EnvironmentalProgress Report 2002

EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I

1.0 INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2.0 PURPOSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

3.0 OBJECTIVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

4.0 REGULATORY COMPLIANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

4.1 PERMITS, APPROVALS AND AUTHORIZATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

4.2. REGULATORY INSPECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

5.0 SUMMARY OF CONSTRUCTION ACTIVITIES FOR 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

5.1 LINEAR DEVELOPMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

5.2 EARTHWORKS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

5.3 INFRASTRUCTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

5.4 OTHER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

6.0 EXPLORATION ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

7.0 ENVIRONMENTAL MONITORING ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

8.0 MONITORING OUTCOMES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

8.1 SPILLS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

8.2 WASTE MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

8.3 LAND CLEARING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

8.4 WILDLIFE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

8.5 WATER QUALITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

8.6 DUST CONTROL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

8.7 OTHER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

8.8 HISTORIC RESOURCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

9.0 ENVIRONMENTAL PROTECTION PLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

10.0 CONCLUSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

APPENDIX A: PERMIT APPROVALS

APPENDIX B: ENVIRONMENTAL PERFORMANCE REVIEW WORKSHOP RECOMMENDATIONS

Table of Contents

he first major construction season at the Voisey’s Bay site occurred in 2002 and marked the beginning of development that will place the project into operation by 2005. Primary construction activities included the development of a 10.6 km access

road from Anaktalak Bay to the mill site north of Camp Pond, the installation of 48 culverts and two bridges for stream crossings, the construction of a temporary dock in Edward’s Cove, a temporary airstrip at the mill site, and upgrade of infrastructure and services at the construction campsite.

With an increase in construction at the site, protection of the environment was an important component of daily work activities.Environmental monitors from Voisey’s Bay Nickel Company Ltd.(VBNC), SNC-Lavalin/BAE-Newplan, IKC-Borealis, Innu Nation and LabradorInuit Association (LIA) worked closely to ensure that construction activities complied with requirements of regulatory approvals and theVBNC Environmental Protection Plan (EPP). Monitoring parameters of main concern included sediment control during stream crossings,handling of fuel and other petroleum products, land clearing and timber management, and waste handling practices.

At the end of construction in 2002 environmental monitoring outcomes were positive. Measures to control silt and runoff into streams were successful. With approximately 50 stream crossings completed and over 50 thousand truckloads of sand and rock moved, no fish or fish habitat were affected – only two instances occurred where sediment inadvertently entered a watercourse. There were tworeportable land spills in excess of 70 litres that occurred from the handling of over three hundred thousand litres of fuel and oil. Of the 700 cords of timber salvaged from land clearing there was only one instance of un-permitted tree cutting within 30 metres of a waterbody. Finally, of the 115-recorded black bear sightings, only one problem bear was trapped and relocated with the help of wildlife officials.VBNC recognizes that while environmental incidents may occur from time to time, they are viewed as opportunities to improve upon strategies for environmental protection in future development activities.

Historic resources assessment was also completed in 2002. Two sites on the east shoreline of Edward’s Cove were carefully excavated,documented and photographed by archaeologist Yves Lebreche. Assessment was conducted at a new quarry location and an area for the mill site construction camp. No additional historic resources were present in these two areas. Sub-surface testing programs wereundertaken at two sites (HcCm-16 and HcCm-17) and seven sites were marked and fenced. Detailed investigations were conducted at two sites (HcCm-14 and HcCm-15). Worker and supervisor orientations were also given in 2002 to heighten awareness of their importance and highlight a reporting procedure in the event of a discovery. A site visit with an Innu elder, her relatives and Innu Nationrepresentatives was also conducted to further investigate a possible burial location at Anaktalak Bay. A site east of the Anaktalak Baycampsite was selected and protected with fencing material.

The first annual Environmental Performance Review Workshop was a significant step in providing summary and closure to the 2002 construction year and will now become an integral part of VBNC’s management plan. It provided an avenue to summarize environmentalperformance at the site, comment on the effectiveness of the EPP, and identify opportunities to make improvements for 2003 and beyond.This sharing of ideas and concerns through discussion with the Company, its contractors, and aboriginal groups have contributed to effective environmental management.

VBNC maintains a commitment for environmental protection, and will strive for new goals to minimize and eliminate potential environmentalimpacts as site development increases. To ensure that our monitoring activities continue to be effective, it is essential that there be continued cooperative efforts between all stakeholders. Clear lines of communication are necessary to foster a workplace where environmental protection is not an extra, but an accepted part of each work day.

Executive Summary

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1.0 Introduction

Construction of the Voisey’s Bay Mine-Concentrator project at Voisey’s Bay, Labrador officially began during the summer of 2002. VBNC hascontinued to maintain a commitment to responsible environmental stewardship, and has established goals of minimizing and eliminatingpotential environmental impact. The VBNC Health, Safety and Environment Policy will continue to guide the implementation of the company’senvironmental objectives. The underlying concept of sustainable development requires balancing the need for economic growth with goodstewardship and achieving higher standards of best industry practice in the protection of human health and the natural environment.

