January 2015 - AME BC Roundup

Nisga’a
Lisims
Government
Success Story
Nisga’a Lisims Government
and
Avanti Kitsault Mining Ltd.
“One Heart, One Path, One Nation”
January 2015
1
Success Story – Presentation
Overview
Nisga’a
Lisims
Government
 Nisga’a Lisims Government
 Avanti Kitsault Mine Ltd.
 An Alloycorp Mining Company
 Avanti Kitsault Mine Project
 Nisga’a Final Agreement
 Dispute Resolution
 Environmental Agreement
“” “One Heart, One Path, One Nation”
2
Nisga’a Lisims Government
•
We are Nisga'a, People of the Nass River. We have lived here,
on British Columbia's northwest coast, since time immemorial.
Long enough to see our culture thrive, adapt, and endure.
Canada's Nisga'a Nation is represented by Nisga'a Lisims
Government - a modern, forward-thinking administration based
on traditional culture and values. Together, we have built a
culture and economy that respects and protects our natural
heritage”
•
Our worldwide population is about 7000
•
Our Treaty with Canada and BC, the Nisga’a Final Agreement,
went into effect May 11, 2000
•
Our website: www.nisgaanation.ca
•
We are on Facebook: https://www.facebook.com/pages/NisgaaLisims-Government-Nisgaa-Nation/233541510044452
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
3
Where we are
Nisga’a
Lisims
Government
The Nass Area
•~26,838 km2
•Fish, Fish Habitat, Aquatic Plants
and Migratory Birds
The Nass Wildlife Area
•~16,101 km2
•Wildlife, Wildlife Habitat
Kitsault
Nisga’a Communities
•Gitlaxt’aamiks
•Gitwinksihlkw
•Laxgalts’ap
•Gingolx
•Terrace
•Prince Rupert/Port Edward
•Vancouver
Nisga’a Lands
•~2000 km2
•authority to make laws
“One Heart, One Path, One Nation”
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Nisga’a
Lisims
Government
Emerging Molybdenum
Producer and Supplier of
Steel Alloy Metals
““One Heart, One Path, One Nation”
TSX V:AVT
Alloycorp at a Glance
Nisga’a
Lisims
Government

TSX-Venture

Toronto, Vancouver
and Terrace
Our Strategy:

