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Vale Kronau ProjectEnvironmental Impact Statement Executive Summary
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Who Are We? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Vale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
What is Vale’s Sustainable Development Policy?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Sustainable Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Sustainability as a Legacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
What is Vale Proposing to Do? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
What is a Solution Mine? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
How Does a Solution Mine Work?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
The Four Phases of a Wellfield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Cold Comfort – A Processing Plant Alternative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
How is the Liquid Converted into Potash?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Where is all this Water Coming From? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Water Use Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Exactly How Much Water Does Vale Need? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Won’t All this Salt Ruin the Soil? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Won’t the Mine Leave Behind Other Types of Waste? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
How Long will this Take? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Construction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Decommissioning and Reclamation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
What Happens if Vale Goes Out of Business? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Vale Project Development Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
How Much Input will the Public have in the Mine Development?. . . . . . . . . . . . . . . . . 19
Pre-Project Proposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Project Proposal Discussion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Pre-Environmental Impact Statement Submission. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Environmental Impact Statement Discussion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Post-Environmental Impact Statement Follow-up . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
What is the Government’s Role? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
The Saskatchewan Environmental Assessment Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
How was the Environmental Assessment Done? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Environmental Assessment Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
What are the Valued Environmental Components for the Kronau Project? . . . . . . . 24
Air Quality and Noise. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Hydrology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Groundwater . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Surface Water Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Soils . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Vegetation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Wildlife . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Heritage Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Employment and Economy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Community Services and Infrastructure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Traffic and Transportation Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Environment, Health and Safety Management System . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
The EH&S Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
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Contents
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Introduction
Vale is seeking approval to build a potash mine near the hamlet of Kronau, Saskatchewan, approximately 30kilometres southeast of Regina.
Photo: Willie Leake
2.9million tonnesof potash will beproduced annually ifthe proposed mine isapproved.
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If successfully launched, the Kronau mine wouldproduce around 2.9 million tonnes of potash a yearwith significant employment and economicbenefits to the local region, Saskatchewan andCanada.
Like many mining companies around the world,Vale is interested in potash. The world’s populationis growing larger and gradually becoming moreaffluent. This means that, in the near future, we willsee an ever-growing demand for food – both interms of quantity and quality. Since potash is a keyingredient of the best fertilizers, it will play anindispensable role in feeding a hungry world.Potash’s importance is good news for the provinceof Saskatchewan, which is home to roughly 40 percent of the world’s potash.
Gaining approval for any sort of mine is not easy,nor should it be. Creating a mine inevitably provideschallenges and opportunities for the localenvironment and infrastructure. There must be athorough plan in place to minimize or, ideally,eliminate any adverse environmental effects andimpact on the community. The governments ofSaskatchewan and Canada have extensiveregulations to ensure that resource development isdone in an environmentally sustainable manner.Vale too has high corporate standards in this regard.We are committed to pursuing this project in a waythat not only makes sense for Vale as a company butis sustainable and beneficial for the people ofKronau, Saskatchewan, and, ultimately, the world.
A central component of gaining government approvalfor a mine is the submission and approval of anenvironmental impact statement (EIS). This is acomprehensive technical document intended todemonstrate to regulators, engineers, geoscientistsand other scientific experts that Vale has well-thought-
out, scientifically based, effective plans for dealing withthe potential effects of our proposed mine.
In order to make this information accessible to thegeneral public, we have prepared this documentwhich summarizes the key points of the EIS. Wehave also tried to anticipate some basic questionsyou may have about our company, the project orthe potash mining process.
If, after reading this summary, you would likefurther detail about any aspect of our plan for theKronau Project, please do not hesitate to askquestions or to examine the full EIS, which you candownload from our website.
You can send your questions and commentsdirectly to Vale by:
Email: [email protected]: 306-791-4510Web: www.valepotashcanada.ca
Kronau Project Location
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Who Are We?
Today, Vale is the second largest mining company in the world but we started as a small mining company inBrazil. Our name in Portuguese literally means “the valley” in honour of Vale do Rio Doce (“the Fresh-waterRiver Valley”), the area of one of our first mines.
Photo: Erno Schneider / Agencia Vale
ValeValuesLife matters most. Value our people.Prize our planet. Do what is right. Improve together. Make it happen.
Canada
Mexico
AustriaU.K.
Barbados
South Korea
Japan
Taiwan
Singapore
New Caledonia
China
IndiaThailand
Indonesia
Australia
Switzerland
Peru
GuineaOman
U.A.E.
AngolaZambia
Papua New GuineaBrazil Malawi
Dem. Rep. of Congo
Mozambique
ChileArgentina
MalaysiaPhilippines
Paraguay
USA
Toronto
Long Harbour
Thompson
Sudbury
St. John’s
Voisey’s Bay
Port Colborne
Regina
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ValeWhile our headquarters remains in Brazil, we nowhave operations in over 30 countries. Vale employsaround 140,000 people on five continents. InCanada, Vale employs over 6,000 full-timeemployees. We have offices and operations inSaskatchewan, Manitoba and Ontario, as well asNewfoundland and Labrador.
Vale discovers and transforms the minerals that areessential ingredients in the products people useevery day. Our company operates by a simple setof values which we strive to carry through toeverything we do.
Vale is the global leader in iron ore production andthe second largest nickel producer in the world. Wealso have a wealth of experience extracting otherminerals, including fertilizers. We bring over acentury of experience in mineral exploration,mining, metals processing and mining wastemanagement to the Kronau Project.
