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Yancoal Canada Resources Company Limited Southey Project Welcome Yancoal Canada Resources Company Ltd. Community Information Session

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Yancoal Canada Resources Company Limited

Southey Project

WelcomeYancoal Canada Resources Company Ltd.

Community Information Session

Yancoal Canada Resources Company Limited

Southey Project

Welcome• Welcome to our Community Information Session on the Yancoal

Canada Resources Company Limited (Yancoal) Southey Project.• We have invited you here to:

• Introduce ourselves;• Provide information about the proposed Yancoal

Southey Project;• Provide information about the Saskatchewan Environmental

Assessment process; • Provide a summary of the Environmental Assessment findings;

and• Receive your comments and questions.

Yancoal Canada Resources Company Limited

Southey Project

About Yanzhou Coal• Yanzhou Coal Mining Company Limited (Yanzhou Coal) is an

international mining company established in 1976, and listed in New York, Hong Kong, Shanghai and Sydney.

• More than 107,000 employees in China, Australia and Canada.

• Core business is in coal mining, coal chemical and fertilizer production, power generation and equipment production.

• Headquarters are located in Jining City, Shandong Province of East China.

Yancoal Canada Resources Company Limited

Southey Project

About Yancoal Canada Resources• Yancoal is a wholly-owned subsidiary of Yanzhou Coal.• Yancoal was established in 2011 and has an office in Saskatoon,

Saskatchewan.• There are currently 10 employees in the Saskatoon office.• Yancoal’s primary business is mineral resource exploration,

development and construction.

Yancoal Canada Resources Company Limited

Southey Project

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_̂KP 377 KP 392

SOUTHEYPROJECT

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About the Project• The Project is a greenfield potash mine that will produce potash

through solution mining.• Yancoal is proposing to develop the Southey Project approximately

60 km north of Regina, in the Rural Municipalities of Longlaketon and Cupar.

• The Project is located within subsurface mineral permits KP377 and KP392, west of Highway 6 and north of secondary Highway 731.

• The nearest communities are Earl Grey (21 km southwest of the Project), Strasbourg (23 km west of the Project), and Southey (28 km southeast of the Project).

Yancoal Canada Resources Company Limited

Southey Project

• The Southey Project will extract potash ore from the Patience Lake, Belle Plaine, and Esterhazy members of the Saskatchewan Prairie Evaporite Formation.

• The Project will be designed to produce 2.8 million tonnes of potash per year.

• The anticipated life span of the Project is 65 to 100 years.• Underground pipelines will transport water and brine from the core

facilities area to the mine field.

COREFACILITIES

AREA

65 YEARMINE FIELD

INDICATEDRESOURCEBOUNDARY

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About the Project

Yancoal Canada Resources Company Limited

Southey Project

The core facilities area will include: • Process plant;• Administration building and dry facilities

(safety and first aid, lab and security);• Mill warehouse;• Maintenance shop;• Product storage;• Rail loadout; and • Tailings management area.

About the Project

Yancoal Canada Resources Company Limited

Southey Project

Core Facilities Area Layout

FILE No.

SCALE AS SHOWN

FIGURE:4.6-1

REV. 0

PROJECT

TITLE

PROJECT

DESIGN

GIS

CHECK

GENERAL SITE LAYOUT

REVIEWSaskatoon, Saskatchewan

LMS/AK 26/05/15

12-1362-0197

BrineReclaim

Pond(Stage II)

CrystallizationPond

RawWaterPond

ProductStorage

MillFacility

Salt Storage Area(Stage II)

Salt Storage Area(Stage I)

Site RunoffCollectionPond

Sewage Lagoon

BrineReclaim

Pond(Stage I)

31

02

36

1314 17

01

32

05

07

35

06

08

18

11 12

TWP

24

TWP

25

RGE 20 W2M RGE 19 W2M

521000 522000 523000 524000 525000 526000 527000

5659

000

5660

000

5661

000

5662

000

5663

000

5664

000

5665

000

ROAD

TOWNSHIP AND RANGE BOUNDARY

SECTION BOUNDARY

PROPOSED ACCESS ROAD

PROPOSED RAIL LOOP

CORE FACILITIES AREA

PROPOSED SITE INFRASTRUCTURE

TAILINGS MANAGEMENT AREA

500 5000

1:25,000

G:\C

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NTS

\YAN

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AL\

Figu

res\

12-1

362-

0197

\WP0

25 -

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para

tion\

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IS N

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ject

Des

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15 4

:32:

27 P

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INFRASTRUCTURE DERIVED FROM AMEC DRAWING NO.100110-2000-DD10-GAD-0002 REV. BTMA DESIGN REVISED BY GOLDER, 2014BASE DATA: CANVEC © NATURAL RESOURCES CANADANAD83 UTM ZONE 13N

REFERENCE

LEGEND

SCALE METRES

YANCOALSOUTHEY PROJECT

BC 26/05/15

MT 26/05/15

FILE No.

SCALE AS SHOWN

FIGURE:4.6-1

REV. 0

PROJECT

TITLE

PROJECT

DESIGN

GIS

CHECK

GENERAL SITE LAYOUT

REVIEWSaskatoon, Saskatchewan

LMS/AK 26/05/15

12-1362-0197

BrineReclaim

Pond(Stage II)

CrystallizationPond

RawWaterPond

ProductStorage

MillFacility

Salt Storage Area(Stage II)

Salt Storage Area(Stage I)

Site RunoffCollectionPond

Sewage Lagoon

BrineReclaim

Pond(Stage I)

31

02

36

1314 17

01

32

05

07

35

06

08

18

11 12

TWP

24

TWP

25

RGE 20 W2M RGE 19 W2M

521000 522000 523000 524000 525000 526000 527000

5659

000

5660

000

5661

000

5662

000

5663

000

5664

000

5665

000

ROAD

TOWNSHIP AND RANGE BOUNDARY

SECTION BOUNDARY

PROPOSED ACCESS ROAD

PROPOSED RAIL LOOP

CORE FACILITIES AREA

PROPOSED SITE INFRASTRUCTURE

TAILINGS MANAGEMENT AREA

500 5000

1:25,000

G:\C

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NTS

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INFRASTRUCTURE DERIVED FROM AMEC DRAWING NO.100110-2000-DD10-GAD-0002 REV. BTMA DESIGN REVISED BY GOLDER, 2014BASE DATA: CANVEC © NATURAL RESOURCES CANADANAD83 UTM ZONE 13N

