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VALLEY-WIDE SELENIUM MANAGEMENT ACTION PLAN FOR TECK COAL LIMITED OPERATIONS IN THE ELK VALLEY SUMMARY REPORT Submitted To: British Columbia Ministry of Environment

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Page 1: VALLEY-WIDE SELENIUM MANAGEMENT ACTION PLAN FOR … · 2013-04-11 · Valley-wide Selenium Management Action Plan Summary Report February 2013 2 open-pit mines in western Canada,

VALLEY-WIDE SELENIUM MANAGEMENT ACTION PLAN FOR TECK

COAL LIMITED OPERATIONS IN THE ELK VALLEY

SUMMARY REPORT

Submitted To:

British Columbia Ministry of Environment

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TABLE OF CONTENTS

1  INTRODUCTION ................................................................................................ 1 1.1  Background ......................................................................................................... 1 1.2  Objectives ........................................................................................................... 4 1.3  Scope .................................................................................................................. 5 

2  PLAN DEVELOPMENT PROCESS ................................................................... 8 2.1  Development and Calibration of the Water Quality Planning Tool ...................... 8 2.2  Predicting Future Conditions With and Without Mitigation ................................ 10 2.3  Development of Operation-specific Plans ......................................................... 11 2.4  Valley-wide Integration and Optimization .......................................................... 12 2.5  Sensitivity Analysis ........................................................................................... 12 

3  ACTION PLAN ................................................................................................. 13 3.1  Overview and Expected Performance under Design Conditions ...................... 13 3.2  Results of the Sensitivity Analysis .................................................................... 19 

3.2.1  Sensitivity to Variable Flow Conditions .................................................. 19 3.2.2  Sensitivity to Changes in Selenium Release Rates ............................... 23 3.2.3  Sensitivity to Changes in Leakage Rates ............................................... 27 

3.3  Implementation Schedule ................................................................................. 31 4  ADAPTIVE MANAGEMENT ............................................................................. 33 

4.1  Monitoring ......................................................................................................... 33 4.1.1  Selenium Management Measures .......................................................... 33 4.1.2  Receiving Environment .......................................................................... 34 

4.2  Applied Research and Development, and Technology Transfer ...................... 34 4.2.1  Applied Research and Development to Support Mine Design and

Mine Planning ......................................................................................... 35 4.2.2  Research and Development Related to Active Water Treatment ........... 37 

4.3  Plan Revisions .................................................................................................. 40 5  CLOSURE ........................................................................................................ 41 6  REFERENCES ................................................................................................. 42 

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LIST OF TABLES

Table 1-1   Examples of Selenium Management Activities Undertaken by Teck: 2010 to 2012 .............................................................................. 4 

Table 1-2   Recommended Environmental Management Levels and Design Targets for Selenium Used to Develop the First Version of the Valley-wide Selenium Management Action Plan .......... 5 

Table 1-3   Future Mining Projects Included in the Scope of the First Version of the Valley-wide Selenium Management Action Plan .......... 6 

Table 2-1  Model Calibration Statistics at Key Locations in the Elk Valley, 2004 to 2010 ........................................................................................ 9 

Table 3-1   First Version of the Valley-wide Selenium Management Action Plan ................................................................................................... 14 

Table 3-2  Date When In-Stream Selenium Concentrations Will Be at or Below Selenium Environmental Management Levels and Design Targets .................................................................................. 15 

Table 3-3  Summary of Design, Permitting, Construction and Operation Activities that are Planned Between 2013 and 2023, as Required to Implement the Valley-wide Selenium Management Action Plan......................................................................................... 32 

Table 4-1  Alternative Treatment Technologies Being Considered for Further Investigation .......................................................................... 39 

LIST OF FIGURES

Figure 1-1   Location of Teck’s Mining Operations in the Elk Valley and Key Assessment Nodes used in the Development of the First Version of the Valley-wide Selenium Management Action Plan .......... 3 

Figure 2-1  Comparison Between Observed and Simulated Selenium Concentrations at the Mouths of the Fording and Elk Rivers: 2004-2010 ......................................................................................... 10 

Figure 3-1   Historical and Projected Selenium Concentrations at Key Locations in the Elk Valley ................................................................. 16 

Figure 3-2   Sensitivity of the Valley-wide Selenium Management Action Plan to Variable Flow Conditions ....................................................... 20 

Figure 3-3   Sensitivity of the Valley-wide Selenium Management Action Plan to Different Rates of Selenium Release from Future Waste Rock ....................................................................................... 24 

Figure 3-4  Sensitivity of the Valley-wide Selenium Management Action Plan to Changes to Leakage Rates from the Collection Systems Used to Convey Mine-Affected Water to the Treatment Facilities ........................................................................... 28 

Figure 3-5  Commissioning Schedule for the Selenium Active Water Treatment Facilities in the Elk Valley and Predicted Concentrations in Elk River downstream of All Teck Operations ......................................................................................... 31 

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1 INTRODUCTION

This report presents a summary of the first version of the Valley-wide Selenium Management Action Plan (the Valley-wide Se Plan) that Teck Coal Limited (Teck) has developed for its coal mining operations in the Elk River watershed in southeastern British Columbia (BC). The Valley-wide Se Plan describes the actions Teck will undertake to control the release of selenium from its operations to meet the goal of stabilizing and reversing the selenium trend in the Elk Valley and to manage selenium within ecological limits. In meeting this goal, the Valley-wide Se Plan will maintain selenium levels in Lake Koocanusa below 2 micrograms per litre [µg/L], which is the BC water quality guideline for the protection of aquatic life, and below environmental management levels (EMLs) that are protective of aquatic life and other sensitive organisms in the Fording and Elk rivers.

This summary report provides an overview of the first version of the Valley-wide Se Plan. It begins with an introduction that includes background information about selenium and the actions Teck has taken to date to understand and deal with the release of selenium from its mining operations in the Elk Valley (Section 1.1). Section 1 also includes a more detailed description of the objectives of the Valley-wide Se Plan (Section 1.2) and its current scope (Section 1.3).

The introduction is followed in Section 2 by a brief overview of the methods and approach used to develop this first version of the Valley-wide Se Plan. Section 3 contains an overview of the Valley-wide Se Plan in terms of the mitigation measures to be implemented, where they will be constructed and when they are expected to be operational. Section 3 also contains a description of how the implementation of the Valley-wide Se Plan is expected to affect selenium concentrations in the receiving environment under various conditions. The main body of this summary report ends with Section 4, which includes a description of planned monitoring activities that will be completed in support of the Valley-wide Se Plan and an overview of how the Valley-wide Se Plan will be updated over time.

A detailed report on the first version of the Valley-wide Se Plan is being prepared and will be released by the end of 2013. With the release of this summary report, Teck will engage communities of interest on the Valley-wide Se Plan and will incorporate the results of this engagement into the detailed report.

The current focus of the Valley-wide Se Plan is selenium. Teck recognizes that other substances of potential concern are released from its mining operations, such as sulphate and cadmium. Over time, Teck will be looking to expand the scope of the Valley-wide Se Plan to incorporate the management of these substances. In doing so, the Valley-wide Se Plan will evolve into a Valley-wide water quality management action plan.

1.1 BACKGROUND

Teck Coal Limited, a wholly owned subsidiary of Teck Resources Limited, is the leading North American producer of steel-making metallurgical coal. The company operates six

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open-pit mines in western Canada, five of which are located in the Elk Valley (Figure 1-1).

Selenium is a naturally occurring element present in the rocks and minerals of earth’s crust including the waste rock of the coal mines owned and operated by Teck in the Elk Valley. It is an essential nutrient, meaning trace amounts are necessary for cellular function in many organisms, including all animals; however, it can be harmful if present at elevated concentrations. Coal mining can accelerate the release of selenium to the environment by exposing waste rock to air and water.