These years of experience have allowed Vale todevelop global policies and standards that areconsistent with our values. One of our mostimportant policies, which applies to every Valeproject – including Kronau – is our SustainableDevelopment Policy.
Vale S.A. Global and Canada
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What is Vale’s Sustainable Development Policy?
Vale’s Sustainable Development Policy is founded on two key principles: SustainableDevelopment and Sustainability as a Legacy.
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Sustainable DevelopmentFor Vale, sustainable development is achieved whenits activities, particularly its mining operations, addvalue to its shareholders and stakeholders whilecontributing to social strengthening, economicdevelopment of regional vocations and environ-mental conservation and restoration, through aconscious and responsible management approach,voluntary corporate actions and the establishmentof partnerships with governments, publicinstitutions, the private sector and civil society.
Sustainability as a LegacyVale’s principle is to act with the objective of leaving apositive social, economic and environmental legacyin the areas where it operates, by encouraging socialinclusion through work education and humandevelopment, economic growth and diversificationand strengthening of local institutions (i.e., supportingthe responsible public institutions with the planningof appropriate urban infrastructure, while contributingto the conservation and restoration of the ecosystems,biodiversity and cultural heritage of the region).
Mining is by nature a finite activity, limited to thelife cycle of the mineral deposit. The sustainabilitylegacy of Vale’s operations depends on thedevelopment of new economic vocations that mayguarantee continued social well-being in balancewith the environment and conservation.
Through social investments and public partnerships,Vale seeks to strengthen community social andeconomic development around the world. Our aimis to leave a sustainable legacy in the regions wherewe operate. Across the country, Vale is proud topartner with local and national organizations. Wefocus on developing innovative programs andinitiatives that help to:
• improve the health, environmental, cultural and educational capacity in Canadian communities
• enhance national, provincial and regional programming
• create a community of engaged, civic-minded employees and friends
• build the infrastructure that the community needs to reach its full potential
Previous Page: Vale’s Copper Cliff Greenhouse. Seedlingsare grown every year and used for re-greening efforts onVale’s site and across the Greater Sudbury Area.
Above: Even in the early phases of the Kronau Project, wepartnered with the Kronau Community Centre in 2011 totransform the local curling rink into a multi-purpose facility.
Back row, left to right: Don McMorris, Trevor Glas, CameronHoffart, Angel Ell, Matthew Wood. Front row, left to right:Lona Gervais, Dawn Leippi, Daniel Ell, Murray Leippi, BradSchneider, Lianne Gooding.
Our MissionVale’s Mission is to transform mineral resources into prosperity and sustainable development.
Photo courtesy: Stacey Fortner
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What is Vale Proposing to Do?
During this time, we believe the mine will produceroughly 2.9 million tonnes of potash per year. Attoday’s world prices for potash (which are currentlylower than in previous years), this would translateto approximately $1.2 billion per year of potashproduction. A substantial portion of this would flowback to the people of Saskatchewan and Canadathrough royalties, taxes, wages, supply purchasesand other direct and indirect economic spinoffs.
Here are a few key facts about the Kronau Project:
• Vale started exploring the area in 2009
• the size of the discovery spans approximately 51 840 hectares
• the majority of the area is cultivated farmland with a few patches of marshland
• the discovery is part of the Prairie Evaporite Formation, a geological layer that is located at 1600 to 1750 metres underground at our project location
• the potash in the discovery is contained in a mineral bed about 55 metres thick
• the mineral bed is actually a mixture of potash and salt, with minor amounts of other minerals and clays
We intend to complete a potash solution mine in the Kronau area. The mine would take approximately fouryears to build and would have an estimated productive life of 70 years.
Did You Know?Vale’s Kronau Project team is using cogeneration as a source of steam and powerfor the processing plant. By efficiently sourcing our energy, we’ll reduce ourenvironmental footprint.
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What is a Solution Mine?
When most people think of a mine, they typicallythink of a conventional underground mine – a holein the ground with people inside chipping away atrock. Solution mines are a relatively new but well-researched form of mine. They have operatedsuccessfully in Saskatchewan for about 40 years.Solution mines can minimize surface disturbance.
In most cases, activities such as farming cancontinue on the majority of the land throughoutthe entire solution mining operation.
This type of mine works by pumping liquid into themineral bed to dissolve the potash and salt, andthen return salt- and potash-infused water –referred to as brine – to the surface for processing.
Evaporation (heating) and crystallization (cooling)are then used to recover the potash from the brine.We will talk in more detail about the operations ofsolution mines next, and the processing later inthis document.
Solution mines are usually less expensive to buildthan conventional underground mines, providegreater production flexibility and cause lesssurface disturbance. Solution mines also eliminatethe hazards that sometimes result from sendingpeople to work underground.
Solution mines, however, do have particularchallenges of their own. The main challenge is thatthey require large and constant supplies of nearbywater and a significant amount of power toevaporate the water.
The source of water for the Kronau Project and theplan for dealing with the wastewater afterwardsare major parts of the environmental plan we’lldiscuss in this document.
How Does aSolution MineWork?Solution mining works by dissolvingthe mineral bed below the surface.Because this mining activity involvesdrilling a number of steel-cased wellsto inject liquid and extract brine (thewater with dissolved potash and salt),this area is called the wellfield.
