James McWhinney is a long-tenured Investopedia contributor and an expert on personal finance and investing. With over 25 years of experience as a full-time communications professional, James writes about finance, food, and travel for a variety of publications and websites. He received his double major Bachelor of Arts in professional and creative writing from Carnegie Mellon University and his Master of Journalism at Temple University.
The world is going green, from recycling and power generation to organic groceries and sustainable fisheries. Everyone, it seemsincluding climate change scientists, businesses, consumers and politiciansis interested in easing the burden humanity places on the environment.
If you are looking for ways to put a little green in your wallet by putting somegreen in your portfolio, you might be surprised at the wide range of available offerings. Here is a look at 11 top green investment areas.
Green energy is a hot topic in a world concerned about climate change. Power generation that doesnt rely on the burning of fossil fuels to generate electricity for our homes or industries is creating a growing number of investment opportunities. Water, wind and solar are among the top sources of renewable energy.
One of the most important natural resources we have is water. There is considerable fear the world will run out of fresh water due to climate change. Cape Town, South Africa, was months away from running dry in 2018, until swift conservation measures helped to replenish supplies.
The European Environment Agency notes that some20 European countries depend on other countries for more than 10% of their water resources. Five (the Netherlands, Hungary, Moldova, Romania, and Luxembourg) rely on rivers that flow in from other countries to provide more than 75% of their water. In the United States, cities from Los Angeles to Miami are concerned about water scarcity as climate change takes a toll on water resources.
A portfolio of water investments might include companies that collect, purify and distribute water. The largest water utility company in the U.S. is American Water (AWK), which supplies drinking water to 14 million people. Essential Utilities (WTRG) supplies water to nearly 3 million people. And, sticking with our water theme, these utilities are just the tip of the proverbial iceberg.
If picking individual stocks is too much hassle, mutual funds provide additional ways to invest. The Calvert Global Water Fund and the AllianzGI Water Fund tap into water-based opportunities across the globe.
Water has also been the go-to resource for renewable energy for centuries. The ancient Greeks ran grain mills on water power. Today, projects such as China's massive Three Gorges Dam can supply electricity to between 70 million and 80 million households. According to the International Renewable Energy Agency (IRENA), hydropower is the most cost-efficient means of generating electricity.
There are few pure-play stocks in the hydro business. However, there are three energy producers with notable amounts of hydropower in their portfolios. PG&E (PCG) has one of the largest hydro operations. Idacorp (IDA) has 17 hydro projects. Meanwhile, Brookfield Renewable Partners (BEP) derives 74% of its portfolio from hydropower.
Wind is one of the fastest-growing sources of renewable energy, having increased 75-fold over the past two decades. China leads the world with 217 gigawatts of installed capacity in 2018, followed by the U.S. with 96 gigawatts and Germany with 59 gigawatts.
If this renewable interests you, look for wind farms that sell wind-generated energy, or consider companies that manufacture wind turbines. Here again, there are fewpure-playstocks, but a few of the interesting wind stocks include:
Energy from the sun powers homes, buildings and a variety of other items from lights to radios. If you think the sun is just starting to rise in this industry, focus your attention on companies that make solar panels, which will benefit as homeowners and businesses increasingly adopt solar power. First Solar (FSLR) is a leading producer of solar modules and systems. JinkoSolar Holding (JKS) also makes solar modules and claims to have delivered 52 gigawatts of production capacity. Sunpower (SPWR) makes solar modules and storage solutions for homes and businesses.
The reduction is the key term here. From reducing greenhouse gas emissions on industrial power plants to minimizing the emissions that come out of the tailpipe of your car, the pollution control industry is on the rise. This is the industry that responds every time legislation mandates an improvement in the amount of some harmful chemical that can be released into the environment. Companies and ETFs that focus on pollution control technologies include:
When it comes to transportation, Tesla (TSLA) is the first name on many peoples lists. While an attention-grabbing leader and exciting technology have kept this company in the news, its not the only game in town.
On a smaller scale, researchers are working with fuel-cell technology to develop an alternative method of powering automobiles. If this technology works, there are millions of carsand millions of consumerswaiting for it.
Companies that operate in the space include Ballard Power Systems (BLDP), which produces cells that can be used in vehicles and back-up power systems. Meanwhile, FuelCell Energy (FCEL) focuses on providing power options to commercial and industrial facilities.