REFERENCE

LEGEND

SCALE METRES

YANCOALSOUTHEY PROJECT

BC 26/05/15

MT 26/05/15

Yancoal Canada Resources Company Limited

Southey Project

Roads• Yancoal will upgrade the access road to the core facilities area to

accommodate additional traffic and heavy loads.• This will include Grid Road 731 from Highway 6 to the core

facilities area.• Some existing road closures will be necessary within the core

facilities area.• Yancoal will work with the Rural Municipality to discuss the need

for road alterations or upgrades to facilitate local traffic movement around the core facilities area.

FILE No.

SCALE AS SHOWN

FIGURE:4.8-1

REV. 0

PROJECT

TITLE

PROJECT

DESIGN

GIS

CHECK

PROPOSED SITE ACCESS

REVIEWSaskatoon, Saskatchewan

LMS/AK 04/05/14

12-1362-0197

West Loon

Creek

UV731

!(6

08

31

21

12

0712

02

36

27 25

18

29

13 18

24

1314

32

14

04

35

06

19

30 29

13

11

23

10

17

01

19

30

32

16

12

05

07

20

28

0707

20 23

18

03

36 3135

09

34

14

17

06

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11

14

08

18

26

15

24

11

16

09

17

33

08

01

26 25

15

11 12

02

10

05

TWP

25

TWP

24

RGE 20 W2M RGE 18 W2MRGE 19 W2M

522000 523000 524000 525000 526000 527000 528000 529000 530000 531000 532000 533000 534000 535000 536000

5653

000

5654

000

5655

000

5656

000

5657

000

5658

000

5659

000

5660

000

5661

000

5662

000

5663

000

5664

000

5665

000

HIGHWAY

ROAD

TOWNSHIP ANDRANGE BOUNDARY

SECTION BOUNDARY

CORE FACILITIES AREA

PROPOSED RAIL LOOP

PROPOSED ACCESS ROAD

1 10

1:50,000

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:49:

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M

INFRASTRUCTURE DERIVED FROM AMEC DRAWING NO.100110-2000-DD10-GAD-0002 REV. BTMA DESIGN REVISED BY GOLDER, 2014CANVEC © NATURAL RESOURCES CANADANAD83 UTM ZONE 13

REFERENCE

LEGEND

SCALE KILOMETRES

YANCOALSOUTHEY PROJECT

MT 04/12/14

BC 27/05/15

MT 27/05/15

FILE No.

SCALE AS SHOWN

FIGURE:4.8-1

REV. 0

PROJECT

TITLE

PROJECT

DESIGN

GIS

CHECK

PROPOSED SITE ACCESS

REVIEWSaskatoon, Saskatchewan

LMS/AK 04/05/14

12-1362-0197

West Loon

Creek

UV731

!(6

08

31

21

12

0712

02

36

27 25

18

29

13 18

24

1314

32

14

04

35

06

19

30 29

13

11

23

10

17

01

19

30

32

16

12

05

07

20

28

0707

20 23

18

03

36 3135

09

34

14

17

06

22

13

11

14

08

18

26

15

24

11

16

09

17

33

08

01

26 25

15

11 12

02

10

05

TWP

25

TWP

24

RGE 20 W2M RGE 18 W2MRGE 19 W2M

522000 523000 524000 525000 526000 527000 528000 529000 530000 531000 532000 533000 534000 535000 536000

5653

000

5654

000

5655

000

5656

000

5657

000

5658

000

5659

000

5660

000

5661

000

5662

000

5663

000

5664

000

5665

000

HIGHWAY

ROAD

TOWNSHIP ANDRANGE BOUNDARY

SECTION BOUNDARY

CORE FACILITIES AREA

PROPOSED RAIL LOOP

PROPOSED ACCESS ROAD

1 10

1:50,000

G:\C

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INFRASTRUCTURE DERIVED FROM AMEC DRAWING NO.100110-2000-DD10-GAD-0002 REV. BTMA DESIGN REVISED BY GOLDER, 2014CANVEC © NATURAL RESOURCES CANADANAD83 UTM ZONE 13

REFERENCE

LEGEND

SCALE KILOMETRES

YANCOALSOUTHEY PROJECT

MT 04/12/14

BC 27/05/15

MT 27/05/15

Yancoal Canada Resources Company Limited

Southey Project

Project Utilities• Yancoal will require the following utility services:

• Water - Provided by SaskWater.• Power - Provided by SaskPower.• Natural Gas - Provided by TransGas.• Telecommunications - Provided by SaskTel.• Rail Line - Provided by either Canadian National (CN) or Canadian

Pacific (CP).• Yancoal will select the rail line provider by end of 2015.

• Yancoal will work directly with each utility provider, however they will be responsible for their route selection, environmental assessment, land acquisition, engineering and construction.

Yancoal Canada Resources Company Limited

Southey Project

Construction Camp• A temporary camp will be built for workers during construction.

It is anticipated that the camp will be built to house up to 1,500 workers.

• Yancoal is still in the process of evaluating options for the location of the camp.

• It is anticipated that the camp will be located as close to the core facilities area as possible to reduce the amount of traffic on the roads.

• Part of the feasibility study currently underway is to explore options to optimize the camp.• This includes options for on site water and effluent treatment (e.g.

a closed system).• Camp Security and Emergency Services are also being

considered.

