KAM KOTIACASE STUDY

A Pragmatic Approachto a Big $ Problem

Dick Cowan/John RobertsonMinistry of Northern Development and Mines

Sudbury, Ontario

Orphaned/Abandoned Mines WorkshopWinnipeg, Manitoba

June 26, 2001

WHAT IS KAM KOTIA?• Kam Kotia is a former CU/ZN mine near

Timmins, Ontario• There are about 6 million tonnes of

unmanaged acid generating tailings coveringmore than 500 ha

• Environmental impacts are locally significant– acidic leachate– dusting– aesthetics– physical safety

MINING HISTORY• Principle exploration 1926-1928,

exploration shaft• Mining * 1943-1944 - 169,000 tonnes

open pit• Mining 1961-1972 - 5,840,000 tonnes,

mainly underground• Production 6.6 MT @ 1.1% Cu,

1.17% Zn, 0.10 oz/TAg* Mining in 1943-1944 carried out on behalf of Wartime Metals

Corporation, a Federal Government Agency. Cu sold to MetalsReserve Company. Washington, which paid operating costs androyalty.

OWNERSHIP HISTORY• Patented 1932 - Kam Kotia Porcupine

Mines Limited (82.5% owned by HollingerConsolidated Gold Mines Limited)

• Transferred 1966, Violamac Mines Limited -Kam Kota Mines Limited

• Transferred 1975, Robison Mines Limited• Surface rights forfeit to Crown, January

1988• Mining rights forfeit to Crown, March 1988

TAILINGS DEPOSITION<1961 270,000 tonnes in unconfirmed

area north of mill

1961 170,000 tonnes in SUT

1961-67 2.73 MT deposited in NUT area

1967 OWRC required construction ofdams to create NIT

1967 1.5 MT deposited in open pit

1968-1972 1.4 MT deposited in NIT

HYDROLOGY

• North and East seeps drain NUT, E1/2 ofNIT and N1/2 plant site � KamiskotiaRiver pH 2-3

• South seep drains SUT, S1/ of NIT andplant site to Little Kamiskotia River �Kamiskotia Lake

2000 CONSULTANT REVIEW• Reviewed site chemistry & hazards,

previous reports & pre-MENDrehabilitation proposals

• Proposed various options for each projectarea using modern technologyapproaches

• Completedrisk/benefit/advantage/disbenefit analysis

• Recommended approach

ORDER OF MAGNITUDE COST ESTIMATES

• Phase I Study $130 k

• Evaluation & Engineering 875 k

• Relocate SUT tails & Reclaim 2,377 k

• Collect seepage, construct & operate

treatment plant 8,040 k

• Consolidate NUT tails 10,764 k

• NIT dry cover & dam upgrade 7,341 k

• Rehab plant site area 2,300 k

Total before contingency $31, 827,000

With contingency + $40 million

KAM KOTIA STEERINGCOMMITTEE

• Ministry of Northern Development andMines (lead)

• Ministry of Environment• Ministry of Natural Resources• Northwatch

* Committee agrees to a financially manageable(?)approach which will significantly reduce leachaterelease and consequences.

FUNDING ISSUES• Does the benefit justify the cost?• $40 million?• Minister initially agrees to $3 million

expenditure• Following Phase I evaluation Minister

agrees to $9 million after SteeringCommittee recommendations and muchdeliberation

CURRENT PROGRAM

• Designed to reduce impacts onmanageable? $$$

• To be completed 2001-2003 (1st quarter)• Represents a compromise between

improving environmental effects vs.letting it sit!