Castle Project Virtual Open House - May 14 and 19, 2020 - EAO Project Information
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Castle Project Virtual Open House May 14 and 19, 2020
Opening and Welcome
Agenda
Time Topic Presenter
5:30 - 5:35 PM Welcome and Introductions EAO
5:35 - 5:55 PM Environmental Assessment Act (2018) Overview EAO
5:55 - 6:10 PM Castle Project Early Engagement Phase EAO
6:10 – 6:50 PM Castle Project Overview Teck
6:50 – 7:20 PM Q&A EAO and Teck
7:20 – 7:30 PM Closure and next steps EAO
3
Submitting a question or comment – Skype Broadcast
4
Environmental Assessment Act (2018)
OVERVIEW OF THE NEW PROCESS
The BC Regulatory Continuum
6
Purpose of the Environmental Assessment Office
The EAO conducts reviews of major projects and administers the Environmental
Assessment Act (2018), through:
• promoting sustainability by protecting the environment and fostering a
sound economy and the well-being of British Columbians and their
communities; and
• supporting reconciliation with Indigenous peoples in British Columbia.
7
The Reviewable Projects Regulation outlines project
categories and criteria for each category used to determine
whether a project is reviewable
8
EA Revitalization
PROTECTING THE ENVIRONMENT AND FINDING CLEAR PATHWAYS TO PROJECT APPROVALS
• New required assessment matters
• Clear EA process – timely &
predictable
• Early identification of key issues &
early decision to determine if a
project is ready to proceed to an EA
• Effective involvement of Indigenous
nations, the public, stakeholders,
local government & industry
9
How it Works
OVERVIEW OF THE EA ACT (2018) PROCESS
Public Engagement
Comment Period
10Who participates in EAs?
• Indigenous nations
• The public
• Stakeholders
• Proponents
• Provincial and Federal agencies
• Local governments
• Community Advisory Committee
11How the EAO will engage with Indigenous nations
• Nations will self identify as participating Indigenous nations with broad
procedural rights under the Act
• The development of an Indigenous nation’s Understanding of Interests is
meant to construct a properly scoped EA process that is reflective of each
Nation’s governance structure
• Engagement in the assessment may differ between different participating
Indigenous nations depending on the Nation’s priorities, governance,
potential impacts and interests in the project area
12Public Engagement
• Critical to environmental assessments
• The public has four opportunities to participate in public comment periods
under new Act including: Early Engagement, Process Planning, Application
Review and referral materials
• Comment periods also include in-person engagement and often alternative
engagement approaches, such as this virtual open house
13Community Advisory Committee
Purpose:
• To advise the EAO on the potential effects of the proposed project on the
community
Established during: Process Planning (unless insufficient community interest)
Objectives:
• Provide input on the potential effects of the project on the community and
mitigation measures;
• Provide a link to the community by transmitting information about the project to the
broader community; and
• Foster community learning about the EA process and the proposed project.
14Castle Project Early Engagement Phase
Early Engagement
Purpose:
Build an understanding of the proposed project and
identify potential interests and concerns raised by parties
Objectives:
• Engage participants early and develop relationships
• Support preparation for the EA process and consider
input on key project considerations
• Identify interests of Indigenous nations
• Identify interests and issues early and chart a path
towards resolution
16Key Deliverables During Early Engagement
• Initial Project Description
• Engagement Plan
• Public comment period
• Notice of intent to be a participating Indigenous nation by Indigenous nations
• EAO Summary of Engagement
• Detailed Project Description
1790 Day Period
Early Engagement Phase Overview
EAO Summary of Engagement (Day 90)
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Day 90• Engagement
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stakeholders, and government agencies.