Yancoal Canada Resources Company Limited

Southey Project

Anticipated Milestones• December 2015: Complete Feasibility Study;• 2016 (Q1): Anticipate Environment Assessment Approval;• 2016 (Q2): Make internal decision to proceed;• 2016 (Q2): Environmental Permitting; • 2016 (Q3 and Q4) to 2019: Initiate Construction;

• Site Grading• Road upgrades• Engineering• Procurement• Construct buildings

and plant facilities• Drill wells for

preliminary cavern development

• 2020: Commissioning and operation.

Yancoal Canada Resources Company Limited

Southey Project

ScheduleProject Phase

Year2013 2014 2015 2016 2017 2018 2019

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Environmental Impact AssessmentBaseline Study

EIS Preparation

EIS Review and Approval

Construction Approvals

Construction/OperationConstruction

Wellfield Development

Begin Operations

Yancoal Canada Resources Company Limited

Southey Project

Potash• Potash is a common name for Potassium Chloride or KCl.• Saskatchewan has the largest potash industry in the world,

accounting for approximately 40% of the worlds trade in potash.• The leading use of potash is for fertilizer.

Yancoal Canada Resources Company Limited

Southey Project

Cavern Layout

Yancoal Canada Resources Company Limited

Southey Project

Sump Connection

Sump Development

OVERBURDEN

HALITE

HALITE

SYLVINITE - PATIENCE LAKE MEMBER

SYLVINITE - BELLE PLAINE MEMBER

SYLVINITE - ESTERHAZY MEMBER

HALITE

SURFACE

HALITE

FLUID BLANKET

BRINE

WATER

FLUID BLANKET

BRINE

WATER

1. SUMP DEVELOPMENT

OVERBURDEN

HALITE

HALITE

SYLVINITE - PATIENCE LAKE MEMBER

SYLVINITE - BELLE PLAINE MEMBER

SYLVINITE - ESTERHAZY MEMBER

HALITE

SURFACE

HALITE

FLUID BLANKET

WATER

BRINE

FLUID BLANKET

WATER

BRINE

2. SUMP CONNECTION

Yancoal Canada Resources Company Limited

Southey Project

OVERBURDEN

HALITE

HALITE

SYLVINITE - PATIENCE LAKE MEMBER

SYLVINITE - BELLE PLAINE MEMBER

SYLVINITE - ESTERHAZY MEMBER

HALITE

SURFACE

HALITE

FLUID BLANKET

HEATED WATER FLUID BLANKET

BRINE

3. ROOF DEVELOPMENT

OVERBURDEN

HALITE

HALITE

SYLVINITE - PATIENCE LAKE MEMBER

SYLVINITE - BELLE PLAINE MEMBER

HALITE

SURFACE

HALITE

SYLVINITE -

ESTERHAZY MEMBER

FLUID BLANKET

FLUID BLANKET

5. PRIMARY DEVELOPMENT

INSOLUABLES INSOLUABLES

BRINE HEATED WATER

Primary Mining

Roof Development

Yancoal Canada Resources Company Limited

Southey Project

Secondary Mining

Interbeds

Yancoal Canada Resources Company Limited

Southey Project

Production of Potash

PRIMARY CAVERNS

EVAPORATION

CRYSTALLIZATION

SALT HANDLING & TAILINGS

SATURATOR

SECONDARY CAVERNS

CRYSTALLIZATION POND

PRODUCT SCREENING

LOADOUT PRODUCT STORAGE

COMPACTIONCENTRIFUGING & DRYING

UTILITY: STEAM/

WATER/ AIR

REAGENT STORAGE &

PREPARATION

TO RAIL

RAW WATER

STANDARD

PR

OD

UC

T

PR

OD

UC

T

FINES & OVERSIZE

GR

AN

ULA

R

Yancoal Canada Resources Company Limited

Southey Project

Environmental Assessment• An Environmental Assessment evaluates and identifies potential

changes caused by Project interactions with the existing biophysical and socio-economic environments.

• The Environmental Assessment process involves:• Issue scoping;• Engagement;• Baseline (or existing conditions) data collection and required

scientific studies;• Identifying recommended mitigation practices, procedures and

policies; and• Analyzing and predicting positive and negative effects.

• Details are presented to regulatory agencies and the public as an Environmental Impact Statement.

• Once the Environmental Impact Statement has been submitted the regulatory agencies will determine if a project is acceptable and can proceed.

Yancoal Canada Resources Company Limited

Southey Project

Environmental Assessment

Proponent interested in proposed project

Proponent conducts self screening as per Technical

Proposal Guidelines†

Proponent proceeds with required licences and

permits

no

Proponent submits application to EAB,

prepares and submits Technical Proposal

yes or not sure

Ministerial determination provided as to whether or

not project is a development under 2(d) of

EAA

not a development

development

Proponent to develop and submit TOR to EAB

Public notice that environmental assessment is being conducted as per

s.10 of the EAA

Draft TOR and Technical Proposal reviewed by EAB

and SEARP

Final TOR approved by EAB

Proponent conducts EIA and submits EIS to EAB

START HERE

The Saskatchewan Environmental Assessment Process

EAB and SEARP conduct technical review of EIS

EAB prepares Technical Review Comments

Public notice issued for public reivew of the EIS and

TRCs

EIS and TRCs released for 30 day public review

period*

Public comments received by EAB

EAB submits EIS, TRCs, public comments and any inquiry findings and their recommendations to the

Minister**

Minister decides to either approve or not approve the

development

Proponent may proceed with the development

subject to the Ministers approval and any other provincial and federal

legislative or permitting requirements

approvedwith or without

conditions

Proponent may not proceed with development

not approved

EAB provides deficiency statement to proponent

Proponent to prepare and submit addendums or revisions of EIS to EAB

New information reviewed by EAB and SEARP

inadequate

adequate

Development?

