Voisey's Bay Mine/Mill Project
Environmental Impact Statement
Summary and Conclusions
December
1997
1. Introduction
Need for the Project
The Environmental Impact Statement
2. Project Description
Project Philosophy
Sustainable Development, Biodiversity and Precautionary Principle
Employment and Business Principles
Community Involvement and Communications
Main Features of the Project
Site Infrastructure
Mining Facilities
Processing Facilities
Mining Plan
Open Pit Mining
Underground Mining
Processing
Mine Rock Disposal
Tailings Management
Construction and Infrastructure
Employment
Transportation
Reclamation, Decommissioning and Closure
3. Project Setting
The Development of Labrador
Physical Setting
Biological Setting
Socioeconomic Setting
4. Effects
Effects on the Natural Environment
Vegetation
Wildlife
Caribou
Black Bear
Birds
Water and Fish
Shipping
Effects on Aboriginal Peoples
Historic Resources
Socioeconomic Effects
Family and Community Life
Community Service and Infrastructure
Economic Effects
Construction Phase
Open Pit Mining Phase
Underground Mining Phase
Business Effects
Effects on Provincial Treasury
5. Environmental Management
6. Conclusion
This is a summary of the Environmental Impact Statement (EIS) prepared for submission
to the Environmental Assessment Review Panel (the Panel) for the development of a proposed mine/mill complex and related infrastructure to produce mineral concentrates at Voisey's Bay, Labrador (the Project) by Voisey's Bay Nickel Company Limited (VBNC), a subsidiary of Inco Limited (Inco). The Project is located in northern Labrador on a peninsula bordered to the north by Anaktalak Bay and to the south by Voisey's Bay approximately 35 kilometers (km) south-west of Nain and 80 km north-west of Utshimassits.
The original mineral discovery at Voisey's Bay was made in late 1993 by prospectors exploring northern Labrador for diamonds under contract to Diamond Fields Resources Inc. (DFR). The property was staked in early 1994 after surface samples showed high nickel and copper values. Initial exploration efforts revealed a major mineral deposit. Exploration in the claim block has been on-going since 1994 and continues to define the shape, extent and nature of the mineralization in the Voisey's Bay area.
Project Location
VBNC was originally formed to hold all of the mineral and other claims of DFR and explore for minerals with respect to those claims and seek to commercially develop the discoveries of mineralization in the Voisey's Bay area. In August 1996, Inco acquired DFR and has continued to use VBNC as the corporate entity to explore for minerals in Labrador and to develop the Project.
Inco is a Canadian corporation with operations in 23 countries. Inco is currently the largest nickel-producing company in the world and has over ninety of years experience in the mining business. Inco is also an important
producer of copper, cobalt, precious metals and other products from mining and production facilities located in eight countries.
The principal components of the Project include open pit and underground mining operations, a mill, waste disposal areas, maintenance and storage areas, an accommodations and plant services complex, a port facility, site roads, an airstrip and an electric power supply and distribution system.
VBNC and Inco plan to develop the Project to meet the future demand for nickel, copper, and cobalt. A healthy global economy, with current projected growth rates in the range of 3 to 5% will support continued growth in the demand for nickel on a worldwide basis.
Inco has embarked on an expansion program and by early in the next century plans to increase its annual nickel production capacity significantly. The production increase needs to be low-cost, in line with the needs of Inco's customers and, most importantly, will be done with a view to providing a fair return to Inco's shareholders.
One of the cornerstones of Inco's global expansion program is the nickel-copper-cobalt deposit in Voisey's Bay, Labrador. In addition to its own production, Inco also buys a considerable amount of nickel on world markets to meet its customer's needs. For Inco to remain the world's leading nickel producer, in an expanding market, it must increase its own production and rely less on outside producers. The acquisition of the mineral deposit in Voisey's Bay in 1996 was a major step toward achieving this objective.
For the people of Newfoundland and Labrador, the Project will result in increased employment and training opportunities and associated wages and benefits. It will also contribute to a growth in business opportunities arising from the increased demand for goods and services. An increase in the business base
in the Province, coupled with a more highly-trained workforce, should ultimately help to attract new investment into the Province.
The Environmental Impact Statement is part of the environmental assessment process established for a project by the federal and provincial governments. Under the environmental assessment process, a company interested in establishing a project, such as the Project, describes the surrounding environment and the proposed development. Impacts are then predicted and mitigation plans are developed.
A Memorandum of Understanding (MOU), signed by the Federal and Provincial governments, the Innu Nation and Labrador Inuit Association (LIA), describes the process to be followed for the environmental assessment of the Project at Voisey's Bay. The EIS for the Project will be reviewed by an independent panel. The Panel has prepared guidelines for VBNC to follow in the preparation of the EIS.
VBNC has undertaken extensive exploration, analysis and planning. This work was used to prepare an EIS which details the Project, the nature of potential impacts, and methods that will be used to mitigate potential impacts.
A detailed description of the physical, biological and socioeconomic environment surrounding the Project has been prepared after an extensive baseline study program. These studies provide the information identified in guidelines issued by the Panel and provide supporting information on the existing environmental conditions at and in the vicinity of the Project. The environmental baseline studies enable VBNC to predict the effect of the Project and to develop mitigation plans to protect the environment.
This Summary and the three primary volumes of the EIS present the results of three years of intensive sampling and exploration, comprehensive environmental baseline work, and community consultation. In addition to this Summary (Volume 1), the EIS is composed of:
Volume 2 which describes the Project, the existing environment and the methods used to undertake the environmental assessment;
Volume 3 which describes the existing environment and the potential environmental effects of the Project on physical and biological features; and
Volume 4 which describes the socioeconomic environment and the potential effects of the Project on adjacent communities and the people of those communities.
VBNC is committed to the principle of sustainable development during all phases of development and operations of the Project. Sustainable development is a practice which requires balancing the need for economic activity with good stewardship in the protection of human health and the natural environment.
Mining can contribute to sustainable development in a number of ways. Mining creates new prosperity. It does this by developing resources that were not previously used and by creating products needed for other kinds of development. The economic activity created by mining activities can, when used effectively, be a springboard for other kinds of development which may, in turn be sustainable as a direct result of the economic opportunities created by mining.
VBNC will extract and process minerals efficiently so as to reduce adverse environmental effects and produce economic benefits. The needs and values of other resource users will be respected throughout the development and operation of the Project.
VBNC has integrated the concept of biodiversity into its planning for the Project and has applied, where applicable, the precautionary principle. VBNC will meet, and where it is economically and technically feasible, seek to exceed Provincial and Federal regulations by applying technically proven and economically feasible protective measures throughout each part of the Project.
An environmental management system has been developed as an integral part of the Project. The philosophy which underlies the environmental management system is a commitment to reduce and mitigate any potentially adverse effect of its operations on its employees, residents of Labrador and the natural environment.
VBNC has adopted a set of employment and business principles which will guide it through the planning, construction, operations and decommissioning phases of the Project. The philosophy underlying those principles is a commitment to seek, subject to appropriate standards and criteria, to maximize benefits which accrue to Newfoundland and Labrador in terms of direct employment and procurement expenditures. VBNC is committed, where possible, to hiring employees from communities adjacent to the Project. An integral part of this commitment is a set of initiatives aimed at encouraging the participation of the Labrador Innu and Inuit in VBNC's activities in Labrador.
VBNC is currently negotiating separate Impacts and Benefits Agreements (IBAs) with the Innu Nation and LIA. From the outset of the IBA negotiations, VBNC has stated that the Project will be developed in a manner which respects the Labrador Innu and Inuit and provides benefits to nearby communities, while addressing environmental and social concerns.
The residents of Labrador's North Coast are concerned that they have little experience with the mining industry. VBNC recognizes that special training programs for the Labrador Innu and Inuit will be required. To that end VBNC has been working with LIA, the Innu Nation and the Federal and Provincial governments to establish programs which will address the training needs of the Labrador Innu and Inuit to enhance their employment opportunities.