To become the unique
supplier of steel alloy
metals

Build the Avanti
Kitsault Project in BC,
Canada

Acquire assets
producing
commodities that
supply to the steel
alloys industry
““One Heart, One Path, One Nation”
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Alloycorp Supplies to Global
Steelmakers
Nisga’a
Lisims
Government
Returns in the form of stainless
and construction steels
Returns in the form of stainless
and construction steels
Avanti Kitsault Mine
Concentrate to
SeAH
Concentrate to
Vancouver
Processed MoO2 to
ThyssenKrupp
Remaining
Concentrate to
Molymet in
Belgium
Concentrate processed
at Molymet’s Chilean
facilities (up to 4,500
tonnes annually)
Front end of the steel supply chain
““One Heart, One Path, One Nation”
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Molybdenum – Fundamental
Input in Steelmaking
Molybdenum End Uses
Nisga’a
Lisims
Government
 Oil and gas drilling steel
 Pipelines and storage
tanks
 Bridges
 Offshore infrastructure
 Manufacturing of tools
 Automotive industry
 Manufacturing of aircrafts
and turbine engines
Source: CPM Group
““One Heart, One Path, One Nation”
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Avanti Kitsault Mine
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
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History of Kitsault
Nisga’a
Lisims
Government
Exploration
Operations I
1957 - 1967
1968 - 1972
Exploration & Upgrade
1973 - 1980
Operations II
Care/Maintenance
1981 - 1982
Reclamation
1996 - 2007
Re-Development
““One Heart, One Path, One Nation”
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10
1983 - 1995
2008 - Present
World Class Project
Ownership
Nisga’a
Lisims
Government
100% Alloycorp
Molybdenum – Silver
Mineralization
Molybdenum Reserves
190,600 t @ 0.082% Mo
Mining Method
Conventional Open Pit
Throughput Rate
45,000 tpd
Strip Ratio
1:1
Processing Method
Milling and Flotation
Average Metallurgical Recovery
88.5% Mo, 39% Ag1
Construction Period
2 Years
Mine Life (Reserves Only)
14 Years
Initial Capital
$818 million
Operating Costs (Before By-Product)
US$5.96 per lb
Operating Costs (Net of By-Product)
US$5.12 per lb
““One Heart, One Path, One Nation”
Source: Kitsault Optimization Study (April 2014)
1. Currently looking to improve silver recovery through additional metallurgical test work
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Key Project Highlights
Nisga’a
Lisims
Government
Brownfield Site
Existing
Infrastructure
NLG & AKML
Agreements
Permitted
““One Heart, One Path, One Nation”
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12
Proven Resource
Under Construction
July 2014
Kitsault Project Location
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
13
Kitsault Site Arrangement
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
14
Site Arrangement
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
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Timeline To Production
2012
Nisga’a
Lisims
Government
Env Baseline Data
2013
EA App
EA Process
EO
Permit
Application
Complete
Const. Final
Permits Permits
Complete
MOU with 3 First
Nations
FN Agreements
2017
Complete
CEAA
Approval
BC EA
Cert
Permitting
2016
Began in 2008
data back to 1980
FS
Update
Feasibility Study
2015
2014
CBA with
Nisga’a
Complete
Financing
Basic and Detail Eng
Currently 45% complete
Construction
Start-Up / Operation
““One Heart, One Path, One Nation”
16
Construction Achievements
To-Date
Nisga’a
Lisims
Government
 Construction of access road is complete
 Front-end engineering 45% complete
 Engineering team has grown to 70 people
 Camp expansion underway to support a 150 bed
construction camp
 Construction of the Nass River bridge currently
underway
 Owner’s team expanded to oversee management
of the project
““One Heart, One Path, One Nation”
17
Alternatives for On-Land
Tailings Disposal
Nisga’a
Lisims
Government
•
•
Land Based Tailings Facility
Asphalt Core
““One Heart, One
18 Path, One Nation”
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Independent Engineering
Review Panel – Tailings Facility
Nisga’a
Lisims
Government
 Three member panel
 Geotechnical, hydrogeological and hydrological
components
 Ministry of Energy and Mines
 Panel Recommendations shared with the NLG
 Panel Technical Guidance:
‒ Design
‒ Construction
‒ Operations
‒ Closure
 Objective:
 Safe and environmentally responsible development
““One Heart, One Path, One Nation”
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Employment – Construction
700 Construction Jobs
Nisga’a
Lisims
Government
‒ Health & Safety specialists
‒ Environmental technicians
‒ Heavy equipment operators
‒ Mechanics
‒ Millwrights
‒ Electricians
‒ Administrative personnel
‒ Service and maintenance personnel
““One Heart, One Path, One Nation”
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Employment – Operations
300 Operation Jobs
Nisga’a
Lisims
Government
‒ plant operators
‒ line superintendents
‒ mine truck drivers
‒ mine shovel operators
‒ engineering specialists
‒ administration personnel
‒ service and maintenance specialists
‒ environmental compliance and health services specialists
