TERMS OF REFERENCE FOR THE SOCIAL IMPACT ASSESSMENT BAFFINLAND IRON MINES CORPORATION TRANS-SHIPPING OF IRON ORE IN GREENLAND WATERS MARCH 2015 MARY RIVER PROJECT Terms of Reference SIA March 2015 TABLE OF CONTENTS Section 1.0 - Introduction ........................................................................................................................................ 5 1.1 Purpose of this document ....................................................................................................................... 5 Section 2.0 - Project Description and Evaluation of Alternatives ............................................................................ 8 Section 3.0 - The SIA Process .............................................................................................................................. 10 3.1 Legislative Framework .......................................................................................................................... 10 3.2 Documents for Approval ........................................................................................................................ 10 3.3 Relevant Authorities .............................................................................................................................. 11 Section 4.0 - Stakeholder Engagement and Public Participation ......................................................................... 12 Section 5.0 - Methodologies .................................................................................................................................. 13 5.1 Qualitative methods............................................................................................................................... 13 5.2 Quantitative methods ............................................................................................................................ 13 5.3 How will impacts be assessed? ............................................................................................................ 13 5.4 Scoping phase ....................................................................................................................................... 13 5.5 Study of the local use of the proposed trans-shipping areas ................................................................ 13 Section 6.0 - Potential Positive Impacts ................................................................................................................ 15 6.1 Business Life ......................................................................................................................................... 15 6.2 Employment at the Project .................................................................................................................... 15 6.3 Public Service and Economy ................................................................................................................ 15 6.4 Infrastructure ......................................................................................................................................... 15 6.5 Summary of impacts.............................................................................................................................. 15 6.6 Maximization of development opportunities .......................................................................................... 15 Section 7.0 - Potential Negative Impacts .............................................................................................................. 16 7.1 Socio-Economic Issues ......................................................................................................................... 16 7.2 Health issues ......................................................................................................................................... 16 7.3 Recreational values ............................................................................................................................... 16 7.4 Summary of impacts.............................................................................................................................. 16 7.5 Mitigation Measures .............................................................................................................................. 16 Section 8.0 - Possible project expansions and closure scenarios ........................................................................ 17 Section 9.0 - References ....................................................................................................................................... 18 2 of 18 MARY RIVER PROJECT Terms of Reference SIA March 2015 Figures Figure 1 Figure 2 Conceptual Shipping route from Milne Port to trans-shipment locations Preferred Trans-shipping Location (N3) Appendices Appendix 1 – Project Description 3 of 18 MARY RIVER PROJECT Terms of Reference SIA March 2015 ACRONYMS AND ABBREVIATIONS Proponent Baffinland Baffinland Iron Mines Corporation Government Agencies & Organizations PAIAN Ministry of Nature, Environment and Justice BMP Bureau of Minerals and Petroleum DMA Danish Maritime Authority GINR Greenland Institute of Natural Resources ISNN Ministry of Industry, Labor and Trade (former Ministry of Industry and Mineral Resources) Social Assessment Terminology TOR Terms of Reference EIA Environmental Impact Assessment SIA Social Impact Assessment NIA Natural Impact Assessment SEP Stakeholder Engagement Plan Other Acronyms IBA MTPA PC4 PC4 S/D Panamax GA KNAPK SIK GMC Impact Benefit Agreement Million Tonnes Per Annum Polar Class 4 vessels Polar Class 4 self-discharging vessels Employers’ Association of Greenland Greenlandic Association of Hunters and Fishermen National Workers’ Union Greenland Maritime Center Spill Responses Acronyms GOSR Greenland Oil Spill Response 4 of 18 MARY RIVER PROJECT Terms of Reference SIA March 2015 SECTION 1.0 - INTRODUCTION Baffinland Iron Mines Corporation (Baffinland) is a Canadian company with its corporate head office located in Oakville, Ontario, Canada, and a northern headquarters located in Iqaluit, Nunavut, Canada. Baffinland is a joint venture between ArcelorMittal (50%) and Iron Ore Holdings LP (50%), with AcelorMittal acting as the Project Operator. Baffinland operates an iron ore mine at the Mary River site, located in the North Baffin region of Nunavut, Canada (Figure 1). The mine is scheduled to begin shipment of iron ore from Milne Port during the open-water season of 2015. A second phase of the Mary River Project development (Phase 2) will enable Baffinland to increase shipment of iron ore from 4.2 million tonnes per annum (mtpa) to 12 mtpa from Milne Port by 2018. This second phase of development will extend the shipping season from June through to March each year for 21 years. Phase 2 will see a ramp up to the nominal 12 mtpa over several years. Baffinland intends that up to 6 mtpa would be transshipped in Greenlandic waters. The current design of the Milne Port ore dock is limited to Post-Panamax-size ore carriers. To achieve cost effective iron ore shipping, a trans-shipment operation to larger Cape-size bulk carriers (capacity of approximately 180,000 dwt) will be required. For Phase 2 of the Mary River Project, Baffinland will design and purchase two self-discharging ice reinforced PC4 (DNV ICE17) Panamax ships, capable of transporting 85,000 dwt per voyage. During the open-water season in Nunavut, from mid-July to October, trans-shipment of ore to the larger Cape-size ore carriers will be conducted in Eclipse Sound, Nunavut. During the periods of ice coverage, specifically June to mid-July and mid-October through March, Baffinland proposes to conduct seasonal trans-shipment operations off the coast of Greenland. A more detailed Project Description for proposed trans-shipping activities is located in Appendix 1 of this document. 1.1 PURPOSE OF THIS DOCUMENT The trans-shipping operation in Greenland waters requires authorization from the Government of Greenland. In order to be granted a licence to undertake vessel trans-shipping activities in Greenland waters it has been agreed that, Baffinland must: 1. Provide an environmental impact assessment (EIA) for the Project activities. For the preparation of the EIA, Baffinland use as a guide the Bureau of Minerals and Petroleum (BMP) Guidelines for preparing an Environmental Impact Assessment (EIA), Report for Mineral Exploration in Greenland, 2nd edition, dated January 2011, supplemented with best international practices where applicable; 2. Provide a social impact assessment (SIA) for the Project activities. The SIA should be adjusted and scaled to fit the size of the project, as the project is much more limited than a traditional mining project. For the preparation of the SIA, Baffinland used as a guide the BMP Guidelines for Social Impact Assessments for mining projects in Greenland, dated November 2009, supplemented with experiences, which the Government of Greenland has gained from 2009-2015 and best international practices where applicable; and, 3. Satisfy the requirements of the Danish Maritime Authority (DMA) as outlined in the DMA guidelines dated January 10, 2011, for an investigation of issues in connection with projects operating in Greenland waters. This document is a draft plan, i.e. a “Terms of Reference” (TOR), for the SIA. In the TOR all relevant issues that shall be assessed in the SIA are identified. The TOR also provides regulatory authorities and the public with a 5 of 18 MARY RIVER PROJECT Terms of Reference SIA March 2015 brief explanation of the proposed project (Appendix 1) and what socio-economic impacts it might have on the Greenlandic society (Chapter 6 and 7). The TOR has been developed in consultation with stakeholders and has been submitted to the Government of Greenland for comments and approval before the government has made it available for public review at www.naalakkersuisut.gl in a period of 35 days. Trans-shipment activities are entirely marine based, although it is recognized that indirect activities such as fuel re-supply and potential employment opportunities would indirectly affect the mainland. Therefore, the SIA will focus on a limited number of issues: 1. Engaging Greenlandic enterprises; a. Ship resupply activities (fuel, groceries and other supplies) b. Possible subcontracts for tugs 2. Recruiting Greenlandic labour; a. Employment opportunities 3. Knowledge transfer; a. Training opportunities 4. Procurement (goods in general, food, fuel etc.); a. Possible crew changes in Greenland (hotels, airfares, etc.) 5. 6. 7. 8. 9. Payment of a fee to the Government for trans-shipment in Greenland waters; Social Issues; Health Issues; Recreational Values and use of the area; and, Involvement of stakeholders. 