Concentrations of selenium have been increasing in the Elk Valley in the rivers and streams that are downstream of Teck’s mining operations. Since the mid-1990s, selenium levels in the Elk River have increased from estimated historical background levels of less than 1 µg/L to a maximum concentration of 18 µg/L in 2011. Higher concentrations can occur closer to Teck’s operations. For example, selenium concentrations at the mouth of the Fording River now range from 11 to 57 µg/L. Without effective management, selenium levels will continue to increase, eventually reaching levels that could have a harmful effect on aquatic life and other sensitive organisms.

In response to the observed increase in selenium concentrations in the Elk River watershed, Teck has been actively investigating and developing solutions for the management of selenium. These activities have included facilitating the formation of the Elk Valley Selenium Task Force in 1998 and the Canadian Industry Selenium Working Group in 2006 and a 2004 study on selenium levels in fish tissues in lotic and lentic environments. A conceptual model of selenium release from waste rock was developed in 2007, and the first operational selenium management plans for Teck coal mine operations were released in 2008. A passive, biologically-based selenium treatment pilot was also started at Teck’s Cardinal River Operations in Alberta.

Teck commissioned the independent Strategic Advisory Panel on Selenium Management (the Panel) in early 2010 to study the issue of selenium. The resulting report included recommendations to stabilize and reverse the selenium trend (SAPSM 2011). In response to the Panel’s recommendation, Teck initiated larger scale selenium management planning activities. As outlined in Table 1-1, these activities have included, for example:

the construction of the Kilmarnock Clean Water Diversion at Fording River Operations (FRO) in 2011 and 2012;

pilot testing of active water treatment technology at Line Creek Operations (LCO) in 2011; and

the start of construction of the full-scale West Line Creek Selenium Active Water Treatment Facility at LCO in 2012.

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3

3

U N I T E D S T A T E S O F A M E R I C AC A N A D A

BRITISH COLUMBIA ALBERTA

ElkviewOperations

Coal MountainOperations

Fording RiverOperations

GreenhillsOperations

Line CreekOperations

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LOCATION OF TECK'S MINING OPERATIONS IN THEELK VALLEY AND KEY ASSESSMENT NODES USED

IN THE DEVELOPMENT OF THE FIRST VERSION OF THE VALLEY-WIDE SELENIUM MANAGEMENT ACTION PLAN

PROJECT No. 12-1349-0008 SCALE AS SHOWN

PROJECT

TITLE

GIS

REVIEW

ET 06 Feb. 2013

CHECK

VALLEY-WIDE SELENIUM MANAGEMENTACTION PLAN FOR TECK COAL LIMITED

OPERATIONS IN THE ELK VALLEY

DR 06 Feb. 2013

LEGEND

Provincial Boundary and communities obtained from The Atlas of Canada, Natural Resources Canada. Alberta Hydrographyobtained from CanVec, Government of Canada, Natural Resources Canada. BC Hydrography, Dominion Coal Blocks andproject data obtained from Teck Coal Limited. Roads obtained from Geobase. Provincial parks and Railroad data obtained from Geogratis. Projection: UTM Zone 11 Datum: NAD 83

REFERENCE

ASSESSMENT NODECOMMUNITYCANADIAN PACIFIC RAILWAYPRIMARY HIGHWAYSECONDARY HIGHWAYWATERCOURSEBRITISH COLUMBIA - ALBERTA BORDERCOAL MINING OPERATION

FIRST NATIONS RESERVEINTERNATIONAL BORDERPROVINCIAL PARKNATIONAL PARKWATERBODY

20 0 20

KILOMETRES1:750,000SCALE

FIGURE: 1-1

Node ID Node NameFR1 Fording River dow nstream of Henretta CreekFR2 Fording River dow nstream of Clode CreekFR3 Fording River dow nstream of Sw ift CreekFR3b Fording River dow nstream of Porter CreekFR4 Fording River dow nstream of Greenhills CreekFR5 Fording River at the mouthMC5 Michel Creek dow nstream of Coal Mountain OperationsMC3 Michel Creek upstream of Elkview OperationsMC1 Michel Creek at the mouthER1 Elk River dow nstream of Greenhills OperationsER2 Elk River dow nstream of Fording RiverER3 Elk River dow nstream of Michel CreekER4 Elk River at Elko ReservoirLK1 Elk River at the mouthLK2 Lake Koocanusa

DT 06 Feb. 2013JPB 06 Feb. 2013

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Table 1-1 Examples of Selenium Management Activities Undertaken by Teck: 2010 to 2012

Year Activity

2010 Strategic Advisory Panel on Selenium Management: convened and issued first report Public commitment to stabilize and reverse the selenium trend

2011 Completed pilot testing of active biological treatment technology at Line Creek Operations Began design of the West Line Creek Selenium Active Water Treatment Facility Developed a selenium management plan for Line Creek Operations

2012

Started developing the Valley-wide Selenium Management Action Plan Commissioned the Kilmarnock Clean Water Diversion Commissioned the Swift Clean Water Diversion Commenced construction on Phase I of the West Line Creek Selenium Active Water Treatment Facility Initiated applied research and development program with a focus on watershed issues Commenced development of the Fording River Operations South Selenium Active Water Treatment Facility Initiated the development of recommended environmental management levels for selenium

In addition, in 2012, Teck initiated the development of the Valley-wide Se Plan in recognition that coordinated action is required at all of its operations to stabilize and reverse the increasing trend in selenium levels in the Elk Valley. The first version of the Valley-wide Se Plan is described below.

1.2 OBJECTIVES

Following the release of the Panel’s report in 2010 (SAPSM 2010), Teck made a commitment to adopt the objective statements of the Panel’s report. This commitment is embodied in the overall goal of the Valley-wide Se Plan, which is:

“to establish an implementation plan that shows how Teck will meet its commitment to stabilize and reverse the selenium trend in the Elk Valley and to manage selenium within ecological limits.”

This overall goal aligns with Teck’s strategy for sustainability, specifically the goal for water to “work within an informed understanding of ecological limits, [and] regional issues.”

In developing the first version of the Valley-wide Se Plan, this overall goal has been translated into the following objectives:

to maintain selenium concentrations in Lake Koocanusa below the BC water quality guideline for the protection of aquatic life of 2 µg/L; and

to maintain selenium concentrations in the Elk and Fording rivers at or below recommended EMLs that have been developed to protect aquatic life and other sensitive organisms within these river systems (Teck 2013a).

The recommended selenium EMLs are science-based water selenium concentrations that account for site-specific conditions and are protective of aquatic ecosystems. They were derived as described in Teck (2013a), and are currently under review by the BC

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Ministry of Environment. The recommended EMLs are shown in Table 1-2 for key locations within the Elk Valley (Figure 1-1). Table 1-2 also includes lower design targets that were used to create the Valley-wide Se Plan. Constructing the Valley-wide Se Plan to meet the design targets under average flow conditions provides assurance that the Valley-wide Se Plan can meet its objectives under more variable, higher or lower flow conditions.

Table 1-2 Recommended Environmental Management Levels and Design Targets for Selenium Used to Develop the First Version of the Valley-wide Selenium Management Action Plan

Location Proposed Environmental

Management Levels [µg/L](a)

Design Targets[µg/L]

2009 – 2012 Observed Concentrations

[µg/L](b)

Fording River downstream of Porter Creek 43 30 max = 72 median = 40 (n = 74)

Fording River at the mouth 43 30 max = 57 median = 24 (n = 60)

Elk River downstream of Fording River 17 10 max = 16 median = 9.6 (n = 77)

Michel Creek at the mouth 17 10 max = 16 median = 6.8 (n = 85)

Elko Reservoir –(c) 5 max = 6.9 median = 6.5 (n = 5)

Elk River at the mouth 17 5 max = 4.9 median = 4.1 (n = 16)

Lake Koocanusa 2(d) 2 max = 0.93 median = 0.83 (n = 5)(e)

Note: Design Targets and Proposed Environmental Management Levels represent maximum monthly concentrations (a) Teck (2013a).