““One Heart, One Path, One Nation”
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BC Environmental Assessment &
Permitting process
Nisga’a
Lisims
Government
 Larger projects trigger EA’s
 EA’s are typically “strategic” in nature
 Finer details emerge in permitting
process
““One Heart, One Path, One Nation”
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Chapter 10 and relevant
provisions of Nisga’a Treaty
Nisga’a
Lisims
Government
Definitions
(taken from Definitions Chapter)
• Environmental Assessment
“means the evaluation of impacts on the
environment, and includes screening, study
and review”
““One Heart, One Path, One Nation”
23
Chapter 10 and relevant
provisions of Nisga’a Treaty
Nisga’a
Lisims
Government
Definitions
(taken from Definitions Chapter)
• Project
“means any undertaking or proposed
undertaking in relation to a physical work or
activity”
““One Heart, One Path, One Nation”
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Chapter 10 and relevant
provisions of Nisga’a Treaty
Nisga’a
Lisims
Government
Definitions
(taken from Definitions Chapter)
• Consult and Consultation
“mean provision to a party of :
a. Notice of a matter to be decided, in sufficient detail to permit
the party to prepare its views on the matter,
b. In consultations between the Parties to this Agreement, if
requested by a Party, sufficient information in respect of the
matter to permit the Party to prepare its views on the matter,
c. A reasonable period of time to permit the party to prepare its
views on the matter,
d. An opportunity for the party to present its views on the matter,
and
e. A full and fair consideration of any views on the matter so
presented by the party”
““One Heart, One Path, One Nation”
25
Chapter 10 and relevant
provisions of Nisga’a Treaty
Nisga’a
Lisims
Government
• Chapter 10 – Environmental Assessment and
Protection
• Paragraph 6
• Paragraph 8
• Subparagraph e.
“assess whether the project can reasonably be
expected to have adverse environmental effects…”
““One Heart, One Path, One Nation”
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Chapter 10 and relevant
provisions of Nisga’a Treaty
Nisga’a
Lisims
Government
• Chapter 10 – Environmental Assessment and
Protection
• Paragraph 6
• Paragraph 8
• Subparagraph f.
“Assess the effects of the project on the existing and
future economic, social and cultural well-being of
Nisga’a citizens who may be affected by the
project”““One Heart, One Path, One Nation”
27
Chapter 10 and relevant
provisions of Nisga’a Treaty
Nisga’a
Lisims
Government
• Chapter 10 – Environmental Assessment and
Protection
• Paragraph 6
• Paragraph 8
• Subparagraph i.
“take into account any agreements between the
project proponent and the Nisga’a Nation….”
““One Heart, One Path, One Nation”
28
Dispute Resolution
Nisga’a
Lisims
Government
 The Nisga’a Nation was not satisfied it had all of
the information required in order to have a full
understanding of what the effects would be
 The Nisga’a Nation initiated the Dispute Resolution
process described in the Treaty
 BC granted the EA Certificate
 BC, Canada, and the Nisga’a Nation entered
discussions to resolve the dispute
 If unsuccessful the final step in the DR process is
litigation
 To preserve its rights, the Nisga’a Nation initiated
legal proceedings
““One Heart, One Path, One Nation”
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Environmental Agreement
 Identified the key outstanding issues
Nisga’a
Lisims
Government
‒ Historic environmental concerns
‒ Future environmental concerns
‒ Certainty of environmental standards
‒ Certainty of scientific methodology
 Assigned technical teams from both parties for
each issue
 NLG provided specifics by issue for discussion
and resolution
““One Heart, One Path, One Nation”
30
Environmental Agreement –
Addressing Uncertainty
 From conceptual to details
Nisga’a
Lisims
Government
 Beyond the BC Environmental Certificate
 Schedule
 Scientific Methodology
 Adaptive Management
 Contingency Planning and Implementation
““One Heart, One Path, One Nation”
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Environmental Agreement
1. Site Specific Water Quality Objectives
Nisga’a
Lisims
Government
2. Water Treatment
3. Fish Habitat Compensation
4. Marine Effects Monitoring Program
5. Aquatic Effects Monitoring Program
6. Human Health Risk Assessment
““One Heart, One Path, One Nation”
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Consensus – June 2, 2014
 Multiple full day meetings throughout May 2014
Nisga’a
Lisims
Government
 Interim documents generated for review and
discussion
 Give and take
 Willingness by both parties to reach an agreement
““One Heart, One Path, One Nation”
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Barriers Broken
 Nisga’a business opportunities
Nisga’a
Lisims
Government
 Training and education
 Community support and involvement
 Commencement of Construction
 July 1, 2014
““One Heart, One Path, One Nation”
34
Questions?
Nisga’a
Lisims
Government
Success Story
Nisga’a Lisims Government
and
Avanti Kitsault Mining Ltd.
““One Heart, One Path, One Nation”
35