Special opportunities, subject to appropriate standards and criteria, will be made available for Labrador Innu and Inuit businesses to provide goods and services to the Project. The IBAs will provide opportunities for Labrador Innu and Inuit communities to participate in the Project and will play a key role in establishing the foundation for a lasting and positive relationship between them and VBNC .
As a good corporate citizen, VBNC has made a positive contribution to Newfoundland and Labrador and its record of community involvement clearly demonstrates its commitment to the Province. VBNC has supported health, arts, culture and education initiatives in Newfoundland and Labrador.
Key Project Events and Communications Activities
Since 1995, VBNC has engaged in extensive communications and community consultative efforts with all stakeholders in Newfoundland and Labrador. A broad-based communications program has provided information about the Project to schools, environmental groups, women's organizations, town councils, business groups and the general public.
An important focus of VBNC's communications effort has been with schools, particularly in North Coast communities. VBNC's objective has been to inform students of job opportunities and career paths in the mining industry, and to reinforce the need to continue their education in order to qualify for employment with VBNC and other companies involved in the development of the Project.
VBNC has established a toll free telephone number, advertised widely throughout the Province, and set up a response system aimed at answering questions about the Project. VBNC has also developed an employee communications program to keep its own employees aware of developments in the Project.
VBNC is continuing with its consultation initiatives to provide all stakeholders with accurate and timely information on the Project. VBNC will continue to consult with LIA, the Innu Nation, governments, and interest groups and continue its communications efforts to provide timely information on the Project.
VBNC currently estimates that there will be up to 150 million tonnes of mineral resource developed as part of the Project. Based on current knowledge of the mineral resources at Voisey's Bay, three primary mineralized areas will be developed: the Ovoid; Eastern Deeps; and the Western Extension, including the Reid Brook zone. A summary of the areas or zones or sections discovered to date are summarized as follows:
Reserves and Resources
(as of October 1997)
These zones have different characteristics and require different mining methods. The Ovoid deposit is located near the surface which allows it to be mined from the surface. Eastern Deeps and the Western Extension, however, lie well below the surface thus requiring the use of underground mining methods.
The ore to be extracted from the open pit and underground mines will be processed into concentrates at the mill. The main components of the Project are as follows:
Site Roads
At full capacity, the Project will include about 47 km of gravel roads that will connect the open pit and underground mining areas, the mill, port, airstrip, and waste disposal areas.
Port Facility
At Edwards Cove in Anaktalak Bay, there will be a dock, a building for storing concentrate, and equipment for loading the concentrate onto arriving ships. Most supplies for the Project will arrive at Edwards Cove by ship.
Airstrip
The Project will be a fly-in/fly-out operation. A permanent airstrip will be constructed to allow workers and supplies to be flown in and out of the Project.
Accommodations Complex
While at site, workers will live in an accommodations complex. The complex will have individual rooms, cafeterias, and facilities for recreation, leisure and medical support. During the open pit operation the accommodation complex will be able to house up to 350 workers. The accommodations complex will be expanded to house the additional workers needed to support underground mining operations.
Other Components
The Project will also include a facility to treat sewage, a drinking water supply, and a diesel generating plant to supply power. Warehouses, maintenance and office facilities will also be constructed.
Mine Rock and Overburden Storage Areas
Open pit mining first involves removing the surface material that covers the deposit. This material will be stored and may be used later in the Project to help return disturbed areas to their natural state. During mining operations, some of the waste rock taken from the open pit will be stored on land. Mineralized mine rock which contain sulphides will be stored under water in Headwater Pond to prevent acid generation.
Tailings Disposal Areas
Tailings produced from processing ore mined in the open pit will be deposited in Headwater Pond to prevent acid generation. When underground mining begins, tailings will also be deposited in a second under water storage area (the North Tailings Basin) located north of Headwater Pond. To ensure that the tailings remain within these areas, earthen dams will be built.
Mill
At this facility, the ore will be processed and separated into mineral concentrates and tailings. The mill will be designed to operate at a rate of 20,000 tonnes of ore per day.
The mining practices which VBNC will use are not new to the mining industry. All aspects of the mining operation proposed for the Project have been used safely in Canada and around the world. At full capacity, the Project will operate year-round and produce 20,000 tonnes of ore per day. There will be two phases of the mining operation: the open pit mining phase and the underground mining phase.
Exploration has to date confirmed that the Ovoid contains about 32 million tonnes of ore. This ore contains nickel, copper and cobalt. The Ovoid will be mined at a rate of 20,000 tonnes per day. The open pit will be approximately 500 meters wide, 1 km long, and 125 meters deep.
Once the overburden is removed and the orebody is exposed, the ore and rock will be drilled and explosives will be used to break the rock. Waste rock will be separated from the ore and trucked to the appropriate area. Trucks will be used to transport the ore to a crusher at the mill.
During its mining or after the Ovoid has been mined, the two underground deposits currently identified (Eastern Deeps and Western Extension) will be mined using underground mining methods. Shafts will be developed to reach the ore bodies. Once the mines are in production, the ore will be drilled and blasted, crushed, transported to surface, and then trucked to the mill for processing.
The mining plan for the underground mine is not completed because more information is needed before detailed planning can commence. This information will be obtained through underground exploration.
The ore from the mines will be trucked to the mill and crushed into smaller pieces. The crushed ore will then be ground into small particles and mixed with water. Chemicals will be added which cause the nickel and copper minerals to stick to the air bubbles and float away from the host rock.
The minerals will be separated, filtered and, dried forming a product known as "concentrate". Two kinds of mineral concentrate will be produced - nickel concentrate and copper concentrate. The concentrates will be transported by trucks to the port facility where they will be stored until they can be loaded on a ship.
The mill will produce approximately 4,000 tonnes of nickel concentrate and 1,000 tonnes of copper concentrate a day, during the open pit mining stage.
The mine rock removed during mining operations which does not have the potential to generate acid will be deposited in areas near the mine site and will be reused. However, rock which can generate acid will be deposited under water to prevent acid generation. This will be done at Headwater Pond which is located about 8.5 kilometers east of the main plant complex for the Project.
The waste material that remains after the concentrate has been created at the mill is known as "tailings". Tailings will be piped to an area where they can be safely deposited under water. Tailings are commonly placed underwater to inhibit acid generation and leaching of metals. A number of dams will be built to contain the tailings within the tailings pond.
Typical Cross Section of a Perimeter Dam
Approximately 15,000 tonnes of tailings will be produced daily and deposited in Headwater Pond. A second tailings basin to be used later (the North Tailings Basin) is a pond which is 10 km north-east of the Project's main plant complex.
Some residual water from the milling process will be reclaimed and recycled. Any excess water will be treated to meet environmental standards and then discharged at Edward's Cove.
Approximately 3,600 person-years of direct employment will be required during the construction phase, with a rotational construction schedule ranging from two to five weeks. Temporary housing for construction workers will be standard trailer-style camps. During the construction phase of the Project, most of the materials and equipment will be moved to the Project site by ship.
The Project will require a workforce of between roughly 420 and 1400 persons at different stages of the Project's estimated 25-year operational life. A rotating work schedule of two weeks on and two weeks off is planned.
During the operations phase, all employees will be transported to and from the Project area by air. VBNC will provide transportation to the Project area from the six communities on the North Coast of Labrador, as well as Happy Valley-Goose Bay, Labrador West and other locations as deemed necessary by VBNC.
Air Distance (km)
Concentrate produced at the Project will be transported by ship. Storage facilities capable of containing up to 90 days of nickel concentrate and 180 days of copper concentrate production will be constructed at the port facility in Edwards Cove. The majority of the supplies required to operate the Project will be transported to the Project area by ship.
Throughout all phases of the Project, VBNC will plan and conduct operations in a manner designed to eventually return the site to a safe and environmentally stable condition.