The management and design of site development activities for 2002 was awarded to SNC-Lavalin/BAE-Newplan. However, VBNC maintains its authority and continues to provide approval and direction when necessary. Organization for site environmental management and directmonitoring responsibility has adapted to accommodate this site development regime.

2.0 Purpose

The Environmental Performance Report (EPR) presents an overview of development progress for the 2002 construction season at theVoisey’s Bay project site in Labrador. It provides an opportunity to capture and identify valuable experience of the 2002 construction seasonand enables all stakeholders involved (i.e., Voisey’s Bay Nickel Company, Innu Nation, Labrador Inuit Association and site contractors)to develop more effective environmental protection efforts for site activities in future years.

3.0 Objectives

The EPR provides a summary of knowledge gained by site environmental monitors in 2002. It presents an overview of site development activities during the 2002 construction season, identifies mitigative measures implemented for environmental protection, gives an overview of monitoring efforts, and presents findings of the first annual Environmental Performance Workshop. Any significant update or revision to the Environmental Managements System will also be identified.

4.0 Regulatory Compliance

4.1 Permits, Approvals and Authorizations

In 2002 the Government of Newfoundland and Labrador, Government of Canada, Labrador Inuit Association and Innu Nation implemented anEnvironmental Management Agreement (EMA) for the Voisey’s Bay Mine and Concentrator project. The mandate of the EnvironmentalManagement Board (EMB), established under the EMA, includes reviewing and providing advice to the appropriate regulatory agency on permit applications dealing with project development. Conducted by representatives from both levels of government, Innu Nation and LIA, the application review process invites input to aid in ensuring that an acceptable level of environmental protection has been considered in the design and planning stages of the project. This provides an important avenue to incorporate traditional aboriginal knowledge with best practices in industry.

Regulatory permit approvals that were required for the 2002 construction season are presented in Appendix A. Following a review of eachpermit application, the EMB provided advice to the regulatory agency, which subsequently issued the approval or authorization to VBNC.The entire process for each permit application may take up to eight weeks to complete.

4.2 Regulatory Inspection

During 2002, representatives from the provincial and federal governments conducted regulatory inspections at the project site.

Environmental inspections by the provincial Government Services Centre – Goose Bay office revealed two non-compliance items. A valve was noted to be missing from the piping of a newly installed oil-water separator (not in service) installed for a new refueling platform at the fuel tank farm. Also, a bermed entrance to the refueling platform was required.

Officers from the Department of Fisheries and Oceans in Nain visited the site many times during the construction of the access road. There were no non-compliance issues with respect to culvert installations and crossings over fish habitat.

The Occupational Health and Safety Division of the Department of Labour conducted two site visits in 2002. Inspections conducted revealed minor non-compliance items. These issues were addressed and rectified within the required timeframes by respective contractors.

5.0 Summary of Construction Activities for 2002

The first major construction season for the Voisey’s Bay Project was successful in providingthe necessary preliminary infrastructure to support increased construction activity for 2003and beyond. VBNC’s construction effort concentrated on upgrading of existing facilities and establishing access routes to areas proposed for development.

5.1 Linear Developments

A 10.6 km access road was constructed during 2002. The road links the Anaktalak Bay construction camp with the temporary dock and lay down area, borrow pits, maintenance yard, rock quarry, temporary airstrip, mill site, and south storage access area.

To support access road construction, a total of 48 culvert crossings were installed. Of this number, 39 were placed in the main road and nine on other access roads.

Fish passage streams were identified at km 5, km 7.4 and km 9.2. Two Bailey Bridges were installed at the stream crossings of km 5 and km 9.2 – spanning 40ft and 50ft respectively. A 40% submerged culvert was installed at km 7.4 to provide suitable fish passage.

Anaktalak Bay and Mine Access Road

Preparing for a stream crossing at Camp Pond Brook- silt fence and oil boom

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For environmental protection, each crossing location was subject to individual assessment through Job EnvironmentalAnalysis (JEA). The JEA ensured a documented process todetermine the most effective measures were taken to preserveaquatic and shoreline habitat, and to prevent sediment and other materials from entering waterways. The installation of silt fencing and pillow booms were common measures taken on stream crossing locations.

Timber clearing required for construction activities required approximately 68 hectares of wooded area to be cleared and700 cords of salvageable timber were harvested. An opportunitywas realized to reduce the cutting width of the haul road byapproximately 24 metres. This resulted in the preservation of approximately 220,800 square metres (approximately 22 hectares) of timbered area, increased buffer zones near waterways, and preserved natural habitat.

Two lay-down areas were developed for temporary storage of equipment and supplies, one at the temporary dock area and one at km 8.2. A culvert yard was established at km 1.8.