KeyTPG – Technical Proposal GuidelinesEAB – Environmental Assessment BranchEAA – The Environmental Assessment ActTOR – Terms of ReferenceSEARP – Saskatchewan Environmental Assessment Review PanelEIA – Environmental Impact AssessmentEIS – Environmental Impact StatementTRCs- Technical Review Comments

* Any person may: make a written submission to the minister within 30 days from the date when the minister first gives notice or if the minister considers it appropriate, within an additional period of 30 days.**Minister may require public meetings or public inquiry into all or any aspect of the development at any time prior to making a decision about the development

Proposal Development

Screening

Application

Scoping

Impact Assessment

Review

Public Comment

Decision by Minister

†Changes to a development with prior Ministerial Approval require review by EA Branch

Yancoal Canada Resources Company Limited

Southey Project

Atmospheric EnvironmentWhat was assessed:• Carbon monoxide (CO);• Sulphur dioxide (SO2);• Nitrogen dioxide (NO2);• Potash (KCl); • Greenhouse gases

(GHGs) including:• Carbon dioxide (CO2); • Nitrous oxide (N2O);

and• Methane (CH4).

• Particulate matter (PM) including:• Particulate matter with aerodynamic diameter less

than 2.5 micrometres (µm) (PM2.5); • Particulate matter with aerodynamic diameter less

than 10 µm (PM10);• Total suspended particulate matter with

aerodynamic diameter less than 40 µm (TSP);

YANCOALSOUTHEY PROJECT

FILE No.

SCALE AS SHOWN

FIGURE: 7.5-1

REV. 1

PROJECT

TITLE

PROJECT

DESIGN

GIS

CHECK

LOCATION OF GRID RECEPTORSAND COMMUNITY RECEPTORS

REVIEWSaskatoon, Saskatchewan

SBM 27/05/15

12-1362-0197

!.!. !.!.

!.

!.

!.

!.

!. !.

!.

!.!.!.!.

!.

!.

!.!.

!.

!.

!.

!.

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Last Mountain Lake

WillowLake

Oak Lake

BriceLake

GrassyLake

Eas

tLoonCreek

Loon Creek

West Loon

Creek

West

Loon

C reek

!(354

!(20

!(22

!(15

!(322

!(6

!(220

CuparSouthey

Strasbourg

Govan

Markinch

Island View

Grandview Beach

Glen Harbour

Bulyea

Earl GreyAlice Beach

Quinton

Punnichy

Duval

Lipp'sBeach

SpringBay

ColesdalePark

Sorenson'sBeach

Mohr'sBeach

Gibbs

Uhl'sBay

Serath

CollingwoodLakeshoreEstates

TWP

28

TWP

27A

TWP

27

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23

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26

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24

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RGE 18 W2MRGE 21 W2M RGE 19 W2MRGE 22 W2MRGE 23 W2M RGE 16 W2MRGE 17 W2MRGE 24 W2M RGE 20 W2M

485000 490000 495000 500000 505000 510000 515000 520000 525000 530000 535000 540000 545000 550000 555000

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EFFECTS STUDY AREA

RECEPTOR BY TYPE

!. COMMUNITY

!. RESIDENCE

GRID

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REFERENCE

LEGEND

CM 27/05/15

CM 27/05/15

YANCOALSOUTHEY PROJECT

FILE No.

SCALE AS SHOWN

FIGURE: 7.5-1

REV. 1

PROJECT

TITLE

PROJECT

DESIGN

GIS

CHECK

LOCATION OF GRID RECEPTORSAND COMMUNITY RECEPTORS

REVIEWSaskatoon, Saskatchewan

SBM 27/05/15

12-1362-0197

!.!. !.!.

!.

!.

!.

!.

!. !.

!.

!.!.!.!.

!.

!.

!.!.

!.

!.

!.

!.

!.

Last Mountain Lake

WillowLake

Oak Lake

BriceLake

GrassyLake

Eas

tLoonCreek

Loon Creek

West Loon

Creek

West

Loon

C reek

!(354

!(20

!(22

!(15

!(322

!(6

!(220

CuparSouthey

Strasbourg

Govan

Markinch

Island View

Grandview Beach

Glen Harbour

Bulyea

Earl GreyAlice Beach

Quinton

Punnichy

Duval

Lipp'sBeach

SpringBay

ColesdalePark

Sorenson'sBeach

Mohr'sBeach

Gibbs

Uhl'sBay

Serath

CollingwoodLakeshoreEstates

TWP

28

TWP

27A

TWP

27

TWP

23

TWP

26

TWP

25

TWP

24

TWP

22

TWP

21

RGE 18 W2MRGE 21 W2M RGE 19 W2MRGE 22 W2MRGE 23 W2M RGE 16 W2MRGE 17 W2MRGE 24 W2M RGE 20 W2M

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CORE FACILITIES AREA / FENCE LINE

EFFECTS STUDY AREA

RECEPTOR BY TYPE

!. COMMUNITY

!. RESIDENCE

GRID

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AM

BASE DATA: CANVEC © NATURAL RESOURCES CANADANAD83 UTM ZONE 13

REFERENCE

LEGEND

CM 27/05/15

CM 27/05/15

Yancoal Canada Resources Company Limited

Southey Project

Results:• Maximum predicted NO2, SO2, CO, PM2.5, and TSP

concentrations, and KCl deposition for all averaging periods complies with their respective ambient air quality standards.

• Results for the Yancoal project predict a daily maximum plus background concentration for PM10 of 53.4 µg/m3, which is slightly above the Saskatchewan Ambient Air Quality Standard of 50 µg/m3.

• The Ministry of Environment requires that a background value of 36.3 µg/m3 be used as the background concentration for PM10 in the Southeastern region of the Province. This background value was derived from urban measurements, and may not accurately reflect background rural air quality at the Project.

• Yancoal is currently measuring particulate matter concentrations at the proposed Project location to better determine the actual background concentrations.

• It is concluded that the Project’s cumulative effects on the atmospheric environment are not significant.

Atmospheric Environment

Yancoal Canada Resources Company Limited

Southey Project

Noise• In Saskatchewan, there are no provincial noise requirements

or standard methods that govern noise levels associated with industrial activities. The Alberta Energy Regulator (AER) regulates noise through directive 038: Noise Control. The AER Directive 038 represents best operating practices for facilities in Alberta and commonly is used in noise assessments for industrial facilities in Saskatchewan.