During the life of the mine, thewellfield goes through four distinctphases:
1. Cavern Development
2. Cavern Mining
3. Secondary Mining
4. Cavern Closure
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The Four Phases of a Wellfield
3. Secondary MiningLater in the life of the mine,instead of injecting fresh water,the operation can inject asolution that is already saturatedwith salt. Chemically, this allowsfor further potash productionwith little additional saltproduction but this technique istypically used only after theinitial phases of extraction arecomplete.
4. Cavern ClosureDecades in the future, when allof the potash has beenextracted from the area – or ifthe mine closes for otherreasons – the wellfield isreturned as closely as possibleto a natural state. To preventdeep groundwater from flowingback up the wells, the holes areplugged with concrete.
1. Cavern DevelopmentTwo deep wells are drilled toallow the operation to pumphot water underneath thepotash deposit. Through acontrolled injection process,the hot water creates largeholes or caverns underneaththe deposit. This long andpainstaking set-up processtakes about a year to complete.
2. Cavern MiningThe start of production. Waterpumped down into the caverndissolves both potash and saltfrom the mineral bed. Thebrine is then pumped back upto the surface for processing.
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How is the Liquid Converted into Potash?Cold Comfort – A Processing PlantAlternative
Who would have thought thatcold Saskatchewan winterscould actually be a goodthing?
Vale is considering an alternativeprocessing method that would involvetransferring the hot brine to an externalpond during the winter months.
This could allow us to process thepotash using much less energy, whichwould be better for the environmentand better for our bottom line.
The viability of a cooling pond has yetto be determined. We will make a finaldecision about this option as theproject proceeds.
After the brine is pumped to the surface, it is pipedunderground to the process plant where it goesthrough several phases.
Tank Farm FacilityLarge tanks hold both the injection liquids and therecovered brine.
Brine Evaporation and CrystallizationFacilityIn the simplest terms, this is like a giant still. Thebrine is heated to separate out the salt. The potashremains dissolved in liquid and is delivered toanother area where it is further separated througha cooling crystallization process.
Potash Drying, Screening andCompactionThe wet potash crystals are dried and prepared forstorage and eventual delivery.
Potash Storage and ShippingThe potash is put in storage and eventually loadedon to railcars.
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Water bodies (including underground sources)within a nearly 100-kilometre radius of theproposed mine site were considered. Most werefound to be too unreliable (in terms of year-to-yearvariations in lake levels), too inaccessible or notsuitable in other ways.
Vale for the use of water from Buffalo Pound Lake.No renewal of the licence and no actual use ofwater will take place until any remainingenvironmental, regulatory or consultationrequirements have been satisfied. The physicalworks to bring water to the site will be owned andoperated by SaskWater, which will be responsiblefor addressing any environmental concernsassociated with those works.
A key consideration for both Vale and WSA washow our operations would affect the lake’s waterlevels. Buffalo Pound Lake was determined to bethe most reliable and easily managed water source.
Because it is the first major lake on the Qu’AppelleRiver system, located about 70 kilometres down-stream of Lake Diefenbaker reservoir, it is the mosteasily managed of the potential source lakes inproviding the required water volumes while main-taining lake water levels within the desired rangefor environmental protection and recreational use.
WSA has also completed a provincial water modelthat shows the water required for this project canbe withdrawn from Buffalo Pound Lake using thecurrent control structures with no significantchange to the hydrology.
We have concluded that a water pipeline fromBuffalo Pound Lake would be the best choice, eventhough it was the furthest away of all the optionswe examined. To assist in the planning anddevelopment of the project, the WSA has issued aconditional one-year term Water Rights Licence to
Where is all this Water Coming From?
Vale has worked closely with Saskatchewan’s Water Security Agency (WSA) to find the best possible source ofwater to meet our needs and accommodate environmental and social concerns.
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*Water use data provided by the Water Security Agency.
IrrigationIrrigation uses include the categories of agriculture (e.g. cereal crops), commercial gardens (e.g.greenhouses and nurseries) and parks (e.g. campgrounds, golf courses).
MunicipalMunicipal uses include commercial (e.g. stores, restaurants), institutional (e.g. schools, hospitals),recreational (e.g. golf courses), industrial and domestic uses, where the water is supplied through adistribution system that is operated within the boundaries of an established municipality (e.g., cities,towns, villages, rural municipalities).
Industrial Industrial uses include commercial construction, intensive livestock (e.g. cattle operations), mining (e.g.potash mines), manufacturing (e.g. pulp and paper) and oil recovery.
DomesticDomestic use includes household and sanitary use, the watering of stock, spraying of crops and wateringof non-commercial lawns and gardens. Private water sources are typically used in these instances (e.g.wells or dugouts).
The “other uses” category includes aquaculture (e.g. fish spawning), flood control (e.g. diversion works)and wildlife (e.g. waterfowl enhancement project). The “multiple uses” category includes all possiblecombinations of the above categories.
Water Use Definitions
60%Irrigation
16%Municipal
12%Multiple 9%
Industrial
2%Domestic
1%Other
2011 Saskatchewan Water Use*
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We have a financial as well as social responsibilityto minimize our water usage.
We estimate our water needs for an operationalKronau mine to be 21 million cubic metres per year.
This raw water would be used for a wide range ofactivities:
• the solution mining process itself
• the processing plant
• cooling water
• fire suppression water
• potable water
• boiler feed water
We propose to store the water on site in afreshwater pond. Except for the relatively smallamounts of water used for human needs, it won’tbe necessary to treat the raw water.
