Britannia Mine Remediation Project

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					                Britannia Mine
              Remediation Project
    Assessment of Costs and Liabilities
at Beginning of Project and at Current Time

                  Barry Azevedo, PEng. MASc.
              Britannia Mine Remediation Project
              Crown Contaminated Sites Branch
               BC Ministry of Agriculture & Lands




                                                                                                                                                                       Brief
                                                                                                                                      • 1905 – mine begins              •                1981 –works not being
                                                                                                                                        production               History                 maintained; initiation of period
                                                                                                                                      • 1920s – largest producing                        of studies and monitoring to
                                                                                                                                        copper mine in                                   characterise impact and define
                                                                                                                                        Commonwealth; metal                              liability (EC, DFO, BCMEM,
              Britannia                  Britannia Creek                                                                                                                                 BCMOE)
 Howe Sound




               Beach
                                                                                                                                        recovery from mine drainage
                                  M
                                   ine                                                                                                • 1970 – Pollution Control Act    •                1997 – EC and BCMOE jointly
                                      ra
                           4100         lC
                                          re                                                                                            becomes effective                                fund pilot plant testing and
                           Portal           ek                           2200                                                                                                            conceptual design of HDS lime
                                                                         Portal                                                       • 1973 – mine owners ordered
                  Mill                                                                                                                  to obtain permit (lime                           treatment of mine water
                                                                                                    Jane
                                                                                                    Cree




                Building                                                                                                                                                •                1997 – Contaminated Sites
                                    M i n e r a l     R i d g e
                                                                                                              Jane Basin
                                                                                                                                        treatment)
                                                                                                         k




                                                                                                              Glory Hole              • 1974 – mine closes; mine                         Regulation becomes effective
                                                                                                              & Open Pit                owner ordered to maintain       •                2001 – $30M settlement with
                                                                                                               Complex                                                                   historical mine operators;
                                                                                                                                        metal recovery system
                                                                                                                                      • 1979 – mine sold to real estate                  initiation of remediation
                                                                                                                                        developer                       •                2003 – Agreement with
                                                                                                              Furry Creek                                                                current land owner
                                                                                                               Workings                                                                • 2005 – Award of WTP
                                                    1 km
                                                                                                                                                                                        contract




                                                                                                                                                           Post-Mining Conditions
                                 3D Cutaway of Mine from Southwest




                                                                  Jane Basin
                                                                                                                                                                                                 k
                                                                                                                                                                                            ee
                                                                                                                                                                                       Cr
                                                                                   Bluff Fairview




                                                 2200 Portal                                                                             contaminated waste                       ia
                                                                                                                                       rock and groundwater              a   nn
                                                                     Jane




                                                 Mineral                                                                        m                                B   rit
                                                                                                                            imu                                                    2200 portal acidic        metal sulphide
                                                 Creek                                                                  Max able                                                   metal drainage
                          Britannia                                                                                     Allow                                                                                ore body
                                                                                                                              e                     Mill
                                                                                                             Victoria




                          Creek                                                                                          Min ing                            4100 portal acidic metal drainage
                                                                                                                                d    Howe Sound
                                                     2700L                                                                Floo
                                                                                                                                it
                                                                                                                           Lim
                 Britannia                              L                                                                                          contaminated
                                                   4100
                                                                       Homestake




