HomeMy WebLinkAbout10082018 City Council Laydown - Pebble Mine PresentationThis presentation includes certain statements that may be deemed "forward-looking statements.” All statements
in this presentation, other than statements of historical facts, that address exploration drilling, exploitation
activities and events or developments that the Company expects are forward-looking statements.
Although the Company believes the expectations expressed in its forward-looking statements are based on
reasonable assumptions, such statements should not be in any way construed as guarantees of the ultimate size,
quality or commercial feasibility of the Pebble Project or of the Company's future performance. Assumptions
used by the Company to develop forward-looking statements include the following: the Pebble Project will obtain
all required environmental and other permits and all land use and other licenses, studies and development of the
Pebble Project will continue to be positive, and no geological or technical problems will occur.
The likelihood of future mining at the Pebble Project is subject to a large number of risks and will require
achievement of a number of technical, economic and legal objectives, including obtaining necessary mining and
construction permits, approvals, licenses and title on a timely basis, delays due to third party opposition,
changes in government policies regarding mining and natural resource exploration and exploitation, the final
outcome of any litigation, completion of pre-feasibility and final feasibility studies, preparation of all necessary
engineering for surface or underground mining and processing facilities as well as receipt of significant
additional financing to fund these objectives as well as funding mine construction.
Such funding may not be available to the Company on acceptable terms or on any terms at all. There is no known
ore at the Pebble Project and there is no assurance that the mineralization at the Pebble Project will ever be
classified as ore. The need for compliance with extensive environmental and socio-economic rules and practices
and the requirement for the Company to obtain government permitting can cause a delay or even abandonment
of a mineral project.
The Company is also subject to the specific risks inherent in the mining business as well as general economic and
business conditions. For more information on the Company, Investors should review the Company's filings with
the United States Securities and Exchange Commission and its home jurisdiction filings that are available at
www.sedar.com.
CAUTIONARY AND FORWARD LOOKING STATEMENTS
A NEW PATH FORWARD
Pebble is an important
opportunity for Alaska.
Let’s examine the truth about Pebble.
1 LOCATION
The Pebble Deposit is on land
owned by the state of Alaska.
THIS IS THE PEBBLE DEPOSIT
It is 100 air miles and 230
river miles away from Bristol Bay.
Despite what you may have seen
or heard, Pebble is NOT at the “headwaters”
of Bristol Bay.
It is at the upper reaches of three
small tributaries — out of over
50,000 which comprise the watershed.
2 FOOTPRINT
There’s no question Pebble is a substantial
project. But you might be surprised how
small it will be.
Major mine facilities will only
constitute about 5.3 square miles.
This smaller footprint is a near match for the
scenario which even the Obama administration’s
EPA said could enter permitting.
EPA 2.0 (13.5
EPA .25 SCENARIO -4.2 SQUARE MILES
NEW PEBBLE PLAN -5.3 SQUARE MILES
Less than one percent of the Bristol
Bay drainage originates from the mine study
area(drainages of NFK, SFK, UTC).
And of the total sockeye escapement,
less than 0.5% originates there.
SOCKEYE ESCAPEMENT
UTC Drainage
SFK Drainage
NFKDrainage
TOTAL
0.39%
0.06%
0.02%
0.47%
No mine facilities in the Upper Talarik
means no impact to the Kvichakdrainage.
Sockeye escapement from the three drainages
near the mine is already minimal.
Getting out of the Upper Talarik and Kvichak
drainage reduces it by 80%.
SOCKEYE ESCAPEMENT
UTC Drainage
SFK Drainage
NFK Drainage
TOTAL
0.39%
0.06%
0.02%
0.08%
Given these facts, the Pebble Deposit
is actually in a very suitable location.
Normal operations will have no adverse impact on the
drainages around the project.
Even in the unlikely event of catastrophic failure,
the effect on the fishery would be minimal.
The minimal impact on habitat
will be offset by mitigation.
While footprint impacts on existing habitat will
be small, they can be offset by other habitat
improvements in the area.