(b) Dessouki and Ryan (2010); Spirogyra Scientific Consulting (2009); Teck (2011, 2012a,b,c); max = maximum; n = number of samples.

(c) An EML for Elko Reservoir has not yet been defined. In its absence, a design target of 5 ug/L has been used, with a

secondary goal of maintaining predicted concentrations at or below the minimum concentration historically observed in this system (i.e., below 5.8 ug/L).

(d) An EML has not been defined for Lake Koocanusa; selenium levels are being managed to meet the British Columbia water quality guideline for the protection of aquatic life.

(e) Observed concentrations in the main basin of Lake Koocanusa. Statistics for 2008 observed concentrations are shown as no observed concentrations are available for the 2009-2012 period.

1.3 SCOPE

The Valley-wide Se Plan is intended to be a living document that will be updated regularly to account for changes to mine planning, operational experience with different selenium management measures, results from applied research and development (R&D) efforts, in-stream monitoring results, and feedback from communities of interest.

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The Valley-wide Se Plan is a long-term plan that accounts for selenium releases from historical waste rock placement, currently approved developments, and reasonably foreseeable future developments. This first version has been developed using the 2011 Life of Mine (LOM) plans that Teck has developed for each of its five mine operations in the Elk Valley, expanded to include the planned Baldy Ridge Expansion at Elkview Operations (EVO) and the West Spoil Extension at Greenhills Operations (GHO) (Table 1-3). The first version of the Valley-wide Se Plan does not include the Marten Wheeler Project that is associated with Coal Mountain Operations (CMO), nor does it include the FRO Castle Mountain Project.

Development of a selenium management plan for the Marten Wheeler Project is underway and will be incorporated into the Valley-wide Se Plan later in 2013. The Castle Mountain Project will be incorporated into a later version of the Valley-wide Se Plan once more detail is available to describe the scale, scope and planned execution of that project. As discussed earlier, the intent of the Valley-wide Se Plan is to be a living document that will be updated to reflect changes to mine planning, operational experience with different selenium management measures, results from applied research and development (R&D) efforts, in-stream monitoring results, and feedback from communities of interest.

Table 1-3 Future Mining Projects Included in the Scope of the First Version of the Valley-wide Selenium Management Action Plan

Operation Future Projects Timeline

Fording River Operations (FRO)(a) Swift Project 2014 – 2037

Greenhills Operations (GHO) West Spoil Expansion(b) 2014 – 2023

Cougar North Extension 2015 – 2026

Line Creek Operations (LCO) LCO Phase II 2013 – 2033

Elkview Operations (EVO)

Baldy Ridge 6 2016 – 2027

Baldy Ridge 3 2020 – 2035

Baldy Ridge 7 2025 – 2040

Baldy Ridge 4 2029 – 2045

Adit Ridge(c) 2022 – 2031

Coal Mountain Operations (CMO)(d) none n/a

(a) FRO Castle Mountain (2028 – 2058) Project is not included, because the scale, scope and planned execution of the

project are not sufficiently defined. (b)

GHO West Spoil Expansion Project incorporates the most recent plan, which has been updated from the 2011 Life of Mine Plan.

(c) EVO Adit Ridge Project is not part of the 2011 Life of Mine Plan, but is included.

(d) CMO Marten Wheeler Project is not part of the 2011 Life of Mine Plan and is not included.

Without the Marten Wheeler Project, CMO is not a significant contributor of selenium to the Elk Valley, as has been indicated in previous applications (e.g., Teck 2011). Therefore, planned activities associated with the first version of the Valley-wide Se Plan will occur at Teck’s four other Elk Valley operations (i.e., at FRO, GHO, EVO and LCO).

This first version of the Valley-wide Se Plan focuses on actions that can be undertaken in the next 5 to 10 years. Therefore, it relies on currently viable technology that has been proven to be effective, with a focus on the implementation of active water treatment facilities (AWTFs) and water management measures that support AWTF effectiveness (e.g., clean water diversion). More specifically, the first version of Valley-wide Se Plan

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has been developed assuming the implementation of fluidized bed reactor (FBR) treatment technology at the AWTFs.

Fluidized bed reactor technology uses biological reactors with microorganisms to create an anaerobic, ion-reducing environment that converts nitrate and the mobile forms of selenium (i.e., selenate and selenite) into products such as nitrogen gas and elemental selenium. Anticipated performance of an AWTF using the FBR technology is currently the best understood, because of the experience and results gained from the FBR pilot study that was completed at LCO in 2011. The West Line Creek Selenium AWTF is also currently being constructed using FBR technology. Hence, the first version of the Valley-wide Se Plan has been developed with a focus on FBR technology.

Teck recognizes that FBR technology is not the only technology that can be used to treat for selenium, and Teck is planning to complete pilot studies that use other technologies, such as reverse osmosis and ion exchange. Results of these studies, as they become available, will be used to update future versions of Valley-wide Se Plan as appropriate and as necessary. Future versions of the Valley-wide Plan will also incorporate technology transfer from applied R&D programs, which is expected to improve the performance of selenium management in the Elk Valley over time. The methods by which this transfer could occur are discussed in more detail in Section 4.1.

While the current focus of the Valley-wide Se Plan is selenium, Teck recognizes that other substances of potential concern are released from its mining operations, such as sulphate, nitrate and cadmium. Because FBR technology treats for nitrate, the implementation of the Valley-wide Se Plan is expected to address nitrate issues. Over time, Teck will be looking to expand the scope of the Valley-wide Se Plan to incorporate the management of these substances. In doing so, the Valley-wide Se Plan will evolve into a valley-wide water quality management action plan.

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2 PLAN DEVELOPMENT PROCESS

The process used to develop the first version of the Valley-wide Se Plan involved the following key steps:

1. Develop and calibrate a water quality planning tool capable of simulating the effects of historical and future mine operations and associated mitigation on in-stream selenium levels throughout the Elk River watershed.

2. Predict future selenium loadings and concentrations with and without mitigation.

3. Develop operation-specific plans for each mining operation.

4. Integrate the operation-specific plans into a Valley-wide Se Plan and adjust the site plans to optimize performance.

5. Perform a sensitivity analysis to evaluate the expected performance of the Valley-wide Se Plan under different flow conditions and in response to modification to key input assumptions.

An overview of each of these steps is described below.

2.1 DEVELOPMENT AND CALIBRATION OF THE WATER QUALITY PLANNING TOOL

A valley-wide water quality planning tool was developed by expanding and further calibrating the existing water quality simulation model that was used to support the environmental assessment of the LCO Phase II Project (Teck 2011). Specifically, the LCO Phase II model was expanded to simulate in greater detail other sub-watersheds in the Elk Valley that were not the focus of the LCO Phase II Project environmental assessment, such as those around FRO, EVO and GHO. It was also expanded to include Lake Koocanusa, which is represented in the planning tool using a simplified, steady-state, fully-mixed, mass balance approach.

The expanded water quality model was then calibrated using a watershed-by-watershed approach. Within each watershed, selenium releases rates from waste rock were initially set to the valley-wide average rate described by SRK Consulting Inc. (SRK 2012). They were then adjusted so that simulated conditions at the outlet of the watershed matched with those observed between 1995 and 2010, with focus placed on the last 7 years of the historical record (i.e., from 2004 to 2010). The calibration was completed such that the calibrated model has a tendency to conservatively over-predict concentrations in regional streams (i.e., in the Elk River, the Fording River and Michel Creek). This tendency to over-predict selenium concentrations in regional streams is shown in Table 2-1, which contains a summary of the model calibration statistics, and in Figure 2-1, which shows simulated and observed data at the mouths of the Fording and Elk rivers. The location of each of the assessment nodes identified in Table 2-1 is shown in Figure 1-1.