Water is a natural resource that belongs to everyonein Saskatchewan. For this reason, control andregulation of the water for the Kronau Project willremain firmly in the hands of the provincial agency,WSA. If the Kronau Project is approved and becomes
operational, SaskWater will construct, own andoperate the pumphouse and pipeline, makingSaskWater the water utility provider for the project.
Water RecyclingWe have also made a commitment, which will beoverseen by government regulators, to minimizethe effects of our use of water over time. We have aplan in place for our proposed process plant torecycle and reuse stormwater, drainwater, waste-water and process water to reduce the amount offresh water required.
Exactly How Much Water Does Vale Need?
Stormwater run-off will be directed to one side ofthe freshwater pond and will be kept separatefrom the fresh water. This will allow stormwater tobe clarified before it is sent to the freshwater sideof the pond.
This design not only allows reuse of stormwaterbut it also provides a buffer in the case of a waterpipeline outage. Since the stormwater side isempty most of the time, this space can be used toallow for an additional two days of freshwaterstorage when necessary.
Even the salty brine – a waste byproduct from theearlier phases of the potash processing – will berecovered and reused where it is suitable to do so.
is the percentage of the province’s water used by the entireSaskatchewan mining sector in 2011.4%
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Operations of the Tailings (Waste)Management AreaThe solution mining process leaves behind a greatdeal of briny water as well as a certain amount ofsolid salt waste. Over the years, operators ofpotash solution mines have developed effectivemeasures for dealing with these issues.
In designing the Kronau Project, Vale has goneabove and beyond in drawing on the bestpractices from around the world.
Wastewater DisposalAs with the majority of the operating potash minesin Saskatchewan, we will use deep well injectionmethods to dispose of the wastewater. Vale hasconducted an evaluation of the capacity ofpotential deep injection locations and hasidentified the Winnipeg/ Deadwood Formations tobe suitable for brine disposal. The Winnipeg/Deadwood Formations are also used by a numberof the operating potash mines and areapproximately 2200 metres beneath the surface.The exact number of wells required will bedetermined based on observed performance
during operations. Injection wells will be spaced ata minimum distance of 500 metres to preventexcessive interference between wells. The injectionwells will be cased with steel like the operatingwells and are regulated by the SaskatchewanMinistry of Energy and Resources.
Waste Salt StorageThe waste salt storage pile will be enclosed by adyke to keep it separated from the surroundingarea.
Brine Reclaim PondThe brine liquids will be diverted to a reclaim pondwhere they will be kept until they can be reused inthe mine or processing plant. The pond will bedesigned to provide protection against stormevents to further ensure that the brine does notspill over into surrounding soils.
ContainmentThe containment systems for both the solid andliquid wastes will be designed to work vertically aswell as horizontally to ensure that the waste doesnot contaminate groundwater or surrounding soil.We will use the geological or chemical qualities ofthe immediate area to help contain the waste.
All these systems will be monitored to ensure theyare operating properly and that potentialproblems will be detected early on.
Won’t All this Salt Ruin the Soil?
Image of proposed Kronau mine at year 80.
What other buildings will be at themine site?The site will also contain administration buildings,a warehouse and maintenance building, acombined heat and power plant, a potable watertreatment plant, a sewage treatment plant, a largeproduct storage building (capable of holding 28days of production) and a rail loading facility.
What will be the mine’s transportationneeds?Road access will be provided primarily fromHighway 33. Potash will be shipped to port viacovered railcars.
What additional infrastructure willVale need to run the mine?Support infrastructure for the Kronau Project willinclude water, power, natural gas,communications, road access and rail access.
As discussed previously, SaskWater will be thewater utility provider for the Kronau Project. Thewater would be delivered to the main facilitythrough a pipeline from Buffalo Pound Lake.
SaskPower, TransGas and SaskTel will providepower, natural gas and telecommunicationservices for the Kronau Project.
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Won’t the Mine Leave Behind Other Types of Waste?
All domestic wastes from the mine site (including food wastes and wastes from construction,operations and administration offices) will be collected and transferred to appropriate off-sitedisposal facilities by a licensed contractor.
All storage andhandling ofhazardousmaterials andhazardous wastewill meet legalrequirements.
This includes employee training,storage facility design and operation,labelling and material control.
Our Environmental, Health and SafetyManagement System will includeprocedures for all of these activities.
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How Long will This Take?
The Kronau Project can be broken down into three phases: Construction, Operations, andDecommissioning and Reclamation.
Vale Project Development Schedule
2010Begin baseline environmental studies
2011Begin EIS preparation and submission
2013EIS review period and approval
2014Begin Kronau Project detailed engineering
2015Start construction and drilling
2018-19Begin processing plant production
2016Begin solution mining activities
ConstructionConstruction will take about four years. Thatincludes building the site facilities, tailingsmanagement area and the wellfield.
We will not be building worker accommodationson site. Because the project is located near Regina,we expect workers will live in the city or nearbycommunities.
OperationsWe estimate that the mine will remain in operationfor about 70 years. During that time, around 350people will work on site and be responsible forproducing 2.9 million tonnes of potash per year.
Decommissioning and ReclamationIn modern mine development, no mine can bebuilt unless there is a long-term “end of life” plan inplace for the mine. Throughout our design of theKronau Project, Vale has been thinking about howwe will go about closing the mine(decommissioning) and returning the area asclosely as possible to its original condition
(reclamation). We estimate that it will take about ayear to complete this phase of the mine’s life.