EXISTING HABITAT-CHANNEL BLOCKED
AFTER MITIGATION -ACCESS RESTORED
From an environmental perspective, the mine footprint will
conclusively not have an adverse affect on fish habitat.
The EIS will demonstrate this and permitting will validate it.
We are confident about this because…
3 SCIENCE
Much of what you may have heard
about Pebble is false — particularly related to science.
Let’s set the record straight.
The EPA’s Bristol Bay Watershed
Assessment was bad science.
The EPA mine scenarios were designed for
failure, and peer reviews called it entirely
improper as a decision document.
“The preemptive action taken for the Pebble Mine Project
was unprecedented under the Clean Water Act and was
justifiedby a questionable scientific assessment that relied on
predetermined conclusions developed by EPA officials.”
U.S. House Science Committee
We’ve done more than a decade of
intensive environmental studies.
More than $150 million has been invested in
environmental research to study wetlands, groundwater,
surface water hydrology, migration patterns,
fish habitat, and more.
40+ independent consulting firms and 100+ globally-respected
scientists and biologists conducted our research.
This environmental research and our technical engineering work
give us confidence in our approach.
Let’s begin with water…
4 WATER MANAGEMENT
We understand every aspect of water at the site —
flow, chemistry, even temperature.
We will protect the environment and downstream
Bristol Bay watershed.
Cyanide will not be used for
secondary gold recovery.
We heard people’s concerns about the use of cyanide, and
we’ve completely eliminated it from our plan.
Every drop of water will be
carefully monitored and managed.
Water at the mine site will be managed from rainfall
to discharge — and the design will handle the large
flows during spring breakup and fall rains.
Released water will not just betreated.
It will be strategically adjusted to
optimal conditions for fish.
Strategic adjustments include temperature,
calcium levels, and flow rate.
We will balance flow across the
three tributaries as conditions warrant.
The drainagesaround Pebble
constituteless than 1% of the Bristol
Bay drainage.
And with our flow mitigation plan,
our carefully-managed water release shows we will only
impact water flow to Bristol Bay by .01%.
All water entering Bristol Bay
Water from the mine footprint
Operationally, our water management plan
will be safe for the Bristol Bay fishery.
How confident are we?
Our own drinking water will be drawn
directly from ground water wells.
5 TAILINGS STORAGE
Our Tailings Storage Facility (TSF) combines
natural and engineered features, designed
using highly conservative criteria.
The Tailings Storage Facility has
been designed for maximum safety,
stability, & reliability.
Features include a graduated slopeand long beach area,
plus a new buttress for improved safety.
Pyritic tailings storage
will be fully lined.
Our design will meet Alaska Dam
Safety Program standards.
Construction, operations and closure will be overseen and
certified by the Alaska Dam Safety Program.
The pyritic TSF will be completely
eliminated at closure.
All pyritic tailings will be backhauled to the pit
for permanent underwater storage.
The entire pyritic TSF will be reclaimed, a significant
post-closure environmental enhancement.
The TSF design is based on
proven, world-class engineering.
It will certifiably offer no threat
to downstream habitat.
But what about earthquakes…
6 EARTHQUAKES
Despite what you may have heard, seismic activity near the
Deposit is quite low.
Nevertheless, we are taking extraordinary steps to
safeguard against earthquakes.
Our design accounts for
Alaska’s largest earthquakes.
We used USGS data to calculate “maximum credible
earthquakes” along the same subduction zone
which created the 9.2 quake in 1964.
Pebble Project Acceleration 0.25g
We even assume a floating fault
at the mine site itself.
What does this mean?
The mine is designed to withstand
the greatest possible seismicity predicted
by science.
But… What if?
Let’s examine catastrophic failure —
a breach of the TSF — and understand the
effects.
Even under the EPA scenario which is closest to our
plan — but with no remediation — a TSF breach would
result in physical habitat loss of about a decade along
9-30km of the North Fork Koktuli.
If the entire North Fork Koktuli drainage
were compromised due to TSF failure,
it represents 0.02% of total Bristol Bay
sockeye escapement.
