Loading...
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.