What was assessed:• The focus of the acoustic environment assessment is on

determining changes to existing ambient noise levels resulting from the Project and comparing the cumulative noise levels due to the Project to the thresholds specified in the AER Directive 038.

• Noise receptors are considered to be any permanent or seasonally-occupied dwellings used at least six weeks out of the year within 1.5 km of the Project boundaries. A total of 60 relevant receptors were identified.

Yancoal Canada Resources Company Limited

Southey Project

Results:• Noise levels associated with Project operations will not exceed

thresholds specified in Directive 038 for any receptor with the exception of R101.

Noise

Receptor Location

AER Cumulative

Noise Level(a) (dBA)

Permissible Sound Level

(PSL)(b) (dBA)

Difference (PSL – AER Cumulative Noise Level) (dB)

Ambient Sound Level

(PSL)(c) (dBA)

Difference (AER Cumulative Noise Level - ASL) (dB)

Daytime Nighttime Daytime Nighttime Daytime Nighttime Daytime Nighttime Daytime Nighttime

101 53.0 45.6 50 40 -3.0 -5.6 45 35 8.0 10.6Above Criteria Limits

(a) Consists of the logarithmic addition of predicted Project noise level and ASL.

(b) PSL values defined according to Directive 038 and presented in Table 12.

(c) ASL values defined according to Directive 038 and presented in Table 13.

dBA = A-weighted decibels; PSL = Permissible Sound Level; ASL = Ambient Sound Level; AER = Alberta Energy Regulator. To mitigate this, equipment will be maintained and will comply with federal and provincial air emission standards, and operational activities (e.g., movement of rail cars) will be limited to daytime hours.

Yancoal Canada Resources Company Limited

Southey Project

HydrogeologyWhat was assessed:

• Groundwater chemistry;• Groundwater levels; and• Vertical and horizontal migration.

Results:• Long term changes to groundwater quality are expected to occur

only within the footprint of the TMA. • The details of the monitoring program, as well as various threshold

criteria for implementation of mitigation, will be determined in the detailed design in support of licensing the Project.

• Changes to groundwater from the Project are predicted to have no significant effect on the continued suitability of groundwater for human use.

Yancoal Canada Resources Company Limited

Southey Project

1000-year groundwater flow pathlines remain within the Proposed Core Facilities Area boundary.

Barrier Wall surrounding Proposed Core Facilities Area

1000-year groundwater flow pathlines remain within the

Proposed Core Facilities Area boundary.

Salt Storage Area

Brine Reclaim Pond

YANCOALSOUTHEY PROJECT

FILE No.

SCALE AS SHOWN

FIGURE:8.5-2

REV. 0

PROJECT

TITLE

PROJECT

DESIGN

GIS

CHECK

1000-YEAR PARTICLE PATHLINESWITH GROUNDWATER CONTAINMENT

BARRIER WALL LOCAL MODEL

REVIEWSaskatoon, Saskatchewan

SM/LS 22/04/15

12-1362-0197

CHECK

REVIEW

G:\CLIENTS\YANCOAL\Figures\12-1362-0197\WP025 - EIS Preparation\Task 1085 - Hydrogeology\12-1362-0197 - ESA 1000 Year Particle Pathlines.mxd Date: 5/27/2015 3:19:49 PM

NOTE

LEGEND

JR 01/05/14

PARTICLE PATHLINESURFACE WATERCOURSE/WATERBODY

BARRIER WALL

PERMIT BOUNDARYCORE FACILITIES AREA

1. THE PARTICLE PATHLINES SHOWN REPRESENT 1000-YEAR PARTICLE TRAVEL RESULTING FROM STEADY-STATE GROUNDWATER FLOW CONDITIONS,THEIR THREE-DIMENSIONAL DIRECTION PROJECTED TO SURFACE ON A TWO-DIMENSIONAL PLANE.2. CONTOURS SHOWN REPRESENT THE SURFACE TOPOGRAPHY AT A 10 METRE CONTOUR INTERVAL.

MAT 27/05/15

CK 14/04/15

1000-year groundwater flow pathlines remain within the Proposed Core Facilities Area boundary.

Barrier Wall surrounding Proposed Core Facilities Area

1000-year groundwater flow pathlines remain within the

Proposed Core Facilities Area boundary.

Salt Storage Area

Brine Reclaim Pond

YANCOALSOUTHEY PROJECT

FILE No.

SCALE AS SHOWN

FIGURE:8.5-2

REV. 0

PROJECT

TITLE

PROJECT

DESIGN

GIS

CHECK

1000-YEAR PARTICLE PATHLINESWITH GROUNDWATER CONTAINMENT

BARRIER WALL LOCAL MODEL

REVIEWSaskatoon, Saskatchewan

SM/LS 22/04/15

12-1362-0197

CHECK

REVIEW

G:\CLIENTS\YANCOAL\Figures\12-1362-0197\WP025 - EIS Preparation\Task 1085 - Hydrogeology\12-1362-0197 - ESA 1000 Year Particle Pathlines.mxd Date: 5/27/2015 3:19:49 PM

NOTE

LEGEND

JR 01/05/14

PARTICLE PATHLINESURFACE WATERCOURSE/WATERBODY

BARRIER WALL

PERMIT BOUNDARYCORE FACILITIES AREA

1. THE PARTICLE PATHLINES SHOWN REPRESENT 1000-YEAR PARTICLE TRAVEL RESULTING FROM STEADY-STATE GROUNDWATER FLOW CONDITIONS,THEIR THREE-DIMENSIONAL DIRECTION PROJECTED TO SURFACE ON A TWO-DIMENSIONAL PLANE.2. CONTOURS SHOWN REPRESENT THE SURFACE TOPOGRAPHY AT A 10 METRE CONTOUR INTERVAL.

MAT 27/05/15

CK 14/04/15

Hydrogeology

Yancoal Canada Resources Company Limited

Southey Project

HydrologyWhat was assessed:

• Spatial distribution of water including the spatial extent and location of waterbodies, runoff pathways, and streams;

• Temporal distribution of water including changes in water levels and flows through time;

• Drainage boundaries; and • Stream channel gradients.