Recycling has become a standard practice. Most people are aware that paper, metal and glass can be reprocessed and reused, but the things you didn't know you can recycle continues to grow. Waste oil, vegetable oil, batteries, cell phones, computers and even car parts can have a second life. Recycling these items involves a business enterprise humming along in the background.
In terms of your portfolio, waste management companies with a large base of recycling facilities may be of interest, including companies such as Republic Services (RSG) and Waste Management (WM). Covanta (CVA) takes a different approach, generating power by incinerating waste.
Organic farms eschew the use of pesticides, engage in sustainable farming practices and sell products that are often healthier to eat than the stuff composed of three-syllable words that you can't pronounce and a shelf-life measured in decades. They also engage in animal management practices that avoid the use of hormones and antibiotics, keeping those chemicals out of the food chain and out of the ground and water surrounding the farms. One of the biggest organic food companies is United Natural Foods (UNFI), a wholesale distributor of healthy food options.
Sustainable fishing is another food-related investment opportunity that is generating attention as the plight of the worlds overfished oceans impacts the human food chain. Mowi ASA (MNHVF), a Norwegian firm with global operations, is an interesting play in this space.
Geothermal energy uses heat from the earth to produce clean energy. Ormat Technologies (ORA) builds, owns and operates geothermal plants, with operations in the U.S., Guatemala, Guadeloupe, Honduras, Indonesia and Kenya.
For many companies, the urge to go green is a relatively recent phenomenon. As with change everywhere, some firms adapt and some don't. Investment managersin the green space have begun to categorize firms by the place they hold along the green spectrum.
Take oil companies, for example. One would be hard-pressed to think of these firms as green, and for the most part, they aren't. But if you take a closer look at theirbusiness models, it is easy to see that some are greener than others. In fact, several large oil companies are among the global leaders in promoting a tax on greenhouse gases and investing in energy sources that will help the world transition away from oil. Choosing the firms with the best environmental records and practices is another way of looking at green investments.
If a green investment catches your eye, there are plenty of ways to find a place for it in your portfolio. You don't have to choose individual companies to get into the area. Mutual funds, exchange-traded funds, stocks, bonds and even money market funds that focus on the environment are all available.
As reported by the Bucks County Courier Times, haulers in Montgomery County, Pennsylvania, are desperate for drivers with commercial drivers licenses as industries across the nation face a detrimental labor shortage.
"The effects of the COVID pandemic continue to impact our business," said John Hambrose, Waste Management's regional communications manager. "Like many transportation companies, we are being challenged by a shortage of commercial truck drivers and technicians."
Houston-based Waste Management, with offices in Bristol and Telford, issued a statement June 25 apologizing to its customers in Bucks and Montgomery counties who have complained about trash and recyclable pickup issues.
This is sort of old news for us, Frank Sau, spokesperson for J.P. Mascaro, told Waste Today. Weve been working with our municipal side of our business that were under contract with [to] come up with plans and prioritize what were collecting and when were collecting it.
Sau told the Courier Times that since more people are working from home and many have done home improvements since the pandemic began, the company is seeing 20 to 30 percent more trash to be picked up as well as extra construction debris in residential neighborhoods.
As municipalities begin to stiffen penalties for breaking ordinance regulating when trash can be collecting, many hauling companies have started to market hiring bonuses to build back their work forces.
Waste Management, for example, is offering up to $12,000 in educational benefits, $7,500 sign-on bonuses to experienced commercial drivers and technicians, plus $1,000 bonuses to current employees who refer someone successfully hired.
The doors are wide open. Weve been having job fairs, recruiting fairs, there is different bonuses and higher wages for drivers, helpers, you name it, he told Waste Today. Were trying to be competitive with the other players in the business. We are probably Pennsylvanias largest family-owned waste hauler, so weve been trying to attract drivers and helpers that way.
Its one of those industries where all of our customers depend on us, he said. Its very stable; its not seasonal work. We offer all the major benefits that you wouldnt get from other types of businesses, [such as] full health benefits, college reimbursement, vision, dental, you name it.