6 of 18 MARY RIVER PROJECT Terms of Reference SIA March 2015 Figure 1 Conceptual shipping route from Milne Port to preferred trans-shipment location (N3) and alternate (M3) location 7 of 18 70°W 60°W 50°W 40°W 77°30'N 80°W G Map Area R E Mary River Project Shipping Area Mary River Project E N L AA DD 75°N NN LEGEND l) Shipping Route has been generalized for mapping purposes. IS S Manitsoq A DD IT Nuuk N3 Qeqertarssuag Island Scale: 1:10,000,000 0 50 100 200 300 400 Km Pangnirtung FOXE BAS IN Iqaluit 65°N 67°30'N North America Lambert Conformal This document is not an official land survey and the spatial data presented is subject to change without notice. R N V T Qikiqtarjuaq A Map Projection: Conic Sisimiut HUD SO N ST RA LAB RAD OR SEA IT Conceptual shipping route from Milne Port to the preferred trans-shipment location (N3) and alternative location (M3) in Greenland Date: 15/01/2015 Figure 1 80°W 70°W 60°W Path: J:\Yukon\Projects\2014\14_Y_0611_Baffinland_P hase2E A\Mapping\Mapping_13Jan2015\Fig1_ShippingMap_Overview_14Jan2015_MP.mxd 70°N NOTES D LA Shipping Route - Winter Months KK )) ua pt 72°30'N ce IS Shipping Route - Open Water Season R AA R on (C Qeqertarsuaq Clyde River F IN Capital M M te B AF Community EE NN u Ro BAY Pond Inlet Milne Port (( DD g BAFFIN Milne Port Mary River Project pi n MILNE INLET ip Sh ECLIPSE SOUND Mary River Project MARY RIVER PROJECT Terms of Reference - SIA March 2015 SECTION 2.0 - PROJECT DESCRIPTION AND EVALUATION OF ALTERNATIVES Baffinland’s trans-shipping operation in Greenland waters will be accomplished through the use of two (2) purposed built Panamax 85,000 dwt PC4-DNV ICE 17 ore carriers with self-discharging (S/D) capability. It is expected that there will be around one trans-shipping operation pr. week and that the operation will take up to 48 hours. The sequence of activities is as follows: 1. Arrival of Cape size vessel and mooring at trans-shipping site; 2. Arrival of first PC4 S/D and positioning of ship with assistance of tug boats; 3. Begin transfer of ore at a rate of 5,000 to 6,000 tonnes per hour. The transfer of the 85,000 tonnes cargo is expected to take 17 to 18 hours; 4. While unloading, the PC4 S/D vessel is resupplied with fuel and other necessities required by the crew; 5. Once the transfer completed, the first PC4 S/D vessel departs for Milne Inlet Port; 6. The second PC4 S/D arrives at trans-shipping location; 7. Tugs assist in positioning of PC4 S/D and unloading of cargo begins; 8. While unloading, the second PC4 S/D vessel is resupplied with fuel and other necessities required by the crew; 9. Once the transfer completed, the second PC4 S/D vessel departs for Milne Port; 10. The Cape size vessel leaves mooring site with cargo of ~170,000 tonnes of ore. 11. The tugs return to the nearest city for resupply and waits for next cape ore carrier. It is expected that total loading time for the Cape size vessel will be in the range of 40 hours and that each of the PC4 S/D vessels would remain in the trans-shipping location for a maximum of 24 hours. Baffinland expects that up to 6.0 mtpa of iron ore will be transhipped in Greenland territorial waters corresponding to 35 Cape vessels annually. This operation will require up to 35 ore loads from each of its PC4 S/D vessels (total of 70 loads) from Milne Port to the trans-shipment location. During the trans-shipment operation, up to six vessels will be active in the trans-shipment area (one Cape size ore carrier, two PC4 S/D vessels, two tug and one resupply ship). The duration of the trans-shipping operation is expected to occur for 21 years which is the estimated life of the Mary River Project. As mentioned in the introduction the trans-shipping operations in Greenlandic waters will take place from June to July and from October to March A more detailed Project Description for the proposed trans-shipping activities is attached in Appendix 1 of this document, which include a description of the preferred trans-shipping site, which is illustrated below. The selection of the preferred site is based on the following study: The Evaluation of Potential Transshipment Sites in Greenland Waters. This study is included as Attachment A to the Project Description as supporting information. 8 of 18 MARY RIVER PROJECT Terms of Reference - SIA March 2015 Figure 2 Preferred Trans-shipping Location (N3) 9 of 18 MARY RIVER PROJECT Terms of Reference - SIA March 2015 SECTION 3.0 - THE SIA PROCESS 3.1 LEGISLATIVE FRAMEWORK There is currently no formal legal requirement in present Greenlandic legislation for Social Impact Assessment of a project like the Baffinland’s Trans-shipping Project. However, the Greenlandic Parliament Act no. 29 of 18 December 2003 relative to Nature Protection stipulates that Baffinland must conduct a Nature Impact Assessment (NIA), widely similar to a traditional Environmental Impact Assessment, and that an assessment of health impacts and impacts on local use of the area should be included in the NIA. Of relevance to Baffinland’s Trans-shipping Project is the fact that the Government of Greenland, Naalakkersuisut, intends to develop an act for social sustainable development of certain maritime and industrial activities in Greenlandic waters. It is planned that the act will be read and adopted by the Greenlandic parliament in 2015 or 2016. This new Act will include a passage about Environmental Impact Assessment and also provide statutory authority to collect fees. To ensure that both present and future legal requirements are met, Baffinland has been asked by the authorities to prepare a SIA based on BMP Guidelines. However, according to government authorities, the SIA report should be adjusted and scaled to fit the size and scope of the project, as the project impact in Greenland is much more limited than an impact from a mining project in Greenland. 3.2 DOCUMENTS FOR APPROVAL The anticipated process timeline for the Mary River Trans-shipping Project is described below. As part of the process Baffinland will prepare a number of SIA documents for approval: 1. 2. 3. 4. 5. 6. Draft SIA TOR; White Paper addressing relevant input from the first round of consultations; Revised and final SIA TOR; Draft SIA; White Paper addressing relevant input from the second round of consultations; and Final SIA. The anticipated timeline for these documents are as follows but are subject to further discussion with stakeholders: It is anticipated that this draft SIA TOR will be submitted to the Ministry of Industry, Labor and Trade together with the draft EIA TOR towards the end March 2015. The TOR will subsequently be made available for public hearing at www.naalakkersuisut.gl for 35 days. In Q2 of 2015, it is anticipated that Baffinland will be in a position to conduct a number of community meetings to collect input to the TOR from relevant stakeholders. After these meetings Baffinland will develop a White Paper in which all relevant consultation statements, questions, remarks and comments on the project will be documented and addressed. In the White Paper Baffinland or relevant authorities will answer remarks and questions depending on who the questions are addressed. The White Paper will subsequently be published on www.naalakkersuisut.gl. After the public hearings and the Q2-2015 consultations the draft SIA TOR will be revised and a final version of the TOR will be submitted to the authorities for approval. 10 of 18 MARY RIVER PROJECT Terms of Reference - SIA March 2015 Once the TOR is approved by the authorities (anticipated May/June 2015) Baffinland will start developing the SIA report. This will of course be done with input from stakeholders. Preliminary conclusions will be presented for stakeholders in September/October 2015, and stakeholder input will be integrated in the SIA before a draft version is submitted to the government in February 2016. The draft SIA will be made available for public hearing for a period of minimum eight weeks at www.naalakkersuisut.gl. The authorities will arrange and coordinate a public hearing of the draft SIA. Subsequently Baffinland will develop a White Paper addressing questions and comments from the public hearing process. The White Paper will be made available at the government webpage: www.naalakkersuisut.gl. The draft SIA will be revised with input from the public hearing process and in the second half of 2016 a final version of the SIA will be submitted to Naalakkersuisut for approval. 3.3 RELEVANT AUTHORITIES A list of relevant authorities will be included in the SIA. At this point in the process the relevant authorities are identified as: The Ministry of Industry, Labor and Trade will be lead agency for review and approval of the SIA The Ministry of Environment, Nature and justice will be lead agency for review and approval of the EIA The Danish Marine Authority will be the lead agency for review and approval of the Navigational Safety Investigation Report 11 of 18 MARY RIVER PROJECT Terms of Reference - SIA March 2015 SECTION 4.0 - STAKEHOLDER ENGAGEMENT AND PUBLIC PARTICIPATION The development of the SIA will include stakeholder input and feedback throughout the process, and open communication will be maintained at all stages. The involvement of stakeholders is planned according to recommendations in the BMP Guidelines and according to experiences, which the Government of Greenland has gained from 2009-2015 and best international practise (i.e. principles about stakeholder involvement from the International Association for Public Participation). Stakeholder engagement will be documented in a Stakeholder Engagement Plan (SEP) which will include: 1. 2. 3. 4. 5. 6. A stakeholder engagement strategy; A strategy for managing public relations; Meeting schedules; A list of identified stakeholders; Meeting notes; and, The before-mentioned white papers. The SEP will be attached to the final SIA as an appendix (a place holder for the plan is marked as Appendix 2 in this draft TOR). To assist with stakeholder engagement Baffinland has contracted with two Greenlandic companies (LNS and INUPLAN) that have knowledge about the local setting and local stakeholders. As requested in Guidelines for Social Impact Assessments for mining projects in Greenland 1 all meetings and workshops will be held in Greenlandic, Danish and English based on stakeholder preferences and all written materials made available for the public will be translated into both Greenlandic and Danish. The draft SIA TOR has been developed based on input from stakeholders collected during a round of meetings held in Nuuk in December 2014 (see Chapter 5 Methodologies). The following stakeholders where consulted: The Ministry of Environment, Nature and justice The Ministry of Industry and Mineral Resources Kommuneqarfik Sermersooq Greenland Institute of Natural Resources GA KNAPK The Greenlandic NGO Coalition Representatives of cabin owners in the area (N3) Greenland Oil Spill Response Danish Maritime Authority (Copenhagen office) 1 Bureau of Minerals and Petroleum: Guidelines for Social Impact Assessments for mining projects in Greenland, p. 5. 12 of 18 MARY RIVER PROJECT Terms of Reference - SIA March 2015 SECTION 5.0 - METHODOLOGIES In this chapter the methodologies used to assess potential impacts from the proposed activities will be described. 5.1 QUALITATIVE METHODS The SIA approach can be described as a participative approach with stakeholders involved at all stages of the process. Qualitative data collection methods in the form of interviews, focus group meetings, workshops, etc., will be used to collect information about areas that might be impacted by the proposed activities. Stakeholders will be involved in the assessment of alternatives and in identification of mitigating measures and maximization of development opportunities. 5.2 QUANTITATIVE METHODS Where data from primary sources cannot be obtained desk top studies of secondary sources such as the Mobility Study in Greenland (2010) and the Survey of Living Conditions in the Arctic (SLiCA) will take place. 5.3 HOW WILL IMPACTS BE ASSESSED? The potential impacts will be assessed and quantified using an impact matrix. The identified impacts will be evaluated according to the following factors: Certainty Extension Duration Frequency Period of manifestation Public concerns Based on the impact matrix mitigating measures and ways to maximize development opportunities will be identified. 5.4 SCOPING PHASE Baffinland has held meetings with stakeholders in December 2014. At these meeting the stakeholders were presented with the latest information about the project and were given opportunity to ask questions and raise concerns. The dialogue with stakeholders has been used to identify relevant topics in this TOR. Stakeholders will be given a new chance to comment on the TOR when the document is submitted to the government and made public on the website. Stakeholders that were not consulted in December 2014 will be consulted after the document is made public. 5.5 STUDY OF THE LOCAL USE OF THE PROPOSED TRANS-SHIPPING AREAS During meetings with central stakeholders in December 2014 a need for a detailed study of the local use of the proposed areas was identified. The study will be conducted using both quantitative and qualitative data collection methods. Quantitative methods include collection of data from the municipal land use authorities and qualitative methods include interviews with hunters, fishermen, cabin owners, etc. 13 of 18 MARY RIVER PROJECT Terms of Reference - SIA March 2015 Workshops to collect qualitative data from these stakeholder groups will be planned once this TOR has been made public on the government webpage. 