Proponent submits DPDEA Readiness Decision – Options
Option Step 1 – the CEAO may: Step 2 – if the project is referred to Minister, the
Minister may decide to:
Resubmit Require a revised DPD due to deficiencies -
Termination Refer to Minister and recommend termination Terminate project from process
Exemption Refer to Minister and recommend exemption Exempt the project from the EA requirement
(project proceeds to permitting)
EA referral Refer to Minister with a recommendation that Proceed to an EA by assessment body
an assessment body conduct the EA
Conduct EA Proceed to an EA -
19Castle Project
• Teck Coal Limited (Teck) proposes to extend the lifespan of its Fording River Operations, an existing
coal mine near Elkford, BC, by expanding mining to Castle Mountain (referred to as the Castle Project)
• Initial Project Description and Engagement Plan accepted on April 9, 2020
• The EAO Summary of Engagement is provided on day 90 (currently July 9, 2020)
• Public comment period May 8-June 22, 2020 Public Engagement
Comment Period
20Teck’s Proposed Castle Project Timeline
Initial Project Description - submitted April 2020
Detailed Project Description - anticipated late 2020
Readiness Decision - anticipated late 2020
Process Planning – after Readiness Decision
Development / Submission / Review of Draft and Final Environmental
Assessment Applications – starting late 2021 to mid-late 2022
Environmental Assessment decision - anticipated early to mid 2023
21Public Comment Period: May 8 - June 22, 2020
• Meaningful feedback from all interested parties is critical
• Seeking input on the Initial Project Description
• Provides insight into the publics interests, values, concerns, and questions and
informs the development of the Detailed Project Description
• Feedback is considered by the EAO and provided to the Proponent
• Comments are accepted via online form, via mail or by fax: 250-356-7477
http://ow.ly/JDFb50zwfin
22Virtual Open House Introduction to Fording River Operations Castle Project Dave Baines, Senior Lead Regulatory Approvals May 14 and 19, 2020
Caution Regarding Forward-Looking Statements
Both these slides and the accompanying oral presentations contain certain forward-looking statements within the meaning of the United States Private Securities Litigation
Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) and comparable legislation in other provinces (collectively referred to
herein as forward-looking statements). Forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”,
“scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variation of such words and phrases or state that certain actions, events or
results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of Teck to be materially different from any future results, performance or achievements expressed or
implied by the forward-looking statements. These forward-looking statements include statements relating to management’s expectations with respect to: Teck’s expectations with
respect to the potential benefits of the Castle project, including supporting continued operation of Fording Operations for many decades; and expected project metrics, including
but not limited to timing of production and anticipated project lifespan.
The forward-looking statements are based on and involve numerous assumptions, risks and uncertainties and actual results may vary materially. These statements are based on
assumptions, including, but not limited to: general business and economic conditions, interest rates, the supply and demand for, deliveries of, and the level and volatility of the
price of coal; the timing of the receipt of regulatory and governmental approvals for the Castle project; the accuracy of our reserve estimates (including with respect to size, grade
and recoverability); the future financial performance of the company; our ability to procure equipment and development and construction supplies; our ability to secure adequate
transportation for our products; assumptions regarding the cost and timing of development of Castle project; and our ongoing relations with our employees and business partners
and joint venturers. Statements regarding duration of operations also assume production at planned rates and assumes resources are upgraded to reserves, permits are
obtained for all proposed expansions and developments, and that all mineral reserves and resources could be mined. Factors that may cause actual results to vary materially
include, but are not limited to, unanticipated development and operational difficulties; failure of customers or counterparties (including logistics suppliers) to perform their
contractual obligations; changes in our credit ratings; unanticipated increases in costs to construct our development projects, difficulty in obtaining permits; and inability to
address concerns regarding permits of environmental impact assessments.
We assume no obligation to update forward-looking statements except as required under securities laws. Further information concerning risks and uncertainties associated with
these forward-looking statements and our business can be found in our Annual Information Form for the year ended December 31, 2019, filed under our profile on SEDAR
(www.sedar.com) and on EDGAR (www.sec.gov) under cover of Form 40-F, as well as subsequent filings that can also be found under our profile.
24Presentation Objective
EAO’s Virtual Open House
on the Castle Project This Presentation
Welcome Castle Castle
2018 EA Act Closure and
and Project EA Project
Overview Next Steps
Introductions Process Overview
This Presentation
• Share early information on the Castle Project
• Encourage feedback on the Initial Project Description
25Agenda
Safety Message and Welcome to Teck
Introduction to the Teck and Fording River Operations
Introduction to Castle Project
Castle Project Area Visual Overview
Castle Project Engagement and Opportunities for Input
Questions
26Safety Message Everyone Going Home Safe and Healthy Everyday
Canada’s Largest Diversified Resource Company
• Safety is a core value
• Own or have an interest in 11 mines, one large metallurgical complex, and
several major development projects in the Americas
- #1 Producer of steelmaking coal in North America
- Significant copper producer
- #3 zinc miner in the world
- Interest in producing oil sands operation
• Implementing a comprehensive sustainability strategy
• International Council on Mining and Metals member since 2006
• Fording River Operations received Towards Sustainable Mining verification from
Mining Association of Canada
28Teck Overview
29Sustainability Leadership
Teck’s performance on top ESG ratings
• “A” rating since 2013 • Top ranked mining • Top-ranked mining
(scale of CCC – AAA) company company 2019 World
• Tied for 2nd in mining & North American Indices
• Outperforming all 10 of our
largest industry peers & metals category • In the index for 10
consecutive years
30Introduction to Teck and
Fording River
Operations
31Teck’s Steelmaking Coal Operations
Fording River Operations (FRO) is one
of four steelmaking coal operations
located in the Elk Valley of British
Columbia (B.C.).
