Strange Lake B-Zone Rare Earth Mine Project
Transcription
Strange Lake B-Zone Rare Earth Mine Project
Strange Lake B-Zone Rare Earth Mine Project Preliminary Information on a Northern Project For the Gouvernement du Québec Ministère du Développement durable, de l’Environnement et de la Lutte contre les changements climatiques / Kativik Environmental Quality Commission and Summary Project Description For the Government of Canada Canadian Environmental Assessment Agency March 2015 Strange Lake B-Zone Rare Earth Mine Project Preliminary Information on a Northern Project For the Gouvernement du Québec Ministère du Développement durable, de l’Environnement et de la Lutte contre les changements climatiques / Kativik Environmental Quality Commission and Summary Project Description For the Government of Canada Canadian Environmental Assessment Agency 60290419 March 2015 © AECOM All rights reserved. AECOM Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) AECOM Project No. : 60290419 Prepared on behalf of: Quest Rare Minerals Ltd. Main Contributors: Lucie Boisjoly Sébastien Boudreau Martin Côté Normand Gauthier Yves Leblanc Paul McIlvenna Valérie Tremblay René Robitaille Reviewed by: 60290419 – March 2015 Christen Audet i AECOM Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) List of Acronyms and Abbreviations BOD5: Biochemical Oxygen Demand – 5 day BTEX: Benzene, toluene, ethylbenzene, and xylene CCME: Canadian Council of Ministers of the Environment CEAA: Canadian Environmental Assessment Agency EA: Environmental Assessment ECP: Engagement and Communications Plan EIA: Environmental Impact Assessment ESIA: Environmental and Social Impact Assessment FEL: Frequent Effect Level FS: Feasibility Study IBA: Impact and Benefits Agreement JBNQA: James Bay and Northern Québec Agreement MAH: Monocyclic Aromatic Hydrocarbons MDDELCC: Ministère du Développement durable, de l'Environnement et de la Lutte contre les changements climatiques (Quebec Ministry of Environment) MDDEFP: Ministère du Développement durable, de l’Environnement, de la Faune et des Parcs (now the MDDELCC) MRNF: Ministère des Ressources naturelles et de la faune (now the Ministère de l'Énergie et des Ressources naturelles) Mt: Million Tonnes (metric) Mtpa: Million Tonnes (metric) per Annum NEQ: Quebec Enterprise (Business) Number NEQA: Northeastern Quebec Agreement NTS: National Topographic System OEL: Occasional Effect Level PAH: Polycyclic Aromatic Hydrocarbon PEL: Probable Effect Level PET: Positron emission tomography PFS: Pre-Feasibility Study RDL: Reported Detection Limit RMF: Residue Management Facility REE: Rare Earth Element REL: Rare Effect Level SAG: Semi-autogenous grinding SLBZ: Strange Lake B-Zone 60290419 – March 2015 i Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) SPIPB: Société du parc industriel et portuaire de Bécancour STP: Sewage treatment plant TEL: Threshold Effect Level TMF: Tailings management facility TREO: Total Rare Earth Oxide TSS: Total suspended solids VALE: Vale Newfoundland and Labrador Limited VEC: Valued Ecosystem Components VOC: Volatile Organic Compounds ii AECOM 60290419 – March 2015 AECOM Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) Table of Contents 1 2 Introduction ..................................................................................................................1 1.1 Name of the Project................................................................................................................... 1 1.2 The Proponent ........................................................................................................................... 1 1.3 Environmental Assessment Requirements ............................................................................ 2 1.3.1 Québec Process (North of the 55th parallel) .......................................................................................... 2 1.3.2 Federal Process ....................................................................................................................................... 2 1.4 Other Relevant Information ...................................................................................................... 2 1.4.1 List of Jurisdictions and Other Parties Consulted ................................................................................ 2 1.4.2 Regional Environmental Studies ............................................................................................................ 3 Project Description ......................................................................................................5 2.1 Project Objectives and Justification ....................................................................................... 5 2.2 Project Location ........................................................................................................................ 5 2.2.1 Land Tenure and Property ...................................................................................................................... 6 2.2.2 Geology and Mineralization .................................................................................................................... 7 2.2.3 Related Projects ....................................................................................................................................... 7 2.2.4 Subsequent Phases ................................................................................................................................. 9 2.3 Project Alternatives................................................................................................................... 9 2.3.1 Site Selection Alternatives for Key Infrastructure ................................................................................ 9 2.3.1.1 Process Plant and Ancillary Facilities ........................................................................................................ 9 2.3.1.2 Tailings Management Facility..................................................................................................................... 9 2.3.1.3 Airstrip ...................................................................................................................................................... 10 2.4 Physical Features of Preferred Option.................................................................................. 11 2.4.1 Mine Pit ................................................................................................................................................... 11 2.4.2 Explosives .............................................................................................................................................. 11 2.4.3 Ore Processing Facilities ...................................................................................................................... 11 2.4.4 Ore Stockpile .......................................................................................................................................... 11 2.4.5 Waste Rock, Overburden and Soil Stockpiles..................................................................................... 12 2.4.6 Tailings Management Facility ............................................................................................................... 12 2.4.7 Access Road .......................................................................................................................................... 12 2.4.8 Airstrip .................................................................................................................................................... 13 2.4.9 Other Buildings ...................................................................................................................................... 13 2.4.10 Water Supply .......................................................................................................................................... 13 2.4.11 Sewage Treatment ................................................................................................................................. 14 2.4.12 Power Supply ......................................................................................................................................... 14 2.4.13 Fuel Storage and Distribution ............................................................................................................... 14 60290419 – March 2015 iii Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) 3 iv AECOM 2.4.14 Stormwater Management ...................................................................................................................... 14 2.4.15 Waste Management and Landfill .......................................................................................................... 14 2.4.16 Emergency Response ........................................................................................................................... 14 2.5 Construction ............................................................................................................................ 15 2.5.1 Access Road and Airstrip ..................................................................................................................... 15 2.5.2 Camp, Mine and Supporting Infrastructure ......................................................................................... 15 2.5.3 Explosives .............................................................................................................................................. 15 2.5.4 Tailings Management Facility ............................................................................................................... 15 2.6 Operations and Maintenance ................................................................................................. 16 2.6.1 Mining ..................................................................................................................................................... 16 2.6.2 Explosives .............................................................................................................................................. 16 2.6.3 Mine Dewatering .................................................................................................................................... 16 2.6.4 Materials Handling ................................................................................................................................. 16 2.6.5 Ore Processing ...................................................................................................................................... 17 2.6.5.1 Crushing and Grinding ............................................................................................................................. 17 2.6.5.2 Flotation ................................................................................................................................................... 17 2.6.6 Tailings Management ............................................................................................................................ 17 2.6.7 Emergency Response ........................................................................................................................... 18 2.6.8 Environmental Discharges .................................................................................................................... 18 2.6.8.1 Air ............................................................................................................................................................ 18 2.6.8.2 Liquid Effluent .......................................................................................................................................... 18 2.6.8.3 Waste ....................................................................................................................................................... 19 2.7 Decommissioning and Rehabilitation ................................................................................... 19 2.8 Variants for Different Phases of the Project ......................................................................... 19 2.9 Project Schedule ..................................................................................................................... 20 Physical Environment ............................................................................................... 21 3.1 Climate...................................................................................................................................... 21 3.2 Ambient Air Quality ................................................................................................................. 21 3.3 Noise ......................................................................................................................................... 21 3.4 Geomorphology, Surficial Geology and Permafrost ........................................................... 21 3.4.1 Geomorphology and Surficial Geology................................................................................................ 21 3.4.2 Permafrost .............................................................................................................................................. 21 3.5 Hydrology and Fluvial Geomorphology ................................................................................ 