14 of 18 MARY RIVER PROJECT Terms of Reference - SIA March 2015 SECTION 6.0 - POTENTIAL POSITIVE IMPACTS In the SIA report direct, indirect and induced impacts of the proposed activities will be assessed, including assessment of alternatives to the preferred location. This chapter of the SIA report will deal with positive impacts. As described in the Project Description (Appendix 1) Baffinland’s Trans-shipping Project will impact the Greenlandic society positively in a number of ways. The assessment of these positive impacts will be structured as follows: 6.1 BUSINESS LIFE This section will describe which type of local companies (for instance Greenland Oil Spill Response, Polar Oil and Air Greenland), that could be involved in the project and which tasks they could take on. A description of project related demands for goods and services acquired from Greenlandic companies will also be included in this section. 6.2 EMPLOYMENT AT THE PROJECT This section will describe job positions related to the project and how many of these that will be held by Greenlandic citizens with a permanent address in Greenland. The Greenland Maritime Center and SIK (labour organization) will be consulted for identifying possible job opportunities for people living in Greenland. 6.3 PUBLIC SERVICE AND ECONOMY This section will include an estimate of the revenue that the Tax Agency in Greenland will be able to collect each year and for the entire project period from fees, possible port charges and passenger duties in airports. It will also be described how the vessels used for trans-shipping will not contribute to circumvention of Greenlandic laws e.g. tax law, import duties, etc. 6.4 INFRASTRUCTURE This section will describe airports or ports most likely to be affected by the project and to what extent. The section will also give information about how many ships that are expected to call ports and about how many persons connected to the project are expected to be passengers at Greenlandic airports. 6.5 SUMMARY OF IMPACTS At the end of this chapter an overview of expected benefits will be provided in the form of a table listing all benefits for the Greenland society, including expected government take (fee), jobs, involvement of Greenland enterprises, procurement, direct, indirect and induced effects, knowledge transfer, etc. 6.6 MAXIMIZATION OF DEVELOPMENT OPPORTUNITIES Based on the assessments above opportunities for maximization of development in the Greenlandic society will be identified. Special focus will be on which educational institutions there could benefit from internships on the required vessel. Greenland Maritime Center will be consulted to clarify which positions could be eligible for Greenlandic students attending Greenland Maritime Center. 15 of 18 MARY RIVER PROJECT Terms of Reference - SIA March 2015 SECTION 7.0 - POTENTIAL NEGATIVE IMPACTS In the SIA report direct, indirect and induced impacts of the proposed activities will be assessed, including assessment of alternatives to the preferred location. This chapter of the SIA report will deal with potential negative impacts. As described in the Project Description (Appendix 1) Baffinland’s Trans-Shipping Project could potentially impact certain stakeholder groups negatively. The assessment of these negative impacts will be structured as follows: 7.1 SOCIO-ECONOMIC ISSUES In this section direct, indirect and induced impacts on fishing and hunting (both commercial and private) in the proposed areas will be described. 7.2 HEALTH ISSUES In this section the health policies of the different companies participating in the project will be described. Health impacts of possible environmental impacts identified in the EIA will be also be assessed in this section. 7.3 RECREATIONAL VALUES In this section the recreational use of the proposed areas and their surroundings will be described, for instance fishing and recreational boating and hunting. Projected related impacts on the use of the areas will be assessed. 7.4 SUMMARY OF IMPACTS At the end of this chapter an overview of potential impact will be provided in the form of a table listing all potential impacts. 7.5 MITIGATION MEASURES Based on the assessments above mitigating measures for the potential impacts will be identified. 16 of 18 MARY RIVER PROJECT Terms of Reference - SIA March 2015 SECTION 8.0 - POSSIBLE PROJECT EXPANSIONS AND CLOSURE SCENARIOS As stated in the chapter 2, the Baffinland’s trans-shipping project is entirely marine based. For the initial period, Baffinland proposes to carry out trans-shipping operations during June and from October through March. As Baffinland expands its operation on Baffin Island, and mining production increases to 30 mtpa, transshipment activities could increase in Greenland waters. Descriptions of possible expansions and closure scenarios will be provided in the SIA, including an assessment of the consequence for the trans-shipping activities in Greenland. 17 of 18 MARY RIVER PROJECT Terms of Reference - SIA March 2015 SECTION 9.0 - REFERENCES 1. Bureau of Minerals and Petroleum: Guidelines for Social Impact Assessments for mining projects in Greenland, p. 5. 18 of 18 APPENDIX 1 PROJECT DESCRIPTION TRANS-SHIPPING OF IRON ORE IN GREENLAND WATERS Project Description March 2015 TRANS-SHIPPING IN GREENLAND WATERS Project Description March 2015 TABLE OF CONTENTS SECTION 1.0 - PROJECT DESCRIPTION .................................................................................................. 4 1.1 NEED FOR TRANS-SHIPPING ................................................................................................ 4 1.2 TRANS-SHIPPING .................................................................................................................... 4 1.3 TRANS-SHIPPING SITES IDENTIFIED ON THE GREENLAND COAST ............................... 5 1.4 TRANS-SHIPPING OPERATION ............................................................................................. 9 1.5 DURATION OF THE TRANS-SHIPPING OPERATION ......................................................... 11 SECTION 2.0 - NAVIGATIONAL SAFETY INVESTIGATION .................................................................... 12 2.1 CHARTING OF SHIPPING ROUTE AND BATHYMETRIC SURVEYS .................................. 12 2.2 ENVIRONMENTAL IMPACT ASSESSMENT ......................................................................... 12 SECTION 3.0 - REGULATORY FRAMEWORK FOR SHIPPING .............................................................. 13 3.1 PREVENTING POLLUTION AND VESSEL DISCHARGES ................................................... 13 3.2 SHIPBOARD OIL POLLUTION EMERGENCY PLANS (SOPEP) .......................................... 14 3.3 NAVIGATIONAL SAFETY ....................................................................................................... 14 3.4 NAVIGATION AND RADIO COMMUNICATIONS EQUIPMENT ............................................ 14 3.5 SHIP WASTE MANAGEMENT................................................................................................ 14 3.6 BALLAST WATER MANAGEMENT ........................................................................................ 15 3.7 SPILL RESPONSE PROCEDURES ....................................................................................... 15 SECTION 4.0 - ENVIRONMENTAL CONSIDERATIONS .......................................................................... 16 4.1 DUST ....................................................................................................................................... 16 4.2 NOISE ...................................................................................................................................... 16 4.3 INTERACTIONS WITH MARINE MAMMALS ......................................................................... 17 4.4 INTERACTION WITH ANTHROPOGENIC ACTIVITIES ........................................................ 17 4.5 ENVIRONMENTAL IMPACT ASSESSMENT ......................................................................... 17 SECTION 5.0 - ECONOMIC DEVELOPMENT OPPORTUNITIES IN GREENLAND ................................ 18 5.1 TUG BOAT SERVICES ........................................................................................................... 18 5.2 FUEL AND GENERAL RESUPPLY OF PC4 SELF-UNLOADING VESSELS ........................ 18 5.3 SOCIAL IMPACT ASSESSMENT ........................................................................................... 18 SECTION 6.0 - REFERENCES .................................................................................................................. 19 2 of 19 TRANS-SHIPPING IN GREENLAND WATERS Project Description March 2015 Attachment A: Evaluation of Potential Trans-shipment Sites in Greenland Waters Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Conceptual shipping route from Milne Port to the preferred transshipment location (N3) and alternative (M3) location ......................................................... 6 Preferred trans-shipment location N3 – north of Qeqertarssuaq Island ............................ 7 Alternative trans-shipment location (M3) – Kangerluk Fiord, Maniitsoq Island ................................................................................................................................... 8 Trans-shipping of Iron Ore ................................................................................................. 9 Canada Steamship Lines Atlas (self-discharging vessel) ................................................ 11 Dust Generated during Trans-shipping of Iron Ore Concentrate (~150 micron in size) ................................................................................................................... 16 3 of 19 TRANS-SHIPPING IN GREENLAND WATERS Project Description March 2015 SECTION 1.0 - PROJECT DESCRIPTION Baffinland Iron Mines Corporation (Baffinland), which is a joint venture between ArcelorMittal (50%) and Iron Ore Holdings LP (50%) owns several iron ore deposits in the Qikiqtani Region of Nunavut, Canada. In September of 2014, Baffinland began mining of its Deposit No. 1 and, in July of 2015, plans to commenced shipping of up to 4.2 million tonnes per annum (mtpa) of iron ore from its Milne Inlet Port facility located on North Baffin Island. The iron ore will be shipped primarily to European customers with the use of market ore carriers. The Milne Inlet port can accommodate ore carriers ranging in size from 55,000 dead weight tonnes (dwt) to 95,000 dwt (Supramax to Post-Panamax ore carriers). Since few market ore carriers are capable of navigation in ice covered waters, direct shipping activities from Milne Port will initially be limited to the open water season of the Canadian Arctic (mid July to mid October annually). Beginning in June 2017, Baffinland proposes to extend the ship loading season to about eight (8) months per year and ship up to 12 mtpa of iron ore from Milne Port. The shipping season will commence in June and carry through into March of each year. 1.1 NEED FOR TRANS-SHIPPING As the Canadian shipping route via “Baffin Bay - Eclipse Sound - Milne Inlet” (refer to Figure 1) is covered in ice during much of the proposed shipping period (late October through to mid July each year), and, there are limited numbers of market ore carriers capable of navigating through ice covered waters, achieving the desired objective for shipment of 12 mtpa from Milne Port to European customes will depends on: 1) Reliable access to Milne Port by ore carriers during the ice covered period. Therefore, Baffinland will acquire two purposed built self-discharging ore carriers with ice-breaking capabilities that will allow access to Milne Port year round. 2) The use and availability of market ore carriers for shipment of iron ore, including the use of larger vessels such as Cape size ore carriers (capacity of 180,000 dwt) for shipping of iron ore. The use of Cape sized vessels is necessary to achieve shipment of 12 mtpa and will also enable more efficient and cost effective shipment of larger tonnage of iron ore. 3) The Milne Port loading dock can accommodate vessels of up to 90,000 dwt. In order to ship ore with the larger Cape size ore carriers, a trans-shipping operation in ice free waters will be necessary. 4) Baffinland proposes to carry out trans-shipping activities at a selected location in Eclipse Sound (Nunavut) during the open water season, and, at a location in the ice free waters of southwest Greenland during the winter months (June to mid July and, October to March annually). 