Teck’s steelmaking coal operations
provide significant social and economic
benefits for the region and the province.
Teck’s mines in the Elk Valley directly
employ more than 4,000 people, mostly
from local communities.
32Teck Coal Economic Contributions
• Teck Coal Economic Contributions Economic Contributions
(2018): $3.9 Billion $344 M
Income and
Resource Tax
• Includes Elkford, Fernie, Sparwood & $2 M
Community
RDEK Tax Sharing: $10 Million Investment
$615 M Employee
• Fording River Operations represents Wages and Benefits
approximately 1/3 of Teck Coal
business unit production $8 M
Payments to
$2,969 M Payments Government
to Suppliers
33Fording River Operations Location FRO is located in the southeast corner of B.C.: • Within ʔamakʔis Ktunaxa, the territory of the Ktunaxa Nation • Situated within the upper Fording River watershed, a tributary of the Elk River • 30 km from the community of Elkford B.C.
Fording River Operations
Summary
In operation since 1972 (Fording Coal
Ltd)
Teck ownership began in 2008
Over 295 million tonnes of
steelmaking coal produced
• Current production capacity
~8.5-9.5 million tonnes per year
Currently ~1,400 employees
35Introduction to the
Castle Project
36Castle Project Overview
• Extension of FRO
• Permitted economically minable coal
at FRO begins to decline in the mid
2020’s
• Castle would become the primary
source of steelmaking coal for FRO
and maintain current production rates
• Coal reserves are substantial and
could support FRO for many decades
• Maintain the jobs and economic
activity generated by the operation
37Castle Project Location
Castle
Project
Fording River Operations
Looking southeast at the FRO plant site with Project
area in the background
38Project Components
39Project Components
40Project Metrics
Component
Production rate No change to FRO
• Permitted – 10 million tonnes per year
• Average – 8.5 to 9.5 million tonnes per year
Operations employment No change to FRO
• Approximately 1,400
Construction employment Several hundred
41Project Metrics
Component
New Disturbance Approximately 2,550 ha over the life of the Project
Construction New and existing water management structures for
Water Discharge sediment control to meet permit requirements
Mining Water New and existing water treatment to meet Elk Valley Water
Discharge Quality Plan and permit requirements
Waste Rock* Volume of waste rock is currently being evaluated
Location for waste rock storage is currently being
evaluated
* Waste rock is rock that has to be removed to access the steelmaking coal
42Project Metrics
Objective Target Date or Duration
Environmental Assessment Certificate 2023
Approval received and all other
required permits approved
Start of preconstruction 2023
Start of coal production 2026
Full production Early 2030s
Project lifespan Several decades
43Castle Project Area
Visual Overview
44Looking east towards Project Area from the FRO Swift mining area
Looking north from the west side of the Project area. Greenhills Operations showing in the background.
Looking west at the northeast side of the Project
area. FRO plant site showing in the background.
47Castle Project
Engagement and
Opportunities for Input
48Previous Engagement with Ktunaxa
Project engagement will build upon the foundation of ongoing and previous
engagements
• Longstanding strong relationships with the Ktunaxa Nation
• Impact Management and Benefit Agreement (2016) between Ktunaxa Nation and Teck.
• Teck participates in and leads many initiatives to understand, minimize and mitigate the
potential impacts of mining in the Elk Valley region.
• Prior engagement on other environmental assessments; including the Elkview Baldy Ridge
Extension, Fording Swift Project and the Line Creek Phase II Project.
49Pre-Engagement on the Castle Project
Engaged a wide range of communities
of interest:
• BC Environmental Assessment Office,
Impact Assessment Agency of Canada,
and other provincial regulators and
agencies
• Elkford, Sparwood, Fernie, Crowsnest
Pass, and Regional District of East
Kootenay
• Local community / recreational groups
• Other Indigenous Peoples
50Pre-Engagement on the Castle Project
What we’ve heard:
• Unfamiliarity with the new BC environmental assessment process
• Apply lessons learned and what we’ve heard from prior engagement activities
• Areas of interest included:
- Terrestrial cumulative effects (e.g. high elevation grasslands and bighorn sheep)
- Westslope cutthroat trout
- Water quality
- Chauncey Creek
51Engagement on Project Components
• The Initial Project Description describes current actions and potential actions to address
the interests heard by Teck during pre-engagement
• The Initial Project Description also describes many Project components where Teck is in
the early phases of design and planning.