Progressive reclamation activities such as preparing waste rock slopes for vegetation once an area has been stabilized will begin soon after the start of mining operations. When the Project ceases operations and closes, the entire site will be decommissioned. Decommissioning involves removing all structures, burying all foundations and contouring the land. Water quality and water flow patterns will be restored. Re-vegetation will be completed and, where appropriate, fish re-stocking will occur.
Ongoing research and monitoring will define the methods that will be used and determine the extent to which VBNC can address the objective of restoring, through appropriate reclamation efforts, the land to its pre-development state. The Project will be developed and decommissioned with sensitivity to the natural and human environment, using accepted standards in engineering, environmental management, and social responsibility. VBNC will comply with all laws and agreements governing the reclamation, decommissioning and closure of the Project.
Archaeologists believe that Labrador has been populated for roughly 8,000 years. Historically, the Inuit population occupied a large region of Labrador, primarily along the coast, on the inner islands and bays. The Innu traditionally lived and hunted throughout the southern and central parts of the Ungava peninsula extending as far north as the Fraser River area, west of Nain.
Modern day prospectors have been exploring Labrador's natural resources for over a century and in 1996 about $830 million was contributed to the provincial economy as a result of mining activity.
Since the 15th century, when Old World discoverers set their sails westward, stories have been told and recorded about the bountiful land in the North Atlantic. An exuberant fishery developed, first on the island and then along the Labrador Coast. In the mid 1700s, when details about life along the coast began to be recorded by livyers, stationers and missionaries, there were several small communities of semi-nomadic aboriginal peoples and newly emigrated settlers. The fishery fed those who stayed and became a large export product - valuable enough to those who controlled it to often place the region at the center of political dispute.
Lives revolving around fishing and hunting continued to characterize settlement in Labrador until the mid twentieth century. Iron ore deposits were first noted in Western Labrador in 1870 and were mapped by the Geological Survey of Canada in the 1890s. In 1949, the year Newfoundland joined Canada, the Iron Ore Company of Canada (IOC) was formed and construction of infrastructure to develop the mining potential of the area began.
Existing technology and the rough state of the terrain made the going slow, and it took six years to develop a railroad and begin mining. As the operation grew, a town site was developed and named Labrador City in 1961. Concurrently, another group began developing the Wabush Lake ore deposits and within a couple of years, Wabush also became a mining town. Since the mid 1960's these centers have made a major contribution to employment, provincial tax revenue and cultural life in Labrador.
While not on the same scale, the mining of dimension stone has become an important opportunity for the Inuit of Labrador to develop and control their own economic destiny, the anthrosite (Labradorite) quarry which is located near Nain at Ten Mile Bay is a success story for Aboriginal participation in the mining industry.
Today, Labrador is home to roughly 30,000 people, two-thirds of whom reside in major centers in the interior, with the remaining living in smaller communities along the coast. A large portion of the residents of the six North Coast communities belong to either the Labrador Inuit Association or the Innu Nation.
The Innu Nation, whose members are limited to the Innu of Labrador, includes approximately 1,500 people. They reside in two communities, Sheshatshui in Upper Lake Melville and Utshimassits on Iluikoyak Island, south of Voisey's Bay. The Mushuau Innu residing in Utshimassits are currently in the process of relocating their community west to Natuashish on the mainland near Sango Pond.
The Labrador Inuit represent the most southerly expansion of Inuit culture which occupies the Arctic and parts of the sub-Arctic; from Alaska east across northern Canada, Greenland and the Arctic edges of the former Soviet Union. With a membership of about 5,200, the Labrador Inuit Association, represents both Inuit and 'Kablunangajuit' - an Inuktitut word for the people of Northern Labrador who formerly called themselves "Settlers".
Most of the Kablunangajuit are of mixed Inuit-white ancestry. These are people whose European ancestors came to the area, mostly in the 1,800's, who married local women and settled down as trappers, hunters and fishers. The Kablunangajuit were much less nomadic than the Inuit, and settled as family groupings in the larger, sheltered bays, chiefly to the south of Nain.
About half of the members of LIA live on the North Coast of Labrador in five communities (Rigolet, Makkovik, Postville, Hopedale and Nain) and the rest live in the Upper Lake Melville area.
The Upper Lake Melville region consists of the communities of Happy Valley-Goose Bay, Sheshatshiu, North West River and Mud Lake. The largest of these, Happy Valley-Goose Bay, was begun when American and Canadian surveyors chose the area as the location for a key air base. Originally built in the early 1940's to facilitate the transfer of aircraft and supplies to Europe during World War II, American operations continued until 1990. With the passage of time the strategic defence value of the air base declined and today its primary function is as a low altitude flight training centre for various NATO member air forces. The civilian community itself has grown into the primary service and administrative centre for the entire north coast.
The initial air base construction brought permanent change to Central and Northern Labrador since it represented the first major development of infrastructure in Labrador and broadly introduced for the first time a wage/labour economy. This offered a more dependable means of income than the traditional subsistence/trapping economy, and Labradorians from many coastal communities moved to the area to take advantage of this new opportunity.
Prior to the development of the air base, Central Labrador's primary economic activity had been trapping and a limited forest industry. Since the middle of the eighteenth century various trading firms had operated in the area, most notably the Hudson Bay Company at North West River. This community was later chosen as the northern headquarters for the International Grenfell Association, and became a center for agriculture, education and health care.
A favoured stopping point for the nomadic Innu, North West River had long offered them a trading post and health care opportunities, but by the 1950s various pressures were acting upon the Innu to cause them to begin spending a greater part of the year in the town. Endemic tuberculosis, government insistence on school attendance by children, and the construction by government of new housing, were all factors that led to the eventual settlement of the Innu on the south side of North West River in what later became the community of Sheshatshiu.
Of equal significance were declining fur prices and the counter-balancing introduction of income support brought by Newfoundland's entry into Canada. In practice the introduction of family allowance, welfare, and old age pension initiatives were a further inducement to the Innu to remain in the community.
Labrador's North Coast population is located in the primarily Inuit communities of Nain, Hopedale, Makkovik, Postville and Rigolet, and the Innu community of Utshimassits. The latter has been a settled community only since the 1950s and since it is similar to Sheshatshiu it represents a significantly altered way of life for the Innu people from just a generation ago. Recently, dissatisfaction with the island location of the community and the available resources has led to a government-funded relocation program. This will see the construction of a new community at nearby Natuashish. The other North Coast communities are older and resulted from the consolidation of the nomadic Inuit into settled communities by Moravian Missionaries during
the eighteenth and nineteenth centuries.
The Inuit of Labrador are direct descendants of the Thule people who, a thousand years ago, were spread throughout much of the world's arctic region, and who probably arrived in Labrador during the fifteenth century. They moved between the edge of the ice and coastal islands in spring and early summer, and hunted seals and whales and collected migratory bird's eggs. In the late summer and early fall they moved to the interior to hunt caribou for meat and hides. The Inuit would spend the late fall and winter months in sod house settlements near the shore where seals and walrus could be hunted.
The opportunity for a charr and salmon fishery at coastal locations during the summer also made them attractive sites for the Moravian Missionaries to establish contact with the Inuit. From their first mission, established at Nain in 1771, the Moravians spread their operations the length of the North Coast until, at the end of the nineteenth century, there were more than half a dozen missions operating. Although land grants to the Moravians precluded direct competition from southern traders in the communities, growing interest in European goods by the Inuit eventually led to expanded trade operations by the Church. In this way, the need for capital to purchase goods grew and the Inuit moved away from the traditional hunt, travel and gather pattern to a "gather and sell" way of life. Further, competition between the Moravians and the Hudson Bay Company placed an increasing emphasis on the fur trade. This again significantly affected the Inuit way of life by tying income to the fluctuating price of fur.
During the early part of this century, the Voisey's Bay area became important as a trading location and the Moravians established a community/missionary post at Zoar on the south side of Voisey's Bay. While short lived, this small community saw considerable interaction with the Innu and is a burial site for several individuals who succumbed to starvation and disease. Today, the Hudson Bay Company no longer has a presence in coastal Labrador and the power of the church is greatly diminished, although ministries are still operating in three of the Inuit communities.