                 Beach                                                                                                                             fill and groundwater
                 Townsite                                                                                                               contaminated
                                            4100 Plug
                                                                                                                                        sediments
      Howe                     4100
      Sound                    Portal
     Project Management Structure (~1999)                                                                                                            Provincial Goals
                                                                                                         • Environmental goal
                                                                                                                    – to reduce pollution from Mine into Howe Sound
                                         Steering Committee
                               Province-Environment Canada (co-chairs)
                                    BC Ministry of Energy and Mines,
                                                                                                         • Financial goal
                                         BC Ministry of Finance
                                                                                                                    – Minimize cost to taxpayers by maximizing opportunity for cost
                                                                                                                      recovery through:
                                                             Technical Advisory Committee
                                                           Province (chair), Environment Canada,                        • legal means
                                                               BC Ministry of Energy and Mines,
                                                                  BC Ministry of Environment,                           • landowner contributions / development revenues
                                                             Squamish Lilllooet Regional District,
              Legal Counsel                                  Environmental Mining Council of BC                         • infrastructure grant
       BC Ministry of Attorney General                                        later:
                                                                Contracted Project Manager,
                                                              Britannia Beach Historical Society,
                                                                                                         • Development goal
                                                                       land developer,                              – Optimize development capability of land (subject to costs)
                                                                  Natural Resources Canada,
                                                                     Squamish First Nation
                                                                                                         • Operational goal
                                                                                                                    – Long term operation of remedial works by party other than
                                                                                                                      Province
                                                                                                                                                                                       y?
                                                                                                                                                                                    fet
                                                                                                                                                                                e sa
                                                                                                                                                                             min




                                                                                                     Estimated Costs                                             2001
           3D Cutaway of Mine with Remedial Actions
                                                                                                     WTP Capital                                            $ 11,569,964
                                                                                                     Fan Remediation                                        $ 10,600,000
                                                                                                     JB Road Upgrade                                        $ 1,375,000                   Nominal Total Cost
                                                                                                                                                                                            over 20 years
                                                                     Mine Inflow                     Marine Remediation                                     $ 15,000,000                      = $99.3M
                                                                     Diversions
                                                Jane Basin                                           AA Remediation                                         $           -
                                                                                                     Mine Inflow Diversions                                 $           -
             2200 Plug (UBC 2001)
                                                                                                     Mine Safety                                            $           -
                                                                                                     Project Management                                     $           -
                             eek
                           Cr                                                                        Administration                                         $           -                    NPV Total Cost
                        ia
                      nn                                                                                                                                                                     over 20 years
                   ita
                 Br                                                                                  Legal                                                  $           -
                                                                                                                                                                                               = $75.9M
                                                                                                     Annual O&M - WTP                                       $ 1,770,000
     WTP
                                                                                                     Annual O&M - Fan                                       $     680,000

                             4100 Plug
Fan Remediation




 BC Environmental Protection Act (formerly                                                                                                                                            Britannia Mine
     Waste Management Act) and the                                                                                                                                                  Successorship of
   Contaminated Sites Regulation (1997)                                                                                                                                         Corporate Ownership


 • Persons responsible for remediation of a contaminated site
   include: a current owner/operator, and a previous
   owner/operator.
 • A responsible person is absolutely, retroactively, and joint &
   severally liable
 • 1998 assessment of corporate history identified several                                            current site
   existing companies that were successors to the historical                                          owners: BBPL,
   mine owners and operators                                                                          BBHS, Makin,
                                                                                                      Tanac, BCR,
                                                                                                      BC Crown

                                                                                                                                                                            parties indemnified by Province:
                                                                                                                                                                            ARCO, BP/Dome, Canzinco,
                                                                                                                                                                            Intalco, Alcoa, Alumax,
                                                                                                                                                                            Howmet, Pechiney

                                                                                                       Britannia Mine and
                                                                                                       Reclamation Corp.     Britannia Bay
                                                                                                                            Properties Ltd.
                                                                                                                                              2003
                                                                                                                                                     BC   2001
                                                                                                                             Remediation Plan
      Remediation – 2001 Relationship of Relevant Parties
                                                                                                                                   Project Management
   Britannia Beach community
    - ongoing public meetings
                                                                                                                                         (Golder)
                                           BC MOE
        - website, feedback             (EMA Regulator)                                               Mine Hydrogeology
          - progress reports                                                                                                                                           Drainage diversions
                                                                                                      – mine drainage
                                                                                                                                                                       and equalization
                                                                                                      investigations (SRK
                                                                                                                                                                       through mine
                                                                                                      and KC)
   Historical Potential                                                                                                                                                storage
                                                      Copper Beach              Other PRPs                                                mine drainage flow
   Responsible Parties      Province of BC
                                                       Estates Ltd.           (Museum, BCR,           Flood Risk                          and quality
      (Arco, Alcoa,          (Remediator)                                                                           siting
                                                     (Property Owner)              MoT)
      Ivaco, others)                                                                                  Assessment    information
                                                                                                      (WMC)                       WTP feasibility                      Plant final design,
                                                                                                                                  design (AMEC)                        procurement, and
  historical owner              infrastructure      CBEL memorandum of agreement                      Contaminated Sites                                               construction (EPCOR)
                                                                                                                                          groundwater flow
  agreement                     fund (Canada,       - to Province: $5M, Jane Basin Road               Investigation –                     and quality
  - to Province: $30M           BC, SLRD,           construction, 50% of site                         remediation plan                                                 Soil and Groundwater
  - from Province:              CBEL)               development profits, annual property              (URS)                                                            Remediation works
  indemnification               - to Province          white space
                                                    surcharges, and limited property (total
  - settlement                  $15 million         est. value of $30.9M)
                                                                                                                                   EM/RA (EVS-Golder)
  preferable to legal                               - to CBEL: indemnification, no
  battle                                             objection to development




