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Commercial Nickel Processing Plant, Long Harbour, Placentia Bay

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Commercial Nickel Processing Plant, Long Harbour, Placentia Bay Commercial Nickel Processing Plant, Long Harbour, Placentia Bay Canadian Environmental Assessment Act Screening Report Submitted by: Fisheries and Oceans Canada Transport Canada June 2008 FISHERIES AND OCEANS CANADIAN ENVIRONMENTAL ASSESSMENT ACT (CEAA) SCREENING REPORT GENERAL INFORMATION 1. EA Title: Commercial Nickel Processing Plant, Long Harbour, Placentia Bay 2 Proponent: Vale Inco Newfoundland and Labrador Limited, Suite 700, Baine Johnston Centre, 10 Fort William Place, St. John’s NL A1C 1K4; President – Robert Cooper; EA Contact – Ms. Brenda Brown, Environment, Health and Safety. 3. Other Contacts (Other Proponent, Consultant or Contractor): 4. Role: AMEC Earth & Environmental Limited AMEC Earth and Environmental Ltd. collected baseline 133 Crosbie Road, Suite 202 information on the freshwater environment including St. John’s, NL A1B 1H3 surface water, groundwater and sediment quality, benthic invertebrate and fish quality, and classification of fish aquatic habitat. LGL Limited LGL Limited was retained by the proponent to conduct 388 Kenmount Road a review of information and to provide marine St. John’s NL A1B 4A5 environmental baseline information on sea water, marine sediment, and marine biota (i.e., fish and fish habitat) in Long Harbour. Canning & Pitt Associates, Inc. Canning & Pitt Associates, Inc. was retained by the PO Box 21461 proponent to provide a review of the commercial St. John's, NL A1A 5G2 environment in the Placentia Bay area including the historical context, species harvested, the monthly distribution of fishing activities, fishing gears used, and Erik Devuyst Consultant Inc. the geographic location of fishing activities. 232 Glover Road Dr. Erik Devuyst provided information on the residue Stoney Creek, ON L8E 5H7 storage options for the hydromet plant. 5. Source: The Canadian Environmental Assessment Agency (the Agency) and the Newfoundland and Labrador Department of Environment and Conservation (NLDOEC), Environmental Assessment Division, referred the proposed Commercial Nickel Processing Plant registration information to the Department of Fisheries and Oceans (DFO) and Transport Canada (TC) on March 17, 2006 and March 23, 2006 respectively. The Agency requested that DFO and TC review the information and indicate whether they were likely to be responsible authorities or expert federal authorities as per the Canadian Environmental Assessment Act (CEAA). The NLDOEC requested that DFO and TC review the information with respect to their particular departmental responsibilities and indicate whether an environmental assessment was required as per Section X of the Newfoundland and Labrador Environmental Protection Act. DFO advised that an environmental assessment of the project, as prescribed by CEAA, was required prior to issuance of a Fisheries Act Section 35(2) Authorization and recommendation of the scheduling of the waterbody as a Tailings Impoundment Area (TIA) under the Metal Mining Effluent Regulations (MMER). TC advised that an environmental assessment of the project, as prescribed by CEAA, was required prior to issuance of a Formal Approval pursuant to Paragraph 5(1)(a) of the Navigable Waters Protection Act and the potential issuance of a waterlot lease for the purposes of enabling the project. The Province required an Environmental Impact Statement as per the Newfoundland and Labrador Environmental Protection Act. Screening Report Commercial Nickel Processing Plant, Long Harbour, Placentia Bay 1 6. EA Start Date: November 3, 2006 7. CEAR No.: 06-01-23173 8. PATH No.: 06-HNFL-NA2-000-000008 9. DFO File No: BAB 3970-19 10. TC File No.: ES NL 2006-056 11. NWPA File No.: 8200-06-1097 12. Provincial/Territorial File No.: Reg. #1243 BACKGROUND 13. Background about Proposed Development (including a description of the proposed development): The Voisey’s Bay Development Agreement signed in 2002 between the proponent and the Province of Newfoundland and Labrador requires the establishment of a commercial nickel concentrate processing plant in Newfoundland and Labrador using hydrometallurgical technology, provided that this technology can be shown to be technically and economically feasible. The hydrometallurgical technology (Hydromet Plant) will process nickel concentrate into a finished nickel product. A Demonstration Plant was constructed in Argentia, NL in 2005 to establish the commercial, technical and economic feasibility of hydrometallurgical technology to process the nickel concentrate. If this technology is not feasible, a nickel matte processing facility (Matte Plant) would be constructed to meet the commitment to process nickel in the province. The Matte Plant would process nickel matte