Bringing a local recycling program to the residents and businesses in the Denali Borough region of Alaska has been accomplished thanks to collaboration involving several local companies, nonprofits and government agencies. The Denali Borough government has worked with Carlile Transportation, Subaru, Holland America/Princess Alaska-Yukon, the Valley Community for Recycling Solutions, the Denali Education Center and the Denali Zero Landfill Initiative on its new system.
According to a news release prepared by the collaborative partners, until recently, recycling wasnt offered near Healy, the largest town in Denali Borough (which is named for North Americas highest mountain).
The closest recycling program resides in Cantwell, 40 miles south of the borough, which accepts recyclable materials like plastics No. 1, 2 and 5; aluminum; and paper, but not old corrugated containers (OCC).
Recycling inside the boundaries of Denali National Park, meanwhile, was limited to only materials gathered inside the park. Any business owners or residents intending to recycle had to travel to recycling centers in the cities of Fairbanks or Palmer, Alaska.
The corporate and not-for-profit partnership teamed up to bring OCC collection to the Cantwell Transfer Station and so OCC, aluminum used beverage can (UBC) and plastic No. 1 bottles could be collected at the Healy Transfer Station.
Our community has wanted a recycling program for some time now and were thrilled that we could join forces with our locally based companies and organizations to finally make this a reality, says Denali Borough Mayor Clay Walker. Its gratifying to see that when we join forces we can create beneficial solutions the entire borough can benefit from, and we can all reduce feeding the landfills.
Anchorage, Alaska-based Carlile Transportation has donated two trailers, one each to be parked at the transfer stations, to collect materials. Once full, Carlile Transportation will haul the load to the Valley Community for Recycling Solution, a recycling center in Palmer.
Subaru, through the Denali Zero Landfill initiative, is funding the transportation costs for the transfers in 2021. Carlile Transportation also has paid to have the trailers branded with the logos of the companies and organizations involved in the program.
Materials are accepted during the operating hours of the transfer stations and accepted free of charge. A pilot program is being run through mid-September and is open to all residents and businesses in Denali Borough, says the partnership.
The backers of the initiative say they are seeking dry, clean and broken down OCC; No. 1 polyethylene terephthalate (PET) water, soda and juice bottles, empty and with the caps removed; and aluminum UBCs and newer style aluminum bottles.
Westminster, Colorado-based Ball Corp. has released updated sustainability goals and made public a plan called Toward A Perfect Circle, which it calls an industry vision that sets out how, by working together, beverage brands, retailers, and aluminum beverage packaging manufacturers and their suppliers could make aluminum cans, bottles and cups the world's most recycled beverage containers surpass a 90 percent recycling rate from todays rate of 69 percent and increase the global average recycled-content rate to as much as 85 percent.
The company states, Today, recycled aluminum uses only 5 percent of the energy compared to using virgin material, and recycled cans have the potential to be back on the shelf in as little as 60 days.
To achieve its vision, Ball says it will drive multi-stakeholder action that includes developing a low-carbon roadmap for the aluminum beverage packaging sector, including used beverage cans (UBCs). The company also will advocate for investment in infrastructure and technology to support what it calls a more effective and efficient recycling system in the regions where it operates. Ball says it seeks to publish this multiregion recycling roadmap and carbon pathway plan within the next year.
As a world-leading manufacturer of aluminum beverage packaging, Ball has a responsibility to our stakeholders and the planet to improve the environmental performance, social impact and economic returns of our business and take a leading role in driving industry-wide solutions to the climate crisis, says John A. Hayes, chairman and CEO of Ball.
Our customers are seeking low-carbon and truly circular packaging options as they work to fulfill net zero targets and meet growing consumer demand for sustainable products, he adds. Infinitely recyclable aluminum cans, cups and bottles are the solution.
Representatives from several companies are quoted in a Ball Corp. news release announcing the roadmap, including recycling technology vendor Tomra Systems ASA; aluminum producer Novelis Inc.; beverage brand owner Anheuser-Busch InBev; melt shop furnace technology provider GHI; and recycling and policy consultancy ReLoop.
Tomras technologies help to drive deposit return systemsby making beverage container redemption easy for consumers while reducing costs in a shared-mission to achieve more than 90 percent collection and superior material quality that enables used containers to be turned into new containers over and over again, says that companys senior vice president Chuck Riegle.