1.2 TRANS-SHIPPING For obvious economic reasons, the suitable trans-shipping site needs to be as close to the Milne Port as possible. Therefore, during the open water season of the Canadian Arctic (mid July to late October), Baffinland proposes to carry out the trans-shipping activities at a site in Eclipse Sound. Once the shipping 4 of 19 TRANS-SHIPPING IN GREENLAND WATERS Project Description March 2015 route (Baffin Bay – Eclipse Sound – Milne Inlet) freezes in late October, market vessels which are not designed to navigate in ice infested waters can no longer sail to Milne Port. Therefore, an alternative to Eclipse Sound must be used for trans-shipping activities during the ice covered period (June to mid July and from October to March). The nominal shipping route and proposed trans-shipping location in Greenland waters is shown on Figure 1. Trans-shipping can only be achieved in open waters. The essential characteristics of a suitable transshipping site include: Absence of strong ocean currents; Natural protection from high winds and large swells; Deep bathymetry with suitable anchorage locations; Site protected against sea ice, ice flows and icebergs; Ease of access and navigation by large vessels; Some desirable characteristics include: Absence of human activities such fisheries and recreational boating to limit interference with trans-shipping activities; Proximity to an established community in order to access established support services such as ship re-supply, refuelling of vessels, tug boat services. The southern west coast of Greenland benefits from ice free water condition year around and is expected to be practical for shipping access during a 12 month period using cape ore carriers with no ice strengthening. During the winter months, the sea ice in Baffin Bay typically only extends down to the region of Aasiaat and Sisimiut, with a navigable corridor that is occasionally covered in new ice extending down as far as Maniitsoq in the extreme year during about February/March. The southern limit is bounded by the Storis (or East Ice), which rounds Cape Farewell in the spring. The Storis is usually a combination of multiyear sea ice and ice of land origin that can make its way as far north as Paamiut in the early summer before it finally melts or is driven by the currents west toward the Canadian coastline. 1.3 TRANS-SHIPPING SITES IDENTIFIED ON THE GREENLAND COAST Based on the generalized assessment of ice conditions and navigation maps, the southern west coast of Greenland offers a number of suitable sites for the trans-shipment. Numerous potential trans-shipping sites on the southwest coastline of Greenland were investigated for proposed favourable trans-shipment site. An initial Trans-shipment screening study completed by Baffinland in 2011 identified twenty-one potential trans-shipment sites. The ranking of the sites considered a number of factors including navigation concerns, proximity to manpower, flat land for land-based storage of iron ore and the relative comparison of ice conditions; and therefore considers the less favourable ice conditions near Aasiaat and also south of Paamiut. A complementary site investigation study was completed in 2013. An overview of these studies is presented in Attachment A. Based on preliminary review, Site N3 located 40 km south of Nuuk between the island of Qeqertarsuaq and Qarajat Qeqertaat emerged as the optimal trans-shipment site (Figure 2). Site M3 (Figure 3) located 16 nautical miles from the town of Maniitsoq, the North side of the Maniitsoq Island, has potential to be an alternative to the N3 site. 5 of 19 TRANS-SHIPPING IN GREENLAND WATERS Project Description March 2015 Figure 1 Conceptual shipping route from Milne Port to the preferred trans-shipment location (N3) and alternative (M3) location 6 of 19 70°W 60°W 50°W 40°W 77°30'N 80°W G Map Area R E Mary River Project Shipping Area Mary River Project E N L AA DD 75°N NN LEGEND l) Shipping Route has been generalized for mapping purposes. IS S Manitsoq A DD IT Nuuk N3 Qeqertarssuag Island Scale: 1:10,000,000 0 50 100 200 300 400 Km Pangnirtung FOXE BAS IN Iqaluit 65°N 67°30'N North America Lambert Conformal This document is not an official land survey and the spatial data presented is subject to change without notice. R N V T Qikiqtarjuaq A Map Projection: Conic Sisimiut HUD SO N ST RA LAB RAD OR SEA IT Conceptual shipping route from Milne Port to the preferred trans-shipment location (N3) and alternative location (M3) in Greenland Date: 15/01/2015 Figure 1 80°W 70°W 60°W Path: J:\Yukon\Projects\2014\14_Y_0611_Baffinland_P hase2E A\Mapping\Mapping_13Jan2015\Fig1_ShippingMap_Overview_14Jan2015_MP.mxd 70°N NOTES D LA Shipping Route - Winter Months KK )) ua pt 72°30'N ce IS Shipping Route - Open Water Season R AA R on (C Qeqertarsuaq Clyde River F IN Capital M M te B AF Community EE NN u Ro BAY Pond Inlet Milne Port (( DD g BAFFIN Milne Port Mary River Project pi n MILNE INLET ip Sh ECLIPSE SOUND Mary River Project TRANS-SHIPPING IN GREENLAND WATERS Project Description March 2015 Figure 2 Preferred trans-shipment location N3 – north of Qeqertarssuaq Island 7 of 19 64°15'N 52°W 51°30'W Map Area Qeqertasussuk Trans-shipping in Nuuk Region Nuuk Godthab Qeqertarsuaq Saattunnguit Kangilliit Habets O LEGEND Eqalunguit Nunat Community Hundeo Capital Tarqo Renso Kangeq Preferred Trans-shipping Location Rype Island Qeqertangussakuluk Conceptual Shipping Route Pikiutdleq Pularqavit Tulugartalik Amitsoq Jakobsholm Igdlutaligssuaq Angissunguak UUmmannaq Simiuta NOTES Mitsimavigssuaq Qernertuligssuaq Kisigtut Map Projection: Conic Iluliumanerssup Tasia Kagssissagdlit North America Lambert Conformal This document is not an official land survey and the spatial data presented is subject to change without notice. Kangerdluk Angisorsuak Karajak Naajarluttuut Qarajat Qeqertait Akilia Kigtorqat Scale: 1:250,000 N3 0 2 4 6 8 10 Km Qeqertarssuaq Island Kigdlut Ilua Qaqortorssuaq Kilangarsuit Qagssit Agpanguit Iluat Sagdlerssua Date: 19/03/2015 Ingnerssuartut 52°W Preferred trans-shipment location N3 - north of Qeqertarssuaq Island 51°30'W FIGURE 2 Path: J:\Yukon\Projects\2014\14_Y_0611_Baffinland_P hase2E A\Mapping\Mapping_13Jan2015\MapNuukRegion_14Jan2015_EDI.mxd 64°N Trans-shipping location is approximate and subject to baseline work. The shipping route has been generalized for mapping purposes. TRANS-SHIPPING IN GREENLAND WATERS Project Description March 2015 Figure 3 Alternative trans-shipment location (M3) – Kangerluk Fiord, Maniitsoq Island 8 of 19 53°W Ujarasugssugtalik Qioqit Qeqertarmiut Map Area Trans-shipping in Maniitsoq Region Kingigtu Inugsuit Taserssuat Karrata Tasia Innarsuit LEGEND Community Hamborgerland Alternative Trans-shipping Location Conceptual Shipping Route Sujorardlit Manitsuarssuit NOTES M3 Avallerpaarsuaq Kin of Sal Maniitsoq Island Saattut Map Projection: Conic North America Lambert Conformal This document is not an official land survey and the spatial data presented is subject to change without notice. Milorfik Imartorngup Tima Qeqertarsuaq Trans-shipping location is approximate and subject to baseline work. The shipping route has been generalized for mapping purposes. Scale: 1:400,000 0 5 10 15 Km Naujarssuit Sukkertoppen Manitsoq Kulinguaq Alternative trans-shipment location M3 - Kangerluk Fiord, Maniitsoq Island Date: 15/01/2015 53°W FIGURE 3 Path: J:\Yukon\Projects\2014\14_Y_0611_Baffinland_P hase2E A\Mapping\Mapping_13Jan2015\MapManitsoqR egion_14Jan2015_EDI.mxd 65°30'N Satuarssuit TRANS-SHIPPING IN GREENLAND WATERS Project Description March 2015 1.4 TRANS-SHIPPING OPERATION Trans-shipment operations (Figure 4) are commonly done at port facilities that cannot accommodate larger Cape ore carriers due to various limitations at the load port site. This can be due to the port configuration, bathymetry of the port area or other physical constraints preventing movement of larger vessels in and out of the port loading area. Trans-shipping is regularly accomplished in numerous areas around the world and notably in the Port of Sept Iles in the St-Lawrence River, Canada. For iron ore, the trans-shipping has existed in Canada since 2010-2011 and at Sept Iles, Canada, some 6 million tonnes is trans-shipped annually. Baffinland’s trans-shipping operation in Greenland waters will be accomplished through the use of two (2) purposed built Panamax 85,000 dwt PC4-DNV ICE 17 ore carriers with self-discharging (S/D) capability. The S/D vessel would be similar to the Canada Steamship Lines CSL Atlas as shown in Figure 5. Figure 4 Trans-shipping of Iron Ore It is expected that each trans-shipping operation will take up to 48 hours. The sequence of activities is as follows: Arrival of Cape size vessel and mooring at trans-shipping site; Arrival of first PC4 S/D and positioning of ship with assistance of tug boats; 9 of 19 TRANS-SHIPPING IN GREENLAND WATERS Project Description March 2015 Begin transfer of ore at a rate of 5,000 to 6,000 tonnes per hour. The transfer of the 85,000 tonnes cargo is expected to take 17 to 18 hours; While unloading, the PC4 S/D vessel is resupplied with fuel and other necessities required by the crew; Once the transfer completed, the first PC4 S/D vessel departs for Milne Inlet Port; The second PC4 S/D arrives at trans-shipping location; Tugs assist in positioning of PC4 S/D and unloading of cargo begins; While unloading, the second PC4 S/D vessel is resupplied with fuel and other necessities required by the crew; Once the transfer completed, the second PC4 S/D vessel departs for Milne Port; The Cape size vessel leaves mooring site with cargo of ~170,000 tonnes of ore. The tugs return to the nearest city for resupply and waits for next cape ore carrier. It is expected that total loading time for the Cape size vessel will be in the range of 40 hours and that each of the PC4 S/D vessels would remain in the trans-shipping location for a maximum of 24 hours. Baffinland expects that up to 6.0 mtpa of iron ore will be transhipped in Greenland territorial waters corresponding to 35 Cape vessels annually. This operation will require up to 35 ore loads from each of its PC4 S/D vessels (total of 70 loads) from Milne Port to the trans-shipment location. During the trans-shipment operation, up to six vessels will be active in the trans-shipment area (one Cape size ore carrier, two PC4 S/D vessels, two tug and one resupply ship). 10 of 19 TRANS-SHIPPING IN GREENLAND WATERS Project Description March 2015 Figure 5 1.5 Canada Steamship Lines Atlas (self-discharging vessel) DURATION OF THE TRANS-SHIPPING OPERATION The duration of the trans-shipping operation is expected to occur for 21 years which is the estimated life of the Mary River Project. 11 of 19 TRANS-SHIPPING IN GREENLAND WATERS Project Description March 2015 SECTION 2.0 - NAVIGATIONAL SAFETY INVESTIGATION Baffinland’s trans-shipping activities will be carried out in Greenland waters without any of these activities occurring on land. Therefore, the investigation and documentation of navigational safety as outlined by the Danish Maritime Authority is of primary concern. Baffinland will prepare a Navigational Safety Investigation Report in accordance with the requirements of the Danish Maritime Authority (DMA) with the objective of “acquiring a statement from the Danish Maritime Authority on the necessary navigational conditions for the application”. The aim of this investigation is to ensure that ship voyages and shipping activities can be made in a safe and environmentally reasonable manner. The investigation will document how Baffinland intends to plan and secure the shipping activities in Greenland waters “in the best possible way considering the risk at hand”. The content of this section will address specific issues outline in the DMA guidelines (11) and will include: 2.1 Project Background, contents and geographical area; A summary of the navigational safety investigations carried out; Description of other shipping activities within the proposed trans-shipping zone/area; Description of the shipping route selection, hydrographic surveys and navigational charts; Description of ice conditions; Description of meteorological and oceanographic conditions; Ships and crews; o Arctic experience Ports, places of call, anchorages; Risk assessment; Emergency preparedness and risk-reducing measures. o Oil Spill Response Plan (refer to section 3.7) CHARTING OF SHIPPING ROUTE AND BATHYMETRIC SURVEYS Once Baffinland obtains Project approval in both Canada and Greenland, the Company will, where and if required, commission detailed bathymetric surveys of the proposed trans-shipment area and its access/exit shipping route. The work may also include the updating of navigational charts for the transshipment area. Collection of existing and new meta-ocean data (wind, current, tide, wave activity) will be completed as a necessary part of the trans-shipping operation. 