A temporary hazardous waste storage and transfer area consisting of a lined bermed area and an adjacent unlined storage area was constructed near the contractor maintenancefacilities/yard on the south end of the Anaktalak Bay campsite. It was used for the storage of contaminated soil, spent batteries, drummed oil filters, and oily rags/spill pads. All of this material was shipped off site at the end of the 2002 constructionseason for disposal at an approved waste handling facility.

5.2 Earthworks

A small borrow pit near Edward’s Cove produced 61,512 m3

of gravel for road construction. The borrow pit at km 1.7 wasexpanded and approximately 250,000 m3 of gravel was used for road construction. Four explosive magazine pads were also built at the northwest end of the borrow pit, each with a capacity of 40 tonnes. A crushing, screening and batch plant and a cement bag storage area were set up at the km 1.7 borrow pit in December.

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Timber cutting at the mill site and temporary airstrip

Km 1.7 Borrow Pit – winter preparation

Quarry at Km 6

A rock quarry was developed at km 6 (Site 7 Borrow Quarry). In preparation for quarry development, two storage areas wereestablished for grubbed material and topsoil removed to exposethe underlying bedrock. Approximately 215,000 m3 of blast rockwas excavated from this quarry.

All rock drilled and blasted was subject to chemical analysis for total sulphur content. The VBNC Environmental ProtectionPlan states that rock with a total sulphur level exceeding 0.2% has the potential to cause Acid Rock Drainage (ARD)over time, when exposed to air and moisture. Any ARD material identified was not permitted for construction use. A small amount was placed under water during construction of the temporary dock and the remainder was isolated and temporarily stored in the borrow pit at km 1.7. In total, approximately 2,500 m3 of ARD waste rock was segregated from the quarry.

Development at the mill site resulted in timber cutting and salvage, grubbing and topsoil removal to expose the underlying bedrock. A total of 100,000 m3 of overburden was excavated by the end of the 2002 construction season. A temporary drainage ditch (2mx400m)was constructed to manage natural drainage and surface run-off during mill site excavation.

A south fill storage area was established on the southwest side of Camp Pond with approximately 4 1/2 hectares of final coverage and (5 hectares cleared) a capacity of approximately 160,000 m3. During 2002, approximately 60,000 m3 of fill was placed in the south fill storage area (approximately 1/3 of total capacity). Three temporary explosive magazine storage areas were also developed in the south fill area during the end of the construction season.

5.3 Infrastructure

A temporary airstrip was constructed northeast of the mill siteand the first fixed wing aircraft landed on October 23, 2002.The airstrip is approximately 700 m long by 38 m wide(approximately 4 m on both sides is used for vehicle traffic).Three rows of silt fences were placed at the end of the airstrip and a single row of silt fencing was placed along the north side of the airstrip, preventing any sedimentation of Camp Pond Brook.

A temporary timber-crib dock was an important component of the 2002 construction program. It served as a more effectiveand efficient area for barge off-loading during construction. Prior to crib construction and installation, measures were taken to minimize the potential impact zone in the event of an accidental release or spill of petroleum product into the marine environment. A marine oil spillcontainment boom was deployed around the work area that also served to contain any floating construction debris. Measures were also takento ensure that all timber used in the construction of the cribs did not contain any harmful chemical preservatives. To minimize sedimentation of waters adjacent to dock construction, efforts were made to select clean rock for the dock ramp and crib ballast.

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Mill site and temporary airstrip

Construction of the temporary dock – oil boom deployed

A total of twelve cargo barges and three fuel tankers arrived at Anaktalak Bay during the 2002 shipping season. All suppliesand cargo were delivered without environmental incident. As required by the Open Water Shipping Protocol (an agreementbetween LIA and VBNC), Inuit Shipping Advisors accompaniedthe vessel crews during travel through Anaktalak Bay. Prior to completion of the temporary dock, barges were beached on high tide at a three meter sand ramp. Shallow waters in this area made cargo offloading difficult and timely.

Improvements and expansion of the construction campsiteinfrastructure in 2002 were necessary to accommodatethe increasing construction workforce. New dormitory units

and associated wash facilities were added to the existing complex to support a camp population of over 200 workers. A new larger cafeteria was opened and trailer units wereinstalled to provide additional office space. A new septic tank and disposal field was constructed to the west of thesewage treatment plant.

A one million-litre fuel storage tank was built to increase the on-site fuel storage capacity during construction. The tank was inspected and approved for fuel storage by an official of the provincial Government Services Centre. It was filled before the end of the construction season.

A 22,000-litre UL-certified tank was approved by the provincial government for waste oil storage, and situated near the existing fuel tank farm facilities. Approximately 30% of the storage capacity for waste oil was utilized during 2002 construction. Waste oil will be shipped off-site to an approved handling facility when quantities warrant.