Results:• Ground subsidence due to solution mining will occur overlying the

mine well field. • Maximum subsidence is calculated to be approximately 6 metres in

some locations; however, maximum subsidence will not occur for more than a century.

• Subsidence will be monitored on a regular basis over the period of operation and following Project decommissioning and reclamation.

• The isolation of the core facilities area (and the well pads) from the surrounding local drainages will slightly reduce runoff and irreversibly change drainage patterns in the immediate area.

Yancoal Canada Resources Company Limited

Southey Project

FILE No.

SCALE AS SHOWN

FIGURE:9.5-1

REV. 0

PROJECT

TITLE

PROJECT

DESIGN

GIS

CHECK

PREDICTED CHANGES INSURFACE ELEVATIONS

REVIEWSaskatoon, Saskatchewan

LMS 26/05/15

12-1362-0197

East Loon Creek

West Loon Creek

!(731

!(6

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¾

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¾

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-5 -4-3

-2-1

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-3

-2-1

-0.01

-4-3

-2-1

-0.0

1

-0.01

TWP

23

TWP

25

TWP

24

RGE 18 W2MRGE 19 W2MRGE 20 W2M

520000 525000 530000 535000 540000

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ROAD

TOWNSHIP AND RANGE BOUNDARY

!'! !'! PROFILE LINE

SUBSIDENCE CONTOUR (0.5 METRE INTERVAL)

LIDAR EXTENT

ELEVATION (masl)HIGH : 688.32

LOW : 530.33

1.5 1.50

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ELEVATION SURFACE DERIVED FROM LIDAR PROVIDED BY LSICANVEC © NATURAL RESOURCES CANADANAD83 UTM ZONE 13

REFERENCE

LEGEND

SM 20/03/15

YANCOALSOUTHEY PROJECT

BT 26/05/15

JH 26/05/15

FILE No.

SCALE AS SHOWN

FIGURE:9.5-1

REV. 0

PROJECT

TITLE

PROJECT

DESIGN

GIS

CHECK

PREDICTED CHANGES INSURFACE ELEVATIONS

REVIEWSaskatoon, Saskatchewan

LMS 26/05/15

12-1362-0197

East Loon Creek

West Loon Creek

!(731

!(6

!

¾

!B !

¾

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¾

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-4-3

-2-1

-0.0

1

-0.01

TWP

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TWP

25

TWP

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RGE 18 W2MRGE 19 W2MRGE 20 W2M

520000 525000 530000 535000 540000

5650

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HIGHWAY

ROAD

TOWNSHIP AND RANGE BOUNDARY

!'! !'! PROFILE LINE

SUBSIDENCE CONTOUR (0.5 METRE INTERVAL)

LIDAR EXTENT

ELEVATION (masl)HIGH : 688.32

LOW : 530.33

1.5 1.50

SCALE 1:75,000 KILOMETRES

G:\C

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ELEVATION SURFACE DERIVED FROM LIDAR PROVIDED BY LSICANVEC © NATURAL RESOURCES CANADANAD83 UTM ZONE 13

REFERENCE

LEGEND

SM 20/03/15

YANCOALSOUTHEY PROJECT

BT 26/05/15

JH 26/05/15

HydrologyResults Continued:• The effects in annual runoff volume was estimated to be about a

2.3% decrease of the runoff reporting to the low-topography area within the West Tributary sub-basin of West Loon Creek, and negligible for West Loon Creek during the operations phase.

• The Project is not expected to affect the continued availability of surface water quantity for human use and ecosystems.

Yancoal Canada Resources Company Limited

Southey Project

Surface Water QualityWhat was assessed:

• Surface water quality (i.e., physical analytes, chemical properties)

• Although there are no lakes present in the water quality effects study area, there are numerous ephemeral wetlands present.

• Water quality samples were collected during the spring, summer, and fall of 2013.

Results:• Total predicted surface water concentrations of potassium and

chloride are expected to be within the natural range of variability for West Loon, East Loon, and Loon creeks (e.g., a few mg/L). It is therefore considered unlikely that deposition of potassium and chloride will adversely affect surface water quality

• The Project is not expected to affect the continued suitability of surface water for human use.

Yancoal Canada Resources Company Limited

Southey Project

Fish and Fish HabitatWhat was assessed:

• Fish habitat quantity and fragmentation

• Fish habitat quality• Abundance and distribution of fish

species• Fish inventory surveys were

completed in West Loon Creek, East Loon Creek, Loon Creek, and three disconnected land-locked waterbodies during the spring, summer, and fall of 2013.

Results:• Brook Stickleback and Fathead Minnows were the only fish

species captured or observed. • No large-bodied fish species were captured. • Changes to fish and fish habitat from ground subsidence will occur

gradually and maximum subsidence will not occur for more than a century.

• West Loon Creek will continue to support small-bodied fish. • The residual effects from the Project are not likely to contribute to

significant effects on self-sustaining and ecologically effective fish populations.

Yancoal Canada Resources Company Limited

Southey Project

SoilsWhat was assessed:

• Soil quality (i.e., physical, biological, and chemical properties)

• Soil quantity and distributionResults:• Two most dominant agricultural

capability classes are Class 3 (48.9%), moderately severe limitations that restrict the range of crops or require special conservation practices, and Class 2 (20.7 %), moderate limitations that restrict the range of crops or require special conservation practices.• Most common limitation is moisture

• The Project footprint, with the exception of the TMA will be reclaimed to an equivalent agriculture capability during decommissioning and reclamation.

• The Project is not expected to affect the capability of soil to support agriculture and other plant communities.

Yancoal Canada Resources Company Limited

Southey Project

VegetationWhat was assessed:

• Quantity, arrangement, and connectivity (fragmentation) of plant communities

• Abundance and distribution of habitat for listed plant species

• Abundance and distribution of habitat for traditional use plant species

• Presence of weed and invasive plant speciesResults:• Dominant land cover is cultivated (58%).• Modified grassland covers 16%, wetlands 13% and native grassland

8%.• Majority of the patches of Native Grassland associated with the

Project footprint are 0.6 hectares and smaller. • Removal of vegetation by the Project should not disrupt the

existing connectivity of native grassland, wetlands, and wooded vegetation types.

