Environmental regulation supporting the development of mine water management

case Terrafame Mine

PhD student, M.Sc. (Law), B.Sc. (Economic Geology)

Saara Österberg

31.8.2017, EELF 2017 Copenhagen

Content

1. Object and task (2)

2. Methodology (1)

3. Ex post evaluation (1)

4. Case Terrafame (5)

5. Preliminary results of the study (1)

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The object of the research project is to discern the role of environmental regulation in R&D of mine watermanagement during the mine lifecycle through case studies(in Finland)

1. Exploration2. Mine development

3. Mine operation4. Closure

Object and task

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The task of this case study is to analyze how environmental regulation has affected the R&D of mine water management in Terrafame mine through the law enforcement

Environmental permits

1. Regional State EnvironmentalAgency

2. Vaasa Administrative Court3. Supreme Administrative Court

Supervising permits

Centre for Economic Development, Transport and the Environment (ELY)

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Methodology

• qualitative empirical legal research

• case-study: investigating contemporary phenomen within real-life context (Yin 1994)

• in-depth investigation, descriptive analysis:

How environmental regulation has affected the R&D of mine water management in this case?

• Combining the innovation approach (focused in the final product) and the process approach (focused in the R&D process)

to recognize effects of law enforcement on innovations of mine water management

to recognize the interactive mechanism between the law enforcement and the R&D process of the mine

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Ex post evaluation

“The evaluation of existing laws and regulations through

ex post impact analysis is necessary to ensure that they are

effective and efficient.” (OECD 2015)

1. How the innovation goals of environmental regulation concerning themine water management have been achieved in the case Terrafame? (innovation approach)

Vedung´s side-effect model

2. How the effectiveness of environmental decisions has been built on theinteraction between the enforcement authority/court and the miningcompany? (process approach)

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Case Terrafame Mine

• A Finnish multi-metal mining company

• Products: Nickel (NiCoS) Ni 50%,

Zinc (ZnS) Zn 60%, Copper (CuS)

• One of the largest known sulfide Ni/Zn –deposits in Europe

Production methods:

1. Quarrying

2. Crushing

3. Agglomeration

4. Bioheapleaching

5. Metal production

Metal Production (2016)

Nickel 9 554 t (aim 30 000t)Zinc 22 575 t

Total quarrying 14.2 Mt (the annual aim of ore production 18.0 Mt)

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Outsideoperation

Metal Factory

History of Terrafame Mine

• The deposit of Talvivaara was originally found in 1977 by the Geological Survey of Finland (GTK). The sulfide nickel deposit was large but too poor for existing extractive technology

• The mining rights were obtained by Outokumpu Corp. and were sold to mining engineer Pekka Perä in 2003. The testing of bioheapleaching in Ni extraction from black-schist ore of Talvivaara deposit was started earlier and the results were promising

• The Talvivaara Mining Company was established in 2004. The company was listed on the London Stock Exchange in 2007. Environmental permit of the mine was obtained in 2007 and the mining was started in late 2008

• The problems of the Talvivaara Mining Company were cumulated in consequence of the insufficient mine water management, problems in the ramp-up of the full-scale production, uncertainty of the funding and the fall of metal prices. The situation degenerated into social conflict after a leak of mine waste water from a gypsum waste pond in late 2012. The company decided to file for bankruptcy in 2014. State-owned Terrafame Ltd acquired the operations and assets in August 2015

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Mine Wastewater Management System of Terrafame (Simplified)

• Closed water cycle in metal factory (from 2013), no wastewater

• The annual rain and snowmelt means 6-10 Mm3 water to the catchment area of the mine

Water (rain and snowmelt) + outside mining operation + metal-containing soil = wastewater

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The Central WastewaterTreatment Plant

Lime neutralizationBAT, cost-efficient, automatic,

efficent metal precipitation(Before 1/2017 a couple of small lime

neutralization plants)

Reverse Osmosis Plant

Membrane purification processes

forsulphate – containing

water

(2016: 0,7Mm3 pure water)

Water discharge to the Lake Nuasjärvi (pipeline) or nearby watercourse areas (2016: 9,6 Mm3)

Wastewater ponds

Reject with sulphate (2016: 5700t SO4 )

Bioheapleaching process

Metal production

Evaporation

H2O

NeutralizationH2O + Na2SO4

NaFe3+3(SO4)2(OH)6

Administrative Court Decision:

maximum emission of sulphate 12 000 t/year,

1000 t/month in

water discharge

(9/15) *

Supervisory Authority didn´t

allow the additional

discharges as “exceptional situation” in

accordance with Environmental Protection Act,

provision to stop and prevent

discharges (01/16, 04/16)

Administrative Court Decision:

1. TF had to hand over the application

for new Environmental Permit

until 31.8.2017

2. Maximum emission of sulphate

15 000 t /year, 1000 t/month but 2000 t

/month when snowmelt (04/16)

Regional State

Environmental Agency Decision:

The Environmen

tal Permit for the central

wastewater treatment

plant (1/17)

Administrative Court decision:

The decision of Supervisory Authority (1/15) is

overruled. The additional disharges were “the

exceptional situation” in meaning of the

Environmental Protection Act, The decision of Court (9/15)* was contributing to

the situation. (2/17)

Decision of Supreme Administrative Court:

1. The Environmental Permit of the Mine (30.4.2014) has legal

force

2. The permits of the mine water discharge pipeline and the mine

were confirmed to been temporary, valid until

the end of 2018 (as Court 4/16) (5/17)

Terrafamestarted the

mining (08/15), new water-

binding ore to the

bioheapleachingprocess

TF started additional discharges of purified sulphate-containing water from mine site

because of the endangered dam

security (SNOWMELT 12/15)

TF started to lead the

sulphate-containing reject of RO-plant to

the bioheapleaching

(3/16 →)

TF started again additional

discharges because of the endangered

dam security (SNOWMELT 04/16)

TF started the Central

Wastewater Treatment Plant

(1/17)

2016 2017

Mine water management and the law enforcement 08/2015-07/2017

10

4,6Mm3

(10/16)7,3Mm3

(7/16)10,1Mm3

(1/16)

3,8Mm3

(12/16)3,0Mm3

(03/17)

Aim of the water

balance1-3Mm3

Water at mine site

Mine water management and the law enforcement 08/2015-07/2017

The Environmental Permit 2013 (05/2017)

The Environmental Permit 2014 (12/2018)

The Environmental Permit of the discharge pipeline 2015 (12/2018)

The Environmental Permit of the central waste water treatment plant 2017

EIA of the water management 2016-2017

EIA of the mining production 2016-2017

The Environmental Permit 2007

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The mine water management at Terrafame Mine depends on 1.) the water efficiency of the production process and 2.) the use of BAT – purification

technology. The most of R&D is developing the process and produces process innovations. How has it affected the effectiveness of the law enforcement?

Relatively strict limits for sulphate emissions (water discharge) have affected the water management:

▪ negative side-effects: additional discharges in 2015-2016

▪ pressure for better water treatment instead of maximum use of discharge pipeline to achieve better water balance

The impact problem: the goal has been achieved through the development of the bioheapleaching process but because of the strict regulation or because of the efficient production ramp-up?

Preliminary results of the study

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Thank you! + joku kuva

The research is funded by

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Thank you!