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Early morning barge offloading at the temporary dock

1 million litre tank erected at the tank farm

5.4 Other

Marine geotechnical drilling at the port site in Anaktalak Bay was undertaken in November. A new procedure for geotechnical drilling in a marine environment was developed by VBNC with input from Aboriginal monitors and incorporated into the EPP. A drill was placed on the barge and a containment boom was deployed around its perimeter to keep any spilled material contained so that it could be more easily recovered. Inspection of the drill and barge was conducted by the environmental monitors (Innu, Inuit, SNC Lavalin/BAE-Newplan and VBNC). Two boreholes were drilled without any environmental incidents.

6.0 Exploration Activities

The VBNC exploration program for 2002 consisted of the collectionof a bulk sample from the Ovoid deposit for metallurgical testing,in-fill drilling of the South-East Extension and Ovoid, geophysicalsurveys, and participation in the ARD program for quarry materialsused for construction.

The bulk sample collection consisted of 63 large diameter drillholes (PQ) in the Ovoid area to collect 100 tonnes of ore gradematerial for mill testing. This core was drilled between July andSeptember of 2002 and shipped to Lakefield SGS in Ontario for further laboratory test work.

In September 2002, an 8-hole drill program was conducted in theSouth-East Extension to provide more information on the nature of this mineralization and possible impacts on final pit designs. This work was completed in October 2002.

From October to December 2002, 15 holes were drilled in the Ovoid deposit to confirm shape and possible impacts on pit design.

During the fall of 2002, a number of geophysical surveys were conducted. Acoustic and optical televiewer probes were used to provide additional geotechnical information on the rock characteristics. Also, test surveys were performed on the Eastern Deeps deposit to determine borehole deviations using a North Seeking Gyro and IGF Gyro. Acoustic velocity data was also collected from a number of holes in the Eastern Deeps deposit.

Environmental monitors conduct final drill site inspection to ensure that all materials and debris are removed.

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7.0 Environmental Monitoring Activities

Representatives from VBNC, SNC-Lavalin/BAE-Newplan, Innu Nation, LIA, and IKCB conducted environmental monitoring activities for 2002 construction. A concerted monitoring effort ensured strict compliance by all site contractors with provincial and federal legislation, conditions of permitting, and VBNC Environmental Protection Plan (EPP).

To complement environmental monitoring activities, a Job Environmental Analysis (JEA) was conducted for each activity that had potentialfor environmental impact. All aspects of a particular job were discussed with reference to requirements to the EPP, identified issues mitigated,and sensitivities to the area in question identified. JEA participants, other than the site environmental monitors included front line supervisorsand project design/field engineers. These sessions provided an opportunity to explain, in a step-by-step format, the tasks required to complete a specific job. It allowed for activities to be discussed, incorporating scientific practices and principles with traditional aboriginalknowledge. Once JEA’s are completed, final sign off is necessary by all parties involved in the review and those personnel conductingand/or supervising the work in the field.

Daily environmental meetings were another mechanism used during the 2002 construction season to identify and resolve environmentalconcerns. Non-compliance items noted during routine monitoring activities were tabled for discussion and resolution. Additionally, the discussionprovided an opportunity to keep all monitors informed of upcoming work activities. Innu Nation and LIA environmental monitors also reportedtheir activities and findings to their respective organizations.

8.0 Monitoring Outcomes

A first annual Environmental Performance Review Workshop (EPRW) was held in Goose Bay on December 11, 2002. The purpose of theEPRW was to review all 2002 construction activities, identify environmental concerns and raise issues to seek effective resolution and generate ideas through round-table discussion. Experience gained from all environmental monitoring activities during the 2002 constructionseason was invaluable, and provided an opportunity to seek further improvement for 2003 and beyond. Many of the environmental monitoringoutcomes were brought forth in this discussion forum. A summary of recommendations from the EPRW is presented in Appendix B.

8.1 Spills

Spill reporting remained diligent during the 2002 construction season. As of November 21, 2002, 120 spills of petroleum products had been reported. Of that number, about 91 percent were less than 5 litres. Only two spills were greater than 70 litres and required reporting to regulators. During the EPRW, there was a thorough discussion of the storage, handling and transfer practices of petroleum products on-site. It was also noted that the reporting procedure for spills less than 1 litre created large amounts of paper work. It was agreed that the reporting process for spills less than 1 litre could be reviewed and discussed on-site by environmental personnel.

<1L1L< Volume <5L5L< Volume<20L20L<Volume<70L>70L

5%2%

2%

31%

60%

Spill Reports-2002 Construction

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8.2 Waste Management

The management of waste generated from construction and campsite operation was an important activity in 2002. Waste managementstrategies were implemented to control solid waste on a daily basis. Stringent measures were implemented to control food wastes and any other material that may attract wildlife, primarily black bears. Regular pick-up times and designated areas were established for burnable material such as paper, cardboard, and untreated/unpreserved wood waste. The campsite incinerator was relocated to the south side of the port access road to allow for expansion of the existing accommodations complex. Storage areas were established for contaminated soil, spent oil filters, batteries and scrap metal.

The following waste material were collected and shipped off site to an approved waste handling facility at the end of the 2002 construction season in accordance with the Transportation of Dangerous Goods Regulations.