Jos Domingo Berasategui of Spain-based furnace maker GHI comments, Our aluminum recycling furnaces are already able to obtain high metal yields with minimum energy in fully automated plants. As a leading designer and manufacturer of aluminum recycling technologies, we welcome Balls circular ambitions and we are ready to support the industry toward the circularity transition towards 2030.
Having recently announced our own ambitious sustainability targets to become a net carbon-neutral company by 2050 or sooner and reduce our carbon footprint 30 percent by 2026, we are committed to working together with Ball and other members of the value chain to continue to expand the use of lightweight, infinitely recyclable aluminum to achieve a more circular economy, remarks Steve Fisher, CEO of Atlanta-based Novelis.
Clarissa Moriawski, CEO and co-founder of Barcelona-based ReLoop, states, Its time for governments to lay the legal framework for effective collection and real recycling. The cumulative benefits from circular systems, like deposit return, mean less litter and carbon emissions; more valuable resources for local recyclers which means more jobs; and giving producers the opportunity to include large amounts of recycled content in their new packaging.
Ball is playing an important role leading the sector towards a better world, comments Felipe Baruque, a vice president with Anheuser-Busch InBev. Surpassing a 90 percent recycling rate and 85 percent in recycled content will require teamwork across the sector and can have a phenomenal impact for our planet.
Green is in, and policymakers around the world are including recycling as part of their carbon emissions reduction strategies. Paper mills in nations with a deficit of scrap paper, however, may soon find themselves unable to help close the recycling loop if transboundary regulations get in the way.
Panelists who took part in a roundtable discussion that was part of the late June online International Recycling Week event expressed an understanding of the sentiment that consuming recyclables closer to home has benefits. As Marc Ehrlich of Switzerland-based Vipa Group commented, however, When you want to restrict the movement of a commodity [you] have people who lose from this constraint.
Of particular concern to the panelists was the European Commission taking possible measures to restrict the exporting of scrap materials (including paper and metal) under Basel Convention waste regulations. The Basel Convention will classify recovered paper as a waste, but we experts in this field [believe] totally the opposite of that. We believe it is recyclable material, with specifications, stated Ehrlich.
If every country should restrict the export of materials, it can be a boon for many countries, but equally it would be a curse for others, remarked Vikas Mahajan of Mahajan Recycled Resources. The India-based recycler and trader said that when China cut off access to recovered fiber at the start of 2021, prices for paper [there] shot up to $600 per ton, until they started getting recycled-content pulp from other nations, then it went down to $200.
Ehrlich said restricting exports in Europe will lower scrap paper prices, and gave this summary identifying winners and losers: You have some winnersthe people who can benefit from a cheap commodity so they can make unfair competition [with] the rest of the world. On the opposite end, you have people who lose from this constraint. In this field, the losers are the municipalities that will have to pay much more subsidy for the collection of the recycling and the recycled paper. You have the taxpayer; we will have to pay more to support [recycling]. And at the end of the day this is all going to subsidize paper mills that are located in the right place.
We cant rely on old supply chains and old assumptions, added roundtable moderator WadeSchuetzeberg of Netherlands-based Way Forward Enterprises BV. He said China began "thinking about this direction 15 years ago. They can and are living without imported fiber. The markets are very adaptive. We need to, in order to meet the new demands for recovered fiber, also learn to adapt.
Ehrlich also expressed reservations about the volume of new containerboard capacity coming online in Europe and North America. It seems like every morning, one paper mill owner is having a great idea, which is to convert graphic paper or newsprint capacity into board packaging capacity, he stated.
The first owner who had this idea, it was a brilliant idea, Ehrlich continued. Now that were about 200 paper mills later, Im wondering if there wont be a surplus of capacity very soon in Europe and the United States.
Sami Al Safran, CEO of Saudi Arabia-based containerboard producer MEPCO, said consuming scrap paper closer to where it is generated is a worthwhile environmental and ecological goal, and his company has been pursuing it in the Middle East region. He added, though, The challenge is the balance between the supply and demand. Regarding the recovered fiber surplus in Europe or North America, Should it go to the trading network or to the landfill? he asked.
Mahajan said India (including his company) is striving to boost its own scrap paper collection. However, Today, in 2021, we have [at least 11 paper] machines coming online in India. Where will they get the fiber from? Theyre going to have to keep a balance between domestic as well as from imports.