• The Project is not expected to affect the ability of plant communities, listed plants, and traditional use plants to be self-sustaining and ecologically effective.

Yancoal Canada Resources Company Limited

Southey Project

WildlifeWhat was assessed:

• Habitat quantity, arrangement, and connectivity (fragmentation)• Habitat quality• Survival and reproduction• Abundance and distribution of wildlife such as:

■ White-tailed Deer ■ Elk ■ Upland Birds ■ Ferruginous Hawk ■ Waterbirds ■ Short-eared Owl ■ Northern Leopard Frog

Results:• Cumulative changes from sustained agricultural practices over

the last 100 years have likely resulted in adverse effects on some wildlife populations in the effects study area.

• Most of the habitat types expected to be affected by the Project are widely distributed in the effects study area, including native grassland and wetland habitats; subsequently the Project should have little influence on grassland and wetland wildlife.

• The Project is not expected to affect the ability of wildlife to be self-sustaining and ecologically effective.

Yancoal Canada Resources Company Limited

Southey Project

Heritage ResourcesWhat was assessed:• Archaeological and sacred sitesResults:• No known heritage resources are located within the core facilities

area, and the land is not considered heritage sensitive by the Saskatchewan Ministry of Parks, Culture and Sport-Heritage Conservation Branch.

• The Project is not predicted to affect heritage resources.

YANCOALSOUTHEY PROJECT

FILE No.

SCALE AS SHOWN

FIGURE:15.2-1

REV. 0

PROJECT

TITLE

PROJECT

DESIGN

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CHECK

LOCATION OF THE HERITAGE RESOURCESBASELINE AND EFFECTS STUDY AREAS

REVIEWSaskatoon, Saskatchewan

LMS 25/05/15

12-1362-0197# # ##

###

#

#

#

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n

n

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n

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nn

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WillowLake

Oak Lake

BriceLake

GrassyLake

East Loon Cr

eek

Loon Creek

West Loon

Creek

W

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Loon

Cre

ek

KP 377 KP 392

!(22

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CuparSouthey

MarkinchEarlGrey

Serath

EhNb 1

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CaldwellCemetery

ChristusLutheranCemetery

East MountCemetery

HartCemeteryKainz

Cemetery

SerathBaptist

Cemetery

St. Anne'sOld Cemetery

St. Paul'sLutheran

Cemetery

ZionLutheran

Cemetery

ZionLutheran

Church

St. Anne'sChurch &Cemetery

St. Paul'sLutheran Church

& Cemetery

Lunner NorwegianLutheran Church& Cemetery

HazelwoodSchoolDistrict

ButtertonSchoolDistrict

East MountSchoolDistrict

Sunny NorthSchoolDistrict

Glen AftonSchoolDistrict

CrosswoodsSchoolDistrict

CoynachSchoolDistrict

SnowdropSchoolDistrict

SnarumSchoolDistrict

Eddy SchoolDistrict

Bryn MawrsSchoolDistrict

GregherdSchoolDistrict

EfNc 1 EfNc 2 EfNc 3

EfNc 4EfNb 2

EfNb 1EfNb 5

EgNb 1

EhNd 1

EgNb 2

TWP

23

TWP

26

TWP

25

TWP

24

RGE 18 W2MRGE 19 W2MRGE 21 W2M RGE 20 W2M RGE 16 W2MRGE 17 W2M

515000 520000 525000 530000 535000 540000 545000 550000 555000

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URBAN MUNICIPALITY

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PROPOSED RAIL LOOP

PERMIT BOUNDARY

65 YEAR MINE FIELD

CORE FACILITIES AREA

INDICATED RESOURCE BOUNDARY

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" CHURCH BUILDING

n SCHOOL DISTRICT MARKER

# KNOWN HERITAGE RESOURCE

ASSESSED AREA

BASELINE STUDY AREA

EFFECTS STUDY AREA

HERITAGE SENSITIVE AREA

KNOWN HERITAGE RESOURCE

3 30

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HERITAGE RESOURCES: HERITAGE CONSERVATION BRANCH, MINISTRY OF PARKS,CULTURE AND SPORT, 2014.PERMIT BOUNDARY: POTASH DISPOSITION © 2012, GEOLOGICAL ATLAS OFSASKATCHEWAN, MINISTRY OF ENERGY AND RESOURCES SASKATCHEWANINFRASTRUCTURE DERIVED FROM AMEC DRAWING NO.100110-2000-DD10-GAD-0002 REV. BBASE DATA: CANVEC © NATURAL RESOURCES CANADANAD83 UTM ZONE 13

REFERENCE

LEGEND

PY 08/04/15

BC 25/05/15

PY 25/05/15

YANCOALSOUTHEY PROJECT

FILE No.

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FIGURE:15.2-1

REV. 0

PROJECT

TITLE

PROJECT

DESIGN

GIS

CHECK

LOCATION OF THE HERITAGE RESOURCESBASELINE AND EFFECTS STUDY AREAS

REVIEWSaskatoon, Saskatchewan

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HartCemeteryKainz

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St. Paul'sLutheran

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Lunner NorwegianLutheran Church& Cemetery

HazelwoodSchoolDistrict

ButtertonSchoolDistrict

East MountSchoolDistrict

Sunny NorthSchoolDistrict

Glen AftonSchoolDistrict

CrosswoodsSchoolDistrict

CoynachSchoolDistrict

SnowdropSchoolDistrict

SnarumSchoolDistrict

Eddy SchoolDistrict

Bryn MawrsSchoolDistrict

GregherdSchoolDistrict

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3 30

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HERITAGE RESOURCES: HERITAGE CONSERVATION BRANCH, MINISTRY OF PARKS,CULTURE AND SPORT, 2014.PERMIT BOUNDARY: POTASH DISPOSITION © 2012, GEOLOGICAL ATLAS OFSASKATCHEWAN, MINISTRY OF ENERGY AND RESOURCES SASKATCHEWANINFRASTRUCTURE DERIVED FROM AMEC DRAWING NO.100110-2000-DD10-GAD-0002 REV. BBASE DATA: CANVEC © NATURAL RESOURCES CANADANAD83 UTM ZONE 13