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Table 2-1 Model Calibration Statistics at Key Locations in the Elk Valley, 2004 to 2010

Assessment Node(a) Number

of Samples

Average Observed

[µg/L]

Average Simulated

[µg/L]

Mean Error [µg/L]

Mean Percentage

Error(c)

Fording River downstream of Henretta Creek 33 5.6 6.1 0.5 9%

Fording River downstream of Clode Creek 42(b) 15 13 -1.5 -10%

Fording River downstream of Swift Creek 165 23 33 9.4 40%

Fording River downstream of Porter Creek 50 40 47 6.9 17%

Fording River downstream of Greenhills Creek 107 23 30 6.8 30%

Fording River at the mouth 99 21 26 4.2 20%

Michel Creek downstream of Coal Mountain Operations 99 3.1 2.7 -0.4 -13%

Michel Creek upstream of Elkview Operations 105 1.3 1.3 0.03 2%

Michel Creek at the mouth 113 6.8 11 3.9 57%

Elk River downstream of Greenhills Operations 107 1.1 1.1 0.02 1%

Elk River downstream of Fording River 107 8.7 8.9 0.21 2%

Elk River downstream of Michel Creek 216 5.9 6.8 0.89 15%

Elk River at the mouth 113 3.4 4.1 0.71 21%

(a) Locations correspond to the key assessment nodes shown in Figure 1-1.

(b) All except for 3 of the 42 samples at Fording River downstream of Clode Creek are from 2009 – 2010.

(c) A positive mean percentage error indicates a tendency for the model to over-predict the selenium concentrations at the particular location in question compared to the historically observed concentrations.

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Figure 2-1 Comparison Between Observed and Simulated Selenium Concentrations at the Mouths of the Fording and Elk Rivers: 2004-2010

(a) Fording River at the mouth

(b) Elk River at the mouth

2.2 PREDICTING FUTURE CONDITIONS WITH AND WITHOUT MITIGATION

The valley-wide water quality planning tool that was developed and calibrated as described in Section 2.1 was used to predict future selenium releases from each operation. For each operation, future predictions of selenium releases and in-stream concentrations in local watercourses directly affected by the operation were initially simulated without any additional selenium management measures (i.e., no mitigation beyond what is already in place). The mining projects considered in these simulations included those identified in Section 1.3.

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The simulated future predictions for the no-mitigation scenario were then used to identify the level of reduction needed at each operation to maintain selenium loading rates at or below 2010 levels and, where relevant at an operation-specific level, to meet the design targets described in Table 1-2. A 2010 loading target was used only for the development of initial operation-specific selenium management plans. Once the operation-specific plans were integrated into the Valley-wide Se Plan, focus shifted to the concentration-based design targets listed in Table 1-2. The concentration design target of 30 µg/L for the upper Fording River was relevant for FRO, because it is the only operation that influences selenium concentrations in the Fording River upstream of Porter Creek. Similarly, the design target for Michel Creek was relevant for EVO, because it is the primary source of selenium loading to Michel Creek.

Once the target loading level was identified, currently viable measures that could be suitable for implementation at each operation to achieve this loading target were developed. Measures were screened so that only those that would not pose prohibitive technical and safety concerns were carried forward for further consideration. Then, various selenium management scenarios for each mine operation were developed using different combinations of the identified measures (e.g., treatment facilities of varying capacity and number, active treatment combined with clean water diversion and active treatment on its own). Each scenario was evaluated with the water quality planning tool. Each scenario’s ability to meet or exceed the target loading reductions, and its influence on in-stream selenium levels relevant at an operation-specific level, were quantified. These results were then used to develop operation-specific selenium management plans for each operation, as described below.

2.3 DEVELOPMENT OF OPERATION-SPECIFIC PLANS

For each mine operation, results from the future predictions were used to determine the scenario that provides the best overall performance using a decision-support process. The decision-support process was developed based on the multi-criteria decision analysis methodology (Belton and Stewart 2003; Keeney and Raiffa 1976). The decision-support process was designed to be in general agreement with the Panel’s recommendation concerning the need for a structured decision-making framework in dealing with the selenium issue in the Elk Valley (SAPSM 2010). The decision-support process was also developed to help provide a clear and transparent means for evaluating currently viable options for selenium management in the Elk Valley and future modifications that may be incorporated into later versions of the Valley-wide Se Plan.

The decision-support process is not documented in this summary report, but will be presented as Teck engages with communities of interest following release of this report. Like the Valley-wide Se Plan itself, the decision-support process will evolve as Teck engages communities of interest and incorporates their feedback into decision-support.

Scenarios that were evaluated using the decision-support process were those that could maintain selenium loading rates at or below 2010 levels and that could meet the design targets presented in Table 1-2 (where relevant), with the minimum level of active water treatment. These scenarios were evaluated using a set of environmental, socio-economic, technical and project economic criteria. The optimal scenario identified for each site was generally the one that provided the best performance in all four

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categories. These optimal scenarios formed the basis of the preliminary operation-specific selenium management plans that were constructed for each site and which were combined, as describe below, to create the first version of the Valley-wide Se Plan.

2.4 VALLEY-WIDE INTEGRATION AND OPTIMIZATION

The preliminary operation-specific scenarios were combined into a single valley-wide plan, the performance of which was assessed using the water quality planning tool. The valley-wide plan was then optimized to determine the lowest level of active water treatment necessary to meet the design targets, accounting for synergies across the four operation-specific plans. Commissioning dates were also assigned to all AWTFs. The commissioning dates were chosen to achieve the following objectives:

reflect the previously planned commissioning dates of Phase I of the West Line Creek Selenium AWTF (Q2 2014) and of Phase I of the FRO South Selenium AWTF (2016);

initially reach the design targets as quickly as possible, and then maintain the in-stream concentrations below the design targets thereafter; and

have no more than one AWTF commissioned each year to avoid the complexity of managing multiple AWTF construction projects at one time.

This work produced the first version of the Valley-wide Se Plan, which is described in Section 3.

2.5 SENSITIVITY ANALYSIS

A sensitivity study was completed to evaluate how variations in flow and changes to the values assigned to key input assumptions in the water quality planning tool could affect the performance of the first version of the Valley-wide Se Plan. Specifically, the performance of the plan was examined to evaluate the influence of the following:

variable flow conditions to account for the year-to-year fluctuations in stream flows (i.e., wet and dry years);

changes to the rate of selenium release from future waste rock; and

changes to the rate of leakage assumed to occur in the systems that will be used to convey mine-affected water (i.e., spoil discharge) to the AWTFs.

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3 ACTION PLAN

3.1 OVERVIEW AND EXPECTED PERFORMANCE UNDER DESIGN CONDITIONS

The first version of the Valley-wide Se Plan involves the construction and operation of six AWTFs, currently planned for commissioning in a total of 11 phases. As outlined in Table 3-1, the planned AWTFs range in size from a treatment capacity of 7,500 to 60,000 m3/day, with the larger AWTFs being installed in two phases at FRO and EVO. The total installed treatment capacity in the first version of the Valley-wide Se Plan is 162,500 m3/day, which represents a substantial investment in treatment infrastructure in the Elk Valley.

As previously noted, Phase I of the West Line Creek Selenium AWTF is already under construction and planning is underway for the FRO South Selenium AWTF. Although the FRO South Selenium AWTF is identified in Table 3-1 as being constructed in two phases, initial work by the detailed design team suggests that it is likely to be more efficient to build the entire facility in a single phase. This change will be reflected in future versions of the Valley-wide Se Plan if this efficiency is confirmed through further analysis.