from an out-of-province smelter as the input material and produce a finished nickel product. The Agreement stipulates that the technology must be selected (Processing Decision) by November 15, 2008. As such, this Environmental Assessment (EA) for the Long Harbour Commercial Nickel Processing Plant includes both processing options. Development Proposal Vale Inco Newfoundland and Labrador Limited (Vale Inco NL - the proponent), a subsidiary of Vale Inco Limited, proposes to construct, operate, and eventually decommission a nickel processing plant to produce a finished nickel product and associated copper and cobalt products. The proponent proposes to locate the plant on the south side of Long Harbour, Placentia Bay, NL at approximately 47°25’N and 53°49’W. Some components of the development proposal are proposed for a “brown field” site (Tier 1 Port Site) on the south side of Long Harbour which was previously used as an industrial site from 1969 to 1989, first by the Electric Reduction Company of Canada Industries Limited (ERCO) and then by Albright and Wilson Americas Limited (AWA). The decommissioned site includes a wharf, a paved access road, several buildings (administration, steam, and mud residue buildings), buried service lines, several landfills, a secure hazardous waste disposal area, a slag stockpile and construction debris. Some portions of the site (e.g., the hazardous waste disposal area) are not suitable for development. Other components of the development proposal will be located on a “green field” site (Tier 2 Plant Site) above Long Harbour on the south side (Figure 1.0). For the Hydromet and Matte Plants, Tier 1 will contain the port facilities which include: • Port facility including a wharf, an area for staging and storing of equipment and containers, and storage facilities for raw materials, reagents, wastes, and finished products; • Conveyor systems; • Stormwater capture system, sewage treatment system and general port buildings; • Underwater discharge pipe into a diffuser in Long Harbour; and • Port operations office, lunch room and change house. For the Hydromet Plant, Tier 1 will also include a lime kiln to convert limestone into lime for effluent neutralization, Sulphuric acid storage tank(s), fuel storage tanks, concentrate and limestone grinding process building. For the Matte Plant, the lime kiln and fuel tanks would be located on Tier 2. For the Hydromet and Matte Plants, Tier 2 will contain plant Site facilities which include: • Lime kiln to convert limestone into lime to be used for effluent neutralization (Matte Plant); • Processing complex where the feed (concentrate or matte) is pressure leached in acid solution to separate Screening Report Commercial Nickel Processing Plant, Long Harbour, Placentia Bay 2 iron and sulphur from nickel, copper and cobalt; • Solvent extraction building to extract the nickel, copper and cobalt for refining; • Complex for the refining of nickel, copper and cobalt; • Oxygen plant; • Boiler plant to provide steam for heating; • Cooling tower to cool and recycle cooling, and some process water; • Diesel and No. 2 fuel oil storage tanks; • Electrical substation; • Administration, change house, warehouse, workshops and utility buildings; and • Control room and analytical laboratory. Other components of the facility are beyond these primary sites and include: • Water supply system including a water control structure at Rattling Brook Big Pond and pipeline to the plant; • Residue storage area (Sandy Pond for underwater storage of combined residues for the Hydromet Plant, or an aboveground (sub-aerial) storage area for residue storage for the Matte Plant); • Pipelines to and from the residue storage area; • Pipelines to carry concentrate slurry, sulphuric acid, and lime and limestone slurries from Tier 1 to Tier 2 (Hydromet only); • Access roads (between Tiers 1 and 2, between Tier 2 and the residue storage area and Rattling Brook Big Pond); • Power lines between the substation and the sites; • Pipelines and pipe racks between Tier 1 and Tier 2; • Other site infrastructure including parking, water storage tank and pump houses, water distribution system, effluent treatment plant, sewage treatment plant, surface water drainage system, power distribution equipment, security fencing and access control building; • Constructed storm-water pond and effluent discharge polishing/cooling ponds; and • Standby diesel generators. Construction at the site for the Hydromet and Matte Plant options would include the repair and expansion of the existing wharf to accommodate a single 32,000 DWT vessel with additional berthing for smaller support vessels. Shipping is estimated to be 25 vessels per year. Dredging of approximately 26,600 cubic metres of sediment at the wharf site will occur. A 3-kilometre road would be constructed from the wharf to connect the main plant
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