22 3.6 Limnology ................................................................................................................................ 22 3.7 Surface Water Quality ............................................................................................................. 22 3.8 Soil Quality ............................................................................................................................... 22 3.9 Sediment Quality ..................................................................................................................... 22 60290419 – March 2015 AECOM 4 5 6 7 8 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) Biological Environment ............................................................................................. 23 4.1 Vegetation ................................................................................................................................ 23 4.2 Fish and Fish Habitat .............................................................................................................. 23 4.2.1 Fish Communities .................................................................................................................................. 23 4.2.2 Benthic Invertebrates ............................................................................................................................ 23 4.3 Amphibians and Reptiles .......................................................................................................23 4.4 Birds ......................................................................................................................................... 23 4.5 Mammals .................................................................................................................................. 24 4.5.1 Caribou ................................................................................................................................................... 24 4.5.2 Other Mammals ...................................................................................................................................... 24 4.6 Species at Risk ........................................................................................................................ 24 Socioeconomic Environment ................................................................................... 25 5.1 Land Use and Traditional Ecological Knowledge ................................................................ 25 5.2 Archaeology ............................................................................................................................. 25 5.3 Socio-Economic Issues .......................................................................................................... 25 5.4 Landscape ................................................................................................................................ 26 5.5 Significant Areas ..................................................................................................................... 26 Environmental Effects and Possible Impacts ......................................................... 27 6.1 Aboriginal Peoples .................................................................................................................. 27 6.2 Fish and Fish Habitat .............................................................................................................. 27 6.3 Migratory Birds ........................................................................................................................ 28 6.4 Transboundary Effects ........................................................................................................... 28 6.5 General Mitigation Measures ................................................................................................. 30 Consultation ............................................................................................................... 33 7.1 Public Consultation Modalities .............................................................................................. 33 7.1.1 Consultation Meetings........................................................................................................................... 33 7.2 Issues and Concerns Raised ................................................................................................. 35 7.2.1 Government Departments and Agencies ............................................................................................. 35 7.2.2 Aboriginal Groups ................................................................................................................................. 35 7.2.3 Non-aboriginal Stakeholders ................................................................................................................ 36 7.3 Engagement and Communications Plan .............................................................................. 36 Federal Involvement .................................................................................................. 39 8.1 Funding .................................................................................................................................... 39 8.2 Federal Lands .......................................................................................................................... 39 8.3 Federal Approval Requirements ............................................................................................ 39 60290419 – March 2015 v Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) AECOM References .............................................................................................................................. 41 List of Tables Table 2-1 Tailings Management Facility (TMF) Site Selection Matrix ............................................................ 10 Table 2-2 Estimated Quantities per Type of Material Transferred at the Mine Site ....................................... 17 Table 2-3 Key Schedule Milestone Dates....................................................................................................... 20 Table 6-1 Preliminary List of the Project’s Critical Environmental Components, their Key Indicators and Rationale......................................................................................................................................... 29 Table 6-2 Possible Impacts of Each Project Phase on Potential Valued Ecosystem Components ............... 31 Table 7-1 Government and other Institutional Stakeholders Consulted ......................................................... 33 Table 7-2 Aboriginal Governments and Institutions Consulted ...................................................................... 34 Table 8-1 List of Potential Federal Permits, Licenses and Authorizations Applicable to the Project ............. 39 List of Figures Figure 2-1 Communities in the vicinity of the SLBZ REE Mine Project ............................................................. 6 Figure 2-2 Quest Mineral Claims Property in the vicinity of the Strange Lake B-Zone ..................................... 7 Figure 2-3 Related Quest Project Components and Logistics ........................................................................... 8 Figure 2-4 Typical Road Cross-Section ........................................................................................................... 13 List of Appendices Appendix 1 vi Maps 60290419 – March 2015 AECOM Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) 1 Introduction 1.1 Name of the Project The name of the project is “Strange Lake B-Zone Rare Earth Mine Project” (SLBZ REE Mine Project). 1.2 The Proponent The proponent is Quest Rare Minerals Ltd (Quest), a Canadian exploration and development company focused on the development of its Strange Lake Rare Earth Element (REE) deposit in northeastern Québec. Name of the proponent: Quest Rare Minerals Ltd Address (Head Office): 1155 University Street, Suite 906 Montreal, Québec H3B 3A7 Chief Executive Officer: Name: Official Title: Peter J. Cashin, M.Sc., P. Geo. President & CEO Address: Quest Rare Minerals Ltd. 10 King St. East, Suite 900 Toronto, Ontario M5C 1C3 Telephone number: Fax number: Email Address: 1 (416) 916-0777 1 (416) 916-0779 [email protected] Principal Contact Person (for EA): Name: Official Title: Dirk Naumann, Ph.D. Executive Vice President - Development Quest Rare Minerals Ltd. Address: 10 King St. East, Suite 900 Toronto, Ontario M5C 1C3 Telephone number: Fax number: Email Address: 1 (647) 393 6783 1 (416) 916-0779 [email protected] Quebec Enterprise Number (NEQ): 1164687828 EA Consultant: AECOM Consultants Inc. Address 85 Ste-Catherine West Montreal, Québec H2X 3P4 60290419 – March 2015 1 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) Project Environmental Lead: Christen Audet, ing.f., Ph.D. Telephone number: Fax number: Email Address: 1 (514) 287-8500 ext. 8798 1 (514) 287-8600 [email protected] Quebec Enterprise Number (NEQ): 1161553129 1.3 AECOM Environmental Assessment Requirements The Project will require environmental assessments and approvals from multiple jurisdictions, as detailed further in the following sub-sections, based on the project’s scope and location (north of the 55th parallel) in Quebec. 1.3.1 Québec Process (North of the 55th parallel) According to Chapter II of the Environment Quality Act, RSQ, c. Q-2 and the James Bay and Northern Québec Agreement (JBNQA), all projects located north of the 55th parallel in Quebec are subject to a regional Environmental and Social Impact Assessment (ESIA) and Review Procedure. All mining developments are automatically subject to this ESIA and Review procedure (Schedule A of the Environment Quality Act). In this case, the procedure is administered by the Deputy Minister of the Ministre du Développement durable, de l’Environnement et de la Lutte aux changements climatiques du Québec (MDDELCC), with analysis and review undertaken by the Kativik Environmental Quality Commission. 1.3.2 Federal Process At the federal level, according to paragraph 16 (c) of the Schedule of the Regulations Designating Physical Activities, “The construction, operation, decommissioning and abandonment of a new rare earth element mine or gold mine, other than a placer mine, with an ore production capacity of 600 t/day or more” is a designated project under the Canadian Environmental Assessment Act, 2012. According to paragraph 26 (c), “The construction, operation, decommissioning and abandonment of a new all-season runway with a length of 1,500 m or more” is also designated. 1.4 Other Relevant Information 1.4.1 List of Jurisdictions and Other Parties Consulted The Project has consulted the Kativik (Québec Inuit), Québec, Newfoundland and Labrador, Nunatsiavut (Labrador Inuit) and federal governments or regional governing bodies. It also interests aboriginal groups, nongovernmental organizations and community stakeholders. Consultations have been initiated with the following Aboriginal groups, including: the Quebec Inuit, particularly the villages of Kangiqsualujjuaq and Kuujjuaq; the Naskapi Nation of Kawawachikamach, in Quebec; the Quebec Innu community of Matimekush-Lac John; the Labrador Inuit (Nain, Hopedale, Postville, Makkovik and Rigolet); and the Labrador Innu (Natuashish and Sheshatshit). Consultation has not yet begun with non-aboriginal communities and groups likely to have an interest in the Project. Refer to Section 7 for further detail on groups consulted as well as issues, concerns or questions raised. 2 60290419 – March 2015 AECOM 1.4.2 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) Regional Environmental Studies The Project is located in a remote area in Northern Quebec where there have been no known regional environmental studies. 60290419 – March 2015 3 AECOM Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) 2 Project Description 2.1 Project Objectives and Justification The Strange Lake B-Zone Mine project will produce a rare earth element (REE) concentrate to be further processed to specifications of industrial customers. Rare earth metals are critical materials used in permanent magnets for electric motors and in phosphors for fluorescent and LED lights. Permanent magnets in wind turbines and electric vehicles allow the electric motor to be smaller, lighter, more reliable and more efficient than alternative technologies. Phosphors are critical materials in energy efficient fluorescent and LED lights that emit light and light of different colours. Rare earth metals also have a number of smaller applications including lasers, Positron emission tomography (PET) scanners and specialty ceramics. The SLBZ project is ideally positioned to meet this growing customer demand. In this context, timely project startup will help secure a loyal customer base. 2.2 Project Location The project site is situated on lands known as Category III land subject to the James Bay and Northern Quebec Agreement (JBNQA) and the Northeastern Quebec Agreement (NEQA), which settle the respective land claims and Aboriginal rights of the Nunavik Inuit and the Naskapi Nation of Kawawachikamach (Map 1, Appendix 1). The Project site is located approximately (Figure 2-1): 235 km northeast of Schefferville, Québec; 150 km west of Nain, Newfoundland and Labrador; 125 km west of the Voisey’s Bay nickel-copper mine, owned and operated by Vale, near Nain; 1,100 km northeast of Québec City, Québec. Administration for the region is covered by the Administrative Region of the Nord-du-Québec and the Kativik Regional Government based in Kuujjuaq (325 km northwest of the mine). The nearest communities are predominantly aboriginal. The Strange Lake property is covered by Canadian National Topographic System (NTS) map sheets 24A08, 24A09, and 14D05. The latitude and longitude for the Project is approximately 56°19’22” N and 64°09’58” W (GEO NAD83). 