2.2 ENVIRONMENTAL IMPACT ASSESSMENT The assessment of possible environmental effects required by the DMA will be addressed in the Environmental Impact Assessment. Baffinland has prepared a separate document outlining the Terms of Reference for the Environmental Impact Assessment. 1 Danish Maritime Authority, “The Danish Maritime Authority’s guidelines of 10 January 2011 on investigation of navigational safety issues in connection with mineral exploration projects in Greenland as a basis for navigation in the operational phase”, Case 200713762, File 30.30.06, Centre for Maritime Regulations/cgj 12 of 19 TRANS-SHIPPING IN GREENLAND WATERS Project Description March 2015 SECTION 3.0 - REGULATORY FRAMEWORK FOR SHIPPING A comprehensive regulatory framework is in place for both international and domestic commercial shipping activities. All parties involved in Baffinland’s trans-shipping activities will comply with International Maritime Organization (IMO) guidelines, Danish and Canadian shipping regulations. Greenland and Canada are both parties to the United Nation (UN) Convention of the Law of the Sea (LOS Convention) which functions as a legal framework for maritime shipping. This framework for the regulation of maritime shipping consists of a range of instruments adopted within the IMO and International Convention for the Prevention of Pollution from Ships (MARPOL). The Greenland shipping legislation is essentially Danish legislation that is specifically applied to Greenland by Royal Decree. Danish/Greenlandic legislation applies “Generally Accepted International Rules and Standards” (GAIRAS) in terms of shipping. The two purpose built PC4 self-discharging Panamax ore carriers transporting iron ore from Milne Port will be Canadian-flagged, while the Cape ore carriers will be internationally-flagged. As trans-shipment operations will take place in both Eclipse Sound and in Greenland territorial waters, Baffinland shipping providers will be required to abide by both Canadian and Greenland shipping regulations. All standards set out in Canadian Regulations implement the standards recognized worldwide and negotiated at the IMO [MARPOL (International Convention for the Prevention of Pollution from Ships), Marine Environmental Protection Committee], the United Nations specialized agency governing safety and environmental protection in shipping. 3.1 PREVENTING POLLUTION AND VESSEL DISCHARGES Pollution prevention is set out in international standards of the International Convention for the Prevention of Pollution from Ships, known as MARPOL. This convention sets out detailed technical standards for: Carrying and handling oil Carrying and handling noxious liquid substances in bulk Carrying packaged dangerous goods Managing vessel sewage discharges Managing vessel garbage Managing vessel air emissions These standards are enforced through the Vessel Pollution and Dangerous Chemical Regulations under the Canada Shipping Act 2001. All Baffinland’s shipping providers will be required to abide by the Canada Shipping Act 2001 and relevant international regulation (i.e. IMO, Marpol) which imposes additional requirements for: Preventing Oil Pollution; Having a Shipboard Oil Pollution Emergency Plans(SOPEP); Managing Vessel Sewage Discharges Managing Vessel Garbage Managing Vessel Air Emissions Antifouling System Reporting Pollution 13 of 19 TRANS-SHIPPING IN GREENLAND WATERS Project Description March 2015 3.2 SHIPBOARD OIL POLLUTION EMERGENCY PLANS (SOPEP) Canadian shipping regulations (Vessel Pollution and Dangerous Chemicals Regulation) requires the owner of every Canadian ship of 400 tons gross tonnage or more that carries oil as fuel or cargo, to submit copies of the vessel‘s Shipboard Oil Pollution Emergency Plan (SOPEP) to Transport Canada. All Plans must be ship-specific. Transport Canada pollution prevention officers who have also been appointed as marine vessel safety inspectors examine SOPEPs for Canadian vessels. SOPEP for foreign vessels are approved by their flag State or an organization recognized by them. The SOPEP help shipboard personnel deal with an unexpected discharge of oil. Their main purpose is to set in motion the necessary actions to stop or minimize the discharge and to reduce its effects. Effective planning ensures that the necessary actions are taken in a structured, logical and timely manner. SOPEP must go beyond providing for operational spills. They must include guidance to help the master of the ship meet the demands of a catastrophic discharge, should one occur. It is noted that the IMO continues to make the International Code of safety for ships operating in polar waters (Polar Code) a priority issue with a target adoption date early in 2017. 3.3 NAVIGATIONAL SAFETY All vessels chartered by Baffinland will be required to comply with Greenland and Canadian navigation safety requirements. Specific challenges regarding the Greenland waters and the Canadian Arctic include navigation in ice infested waters, limited charting information, and limited marine infrastructure. The vessels will have the appropriate navigation equipment, follow navigational rules and procedures, and have effective means of communications for safety. For example, vessels must follow international regulations for preventing collisions at sea, which include a requirement to proceed at a safe speed at all times. Vessels must also have up-to-date nautical charts and, for each voyage, a passage plan that takes into account relevant information for safe navigation and protection of the environment and that will ensure the progress of the vessel can be closely monitored. There are vessel reporting requirements and vessel routing measures that also help ensure safe navigation. 3.4 NAVIGATION AND RADIO COMMUNICATIONS EQUIPMENT Baffinland will require that chartered Cape vessels be equipped with navigation and radio communications equipment as set out in international requirements and the CSA 2001. Each item of equipment must also meet detailed international standards. To ensure compliance, vessels will be subject to regular inspections and must have valid inspection certificates that show the vessel‘s navigation equipment (Cargo Ship Safety Equipment Certificate) and radio equipment (Cargo Ship Safety Radio Certificate) meet all requirements. 3.5 SHIP WASTE MANAGEMENT The vessels involved in the Project will be required to meet international standards and Canadian regulations that control how they manage pollutants such as sewage, garbage, anti-fouling coatings, ballast water, onboard chemicals, and air emissions, and how they report any pollutant discharges. All ships chartered by Baffinland will be required to comply with the requirements of the Canadian Arctic Waters Pollution Prevention Act (AWPPA) which imposes strict requirements for the management of waste on board of ships. Waste generated by the ships involved in the trans-shipment operation will be disposed of at the port of destination of the Cape vessels at European ports. 14 of 19 TRANS-SHIPPING IN GREENLAND WATERS Project Description March 2015 Existing Canadian Regulations also require that ships report on their ballast water management in advance of entering Canadian waters and keep a ballast water management plan and record book. Baffinland will extend this requirement to all vessels involved in the trans-shipment operation in Greenland. 3.6 BALLAST WATER MANAGEMENT Ballast water is brought on board a vessel to increase the draft and change the trim so as to regulate the stability or maintain stress loads within acceptable limits. For the trans-shipment activities occurring in Greenland waters, the Cape vessel will discharge ballast water while taking on the ore shipment whereas the two PC4 S/D vessels will take on board ballast water for their return voyage to Milne Port. Baffinland’s shipping provider will be required to abide by the IMO‘s International Convention for the Control and Management of Ships' Ballast Water and Sediments. 3.7 SPILL RESPONSE PROCEDURES Spills of intermediate fuel oils and marine diesel are the main concern. The spillage of iron ore is not an environmental concern as the iron is chemically inert in water or acid. For all shipping activities, the key fuel spill prevention measures are: The Ship master’s responsibility is to navigate with caution. He is responsible for the safety of his crew and the ship; Vessels have anti-collision devices with alarms and radar to ensure that collisions are avoided; Vessels are equipped with dual/redundant back-up systems such as twin engines, radar, and have redundancy for navigational systems and communication systems; The bathymetry of the shipping route is well established; Ship operators must abide by the IMO/MARPOL regulatory framework; Ship must sail within the established shipping corridor; and, Ship must have a SOPEP. Minor spills of intermediate fuel oil or marine diesel could occur during the ship to ship refuelling operation. The vessel SOPEP helps shipboard personnel deal with an unexpected discharge of oil. Their main purpose is to set in motion the necessary actions to stop or minimize the discharge and to reduce its effects. Effective planning ensures that the necessary actions are taken in a structured, logical and timely manner. SOPEP must go beyond providing for operational spills. They must include guidance to help the master of the ship meet the demands of a catastrophic discharge, should one occur. Should a catastrophic event occur on one of the vessels, the maximum amount of marine diesel that could be discharged amounts to the content of the fuel storage tank in the vessel affected. For the PC4 vessels, onboard fuel storage will be in the range of 2,000 tonnes. Cape size bulk ore carriers can carry up to 4,000 tonnes. For trans-shipping activities in Greenland waters, Baffinland proposes to enter into a service agreement with a Greenlandic company specializing in oil-spill response services, e.g. Greenland Oil Spill Response. 15 of 19 TRANS-SHIPPING IN GREENLAND WATERS Project Description March 2015 SECTION 4.0 - ENVIRONMENTAL CONSIDERATIONS Environmental aspects associated with the proposed trans-shipment operation include dust emissions, noise, interaction with marine mammals and seabirds and interaction with recreational, business and industrial activities. 4.1 DUST Dust generation is unlikely to be problematic as the ore is coarse and does not generate large amounts of dust upon handling. Figure 6 provides an indication of the amount of dust generated during trans-shipping of iron ore concentrate. Iron ore concentrate is composed of a fine iron ore with P80 of 200 microns (80% of the material is finer than 200 micron) or P50 of 150 microns. Baffinland will ship 75% lumpy material (+6.3mm-28mm) and the fine iron ore will have a P50 of 3 to 4 mm, so the generation of dust will be negligible and less than that associated with iron ore concentrate as shown in Figure 6. Figure 6 4.2 Dust Generated during Trans-shipping of Iron Ore Concentrate (~150 micron in size) NOISE The proposed trans-shipping location would be approximately 1 km from shore. Noise generated during trans-shipping is associated with the operation of the unloading mechanism and the ship engine noise. Ambient low frequency noise in oceans has been increasing approximately 3 dB per decade. Noise from shipping is formed by: Propeller Machinery Icebreaking 16 of 19 TRANS-SHIPPING IN GREENLAND WATERS Project Description March 2015 Flow through the water Propeller noise is the most dominant and for bulk carriers greater than 100 metres in length, the dominant frequencies are 20 to 40 Hz range. Transfer of ore to the holds of Cape Ore carriers are not expected to make sufficient noise to impact or effect marine mammals as the noise is of short duration and minimal in comparison to propeller noise. 