nisga’a government lisims success story...3 nisga’a lisims government • we are nisga'a,...
TRANSCRIPT
1
Success Story
Nisga’a Lisims Government
and Avanti Kitsault Mining Ltd.
Nisga’a
Lisims
Government
January 2015
“One Heart, One Path, One Nation”
2
Success Story – Presentation Overview
Nisga’a Lisims Government
Avanti Kitsault Mine Ltd.
An Alloycorp Mining Company
Avanti Kitsault Mine Project
Nisga’a Final Agreement
Dispute Resolution
Environmental Agreement
Nisga’a
Lisims
Government
“” “One Heart, One Path, One Nation”
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Nisga’a Lisims Government
• We are Nisga'a, People of the Nass River. We have lived here, on British Columbia's northwest coast, since time immemorial. Long enough to see our culture thrive, adapt, and endure.Canada's Nisga'a Nation is represented by Nisga'a LisimsGovernment - a modern, forward-thinking administration based on traditional culture and values. Together, we have built a culture and economy that respects and protects our natural heritage”
• Our worldwide population is about 7000
• Our Treaty with Canada and BC, the Nisga’a Final Agreement,
went into effect May 11, 2000
• Our website: www.nisgaanation.ca
• We are on Facebook: https://www.facebook.com/pages/Nisgaa-Lisims-Government-Nisgaa-Nation/233541510044452
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
Nisga’a
Lisims
Government
The Nass Area•~26,838 km2
•Fish, Fish Habitat, Aquatic Plantsand Migratory Birds
The Nass Wildlife Area•~16,101 km2
•Wildlife, Wildlife Habitat
Nisga’a Lands•~2000 km2
•authority to make laws
Where we are
Nisga’a Communities•Gitlaxt’aamiks•Gitwinksihlkw•Laxgalts’ap•Gingolx•Terrace•Prince Rupert/Port Edward•VancouverKitsault
4“One Heart, One Path, One Nation”
TSX V:AVT
Emerging Molybdenum Producer and Supplier of
Steel Alloy Metals
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
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Alloycorp at a Glance
TSX-Venture
Toronto, Vancouver and Terrace
To become the unique supplier of steel alloy metals
Build the Avanti Kitsault Project in BC, Canada
Acquire assets producing commodities that supply to the steel alloys industry
Our Strategy:
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
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Alloycorp Supplies to Global Steelmakers
Avanti Kitsault Mine
Concentrate toVancouver
Returns in the form of stainless and construction steels
Remaining Concentrate to
Molymet in Belgium
Concentrate processed at Molymet’s Chilean facilities (up to 4,500
tonnes annually)
Processed MoO2 to ThyssenKrupp
Concentrate to SeAH
Returns in the form of stainless and construction steels
Front end of the steel supply chain
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
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Molybdenum – Fundamental Input in Steelmaking
Molybdenum End Uses
Oil and gas drilling steel
Pipelines and storage tanks
Bridges
Offshore infrastructure
Manufacturing of tools
Automotive industry
Manufacturing of aircrafts and turbine engines
Source: CPM Group
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
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Avanti Kitsault Mine
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
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History of Kitsault
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1957 - 1967Exploration
Operations I 1968 - 1972
Re-Development 2008 - Present
Reclamation 1996 - 2007
1973 - 1980
Operations II
1983 - 1995
Exploration & Upgrade
1981 - 1982
Care/Maintenance
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
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World Class Project
Ownership 100% Alloycorp
Mineralization Molybdenum – Silver
Molybdenum Reserves 190,600 t @ 0.082% Mo
Mining Method Conventional Open Pit
Throughput Rate 45,000 tpd
Strip Ratio 1:1
Processing Method Milling and Flotation
Average Metallurgical Recovery 88.5% Mo, 39% Ag1
Construction Period 2 Years
Mine Life (Reserves Only) 14 Years
Initial Capital $818 million
Operating Costs (Before By-Product) US$5.96 per lb
Operating Costs (Net of By-Product) US$5.12 per lb
Source: Kitsault Optimization Study (April 2014)1. Currently looking to improve silver recovery through additional metallurgical test work
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
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Key Project Highlights
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Brownfield SiteExisting
InfrastructureProven Resource
NLG & AKML Agreements
Under ConstructionJuly 2014
Permitted
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
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Kitsault Project Location
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
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Kitsault Site Arrangement
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
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Site Arrangement
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Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
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Timeline To Production
2012 2013 2014
Env Baseline Data Began in 2008 data back to 1980
2015
Const. Permits
Feasibility Study
Basic and Detail Eng
EA Process
Construction
Permitting
EA App
Permit Application
BC EA Cert
Final Permits
CEAA Approval
FS Update EO
2016 2017
Complete
Complete
Complete
Currently 45% complete
FN Agreements MOU with 3 First Nations
CBA with Nisga’a Complete
Start-Up / Operation
Financing
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
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Construction Achievements To-Date
Construction of access road is complete
Front-end engineering 45% complete
Engineering team has grown to 70 people
Camp expansion underway to support a 150 bed construction camp
Construction of the Nass River bridge currently underway
Owner’s team expanded to oversee management
of the project
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
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Alternatives for On-Land Tailings Disposal
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Nisga’a
Lisims
Government
• Land Based Tailings Facility• Asphalt Core