60290419 – March 2015 5 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) Figure 2-1 2.2.1 AECOM Communities in the vicinity of the SLBZ REE Mine Project Land Tenure and Property All of the mineral claims comprising the Strange Lake project are entirely owned by Quest. The Strange Lake project is currently comprised of 211 active individual mineral claims covering a total area of approximately 9,367 hectares. The mineral claims in Québec entirely cover the B-Zone deposit (see Figure 2-2). 6 60290419 – March 2015 AECOM Figure 2-2 2.2.2 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) Quest Mineral Claims Property in the vicinity of the Strange Lake B-Zone Geology and Mineralization The Strange Lake deposit is part of a post-tectonic, peralkaline granite complex which has intruded along the contact between older gneisses and monzonites of the Churchill Province of the Canadian Shield. Mineralization of interest at Strange Lake occurs within peralkaline granite-hosted pegmatites and aplites and, to a lesser degree, within the host granites, particularly in intra-pegmatitic granites. 2.2.3 Related Projects As shown in Figure 2-3, Quest is developing a concurrent project to provide private road access from the Quebec border to the Port facility located on the Labrador coast to the east. This will be constructed over a 152 km distance of flat and hilly segments. The Road will entail three major water crossings requiring bridges or arch culverts before leading to a port terminal, with transfer infrastructure such as a concentrate storage shed, in Edward’s Cove off of Anaktalak Bay near Vale’s Voisey’s Bay mine site, located about 30 km southwest of Nain. These Project Components will be the subject of an Environmental Assessment under requirements defined by the province of Newfoundland and Labrador and by the Nunatsiavut (Inuit) Government, in addition to CEAA as applicable. 60290419 – March 2015 7 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) Figure 2-3 8 AECOM Related Quest Project Components and Logistics 60290419 – March 2015 AECOM Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) The mineral concentrate would be shipped to a second related Quest project: a processing facility owned and operated by a distinct Quest subsidiary (NEQ 1169448629) – QTM Extraction Ltd., to be located in Southern Québec (see Figure 2-1). The proposed site for the processing plant and residue storage facility (RSF) is located in an Industrial Park, which is managed and operated by the Société du parc industriel et portuaire de Bécancour (SPIPB), a provincial crown corporation. The industrial park is located on the southern shore of the SaintLawrence River and within the City of Bécancour, just above the 46th parallel. This Project Area would be potentially subject to Quebec’s southern environmental assessment process, in addition to CEAA if applicable. These related projects will be described in different project description documents. 2.2.4 Subsequent Phases Beyond the 30-year planning horizon for the current mine plan, mineral resources within the B-Zone, as well as other potential deposits within Quest’s Quebec properties found within the larger Strange Lake Alkali Complex, are expected to lead to subsequent phases of mining. These subsequent phases are not included in the current project description, nor will they be considered in the Environmental Assessment. 2.3 Project Alternatives 2.3.1 Site Selection Alternatives for Key Infrastructure Maps 2 and 3 (Appendix 1) show respectively the preferred mine site layout and the detailed layout around the ore processing facilities and the accommodations camp. Several of the key infrastructure locations were established further to compare several variants. 2.3.1.1 Process Plant and Ancillary Facilities To select the best location for the Process Plant and related facilities in the vicinity of the mine, a trade-off study was conducted in which three locations were compared. The three options considered for the Process plant were all located more than 1 km from the pit crest to avoid interaction with blasting in the pit. For winter season protection, the Plant and the Camp were located close enough to be linked by walking through an arctic corridor. Selection took into account economical, technical, environmental, social, health and safety criteria. 2.3.1.2 Tailings Management Facility Potential locations of the Tailings Management Facility (TMF) were considered within a 10 km radius of the B-Zone deposit where the open pit is located (see Map 4, Appendix 1), as indicated in the MDDELCC Directive 019. Topography, water bodies and wetlands limited access to much of this area. The proximity of the Newfoundland and Labrador border also constrained land available for a TMF within a 10 km radius. For these reasons, the following territory was not retained for further consideration: the eastern part of the studied area (in Labrador, or near the provincial border in Quebec) as well the West and North part of the Quebec territory across Lake Brisson. Five sites located south of the mine pit were selected and examined in greater detail. Table 2-1 presents the results of the analysis of the five sites considered. TMF Option no. 1 was retained for further consideration, including condemnation drilling to ensure that the future access to a mineralized area would not be blocked. 60290419 – March 2015 9 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) Table 2-1 TMF # 1 AECOM Tailings Management Facility (TMF) Site Selection Matrix Residue Management Alternative Dry stack with potential for slurry deposition Result Preferred option Preliminary Environmental Justifications Located in the same aquatic system as TMF # 4, but at its headwaters. Other Considerations (Technical, Legal) Within the footprint of the Strange Lake Alkalic Complex that contains the REEs ore, but no significant REEs value further to condemnation drilling. Sufficient capacity over the 30-year period and can be expanded to be significantly larger. Potential for slurry deposition as a fallback management approach should future studies demonstrate dry-stacking as economically unfeasible. 2 Dry stack Not retained for further studies Limited aquatic system. Too far from the B-Zone and too close to the Labrador-Quebec boundary. Potential for delays to officially survey interprovincial border at this location. To be considered for long term expansion of the mine life. Advantage of being partly outside the Strange Lake Alkali Complex. 3 Dry stack Not retained for further studies Presence of ponds and water courses with fish habitat. Topography not suitable. 4 Slurry deposition Rejected Location of a small lake presumed to have fish habitat, over an area of 0.25 km2. Best available topography to set up a tailings dyke. 4A Dry stack Second option Limited aquatic system Within the footprint of the Strange Lake Alkalic Complex that contains the REEs ore. Near the preferred airport location To be considered for long term expansion of the mine life. 2.3.1.3 Airstrip Seven possible locations for positioning the airstrip were identified, also within a 10km radius approximately. Only two options were retained after considering surrounding topography, drainage, Obstacle Limitation Surface restrictions, prevailing winds, environment restrictions (proximity to observed harlequin duck habitat, caribou), distance from the other Mine Site Facilities and the road alignment. These two options, both in the south part of the 10 km radius, were compared with each other based on technical and environmental criteria. The preferred option (shown on Map 2) was selected based upon the following criteria: Prevailing winds - the highest percentage of favorable prevailing winds. Environment analysis – less potential impact on ecological systems and water resources. 10 60290419 – March 2015 AECOM 2.4 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) Physical Features of Preferred Option The following sections provide a brief description of key infrastructure planned for the site. 2.4.1 Mine Pit The Project’s mineral resources are contained in a single deposit: the B-Zone. The mine plan may develop more than one pit within this deposit. The current 30-year mine plan scenario, subject to change, has identified a smaller standalone pit east of a main pit area (Micon, 2014); both are within the B-Zone (Map 2). Mining is designed to be a standard truck and shovel open pit operation. The total mineralized material to be mined is estimated at 85,215,000 tonnes (dry basis). The mine will have a median annual rate of material movement of approximately 4.9 Mtpa including 1.6 Mt of ore for processing and 2.1 Mt to a lower grade stockpile. The pit will be continually developed throughout a 23-year life, after which the processing feed will be taken from the lower grade stockpile. Pit design is further constrained by a 120 m offset from Lake Brisson which lies to the northwest, as shown on the layout in Map 2 (Appendix 1). 2.4.2 Explosives Explosives manufacturing and storage facilities will be located in proximity to the mine pit. The explosive plant will be located on a spur road off the main access road, within about 5 km of the open pit. The exact location will be determined based on safe distances from other infrastructure and activity areas. 2.4.3 Ore Processing Facilities Ore crushing, grinding and beneficiation by flotation will be designed to operate for 12 months per year at a relatively constant design output of 357,600 tonnes of concentrate annually (dry basis), over the 30-year span of the project. The crushed ore feed to the concentrator will vary, due to the current plan to prioritize the most accessible higher grade ore. For the first 23 years, an average of 1,575,300 tonnes per year, or up to 1,788,000 tonnes per year (dry basis), of mainly high grade ore will be transferred to the processing complex. A plant expansion, will then enable the processing of up to 3,305,000 tonnes per year of lower grade stockpiled ore from year 24 onwards to the end of planned production. The crushing, milling and flotation circuits, as well as tailings filtration, will have an increased capacity for the last 7 years of operation. There will be two main process buildings forming the processing complex, one for the crushing and milling (grinding) circuit and another one for the flotation circuit. Near the flotation building, there will be a concentrate storage area with a storage capacity equivalent to 7 months of concentrate production, which represents approximately 238,400 tonnes. This concentrate holding capacity is required due to the constrained marine st th shipping season which is essentially restricted to five months per year (July 1 to Nov 30 ), to avoid shipping in sea-ice conditions. 2.4.4 Ore Stockpile The extracted medium and low grade mineralized material will be stockpiled to be processed later after year 24 of the mine plan. The low grade ore stockpile will be located in such a way that it will facilitate the reclaiming in the future, as shown in Map 2 (Appendix 1). The exact location will be confirmed after verifying in situ to minimize any potential effects on fish habitat and for local technical constraints. 60290419 – March 2015 11 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) AECOM Environmental stockpile design for groundwater protection and wastewater treatment will be developed based on local site conditions and Quebec Directive 019. If mining is extended beyond 30 years, the lower grade stockpiled material would be completely exhausted by the 38th year; however, the current project description assumes a 30-year life, which results in 26,018,000 tonnes of lower grade mined mineralization remaining in the low-grade stockpile after 30 years. 2.4.5 Waste Rock, Overburden and Soil Stockpiles Where possible, overburden and waste rock will be stockpiled in segregated piles east of the mine pit (see Map 2; Appendix 1). An estimated 6,777,000 tonnes of overburden will be removed from the pit area. The waste rock stockpile will be designed for 23,939,000 tonnes, the maximum extent over 30 years as shown in Map 2 (Appendix 1). Potential reuse of waste rock will be considered based upon geotechnical and geochemical investigations to determine the technical and environmental suitability. Any topsoil or other soil substrate suitable for local re-vegetation will be stockpiled nearby for future and/or progressive remediation of the site. Environmental stockpile design for groundwater protection and wastewater treatment will be developed based on local site conditions and Quebec Directive 019. At a minimum, the design of the storage areas for waste rock, soil and overburden, will allow for stormwater runoff from the stockpiles to be collected by a surrounding drain or berm and conveyed to a sedimentation pond for suspended solids removal prior to discharge to the environment. If necessary, additional measures will be taken to minimize any potential impact on the environment. Supplementary geochemical and geotechnical investigations will be undertaken to finalize the design of the waste rock and overburden stockpiles. 