Similar changes to the sizing, phasing and timing of the other AWTFs may occur as the detailed design of those facilities is initiated, and as Teck gains experience with the operation of the West Line Creek Selenium AWTF. In addition, other treatment technologies may be used in place of the FBR technology, provided they can achieve an equal or better rate of selenium removal and are cost effective. Any such changes will be reflected in future versions of the Valley-wide Se Plan and communicated to communities of interest.

Predicted monthly selenium concentrations at key locations in the Elk Valley with the implementation of the first version of the Valley-wide Se Plan are provided in Figure 3-1 (red lines) For comparison, predicted concentrations without mitigation are also shown in Figure 3-1 (blue lines), along with the recommended EMLs and in-stream design targets.

The results presented for average flow conditions show that the first version of the Valley-wide Se Plan is projected to result in a substantial reduction in selenium concentrations in the Fording and Elk Rivers and in Lake Koocanusa, and will maintain selenium concentrations at or below the target design concentrations and recommended EMLs following the implementation of mitigation. The expected date by which the design targets and EMLs will be met is summarized by key location in Table 3-2.

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Table 3-1 First Version of the Valley-wide Selenium Management Action Plan

Site(a) Total

Treatment Capacity

Description of the Active Water Treatment Facility (AWTF)

Additional Measures Required

Fording River Operations (FRO)

65,000 m3/day

South Selenium AWTF (treats Swift/Cataract, Kilmarnock and Porter creeks):

15,000 m3/day in 2016 (Phase 1) 5,000 m3/day in 2020 (Phase 2)(b)

North Selenium AWTF (treats North Spoil, Clode Creek and Swift Pit):

25,000 m3/day in 2019 (Phase 1) 20,000 m3/day in 2025 (Phase 2)

None (except for Kilmarnock Diversion, which is already in place)

Greenhills Operations (GHO)

15,000 m3/day

GHO Selenium AWTF (treats West Spoil and upper Greenhills Creek):

15,000 m3/day in 2018

Diversion of South Pit water to the mouth of Leask Creek

Line Creek Operations (LCO)

22,500 m3/day

West Line Creek Selenium AWTF: 7,500 m3/day in 2014 (Phase 1) 7,500 m3/day in 2022 (Phase 2)

Dry Creek Selenium AWTF: 5,000 m3/day in 2023 (Phase 1) 2,500 m3/day in 2055 (Phase 2)

Clean water diversion of Upper Line Creek

Conveyance of Dry Creek spoil discharge to the Fording River

Elkview Operations (EVO)

60,000 m3/day

Main Selenium AWTF (treats Gate, Bodie, and Erickson creeks):

30,000 m3/day in 2017 (Phase 1) 30,000 m3/day in 2021 (Phase 2)

None

(a) A treatment facility is not required at Coal Mountain Operations (CMO), because it does not yet contribute a significant amount of selenium to the Elk Valley, nor is it expected to be, based on its 2011 Life of Mine Plan. The CMO Marten Wheeler Project, which will be included in upcoming life of mine plans, is expected to be a larger source of selenium to the Elk Valley, and its effect on the Valley-wide Plan will be evaluated in Q1 2013.

(b) Although the FRO South Selenium AWTF is currently shown as a two-phase facility, initial work by the detailed design team suggests that it is likely to be more efficient to build the entire facility in a single phase. This change will be reflected in future versions of the Valley-wide Se Plan if it is confirmed through further analysis.

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Table 3-2 Date When In-Stream Selenium Concentrations Will Be at or Below Selenium Environmental Management Levels and Design Targets

Location

Proposed Environmental Management Level

Design Target

Value [µg/L](a)

Date Met(b) Value [µg/L]

Date Met(b)

Fording River downstream Porter Creek 43 2019 30 2020

Fording River at the mouth 43 2014 30 2016

Elk River downstream of Fording River 17 2016 10 2019

Michel Creek at the mouth 17 2017 10 2021

Elko Reservoir –(c) n/a 5 2022

Elk River at the mouth 17 always met 5 2018

Lake Koocanusa 2(d) always met(e) 2 always met(e)

(a) From Teck (2013).

(b) Date when the proposed environmental management levels or design target is projected to be met under design

conditions (i.e., average flows). (c)

An environmental management level for Elko Reservoir has not yet been defined. In its absence, a design target of 5 ug/L has been used, with a secondary goal of maintaining predicted concentrations at or below the minimum concentration historically observed in this system (i.e., below 5.8 ug/L).

(d) An environmental management level has not been defined for Lake Koocanusa; selenium levels are being managed

to meet the BC water quality guideline for the protection of aquatic life. (e)

Although predicted selenium concentrations in Lake Koocanusa are projected to be slightly above 2 µg/L prior to the commissioning of the West Line Creek Selenium Active Water Treatment Facility in 2014 (see Figure 3-1), selenium concentrations in excess of 2 µg/L are not expected to occur, because of the tendency of the water quality model to overpredict in-stream concentrations in regional systems (see Section 2.1)..

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Figure 3-1 Historical and Projected Selenium Concentrations at Key Locations in the Elk Valley

(a) Fording River downstream of Porter Creek

(b) Fording River at the mouth

(c) Elk River downstream of Fording River

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Valley-wide Selenium Management Action Plan Summary Report Figure 3-1 Historical and Projected Selenium Concentrations at Key

Locations in the Elk Valley (continued)

February 2013 17

(d) Michel Creek at the mouth

(e) Elk River downstream of Michel Creek

(f) Elko Reservoir

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Valley-wide Selenium Management Action Plan Summary Report Figure 3-1 Historical and Projected Selenium Concentrations at Key

Locations in the Elk Valley (continued)

February 2013 18

(g) Elk River at the Mouth

(h) Main basin of Lake Koocanusa

Notes: EML = Environmental Management Level; BC WQG = British Columbia water quality guideline for the protection of

aquatic life for selenium.

An EML for Elko Reservoir has not yet been defined.

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3.2 RESULTS OF THE SENSITIVITY ANALYSIS 3.2.1 Sensitivity to Variable Flow Conditions

The first version of the Valley-wide Se Plan was developed with the objective of meeting design targets and EMLs under average predicted flow rates in the Elk River and its tributaries. As flows will vary from year to year, the predicted performance of the plan was evaluated first under 1-in-10 year high monthly average flow conditions and then under 1-in-10 year low monthly average flow conditions. In both cases, the high or low flow conditions were assumed to repeat year after year. These scenarios are not intended to represent a realistic annual condition, because no year would be expected to consist entirely of 1-in-10 year monthly high or low flows; however, they do serve to show the sensitivity of the Valley-wide Se Plan to a large range of flow conditions.

Under high flow conditions, the predicted maximum monthly selenium concentrations exceed the design targets in the Fording River, Michel Creek, Elko Reservoir and the Elk River (Figure 3-2). However, they remain below the recommended EMLs following the implementation of mitigation.

Under low flow conditions, the predicted maximum monthly selenium concentrations are less than the design targets and the recommended EMLs. These results indicate that the Valley-wide Se Plan is sufficiently robust, in that it is expected to produce in-stream concentrations that are at or below the recommended EMLs under variable flow conditions.

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Figure 3-2 Sensitivity of the Valley-wide Selenium Management Action Plan to Variable Flow Conditions

(a) Fording River downstream of Porter Creek

(b) Fording River at the mouth

(c) Elk River downstream of Fording River

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Valley-wide Selenium Management Action Plan Summary Report Figure 3-2 Sensitivity of the Valley-wide Selenium Management Action Plan

to Variable Flow Conditions (continued)

February 2013 21

(d) Michel Creek at the mouth

(e) Elk River downstream of Michel Creek

(f) Elko Reservoir

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Valley-wide Selenium Management Action Plan Summary Report Figure 3-2 Sensitivity of the Valley-wide Selenium Management Action Plan

to Variable Flow Conditions (continued)

February 2013 22

(g) Elk River at the Mouth

(h) Main basin of Lake Koocanusa

Notes: EML = Environmental Management Level; BC WQG = British Columbia water quality guideline for the protection of

aquatic life for selenium.