4.3 INTERACTIONS WITH MARINE MAMMALS To achieve transshipment of 6 MTPA in Greenland, Baffinland expects up fifty (70) transits (to and from the Greenland trans-shipping site) by each of its PC4 S/D vessels corresponding to twenty-five (35) Cape ore carriers loaded in Greenland waters in the months of June to July and October to March. Assuming that each trans-shipment is completed within 48 hours, the trans-shipping operation will take a total of 70 days and require 105 ship passages in and out of the trans-shipment zone. In addition to this traffic, tug boats would sail from Nuuk to assist in positioning the vessels for trans-shipment and for refuelling of the PC4 self-unloading ships. For the identified trans-shipment site, Baffinland will commission an assessment of potential effects to marine mammals and seabirds and develop mitigation plans if required to ensure that no significant effects occur as a result of the proposed activities. 4.4 INTERACTION WITH ANTHROPOGENIC ACTIVITIES For the identified trans-shipment site, Baffinland will commission studies to establish use of the propose trans-shipment site and shipping route. 4.5 ENVIRONMENTAL IMPACT ASSESSMENT The assessment of possible environmental effects will be addressed in the Environmental Impact Assessment. Baffinland has prepared a separate document outlining the Terms of Reference for the Environmental Impact Assessment. 17 of 19 TRANS-SHIPPING IN GREENLAND WATERS Project Description March 2015 SECTION 5.0 - ECONOMIC DEVELOPMENT OPPORTUNITIES IN GREENLAND The economic opportunities for Greenland based companies associated with this trans-shipment operation include: 5.1 Supply and operation of tug boats services; Fuel supply and general resupply for Baffinland’s PC4 S/D vessels; and, Environmental monitoring activities during the trans-shipment operation. TUG BOAT SERVICES It is expected that two tugs, each with ~5,000 to 6,000 hp and 50-65 tbp will be contracted locally to support trans-shipping and movement of the PC4 Panamax and Cape ore carriers. 5.2 FUEL AND GENERAL RESUPPLY OF PC4 SELF-UNLOADING VESSELS Fuel consumption of the PC4 Panamax S/D vessels will be limited to low-sulphur IFO380 when transiting and marine diesel oil (MDO/MGO) when approaching port or trans-shipping locations. Both the Cape ore carriers and the capes will use MDO when ore is being transferred to operate generators and ballast pumps. The PC4 Panamax S/D vessels will require refueling on each second transit to Greenland. 5.3 SOCIAL IMPACT ASSESSMENT Baffinland will prepare a Social Impact Assessments (SIA) which will describe the social and economic benefits of Baffinland’s proposed trans-shipping activities for Greenland. This SIA will also address the local use of the selected sites and any agreements with Greenlandic companies. 18 of 19 TRANS-SHIPPING IN GREENLAND WATERS Project Description March 2015 SECTION 6.0 - REFERENCES 1) Danish Maritime Authority, “The Danish Maritime Authority’s guidelines of 10 January 2011 on investigation of navigational safety issues in connection with mineral exploration projects in Greenland as a basis for navigation in the operational phase”, Case 200713762, File 30.30.06, Centre for Maritime Regulations/cgj 19 of 19 ATTACHMENT A EVALUATION OF POTENTIAL TRANS-SHIPMENT SITES IN GREENLAND WATERS Section 1.0 TABLE OF CONTENTS Introduction ............................................................................................................................ 4 1.1 Site selection Criteria .................................................................................................................... 4 1.2 LNS Desk-Top Evaluation and Field Reconnaissance (2013) ...................................................... 4 Section 2.0 Maniitsoq Area ...................................................................................................................... 7 2.1 Site M1: ......................................................................................................................................... 7 2.2 Site M2 .......................................................................................................................................... 8 2.3 Site M3 .......................................................................................................................................... 9 2.4 Site M4 ........................................................................................................................................ 10 Section 3.0 Nuuk Area ........................................................................................................................... 12 3.1 Site N1 ......................................................................................................................................... 12 3.2 Site N2 ......................................................................................................................................... 13 3.3 Site N3 ......................................................................................................................................... 14 3.4 Site N4 ......................................................................................................................................... 15 Section 4.0 4.1 Færingehav ......................................................................................................................... 17 Site F1 ......................................................................................................................................... 17 Section 5.0 Qeqertar .............................................................................................................................. 19 5.1 Site Q1 ........................................................................................................................................ 19 5.2 Site Q2 ........................................................................................................................................ 20 5.3 Site Q3 ........................................................................................................................................ 21 5.4 Site Q4 ........................................................................................................................................ 22 5.5 Site Q5 ........................................................................................................................................ 23 Section 6.0 Paamiut ............................................................................................................................... 25 6.1 Site P1 ......................................................................................................................................... 25 6.2 Site P2 ......................................................................................................................................... 26 Section 7.0 Grønnedal ........................................................................................................................... 28 7.1 Site G1 ........................................................................................................................................ 28 7.2 Site G2 ........................................................................................................................................ 29 Section 8.0 References .......................................................................................................................... 31 List of Figures Figure 1-2: Ranking of Potential Trans-shipment Sites ................................................................................ 6 Figure 2-1: Potential Trans-shipment Sites near Maniitsoq .......................................................................... 7 Figure 2-2: Photo and Bathymetry of Site M1 ............................................................................................... 8 Figure 2-3: Photos and Bathymetry of Site M2 ............................................................................................. 9 Figure 2-4: Photos and Bathymetry of Site M3 ........................................................................................... 10 Figure 2-5: Photos and Bathymetry of Site M4 ........................................................................................... 11 Figure 3-1: Potential Trans-shipment Sites near Nuuk ............................................................................... 12 Figure 3-2: Photos and Bathymetry for Site N1 .......................................................................................... 13 Figure 3-3: Photos and Bathymetry for Site N2 .......................................................................................... 14 Figure 3-4: Photos and Bathymetry for Site N3 .......................................................................................... 15 Figure 3-5: Photos and Bathymetry for Site N4 .......................................................................................... 16 Figure 4-1: Potential Trans-shipping Site near Færingehav ....................................................................... 17 Figure 4-2: Photos and Bathymetry for Site F1........................................................................................... 18 Figure 5-1: Potential Trans-shipping Site near Qeqertar ............................................................................ 19 Figure 5-2: Photos and Bathymetry for Site Q1 .......................................................................................... 20 Figure 5-3: Photos and Bathymetry for Site Q2 .......................................................................................... 21 Figure 5-4: Photos and Bathymetry for Site Q3 .......................................................................................... 22 Figure 5-5: Photos and Bathymetry for Site Q4 .......................................................................................... 23 Figure 5-6: Photos and Bathymetry for Site Q5 .......................................................................................... 24 Figure 6-1: Potential Trans-shipping Site near Paamiut ............................................................................. 25 Figure 6-2: Photos and bathymetry for Site P1 ........................................................................................... 26 Figure 7-1: Potential Trans-shipping Site near Grønnedal ......................................................................... 28 Figure 7-2: Photos and Bathymetry for Site G1 .......................................................................................... 29 Figure 7-3: Bathymetry for Site G2 ............................................................................................................. 30 SECTION 1.0 INTRODUCTION The southwest coast of Greenland is expected to be practical for shipping access during a 12 month period using cape ore carriers with no ice strengthening. Based on the generalized assessment of ice conditions and navigation maps, suitable sites for the transshipment were investigated from Paamiut to Aasiaat. The limits were chosen by the approximate limits of the navigable sea ice. The sea ice in Baffin Bay typically only extends down to the region of Aasiaat and Sisimiut, with a navigable corridor that is occasionally covered in new ice extending down as far as Maniitsoq in the extreme year during about February/March. The southern limit is bounded by the Storis (or East Ice), which rounds Cape Farewell in the spring. The Storis is usually a combination of multiyear sea ice and ice of land origin that can make its way as far north as Paamiut in the early summer before it finally melts or is driven by the currents west toward the Canadian coastline. 1.1 SITE SELECTION CRITERIA The ranking of the sites considered a number of factors including navigation concerns, proximity to manpower, flat land for land-based storage of iron ore and the relative comparison of ice conditions; and therefore considers the less favorable ice conditions near Aasiaat and also south of Paamiut. Trans-shipping can only be achieved in open waters. The essential characteristics of a suitable transshipping site include: Absence of strong ocean currents; Natural protection from high winds and large swells; Deep bathymetry with suitable anchorage locations; Site protected against sea ice, ice flows and icebergs; Ease of access and navigation by large vessels; Some desirable characteristics include: Absence of human activities such fisheries and recreational boating to limit interference with trans-shipping activities; No protected areas; Proximity to an established community in order to access established support services such as ship re-supply, refuelling of vessels, tug boat services, and, accessibility by air via an established airstrip. 