2.4.6 Tailings Management Facility Waste residues from the flotation plant will be stored in the Tailings Management Facility (TMF). In order to minimize any potential effect to the local environment, it is expected that the tailings will be thickened, filtered, mixed with a cementing agent, transported by truck to the TMF, and dry-stacked. The TMF shown in Map 2 represents its expected size at the end of the 30th year of mine life. Supplementary geochemical, hydrogeological and geotechnical investigations will be undertaken to finalize the design of the TMF and associated wastewater holding pond for sedimentation and/or retention for treatment. Groundwater protection and wastewater treatment will be developed based on local site conditions and Quebec Directive 019. 2.4.7 Access Road Site access roads will link the mine and the ore processing area with the other buildings, as well as with the stockpiles (ore, waste rock, overburden, topsoil), sedimentation ponds, TMF, landfill and airstrip. In addition, the first 18 km of the all-weather road linking the Mine to the Port facility located on the Labrador coast to the east, will be located in the province of Québec. The preliminary road design is for an all-weather access road with the following characteristics: use of crushed rock or gravel surface to sustain anticipated traffic volumes; 8 m minimum width; avoidance cuts in permafrost areas; balancing of cut and fill as much as possible; minimizing 12 60290419 – March 2015 AECOM Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) stream crossings and providing limiting grade to 11% (see Map 2, Appendix 1). Figure 2-4 shows the typical cross-section for the main all-weather road. Figure 2-4 2.4.8 Typical Road Cross-Section Airstrip The preferred airstrip site is approximately 12.5 km away from the accommodation camp and facilities. The airport facility will be capable of operating 24 h/d. The runway and taxiway will be constructed of gravel. A trailer will be used for the terminal building, with capacity for approximately sixty passengers, including washroom facilities, storage area, and office space. In addition, there will be an airplane storage and maintenance building, a private airstrip, and a fuel storage facility. In the initial project construction phase, the airport will have one runway of 1,500 meters by 30 meters wide (gravel), which can accommodate plane models like the Bombardier Q 400. The current project phase includes an option of extending the runway to 1,950 meters by 45 meters wide to accommodate larger planes (B737-200) for the construction phase and/or at a future time during mine operations. 2.4.9 Other Buildings The camp will be a modular design constructed to industry acceptable standards for long-term, permanent site accommodations for mine operations personnel, with additional space for truck drivers and other visitors. Where possible, indoor corridors will be provided to link the buildings. A multi-functional building will incorporate heated and non-heated warehouses, a change-house, lockers, laundry facilities, medical and fire safety facilities, a laboratory, offices and meeting rooms; as well as garages for maintenance, emergency vehicles and associated emergency response equipment storage. 2.4.10 Water Supply Lake Brisson is expected to be the major source of service water for processing. The level of treatment for industrial use will be determined during the Feasibility Study. A pumping station will be established on the bank of Lake Brisson, with an intake deep enough to avoid the impact of ice built-up during the winter. A pipeline, approximately 1.5 km, will deliver water to the treatment facility. A 5 m wide service road will also be required. Lake Brisson is also a potential source for human consumption. The SG-1 esker extending east from the ore processing complex and base camp is considered a second potential groundwater source for potable water. More detailed analyses will be required to confirm suitability of each source and, in line with best practices and regulation standards, all potable water will be regularly tested and treated before use. 60290419 – March 2015 13 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) AECOM The esker ground water will be the most likely source of fire water. It will be pumped into a fire water storage tank, connected to fire protection systems at the multi-purpose building and at the camp. Any water needed for equipment maintenance and/or dust suppression will be taken from this tank but always maintaining the minimum volume required for fire protection. 2.4.11 Sewage Treatment The sewage treatment plant (STP) at the mine site will comprise of a containerized, skid-mounted plant with septic and equalization tanks. This system will be designed with a technology which meets required levels of total suspended solids (TSS) and biochemical oxygen demand (BOD). 2.4.12 Power Supply The power plant near the base camp will be equipped with a battery of five diesel generators of 2.5 MW each (four running and one in backup). The airstrip will also have its own supply, provided by a 250 kW diesel generator. All mine pit equipment will be mobile (diesel powered). 2.4.13 Fuel Storage and Distribution Fuel storage will be of sufficient size to store the equivalent of approximately seven months of supply (approximately 15,000 m3 capacity). A single bulk fuel tank for Arctic diesel will be located in a lined containment area. Aboveground double-walled piping will connect the tank to the generators. A refuelling station will serve light and heavy vehicles. The airstrip will also be equipped with a 30 m3 tank for the storage of aviation fuel to be used in case of emergency. The fuel will be delivered to the mine mainly by road tanker as required. At the mine site, fuel will be unloaded from trucks via a dedicated “docking” station with adequate secondary containment. 2.4.14 Stormwater Management All non-contact storm water will be diverted away from the main working areas by an appropriate ditch network. 2.4.15 Waste Management and Landfill Recoverable materials will be compacted on site, before transportation off-site. Hazardous and other special waste will be stored temporarily at a secure location onsite, with appropriate secondary containment, before being sent to an authorized treatment/disposal facility offsite. Kitchen/organic waste and other non-recyclable and nonhazardous domestic wastes will be dispatched by road twice a week to the port site for incineration. A local landfill to accommodate non-hazardous solid waste will be built near the TMF, along the access road between the airport and the open pit, at the mine site. A bioremediation pad will also be established for contaminated soil and snow. 2.4.16 Emergency Response Medical and emergency response facilities, including fire truck(s), will be located at the multifunctional building next to the worker’s camp. An ambulance will be available and maintained in a dedicated ambulance bay. A nurse’s station will be provided at the worker’s camp. A storage area for environmental response equipment will also be available at a centralized location in the event of any major incidents (i.e. spills). 14 60290419 – March 2015 AECOM Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) 2.5 Construction 2.5.1 Access Road and Airstrip Construction at the mine site will benefit from the completion of an access road (18 km) in Quebec and completion of the airstrip area. In the meantime, a temporary short-runway airstrip can be used for Twin Otters and other smaller aircraft; this is located along Lake Brisson, about 400m east of the existing exploration camp. A temporary wharf next to this existing exploration camp may also be set up for float planes to land on Lake Brisson during the summer. 2.5.2 Camp, Mine and Supporting Infrastructure In addition to expansion of the existing exploration camp as needed, temporary camps may be installed at other locations for site preparation and road construction at the mine site. Earthworks activities will follow, beginning with the area around the mine maintenance facilities, the fuel storage pad, and the local road network. Haul roads will be built with an inter-berm width of 19 m, suitable for trucks carrying a 55 t payload. Roads will be constructed or extended as required during the pre-production and operational periods. The main camp and processing area is located on a esker (SG-1) about 2 km east of the B-Zone. This area will first be exploited for sand and gravel for civil works associated with the road network and other site preparation in relation to the mine stockpiles. Once leveled, some of this area may also serve as a temporary laydown area. Building on this ground will not likely require foundation piles due to sufficient bearing capacity. Note that part of this esker already serves as a temporary airstrip for the Quest’s pre-development activities. After the above activities, the construction of the ore processing complex (with crusher), the temporary power generators, offices, mine maintenance buildings and fuel storage tank will be undertaken. At the same time, civil works will be completed to prepare stockpile platforms, including the one for waste rock, and the related sedimentation pond(s). These installations will allow the project to start mine pre-stripping, ore mining, and crushing activities. Following these activities, steel structures and mechanical equipment will be installed for the processing complex and concentrate storage area. Finally, electrical and instrumentation will be completed and commissioning performed for all systems. 2.5.3 Explosives The selected explosives supplier will be responsible for the construction of an emulsion plant on the mine property, within about 4.5 km of the mine pit along the access road. 2.5.4 Tailings Management Facility An initial earthen embankment will be constructed along the toe of the dry-stacked impoundment to contain the tailings and prevent erosion loss. This embankment would be raised with till, waste rock, or potentially amended tailings using an upstream construction method. An under drain system will be installed to collect interflow leachate and shallow groundwater for treatment as required before discharge. Also, secondary access roads from the plant and the material borrow/stockpile areas will be constructed. 60290419 – March 2015 15 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) 2.6 Operations and Maintenance 2.6.1 Mining AECOM Mining will be undertaken by Quest using its own equipment and workforce. The pit will be developed based upon an optimal extraction sequence over 23 years. Mining activities will include: drilling and blasting; excavation and haulage of mineralized material (ore) to the ore processing area; oversize breakage; excavation and haulage of the waste rock to the waste rock stockpile; and, excavation and haulage of the low grade ore to the low grade stockpile. 2.6.2 Explosives The selected explosives supplier will be responsible for delivery of emulsion, non-electric detonators, boosters and other blasting accessories to the pit blasting crew. 2.6.3 Mine Dewatering Dewatering is required both inside and around the perimeter of the mine pit to prevent flooding delays in mining operations. There are three (3) primary sources of water entering the pit: precipitation, groundwater, and potentially water from a minor fault structure connected with the lake. Waters entering the open pit can be removed from specific sumps to be strategically constructed and maintained across the bottom of the mine pit. These sumps will be dewatered by sump pumps within the mine, to direct water to treatment as required. Incoming (non-contact) groundwater may also be intercepted via peripheral well pumps and released to the environment or recycled for use as fresh water. 2.6.4 Materials Handling Table 2-2 below presents the estimated quantities of material (ore, concentrate, waste rock, overburden and process residues) to be generated by the project, including an indication of Total Rare Earth Oxides (TREO). This scenario - subject to change as pilot testing progresses - assumes 20% flotation mass pull for the first 23 years, and then a reduced mass pull in the final 7 years to produce a roughly constant mass of flotation concentrate. 16 60290419 – March 2015 AECOM Table 2-2 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) Estimated Quantities per Type of Material Transferred at the Mine Site Type of Material Total Material Movement Ore Feed to the Mill (years 1-23) Ore Feed to the Mill (years 24-30) Low Grade Ore (stockpiled from years 0-23), then gradually processed to the mill Flotation Concentrate Overburden Waste Rock Process Tailings 2.6.5 Yearly Quantities (Mt/y) 3.09 - 6.76 1.40 – 1.79 Quantities for 30 years (Mt) 138.2 59.2 3.1 - 3.3 Comments Average TREO: 1.3% Average TREO: 0.9% 1.25 – 3.52 48.3 26 Mt of low grade ore to remain on site after 30 years 0.28 - 0.36 0 - 1.45 0 - 1.88 1.12 - 2.64 9.8 6.8 23.9 47.4 Average TREO: 4.2% At Mine Site only Ore Processing The crushing circuit is designed to operate for 365 days per year, 12 hours per day. The grinding, flotation and dewatering circuits are designed to operate for 365 days per year, 24 hours per day. 2.6.5.1 Crushing and Grinding The primary crushing will consist of a jaw crusher to reduce run-of-mine material to less than 150 mm. Crushed mineralized material will then be ground to a particle size of less than 40 μm (for 80% of particles or P80) in a closed circuit composed of a semi-autogenous grinding (SAG) mill and a ball mill, in circuit with hydrocyclone classifiers, and a closed loop pebble crusher acting on any oversize material screened after the SAG mill. The grinding circuit product particle size was selected based on the required grind size for effective liberation of the rare earth and yttrium-bearing minerals. 