• Feedback on all of these will be used to help shape project decisions.
This presentation provides some additional context around three examples where there are
opportunities for input:
• Waste rock storage
• Water quality source control
• Tailings handling and storage
52Opportunities for Input
Waste Rock Storage
Factors:
• Waste rock is rock above the coal or
between layers of coal. Waste Rock
• Must be removed to mine the coal
• Haul distance affects project
economics
Steelmaking
Coal
Project Objectives:
• Maximize backfilling of mined out pits
• Avoid/minimize disturbance of
Waste Rock
watersheds with no direct mining
impacts
53Opportunities for Input 3
Waste Rock Storage Options
No waste rock storage in Chauncey
Creek (Avoid - 1) 2
Determine total area of waste rock in
Kilmarnock Creek (Minimize - 2)
1
Backfill waste rock into existing pits –
Eagle and Castle (source control –
Mitigate – 3 and 4)
4
54Opportunities for Input
Source Control
Factors:
• Constituents from waste rock (e.g. nitrates, selenium) can influence water quality
• Source control includes efforts to not have the constituents enter the water
Project Objectives:
• Avoid/reduce impacts to water
• Plan for water management early in Project design efforts
• Adopt a best achievable technology approach
55Opportunities for Input
Source Control Options
Nitrate Implementation: Possible Selenium Options:
Change in blasting practices to Capping – cover the waste rock
minimize nitrate contact with water storage area
This change is being made at all Teck Bottom up construction – build the
coal sites waste rock storage area in layers
Project will adopt source control for Intermediate caps – put caps between
Nitrates the layers in bottom-up construction
Operational constraints
56Opportunities for Input
Tailings Handling and Storage
Factors:
• Fine tailings are produced when the coal is washed in the processing plant
• Fine tailings are made up of small particles of rock and coal mixed in water
• Tailings handling means how the tailings are managed and moved
• Fine tailings constitute less than 0.3% of all material handled by the Project
Project Objectives:
• Develop safe, stable long-term tailings storage
• Balance complexity, life-cycle cost (capital, operation and closure), and energy
requirements (and associated greenhouse gases)
• Maintain available recycled water to processing plant
57Opportunities for Input
Tailings Handling Options
Option Approximate Consistency
Water Content
Slurry 90% Mud puddle
Thickened 20% - 60% Toothpaste
Dry Under 20% Wet sand
58Opportunities for Input
Tailings Storage Options
Storage
Dam
Dry tailings only
Tailings Only
Out of Pit
In Pit
Tailings and
Waste Rock
59Public Comment Period Information
Public Comment Period May 8 to June 22
Virtual Open Houses May 14 and 19
Please provide feedback to BC EAO’s website public comment area: http://ow.ly/JDFb50zwfin
Additional information about the Project is available on Teck’s Castle website:
Teck.com/castleproject
Comments will be addressed through the:
• Detailed Project Description
• Updates posted to the Teck Castle website
• Direct response where appropriate
60Contact Teck
Get in Touch
1.855.806.6851
feedbackteckcoal@teck.com
Feedback can be anonymous. If you leave your contact details, we will respond directly to
you.
61Thank You! Questions?
Closing and next steps
Next steps for the EA
• Public: Submission of Public Comments
• Indigenous nations: Inform the EAO if and how they wish to participate
• EAO: Summary of Engagement Report
• Teck: Detailed Project Description
• EAO: Readiness Decision
64Next steps for the public during Early Engagement
• Please provide your comments before June 22, 2020
• Comments are accepted via online form, via mail or by fax: 250-356-7477
www.projects.eao.gov.bc.ca
EAO.Castle@gov.bc.ca
• Indicate your interest in subscribing to a Community Advisory Committee
subscription.
65Submitting a public comment during the EAO Public Comment Period 1. Got to www.projects.eao.gov.bc.ca and scroll down to the Castle PCP announcement 2. Click on the “Submit/View Comments” button, a new window will open then click on the “Submit Comment” button.
Submitting a public comment during the EAO Public Comment Period 3. Click on “Next”, fill out the required information and click “Submit”.
Exit Survey
Please go to www.menti.com and use the code
98 46 81
68Thank you!
For more information please go to EAO’s website:
www.projects.eao.gov.bc.ca
Or contact us at:
EAO.Castle@gov.bc.caYou can also read