1.2 LNS DESK-TOP EVALUATION AND FIELD RECONNAISSANCE (2013) Following the completion of an initial desk-top screening site selection study in 2011, in 2013 Baffinland commission LNS Greenland and Inuplan to undertake site reconnaissance and evaluation of the potential trans-shipment site identified the initial screening study. LNS carried out a field reconnaissance in order to get on-site information about access, water depths, recreational activities, and, other potential obstacles for a potential trans-shipment site. The northern limitation for this survey was set at Maniitsoq as more northern sites were considered too far off the shipping route to Europe. The southern limitation was set to Ivittut (Grønnedal), due to the risk of pack ice. The areas surveyed were: Maniitsoq, Nuuk, Polar Oil, Fiskenæsset, Paamut and Ivittut (Grønnedal). During the field reconnaissance, a number of new potential sites for the transshipping operation were identified. These additional potential locations are included in this evaluation and have been numbered using the first letter in the name of the nearby town, and then successively a number for example M1. An overview of all stations surveys is presented in Sections 2 to 7. The approach in this report is to present a map of the area identifying the location of the potential site, followed by a description and photos of the specific site, concerns and conclusions with respect to suitability for trans-shipping operation. A total of 18 sites situated in 6 different areas on the West coast of Greenland have been surveyed. From these 18 potential sites, 12 sites are considered unsuitable for the trans-shipment activities. Six (6) sites fulfilled most of the desired site selection criteria but only three (3) sites meet the criteria of proximity to airstrip. One of these sites is in the vicinity of Paamiut, one is North of Maniitsoq and one South of Nuuk. With respect to ease of accessibility by air via the proximity of an airstrip, the frequency of flights to Paamiut is only twice a week, while Maniitsoq is serviced 3 to 4 times a week, and, Nuuk has several flight connections on a daily basis. Based on the site selection criteria listed in Section 1.1, Figure 1-2 presents a ranking of the potential trans-shipment sites. In order of suitability for trans-shipment activities, the suitable sites are: Site N3 (located 20 nautical miles south of Nuuk, near Qeqertarssuaq Island), Site M3 (located 16 nautical miles from the town of Maniitsoq, the North side of the Maniitsoq Island), and, Site P2 (located east of Paamiut on Eqaluit fiord). Overall, site N3 offers the best combinations of attributes for the trans-shipment activities. Figure 1-1: Ranking of Potential Trans-shipment Sites SECTION 2.0 MANIITSOQ AREA The potential trans-shipping sites in the Maniitsoq area are shown on Figure 2-1. Figure 2-1: Potential Trans-shipment Sites near Maniitsoq 2.1 SITE M1: Location: Coordinates: Approximately 3 nautical miles north east of Maniitsoq B 65*26`77 N; L 52*54`36 Description: A small secluded inlet (Ata) well protected, however the passage at the entrance to the fiord is quite narrow. The approach to the fiord is fairly strait forward with several hundred meters of water depth. Past the beacon at “Kirkegaardsnæs”, the inlet narrows and water depths range between 53 to 143 meters. The inlet (Ata) is quite narrow and the passage after the beacon is infested with reefs and shallow areas which present obstacles to safe navigation. The width of the entire passage along Manitsoq Island ranges between 400 to 500 meters and contains many shallow areas with reefs in between. Once in the inlet the bottom is good for anchorage with depths between 33 to 54 meters. Concerns: Narrow inlet populated with reefs and shallow areas present many obstacles to safe navigation. According to residents consulted, there is a strong current in the passage. The area is not suitable for navigation of larger vessels. Conclusion: This site is not suitable for trans-shipping operation. Figure 2-2: Photo and Bathymetry of Site M1 2.2 SITE M2 Location: Coordinates: 5 nautical miles north east of Maniitsoq B 65*29`47 N; L 52*52`18 W Description: The approach and access to this site is from the north via Angmarqoq fiord passing the island of Manitsuarssuit and turning East going into the passage called “Tunnarsuk”. Depths range between 100 to 400 meters up to “Tunnuarssuk”. Past this location, the bottom rises to between 26 to 126 meters with many shallower areas with reefs in between. The width of the passage between the reefs and the island of Maniitsoq is not more than 400 to 500 meters. There are 4-5 cabins at the area. Concerns: According to local residents, the passage has a strong current. The bottom is rocky with some outcrops and depths ranging between 25 to 60 meters. The area is not suitable for anchorage of large vessels due to strong currents and reefs. Conclusion: This site presents many obstacles to safe navigation and is not suitable for a trans-shipment operation. Figure 2-3: Photos and Bathymetry of Site M2 2.3 SITE M3 Location: Coordinates: Situated on the North side of the Maniitsoq Island, approximately 16 nautical miles from the town site. The site is a small fiord (Kangerluk) (1,8 nm long and 0,5 nm wide). B 65*28`993 N; L 52*59`782 W Description: The approach to the site is via the fiord called Angmarqoq with depths ranging between 160 to 440 meters. Vessels must enter Kangerluk from the centre of the fiord, since there are some islands and reefs. Once passed these islands there is a good passage into the fiord, with depths ranging between 64 to 120 meters. This site has been investigated by Alcoa as a potential site to establish a port facility and an aluminum smelter. Alcoa has undertaken a number of geotechnical investigation and bathymetric surveys in this area. Alcoa and Asiaq maintain a weather station at this location. Although the site is well sheltered, it is subjected to large swells, especially with North and North-westerly winds. The western part of the fiord is not affected very much by the swells, since it is sheltered behind some islands. There are no strong currents. Half way into the fiord, the fiord narrows to 500 meters. The depths are between 34 to 116 meters in the center of the fiord. The fiord bottom appears to be quite flat with depths ranging between 64 to 28 meters and without too many rocky peaks, which facilitate anchorage. Conclusion: Preliminary site reconnaissance suggests that this site could be suitable for the transshipment operation. Figure 2-4: Photos and Bathymetry of Site M3 2.4 SITE M4 Location: Situated NNE of the island Maniitsoq approximately 10 nautical miles from the town. Coordinates: B 65*31`207 N; L 52*55`950 W Description: This site is a passage called “Ikerasarssuk” lying between the island of Maniitsoq and the island Maniitsuarssuit. The approach to the site is via the fiord Angmarqoq with depths ranging between 160 to 440 meters. The site is reasonably sheltered from swells and has no strong currents. At its entrance, the passage is 900 meters wide. A number of small islands are encountered half way through the passage. These islands could be used to put up bollards in connection with anchorage. The whole passage has never been surveyed and would therefore need to be surveyed. The depth ranges between 54 to 120 meters. The bottom seems to be very peaky with variable depth which makes it difficult for anchorage. The depths along the island of Maniitsoq towards the West ranges between 25 and 64 meters and it varies a lot, which means that it will be difficult to find a suitable bottom for anchorage. The rock formation is too steep to construct a “duc d`albe”. Concerns: Lack of suitable anchorage. Conclusion: operation. Based on LNS’s reconnaissance work, this site is not suitable for a trans-shipment Figure 2-5: Photos and Bathymetry of Site M4 SECTION 3.0 NUUK AREA The potential trans-shipping sites evaluated in the Nuuk area are shown on Figure 3-1. Figure 3-1: Potential Trans-shipment Sites near Nuuk 3.1 SITE N1 Location: Site N1 is situated just outside an abandoned settlement called Kangeq, approximately 8 nautical miles West of Nuuk. Coordinates: B 64*06`35 N; L 52*01`56 W Description: The approach to the site is excellent, with water depths ranging between 97 to 427 meters. The passage between Eqalunguit Nunat og Kangerq is 450 meters wide at the entrance and just before the entrance there is 300 meters between two smaller islands. The depths at the site are between 70 to 79 meters but the bottom is not well suited for anchorage. The area is not well suited for “duc d`albe” since the topography of the adjacent land is steep around the channel. Currents are not too strong and the site is reasonably sheltered against swells. However the site is not well protected against wind from the south. The main advantage of this site is that it is easily accessed from Nuuk. Conclusion: Based on site reconnaissance, this site is not suitable for trans-shipment activities. Figure 3-2: Photos and Bathymetry for Site N1 3.2 SITE N2 Location: Located two (2) nautical mile south of Nuuk in proximity of “Hundeø” Island Coordinates: Position B 64*06`35 N; L 52*01`56 W Description: The approach to the site is excellent, with water depths ranging from 97 to 427 meters. The site lies on the same approach line that is used when calling the port of Nuuk. Depths range from 35 to 60 meters to 68 to 79 meters at Site N2. The area is well protected from Southerly wind and swells. The current is quite strong at Hundeø but not so strong in the area at Rypeø. Larger ore carriers and the trans-shipping operation must take place at a safe distance from the shore (approximately 400 meters from shore). At this site, the sea floor drops rapidly and quickly becomes too deep for anchorage. The same problem exists along the coast just beneath “Store Malene” towards the bay of Malene, where ocean the depth is problematic for anchorage. In the bay of Malene there are actually excellent anchor opportunities, but Baffinland would expect strong opposition from local resident. These areas, together with the “Malebugt” and close to Taartunnguaq, have been used as stand by area during the exploration for oil & gas. The population in Nuuk is used to activity in the area, and, there are no cabins. Fishing activities are also very limited in this area. Conclusion: On the basis of current use of the area (both industrial and recreational) and the intensity of vessel traffic, this site is not suitable for the trans-shipment activities. Figure 3-3: Photos and Bathymetry for Site N2 3.3 SITE N3 Location: Twenty (20) nautical miles South of Nuuk just North of an island called Qeqertarssuaq. Coordinates: B 64*08`35 N ; L 51*46`44 W Description The approach from the south to this site is a well known route called the “Narsaq løb” with beacons etc. The depths range between 172 to 270 meters. The depths at the proposed trans-shipping site range from 23 to 55 meters and the bottom is quite flat and good for anchorage. The site is very well protected from strong wind from the South. The passage between Qeqertarssuaq and the small isles of Qarajat is 836 meter wide and approximately 3 km long, which leaves ample space for ship maneuvering. There are a few cabins on the West side of the island, but they will be out of sight for the proposed transshipment activities. Conclusion: Site N3 satisfies all the selection criteria for the trans-shipment activities. Figure 3-4: Photos and Bathymetry for Site N3 3.4 SITE N4 Location: North Nuuk in proximity of the airport Coordinates: B 64*12`17 N ; L 51*38`13 W Description: The approach to the site is the through the Godthaab fiord following the town to the North of the town. The depths are between 123 to 352 meters. The depths at the proposed trans-shipment site range from 50 to 80 meters close to the shore line, and then it drops to more than a 100 meters very rapidly. As a result, it is not possible to put out anchors due to the bottom conditions. The site is well protected from