Our duty to the environment and the communitywill not end when the mine is formally closed.Following cessation of operations, Vale will ensurethat lands disturbed by Kronau Project activitiesare returned to a condition that is physically stable,safe and environmentally sustaining in keepingwith the land use and landscape of the day.
What happens if Vale goes out ofbusiness? Will taxpayers be stuckpaying for decommissioning?Provincial regulations require that a credibledecommissioning and reclamation plan accountsfor changes in ownership or financing of the mine.In essence, Vale would have to post a type of bondor carry a form of insurance to limit the financialrisk to society for the costs of all decommissioningand reclamation activities.
Through collaborative efforts, we will continue toconsult with stakeholder groups and considercommunity recommendations.
To Vale, a thorough, healthy discussion involvesthree key characteristics:
• scientifically sound facts
• diverse perspectives
• transparent processes
These discussions will evolve along with the stagesof the project development.
Pre-Project ProposalThe concept of the mine is introduced anddiscussed at the very highest level. Broadcomments and concerns are taken into consider-ation to help Vale continue to develop the project.
Project Proposal DiscussionThe contents of the project proposal are sharedand discussed. At this point, both broad andspecific comments and concerns are taken intoconsideration.
Pre-Environmental Impact StatementSubmissionWe continue to talk and listen to people throughmore discussion opportunities. As we wrap up thisstage, Vale will summarize the general themes ofinterest and concern that we have heard from allstakeholders. This information will form the basisfor the environmental impact statement.
Environmental Impact StatementDiscussionThe contents of the environmental impactstatement are shared and discussed at length.
Post-Environmental ImpactStatement Follow-upThe engagement process does not end with thesubmission of the environmental impactstatement. It will continue to evolve with thedevelopment of the project and the life of theproposed mine.
No matter what stage we are at, Vale is committedto ongoing discussion with all stakeholder groups.
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How Much Input will the Public have in the MineDevelopment?
Vale is committed to fair and responsible development and, with this in mind, has sought community inputfrom the very earliest stages of the Kronau Project.
3Major StakeholderGroups have beenIdentified:First Nations and Métis Communities,the Public, Government andRegulatory Agencies.
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What is the Government’s Role?
Vale submitted a project proposal to theSaskatchewan Ministry of Environment in August2011 for the development of the Kronau Project.The Saskatchewan Ministry of Environmentdetermined that the Kronau Project was a“development” as defined by section 2(d) of theSaskatchewan Environmental Assessment Act.
In accordance with section 9 of the SaskatchewanEnvironmental Assessment Act, Vale mustsubmit an environmental impact statement to theprovincial Ministry of Environment. Should theenvironmental impact statement sufficientlydemonstrate that the Kronau Project isenvironmentally acceptable, then and only thenwill the provincial government consider Vale’sapplications for the necessary provincial approvals,permits and licences that regulate constructionand operation.
In some cases, the federal government is alsoinvolved in regulating mine projects, but this is notthe case with the Kronau Project. In accordancewith the Canada-Saskatchewan Agreement onEnvironmental Assessment Cooperation (2005),the Canadian Environmental Assessment Agency
Saskatchewan's environmental assessment process is designed to evaluate the potential environmentaleffects of developments so the real costs and trade-offs at stake in a particular situation can be fullyunderstood.
completed a survey of federal departments to seeif any of them had jurisdiction regarding theKronau Project.
Based on the responses to this survey theCanadian Environmental Assessment Agency hasdetermined that the Canadian EnvironmentalAssessment Act does not apply to the KronauProject.
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The Saskatchewan Environmental Assessment Process
Proponent interested in proposed project
Proponent conducts self screening as per Technical
Proposal Guidelines†
Proponent proceeds with required licences and
permits
no
Proponent submits application to EAB,
prepares and submits Technical Proposal
yes or not sure
Ministerial determination provided as to whether or
not project is a development under 2(d) of
EAA
not a development
development
START HERE
Development?
Draft TOR and Technical Proposal reviewed by EAB
and SEARP
Final TOR approved by EAB
Proponent conducts EIA and submits EIS to EAB
EAB and SEARP conduct technical review of EIS
EAB prepares Technical Review Comments
Public notice issued for public reivew of the EIS and
TRCs
EAB provides deficiency statement to proponent
Proponent to prepare and submit addendums or revisions of EIS to EAB
New information reviewed by EAB and SEARP
inadequate
adequate
Proponent to develop and submit TOR to EAB
Public notice that environmental assessment is being conducted as per
s.10 of the EAA
EIS and TRCs released for 30 day public review
period*
Public comments received by EAB
EAB submits EIS, TRCs, public comments and any inquiry findings and their recommendations to the
minister**
Minister decides to either approve or not approve the
development
Proponent may proceed with the development
subject to the minister‘s approval and any other provincial and federal
legislative or permitting requirements
approvedwith or without
conditions
Proponent may not proceed with development
not approved
to EAB
N
KeyTPG – Technical Proposal GuidelinesEAB – Environmental Assessment BranchEAA – The Environmental Assessment ActTOR – Terms of ReferenceSEARP – Saskatchewan Environmental Assessment Review PanelEIA – Environmental Impact AssessmentEIS – Environmental Impact StatementTRCs- Technical Review Comments
* Any person may: make a written submission to the minister within 30 days from the date when the minister first gives notice or if the minister considers it appropriate, within an additional period of 30 days.**Minister may require public meetings or public inquiry into all or any aspect of the development at any time prior to making a decision about the development
Proposal Development
Screening
Application
Scoping
Impact Assessment
Review
Public Comment
Decision by Minister
†Changes to a development with prior Ministerial Approval require review by EA Branch
22
How was the Environmental Assessment Done?
