Murray River Project Update Coal Forum October 2013
Disclaimer: Our HD Lawyer did not review this presentation.
Murray River Project • HD Mining International Inc. (HD Mining) is proposing to develop the Murray River property located 12.5 km south of Tumbler Ridge, British Columbia. • HD Mining’s proposed Murray River Project will be an underground mine with an annual production of six million tonnes of metallurgical coal over 31 years. • The Project will provide about 600 direct jobs and 700 indirect jobs. • The Project’s estimated capital cost is $300 million Canadian dollars. • Once operational the project will create approximately $90 million of revenue for government annually totalling$2.7 billion over the life of the project
Murray River Project • Surface facilities will include a mine portal, coal handling and preparation plant, coal rejects pile, a rail load-out facility and administrative & maintenance buildings. • The proposed Project is a reviewable project under the BC Environmental Assessment Actand the Canadian Environmental Assessment Act.
Murray River Project HD Mining will be utilizing a long-wall mining method. Advantages of this method include: • Safety. Long-wall is generally considered safer than other methods. This is because there is minimal manual handling and miners are always under hydraulic roof supports when extracting coal. • Up-to-Date Technology. Many consider long-wall to be technologically superior to other methods. • Expertise. HD Mining’s parent company, China Huiyong Holdings, specializes in long-wall coal mining. • Higher deposit recovery and less waste. The extraction rate of a long-wall operation has a higher extraction rate than a room-and-pillar operation. • Efficiency. HD Mining’s experience shows that a typical fully-mechanized long-wall system is far more efficient in terms of roadway development cost, manpower productivity, and reclamation cost.
Murray River Project HD Mining currently has an approved 100,000 tonne Bulk Sample Permit from the Ministry of Energy and Mines and a Waste Discharge Permit from the Ministry of Environment. For this Bulk Sample, HD Mining has an approved labour market opinion (LMO) from Human Resources and Skills Development Canada (HRSDC) to use Temporary Foreign Workers (TFWs). These TFW’s are approved for a two-year period.
Murray River Project Although HD Mining requires workers experienced in underground mining, this project will has already created and will continue to provide new jobs for Canadians in the following areas: • Ground Surface Preparation • Environmental Management & Environmental Assessment Baseline Information Requirements • Mine Construction and Operation Local jobs have also been created in the District of Tumbler Ridge in : • Facilities / accommodation • Food services • Downtown businesses HD Mining has invested over $50 million to-date in the Murray River Project.
Murray River Project Training HD Mining has signed a Memorandum of Understanding (MOU) with Northern Lights College to develop a training curriculum for long-wall mining. As part of the MOU, Northern Lights College and HD Mining are working to develop a relevant curriculum and simulation models, and identify partners for program infrastructure. Northern Lights College and HD Mining will work with key community partners in the development and delivery of the training. As a Canadian employer, HD Mining is working to transition long-wall mining skills and jobs to Canadian workers.
Murray River Project Housing HD Mining’s goal is to integrate workers with the local community, and to achieve this, HD Mining is developing 43 duplex houses in Tumbler Ridge to house the workers. The cost of this development is over 15M.
Murray River Project Provincial Environmental Assessment Process • A Section 10 order was in issued June 29, 2012. • Section 11 issued issued December 14, 2012. • A public comment period for the draft AiR was held May 21 – June 20, 2013. • The Application Information Requirements (AiR) were approved September 03, 2013.
Murray River Project Canadian Environmental Assessment Act – Current Status • Federal project description accepted April 12, 2013. • The 20 day federal public comment period on the Murray River Coal Project started April 15, 2013 and ended on May 05, 2013. • CEAA’s Environmental Impact Statement (EIS) Guidelines were issued to HD Mining on May 31, 2013.
Murray River Project Current Site Activities • HD Mining has recently received the necessary equipment approvals to start the decline required for the bulk sample program. • There are currently approximately 30 workers on site. • Decline construction is expected to start October 21, 2013.