southern wind, however at winds from NW the site is quite exposed. There are currents due to the convergence of large fiords. Glacial ice from the glacier at the end of the Godthaab fiord flows through this area. There is hardly any fishing going on in the area since there is a landfill site in the area and there are no cabins. Conclusion: This site is not suitable for trans-shipping activities due to wind exposure, strong currents and potential ice flows. Figure 3-5: Photos and Bathymetry for Site N4 SECTION 4.0 FÆRINGEHAV The potential trans-shipping sites evaluated in the Færingehav area are shown on Figure 4-1. Figure 4-1: Potential Trans-shipping Site near Færingehav 4.1 SITE F1 Location: Located at the Polar Oil terminal approximately 35 nautical miles South of Nuuk Coordinates: B 63*41`901 N; L 51*30`446 W Description: Although the fiord offers excellent for trans-shipping activities, the entrance to the Kangerluarsoruseq is quit narrow and might difficult for navigation of larger Cape-size ore carriers. fiord The approach towards the site is excellent with water depths of 204 to 83 meters until the entrance of the Kangerluarsoruseq fiord is reached where it water depth is approximately 60 meters. The island “Smuk Ø” at the entrance to the fiord does is too narrow for large Cape size vessel and multiple vessel operation (200 meters to the shore line). The area past the entrance of the fiord is excellent for anchorage with the possibility of establishing bollards on shore as well. The fiord is well protected from swells and wind and the current is not particular strong. Polar Oil captains have more than 20 years of experience in the area guiding in tankers. They have expressed concerns with guidance of vessels exceeding 200 meters in length. The largest tanker they have had through was 245 meters long and it has only been there once. Conclusion: Based on LNS’s site reconnaissance and discussions with Polar Oil employees, site F1 is not suitable for trans-shipping activities. Figure 4-2: Photos and Bathymetry for Site F1 SECTION 5.0 QEQERTAR The potential trans-shipping sites evaluated in the Qeqertar area are shown on Figure 5-1. Figure 5-1: Potential Trans-shipping Site near Qeqertar 5.1 SITE Q1 Location: South of the island Mannisaat only 2 nautical miles West from Qeqertarsuatsiaat (Fiskenæsset) Description: The approach towards the Qeqertarssuatsiaq island is excellent with water depths ranging from 300 to 450 m of water. Once in the Fiskenæs Fjord the depths range from 225 to 300 meters. The site is situated in the Kangrdluk fiord and the depth is ranging from 38 meters to 100 meters, however just in the centre of the fiord there are shallow areas with only 5 and 19 meters of water. The distance between these areas and the Mannisaat Island is approximately between 250 to 600 meters. This is measured right to the edge of the rock formation on land to the rim of the shallow points. There is practically no current apart from the tide and it is reasonably sheltered from swells coming from the open sea. Since it is close the settlement of Qeqertarsuatsiaat (Fiskenæsset) there is cellular telephone coverage in the area. Conclusion: Based on visual inspection, the shallow areas in the centre of the fiord are situated too close to the mainland which does not leave sufficient open water and space for trans-shipment activities. Figure 5-2: Photos and Bathymetry for Site Q1 5.2 SITE Q2 Location: One (1) nautical mile NNE of Qeqertarssuatsiaq (Fiskenæsset) called Pudtlat Coordinates: B 63*6`201 N; L 50*40`745 W Description: The approach is the same as for the site Q1 you just carry on passing Qeqertarsuatsiaat (Fiskenæsset) in an almost straight line. The depth is in the range from 66 m to 182 m. In the small inlet Pudtlat water dephs exceed 50 meters and the area offers the possibility of installing “duc d`albe” on shore. The closest shallow point is 476 meters away from the 50 m depth contour. This allows room enough for the carriers to turn and there will still be ample space for the tugs to maneuver as well. The site is well sheltered from swells and experiences practically no current. There is also cellular telephone coverage in the area due to the proximity of the settlement. Concerns: There are considerable fishing activities at both sites Q1 and Q2. Conclusion: Based site reconnaissance this area could be a potential site worth considering. Figure 5-3: Photos and Bathymetry for Site Q2 5.3 SITE Q3 Location: South east of the island of Qeqertarssuatsiaq in a fiord called Kingutilik Coordinates: B 62*59`212 N ; L 50*32`338 W Description: Site has an easy approach with water depths from 50 m to 220 meters. On or close to the Kangarssuk peninsula offers the possibility of installing a “duc d`albe” and the depths are approximately 10 to 31 meters at smaller peaks. There is ample space for turning in the fiord and no shallow places. The bottom seem to be mostly rock which makes it a bit more difficult to use anchors. Conclusion: Based site reconnaissance, this site is not suitable for trans-shipping activities. Figure 5-4: Photos and Bathymetry for Site Q3 5.4 SITE Q4 Location: Igutalik Fjord Coordinates: B 63*00`186 N; L 50*30`125 W Description: Further into the fiord (Igutalik) the bottom is rocky but with a lot of smaller peaks and “valleys”. There are two shallower spots in the fiord with a distance between them of approximately 352 meters. The depths are quite steady from 50 to 80 meters. This place could be an ideal place for anchoring. It is completely sheltered from swells, there are no current and finally the fiord is protected from Southerly wind. The access to the suggested anchor site or area can be either between the two shallower points or between the Southern shallow point and shore. The latter has the best draught. Conclusion: Based site reconnaissance this area could be a potential site worth considering for the trans-shipping operation. Figure 5-5: Photos and Bathymetry for Site Q4 5.5 SITE Q5 Location: Q5 is situated Southeast on the island of Qeqertarssuatsiaq. Coordinates: B 63*01`683 N; L 50*39`633 W Description: The approach is the same as Q3 but instead of turning East after passing the islands of Simiutat, the ship sails straight ahead for 3 nm. The depths are excellent in the approach ranging between 197 to 250 meters of water. From the end of a smaller peninsular and approximately 700 meters ahead, water depths range from 20 to 35 meters fairly close to land and almost 200 meters of depth to the East of the peninsula. The site is ideal for installing a “duc d`albe”, but not for anchorage due to the steep ridge fairly close to land. There can be swells by a Southwestern storm but the site is well protected, with few current except for the tide. Conclusion: Based on site reconnaissance, this area could be a potential site worth considering for the trans-shipment activities. Figure 5-6: Photos and Bathymetry for Site Q5 SECTION 6.0 PAAMIUT The potential trans-shipping sites evaluated in the Paamiut area are shown on Figure 6-1. Figure 6-1: Potential Trans-shipping Site near Paamiut 6.1 SITE P1 Location: P1 is situated just north of the town Paamiut, close to the island called “Søndre Storø”. Coordinates: B 62*01`920 N; L 49* 38`980 W Description: Access to the site will be via Imartuneq Bay. The approach to the site passing Søndre Storø is excellent with water depths ranging between 155 to 230 meters. The Imartuneq Bay has two smaller reefs but there is passage on either side with depths of 71 to 80 meters passing on the North side and 30 to 50 meters passing south of the reef. The distance between the Northern most reef and the island called Ukivit is approximately 500 m, and the distance between the Southernmost reef and the island Søndre Storø and the isles called Ulimautialik is also 500 m. The area around these isles is quite shallow but the distance has been measured to where the shallow area begins (less than 50 m). However, the Northern passage is preferred for access. There can be some swells from North-westerly and a South-westerly gale force, but otherwise the site is well sheltered. There are no currents except for tidal currents. There are excellent anchorage sites in this area where the depths vary between 44 to 73 meters. There is also an opportunity to install bollards on land or some of the islands. Conclusion: Based on site reconnaissance of this area, the site could be suitable for trans-shipment activities. However, on detailed review, the site has been determined to be unsuitable for safe navigation by large bulk carriers. Figure 6-2: Photos and bathymetry for Site P1 6.2 SITE P2 Location: P2 is situated east of the town Paamiut in a fiord called Eqaluit. Coordinates: B 62*03`001 N; L 49*25`423 W Description: The access to the fiord is via a larger fiord called Kvanefjord. The approach is excellent with water depths ranging between 83 to 590 meters. The fiord is approximately 3.7 nm long and 0.8 nm wide and the depths through the fiord range from 47 to 157 m. The fiord is well protected from swells and wind from all directions except for direct wind from the West which is extremely rare. There are ice producing glaciers at the end of the Kvanefjord, and vessels will encounter pieces of ice in various sizes but no bergs on way to Eqaluit. There is no ice in the fiord of Eqaluit. There is a stretch of approximately 1.5 km where water depths range from 30 to 40 m at a distance of 200 m from shore. There a good anchorage sites at the end of the fiord where water depths range between 45 to 55 meters. The fiord floor is flat and consists of sediments/moraine gravel which offers good conditions for anchors. There are also several opportunities to install bollards on shore. Conclusion: Based on site reconnaissance, this site could be suitable for trans-shipment activities. SECTION 7.0 GRØNNEDAL The potential trans-shipping sites evaluated in the Grønnedal area are shown on Figure 7-1. Figure 7-1: Potential Trans-shipping Site near Grønnedal 7.1 SITE G1 Location: The site is situated NE of the former naval base and is a smaller cove (Ellerslie Havn). This is the site of the former Danish naval base that was relocated to Nuuk (2013). Coordinates: B 61*18`255 N; L 48*08`218 W Description: Water depths exceed 200 meters up to the latter third of the cove, where depths range between 30 to 60 meters. The cove is approximately 900 meter wide and offers ample space for ship maneuvering. The sea floor is not very good for anchoring since it is very steep and rocky. The glacier situated at the end of the Arsuk fiord is not producing any significant amount of ice. The site is accessed via the Arsuk fiord which is very well surveyed due to the presence of the Danish Navy during the past 6 decades. The naval base was originally established by the Americans in 1942 to protect the kryolit mine at Ivituut. The ice charts shows that during the ten year period (2001-2010) there has been no record of sea ice in the areas covering from Maniitsoq to Paamut including Grønnedal (Ivituut). Storms from the south-east (sydoest) are common, and winds of up to 234 km/hour have been recorded. Conclusion: Based on site reconnaissance and discussion with Danish Navy personnel, this site is not suitable for trans-shipment activities. Figure 7-2: Photos and Bathymetry for Site G1 7.2 SITE G2 Location: G2 is situated just across the former mine Ivigtut and is called “Christians Havn”. Coordinates: B 61*14`31 N; L 48*14`124 W Description: There are excellent water depths ranging from 110 to 432 meters at the approach to the site. At the end of the cove, water depths range between 33 to 86 meters. The cove is approximately 800 meters wide with ample space for ship maneuvering. The sea floor is reasonable for anchoring with depths of approximately 60 meters. There is a steep drop off to over 200 meters at a short distance from the shore. This cove is even more exposed to south-east winds (sydoest) than site G1. Conclusion: Based on site reconnaissance, this site is not suitable for trans-shipment activities. Figure 7-3: Bathymetry for Site G2 SECTION 8.0 REFERENCES 1. LNS Greenland, Report from the desktop and field trip evaluation in connection with the Greenland Transshipment Study, September 2014 2. Worley Parsons Canada, Greenland Trans-shipment Study, October 2011
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