Our environmental assessment approach considered ecological, cultural, social and economicprinciples.
23
One best practice that has become widely acceptedin Canada – and which we will use for the KronauProject – is the concept of valued environmentalcomponents. For any given piece of land, thenumber of biological, physical and human aspectsassociated with that land is infinite. However, ourcapacity as human beings to consider thoseaspects is limited. Since it would be impossible tostudy every aspect of the environment in the samelevel of detail, the environmental assessmentprocess focuses on some key aspects that areconsidered especially important – the valuedenvironmental components.
Coming up with this list of valued components isan interactive process that involves many people.Scientific experts and government regulators havea large say in how we assemble this list but we alsotake into consideration the concerns andcomments we receive from the public and otherstakeholders. We will look at the concept of valuedenvironmental components in more detail later inthis document.
The environmental assessment looks at the impactof the mine at all phases of its life, fromconstruction through to decommissioning andreclamation. In the assessment, we also try toaccount for the effects of accidents, malfunctionsand other unplanned events.
The overall environmental assessment approachprogresses through five steps:
• establishing boundaries (i.e., how much space and time are involved in the assessment)
Environmental Assessment Methodology
Existing Environment Project Description
Evaluation of Project Interactions
Residual EnvironmentalSocio-economic E!ects Analysis
Determination of Signi"cance
Uncertainty
Monitoring and Follow-up
Will Environmental/Socio-economic E!ects on VECs from the Project and Other Developments Overlap in Time and Space?
Analysis Residual Project-speci"c Environmental/Socio-economic E!ects
Implement Mitigation
End Assessment
YESNO
PrimaryInteractionsNo Linkage or
Secondary Interactions
Analysis Residual Project-Speci"c and Cumulative Environmental/Socio-economic E!ects
• describing existing conditions as a yardstick against which we can measure changes that happen as a result of the project
• identifying how the project may affect the environment, society and the economy, and proposing ways to mitigate or minimize those effects
• analyzing the environmental, social and economic effects
• determining the significance of these effects
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What are the Valued Environmental Components forthe Kronau Project?
The key factors that we have examined in ourenvironmental impact statement are:
• air quality and noise
• groundwater
• hydrology (i.e., surface water quantity)
• surface water quality
• soil
• vegetation
• wildlife
• heritage resources
• employment and the economy
• community services and infrastructure
• traffic and transportation infrastructure
The following subsections briefly describe ouranalysis of the potential effects of the KronauProject on these valued environmentalcomponents. We also provide some examples ofour mitigation measures through engineeringdesign features and proposed mitigationstrategies. For the full technical details of allspecific mitigation features, please refer to the fullversion of the EIS.
Pathway VECsAtmospheric EnvironmentGroundwaterHydrologySurface Water Quality
Biophysical and Cultural VECsSoilsVegetationWildlifeHeritage Resources
Socio-economic VECsEmployment and EconomyCommunity Services and Infrastructure Tra!c and Transportation Infrastructure
Focused List of Valued EnvironmentalComponents (VECs)
EngagementWith First Nations, Métis Communities, Public, Government and Regulatory Agencies
Use of Predictive ModelsNoise/Air Emissions, Habitat Suitability Models and Groundwater Hydrology
Baseline Studies
Previous EISs and Studies in the Region
Project Description
Project Environmental Interactions
Literature Reviewand Technical Experts
Terms of Reference
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Air Quality and NoiseEngineering design features have been included inthe Kronau Project to reduce the effects ofincreased air emissions, dust, noise levels andgreenhouse gas emissions.
Some examples of these design features include:
• dust from the process plant will be collected in baghouses to limit its release
• the use of paved roads on site, as much as possible, will reduce dust generated by vehicles and equipment
• construction activities will be limited, where practical, to daytime hours
As a result of these plans, the overall effects fromthe Kronau Project on air quality and noise are notsignificant. Vale will continue to monitor weather,air quality and noise levels to test our predictionmodels.
HydrologyThe hydrology analysis examines the KronauProject’s effects on surface water quantity andavailability. Engineering design features have beenincluded in the development of the Kronau Projectto reduce the effects on the local water supply.
Some examples of these design features include:
• the compact layout of the core mine facilities area will limit the area that is disturbed by the project
• pillars will be left between the mine caverns to increase stability during solution mining and limit any potential adverse effects on the surfacewater quantity and availability
As a result of these design features, the hydrologicaleffects are not significant. Vale will continuemonitoring local surface water. We will alsocontinue to work closely with provincial regulatorsto evaluate the effectiveness of our measures.
GroundwaterThe groundwater analysis examines effects ongroundwater quality and quantity. Engineeringdesign features have been included in the KronauProject to reduce effects on groundwater from theproject in general as well as from unplanned eventssuch as a non-hazardous or hazardous chemicalspill, fuel or chemical containment failure, aboveground and underground pipeline leak, tailingscontainment failure, and brine containment failure.
Some examples of these design features include:
• encasing all wells in steel to eliminate interactionbetween the caverns and groundwater
• disposing of excess brine by injecting it into deep wells, a proven practice used to manage brine and prevent release to surface waters and freshwater aquifers
• designing a containment system to control bothdeep migration of brine to underlying aquifers and horizontal migration of brine, as required
As a result of these and other plans, the overallenvironmental effects from the Kronau Project ongroundwater are not significant. Vale will monitorand inspect the tailings management area. We willdevelop strict thresholds so that, if required,further measures can be taken in a timely manner.