Waste Material Quantity Shipped

Hydrocarbon Contaminated Soil 200 tonnesWaste Coolants 3400 litresWaste Varsol 2500 litresUsed Filters (Oil/Fuel) 2 drumsScrap Steel 45000 lbsRags/Pads 5 drumsWaste Grease 3 drumsUsed Batteries 20

With the level of construction activity expected to increase in 2003, there is a recognized need to implement a comprehensive waste management plan and waste handling facility to accommodate the increased volumes of solid wastes that will be generated during future construction. The proposed waste management system will include: a designated waste management storage facility, a new larger incinerator, and a temporary landfill. The facility will have controlled access and be attended by designated and trained workers.

8.3 Land Clearing

Buffer zones and timber salvage during land clearing for constructionwas also subject to close monitoring during 2002. Only one instancedealing with buffer zone infringement occurred where the cleared area for the temporary dock lay-down area went beyond a 30-metre distance from the high water mark. To compensate for this, the filled area was actually reduced in size to avoid covering the cleared area. Clarification of guidelines and instruction on engineering design drawings prevented other instances such as this from occurring. Salvageable timber stacked along the haul road

With 68 hectares of land cleared, timber was kept away from the right-of-way and protected from being buried during linear developments.Concern was expressed about the utilization and accessibility of salvaged timber during construction. Local residents have expressed an interest in collecting the timber for firewood. Details about accessibility of the haul road by local residents during winter have to beaddressed in 2003 to ensure the safety of snowmobilers and site workers. Additional future discussion is required to determine alternatemethods for safe removal of timber from the haul road.

8.4 Wildlife

Wildlife monitoring during 2002 was limited to visual observation andsecurity surveillance for worker safety. Sightings of wolves, whales, harlequin ducks, and black bears were common. However, there was no constant presence by caribou in the project area throughout the construction season. However, estimates of 3500-4000 animals weresighted passing through the Anaktalak Bay campsite area in July. No animals were destroyed during the year and only one black bear had to be captured and removed from the campsite by wildlife officials.

Wildlife-worker encounters were a topic of concern brought forward during the EPRW, primarily with black bears. SNC-Lavalin/BAE-Newplanhas committed to increase the information in the site worker orientationabout black bears. More emphasis will also be placed on educating workers about the proper methods of food waste disposal and the possible consequences of not abiding by these methods.

EPRW discussion also focused on the necessity of caribou crossings along the newly constructed haul road. There was also a recognizedneed to develop an approach for caribou deterrence at the temporary airstrip. A draft deterrence protocol was developed in October and will be finalized and tested in 2003.

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A bear is relocated by Provincial Government Wildlife Officials

Note: Of the 115 bears seen, many were repeat sightings of the same bear.

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8.5 Water Quality

Water quality monitoring during 2002 was limited to sample collection at culvert crossing locations and the re-establishment of select surface and groundwater sampling locations from earlier baseline environmental monitoring programs. Measurement of pH was initiated at culvert crossing locations to monitor changes that may occur as a result of runoff from rock used in road construction. Mitigations to reduce siltation and sedimentation of watercourses were a significant aspect of monitoring efforts along the haul road. Only two instances were recorded where sediment inadvertently entered waterways because of construction activity. Efforts were improved to inform workers of the importance of minimizing impacts to waterways and the effects of sedimentation on fish and fish habitat.

Samples collected by SGE during culvert installation were analyzed for Total Suspended Solids (TSS). Although there are currently no regulatory reporting requirements for TSS at the project site, TSS levels were compared to a value of 30 ppm – the provincially regulated maximum concentration for a grab sample. The graph below shows background or "upstream" levels of TSS – those occurring naturally in the stream before culvert installation. The downstream measurements indicate total sediment loading during culvert installation. Therefore the actual TSS loading during culvert installation is the difference of the two measurements. Measures such as diversion pumping, the construction of sumps, silt cloth installations, and cofferdams has helped minimize TSS to acceptable levels.

Silt curtain at Stream Crossing #16 Bailey Bridge

Silt curtain at Camp Pond Brook

Sump pump system for “dirty” water diversion at Camp Pond Brook

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8.6 Dust Control

Dust control during the 2002 construction season was limited to water application on road surfaces with the use of a water tanker truck. This method proved effective when daily temperatures were above freezing. However, colder temperature conditions in the fall created ice on the road surface after water application for dust suppression. This caused a safety concern during heavy equipment and light vehicle operations on the access roads. Other safe and environmentally acceptable alternatives for dust suppression are being explored. Chemical application for dust suppression is not an option that will be considered.

8.7 Other

Early in the 2002 construction season an all-terrain vehicle was used for transport from the campsite to the temporary dock area.Environmental monitoring of this area showed the establishment of a trail on the backshore of the beach. During this time, all-terrainvehicle use was restricted to within the campsite or in areas where trails or roads have been previously designated. After inspection

of this area by an agronomist, who was conducting work at the site for the project reclamation program during that time, it was decidedthat the area could be used as a test area for future reclamation programs. Some re-vegetation work will be planned for this area in 2003.