2.6.5.2 Flotation The milled product is then sent to the flotation circuit comprising a conditioning stage and four rougher stages to generate a concentrate and a residue. The flotation concentrate will be thickened and then dewatered to reduce moisture to less than 10%. The flotation tailings, comprising mostly of non-REE mineralized gangue, will be sent to the TMF. Flotation concentrate will be loaded into trucks (side-dumper trailers pulled by tractor) for delivery to the Port facility from where it will be shipped for further processing. 2.6.6 Tailings Management The dewatered tailings would be mixed with a cementing agent to maintain the stability of the tailings and provide strength to the residue mass within the TMF and to prevent re-suspension of the tailings particles during precipitation and snow-melt events. The dewatered residue would be loaded onto trucks and hauled to the TMF. The tailings will be end dumped and spread in approximately 30 to 40 cm loose lifts and compacted by mobile equipment. Note that this rate will approximately double after the 23rd year. Seepage from the tailings is expected to be limited due to their low hydraulic conductivity and the addition of the cementing agent. Contact between the tailings and groundwater will be minimized by the installation of an under- 60290419 – March 2015 17 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) AECOM drain system within the impoundment. Seepage that does occur will be collected in the drainage system and conveyed out of the impoundment area to be treated as required, and then discharged to the environment. Runoff and snowmelt over the surface of the tailings will be collected in a peripheral drain, treated as required, and then discharged to the environment. On the periphery of the TMF, surface runoff will be collected by drains/berms and diverted around and away from the impoundment area. Additional drains will also be provided for the various phases of construction, as the TMF expands over 30 years. The embankment will be constructed in stages to maximize the potential for gravity flow of surface runoff to the sedimentation ponds. 2.6.7 Emergency Response Qualified personnel trained in first aid and emergency response will be available. When necessary, an air ambulance will take patients to a hospital facility located in a major center such as the Labrador Health Centre located in Happy Valley-Goose Bay. The same centers will be called upon to support response to any environmental emergencies. 2.6.8 Environmental Discharges 2.6.8.1 Air The main air emissions sources (greenhouse gases, particles, etc.) will be from mining, blasting and crushing activities, concentrate storage, power supply (generators) as well as vehicular traffic for the transport of ore, waste rock, concentrate and other transportation activities on the site. 2.6.8.2 Liquid Effluent Contact Runoff Water Several ponds will be required to manage the surface runoff water in contact with mine activities, the processing area, stockpiles and the TMF. They will each be located at the lower point of each affected watershed. Retention ponds will be used when the water needs to be treated for removal of dissolved components before being discharged to the environment. Sedimentation ponds will be for suspended solids removal only. Process Wastewater According to the mass balance of the ore processing plant (crushing, grinding and flotation), there will no liquid effluent produced by the process. A water make-up estimated at 42 m3 per hour is required. Any wastewater generated during maintenance will be tested and appropriately treated before release to the environment Wastewater Treatment and Discharge A wastewater treatment unit will be installed within or near the ore processing area. A main discharge point for treated water is anticipated to Lake Brisson in the wide bay between the mine pit and the base camp and processing area. Though bathymetry of this area of the lake has been mapped, the exact discharge location has yet to be determined and will depend on the final site layout. 18 60290419 – March 2015 AECOM 2.6.8.3 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) Waste Flotation residue The flotation residue will be disposed of at the TMF described in previous sections. This facility will be designed and managed in accordance with the requirements of Quebec Directive 019. Other types of waste A landfill to accommodate the non-hazardous solid waste will be constructed along the access road between the airport and the mine pit in a suitable area according to the topographical characteristics. It will be accessible by a service road designed for light vehicles. A contaminated soil and snow pad will be constructed near the landfill and used also for soil remediation. The pad of 2,500 m2 will be available to receive and treat or store the possible contaminated soils (or snow during winter) coming from accidental spills. Whenever possible, soil contaminated with hydrocarbons that can be bioremediated will be treated on site by land-farming. Contaminated soils that cannot be treated on-site will be stored and shipped in the same manner as hazardous wastes. All non-hazardous and non-recyclable solid waste generated at the Mine will be incinerated at the port site or be sent to the future landfill. Recoverable materials (domestic paper/cardboard, plastics and metals) will be compacted on site, and then sent offsite to a sorting facility. Kitchen/organic waste and other non-recyclable and non-hazardous domestic wastes will be stored temporarily in plastic bags inside a bear proof steel clad shed at the camp site. The waste will be shipped by trucks at least twice a week to the port for incineration. Inert materials (glass, non-recyclable metal, sludge from wastewater treatment system) and non-hazardous waste that cannot be incinerated due to their dimensions will be disposed of in the landfill. Hazardous waste and special wastes other than used oils will be stored in sealed shipping containers within secondary containment areas and will be shipped to an authorized off-site treatment/disposal facility. It is assumed that used oil will be burned on site in a dedicated furnace to produce heat, or burned by the generators in the power plant. 2.7 Decommissioning and Rehabilitation In anticipation of eventual mine closure after 30 years of operation, a conceptual closure plan was prepared in accordance with the Québec Mining Act and related site restoration guidelines (Ministère des Ressources naturelles, 1997). Upon closure, it was assumed that future land use would revert to wildlife habitat and that disturbed areas will be returned to the pre-mining state so that any traditional land-use activities can resume. It was also assumed that progressive rehabilitation will be carried out during operations for the TMF (tailings site). For the current mine plan scenario, rehabilitation of the open pit cannot commence until its development ceases after year 23. The access road will continue to be used during the life of the Mine Processing Facility. An allowance of 10 years for post-closure monitoring was made to demonstrate achievement of the closure criteria and objectives. Progressive dismantling of project infrastructure, remediating and monitoring of residual impacts on soil or water quality, and restoring of wildlife habitat will be required. 2.8 Variants for Different Phases of the Project Process pilot testing and progressively more advanced engineering and project planning studies are expected to continue optimizing the project in terms of cost, schedule and environmental footprint. The below list of variants, and others, may be considered for the Project: 60290419 – March 2015 19 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) AECOM Site Preparation: A temporary winter road from the Labrador coast, or other mode of winter transportation (i.e. winter landing strip), will be assessed as an option to bring heavy materials and equipment to the site, to begin staging before the start of construction. Construction: Modular, containerized and other pre-fabricated options for buildings and equipment will be considered, given climatic constraints, site conditions and potential transportation restrictions. Operations: Photometric sorting of ore will be assessed as an additional mine site processing step prior to flotation at the mine site. If selected, it may reduce the equipment size of the subsequent flotation stage. Restoration: The current closure concept assumes that the site will be returned to a pre-project state as wildlife habitat, whereby traditional activities (hunting, fishing, and food gathering) can resume. Subject to community and government consultation, alternative end land-uses may be considered, such as leaving the airstrip and/or part of the road network as a continued basis for other forms of development in the area. 2.9 Project Schedule The Quest Project developed a schedule showing duration and staging of key project phases, including preparation of the site, construction, operation, decommissioning and abandonment. Following commissioning and the start-up of the plant, a life of mine of 30 years is planned. During this time, normal operations will include maintenance and replacement of equipment and other infrastructure as required. To facilitate schedule comprehension, a list of key milestones is provided below up to first ore delivery and beyond, including closure and abandonment (Table 2-3). Table 2-3 Key Schedule Milestone Dates Key Milestone Planned Dates Start Final Phase of Pre-feasibility Study (PFS) February 2015 Submit EIA Preliminary Information Complete PFS Start Feasibility Study (FS) Submit EIA Report Complete FS and commence detailed engineering EIA Decision March 2015 June 2015 September 2015 April 2016 September 2016 October 2016 Delivery of construction permits - Early works June 2017 Start of construction – Early works June 2017 Delivery of Construction permits July 2017 Construction at mine site July 2018 Start mining and commissioning of ore processing July 2019 First ore delivery September 2019 Decommissioning and Dismantling 2049-2051 Environmental Monitoring 2051-2061 Site Abandonment 20 2062 60290419 – March 2015 AECOM Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) 3 Physical Environment 3.1 Climate Located within the Taiga Shield Ecozone, the SLBZ Project site experiences a subarctic climate with long, cold winters and short, cool summers. Daily average temperatures above freezing are restricted to the months of May to September. Temperatures can reach as low as -45oC in the winter months. Precipitation is low to moderate, averaging approximately 250 to 500 mm per year. Snow and freshwater ice cover persist for six to eight months of the year. Evapotranspiration rates are very low resulting in water-logged terrain in many areas during the summer months. Discontinuous permafrost at varying depth is expected. 3.2 Ambient Air Quality The nearest ambient air monitoring station is located in Goose Bay and only measures ozone. Therefore, in situ baseline data was collected at the Strange Lake mine site. Ambient air quality parameters were selected based on pollutants that will likely be emitted by the Project, because the site is located in an area receiving very little pollution from anthropogenic sources. The following pollutants were analyzed: PM2.5, PM10, TSP, metals with selected REEs (as particulate), SO2, NO2, VOC, asbestos, and radon. No anomalies were noted: air quality results were typical of those seen in remote and undeveloped areas. 3.3 Noise In 2011, 24 hours of baseline sound pressure (noise) was evaluated at the Mine site, at a distance sufficiently away (>1 km) from any active exploration drilling in the area to minimize sound interference. The maximum hourly sound levels (LAeq 1h) measured at the monitored site was 37.7 dBA during the day and 31.5 dBA during the night. 3.4 Geomorphology, Surficial Geology and Permafrost Geomorphology, surficial geology and permafrost were assessed and described using existing information, field investigations in 2011, and a review of aerial photography, including a high-resolution orthophotographic survey with 15 cm to 25 cm ground resolution completed in September 2012 for the Mine site. The following subsections summarize the results. 