renewable resources. Ron moved to the Northwest Territories as a Renewable BILL SLATER Resources Officer and transferred to Fisheries and Oceans Canada in the 1980s where he worked as a Fishery Officer and Habitat Inspector. Later, APPOINTED BY THE NORTH SLAVE MÉTIS ALLIANCE IN 2018 he worked as Area Manager and Area Director, delivering and managing multiple-sector operational programs including Habitat Assessment, Bill Slater is an independent environmental consultant with an engineering Fisheries Management, Conservation and Protection, Science, and education. He is based in Whitehorse, where he has lived and worked Administrative Services. for over 25 years. Most of his work is for First Nation governments, as a technical advisor on mining and mine closure projects. His technical focus areas include environmental effects assessment, mine closure, water quality and water management.

Directors How To Reach Us Office Staff 2018-2019 JAIDA OHOKANNOAK TIM BYERS IN PERSON MARC CASAS Chairperson Teulon, MB Suite 203 Executive Director Cambridge Bay, NU [email protected] 5006 Franklin Avenue [email protected] Yellowknife NT ANNUAL SHANNON MOORE RONALD ALLEN Communications and EMERY PAQUIN Yellowknife, NT BY MAIL Administrative Specialist Vice Chairperson [email protected] P.O. Box 1192 REPORT Yellowknife, NT Yellowknife NT [email protected] X1A 2N8 WEBSITE: JESSE JASPER www.monitoringagency.net Yellowknife, NT A PUBLIC WATCHDOG FOR ENVIRONMENTAL KIM POOLE [email protected] BY TELEPHONE MANAGEMENT AT THE EKATI DIAMOND MINE Secretary-Treasurer (867) 669-9141 OFFICE HOURS Nelson, BC Monday to Friday [email protected] BILL SLATER 9:00 a.m.—12:00 p.m. TECHNICAL LANGUAGE Whitehorse, YT BY FAX 1:00 p.m.—5:00 p.m. [email protected] (867) 669-9145

BY E-MAIL [email protected]