8.8 Historic Resources

Jacques Whitford Environment Limited (JWEL) completed an archaeological program at Voisey’s Bay, Labrador, between July 26 andAugust 12, 2002. The 2002 fieldwork included mitigative activities and additional pre-construction surveys in areas identified in VBNC’sHistoric Resources Management Plan.

A total of 207.5 m2 were excavated at two sites along the east shoreline of Edward’s Cove, comprising of several tent rings (HcCm-11 and HcCm-13). Artifacts dating to the historic period (e.g., gunflint, iron nails, clay pipe fragments) were also discovered, recorded and collected; detailed mapping was conducted and the sites photographed. Pre-construction surveys focused on two areas: a new proposed quarry location and the Mill Site Construction Camp. No additional historic resources were present in these two areas and it was concluded that no further survey or testing programs were required for these areas. Deep subsurface testing programs were undertaken at two sites (HcCm-16 and HcCm-17) and seven sites were marked and fenced. Detailed investigations were conducted at two sites (HcCm-14 and HcCm-15).

Information sessions on historic resources at Voisey’s Bay, as well as site orientation for Innu and Inuit site monitors, were delivered by archaeologist Yves Labrèche, who also led a site visit with an Innu elder, her relatives and Innu Nation representatives to further investigate a possible burial location at Anaktalak Bay.

An education/orientation document was made available for historic resources awareness sessions for campsite workers. This documentexplains what historic resources are, how they are protected and what archaeologists do. It also includes a reporting procedure to be followed by construction personnel and other workers at site in the event of an unexpected discovery of archaeological sites or artifacts.

9.0 Environmental Protection Plan

The Environmental Protection Plan for Construction was effective in establishing a framework of boundaries in which construction activitieswere carried out without adverse impact on the surrounding environment. Conditions of permitting received for construction and developmentactivities often refer to stipulations of the EPP, thus allowing construction to continue to meet regulatory requirements as well.

The EPP, in consolidating provincial, federal and corporate environmental guidelines has provided a common reference document for conducting environmental monitoring by all site monitors. This ensures that the approach to identifying non-compliance issues and offeringmitigations remains consistent.

Additionally, it is recognized that the EPP is a living document that will evolve and adapt to meet new challenges and processes as theyarise. It provides a documented and controlled framework to formulate and develop a consolidated approach to effectively resolve new challenges, considering input based on traditional aboriginal knowledge and industry best practice.

During 2002 there was a focus on improving worker awareness of the EPP procedures and requirements, as they related to daily workactivities. This was originally done by including EPP information in the employee orientation and toolbox meetings. An environmental awareness seminar was developed in September 2002 and delivered to all on-site workers. Contractors were also encouraged to prepare an environmental awareness section to be added to their Safety Orientation for 2003. Recommendations were also made to improve the environmental awareness seminar, incorporate more EPP awareness into the employee orientation, and to develop an environmental protection handbook.

10.0 Conclusion

Environmental monitoring efforts at the Voisey’s Bay project in 2002 were effective in minimizing adverse environmental impacts of projectconstruction. These efforts will continue to grow and strengthen as the scale of development and operation increases. To ensure that ouractivities continue to be effective in minimizing environmental impacts of site development, it is essential that there be continued cooperativeefforts between all stakeholders. Clear lines of communication are necessary to foster a workplace where environmental protection is not an extra, but an accepted part of each work day.

The first annual Environmental Progress Review Workshop was a significant step in providing summary and closure to the 2002 constructionyear and will now become an integral part of VBNC’s management plan. Sharing of ideas and concerns through discussion with theCompany, its contractors, and aboriginal groups have contributed to an increased joint effort in successful environmental management of construction activities.

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13

Appendix A Permit Approvals

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Tab # PO Application/Approval Approval No. Government Date Date Date Expiry Department Submitted Approved (Where

applicable)

1 P010A Authorization of Work Affecting 4-02-004 DFO May 28-02 August 13-02Fish Habitat, Temporary Wharfat Anaktalak Bay (Letter of Advice – DFO)

2 P010B Authorization of Work Affecting 4-02-003 DFO May 28-02 August 8-02Fish Habitat, 2002 Stream Crossings (Letter of Advice - DFO)

3 P004 Archaeological Investigation Permit 02.31 Provincial Archaeology May 28-02 July 24-02 August 31-02Office Culture and Heritage Division

Archaeological Investigation 02.31.01 September 1-02 December 31-02Permit Renewal

4 P001 Commercial Cutting Permit 02-19-00195 Forest Resources May 28-02 June 12-02 March 31-02P002 Permit to Operate OP-02064 and Agrifoods June 12-02

5 P005A Notification of Commencement Labour May 28-02 (application is (application isof Construction not required) not required)