      Remediation – 2003 Relationship of Relevant Parties                                                               WTP Procurement
                                                                                                                    A Public-Private Partnership
    Britannia Beach community
     - ongoing public meetings
         - website, feedback
                                           BC MOE
           - progress reports           (EMA Regulator)                                           •     Decision to proceed with WTP procurement through a P3 in late 2003
                                                                                                         – risk transfer, cost effective, DBFO 20 year contract
                                                                                                  •     RFEI, RFP processes in 2004
   Historical Potential
                               BC MAL
                                                                                                  •     EPCOR awarded contract in late 2004
                                                       Britannia Bay            Other PRPs
   Responsible Parties      Province of BC                                                               – design (Stantec), construction (LSI), finance and operation (EPCOR)
                                                       Properties Ltd.        (Museum, BCR,
      (Arco, Alcoa,          (Remediator)           (Property Developer)           MoT)                  – performance-based monthly payments for repayment of capital,
      Ivaco, others)
                                             2003                                                          operating, financing, and profit costs (must meet permit criteria)
               2001
                                                                                                         – no payments until plant is operational
                                             BBPL agreement
    historical owner agreement                                                                           – $27M NPV ($60M nominal) contract vs traditional projected cost of
                                             - 440 acres of land needed for remediation
    - to Province: $30 million                                                                             $39M NPV ($70M)
                                             - 8996 acres of mineral claims
    - from Province: indemnification                                                                     – hydroelectric plant to provide 30% of electric needs
                                             - 32.9 acres for highway RoW
                                             - environmental levy on development                         – WTP design capacity of 1,050 m3/hour (based on mine storage)
  provincial contribution                    - timber and access rights
  - projected cost of $99.3M                 - estimated value of $5M
             blank
  - private contributions of $35M            - to BBPL: no objection to development,
                                                                                blank
  - province commitment =$64.3M              limited environmental liability




WTP Under Construction                                                     4100 Portal and Adit
- Commissioning October 21, 2005                                           under Rehabilitation            Comparison of Estimated Costs
- Full operation in early November                                                                                                                        2001               2005