An EML for Elko Reservoir has not yet been defined.

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3.2.2 Sensitivity to Changes in Selenium Release Rates

The first version of the Valley-wide Se Plan was developed using a calibrated water quality model. As discussed in Section 2.1, the calibration process involved a watershed-by-watershed analysis. When simulating future conditions, the calibrated selenium release rate defined for each watershed was applied to all future waste rock placed in that watershed.

To evaluate how a change to future selenium release rates could affect the performance of the plan, two model scenarios were run under average flow conditions. The first scenario was set up such that all future waste rock placed in any watershed would release selenium at a rate equivalent to the valley-wide average rate defined by SRK (2012). The second scenario considered a higher selenium release rate, with all future waste rock placed in any watershed releasing selenium at a rate equivalent to 150% of the valley-wide average rate defined by SRK (2012).

As shown in Figure 3-3, when the average valley-wide selenium release rate was used, predicted maximum concentrations exceed the design targets in the Fording River and Elko Reservoir, but they remain below the recommended EMLs. When using a value equivalent to 150% of the average valley-wide selenium release rate, predicted in-stream concentrations follow a similar trend. They tend to be higher than the design targets at most locations; however, they are predicted to remain below the recommended EMLs. These results suggest that the Valley-wide Se Plan should be able to meet its objectives after accounting for a reasonable degree of uncertainty in selenium release rates from future waste rock.

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Figure 3-3 Sensitivity of the Valley-wide Selenium Management Action Plan to Different Rates of Selenium Release from Future Waste Rock

(a) Fording River downstream of Porter Creek

(b) Fording River at the mouth

(c) Elk River downstream of Fording River

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Valley-wide Selenium Management Action Plan Summary Report Figure 3-3 Sensitivity of the Valley-wide Selenium Management Action Plan

to Different Rates of Selenium Release from Future Waste Rock (continued)

February 2013 25

(d) Michel Creek at the mouth

(e) Elk River downstream of Michel Creek

(f) Elko Reservoir

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Valley-wide Selenium Management Action Plan Summary Report Figure 3-3 Sensitivity of the Valley-wide Selenium Management Action Plan

to Different Rates of Selenium Release from Future Waste Rock (continued)

February 2013 26

(g) Elk River at the Mouth

(h) Main basin of Lake Koocanusa

Notes: EML = Environmental Management Level; BC WQG = British Columbia water quality guideline for the protection of

aquatic life for selenium.

An EML for Elko Reservoir has not yet been defined.

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3.2.3 Sensitivity to Changes in Leakage Rates

The first version of the Valley-wide Se Plan was developed using an estimated 5% rate of leakage in the systems that will be used to collect and convey waste spoil discharge to the planned AWTFs. The 5% leakage rate corresponds to that used in the revised selenium management plan for Dry Creek (Teck 2013b). To evaluate how a higher rate of leakage could affect the performance of the Valley-wide Se Plan, two model scenarios were run under average flow conditions. The first scenario considered a leakage rate of 10%, and the second scenario considered a leakage rate of 15%. An average leakage rate of 15% is considered to be a conservative upper bound estimate.

As shown in Figure 3-4, when leakage rates were increased to 10%, predicted maximum monthly selenium concentrations in the upper Fording River and in Elko Reservoir are higher than the design targets. However, predicted concentrations in the upper Fording River remain below the recommended EML and those in Elko Reservoir remain below currently observed concentrations.

At a leakage rate of 15%, selenium concentrations in Michel Creek are predicted to exceed design targets, as are those in the upper Fording River and Elko Reservoir (Figure 3-4). However, predicted in-stream concentrations throughout the system are still expected to remain below the recommended EMLs, while predicted concentrations in Elko Reservoir fall within the range of those currently observed in this waterbody.

These results indicate that the Valley-wide Se Plan should be able to meet its objectives if leakage rates from water conveyance systems are between 5% and 15%. The objective for each AWTF will be to minimize seepage losses from structures used to collect and convey spoil discharge by applying industry standard practices that are applicable for the site-specific conditions.

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Figure 3-4 Sensitivity of the Valley-wide Selenium Management Action Plan to Changes to Leakage Rates from the Collection Systems Used to Convey Mine-Affected Water to the Treatment Facilities

(a) Fording River downstream of Porter Creek

(b) Fording River at the mouth

(c) Elk River downstream of Fording River

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Valley-wide Selenium Management Action Plan Summary Report Figure 3-4 Sensitivity of the Valley-wide Selenium Management Action Plan

to Changes to Leakage Rates from the Collection Systems Used to Convey Mine-Affected Water to the Treatment Facilities (continued)

February 2013 29

(d) Michel Creek at the mouth

(e) Elk River downstream of Michel Creek

(f) Elko Reservoir

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Valley-wide Selenium Management Action Plan Summary Report Figure 3-4 Sensitivity of the Valley-wide Selenium Management Action Plan

to Changes to Leakage Rates from the Collection Systems Used to Convey Mine-Affected Water to the Treatment Facilities (continued)

February 2013 30

(g) Elk River at the Mouth

(h) Main basin of Lake Koocanusa

Notes: EML = Environmental Management Level; BC WQG = British Columbia water quality guideline for the protection of

aquatic life for selenium.

An EML for Elko Reservoir has not yet been defined.

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3.3 IMPLEMENTATION SCHEDULE

The first version of the Valley-wide Se Plan involves the construction and operation of six AWTFs, currently planned for commissioning in 11 phases. The timing for commissioning of the AWTFs is shown graphically in Figure 3-5 along with the modelled concentrations with a Valley-wide Se Plan at the Elk River downstream of Michel Creek immediately below the influence of all of Teck’s operations in the Elk Valley.

Figure 3-5 Commissioning Schedule for the Selenium Active Water Treatment Facilities in the Elk Valley and Predicted Concentrations in Elk River downstream of All Teck Operations

Note: Year that each selenium active water treatment facility is scheduled for commissioning is shown as a vertical

dashed line. LCO = Line Creek Operations; FRO = Fording River Operations; EVO = Elkview Operations; GHO = Greenhills Operations.

The design and permitting of each phase of the planned AWTFs, including the completion of the scoping, pre-feasibility and feasibility studies that are required to support this work, is an undertaking that is expected to take approximately 18 months to complete. Construction and commissioning is then expected to require an additional 23 to 30 months, for a total lead time requirement of approximately 41 to 48 months, or three and half to four years, between the beginning of design to the start of full-scale operation. These time requirements may be longer for AWTFs with more complex designs or larger treatment capacities.

Given these lead times and the volume of work that is required to support the design and construction of an AWTF, effective implementation of the Valley-wide Plan will require concerted and coordinated effort by Teck, the responsible government agencies and other communities of interest, because, as shown in Table 3-3, there are a number of activities that are planned over the next 10 years in support of the Valley-wide Plan.

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Table 3-3 Summary of Design, Permitting, Construction and Operation Activities that are Planned Between 2013 and 2023, as Required to Implement the Valley-wide Selenium Management Action Plan

Plant Date(a)

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Fording River Operations (FRO)

FRO South Selenium AWTF - Phase 1

Design and permitting

Construction

Operation

FRO South Selenium AWTF - Phase 2

Design and permitting

Construction

Operation

FRO North Selenium AWTF - Phase 1

Design and permitting

Construction

Operation

Greenhills Operations (GHO)

GHO Selenium AWTF

Design and permitting

Construction

Operation

Line Creek Operations (LCO)

LCO West Line Creek Selenium AWTF - Phase 1

Design and permitting

Construction

Operation

LCO West Line Creek Selenium AWTF- Phase 2

Design and permitting

Construction

Operation

LCO Dry Creek Selenium AWTF - Phase 1

Design and permitting

Construction

Operation

Elkview Operations (EVO)

EVO Selenium AWTF - Phase 1

Design and permitting

Construction

Operation

EVO Selenium AWTF - Phase 2

Design and permitting

Construction

Operation (a) Overlap between design and permitting and construction activities, and between construction and operation, indicate

years when one stage is expected to end and the other to begin.