6 P011 Navigable Waters Protection BWA-8200- DFO May 28-02 September 30-02Permit (Temporary Wharf) 02-1351

7 P011A Permission for ATV Use at Site Environment May 28-02 August 1-02 (application is not required)

8 P011B Navigable Assessment for Stream BWA-8200- Canadian Coast Guard July 11-02 August 12-02 (application is Crossings for Main Access Road 02-1245 not required)

9 P013A Quarry Permit Renewal 110326 Mines & Energy May 28-02 August 13-02(No. 104531 - 2.112 km)

10 P013B Quarry Permit Renewal 110327 Mines & Energy May 28-02 August 13-02(No. 104534 - 3.980 km)

11 P013C Quarry Permit 110284 Mines & Energy May 28-02 August 13-02 December 31-02(No. 110284-5.124 km)

12 P013D Quarry Permit Renewal (104532 & 104533 - 5.800 km) 110328 Mines & Energy May 22-02 August 13-02

13 P015 Fording a Watercourse Environment May 28-02 August 1-02 (application is not required)

14 P019 Black Bear and Polar Bear Forest Resources May 28-02 June 6-02 December 31-02Protection at Labrador Camps and Agrifoods

15 P020A Alter a Body of Water 02-08-6905 Environment May 28-02 August 9-02 August 9-04(Temporary Wharf at Edward’s Cove)

16 P020B Alter a Body of Water Environment May 28-02 August 1-02 (application is (Watercourse Crossings - not required)Anaktalak Bay to Mine/Mill Site)

Government Date Date Date Expiry Tab # PO Application/Approval Approval No. Department Submitted Approved (where

applicable)

17 P022 Alter a Body of Water – 02-08-6889 Environment May 28-02 August 9-02Application for Environmental Approvalto Install Culverts (WatercourseCrossings from Anaktalak Bay to Mine/Mill) - DOE

Stream Crossing #25 4-02-008 September 10-02Letter of Advise from DFO

18 P025 Application to Develop Land Government Services May 28-02 (application is (application isand Lands not required) not required)

19 Permit to Occupy Crown Lands Government Services May 28-02 (request from (request from(Construction Camp at Anaktalak Bay) and Lands government that government that

application applicationbe broken down) be broken down)

20 P028A Construction Camp (Anaktalak Bay) E020049 Mines & Energy June 28-02 July 24-02 September 11-03Renewal of Licence No.L-106409

21 P028B Permit to Occupy Crown Land L-122239 Government Services June 28-02 September 16-02 September 16-05(Temporary Wharf at Anaktalak Bay) and Lands

22 P028C Permit to Occupy Crown Land L-106905 Government Services June 28-02 July 25-02 July 25-07(Extension/Amendment Access and Landsand Mine Haulage Roads)

23 P028D Permit to Occupy Crown Land – L-122235 Mines & Energy June 28-02 September 30-02 September 30-03Temporary Work Camp

24 P028E Permit to Occupy Crown Land L-122237 Government Services June 28-02 September 16-02 September 16-05Marshalling Yard (Industrial and LandsEquipment & Supplies – North of Camp Pond)

25 P028F Permit to Occupy Crown Lands L-122236 Government Services June 28-02 September 24-02 September 24-05(Mill Site & Airfield) and LandsNorth West Side of Camp Pond

26 P028G Permit to Occupy Crown Lands L-122240 Government Services June 28-02 September 16-02 September 16-05 Marshalling Yard (Soils & Overburden and LandsMaterials) South of Camp Pond

27 P028H Permit to Occupy Crown Lands L-122238 Government Services June 28-02 July 25-02 July 25-05 Marshalling Yard (Industrial and LandsEquipment & Supplies- Edward’s Cove)

28 P029 Expansion of VBNC Camp – Exemption # Government Services May 28-02 July 24-02Exemption under the Buildings EA265A and LandsAccessibility Act and Regulations

29 P030 National Building Code Permit Same as Government Services May 28-02 July 24-02(re third 42 person trailer to PO29 and Landscamp at Edward’s Cove)

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Government Date Date Date ExpiryTab # PO Application/Approval Approval No. Department Submitted Approved (Where

applicable)

30 P033 Proposed Sewage System for AA97-075232 Government Services May 28-02 August 7-02 December 31-03Camp Expansion and Lands(Amendment to Permit of 1997)

31 P034 Water Use (water withdrawal for WUA-02-045 Environment May 28-02 August 6-02 September 1-07Voisey’s Bay Construction Camp) file 517

32 Exploration Approval E020046 Mines & Energy June 18-02 June 28-02 October 30-02(Renewal - Drilling) Nov 1-02 December 31-02

33 P016 Alter a Body of Water 02-08-6909 Environment June 28-02 August 9-02 August 9-04(Installation of 2 Bailey Bridges)

Letters of Advise (DFO) 4-02-001,4-02-002,4-02-003

34 P003 Permit to Burn Forest Resources August 1-02 September 9-02 September 22-02and Agrifoods

35 P007 Temporary Explosives Magazine U30071 Mines & Energy July 31-02 August 16-02 August 1-03Permit Amendment #1 November 18-02 July 1-03