                                                                                                                 WTP Capital                          $ 11,569,964       $ 26,031,000
                                                                                                                 Fan Remediation                      $ 10,600,000       $ 6,966,366
                                                                                                                 JB Road Upgrade                      $ 1,375,000        $    541,909
                                                                                                                 Marine Remediation                   $ 15,000,000       $          -
                                                                                                                 AA Remediation                       $            -     $ 2,000,000
                                                                                                                 Mine Inflow Diversions               $            -     $    423,620
                                                                                                                 Mine Safety                          $            -     $    800,000
Contaminated Soil Disposal                                    Contaminated Groundwater
into East Bluff Glory Hole                                       Pumping Well Pipe Array                         Project Management                   $            -     $ 4,506,514
                                                                                                                 Administration                       $            -     $ 1,885,161
                                                                                                                 Legal                                $            -     $    701,105
                                                                                                                 Annual O&M - WTP                     $ 1,770,000        $ 1,212,000
                                                                                                                 Annual O&M - Fan                     $      680,000     $    200,000
                       2001 Cost Estimates Compared to 2005 Cost Estimates
$30,000,000                                                                       Unconsidered Costs in 2001 Budget
                                                                                  • WTP Capital: feasibility assessment, flood
$25,000,000                                                                         assessment, site demolition, residential
                                                                                    development, access road, sludge filter plant,
                                                                                    wtp site remediation, outfall location, building
$20,000,000
                                                                                    architecture, water supply, profit
                                                                                  • Fan Remediation: contaminated soil
$15,000,000                                                                         excavation and disposal                                                                                                                                                                                                                Dismissed Costs in 2005 Budget
                                                                                  • AA Remediation: investigation and                                                                                                                                                                                                      • WTP Capital: Jane Basin sludge
$10,000,000                                                                         remediation                                                                                                                                                                                                                              disposal cell study and construction,
                                                                                  • Mine Inflow Diversions: East Bluff diversion                                                                                                                                                                                           • Marine Remediation ($15 million!!!)
 $5,000,000
                                                                                  • Mine Safety: open raises, 4100 wye, ore bin,
                                                                                    mine manager
         $-
                                                                                  • Project Management: project management,
                                                                                    owner’s engineer, construction management




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                    Outstanding Liabilities
                                                                                                                                                                                                                                               Summary
                                                                                                       • indemnification to historical mine operators has resulted
   •   Five large abandoned water reservoir dams on Britannia Creek                                      in provincial taxpayer covering additional substantial
   •   Jane Basin Rock Block (20,000,000 m3)
                                                                                                         remediation costs of $64.3M (nominal)
   •   Loss of hydraulic continuity between mine ore body and 4100 portal (mine
       drainage exits at another location into Britannia Creek or Furry Creek                          • the project is on budget as set in 2001 ($99.3M, nominal)
   •   Excessive WTP bypasses despite mine storage (weather dependent)                                 • the project is on budget due to some early conservative
   •   3250 overflow into Mineral Creek despite mine storage (weather and mine
                                                                                                         assumptions, and cost effective WTP procurement
       working collapses)
   •   Open portals, raises, derelict structures, fall hazards                                         • there are substantial outstanding liabilities which may
   •   Marine sediment contamination                                                                     impact budget
   •   Upland waste rock dumps at mine portals – undefined remediation (RA)                            • the WTP is ahead of schedule, with no over-budget risk
   •   Outfall location instability
                                                                                                         on contract items
   •   Adjacent residential growth




                           Barry Azevedo, PEng. MASc.                                                                                                                                             Estimated Total Inflows to Mine
                                                                                                                                                                                                                Estimated Total Inflows to Mine (including flows that reported to 2200 level)

            Managing Engineer, Britannia Mine Remediation Project
       Crown Contaminated Sites Branch, BC Ministry of Agriculture & Lands                             1200                                                              Mine Inflows                                                                                                                                                                                                                                                                                                        4500

                      10470-152nd Street, Surrey BC V3R 0Y3                                                                                                              Design Capacity
                                                                                                                                                                         Hydraulic Capacity                                                                                                                                                                                                                                                                                                  4000
            tel:(604) 582-5309 cel: (604) 612-8536 fax:(604) 584-9751                                  1000                                                              SWE

                        email: barry.azevedo@gov.bc.ca
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             3500



                         website: www.britanniamine.ca                                                 800
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             3000
                                                                                   Mine Inflow (L/s)




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             2500
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    SWE (mm)




                                                                                                       600                                                                                                                                                                                                                                                                                                                                                                                   2000


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             1500

                                                                                                       400
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             1000


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             500
                                                                                                       200

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             0


                                                                                                          0                                                                                                                                                                                                                                                                                                                                                                                  -500
                                                                                                              1977 Jan 01