With the entry of Newfoundland into Confederation an increasing number of southerners came north as nurses, teachers, government employees, and RCMP officers. The provincial government assumed responsibility for the operation of stores in the permanent communities and encouraged participation in the wage/labour market. Gradually a familiarity with government bureaucracy and politics, and an increasingly well-educated Inuit population gave rise to LIA, and other similar aboriginal organizations, dedicated to self-determination.
Labrador is located along the northeastern coast of Canada, south of Baffin Island and north and west of the Island of Newfoundland. The boundaries are defined by the Quebec border in the south and west, and by the Labrador Sea in the east. The land area of Labrador is three-quarters of the total land mass of the Province of Newfoundland. The physical landscape of Labrador consists primarily of Precambrian bedrock of the Canadian Shield. This bedrock is dated at nearly two billion years old, possibly four billion years old in some locations.
Eighteen thousand years ago, most of Labrador was covered by a continental ice cap. The movement of these glaciers rounded mountain tops, cut deep fjords along river valleys, and gouged numerous depressions. These depressions have since been filled with water, creating the lakes and ponds that dominate the landscape. The glaciers began to retreat around 10,000 years ago, causing the land to rebound from under the tremendous weight of the ice. This process has continued, resulting in raised marine features in coastal areas. Water from melting glaciers deposited layers of sand and gravel across the landscape in coastal areas and formed broad plateaus, eskers, and deltas interspersed with glacially-deposited morraine. Today's rivers, as they flow toward the sea, continue to erode channels through layers of these deposits.
Project Region
The post-glacial landscape of Labrador is not uniform. Northern Labrador is presently characterized by the treeless Kigalapait, Kaumajet and Torngat Mountains which rise to elevations over 1,700 m above sea level and contain the highest peaks in North America east of the Rocky Mountains. Central Labrador is a complex archipelago of striking headlands, deeply incised fjords and U-shaped valleys which extend deep into the interior. The interior of Central Labrador is dominated by a large, relatively flat plateau of lichen-dominated barrens that extends westward to the watershed boundary at the Quebec-Labrador border. The Mealy Mountains and a number of plateaus combine to form the more moderate, rolling landscape typical of southern Labrador.
Northern Labrador represents a transition zone between Arctic and sub-Arctic climates. The climate near the coast of Northern Labrador brings intense low pressure weather systems in the fall and winter seasons when gale to storm-force winds and heavy snow are common along the coast. Winds tend to be more moderate in summer. In general, the occurrences of fog, gales and precipitation decrease with distance from the coast, and the topographic influences cause local variations in climate.
The coldest months are January and February with mean daily temperatures of -20°C to -23°C. The warmest months are July and August which have mean daily temperatures in the range of +8°C to +14°C. Extreme temperatures range between -40°C and +32°C. Temperatures on the coast are modified by marine influences and are not as extreme as those found on the inland plateau. Snow and ice can persist well into spring and summer. North facing slopes can hold snow through much of the year and intermittent permafrost is a common feature where soil depths and thermal conditions are suitable.
The Labrador Current also influences the climate on the North Coast, primarily in the summer when there is no sea-ice cover. The current is a cold (-1.7°C to 3.0°C), southward flow driven by water flowing out of Hudson Strait. The temperature and salinity characteristics of the Labrador Current influence both the climate and the biological constituents of the offshore and inshore areas of Labrador. These create the conditions of both Arctic and boreal life.
The retreat of the glaciers which ended 6,000 to 8,000 years ago was a key factor in shaping the existing landscape. In biological terms, this is a relatively brief period, during which plant communities became established and, as a result, many species were able to expand their range northward. The terrestrial, freshwater and marine ecosystems that subsequently developed are the result of geography and climatic conditions, and connected in ways that reflect the character of the landscape as well as the interdependence of plant and animal species.
Present day terrestrial ecosystems in Labrador support a variety of wildlife species. One of the most important is caribou. The George River Caribou Herd ranges across the Ungava Peninsula and is the largest herd in North America. Other large mammals in the region include moose, black bear, and wolf. The terrestrial ecosystem provides habitat for furbearers and small mammals, such as marten, mink, snowshoe hare, Arctic hare, ermine, porcupine, red fox, lynx, beaver, otter, northern bog lemming, red-backed vole, rock vole, and red squirrel.
Labrador also hosts a number of bird species typical of boreal forest and subarctic ecosystems such as willow and rock ptarmigan, spruce grouse, three-toed woodpecker, and Canada jay. Birds of prey include the golden eagle, bald eagle, osprey, northern hawk owl, and peregrine falcon.
Throughout Labrador, the extensive network of rivers, streams, ponds and lakes provide habitat for a variety of aquatic life. These watersheds also provide important spawning and nursery habitat for fish, including brook and lake trout, Atlantic salmon and Arctic charr. Although waterfowl densities are low in comparison with major North American flyways, the amount of wetland provides significant breeding habitat for Canada goose, American black duck, green-winged teal, common goldeneye, harlequin duck, and red-breasted merganser.
The marine waters of coastal Labrador contain cod, Atlantic salmon, Arctic charr, shrimp and scallop, which attract hundreds of thousands of marine-related birds each year, including eider and mallard ducks, and Canada goose. Several species of gulls are also present.
Large numbers of marine mammals are seasonally present in marine waters, including the minke whale, harp, hooded, harbour, gray, ringed and bearded seal, and Atlantic white-sided and white-beaked dolphin, as well as the harbour porpoise. Although fewer in number, humpback, narwhal, beluga and killer whales, walrus and polar bear are also found in the region.
The Provincial Economy
As many studies over the years have confirmed, the economy of Newfoundland and Labrador is characterized by high unemployment rates, a traditional dependence on primary resource production and heavy reliance on federal transfer payments. In the 1980s and 1990s, income from both the resource sector (particularly the fishery) and from federal contributions to current account revenues declined and the Provincial public sector debt grew. The Newfoundland and Labrador economy is the weakest of all Canadian provinces.
Since 1993 the Province's population has declined each year, and in the past two years the province did not experience overall economic growth. Data compiled by the Provincial government shows that there have been decreases in personal disposable income, decreases in employment, increases in the Consumer Price Index (CPI) and increases in unemployment.
The two industrial sectors that have shown positive signs during the period are mining and oil and gas. Growth in mining activity has been driven by iron ore production at Labrador City and Wabush, increased gold shipments, and mineral exploration in Labrador. The Hibernia project is beginning its production phase and the Terra Nova Project is scheduled to begin development drilling and construction of its production platform in 1998. Several other offshore oil developments also hold promise and could continue to build a sustainable industry.
The Labrador Economy
A significant amount of economic activity in Labrador is tied to the development of natural resources, specifically the iron ore mines in Labrador West, and the Churchill Falls hydro-electric facility. The Canadian Forces Base - Goose Bay is also another important contributor to the Labrador economy. The fishery had an importance that may yet return if cod stocks recover and if under-utilized fisheries resources are developed.
The population of Labrador is a relatively small portion of the Province's total, and differs dramatically in employment levels. Residents of Labrador's three main centers (Labrador City/Wabush, Happy Valley-Goose Bay, and Churchill Falls) experience relatively high average family income levels due to a high participation rate in the work force and local economy. The high participation rate indicates that most of the adult population in these areas is working; when grouped with employment rates for the remainder of the Province, it inflates the Provincial average.
The North Coast Economy
Much of the population along Labrador's North Coast is dependent upon some form of transfer payment from various levels of government. A majority of families in most communities receive social assistance from the Provincial government. In addition, the Federal government provides funding for aboriginal groups' cultural and communications programs.
Families engaged in a traditional lifestyle augment their income through hunting, trapping, fishing, and gathering eggs and an assortment of berries. The "country food" harvested by these means includes caribou, seal, migratory birds, arctic hare, porcupine, black bear, Arctic charr, salmon, brook trout and other fish.