Surface Water QualityEngineering design features have been included inthe Kronau Project to reduce effects on surfacewater quality.
Some examples of these design features include:
• all run-off within the site will be contained so it is not released into the environment. It will be directed to the brine pond for deep well injection
• erosion control measures such as silt fences, sediment stops and settling ponds will be implemented to prevent sediment from enteringwatercourses during construction of the project
As a result of these design features, effects fromthe Kronau Project on surface water quality are notsignificant. Vale will monitor soil erosion, air qualityand tailings management to ensure surface waterquality is not adversely affected.
26
SoilsThe soils effects analysis examines soil quality, soiltypes and soil distribution. Engineering designfeatures have been included in the Kronau Projectto reduce the effects of loss or alteration of soils,changes in soil capability to support agricultureand any other aspects of the soil ecosystem.
Some examples of the design features we wouldimplement include:
• placing the waste (tailings) in an area where natural soil conditions inhibit the absorption of salt or brine
• disposing of excess brine by injecting it into deep wells, a proven practice used to manage brine and prevent release to surface waters and freshwater aquifers
As a result of these and other design features, theeffect of the Kronau Project on the local soil is notsignificant. Vale will monitor for subsidence (e.g.,sinking or settling) and soil erosion and regularlyinspect pipelines and the tailings management area.
VegetationOur vegetation analysis examines effects on plantpopulations and communities, government-listedplant species (i.e., species-at-risk) and traditionaluse plants.
Engineering design features have been included inthe Kronau Project to reduce loss of traditional useplants and changes in vegetation quality that mightresult from the project.
Some examples of these design features include:
• existing public roads will be used where possibleto provide access to the mine wellfield, which will reduce the amount of new road constructionrequired for the project
• railroads and utility lines (gas, water and power) will be routed along existing utility corridors to reduce disturbance to undisturbed areas, where possible
As a result of these design features, the effects of theKronau Project on vegetation are not significant. Inaddition to the previously discussed monitoringprograms, Vale will also have an equipmentmaintenance and cleaning program that adheres tothe provincial Weed Control Act (2010). We willconduct additional site assessments, as requiredprior to construction, to identify listed plant speciesand develop a revegetation monitoring program aspart of the decommissioning and reclamation plan.
WildlifeOur wildlife analysis examines effects on wildlifehabitat, the relative abundance and distribution ofwildlife species and government-listed wildlifespecies (i.e., species-at-risk).
Engineering design features have been included inthe Kronau Project to reduce the effects associatedwith wildlife habitat loss and fragmentation, sensorydisturbance, nuisance wildlife, mortality of wildlife,and decrease in habitat quality that may resultfrom the project.
Some examples of these design features include:
• the process plant and administration buildings will be fenced to deter entry by non-employees and prevent most wildlife from entering these areas
• food wastes will be collected in suitable receptacles that limit attraction or impact to wildlife
• littering and feeding of wildlife will be prohibited
As a result of these design features, the effects ofthe Kronau Project on wildlife are not significant.Vale will conduct additional wildlife surveys priorto construction. If additional listed wildlife areidentified, appropriate measures will be discussedwith the Ministry of Environment before anyconstruction activities are started.
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Heritage ResourcesOur heritage resources analysis examines effectson archaeological and sacred sites located withinthe project area. Work was conducted using bothwestern science and applied traditionalknowledge.
Engineering design features have been included inthe development of the Kronau Project to reducethe loss or alteration of heritage resources.
Some examples of these design measures include:
• keeping the size of the core mine facilities as small as possible to limit the area disturbed during construction
• using existing roads as much as possible to reduce the need for new road construction
• creating an acceptable policy for dealing with archaeological or heritage materials that may be discovered during construction or operation of the mine
As a result of these and other design features, theeffects on heritage resources are not significant.The location of known heritage resources will beincorporated into our Environmental, Health andSafety Management System; this will also include aresponse plan for any archaeological or heritagediscoveries. As Vale develops the Kronau Project, itwill discuss these plans, as needed, with theSaskatchewan Ministry of Parks, Culture and Sport– Heritage Conservation Branch.
Employment and EconomyThe employment and economy analysis examineseffects on the number and types of jobs available,sources of skilled labour, changes in agriculturalland use and extent of economic benefits.
The negative effects from the Kronau Project onemployment and economy are not significant. Infact, we believe there will be a number of positiveeffects, including:
• primary and secondary job creation
• tax and royalty revenue
• increased training opportunities
Vale will continue to hold discussions with allstakeholder groups to consider any otheremployment and economic effects which mayhave been overlooked.
Community Services andInfrastructureOur community services and infrastructure analysisexamines effects on housing, accommodations,social, health, emergency and protective services,and physical infrastructure.
The effects of the Kronau Project on communityservices and infrastructure will be significant. Themine is a major undertaking which will employmany people who will require community services.
Vale is committed to continue to engage with allstakeholder groups to develop plans for thesechanges.
Traffic and TransportationInfrastructureOur traffic and transportation infrastructureanalysis examines effects on traffic patterns andvolume, traffic safety and infrastructure such asroad quality.