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4 ADAPTIVE MANAGEMENT

Within the context of the Valley-wide Se Plan, adaptive management will consist of regularly updating the plan to account for the following:

changes to mine planning and LOM plans;

operational experience with different selenium management measures;

results from applied R&D efforts;

results from in-stream monitoring;

refined or updated water quality model predictions of plan performance; and

feedback from communities of interest.

Two elements of this adaptive management framework, those being monitoring and the transfer of information from the applied R&D program, are discussed in more detail below, followed by a brief discussion of how frequently the Valley-wide Plan is likely to be updated.

4.1 MONITORING

Monitoring is a critical element of adaptive management. As part of the Valley-wide Se Plan, Teck will monitor the effectiveness of each AWTF and collect sufficient in-stream water quality data to evaluate if the plan as a whole is achieving its objective of maintaining selenium concentrations in the Elk and Fording rivers below recommended EMLs. A brief description of the planned monitoring activities is outlined below.

4.1.1 Selenium Management Measures

This first version of the Valley-wide Se Plan relies on active water treatment as the key selenium management measure in mitigating the release of selenium from Teck’s mine operations in the Elk Valley. Teck will prepare a monitoring plan for each AWTF during its design and permitting. Consistent with the monitoring program included in the provincial permit application for Phase I of the West Line Creek Selenium AWTF (Teck 2012d), monitoring activities completed around each AWTF are likely to include measurement of the following:

daily flow from each source of water being conveyed to the AWTF in question;

daily flow bypassing the facility;

incoming concentrations of selenium, nitrate and other substance in each source water;

incoming selenium and nitrate loading rates reporting to the AWTF from each water source;

load of selenium and nitrate bypassing the AWTF;

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outgoing flow from the facility;

concentrations of selenium and nitrate and other parameters in the AWTF outflow;

load of selenium and nitrate released from the AWTF;

loading and concentration reductions achieved by the AWTF, on an average monthly, seasonal and/or annual basis; and

how facility performance compares to its design criteria.

Additional monitoring will likely be conducted, if and as required, within the treatment facility to determine the effectiveness of individual process units. In addition, spot measures of water flow will likely be taken at local monitoring sites where water quality samples are to be collected. Auxiliary water management facilities, such as gates, debris traps, inlet and outlet structures, will also be inspected regularly for debris, erosion and hydraulic stability.

4.1.2 Receiving Environment

Teck is developing an Aquatic Effects Monitoring Program (AEMP) for the Elk Valley. It will provide a comprehensive assessment of mine-related effects on water quality and representative aquatic biota within the Elk River watershed where Teck’s operations are located. Potential inclusion of sediment monitoring is also being evaluated. The AEMP will be designed to detect and quantify where effects of mine operations are occurring, separately and cumulatively, based on comparisons to reference conditions, EMLs, environmental guidelines and/or other benchmarks, as appropriate. The AEMP will also monitor changes in conditions over time to evaluate the effectiveness of Teck’s environmental management actions.

Specific to the Valley-wide Plan, the AEMP will evaluate the effectiveness of the plan at achieving its objectives through the use of water chemistry and flow data collected as part of existing provincial permits or as part of the sampling efforts completed under the AEMP itself. Effects of the selenium on aquatic biota and other sensitive organisms will also be monitored as part of the AEMP.

The AEMP work plan is scheduled to be finalized in 2014, with the monitoring program fully implemented in 2015. Water quality sampling in Lake Koocanusa will begin in 2013.

4.2 APPLIED RESEARCH AND DEVELOPMENT, AND TECHNOLOGY TRANSFER

Teck has embarked on an integrated, applied R&D program that:

supports development of sound management plans such that mine design changes can be made now to maintain watershed function in perpetuity at all of Teck’s coal mining operations; and

generates innovative solutions to water management and watershed issues.

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This multi-year, multi-disciplinary program has the following overarching objectives:

to identify and develop new technologies and techniques to manage water, selenium and other substances of potential concern using science to assist decision-making; and

to communicate the results of this program broadly through a rapid technology-transfer process.

The program involves technology testing studies that demonstrate performance at field pilot, prototype and commercial scales, and that results of watershed function are demonstrated at dump, mine and watershed scales. Projects within the program will be undertaken at all five of Teck’s mine operations in the Elk Valley, at Teck’s Cardinal River Operations near Hinton, Alberta, and possibly at Teck’s coal properties in the Tumbler Ridge region of British Columbia. The development and implementation of various forms of technology transfer, including but not limited to training, manuals, and recommendations for improvements to numerical models used for design and planning, are a core focus of the research synthesis and technology transfer process.

Research program results are reviewed annually to evaluate whether sufficient certainty has been achieved to incorporate into practice, and to determine what further work needs to be done to achieve sufficient certainty to support full-scale application. The time required between formulating a research question and work plan and the full-scale application of the results is anticipated to range from greater than six months (i.e., best case results from a pilot-scale test) to greater than five years (e.g., developing new spoil design guidelines).

The technologies and techniques to be advanced fall into two main categories;

mine design and water management strategies to manage substances of potential concern; and

water treatment technology.

Each of these categories is discussed in more detail below.

4.2.1 Applied Research and Development to Support Mine Design and Mine Planning

Applied R&D to support improved mine design and mine planning is expected to result in technologies that could improve the performance of the Valley-wide Se Plan as well as the management of other substances of potential concern. The Applied R&D Program focusses on seven areas. A brief description of each of these focal areas is provided below.

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Focal Area 1: Ex-pit waste rock dump design and management: new and legacy landforms

This focal area addresses the scientific and engineering uncertainties that underlie the questions:

How can new waste rock dumps (unsaturated or saturated) be designed to reduce the release of selenium and other substances to the lowest level feasible?

How would Teck evaluate legacy dump performance? What criteria would Teck use to assess legacy dumps? How would Teck manage these dumps to minimize the release of substances of potential concern?

Focal Area 2: Water balances for water management decisions

This focal area addresses the scientific and engineering uncertainties that underlie the questions:

How do water management processes affect the release of substances of potential concern?

How would Teck maximize the effectiveness of water management/minimize releases?

Focal Area 3: Rock drain design and operation

This focal area addresses the scientific and engineering unknowns that underlie the question:

How do rock drains affect the release of selenium and other substances of potential concern?

Focal Area 4: Saturated zone design and operation

This focal area addresses the scientific and engineering unknowns that underlie the question:

How effective are designed saturated zones in managing releases of selenium and other substances of potential concern, and what are the implications for overall water management?

Focal Area 5: Reclamation and Se management

This focal area addresses the scientific and engineering unknowns that underlie the questions:

How do reclamation options affect release of selenium and other substances of potential concern?

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How do they perform in meeting the other reclamation objectives and what, if any, are the trade-offs between potentially competing goals?

Focal Area 6: Mine Developed Water Bodies

This focal area addresses the scientific and engineering unknowns that underlie the question:

How can mine-developed waterbodies (pit lakes or other) be used to manage releases of selenium and other substances of potential concern?

Focal Area 7: Calcite

In support of ongoing calcite monitoring and management initiatives, research projects will be developed to support calcite management initiatives.

Focal Area 8: Nitrates

Similar to the calcite focal area, research projects in support of nitrate management initiatives will be developed to address key questions, such as:

What is the effectiveness of explosives (nitrates) management on minimizing release of nitrates?

What are follow-on effects to water treatment/selenium release?