Over the past two decades, country food has contributed up to 80% of the meat consumption in some communities. However, in recent times, its usage has diminished, due to a variety of reasons. The concurrence of technological advances in hunting methods, and the decline in some wildlife populations have affected hunting patterns - hunters must travel more widely to catch their prey, and more cash is needed to support snowmobiles and to buy hunting equipment.
Among the most pervasive concerns along Labrador's North Coast are the lack of employment opportunities and the social issues arising out of economic dependence. Both LIA and the Innu Nation have established economic development initiatives to encourage small businesses that are compatible with their traditional values and lifestyle. The relocation project for Utshmassits has produced virtually full, albeit seasonal, employment in that community. Such efforts are making an important contribution to resolving some of the economic and social challenges in North Coast communities. However, more is required to ease the unemployment problems for the vast majority of the area's population.
Since the announcement of the discovery of mineral resources at Voisey's Bay, VBNC has consulted extensively with many individuals and organizations to identify issues and concerns about possible effects of the Project. Additionally, LIA, the Innu Nation and the Panel have employed various methods to identify issues and concerns. Together, all of these efforts have allowed VBNC to develop a comprehensive understanding of the issues to be addressed in the EIS. In general terms, concerns about potential effects of the Project can be categorized as: effects on the natural environment; effects on people; and effects on communities.
Project effects flow from the physical activity of developing a mining and milling operation and the changes which this activity will make to the land, vegetation, wildlife and fish. VBNC's approach is to try to reduce the extent of the physical disturbance expected to be created by the Project. Where choices could be made about locating facilities required to support the operation, VBNC has chosen locations which would protect Voisey's Bay and its watershed area. The discharges and wastes which contain potential contaminants will be controlled using proven methods and technologies.
The Project will generate significant employment and business opportunities. VBNC has developed policies to see that benefits flow to communities which are adjacent to the Project area. Although there may be some negative effects from increasing the wage-based economy of adjacent communities, VBNC will identify measures which will reduce those effects.
The physical and biological effects and the socioeconomic effects of the Project are inter-related and complex. Some Project effects are difficult to foresee, and, accordingly, VBNC is committed to implementing a comprehensive monitoring program and to make adjustments, as needed, which will see that anticipated benefits are realized and negative effects are addressed.
The setting for the Project contains a number of natural features which help reduce the extent of the physical disturbance expected to be created by the Project. The ore bodies are located close to tidewater and within a relatively small watershed so that natural run-off is easily controlled.
Ponds in the area are deep and steep-walled and provide excellent containers for materials which need to be deposited under water. Although some disturbance of the natural environment is inevitable, VBNC's engineering and environmental planning will reduce the disturbances. In that way, reclamation and decommissioning will be easier to accomplish.
Plants and vegetation are important components of the natural environment which provide food and shelter for wildlife, help control erosion and drainage, and play important roles in various ecological processes such as the cycling of nitrogen, phosphorous and water. People rely on trees to provide firewood, building materials and medicine; berries are an important source of food.
Less than 2% of the vegetation included within the VBNC Claim Block will be affected, mostly in forested habitats. Plants and vegetation will be affected during the construction and operations phases of the Project. However, the relatively small Project footprint will limit the amount of clearing required for access roads and other infrastructure. The majority of the effect on vegetation will occur during the construction phase, although there will be some effect at mineralized mine rock storage areas and tailings disposal sites as material is deposited over the life of the Project.
VBNC has developed the physical layout of the Project to reduce the effects on vegetation. Careful project planning has resulted in facilities being located away from sensitive areas such
as wetlands. Once the construction phase is completed, some sites will be restored. When the Project finally ceases operations, VBNC will re-vegetate affected areas by redistributing organic material and seeding or planting local species.
Several species of wildlife were identified as requiring particular attention during the environmental assessment. These species were selected according to views expressed by hunters, the general public, federal and provincial resource agencies, and the scientists involved with the environmental baseline study program.
Caribou
The George River Caribou Herd was identified as the most important wildlife species. Caribou are an important component of the diet of most residents, and therefore form an integral part of the social structure and culture of the Labrador Innu and Inuit. The George River Caribou Herd, estimated at 700,000 to 900,000 animals in 1993, ranges widely and often unpredictably over a 700,000 sq km range which extends from Hudson Bay in the west to the Labrador coast in the east. Important habitat requirements for this species include availability of forage during all seasons, relatively predator-free calving areas, and insect relief habitats during summer. The continuous movements of this large herd reflect these requirements and serve to improve the herd's chances of reproduction and survival.
Only a small portion of the George River Caribou Herd (at most 1%) can be found in the Project area and mainly during the winter months. VBNC has undertaken extensive research to understand the habitat used by caribou when they are present in the Project area. The research included 22 regional aerial surveys. It examined characteristics of wintering habitat, corridors to the calving areas to the north-west, and the presence/absence of caribou at other times of the year. For caribou which may occupy the VBNC Claim Block during winter, the Project will cause minor loss of foraging and resting habitat, and limited disruption in localized movement patterns. The extensive amount of adjacent habitat will provide an alternative area for foraging and resting should caribou be affected by Project construction or operations. In years when caribou over-winter near the coast, vehicle traffic and caribou movement along identified trails will be carefully monitored to allow caribou movement through the Project area during the spring migration to calving grounds. All vehicles operating in the Project area will be required to adhere to speed limits and operating procedures will be designed to prevent the disturbance of animals which are on or crossing site roads.
Black Bear
Black bears are also an important local wildlife resource, particularly from the perspective of their spiritual and cultural significance to the Labrador Innu. Black bears occupy a wide variety of habitat types and feed on both plants and animals. As part of VBNC's research, radio and state-of-the-art tracking technology were used to identify daily movements and habitat of black bears. Using this information, several den sites were identified in the vicinity of the Reid Brook valley and it was confirmed that the area contains a relatively high population density of black bears.
With an estimated population of over 200 bears in the 400 km2 around the Project area, and the general tolerance which bears have of human activities, it is not surprising that bears have been attracted to food odors and kitchen wastes at VBNC's exploration camps. To reduce the number of contacts which black bears have with the exploration camps, VBNC consulted with the Labrador Innu and others knowledgeable in bear behaviour. VBNC subsequently developed management procedures which have resulted in a decline in the number of encounters with bears.
The possibility exists that some bears may be disturbed from their dens during periods of blasting or other loud activities, particularly during the Project's construction phase. This is predicted to result in a shift of individual home range boundaries and up to five dens may be abandoned or used less frequently. These effects will produce a minor reduction in population density within the Project area.
Black Bear Den Locations
With increased infrastructure, secure storage and handling of food and kitchen waste, interaction with black bears is expected to decline further as the Project proceeds.
Birds
Waterfowl and seabirds, and species such as Harlequin duck and peregrine falcon were examined closely in the environmental baseline study program. Although routine operations will probably have small measurable effects on birds, the potential effects will be insufficient to cause the population to change noticeably. The Project will displace some habitat used mainly by songbirds. Minor disturbances will also occur to waterfowl in the "Gooselands" area at Voisey's Bay and a minor loss of habitat for Harlequin ducks will result from the eventual development of the North Tailings Basin.
Harlequin duck habitat is abundant in the Project area and surveys have found an encouraging number of family groupings in the larger surrounding watersheds. The present distribution of birds of prey, including species such as golden eagle, will not be affected by the Project.
Waterfowl Map
Accidental events such as a forest fire or oil spill present the only major concern which could cause a loss of birds or serious habitat loss. VBNC has designed contingency plans and mitigation measures to reduce the potential and extent of any such events.
Water and Fish
The Project area contains several small watersheds with Reid Brook being the largest. Groundwater flows generally follow watershed boundaries and drainage is either through overburden material (where it occurs) or through cracks in the bedrock. Total precipitation in the Project area is about 800 mm per year and most of the run-off occurs during the spring melt. Water quality is pristine except for occasional indications of metals, and the natural productivity of the water is low.