3.4.1 Geomorphology and Surficial Geology The entire study area was covered by the Laurentide Ice Sheet during the later phase of the Wisconsinan glaciations. The mine site is dominated by a thick till blanket with a hummocky surface expression composed of lodgement and overlying ablation till. This area is characterized by numerous glacial features including roche moutonées, drumlins, crag and tail formations, and undulating till ridges (Rogen moraines), oriented east to northeast / west to southwest, parallel to ice flow direction. Much of the till blanket is overlain by an organic veneer and is characterized by poor drainage, particularly in lower-lying areas between the drumlinoid ridges. Glaciofluvial outwash sediments occupy the main drainage channels throughout the study area; kame and kettle topography and long, sinuous esker ridges are characteristic of these areas. 3.4.2 Permafrost The Mine site is located in an area where over 50% of the land surface contains permafrost. Visual evidence of discontinuous permafrost was observed in the form of large fields of frost boils (also known as “mud boils”), small polygons created by a network of near-surface ice wedges, cryogenic mounds and thermokarst lakes, some of which suggests permafrost degradation in various areas of the Project site. The ground thermal regime is 60290419 – March 2015 21 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) AECOM dynamic and sensitive to changes in earth material properties, surface cover (including seasonal snow), climate and hydrogeology. 3.5 Hydrology and Fluvial Geomorphology Surface water features, which normally make up a high proportion of the landscape in northern Québec, are present at the site in the form of lakes, wetlands, and dense tributary networks that drain the area over impermeable surface substrates (frozen, dense basal till and/or shallow to bedrock). Approximately 80% of the mine site area drains through Lake Brisson, followed by Lake Napeu Kainiut, into the Déat River watershed in Québec, which leads eventually into the George River System (about 100 km downstream). 3.6 Limnology Limnological conditions of lakes in northern Québec are typically oligotrophic, with few nutrients and low biological productivity. This is the case of Lake Brisson and Lake Napeu Kainiut, the area’s two major lakes, in spite of being fed by a diversity of small lakes, ponds and watercourses, including intermittent streams fed by a wide variety of overland sources. This was confirmed by laboratory analyses of water samples and in situ surface water measurements. 3.7 Surface Water Quality Surface water quality was monitored in 2011 and 2012 at twenty-three sampling stations located across the Project area to capture spatial variability for the range of water bodies in Project area. Data compiled for four seasons, including winter, revealed relatively low concentrations of metals, radioisotopes, nutrients and other elements across the Project site. Some seasonal and interannual variability was noted for key parameters such as pH. 3.8 Soil Quality Based on 2011-12 results for thirty-three surface soil samples distributed over the Project area, collected according to MDDELCC procedures, from a depth of approximately 0.3 to 0.5 m: Soil quality results were fairly consistent throughout the Site, including concentrations of REEs. Metals are all under the MDDELCC “A” criterion (Churchill-Rae). In terms of radioisotopes, Ra-226, Th-228, Th-230, Th-232, U-234 and U-238 were detected at low levels in some stations. Concentrations of total hydrocarbons, VOCs and PAHs were all below their respective MDDELCC guidelines and/or the analytical detection limits for these parameters. 3.9 Sediment Quality For sediment at seven lacustrine stations within Lake Brisson, and in five streams stations, based upon samples collected in 2011 and 2012, results for metals, REEs and radioisotopes are considered natural occurrences reflecting local mineralogy and background conditions. Oligotrophic conditions were confirmed by measured nutrient indicators. Polycyclic aromatic hydrocarbon (PAH), C10-C50 hydrocarbons were not detected (below RDL). 22 60290419 – March 2015 AECOM Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) 4 Biological Environment 4.1 Vegetation The Project area is characterized by arctic vegetation dominated by wetlands, which cover 45% of the study area. Due to limited surrounding relief, habitat diversity is relatively low. Tall shrubs (glandular birch, alpine bilberry) and trees (white spruce) were restricted to the transitional slope between the central plateau and Lake Brisson as well as along streams and some periphery of lakes (tamarack). Greater plant diversity was found in riparian areas and near the shore of Lake Brisson. The most diverse were certain fens and small marshes with calciphile flora. Snowbeds was another unique micro-habitat observed for plants. Based on a total of eighty-eight vegetation plots and forty-three map check points, a total of one hundred and fifteen vascular plant species were inventoried, including two trees, thirty-eight shrubs and seventy-five herbaceous species. 4.2 Fish and Fish Habitat 4.2.1 Fish Communities In August 2011 and 2012, fish were found at all stations except for two stations, including one located in the vicinity of the proposed lowgrade stockpile location (Map 2, Appendix 1). The eight species captured (Arctic char, brook trout, lake trout, round whitefish, longnose sucker, burbot, lake chub, and mottled sculpin) were typical of a cold freshwater thermal regime. Lake trout and longnose sucker were the two most abundant species in lakes, while brook trout dominated the stream catches. Juvenile lake trout, lake chub and long nose sucker were also present in some streams. Both lake trout and Arctic char were found to be using the same lacustrine habitat. Spawning surveys were conducted with the installation of egg collectors in appropriate Lake Brisson habitat. In October 2012, the presence of spawning grounds was confirmed next to an esker near the connecting waterway to Lake Napeu Kainiut. However, no spawning was found closer to the B-Zone. 4.2.2 Benthic Invertebrates Overall, benthic invertebrate communities present in the lacustrine and stream stations sampled were composed of species relatively tolerant to nutrient enrichment and increased trace metal contamination in water. 4.3 Amphibians and Reptiles No amphibians or reptiles were found or detected in and around the Project area during field surveys conducted in 2011, 2012, and 2013. However the mink frog and the wood frog may be present at this latitude. 4.4 Birds Almost all birds present during 2011 breeding surveys were migratory birds, except for ptarmigan and some wooded species that are year-long residents. Eleven waterfowl species and one loon species were observed. The species with the highest number of individuals were, by far, the Canada goose, followed in abundance by long-tailed duck, red-breasted merganser, green-winged teal, greater scaup, northern pintail and common loon. Several indicated breeding pairs of harlequin duck were observed at a time on 2 separate dates in June between Lake Brisson and Lake Napeu Kainiut along stream sections with fast-flowing water. Another indicated breeding pair was noted approximately 700 m north-east of Lake Napeu Kainiut. 60290419 – March 2015 23 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) AECOM Forty-three birds of prey, belonging to six different species, were sighted within 20 km of the mine site. The roughlegged hawk was the most numerous (27 sightings), followed by the peregrine falcon (7), the short-eared owl (3), the golden eagle (3), the bald eagle (2) and the osprey (1). Also, a total of thirteen active nests was found. The closest nest (peregrine falcon) was located 5 km from the B-Zone deposit. A total of twenty passerines and galliform bird species were also detected; abundance and density generally increased within high, medium and treed shrub thickets. 4.5 Mammals 4.5.1 Caribou In June 2011, 480 caribou were seen within 20 km of the Project area, but the surveyed area was not considered as a calving area at that time because no cow-calf pairs were observed. Using available telemetry data from the Québec Ministère des Ressources naturelles et de la Faune (MRNF) for 2000 to 2012, the approximate southern limit of this herd’s traditional calving area was located at least 40 km north of the B-Zone. The same data indicated that a small proportion (4.3%) of marked caribou was located within 30 km of the Project area. Within the annual migratory cycle, September and October are the months when the highest number of marked caribou travel close to the project area enroute to wintering grounds located further south and east. 4.5.2 Other Mammals During a winter tracking survey around the mine site in 2012, evidence of seven different species of animal tracks was seen, mostly in treed shrub thicket areas. The fox (arctic and red) was the most observed species found in transects. The five species identified during a small mammal trapping survey are common species found in northern Québec and Labrador: deer mice, meadow vole, eastern heather vole, southern red-backed vole, and masked shrew. During the summer, major mammal species observed included black bear, arctic and red fox, arctic hare, red squirrel and gray wolf. 4.6 Species at Risk The following summarizes the status of any sensitive flora or fauna species observed: Harlequin duck is listed as special concern in Canada and as vulnerable both in Québec and Newfoundland and Labrador’s endangered species legislation. All of the birds of prey species observed, except for the osprey and the rough-legged hawk, are considered Species at Risk at the provincial and/or federal levels. - Golden Eagle: no federal status but vulnerable in Québec. - Peregrine Falcon: special concern (federal), vulnerable in both Québec and Newfoundland and Labrador. - Bald Eagle: no federal status but vulnerable in Québec. - Short-eared Owl: special concern (federal) and vulnerable in Newfoundland and Labrador, likely to be designated as threatened or vulnerable in Québec. The caribou represents a key issue, given the value of this animal for native and non-native peoples of Québec and Labrador and recent severe decline of the George River Caribou Herd (from 74,000 in 2010 to 14,200 in 2014) – but this population does not currently have any particular protection status. It is not at risk according to COSEWIC and not a threatened or vulnerable caribou population in Québec on in Newfoundland and Labrador. No other observed fauna or plant species during surveys had any special status. 24 60290419 – March 2015 AECOM Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) 5 Socioeconomic Environment 5.1 Land Use and Traditional Ecological Knowledge Potential changes may occur in land and resource use activities as a result of the Project, notably the activities of the Nunavik Inuit, Kawawachikamach Naskapi, Québec Innu, Labrador Inuit and Labrador Innu. Land Use and Traditional Knowledge studies were completed between 2012 and 2013 for all affected communities in the North. The study reveals that many Aboriginal groups were traditionally using territories located within or near the Strange Lake Project components in the Northern Project area (mine, access road and port). It also shows that some groups continue to visit these lands; however, contemporary use is sporadic and of low intensity, especially in the vicinity of the Project site. Both aboriginal and non-aboriginal companies provide guiding services in the larger region. The closest outfitting lodge from the project (Auberge de la Rivière George) is located on the shores of Lac Brisson, just a few km west of the proposed mine site. The second closest outfitting business (Les Expéditions Dirhouse) owns an active camp at Dirhouse Lake, approximatively 15 km north of the proposed mine site. Other close outfitting / tourism facilities are respectively located 20 km south-west (Club Chambeaux), 35 km west (Aventures Ashini) and 45 km south (Club de chasse et pêche Tuktu) of the proposed mine site. 5.2 Archaeology No information was available on any previous archeology surveys or related studies in the vicinity of Lake Brisson. Two archaeological inventories were carried out in 2011 and 2012. A suspected maritime archaic cache was located at an elevation of 508m above the current sea level, potentially close to the edge of the ancient glacial Lake Naskaupi. This low rock pile is located near the edge of the B-Zone, approximately 500 m from the lakeshore and 63 m above the level of Lake Brisson. This structure could potentially be affected during the latter part of the 30-year mine plan, or in a subsequent project phase. Three concentrations of quartz flakes of anthropic origin and a concentration of burned bone fragments were found on the surface within an area of approximately 100 m2. The site is located 7 m above the level of Lake Brisson, over 50 m from the current helipad at the exploration camp, and less than 100 m from the lake. A stone flake site was also discovered next to Lake Brisson at the end of the present airstrip, east of the exploration camp. Both of these last two sites are undated. 