Accountable for our Use

DMA: Energy & GHG Emissions

Gold production is an energy-intensive process, using fuel to extract ore in the open pit and electricity to run the mill. Most of our greenhouse gas (GHG) emissions come from the combustion of diesel in mining equipment. To minimize our output, we use high-efficiency hybrid (diesel/electric) equipment. We also track energy and GHG performance and have put in place an energy management plan to help drive savings.

Most of the power used by the mill is obtained from the Ontario electricity grid. As such, we participate in the Ontario Independent Electricity System Operator’s (IESO) Industrial Electrical Incentive Program, which enables us to reduce our yearly electricity costs by almost 50% over a 10-year period. The incentive recognizes Detour Gold’s position as a long-term employer committed to northern Ontario and encourages electricity consumption within the province. The program requires us to have an ongoing management plan illustrating our conversation efforts. We update this plan and submit it to the IESO annually.

To demonstrate transparency, Detour Gold began reporting to the Carbon Disclosure Project (Climate) in 2015 and continues to do so. Our submissions are posted on the CDP website at cdp.net.

2016 Performance

Energy consumption and related GHG emissions rose in 2016 primarily due to an increased number of trucks in the pit, and “long hauling” waste rock to further distances for stockpiling.

G4-EN15, EN16

Ontario's Climate Change Strategy

A Note on the Government of Ontario’s Climate Change Strategy

In November 2015 the Government of Ontario released a Climate Change Strategy to set the long-term vision for meeting greenhouse gas reduction targets. Detour Gold recognizes both our contribution to greenhouse gas emissions and the impact climate change can have on our operation. Specifically, there are three areas where Detour could be impacted by climate change and it is within these areas that we have established plans to manage risk.

Risk Control
Policy Changes

1. Cap & Trade (C&T) in Ontario is an example of a policy change that can have an impact on our operation. C&T will create price increases in diesel, propane and natural gas consumption.

2. The introduction of a federal carbon tax may create additional cost pressures on the operation

3. A change in provincial government could alter the current climate change policy format, similar to the tax structure adopted in British Columbia

Track regulatory and policy changes

Participate in lobbying efforts alongside industry associations

Energy Demands

1. As the operation continues to grow, so too will fuel combustion and associated costs. The mine has been designed to reduce operating costs and minimize transportation risks, consequently this helps manage diesel consumption

2. The largest electricity consumer on our site is the process plant. Fortunately, electricity produced in Ontario is primarily from nuclear and hydro sources, which means an already low carbon footprint.

Opportunity to increase intensity by moving more material for every litre consumed. To achieve this we must optimize travel routes and upgrade small equipment to larger equipment

Our energy management plan includes a list of capital/operation projects that could reduce electricity consumption. This plan is a requirement of the Industrial Electricity Initiative.

Environmental Factors 1. Climate change can impact the weather and therefore our operation through increased precipitation, storm severity and temperature extremes.

Tailings management and water management infrastructure have been built to incorporate 1-25 years to 1-100 year storm events

The mine site buildings are protected by fire breaks from the surrounding forests

Pumping capacity has increased to manage greater rain events

We track precipitation and other climate data at our on-site weather stations

Air Emissions

DMA: Emissions

Our regular operations involve moving soil and rock and extracting precious metals – activities that release gas, dust and other substances into the atmosphere. We work to minimize the amount and the effects of these emissions during the life of the mine and beyond:

  • To control dust, we water the roads and trap dust with an approved suppressant.
  • To reduce the movement of crushed ore that releases dust, we built an ore storage dome.
  • To reduce dust inside the plant, we limit or stop dust at the source.

Two stations at the permanent camp and the construction camp monitor air quality. There were no exceedances for ambient air quality for total suspended particulates (TSP) or dust, and metal concentrations in the TSP were all well below applicable standards in 2016.

In 2016 we partnered with a local Aboriginal family and the University of Guelph to the impact of dust on locally harvested country food sources around our mine site. Country food is food that is harvested by hunting, fishing and gathering activities and is eaten by both humans and animals. For our study, we tested donated samples of beaver, blueberry, lichen (a popular food source for caribou) and several other plant species. The samples were tested for toxic metals including mercury, lead and cadmium at a facility in Waterloo, Ontario. While these metals occur naturally in vegetation and animals, all of the test results indicated samples were well below the Estimated and Tolerable Daily Intake guidelines for adults and toddlers as described by Health Canada, and therefore a low risk to human health. The impact of dust on locally harvested food continues to be an area of concern for local land users who hunt, trap, fish and collect barriers in the vicinity of the mine. We are encouraged by these preliminary results and will continue our monitoring programs.

Energy and GHG Intensity 2015-2016

G4-EN5, EN18

Energy and GHG intensity are measures of efficiency that help us better manage our performance.

2016:

Energy Intensity GHG Intensity
251,720 GJ/Mt of ore moved 10,382 tCo2e/Mt of ore moved
9.8 GJ/ounce of gold produced 0.41 tCo2e/ounce of gold produced
8,030 GJ/$M revenue 331 tCo2e/$M revenue

2015:

Energy Intensity GHG Intensity
258,900GJ/Mt of ore moved 10,910 tCO2e/Mt of ore moved
10.14 GJ/ounce of gold produced 0.49 tCO2e/ounce of gold produced
9,100 GJ/$Mdollar of revenue 384 tCo2e/$Mdollar of revenue