The watersheds consist of ponds, streams and bogs (wetlands). Almost all of the ponds are fish habitat. However, only the larger ponds have resident species which reach a size that can be harvested. Sea-run species of Arctic charr and brook trout have limited access to the watersheds because of natural obstructions and low surface flows. Other species present in the Project area include whitefish, lake trout, suckers and stickleback.
Water Sample Locations
Reid Brook contains the only appreciable sea-run of Arctic charr in the Project area and VBNC's counting surveys show that the run ranges from 1,000 to 2,000 fish. Radio tagging which allows tracking of individual movements showed that a portion of the spawning run leaves Reid Brook and enters Ikadlivik Brook, a neighbouring stream to the west. Thus Reid Brook does not contain an isolated population or a discrete gene pool of Arctic charr; rather they are part of the larger population which uses several rivers in the area. Radio tagging also indicated that the Arctic charr run is confined to the main stem of Reid Brook and does not enter Camp Brook or the other tributaries which drain the area around the Ovoid.
VBNC's water management plan contains measures designed to protect freshwater fish and fish habitat. These measures include engineering design of man-made ponds to keep site drainage separate from natural water bodies, and scheduling work to avoid sensitive spawning times for trout and Arctic charr.
VBNC will negotiate with the Federal Department of Fisheries and Oceans (DFO) a habitat compensation plan for the loss of fish and fish habitat at the tailings basins and the mineralized mine rock storage basin. A compensation plan may be required to address alterations to the marine environment which stem from the development of port facilities at Edward's Cove.
While opportunities to create replacement habitat are limited, there may be alternatives such as providing passage at natural obstructions, thus increasing the productive capacity of a river by increasing the habitat available to sea-run fish. In developing its compensation plan, VBNC will discuss such possibilities with DFO and other stakeholders.
VBNC is clearly mindful of the concerns expressed by LIA and the Innu Nation regarding shipping through landfast ice. VBNC is proposing to ship through landfast ice as part of the Project. Mitigation measures will be implemented to address safety issues and lessen disruption for people traveling between communities and to hunting grounds. As part of these mitigation measures shipping during the freeze-up period (until ice reaches a safe thickness) and during the early spring (when most seal hunting occurs) will not be undertaken.
Shipping Route
These measures will also consider the potential effects which shipping may have on caribou movement and seal denning. In addition, VBNC will develop a notification and communication system to alert residents of shipping activities. Given the success realized with other winter shipping arrangements in the north, VBNC believes that the effect of winter shipping will be negligible. Indeed, winter shipping may provide an opportunity to have goods destined for Nain become a part of the vessel's inbound cargo.
The Sina
VBNC believes that these measures represent a balanced approach, recognizing the concerns expressed by LIA and the Innu Nation.
The concerns expressed about the Project by the Labrador Innu and Inuit centre on the possible disruption of the relationship between their traditional way of life and the natural environment. While the Labrador Innu and Inuit cultures are distinct and different from each other, each has noted a responsibility for the guardianship of the land, the sea, and the creatures whose lives are interconnected.
The traditional life of the Labrador Inuit follows the life patterns of the animals they harvest. The Labrador Inuit take advantage of seasonal changes, like ice formation and break-up to gain access to seals, and shift their focus to different species as seasons change and conditions permit.
Marine Mammal Map
The Labrador Innu also attach a great importance to time spent in the country. It is seen as an opportunity for cultural and spiritual renewal, away from the pressures of the community and an opportunity to harvest highly nutritious food and to reaffirm their connection with the land. They view themselves as custodians of the natural environment, and take responsibility for preserving its resources for their own cultural survival.
The renewable resource economy has experienced a number of substantial changes which have reduced both the harvest of some species, and the cash income obtained from this traditional activity. The collapse of the cod fishery in the 1960s led to increased harvesting of Arctic charr and salmon and the subsequent depletion of these fish stocks by the 1980s. The collapse of sealskin markets followed an international campaign by animal rights activists against harvesting seals. As well, the diminished availability of animals and falling fur prices has resulted in a large decline in fur trapping on the North Coast over the last 20 years.
Patterns of harvesting activity have also been affected by technological change. Although speed boats, snowmobiles and guns have become a mainstay for hunters, they are costly to buy and maintain. As a result, traditional activities have become restricted to those who can afford it.
The Labrador Innu and Inuit cultures are under pressure from many sources. There is a concern that escalating social problems in some North Coast communities flow from high levels of economic dependency. Although the subsistence economy plays an important role in their communities, it is threatened by the need for cash for items like snowmobiles, guns and boats. Similarly, external influences like television bring added pressures which culminate in a fear that the traditional way of life of the Labrador Innu and Inuit is changing.
VBNC has developed an approach to the Project which should allow the integration of traditional activities with work at the Project. A two-week- on/two-week-off work rotation schedule, coupled with provisions for appropriate leave extensions, will provide workers with the opportunity to spend periods of time on the land. Other provisions, such as having country foods available at the Project and cultural sensitivity training for all employees, should help to preserve traditional ways for the Labrador Innu and Inuit.
VBNC is acutely aware of the connection which the Labrador Innu and Inuit have to the land and how that connection defines and supports their sense of identity, value and meaning. VBNC has worked with the Labrador Innu and Inuit to gather aboriginal knowledge. This knowledge includes the life patterns of the species harvested by the Labrador Innu and Inuit and the inter-relationship of those life patterns to changes in the land, sea, and climate. When used in combination with other systems of knowledge, aboriginal knowledge can help assess Project effects and assist in planning the development of operating practices for all phases of the Project.
VBNC has funded the Innu Nation and LIA, separately, to conduct major studies which would identify issues and concerns of Labrador Innu and Inuit, and then document traditional aboriginal knowledge. The study conducted by LIA is completed and the results have been integrated into the EIS. The Innu Nation study is ongoing and it is expected that the results will be available for presentation to the Panel. The available information on Innu place names has been incorporated into the EIS.
Aboriginal peoples value historic resources for the light they shed on their cultural heritage and past use of the land. A co-operative effort between VBNC and the Labrador Innu and Inuit led to a large-scale archaeological survey being conducted in 1996. The survey included a significant training component involving 26 co-researchers who received a two-week training program in Nain and Utshimassits. This archaeological survey covered a large area around the Project and resulted in the identification of 125 archaeological sites, including one site dating to about 4,000 years ago. Four sites, each less than 100 years old, were identified within the Project footprint. VBNC proposes to salvage these sites prior to the start of the Project's construction to retrieve the information they contain and protect artifacts from any potential damage.
Historic Resources Survey Map
VBNC has implemented an Historic Resources Contingency Plan to protect any other historic sites found at the Project area.
A project the size of this Project will result in socioeconomic benefits which will be felt in varying degrees in different areas of Labrador, Newfoundland and in the rest of Canada.
Most of the concerns raised by North Coast residents about the social and economic effects of mining development relate to the effects on family and community life. There is a concern that development will bring economic and demographic change which will aggravate existing social conditions. The fears reflect the vulnerability of communities already facing serious social problems and the anxiety of dealing with an industrial development that is new to the area. While there are grounds for some concerns, a project offering hundreds of long-term, highly-paid jobs will have positive effects on family and community life in communities experiencing high levels of poverty and unemployment.
People from the North Coast who obtain employment from the Project will enjoy an increase in self-esteem and independence. This will lead to an improved outlook for many families and an increase in community pride. Because employees will be working away from their homes for about 40% of the time, some family and community life will be disrupted. Families will have to adjust to the periodic absences of family members who are working at the Project and to greater amounts of leisure time which workers will have during their time off.
The Project will cause some community stress, particularly for those who lack the skills and the education to pursue opportunities presented by the Project. However, overall the Project will provide employment options and open up opportunities for many North Coast residents. Through provisions in the IBAs, VBNC will work with LIA and the Innu Nation to identify community stress created by the Project and appropriate mitigation measures.