5.3 Socio-Economic Issues The Strange Lake Project is expected to have a greater effect on Aboriginal communities than non-Aboriginal communities in Northern Québec and Labrador. Communities such as Kuujjuaq, Kangiqsualujjuaq, Nain, Kawawachikamach or Natuashish tend to have greater socioeconomic vulnerability than their non-aboriginal counterparts in centers such as Schefferville or in Happy Valley-Goose Bay. Specific issues faced by aboriginal communities include: lower education levels and employment skills; higher unemployment; limited training and new employment opportunities; social issues such as drug and alcohol abuse, child neglect, and suicide; 60290419 – March 2015 25 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) AECOM isolation and challenges in terms of accessing and delivering social and health services; and, higher costs of living, financial insecurity, and poverty. By comparison, nearby communities with significant non-Aboriginal residents, such as Schefferville, Fermont, Sept-Îles, Labrador City / Wabush, and Happy Valley - Goose Bay, are more concerned by: economic boom and bust cycles in the mining and/or resource sectors; an increasing demand for short-term temporary accommodation options; high inflation, particularly for housing and accommodation costs; insufficient infrastructure; a need for updated education and training programs; and harmonious relationships with Aboriginal peoples residing within the towns. 5.4 Landscape The Project area is characterized by open, patchy and stunted vegetation, covering a series of hills and depressions. This allows for a wide field of vision, of rolling topography with little human development, for an observer from most viewpoints, especially if navigating on the east part of Lake Brisson. However, used infrequently, this landscape is considered to have moderate intrinsic value for aboriginal and nonaboriginal hunters, fishermen, outfitter guides and wilderness tourists. 5.5 Significant Areas There are no known protected areas in or immediately adjacent to the Project Site. However, in addition to the Kuururjuaq park and the Monts-Pyramides park project, both over 200 km to the north, a territory with limits about 30 km from the Project Site was reserved as a potential protected area in 2008. A corridor of about 40-km average width, along a 350-km section of the George River, was designated a “réserve de territoire pour fins d’aire protégée”. 26 60290419 – March 2015 AECOM 6 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) Environmental Effects and Possible Impacts Environmental effects have been considered by assessing potential Valued Ecosystem Components (VECs) and analyzing their potential interaction with the Project.The following is a list of the most noteworthy criteria for selection of possible VECs: component value and importance recognized by laws, regulations, or policies; sensitivity or vulnerability of the component; uniqueness or rarity of the component; viability (durability) of the component or ecosystem; component value and importance given by stakeholders; risk for health, safety or the well-being of the population; ecosystem considerations for northern environment located beyond treeline and with discontinuous permafrost. Key environmental components and indicators to be considered as a basis for VECs are identified and presented in Table 6-1. The most likely VEC’s, and their possible interaction with the Project, are linked to its different phases in Table 6-2. Some potential effects with the environment are further detailed in the following sub-sections because of their importance for federal authorities. 6.1 Aboriginal Peoples Consultation of available documents, meetings held with Aboriginal leaders, as well as information gathered through interviews, made it possible to establish that the various phases of the Project will interact with some contemporary land and resource use activities, such as caribou and small game hunting, fishing and snowmobile transportation. Moreover, the Project may have both positive and negative effects on various socio-economic components of interest to aboriginal communities such as employment and economy, health and well-being as well as community infrastructures and services. 6.2 Fish and Fish Habitat The access road at the mine will cross four permanent watercourses between the ore processing area and the airstrip. One of the four water crossings is free of fish at the crossing point. East of the airport up to the provincial border, the access road crosses five intermittent streams and three permanent watercourses. The latter have confirmed fish habitat; however, no salmonid species were caught. Other project components affect aquatic habitat as follows: The locations of the tailings management facility encroaches the upstream reach of a tributary of Lake Napeu Kainiut; Ore stockpiles are planned on a portion of watercourse (potentially not fish habitat) that drains in the Lake Brisson, and on an isolated pond, which may not contain fish; Finally, the proposed airstrip may encroach on two watercourses, tributaries of Lake Napeu Kainiut, and both with potential fish habitat. 60290419 – March 2015 27 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) 6.3 AECOM Migratory Birds The Project phases of development, construction and operation of the mine will likely cause probable habitat loss and will disrupt migratory birds using the study area. No residual effect from habitat loss is anticipated on migratory birds, given the presence of similar habitats in the surroundings. In the case of species more sensitive to habitat disturbance, they will move away or avoid the areas affected by the noise of the mine and anthropogenic activities. One species for which specific mitigation measures will be needed is the Harlequin duck, given its rarity (species at risk) and its documented presence near the mine site. Project activity will be excluded an adequate distance from stream sections characterized by high flow (rapids), which are preferential habitats during the species’ reproduction period. 6.4 Transboundary Effects Considering the proximity of the provincial boundary, it is possible that Project air emissions (mainly dust) reach Newfoundland and Labrador. According to the meteorological data collected between 2011 and 2014, prevailing winds are from the south-west direction. No effluent or runoff water from the Project in Quebec will reach the Newfoundland and Labrador territory. 28 60290419 – March 2015 AECOM Table 6-1 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) Preliminary List of the Project’s Critical Environmental Components, their Key Indicators and Rationale Critical Enviromental Components Atmospheric Environment Water Resources Examples of Key Indicators Air quality Noise Climate (greenhouse gas) Effect on permafrost freeze/thaw cycles Quantity and quality of surface and underground water Rationale Vegetation and Wetlands Freshwater Fish and Fish Habitat Abundance and diversity of plant communities Abundance and diversity of wetlands Fish abundance and species assemblage Quality and abundance of fish habitat Birds, Small Game and Furbearers Caribou Abundance and diversity of migratory and non-migratory birds Furbearers and small game and population abundance Quantity and quality of habitat George River Caribou Herd Plant and animal species at risk or of conservation concern Current and traditional use of land and resources – for both aboriginal and larger public Cultural Heritage Health and well-being of communities Employment and economy Visual Aesthetics 60290419 – March 2015 Plant species at risk, threatened or vulnerable Animal species at risk, threatened or vulnerable Current and traditional use of land and resources for recreational or commercial purposes Traditional and current land use for subsistence, culture and recreation Protected areas Historic, archeological and cultural resources and sites Health and well-being of people and communities Employment, Manpower training Local, regional economy Business development for goods, equipment and services Viewpoints on the mining site, especially from Lake Brisson Component needed to sustain life, health and wellbeing of humans and other lifeforms Potential transboundary effects in Labrador Importance for human life and ecological functions in the George River watershed Serves as a pathway for interactions between the Project and other components Fundamental role in maintaining terrestrial, riparian and wetland ecosystems (biodiversity, hydrological function, wildlife habitat, traditional resource use, etc.) Sensitivity of some northern plant communities to disturbance Highly valued for biological, cultural, recreational and sustenance aspects Legal protection of fish habitat under provincial and federal legislations Maintaining biodiversity Fragility of fish habitats in northern environment (reduced resilience, lower growth rate and productivity) Valued component for social, cultural and economic aspects (bird watching, waterfowl and small game hunting, furbearers trapping) to the local population and Aboriginal groups Maintaining biodiversity Highly valued component for biological, cultural and sustenance aspects for Aboriginal groups Herd in a precarious state following a dramatic decline of its population number Protection of species, their habitat and the biodiversity Legal protection of species and their habitat under the Species at Risk Act by the federal legislation and/or under the provincial Act respecting threatened or vulnerable species (harlequin duck, peregrine falcon) Valued and important socio-economic component Component reflecting the characteristics, traditions and values of its people and communities, in particular those of Aboriginal groups Potential interactions with outfitters operating in the region Sites located near the planned installations footprint Management of these important and at risk resources Component can interact with the Project for people and communities, in particular Aboriginal groups Expected benefits provided by the Project to the communities and the region The tundra landscape is a noteworthy viewscape in an area devoid of trees and human infrastructures 29 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) 6.5 AECOM General Mitigation Measures In addition to specific mitigation measures identified in the previous sections, standard environmental mitigation or control measures are anticipated in the following areas for all applicable phases of the project, and in combination with industry-standard practices for occupational health and safety: erosion control, especially to limit sediment in the surface drainage system; watercourse protection, to protect fish-bearing waters from deleterious materials or potential contaminated surface water runoff; solid waste management, to favor reuse and recycling wherever possible; hazardous materials management and storage, to reduce risk of release to the environment; drilling and blasting precautions, especially near watercourses and noise receptors; preventative operation of equipment, to avoid spills and suppress dust generation; and proactive socio-economic programs, to assist in integrating a workforce expected to come from different communities and to support overall worker health and well-being. 30 60290419 – March 2015 AECOM Table 6-2 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) Possible Impacts of Each Project Phase on Potential Valued Ecosystem Components Possible Impacts (pre-mitigation) per Project Phase Potential Main Activities Development Construction Operations Closure Temporary camps and roads, site preparation, fuel storage pad (early works) Machinery operation, road and infrastructure construction, tailings management facility setup Ore transportation and process, presence of infrastructures (plant, etc.) Closure appropriate restoration activities Biophysical Environment Air emissions sources (greenhouse gases, Air emissions sources (greenhouse gases, pollutants, dusts) pollutants, dusts) Spills affecting aquatic habitats, probable Erosion, alteration to water and sediment Aquatic environment, fish watercourse diversion, probable water crossings, Spills affecting aquatic habitats, presence of quality, spills affecting aquatic habitats, and fish habitat probable erosion, alteration to water and sediment mine wastes probable water crossings quality Migratory and nonReduction of habitat use due to noise and Reduction of habitat use due to noise and Reduction of habitat use due to noise and migratory birds anthropogenic activities anthropogenic activities anthropogenic activities Habitat loss, reduction of habitat use and Habitat loss, reduction of habitat use and Reduction of habitat use and alteration of Caribou alteration of migratory movements due to alteration of migratory movements due to noise migratory movements due to noise and traffic noise and traffic and traffic Species at risk or of special Disruption of Harlequin duck due to Disruption of Harlequin duck owed to Disruption of Harlequin duck due to anthropogenic activities anthropogenic activities anthropogenic activities concern (flora and wildlife) Transboundary Effects Atmospheric emissions of sources Atmospheric emissions of sources (greenhouse Atmospheric emissions of sources (greenhouse (greenhouse gases, pollutants, dusts) to gases, polluants, dusts) to Labrador gases, polluants, dusts) to Labrador Labrador Air Quality Air emissions sources (greenhouse gases, pollutants, dusts) Gain in habitat Social Environment Health and Well-Being Socio-economic Cultural Heritage Land use (Aboriginal) 60290419 – Mars 2015 Concerns over health effects Concerns over health effects Labour shortage, new family dynamics (fly in fly Increased pressure on community out), lifestyle changes, exacerbation of social services and infrastructures, development problems, increased