tees money is available to the State if the reclama- tion work is not completed to the satisfaction of the Department of Natural Resources. The State can use the bond funds to hire contrac- tors to complete the work at no cost to the State or land owners. The amount needed is reviewed on a regular basis and updated to reflect current condi- tions and costs. When mine closure is complete, the pit will be allowed to fill with water and become a lake over time (approximately 52 years). The water will be monitored on an ongoing basis and treated to meet water-quality standards before it can be discharged. Donlin Gold and the State of Alaska estimate the cost to monitor and treat the water to be just under $4 million annually. To cover the cost, Donlin Gold proposes to establish a trust fund and deposit $109 million during mine operations, which is in addition to the $240 million that will cover the first phase of reclamation. Just like Alaska’s Permanent Fund, the original $109 million deposit will remain intact to provide annual earnings that will pay for water monitoring, treatment and facility maintenance. Donlin Gold’s investments will be evaluated every five years to en- sure that there are sufficient funds to cover all costs. Regulators will be able to adjust the amount invested to account for project changes and conditions. Responsible environmental stewardship is a pri- ority for the mining industry. Donlin Gold’s plan for reclamation goes beyond permitting requirements to ensure the region’s ecosystem remains healthy long after the mine closes. cial assurance through the establishment of a trust fund that will exceed $100 million. The Donlin Gold project is in Western Alaska in the Yukon Kuskokwim region, 280 miles from An- chorage, 150 miles from Bethel and 60 miles from Aniak. Donlin Gold is a high-grade gold deposit with approximately 39 million ounces of gold in the measured and indicated category at an aver- age grade of 2.24 grams per tonne. The proposed open pit mine is estimated to have a life of 27-plus years. Donlin Gold is equally owned by NOVAGOLD Resources Alaska, Inc. and Barrick Gold US, Inc. They are wholly-owned subsidiaries of NOVAGOLD RESOURCES Inc. and Barrick Gold Corporation, respectively. For more information about Donlin Gold, visit the website at donlingold.com
The reclamation process When mining ends, the law requires operators to remove all structures, restore the land to its approx- imate original contour as well as monitor and treat water for as long as necessary. Donlin Gold has submitted a plan to the State of Alaska for review and approval that details how it will close the mine. Under the State requirements, Donlin Gold has estimated the total costs of all the proposed activities, including long-term water management and treatment. This estimate provides the basis for the financial assurance that Donlin Gold must provide to the State prior to starting operations. Donlin Gold is committed to the safety of water in the YK region. The financial assurance will provide more than sufficient funding for a water-treatment program at the mine site for many generations after the mine has closed. The reclamation process is split into two phases: 1. Closure and reclamation (0-6 years after opera- tions end) 2. Long-term care and maintenance, in- cluding water management and monitoring (6 years on) and, ultimately, water treatment (when needed after an estimated 52 years). Donlin Gold and the State estimate the cost of the closure phase to be approximately $240 million. This includes removal of all buildings and equipment, de- commissioning the pipeline and re-contouring and seeding the land. Prior to construction, Donlin Gold will provide a bond, which is a financial instrument that guaran- when the mine closes. Water from the tailings storage facility will be transferred into the pit, which will eventually become a lake. The tailings storage facility, along with the waste rock facili- ty and other disturbed areas, will be reclaimed by being re-contoured, covered with soil as needed and vegetated. It will take an estimated six years to close the mine and complete reclamation. After reclamation and closure, water in the pit lake will be monitored on an ongoing basis and treated to water-quality standards before any releases, which Donlin Gold estimates will begin approximately 52 years after mine operations cease. Donlin Gold and the State estimate that it will cost just under $4 million a year to monitor and treat the water and maintain the treatment plant. All of these costs are accounted for in the finan-
January 2019
The Alaska Miner
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