Although these effects will vary within Labrador, Nain and Happy Valley-Goose Bay will likely see the most change, particularly during the early years of the Project. However, once the new community of Natuashish is constructed, individuals with skills and work experience gained during the relocation of Utshimassits to Natuashish will likely pursue opportunities offered by the Project. So too will joint-venture businesses established to undertake work associated with the relocation.
Human needs in any community require a wide range of facilities and services. Some, like the number of teachers and nurses, can be expanded fairly easily, while expansions to infrastructure like roads and water and sewer systems are more difficult and require more planning. Providing community facilities and services has always been difficult in Newfoundland, where a small population is spread along thousands of miles of coastline. The problem is more pronounced in Labrador's coastal communities. Conditions are especially difficult in the North Coast.
During the issue scoping hearings, concerns were expressed about possible effects which the Project could have on community service and infrastructure, particularly in communities on the North Coast. Generally, North Coast communities have a lower level of services than other areas of Labrador and the rest of Newfoundland. These communities have small populations, few roads, and challenging environmental conditions. As well difficult social and economic circumstances in these communities place additional demands on their limited services and infrastructure. Without the Project, employment and income levels and the quality and quantity of community services and infrastructure in these communities are not expected to change significantly, although land claims settlements will provide the Labrador Innu and Inuit with the means to improve their communities.
The Project will have very few direct effects on services and infrastructure in North Coast communities. There will be some limited use of the wharf and airstrip in Nain during construction and of the airstrips in all six North Coast communities as pick-up points for workers during the construction and operation of the Project. There will be no other direct use of community services and infrastructure in these communities over the course of the Project.
The Project has the potential to indirectly affect community services and infrastructure in communities on the North Coast. Current residents will be less likely to leave their community when economic conditions improve as a result of the employment and business opportunities generated by the Project. Communities may have to provide services and infrastructure for increasing populations.
The Project is expected to create a maximum of about 28,000 direct person-years of employment within Newfoundland and Labrador and approximately $1.5 billion in direct employment income. Direct employment effects will be supplemented by the employment created in firms supplying goods and services to the Project. The extent of this indirect employment depends on the ability of firms within the Province to supply goods and services to the Project. It is estimated that indirect employment within Newfoundland and Labrador will be approximately 32,000 person-years over the life of the Project, thus increasing incomes flowing to the Province by a about $1.4 billion. When induced employment effects are included, total employment in Newfoundland and Labrador could reach about 80,000 person-years and total incomes to Newfoundland workers and businesses could be about $4.2 billion. The Project will also increase the provincial Gross Domestic Product by about $11.6 billion.
In Labrador the Project will create about 39,000 person-years of employment and about $1.9 billion in incomes to workers and businesses. Nearly 87% of the direct employment will take place within Labrador.
Direct Employment
During the operations phase employment opportunities will exist for people who may want to work either directly on the Project or with companies supplying goods and services. Of all the employment generated by the Project, underground mining operations will account for about 47%, followed by milling operation (34%), administration (7%) and exploration activities (5%).
Distribution of Operating Employment by Category
The Project will create employment throughout Labrador. Communities on the North Coast can expect to receive about 21% of the employment and income generated by the Project in Labrador, most of which will be concentrated in Nain. The Upper Lake Melville region will receive about 27% of the economic activity (the majority of which will be felt in Happy Valley-Goose Bay) and Labrador West should receive about 24%. Initiatives to complete separate Impact and Benefits Agreements with LIA and the Innu Nation should result in even employment rates for communities adjacent to the Project.
Distribution of Employment in Labrador by Region
Construction and other pre-production activities will generate employment in Newfoundland and Labrador of approximately 7,400 person-years. This consists of about 3,700 person-years of direct employment, 1,900 person-years of indirect employment and 1,800 person-years of induced employment. This level of employment will cause total incomes flowing from the Project to the Province to rise by about $355 million.
The Project's employment and income effects will increase substantially when open pit mining begins and these effects will be felt primarily in Labrador. About 21% of the direct employment required to support the open pit operation will be supplied by workers from communities on the North Coast. Another 20% of the workers will come from the Upper Lake Melville area and 18 % from Labrador West.
Direct Employment Within Labrador
Open Pit Phase
The open pit phase will generate about $1.1 billion in earned incomes within Newfoundland and Labrador and approximately 19,000 person-years of employment. Direct income from the open pit phase will be about $399 million, indirect income $314 million and $185 million of induced income will be generated.
The underground mining phase is expected to generate the biggest economic effects on the economy of Newfoundland and Labrador. During this phase of the Project, it is estimated that about 53,000 person-years of employment will be created and about $2.7 billion of income generated. On an annual basis the underground mining phase will generate approximately 3,300 person-years of employment and $169 million in income.
Total direct employment created within the Province during the underground mining phase is about 17,000 person-years, resulting in approximately $902 million in direct employment income. Indirect employment is expected to exceed direct employment during the underground mining phase. During this phase, about 23,000 indirect person-years of indirect employment and more than $1 billion in indirect incomes are anticipated. Induced employment is expected to reach 12,600 person-years.
Due to the lower degree of business activity in communities on Labrador's North Coast, business growth will be mainly based upon the re-spending of dollars generated through employment income. Nain, given its proximity to the Project, is expected to be the exception. Business effects are expected to be felt strongest in the Upper Lake Melville area due to the high number of existing businesses. During construction of the Project, business effects will be short-term in nature. The Project will have a more sustained effect on business growth and expansion. Increased business activity stemming from direct and indirect Project-related expenditures is expected to cause in-migration of businesses from outside the Upper Lake Melville area. Initiatives to complete Impact and Benefits Agreements with LIA and the Innu Nation will result in specific measures to increase the participation of adjacent communities in supplying goods and services
to the Project.
The Project will have a number of effects on employment and business activity, primarily in the Upper Lake Melville area, but potentially in Nain as well. Workers may leave existing jobs for better paying ones either with the Project or with companies providing goods and services to the Project. This will result in increased costs to existing employers for hiring and training new employees.
Over the life of the Project, the provincial treasury is estimated to receive about $1.5 billion in increased tax revenues. Direct taxes account for approximately $1.2 billion, indirect taxes are estimated at $125 million and induced tax revenue of about $130 million. The tax revenue received by the provincial treasury during the underground mining phase is approximately $797 million, about $649 million during the open pit phase, $48 million during the pre-production phase and about $2.6 million during the reclamation phase. The province will also collect approximately $170 million for items such as workers compensation premiums.
Environmental planning begins long before the first ore is extracted. From the outset of its planning for the Project, VBNC has gathered a considerable amount of valuable environmental information from residents of communities on the North Coast of Labrador, from LIA and the Innu Nation, and from a detailed analysis of the results of environmental baseline studies. VBNC has used this information to help develop an environmental management system. This system is the foundation upon which VBNC has developed policies, management decisions, technical designs, equipment selection and detailed work procedures for the Project.
VBNC has prepared an environmental, health and safety policy which outlines VBNC's commitment to environmental protection. Operating procedures will be developed which make employees responsible for conducting their duties safely and in a way that gives priority to environmental protection. The accountability for safety and environmental protection is shared among all employees, and VBNC is committed to provide the necessary technical and professional support.
Employee training and awareness is necessary for effective implementation of environmental policies and for good environmental performance. Accordingly, training programs will be developed which provide each employee with an understanding of VBNC's policies and the importance of complying with those policies and regulatory requirements. These training programs will be documented, procedure manuals will be maintained and retraining schedules will be established.
Specific environmental management plans have been developed to address matters of concern such as water and air quality. An Emergency Response Plan and an Oil Pollution Emergency Plan have been developed and are currently in use at the exploration site. Comprehensive monitoring will provide feedback on the effectiveness of plans so that any necessary modifications can be made in a timely and responsible manner.
In developing the environmental management system, VBNC has completed extensive consultations, research and analysis. VBNC's objective is to reduce contact, either directly or indirectly, between the Project and the natural environment. The size of the Project area and the number of storage and deposition areas have been minimized.