                                                                                                                            1978 Jan 01

                                                                                                                                          1979 Jan 01

                                                                                                                                                        1980 Jan 01

                                                                                                                                                                      1980 Dec 31

                                                                                                                                                                                    1981 Dec 31

                                                                                                                                                                                                  1982 Dec 31

                                                                                                                                                                                                                   1983 Dec 31

                                                                                                                                                                                                                                 1984 Dec 30

                                                                                                                                                                                                                                               1985 Dec 30

                                                                                                                                                                                                                                                             1986 Dec 30

                                                                                                                                                                                                                                                                           1987 Dec 30

                                                                                                                                                                                                                                                                                         1988 Dec 29

                                                                                                                                                                                                                                                                                                       1989 Dec 29

                                                                                                                                                                                                                                                                                                                     1990 Dec 29

                                                                                                                                                                                                                                                                                                                                   1991 Dec 29

                                                                                                                                                                                                                                                                                                                                                 1992 Dec 28

                                                                                                                                                                                                                                                                                                                                                               1993 Dec 28

                                                                                                                                                                                                                                                                                                                                                                             1994 Dec 28

                                                                                                                                                                                                                                                                                                                                                                                           1995 Dec 28

                                                                                                                                                                                                                                                                                                                                                                                                         1996 Dec 27

                                                                                                                                                                                                                                                                                                                                                                                                                       1997 Dec 27

                                                                                                                                                                                                                                                                                                                                                                                                                                     1998 Dec 27

                                                                                                                                                                                                                                                                                                                                                                                                                                                   1999 Dec 27

                                                                                                                                                                                                                                                                                                                                                                                                                                                                 2000 Dec 26

                                                                                                                                                                                                                                                                                                                                                                                                                                                                               2001 Dec 26




                                                                                                                                                                                                                                                                                             Month
                                                                                                    Projected Number of Days of Untreated                                                                                        Britannia Fan Area Remediation Options
                                                                                                      Discharge per Event Utilizing Last 25
                                                                                                            years of Hydrology Data
                                                                                                           No. of Days of untreated pipe discharge per event                                                             Mill Building                        Loading Sources to Howe Sound
                               Untreated Discharge




                                                                    50  50                                                                                                                                                   <1%             Product Building
                                                                                                                                                                                                                                                                Museum
NumberNo. of Days of untreateduncontrolled) event (controlled and




                                                                                                                                                                                                                                                  0.3%
                                                                        45                                                                                                                                                                                       4.7%
                                                                                                                                                                                                                                                                         Mill Settling Pond
                                                                    40  40                                                                                                                                             Concentrate Pile
                                                                                                                                                                                                                           18.7%
                                                                                                                                                                                                                                                                               6.2%
                                                                        35                                                                                                                       Surface Deposits                                                            Concentrate Building

                                                                    30
                                                                                                                                                                                                                                                                                   9.3%
       of Days of discharge per




                                                                        30
                                                                                                                                                                                                       43%
                                                                        25
                                                                                                                                                                                                                 Settling Pond
                                                                                                                                                                                                                    12.2%                                                    Concentrate Wharf
                                                                    20  20
                                                                                                                                                                                                                                                                                 Tailings
                                                                        15                                                                                                                                                                                                        6.7%


                                                                    10  10                                                                                                                                  Sedimentation Pond
                                                                                                                                                                                                            (Launder Sediment)                                           Mill area E of Hwy
                                                                        5                                                                                                                                         6.1%                                                          11.4%

                                                                    0   0
                                                                                                                                                                                                           West Mill Slope
                                                                                                                                                                                                                 3.7%
                                                                             1977 Jan 01