4.2.2 Research and Development Related to Active Water Treatment

Teck is currently constructing the West Line Creek Selenium AWTF using FBR technology. As previously discussed, this technology is commercially proven for selenium removal, and has been successfully piloted by Teck at LCO. FBR technology will also treat for nitrate, a second substance of potential concern in the Elk Valley.

Teck recognizes that FBR technology is not the only technology that can be used to treat for selenium, and Teck is evaluating a suite of additional technologies (see Table 4-1) that show promise but that require further investigation prior to full scale implementation. The evaluation process will likely consist of:

technology review/consultation with treatment experts;

bench scale testing; and

pilot testing.

At each stage, Teck will evaluate the merit of advancing the technology to the next stage and, eventually to full scale implementation, if warranted. Factors that will be considered when evaluating whether a technology is ready for full scale implantation will include:

pilot and other performance results (i.e., demonstrated ability that the technology can be used to meet the objectives of the Valley-wide Se Plan);

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capital and operating costs; and

the sustainability of the process, including the ultimate fate of the waste streams it generates.

The alternatives outlined in Table 4-1 offer a variety of differences from FBR that may be advantageous to Teck in the future, since a considerable investment in treatment infrastructure is required by the Valley-wide Se Plan and in anticipation of needing to consider other substances of potential concern. Some of the technologies under consideration are new water treatment methods, while others represent alternatives to specific components of the FBR treatment process, as it is being implemented at the West Line Creek Selenium AWTF.

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Table 4-1 Alternative Treatment Technologies Being Considered for Further Investigation

Technology Purpose Comments Scope of

Investigation

1. Reverse Osmosis

Treatment of multiple substances of potential concern

Initially nominated for the removal of sulphate, this technology removes all ions. Reconstitution of the treated water to support healthy aquatic ecosystem is a concern.

Pilot

2. Nano-Filtration Treatment of sulphate and other ions

Initially nominated for the removal of sulphate, this technology removes many ions. Reconstitution of the treated water to support healthy aquatic ecosystem may be less of a concern than for reverse osmosis.

Pilot

3. Ultra-Filtration

Control of phosphorus levels in the treated effluent

Potential replacement for the continuous backwash filters currently included in FBR treatment train for the purpose of reducing effluent phosphorus levels.

Pilot

4. Continuous Backwash Sand Filtration

Control of phosphorus levels in the treated effluent

Included in the current design for the West Line Creek Selenium AWTF. Piloted to establish base comparison with ultra-filtration.

Pilot

5. Electro-Dialysis Reversal

Treatment of multiple substances of potential concern

Initially nominated for the removal of selenium, this technology removes all ions but not to the very low levels produced by reverse osmosis. Reconstitution of the treated water to support healthy aquatic ecosystem concern not likely to be a concern.

Pilot

6. Contactor Beds Calcium treatment

Cold lime softening is the traditional method to prevent calcite scaling and deposition, but it produces a large volume of undesirable waste. Contactor beds may be effective in removing calcium and generate a more preferable waste product.

Pilot

7. Ion Exchange Selenium treatment

Ion removal systems are traditionally non-selective and therefore prohibitively expensive. Resin development may have established a selenium selective approach.

Bench, with potential promotion to pilot if successful

8. Electro Coagulation

Treatment of multiple substances of potential concern

Shows potential as a selective ion removal system for individual substances of potential concern.

Bench, with potential promotion to pilot if successful

9. Electro Enhanced Bioreactor

Nitrate and selenium treatment

Potential to reduce the capital and operating costs of active biological treatment.

Bench, with potential promotion to pilot if successful

10. Liquid Ion Exchange (LLX)

Brine management Thermal concentration is the conventional approach to brine management. LLX may represent a more cost efficient alternative.

Bench

11. Ettringite Brine management Thermal concentration is the conventional approach to brine management. Ettringite may represent a cost efficient alternative.

Bench

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4.3 PLAN REVISIONS

The Valley-wide Se Plan is intended to be a living document that will be updated regularly to reflect current mine plans, monitoring results, operational experience, feedback from communities of interest and the other items previously identified. The scope of the Valley-wide Se Plan will also likely be expanded over time to consider other substances of potential concern, such as sulphate and cadmium. In doing so, the Valley-wide Se Plan will evolve into a valley-wide water quality management action plan.

It is anticipated that the Valley-wide Se Plan will be updated approximately every three years to coincide with the three-year reporting cycle for the AEMP, or in advance of major project applications not previously accounted for in the current version of the plan.

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5 CLOSURE

This document provides a summary of the first version of a Valley-wide Se Plan for Teck operations in the Elk Valley. The plan has been developed to meet the goals of stabilize and reversing the selenium trend and managing selenium within ecological limits. Ecological limits are defined by maintaining water quality in Lake Koocanusa below the current BC water quality guideline of 2 µg/L and meeting site-specific EMLs in the Elk and Fording rivers that are protective of aquatic life and other sensitive organisms.

The Valley-wide Se Plan will be a living document that will be updated periodically to reflect changes in selenium management and control technologies, refinement of EMLs, updates to future mine plans, monitoring results and feedback from communities of interest.

With release of the Valley-wide Se Plan, Teck will engage communities of interest by presenting and receiving feedback on the plan. A detailed report for the Valley-wide Se Plan is also being prepared and will be released by the end of 2013.

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6 REFERENCES Belton, V. and T.J. Stewart. 2003. Multiple Criteria Decision Analysis: An Integrated

Approach. Kluwer Academic Publishers, Norwell, Massachusetts.

Dessouki, T.C.E. and A. Ryan. 2010. Water Quality Assessment of the Kootenay, Elk and St. Mary Rivers. BC Ministry of Environment and Environment Canada, Victoria. March 2010

Keeney, R. L. and H. Raiffa. 1976. Decisions with Multiple Objectives: Preferences and Value Tradeoffs. John Wiley, New York.

SAPSM (Strategic Advisory Panel on Selenium Management), 2010. The Way Forward: A Strategic Plan for the Management of Selenium at Teck Coal Operations. 233 pp.

SAPSM (Strategic Advisory Panel on Selenium Management), 2011. Continuing the Journey: Toward Sustainable Management of Selenium at Teck Coal Operations. 23 pp.

Spirogyra Scientific Consulting. 2009. Survey of Selenium in Water, Zooplankton and fish in Lake Koocanusa, British Columbia, 2008. Prepared for Environmental Protection, Kootenay Region, British Columbia Ministry of Environment on behalf of the Elk Valley Selenium Task Force. July 2009.

SRK (SRK Consulting Inc.). 2012. Interpretation of Teck Coal Line Creek Operations Data to Estimate Waste Rock Release Rates, Update – DRAFT. August 2012.

Teck (Teck Coal Limited). 2011. Line Creek Operations Phase II Project Environmental Assessment Certificate Application. Submitted to the British Columbia Environmental Assessment Office. Issued December 2011, updated February 2012.

Teck. 2012a. Water Quality Database Maintained by Greenhills Operations.

Teck. 2012b. Water Quality Database Maintained by Line Creek Operations.

Teck. 2012c. Water Quality Database Maintained by Elkview Operations.

Teck. 2012d. Provincial Permitting Package – West Line Creek Selenium Active Water Treatment Facility Phase I. Submitted to BC Environmental Assessment Office May 18, 2012.

Teck. 2013a. Proposed Environmental Management Levels (EMLs) for Selenium for the Fording and Elk Rivers and Lake Koocanusa. Submitted to the British Columbia Environmental Assessment Office. 2013.

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Teck. 2013b. Revised Selenium Management Plan for Dry Creek – LCO Phase II Project Environmental Certificate Application, Teck Coal Limited – Line Creek Operations. Letter to Ms. Christie of the British Columbia Environmental Assessment Office dated January 18, 2013 from K. Podrasky, Teck Coal Limited.