VBNC will apply operating procedures to reduce contact with wildlife. For example, wildlife contact can be reduced by controlling human behaviour such as avoiding litter, reducing odours which attract animals and scheduling activities so that they will not interfere with animals during sensitive times of the year like the spring migration of caribou.
VBNC's water usage policies will be applied to the milling operation and to tailings management. Much of the water used in the milling operation will be recycled, and all of the process water will be cleaned before it re-enters the environment. Surface drainage and ground seepage into the open pit will be pumped to a settling pond before entering the treatment plant. Tailings ponds and water treatment plants will be monitored regularly. Progressive reclamation will be completed during the operations phase so that there will be less need for reclamation after mining operations cease. A mine closure plan will ensure that the Project is properly closed and decommissioned.
Adopting a rotation work schedule during the Project will avoid the long-term consequences of establishing a new town site on the North Coast of Labrador. It will also increase the benefits of increased economic activity to communities adjacent to the Project. The rotation work schedule will also allow workers to participate in traditional activities such as hunting and fishing when they are in their home communities during their time-off.
Measures will be taken to respect and preserve the culture of employees while they are working. Policies will be developed which encourage respect of other cultures, and operating practices will be carried out such as using native languages on site signage and having traditional country foods available in cafeterias. Other policies which encourage safety, employment equity and prevent harassment will be strictly enforced.
VBNC is committed to introduce training programs so that residents of adjacent communities can develop the skills needed to qualify for and perform jobs at every level of the Project operation. Co-operation between all stakeholders involved in the Project will be required to see that appropriate mitigation measures aimed at managing the Project's socioeconomic effects are taken. VBNC is committed to assist in this endeavour by maintaining good communications with employees, suppliers, LIA, Innu Nation, residents of adjacent communities, government organizations and the general public.
VBNC is committed to developing the Project in an environmentally acceptable manner by using sound engineering and environmental practices. This Summary has outlined the principal issues associated with the Project. It has summarized the environmental effects anticipated by the Project and the actions which VBNC will take to mitigate those effects.
The EIS for the Project incorporates the results of a comprehensive environmental baseline study which helped VBNC to develop an understanding of the existing environmental conditions of the Project area, and the potential effects of the Project. VBNC has analyzed concerns about the Project which were identified through its public consultation and research program. In response to those concerns VBNC has designed the Project to prevent and mitigate significant adverse effects. VBNC has also developed an environmental management system which provides the foundation for protecting the natural environment and the livelihoods of people living in the area of the Project. Environmental management plans describe the procedures and methods which will be used to protect the environment.
VBNC recognizes the importance of Aboriginal cultures and of enhancing the socioeconomic benefits which the Project will bring to the Labrador Innu and Inuit. VBNC will continue to consult and co-operate with stakeholders so that the Project develops in a way which addresses their needs and the needs of VBNC. The application of both aboriginal knowledge and innovative technology has helped to identify environmental conditions such as the migratory patterns of the Arctic charr and other important species. Environmental protection measures will address the effects of the Project on air quality, vegetation and noise, and will reduce the potential for wildlife to be affected. Thus, wildlife which inhabit the area around the Project will not be harmed by the Project, and the Labrador Innu and Inuit will be able to maintain their traditional relationship with the land.
VBNC believes that the scope and level of detail of the information provided in the EIS is extremely thorough and more than adequately satisfies the needs of stakeholders who have an interest in the environmental assessment of the Project. By using available information, original research, engineering design and modeling, VBNC has been able to predict accurately the effects of the Project on the environment. The EIS clearly identifies the interactions which will occur between the Project, and the environment and presents all anticipated environmental effects. It also sets out, in some detail, the environmental management and protection plans which VBNC will use during the life of the Project.
Community Visits
The primary risk to the natural environment posed by the Project will occur as a result of the generation of mineralized mine rock and tailings. The best disposal method for the mineralized mine rock and tailings is one which reduces significant environmental effects. This involves converting Headwater Pond and the North Tailings Basin into underwater storage areas. This conversion will cause a loss of fish and fish habitat within these two water bodies. No other significant negative effects will result. Contaminants will not build up in the food chain, either from the discharge of effluent into the marine environment or from any seepage to the freshwater environment below Headwater Pond and the North Tailings Basin.
The construction and operation of the Project will remove some habitat. However, the implementation of VBNC's environmental protection plans should result in only a small disruption to the integrity of the natural environment. This approach to environmental management is aimed at maintaining the capacity of the renewable resources in the Voisey's Bay area so that they will continue to meet the needs of present and future generations.
When the Project eventually ceases operations, the site will be properly decommissioned and reclaimed so that the use of the Project area by others could resume. The only areas that will remain permanently mineralized waste rock storage areas. The open pit will be contoured, filled with water and become a pond.
The ponds used for tailings and waste rock deposition will remain, but their freshwater habitat will be changed because they will contain tailings and mineralized waste rock. Water in these ponds will be monitored and, if necessary, sediments will be capped to keep discharges at an acceptable quality. Overburden and non-mineralized waste rock piles will be sloped and vegetated to resemble the surrounding hills.
VBNC believes that there will be no significant adverse socioeconomic effects as a result of the Project's effect on the natural environment. While potential effects may occur from VBNC's plan to ship through landfast ice, close cooperation and communications between VBNC, governments, and North Coast communities should result in operating procedures which will make travel over landfast ice safe.
VBNC Claim Block
Other socioeconomic effects of the Project relate principally to the residents of communities on the North Coast of Labrador. The Project will create employment and economic development. In so doing, it will provide future generations with meaningful skills and business development opportunities. The communities will experience increased opportunities in terms of jobs and training. Residents working at the Project will face challenges balancing their traditional way of life and the routines associated with scheduled work demands and time away from the home. The communities will need to adapt to the effects of wage employment, increased household incomes and demands on community infrastructure and services, and the eventual effect of the Project's closure.
VBNC has designed plans to enhance benefits for those living in communities adjacent to the Project, and, conversely, to either reduce or offset the potential for negative effects. This will be accomplished through the development of preferential employment programs and through a commitment to comprehensive specialized training programs for employees.
The Project offers considerable benefits to the local, regional, and provincial economies through taxes from employment and business income. Although dramatic increases in employment and the flow of money through a community create management and planning challenges for governments, overall the Project offers significant economic benefits to the economy of Newfoundland and Labrador and Canada.
The Project is expected to generate about $1.5 billion in direct employment income and approximately $2.7 billion in indirect and induced income. This means about 28,500 direct person-years of employment and approximately 51,600 indirect and induced person-years of employment. Proceeding with the Project provides an estimated $4.2 billion in income and about 80,000 person-years of employment.
The Project will also generate long lasting socioeconomic benefits in the form of education, employment and business development opportunities to residents of North Coast communities, Labrador, and Newfoundland. Municipalities and the Provincial government will also benefit from a larger tax base which will enable additional or improved infrastructure and services. While the initial benefits will be received during the construction and operation phase of the Project, the long term legacy will be the experience and skills developed by the individuals and companies that work on the Project.
Drawing on Inco's extensive global experience and technological knowledge, VBNC has demonstrated its ability to implement sound engineering design and operating plans for the Project. The overall design of the Project demonstrates that VBNC is committed to responding, now and throughout the life of the Project, to legitimate concerns about potential effects.
VBNC is committed to responsible development. The environmental effects of the Project, the significance of those effects and applicable mitigation measures have been identified and considered. The effects can be mitigated with existing technology and knowledge. Overall, the environmental effects of the Project are more than offset by the substantial socioeconomic benefits that will accrue to the people of the North Coast of Labrador, the people of Newfoundland and Labrador, and the people of Canada. The benefits generated by the Project that are passed on to communities and governments will enrich the quality of life for present and future generations.
Photography courtesy of: Winston White, Nigel Markham, Doug Phelan, Town of Happy Valley-Goose Bay,
Inco Limited and Ad Vantage Productions.