36 P039A Re-Location of Incinerator Letter from Government Services August 14-02 August 30-02at Anaktalak Bay Ken Russell and Lands

37 P052 Storage Tank System Application LB-GAP02- Government Services September 3-02 September 30-02 August 31-04(used oil tank) 09003 and Lands

38 P040 Renewal to Dispose of Incinerator Town of Nain August 27-02 August 14-02 August 14-03Ash in Nain

39 P050 Permit for the Storage and Handling LB-GAP02- Government Services July 8-02 August 28-02of Gasoline & Associated Products 07007 and Lands

(Woodward’s 1 Million L tank)

40 Permit for Removal of Soil Canadian Food September 9-02 September 1-03 Inspection Agency

41 P029A Request for Exemption under the Government Services October 7-02 October 21-02Buildings Accessibility Act for a and Landsfold-a-way warehouse at Anaktalak Bay

42 P030A Construction of a fold-a-way warehouse Government Services October 7-02 October 21-02at Anaktalak Bay – National Building and LandsCode Application

43 P011D Navigability Assessment (streams Canadian Coast Guard September 27-02 October 21-02to crossing 35 – South Storage Area Access Road)

44 P022A Certificate of Approval for 02-10-7030 Environment September 27-02 October 28-02 October 28-04Culvert Installation (streams to crossing#35 – South Storage Area Access Road)

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17

Government Date Date Date ExpiryTab # PO Application/Approval Approval No. Department Submitted Approved (where

applicable)

45 P010G Project Referral for VB Project - 4-02-019 DFO September 27-02 November 1-02Y2002 Geotechnical Program

46 PO62A Application for Exploration Approval and E020112 Mines & Energy September 27-02 November 1-02 December 31-02Notice of Planned Mineral ExplorationWork – Y2002 Geotechnical Program (Port Marine)

47 P062B Application for Exploration Approval and E020111 Mines & Energy September 27-02 November 1-02 December 31-02Notice of Planned Mineral Exploration Work – Y2002 Geotechnical Program (Port Land)

48 P010D South Storage Area Access Road 4-02-018 DFO October 3-02 November 1-02Stream Crossings and Deicing Operationsat the Temporary Airstrip

49 P035A Construction of a Non-Domestic Well 02-110 Environment October 23-02 January 2, 2003(Edward’s Cove, Anaktalak Bay)

50 P035B Construction of a Non-Domestic Well 02-109 Environment October 23-02 January 2-03(Mill Site)

51 P062C Y2002 Geotechnical Program – E020123 Mines & Energy November 6-02 December 11-02 December 31-02(2002) Additional Drilling (2002)

P-C2003- Re Exploration Approval E020123 E030012 December 19-02 Feb 6, 2003 December 31-03017A (request to extend expiry date) (2003)(2003)

52 P029B Exemption under the Buildings Accessibility Correspondence Government Services November 20-02 December 16-02Act for 2 Additional Accommodation Units Received and Lands

Jan 8/03

53 P030B 2 Additional Accommodation Units Correspondence Government Services November 20-02 December 16-02at Edward’s Cove Received and Lands

Jan 8/03

54 P063 Renewal of Incinerator Approval at LB-WMS02 Government Services December 02-02 December 30-02 Aug 31-03Anaktalak Bay (Original Approval -12001#LB-WMS00-12001)

55 Application for Exploration December 09-02Approval (Drilling)

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Appendix B Environmental Performance

Review Workshop Recommendations

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AGENDA TOPIC RECOMMENDATION

EPP – successes, 1. Incorporate EPP topics into daily Safety Toolbox Talks. problems, how to improve 2. Continue to improve Environmental Awareness Orientations.

3. Develop Environmental Protection Handbook.

Permits and Plans review process 4. Investigate how permits are reviewed, can the process be streamlined

Solid Waste Management 5. Timing of Solid Waste Management Plan for 2003 to include:

• New Incinerator• Landfill• Waste Management Storage Facility

6. Investigate possibility of disposal of oily rags on-site in the incinerator.

Quarry Development and ARD 7. Revisit ARD protocol.8. Propose coring program for definition of quarry sources

(i.e., better characterize Sulphur content of a given volume of rock).

Land clearing and harvested 9. Meeting with LIA may be required in mid winter to assess timber usage by local residents. timber management Plan follow-up action regarding future timber accessibility accordingly.

Wildlife – Summary 10. Incorporate Bear Safety/Waste Management into site orientation.of Sightings & Concerns 11. Caribou crossings: evaluate requirement and location during winter of 2003.

Dust Control 12. Protocol for dust control in summer (non-freezing conditions).13. Establish a water source for refill of water truck.

Barging Activities – 14. Improve follow-up on communications between shipping advisors and site. Shipping Advisory Address “ship notification” process and timing. SNC-Lavalin/BAE-Newplan to develop and Baseline Marine Monitoring a follow-up protocol to ensure shipping companies address non-compliance issues.