REFERENCE

LEGEND

PY 08/04/15

BC 25/05/15

PY 25/05/15

Yancoal Canada Resources Company Limited

Southey Project

Socio-Economic EnvironmentWhat was assessed:• Employment• Labour income• Tax revenue• Gross domestic product• Project workforce requirements• Potential changes in the demand for housing, accommodations,

social, health, emergency and protective services, and physical infrastructure

• Commitments regarding employment training• Project traffic volumes• Commitments regarding safety measures and reducing traffic• Changes in land use• Changes in visual aesthetics • Changes in noise levels and air quality• Changes in water quality and quantity

Yancoal Canada Resources Company Limited

Southey Project

Socio-Economic EnvironmentResults:• Employment and Economy

• An employment strategy will be developed once a decision has been made to proceed with the project.

• Skilled local workers will be given priority, however, the Project is expected to require some out of province work force.

• During construction there will be high demand for trades people and labourers such as:

■ Carpenters, ■ Electricians, ■ Welders, ■ Concrete workers,

■ Equipment operators, ■ Pipe fitters, and ■ Sheet metal workers.

• During operation the types of positions required will include: ■ Millwrights, ■ Process engineers, ■ Electricians, ■ Mechanics,

■ Drillers, ■ Safety, health and environment personnel and

■ Other trades.

• Project spending will result in increased Gross Domestic Product and Project operations will generate tax revenue for municipal, provincial and federal governments.

Yancoal Canada Resources Company Limited

Southey Project

Socio-Economic EnvironmentResults Continued:• Community Services and Infrastructure

• The Project workforce will result in an increased population in the local area which will result in an effect on housing, schools and health care facilities that are operating near or at capacity.

• Most of these residual effects are expected to occur in Regina. The City of Regina and service providers are aware of the rapid increase in population and corresponding demand for services and infrastructure and are planning accordingly for the future.

• Traffic and Transportation• Traffic is expected to increase north of Regina on Project access

routes.• A traffic impact assessment was completed and identified required

road upgrades and mitigation to reduce the residual effects on traffic and transportation.

• Yancoal will work with the rural municipalities and governments to facilitate local traffic movement around the core facilities area.

Yancoal Canada Resources Company Limited

Southey Project

Socio-Economic EnvironmentResults Continued:• Quality of Life

• Air modelling indicated that emissions will be within guideline values.

• Water assessment determined that there would be no significant residual effects on water quality.

• Noise levels were predicted to be within guideline values at all noise receptors except one.

• Visual aesthetics will be altered for some farmyards, and residences.

• Available agricultural land will be reduced.• No known traditional land use exists within the Project footprint.

Yancoal Canada Resources Company Limited

Southey Project

Visual Aesthetics

FILE No.

SCALE AS SHOWN

FIGURE: 1REV. A

PROJECT

TITLE

PROJECT

DESIGN

GIS

CHECK

VISUALIZATION VIEWPOINTSOVERVIEW MAP

REVIEWSaskatoon, Saskatchewan

JE 10/06/15

12-1362-0197

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500000 520000 540000

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SECTION BOUNDARY

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FIELD OF VIEW

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MINISTRY OF ENERGY AND RESOURCES SASKATCHEWANCANVEC © NATURAL RESOURCES CANADANTS MAPSHEET: 62L/M, 72I/J/O/PNAD83 UTM ZONE 13

REFERENCE

LEGEND

YANCOALSOUTHEY PROJECT

GM 13/04/15

SCALE 1:150,000

FILE No.

SCALE AS SHOWN

FIGURE: 1REV. A

PROJECT

TITLE

PROJECT

DESIGN

GIS

CHECK

VISUALIZATION VIEWPOINTSOVERVIEW MAP

REVIEWSaskatoon, Saskatchewan

JE 10/06/15

12-1362-0197

!>

!>

!>

!> !>

!>

!>

!>

!>Earl Grey

Bulyea

Southey

Strasbourg

West Loon Creek

OakLake

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MINISTRY OF ENERGY AND RESOURCES SASKATCHEWANCANVEC © NATURAL RESOURCES CANADANTS MAPSHEET: 62L/M, 72I/J/O/PNAD83 UTM ZONE 13

REFERENCE

LEGEND

YANCOALSOUTHEY PROJECT

GM 13/04/15

SCALE 1:150,000

Visual AestheticsVP1

Baseline

Stage 1 (20 years)

Stage 2 (40 years)

Stage 3 (100 years)

VP4VP2 VP5VP3

Visual AestheticsVP6

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VP9VP7 VP8

Yancoal Canada Resources Company Limited

Southey Project

Engagement• Engagement and community

involvement is an important part of the Environmental Assessment and permitting process.

• Yancoal will continue to maintain regular communication with the following groups and organizations:• Public (rural municipalities, towns, villages, landowners, and other

interested members of the public);• First Nation and Métis communities; and• Governmental and regulatory agencies.

• The intent of these engagement activities are to:• Provide information on the Project to potentially affected people

and other interested members of the public; and• To actively seek comments from the general public and First

Nation and Métis communities regarding existing environmental and socio-economic conditions in the local area.

Yancoal Canada Resources Company Limited

Southey Project

Contact InformationFor more information about

Yancoal’s Southey Project please contact:

Yancoal Canada Resources Co. Ltd.Unit 300 - 211 4th Avenue South

Saskatoon, SaskatchewanS7K 1N1

Mr. Asad NaqviT: (306) 668-5558, Ext. 6011E-mail: [email protected]

Ms. Leina LiaoT: (306) 668-5558, Ext. 6000

E-mail: [email protected]

www.yancoal.ca