revenue, increased of new community infrastructures, pressure on community services and business and training opportunities infrastructures, economic growth, business and training opportunities Issues related to the protection of Concerns over the integrity of Aboriginal archaeological, cultural, historical and languages and traditional lifestyle sacred sites Potential social conflicts Changes in current land and resource use, potential social conflicts, changes to the visual aesthetics Job creation, concerns over health effects Lifestyle changes, exacerbation of social problems, increased revenue, economic growth Concerns over the integrity of Aboriginal languages and traditional lifestyle Changes in current land and resource use, potential social conflicts, changes to the visual aesthetics 31 AECOM Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) 7 Consultation 7.1 Public Consultation Modalities 7.1.1 Consultation Meetings Since 2011, Quest has presented the Project to a number of government stakeholders at the federal level and in Quebec, as well as key industry stakeholders (Table 7-1). Cross-border Project issues have also been discussed with various government agencies in Newfoundland and Labrador. Quest initiated informal meetings with some northern Aboriginal representatives as early as 2008. Beginning in 2011, a more formal series of meetings took place with key aboriginal groups, including updates provided for periodic changes in leadership. Table 7-2 presents an overall summary of Aboriginal groups and other stakeholders consulted to date. Table 7-1 Government and other Institutional Stakeholders Consulted Type of Consultation Activities Federal level – Initial project presentation, follow-up meetings and communications Date 2011ongoing Stakeholders Major Projects Management Office (MPMO); Canadian Environmental Assessment Agency (CEAA) representatives; Natural Resources Canada (NRCAN); Canada Nuclear Safety Commission (CNSC). Government of Quebec – Initial project presentation, follow-up meetings and communications 2011ongoing Ministère des Ressources naturelles Mines Division; Quebec Ministry of Environment (Ministère du Développement durable, de l’Environnement, de la Faune et des Parcs – MDDEFP); Quebec Aboriginal Affairs Secretariat (Secrétariat aux Affaires Autochtones du Québec); Investment Quebec (Investissement Quebec). Discussions related to project development in Quebec 2014ongoing Quebec Mining Association (Association minière du Québec); Quebec Association of Mining Exploration (AEMQ); Other mining and metallurgical companies. 60290419 – March 2015 33 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) Table 7-2 AECOM Aboriginal Governments and Institutions Consulted Type of Consultation Activities Quebec Inuit (Nunavik) – Socio-economic and traditional land use baseline studies, Information meetings and community engagement process Date 2012 ongoing Stakeholders Makivik Corporation; Nunavik Mineral Exploration Fund (NMEF); Kativik Regional Government (KRG); Municipal authorities in Kuujjuaq and Kangiqsualujjuaq; Landholding corporations of Kuujjuaq and Kangiqsualujjuaq; KRG Sustainable Employment Department; Employment representative at the town office in Kangiqsualujjuaq; KRG Department of Local and Regional Development; School Directors in Kuujjuaq and Kangiqsualujjuaq; Health Center Representatives in Kuujjuaq and Kangiqsualujjuaq; Community meetings with elders and land users in Kangiqsualujjuaq and Kuujjuaq. Naskapi Nation of Kawawachikamach – Socio-economic and traditional land use baseline studies, Information meetings and community engagement process 2011 ongoing Leaders of the Kawawachikamach Naskapi Nation Council; Naskapi elders, land users and community members (via public forum); Department of Public Works; Naskapi Nation Office; Naskapi Development Corporation; Naskapi Police Force. Quebec Innu – Information meetings and community engagement process 2012 ongoing Matimekush Innu Band Council; Labrador Inuit (Nunatsiavut) – Socio-economic and traditional land use baseline studies, Information meetings and community engagement process 2011 ongoing Nunatsiavut Government Leaders and Ministers; Aventures Ashini – Les Amis du Mushuau-Nipi. Nunatsiavut Secretariat; Nunatsiavut Department of Land and Natural Resources; Nunatsiavut Department of Education and Economic Development; Nunatsiavut Department of Health and Social Development; Nunatsiavut Department of Culture and Tourism; Department of Nunatsiavut Affairs; Representative of the Inuit Community Government of Nain; Community meetings with Nunatsiavut Inuit elders and community members in Nain. 36 60290419 – March 2015 AECOM Table 7-2 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) Aboriginal Governments and Institutions Consulted (cont’d) Type of Consultation Activities Labrador Innu Nation – Socio-economic and traditional land use baseline studies, Information meetings and community engagement process Date 2012 ongoing Stakeholders Labrador Innu Nation Leaders; Innu Development Limited Partnership (IDLP); Innu Mikun; Mushuau Innu Band Council of Natuashish and the Innu Band Council of Sheshashit; Environment Office of the Innu Nation; Economic development advisors of the Mushuau Innu First Nation and the Sheshashit Innu First Nation; Social Health Department of the Sheshatshiu Innu First Nation; Community meetings with land users and other community members in Natuashish and Sheshashit. Meetings with non-aboriginal stakeholders were held mainly by Quest with business leaders in communities such as Schefferville or Happy Valley Goose Bay – either privately or via public forums such as trade shows and presentations i.e. local Chambers of Commerce. 7.2 Issues and Concerns Raised 7.2.1 Government Departments and Agencies There is much interest in the socioeconomic benefits and spin-offs of opening up a remote part of the north, as well as attracting additional investment to the south of Quebec. Government departments and agencies seek to better understand any Project environmental effects, particularly on the George River Caribou Herd and the water quality of the George River watershed. 7.2.2 Aboriginal Groups In addition to the meetings mentioned above, issues raised by Aboriginal stakeholders were gathered through socio-economic and traditional land use baseline studies, informal information meetings and other stakeholder engagement activities. The main questions and issues raised by the different Aboriginal groups include: Negotiation and Implementation of an Impact Benefits Agreement (IBA): Interest in potential IBAs with Quest, taking into account existing land claims. Role of IBAs as motors of economic growth, particularly to favor local benefits such as employment, business opportunities and training programs. Environmental Issues: Caribou migration, habitat protection and potential for habitat fragmentation. Impacts on arctic char. 60290419 – March 2015 35 Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) AECOM Any environmental risks associated with rare earth processing. Environmental assessment process and development of appropriate mitigation and compensation measures. Traditional Land Use and Resource Use: Concerns over traditional livelihood and access to land – both in summer and winter (snowmobile). Impacts of the Project on wildlife patterns, and influence on traditional hunting and fishing patterns. Employment and Training Opportunities: Expected employment, training and business opportunities. Development of partnerships with aboriginal institutions to favor local employment. Equity between different aboriginal groups. Community Engagement: Importance of building a relationship based on trust through good communications and a continued presence in the potentially affected communities. Important to keep the community and institutions updated about the evolution of the Project’s design and its timeline. Social Issues: Aboriginal stakeholders are concerned that mining development could exacerbate existing social issues such as alcohol and drug abuse, child neglect and housing availability. Some villages are highly vulnerable due to already fragile social conditions. Limited capacity of local infrastructures (health, education and recreational facilities). 7.2.3 Non-aboriginal Stakeholders Formal information meetings have not yet been organized to date with non-aboriginal stakeholders concerned by the Project. Only key informant interviews have been conducted on the phone to gather preliminary baseline information on Aboriginal training and education programs, local services and regional economic development. 7.3 Engagement and Communications Plan An Engagement and Communications Plan (ECP) was developed to ensure that key stakeholders are well informed through the various Project development phases and have ongoing opportunities to engage in discussions about the Project so that their concerns and interests are addressed. The ECP has been divided into four (4) phases: Phase 1: Pre-Launch Communication Activities Phase 2: Environmental Impact Assessment Launch Activities with Key Stakeholders Phase 3: Public Environmental Impact Assessment Launch Activities Phase 4: Environmental Impact Assessment Submission and Review Communication Activities The ECP prioritizes Aboriginal involvement, however it also values increased direct interactions with the local non-aboriginal population in order to assess overall social acceptability of the Project and better inform their main communities. 36 60290419 – March 2015 AECOM Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) Consultation activities will address the following broad categories, with emphasis on stakeholders identified in Table 7-2: Project update presentations and follow-up as key information becomes available; Environmental and social baseline studies; Traditional and contemporary land use; Identification and analysis of issues, concerns and questions regarding the Project, potential impacts and related mitigation measures; Presentation of the Environmental Impact Assessment report. 60290419 – March 2015 37 AECOM Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) 8 Federal Involvement 8.1 Funding The project does not depend upon a grant or loan from a federal government agency. 8.2 Federal Lands Within the limits of the Province of Québec, no federal land will be used for the purpose of carrying out the project. No federal lands are located in proximity and hence no impact is expected on federal lands. 8.3 Federal Approval Requirements Refer to Table 8-1 for a list of permits, licenses and other authorizations that may be required under any federal Act of Parliament to carry out the project. This list is considered as preliminary and may vary as the project evolves. Note also that third parties (i.e. subcontractors) may be responsible for certain activities such as transporting or storing explosives. Table 8-1 List of Potential Federal Permits, Licenses and Authorizations Applicable to the Project Permit/Authorization Law / Regulations Section Activity Decision Statement Canadian Environmental Assessment Act, 2012 54 Approval of the entire project, at least in Quebec. Radio Station Licence Radio Communications Act 5 Install and operate a radio station Permit for construction of structures in or near water bodies Navigable Water Protection Act 5 Effluent outfall, wastewater discharge, wastewater outfall, wharf construction, stream crossings Permit for approval of harmful Fisheries Act alteration, disruption or destruction of fish or fish habitat 35(2) Effluent outfall, wastewater discharge, wastewater outfall, wharf construction, stream crossings Permit to transport explosives Explosives Act 7 Transportation of explosives Emergency Response Assistance Plan (ERAP) Approval Transportation of Dangerous Goods Act 7 & 31 ERAP and permit demonstrating equivalent level of safety Licence for explosive magazines Explosives Act 7 Utilize explosives. Quebec and Kativik Government environmental permitting requirements will be provided at a later date. 60290419 – March 2015 39 AECOM Quest Rare Minerals Ltd. – Strange Lake B-Zone Rare Earth Mine Project Preliminary Information and Summary Project Description (rev. F) References Government of Canada, 2014, Prescribed Information for the Description of a Designated Project Regulations, Minister of Justice http://laws-lois.justice.gc.ca/eng/regulations/SOR-2012-148/FullText.html. Micon, 2014. Quest Rare Minerals Ltd. NI 43-1010 Technical Report on the Preliminary Economic Assessment (PEA) for the Strange Lake Property, Quebec, Canada. Amended Report Date June 26, 2014. Ministère des Ressources naturelles du Québec; Ministère de l'Environnement et de la Faune du Québec, 1997. Guidelines for preparing a mining site rehabilitation plan and general mining site rehabilitation guidelines. MRNF, Quebec. http://www.mern.gouv.qc.ca/english/publications/mines/environment/guianmin.pdf. MDDELCC, 2014. Ministère du Développement durable, de l’Environnement, et de la Lutte contre les changements climatiques, Direction générale de l’évaluation environnementale, Preliminary information on a project in a northern region, October 2014 http://www.mddelcc.gouv.qc.ca/evaluations/renseignprelim-en.htm. MDDEP, 2012. Directive 19 Sur l’industrie minière, March 2012. http://www.mddelcc.gouv.qc.ca/milieu_ind/directive019/directive019.pdf. 60290419 – March 2015 41