““One Heart, One Path, One Nation”
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Independent Engineering Review Panel – Tailings Facility
Three member panel Geotechnical, hydrogeological and hydrological
components Ministry of Energy and Mines Panel Recommendations shared with the NLG Panel Technical Guidance:
‒ Design‒ Construction‒ Operations‒ Closure
Objective: Safe and environmentally responsible development
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
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Employment – Construction
700 Construction Jobs
‒ Health & Safety specialists
‒ Environmental technicians
‒ Heavy equipment operators
‒ Mechanics
‒ Millwrights
‒ Electricians
‒ Administrative personnel
‒ Service and maintenance personnel
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
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Employment – Operations
300 Operation Jobs
‒ plant operators
‒ line superintendents
‒ mine truck drivers
‒ mine shovel operators
‒ engineering specialists
‒ administration personnel
‒ service and maintenance specialists
‒ environmental compliance and health services specialists
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
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BC Environmental Assessment & Permitting process
Larger projects trigger EA’s
EA’s are typically “strategic” in nature
Finer details emerge in permitting process
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
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Chapter 10 and relevant provisions of Nisga’a Treaty
• Environmental Assessment“means the evaluation of impacts on the
environment, and includes screening, study and review”
Definitions(taken from Definitions Chapter)
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
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• Project“means any undertaking or proposed
undertaking in relation to a physical work or activity”
Definitions(taken from Definitions Chapter)
Nisga’a
Lisims
Government
Chapter 10 and relevant provisions of Nisga’a Treaty
““One Heart, One Path, One Nation”
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• Consult and Consultation“mean provision to a party of :
a. Notice of a matter to be decided, in sufficient detail to permit the party to prepare its views on the matter,
b. In consultations between the Parties to this Agreement, if requested by a Party, sufficient information in respect of the matter to permit the Party to prepare its views on the matter,
c. A reasonable period of time to permit the party to prepare its views on the matter,
d. An opportunity for the party to present its views on the matter, and
e. A full and fair consideration of any views on the matter so presented by the party”
Definitions(taken from Definitions Chapter)
Nisga’a
Lisims
Government
Chapter 10 and relevant provisions of Nisga’a Treaty
““One Heart, One Path, One Nation”
26
• Subparagraph e.“assess whether the project can reasonably be
expected to have adverse environmental effects…”
• Chapter 10 – Environmental Assessment and Protection
• Paragraph 6• Paragraph 8
Nisga’a
Lisims
Government
Chapter 10 and relevant provisions of Nisga’a Treaty
““One Heart, One Path, One Nation”
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• Subparagraph f.“Assess the effects of the project on the existing and
future economic, social and cultural well-being of Nisga’a citizens who may be affected by the
project”
• Chapter 10 – Environmental Assessment and Protection
• Paragraph 6• Paragraph 8
Nisga’a
Lisims
Government
Chapter 10 and relevant provisions of Nisga’a Treaty
““One Heart, One Path, One Nation”
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• Subparagraph i.“take into account any agreements between the
project proponent and the Nisga’a Nation….”
• Chapter 10 – Environmental Assessment and Protection
• Paragraph 6• Paragraph 8
Nisga’a
Lisims
Government
Chapter 10 and relevant provisions of Nisga’a Treaty
““One Heart, One Path, One Nation”
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Dispute Resolution
The Nisga’a Nation was not satisfied it had all of the information required in order to have a full understanding of what the effects would be
The Nisga’a Nation initiated the Dispute Resolution process described in the Treaty
BC granted the EA Certificate
BC, Canada, and the Nisga’a Nation entered discussions to resolve the dispute
If unsuccessful the final step in the DR process is litigation
To preserve its rights, the Nisga’a Nation initiated legal proceedings
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
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Environmental Agreement
Identified the key outstanding issues
‒ Historic environmental concerns
‒ Future environmental concerns
‒ Certainty of environmental standards
‒ Certainty of scientific methodology
Assigned technical teams from both parties for each issue
NLG provided specifics by issue for discussion and resolution
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
31
Environmental Agreement –Addressing Uncertainty
From conceptual to details
Beyond the BC Environmental Certificate
Schedule
Scientific Methodology
Adaptive Management
Contingency Planning and Implementation
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
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Environmental Agreement
1. Site Specific Water Quality Objectives
2. Water Treatment
3. Fish Habitat Compensation
4. Marine Effects Monitoring Program
5. Aquatic Effects Monitoring Program
6. Human Health Risk Assessment
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
33
Consensus – June 2, 2014
Multiple full day meetings throughout May 2014
Interim documents generated for review and discussion
Give and take
Willingness by both parties to reach an agreement
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
34
Barriers Broken
Nisga’a business opportunities
Training and education
Community support and involvement
Commencement of Construction
July 1, 2014
Nisga’a
Lisims
Government
““One Heart, One Path, One Nation”
35
Success Story
Nisga’a Lisims Government and
Avanti Kitsault Mining Ltd.
Nisga’a
Lisims
Government
Questions?
““One Heart, One Path, One Nation”