Section A – Project Introduction Mercoal West and Yellowhead Tower Section A – Project Introduction Mine Extension Project TABLE OF CONTENTS A PROJECT INTRODUCTION......................................................................................... 1 A.1 INTRODUCTION .......................................................................................................... 1 A.2 PROJECT PROPONENT............................................................................................... 2 A.2.1 Coal Valley Resources Inc................................................................................. 2 A.2.2 Sherritt International Corporation...................................................................... 2 A.2.3 Ontario Teachers’ Pension Plan Board .............................................................. 2 A.3 PROJECT NEED AND ALTERNATIVES ................................................................... 3 A.3.1 Project Need....................................................................................................... 3 A.3.2 Project Alternatives............................................................................................ 4 A.4 APPLICATION FOR APPROVAL ............................................................................... 5 A.4.1 Applicant Information........................................................................................ 6 A.4.2 Existing Approvals............................................................................................. 6 A.4.3 Request for Approval ......................................................................................... 7 A.4.4 Application Guide and Description.................................................................... 9 A.5 REGIONAL AND LOCAL SETTING ........................................................................ 11 A.5.1 Mercoal West ................................................................................................... 11 A.5.2 Yellowhead Tower Area.................................................................................. 12 A.6 DEVELOPMENT PLAN............................................................................................. 12 A.6.1 Mercoal West ................................................................................................... 12 A.6.2 Yellowhead Tower........................................................................................... 12 A.6.3 Development Schedule.................................................................................... 13 A.6.4 Regulatory and Planning.................................................................................. 16 A.7 SUMMARY OF STAKEHOLDER CONSULTATION.............................................. 16 A.7.1 Need for Public Involvement ........................................................................... 16 A.7.2 Objectives and Scope ....................................................................................... 16 A.7.3 Results.............................................................................................................. 17 A.7.4 Continuing Consultation.................................................................................. 17 A.8 ENVIRONMENTAL INFORMATION SUMMARY ................................................. 18 A.8.1 Air Quality....................................................................................................... 20 A.8.2 Fisheries ........................................................................................................... 21 A.8.3 Groundwater..................................................................................................... 24 A.8.4 Historical Resources ........................................................................................ 26 A.8.5 Human Health.................................................................................................. 27 A.8.6 Hydrology ........................................................................................................ 31 A.8.7 Mammalian Carnivores.................................................................................... 33 A.8.8 Noise ................................................................................................................ 37 A.8.9 Socio-economic................................................................................................ 38 A.8.10 Soils.................................................................................................................. 38 A.8.11 Surface Water Quality...................................................................................... 41 A.8.12 Traditional Ecological Knowledge and Land Use ........................................... 45 A.8.13 Vegetation, Wetlands and Biodiversity............................................................ 46 A.8.14 Wildlife ............................................................................................................ 47 A.8.15 Greenhouse Gas and Climate Change.............................................................. 50 A.8.16 Land and Resource Use.................................................................................... 52 March 2008 A-i Mercoal West and Yellowhead Tower Section A – Project Introduction Mine Extension Project A.9 MITIGATION AND MONITORING.......................................................................... 53 A.9.1 Air Quality....................................................................................................... 53 A.9.2 Fisheries ........................................................................................................... 53 A.9.3 Groundwater..................................................................................................... 55 A.9.4 Historical Resources ........................................................................................ 55 A.9.5 Human Health.................................................................................................. 55 A.9.6 Hydrology ........................................................................................................ 56 A.9.7 Mammalian Carnivores.................................................................................... 57 A.9.8 Noise ................................................................................................................ 58 A.9.9 Socio-economic................................................................................................ 58 A.9.10 Soils.................................................................................................................. 58 A.9.11 Surface Water Quality...................................................................................... 59 A.9.12 Traditional Ecological Knowledge and Land Use ........................................... 61 A.9.13 Vegetation, Wetlands and Biodiversity............................................................ 61 A.9.14 Wildlife ............................................................................................................ 63 List of Tables Table A.1.0-1 Key Project Parameters...................................................................................... 2 Table A.3.2-1 Summary of Evaluation of Project Alternatives Considered for the Project ..... 4 Table A.4.2-1 CVM Existing Approvals................................................................................... 6 Table A.4.3-1 Proposed Mine Permit Areas ............................................................................. 8 Table A.6.2-1 Combined Production Plan for Existing, Proposed and Future Mine Development .................................................................................................... 13 Table A.6.2-2 Mercoal West Development Schedule............................................................. 14 Table A.6.2-3 Yellowhead Tower Development Schedule..................................................... 15 Table A.8.2-1 Fish Species Captured during Baseline Investigations .................................... 21 Table A.8.2-2 Fish Species Distribution in Watercourses in and Adjacent to the MW and YT Project ........................................................................................................ 22 List of Figures Figure A.1.0-1 Project Location Figure A.1.0-2 Mercoal West Development Area Figure A.1.0-3 Yellowhead Tower Development Area March 2008 A-ii Mercoal West and Yellowhead Tower Section A – Project Introduction Mine Extension Project A PROJECT INTRODUCTION A.1 INTRODUCTION The Coal Valley Mine is located approximately 90 km south of Edson in the Coal Branch area of Alberta (Figure A.1.0-1). This area has an extensive coal mining history dating back to the early 20th century when coal extraction was carried out using conventional underground mining methods. Surface mining was introduced into the Coal Branch Area during the 1930’s. The Coal Valley Mine (CVM) has been in operation since 1978 employing both truck/shovel and dragline mining methods. The mine has established a reputation as a dependable supplier of high quality thermal coal for overseas and domestic markets. Depleting coal reserves within the existing CVM permit area require further mine development to allow Coal Valley Resources Inc. (CVRI) to maintain its workforce and to continue to supply thermal coal to its customers. CVRI is proposing to develop an extension of the CVM to include the Mercoal West (MW) and Yellowhead Tower (YT) areas. Current coal reserves