Vale has developed plans to minimize our effecton traffic and transportation infrastructure. Someexamples include:
• shipping product by rail, which will reduce traffic on roads
• seeking input on proposed road modifications/ closures, new roads, transportation routes and travel times from local municipalities and the Saskatchewan Ministry of Highways and Infrastructure
• examining options for mass transportation for workers, such as busing or carpooling, to reducecommuter traffic
• timely snow removal and sanding during the winter
As a result of these and other measures, the effectsfrom the Kronau Project on traffic and transport-ation infrastructure are not significant.Nonetheless, Vale will continue to discuss theseissues with all stakeholder groups.
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Environment, Health and Safety Management System
Vale manages all projects worldwide in a proactive manner to create a safe work environment for humans andto protect the natural environment.
Vale maintains an active Environment, Health andSafety (EH&S) Management System that is basedon the Occupational Health and SafetyManagement System 18001:2007 and the ISO14001 Environmental Management SystemStandards.
The EH&S Management System will be used as thebasis to develop site-specific occupational healthand safety plans and environmental managementplans. The development of such plans will bebased on:
• the adverse environmental effects identified in the environmental impact statement
• hazards and risks identified for the Vale Kronau Project throughout the planning stages
• regulatory requirements
The Vale EH&S plans will be updated on a regularbasis and at important milestones in the KronauProject life, as the scope and content of the EH&Splans will vary according to the phase ofdevelopment.
29
The EH&S plans include:
• environmental protection plan
• occupational health and safety plan
• human resources plan
• emergency response and contingencyplan
• decommissioning and reclamation plan
• environmental, health and safety training plan
• community relations plan
• monitoring and follow-up plan
• auditing and continuous improvementsplan
13. Monitoring, Audits, Inspection and Reviews
12. Accident Investigation and Treatment of Deviations
11. Emergency Preparation and Response
10. Maintenance of Integrity of Facilities and Equipment
9. Design and Implementation of Facilities and Process
8. Operational Control 7. Communications and Consultation
6. Management of Service Providers
5. Behavioural Development & Training in Health & Safety
4. Health and Safety Planning
3. Analysis and Management of Risks and Changes
2. Health & Safety Information and Legal Requirements
1. Leadership in Health and Safety
Monitoring and Learning Planning
Implementation and Control
Environment, Health and Safety Management System
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Conclusions
The environmental assessment has demonstratedthere are likely benefits associated with theproject. Vale believes local and regional economieswill benefit in many ways from a world-classpotash deposit with a potential mine life of 70years. These benefits would include job creation,purchase of local supplies and services, taxes paidto municipalities and potential roadimprovements.
Once mining commences, the benefits will alsoinclude royalty payments to the Government ofSaskatchewan. This is all in addition to Vale’salready proven commitment to help localcommunities through sponsorships andcommunity investment.
Our analysis also shows there is the potential forthe Kronau Project to adversely affect communityservices and infrastructure. As projectdevelopment progresses, Vale will continue toengage with all stakeholders to create andexamine options that reduce and further mitigateall potential adverse effects.
Based on the analysis provided in this environmental impact statement and the engineered design featuresaimed at reducing negative effects, Vale believes that the Kronau Project, from construction through todecommissioning and reclamation, is not likely to cause significant adverse environmental effects.There are some potential social and economic effects, both positive and negative, as detailed below.
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CommitmentsAs a leading global mining company, our values are embedded in everything we do. We take ourcommitments to you very seriously. With your support, we propose to build a solution potash mine in themost responsible manner so that together we will leave a sustainable legacy that benefits future generations.Vale will comply with all legal and legislative obligations related to construction and operations as well asdecommissioning and reclamation. The commitments below are in addition to legal requirements.
1. Vale will undertake further stakeholder engagement during and after the environmental impact statement review period, for the life of the mine.
2. Vale will continue to investigate the possibility of secondary mining to reduce the amount of salt stored on surface.
3. Vale will develop an Environmental, Health and Safety Management System to ensure all commitments are completed, including appropriate monitoring programs, environmental protection plans and emergency response plans.
4. Vale will ensure that the tailings management area will be monitored for slope stability, groundwater chemistry and hydraulic head. Additionally, downhole geophysical electromagnetic surveys and terrain conductivity surveys will also be completed.
5. In conjunction with regulators, Vale will develop a subsidence (ground shifting) monitoring program.
6. Vale will ensure the weather tower and the on-site air quality monitoring station will continue to collect data.
7. Groundwater models will be updated, on an as-needed basis, using newly collected data.
8. In conjunction with regulators, Vale will develop a surface water quality monitoring program.
9. Vale will continue the local surface water level monitoring program that wasestablished in 2010 within the local subwatersheds in the area.
10. Vale will develop a detailed closure plan consistent with provincial requirements.
11. Vale will work with the relevant provincial ministries to develop and maintain an appropriate level of financial security for the project.
12. Vale will leave pillars between the mine caverns to increase stability during solution mining and subsidence.
13. Vale will ensure fresh water will be routed around the site and returned to pre-development watercourses to reduce the amount of water entering thecore facilities area.
14. All run-off within the core facilities area will be collected and contained within a storm water pond for re-use within the process.
15. Vale will implement design features to prevent lateral long-term seepage of brine from the tailings management area.
16. Vale will undertake investigations in subsequent design phases of the tailings management area to further delineate the hydrogeology.
17. Vale is committed to developing local employment and contractor and procurement strategies, where possible.
www.valepotashcanada.ca
FeedbackIf you would like further details, please do nothesitate to ask questions or to examine the full EIS.Send your questions and comments directly to Vale.
Email: [email protected]: 306-791-4510Web: www.valepotashcanada.ca