And that’s if we don’t do anything to
clean it up, which of course we would be
legally and morally obligated to do.
Mine facilities are designed to survive the
worst possible earthquakes.
But even in the worst possible scenario,
science tells us that fishery will be fine.
Mining and fish doco-exist.
Our plan applies the world’s best science
and Alaska’s highest standards.
Modern mining practices are
both safe and responsible.
Alaska’s operating mines demonstrate this.
CHIKAMINUK LAKE
SOURCE: ALASKA STOCK
FORT KNOX
CHIKAMINUK LAKE
SOURCE: ALASKA STOCK
GREENS CREEK
CHIKAMINUK LAKE
SOURCE: WIKIMEDIA
KENSINGTON
CHIKAMINUK LAKE
SOURCE: WIKIMEDIA
POGO MINE
CHIKAMINUK LAKE
SOURCE: ALASKA STOCK
RED DOG
The permitting process tests
the design and the science.
There are roughly 60 major federal, state
and local permits, approvals, and
authorization processes for us to clear.
Their experts will conduct a rigorous review
of our plans, demanding transparency and
accountability.
The permitting process is the right
way to evaluate the Pebble project.
Science tells us that the Pebble
Project can be developed responsibly.
Pebble WILL co-exist with the fishery.
7 INFRASTRUCTURE
Our revised infrastructure plan has
a smaller footprint — and brings
low cost power to the region.
A new ferry system replaces
the road around Iliamna Lake.
50% fewer environmental
effects versus EPA study.
As a result, our transportation plan
is even more fish-friendly than ever.
A natural gas pipeline
connects southwest Alaska
to existing infrastructure.
This effort aligns with public
policy prioritizing the development of low-
cost energy for rural Alaska.
8 BENEFITS
Our goal is to design a project in
partnership with the people of the Bristol
Bay region and all of Alaska.
The benefits to the local people,
and their economy and culture,
are substantial.
First, we have a new “revenue sharing”
concept to enhance local and regional
financial benefits.
A N E W C O R P O R A T E E N T I T Y
H O L D I N G 5 % P R O J E C T I N T E R E S T
5 0 % H E L D B Y L O C A L R E S I D E N T S
5 0 % H E L D B Y L O C A L A L A S K A
N A T I V E V I L L A G E C O R P O R A T I O N S
=
Second, the business mentoring initiative will
ensure that village corporations are ready to
compete for construction and operations
contracts.
IGIUGIG NATIVE
CORPORATION
ILIAMNA DEVELOPME NT
CORPORATION
KIJIK CORPORATION
ALASKA PENINSULA
CORPORATION
Pebble is an asset and offers
economic opportunity statewide.
Both local and state governments will see
important revenue from the project.
POTENTIAL REVENUE TOTHE
LAKE & PENINSULA BOROUGH
$19M -$21M ANNUAL $377M -$420M OVER 20 YRS
LPB FY16 Operating Budget = $6.4M
$49M -$66M
ANNUAL
$970M -$1.32B
OVER 20 YRS
Includes estimates of mineral licensing
tax, corporate tax, and state royalties.
POTENTIAL STATE REVENUE
O P E R A T I N G B U D G E T
O F $ 4 0 0 M + A N N U A L
ECONOMIC
ACTIVITY FOR
ALASKA
But what do all these economic numbers mean
for Alaskans? They mean opportunities. Jobs.
750-1000 DIRECT
1500-2000 TOTAL
AVERAGE MINING
WAGE = $100K +
JOBS FOR
ALASKANS
And jobs mean self-sufficiency. Purpose.
9 FACTS
There has been too much propaganda
about Pebble. Let’s review the facts.
Pebble is an asset for Alaska.
1
Pebble means jobs for Alaskans.
2
Pebble will NOT harm the fish.
3
The purpose of permitting is to
validate this.
Alaska knows how to develop
resources responsibly, and has
done so for decades.
We look forward to working together.
The right mine. The right time.