                                                                             1978 Jan 01

                                                                             1979 Jan 01

                                                                             1980 Jan 01

                                                                             1981 Jan 01

                                                                             1982 Jan 01

                                                                             1983 Jan 01

                                                                             1984 Jan 01

                                                                             1985 Jan 01

                                                                             1986 Jan 01

                                                                             1987 Jan 01

                                                                             1988 Jan 01

                                                                             1989 Jan 01

                                                                             1990 Jan 01

                                                                             1991 Jan 01

                                                                             1992 Jan 01

                                                                             1993 Jan 01

                                                                             1994 Jan 01

                                                                             1995 Jan 01

                                                                             1996 Jan 01

                                                                             1997 Jan 01

                                                                             1998 Jan 01

                                                                             1999 Jan 01

                                                                             2000 Jan 01

                                                                             2001 Jan 01

                                                                             2002 Jan 01
                                                                             1977
                                                                             1978
                                                                             1979
                                                                             1980
                                                                             1981
                                                                             1982
                                                                             1983
                                                                             1984
                                                                             1985
                                                                             1986
                                                                             1987
                                                                             1988
                                                                             1989
                                                                             1990
                                                                             1991
                                                                             1992
                                                                             1993
                                                                             1994
                                                                             1995
                                                                             1996
                                                                             1997
                                                                             1998
                                                                             1999
                                                                             2000
                                                                             2001
                                                                             2002
                                                                                                                                                                                                           East Mill Slope                                          Subsurface Deposits
                                                                                                                                                                                                                1.0%                           Ball Diamond
                                                                                                                                                                                                                     Sedimentation Pond            18.7%                   56%
                                                                                                                                     Date                                                                               (Waste Rock)
                                                                                                                                    Date                                                                                   0.4%




                                                                                                                                                                              From 2200 Level
                     Estimated Daily Metals Loading                                                                                                                           via Britannia
                                                                                                                                                                              Creek – UBC
                                                                                                                                                                              2001
                                                                         Bedrock

                                                                         Alluvium and Fill
                                                                                                                                                      Mine Workings Total:
                                                                         Contaminated                                                                 Copper and Zinc around
                                                                         sediments                                                                    300 kg/day each        Mine water flow
                                                                         (tailings)
                                                                                                                                                                                    4100 Level

                                                                                                              South Alluvial Fan (Mill):
                                                                                                              Copper and Zinc: up to 90 kg/day each
                                                                                                              North Alluvial Fan:
                                                                                                              Copper and Zinc: up to 5 kg/day each




                                                                                                                                                                          Groundwater flow


                                      Howe Sound                                                                                                                                                 2200 Level Waste Dump




                             Permit Level Development Table
                                                                                               1999              ambient       Mining       MMER        WTP      WTP                                   East Bluff Diversion
                                                                                              permit
parameter                                                                                                         criteria       PCO        (total)   design    design    permit    permit
                                                                                           (diss)   (total)        (total)      (diss)                 (diss)   (total)    (diss)   (total)
                                                                                                                                                                                                                                                                               Upper Jane Creek
Cu (mg/L),                                                                                  0.05        0.2    0.002-0.01     0.05-0.3         0.6      0.02       0.4        0.1
Fe (mg/L),                                                                                  0.01        0.5      0.05-0.3      0.3-1.0                  0.01       0.3        0.1                                                         Jane Basin
Zn (mg/L),                                                                                  0.15        0.3   0.019-0.095      0.2-1.0           1      0.03       0.5
                                                                                                                                                                             0.20
Al (mg/L),                                                                                   0.2        0.5           0.1      0.5-1.0                    0.5        1          1
Mn (mg/L),                                                                                   0.2         1            0.1      0.1-1.0                    0.2      0.4        0.4
Cd (mg/L),                                                                                  0.01       0.05       0.0001     0.01-0.10                 0.001     0.002       0.01                                                                                         Weir/flow
                                                                                                                                                                                                                                              Pipe(s)                     capture structure
TSS                                                                                                     25                      25-75           30                  10
(mg/L)                                                                                                                                                                                  30
lower pH                                                                                                6.5                   blank
                                                                                                                                 6.5

upper pH                                                                                                9.5                    8.5-10

96HRLC50                                                                                            100%           100%                                100%                         100%
                                                                                                                                                                                                       Lower Jane Creek
Summary of Fan Area Remedial Work
                                                                               Jane Basin Access Road

                                                 Ore Bin                   • INSERT JB ROAD MAP
            Sedimentation Pond

 Settling Pond and                                 East Mill Slope
Northeast Fan Piles
                            Concentrater Pile


                                                Contaminated Stormwater
                                                   Collection System
                                  utfall
                             eep O
                       r to D
                   Sewe
             water                                  Groundwater Pumping                           Jane Basin Access
        Storm                                             System                                  Road Plan




    Existing Deep Outfall




 WTP Location & Access Road
 Upper Bridge




                                    Lower Bridge




New Road Section                                       Highway 99 Access

				
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