Every country has its standards, said Mahajan, and plants overseas are making an effort to cut down on the nonrecyclable content. He said the current lofty prices of recovered fiber benefits material quality. Every [sorting] step comes with a cost. So, at $50 [per ton] it was a losing proposition for a sorter. Today, when talking above $200 per ton, that cost allows a sorter to take out the nonrecyclable content and export at volume. No one wants a container to be diverted at the port, he added.
The high prices kicked in as COVID-19 caused retailers to lose business and home deliveries to escalate, causing another topic of conversation for the panel. The situation created a big stress on supply in 2020, said Safran, with even old corrugated containers (OCC) sometimes heading to landfills.
We need to go back to education to educate people to do better recycling at home, otherwise, a lot of material will go to landfill, said Ehrlich. He cautioned that such education takes five to 10 years to [create and maintain] better habits.
Waste Connections President and CEO Worthing Jackman sat down with National Waste & Recycling Association President and CEO Darrell Smith June 29 at WasteExpo to talk about Jackmans philosophy on leadership, the companys M&A aspirations and what it takes to build a culture within a waste organization.
Jackman said the companys philosophy on servant leadership, which prioritizes management catering to the needs of its employees, was put to the test during COVID-19. Despite economic uncertainties, the company dedicated almost $40 million to employee and family wages, in addition to wellness and health support, to tamp down worker anxieties over the last year and a half.
Our culture is one of servant leadership, which is always about being one for others and serving all your employees. We have to prove ourselves to our employees and their families each and every day. That approach guides our decisions. If we focus on the employees, then the employees can focus on serving their communities, Jackman explained.
In practice, the companys view on service leadership is non-negotiable, Jackman said. Supervisors have to complete a series of training courses to learn the tenets of service leadership. Employees are then asked to take a 12-question annual survey rating management to give a window into how staff feel about their bosses.
Its just common sense, what can you do each and every day to help your employees both professionally [and in their home life]? It comes down to [addressing their] mind and heart, Jackman said. Its a focus on if you care for each other, and you put the right relationships in place with the leadership and the people they have the privilege of leading, then you end up with fully empowered employees and employees who dont have to be told what to do. Part of it is knowing that if relationships drive results, what drives these relationships?
Relating to M&A, Jackman noted that now is easily one of the most active times, in quite some time, for M&A. He pointed to the low cost of capital and debt as primary drivers behind many deals being done, in addition to strong valuations that companies are enjoying. Looking forward, he said potential tax law changes could help persuade companies thinking of selling to come to the table in the near term.
For us, it has always been first and foremost the market, he said. The markets that we choose to operate in and a companys asset position in that market are critical for us. But brand name is critical for us, as well. We dont go into markets [where weve bought a company] and just put our name on everything. We dont take the names off the businesses. We have a local, decentralized business that retains the family feeling and retains the decision-making locally in the community. We dont think we can run a business better from Houston than they can in their home market. We recognize that if we do our job right, the customer doesnt realize there has been a change in ownershipmaybe there are some additional fleet assets or additional safety programs that get put in, but it should be very seamless.
One of the biggest challenges this industry faces is just attracting labor. This is a fantastic industry. There are high-paying jobs and people get to go home at night. There are gold-plated benefits, and great assets, great people, comradery and relationships. But labor availability and getting people to want to come into this industry, just looking ahead, is not going to get any easier, he said.
One of the headwinds the industry faces in recruiting new talent is the dangerous nature of the job. Jackman said Waste Connections takes somewhat of an unconventional approach in working to improve the companys safety record.
What weve found is that the path to improved safety performance, and I hate to say this, is to get rid of your safety people, he said. Dont have a safety department; dont make it someone elses responsibility; dont tell the driver to go down the hall and talk to the safety director. It is every employee owning safety and holding up a mirror where theyre accountable for it. Its about having tough coaching conversations. You can talk about technology all you want. Its not about having the technology; its the coaching of it. You need to have those tough conversations.
While having these tough conversations can be uncomfortable, Jackman said it is vital for improving performance. Coming full circle, Jackman said Waste Connections view on servant leadership has helped lay the groundwork for building a safer company that also is better able to retain its workforce.
Our view is that cultures are either accidental or purposeful. Sixteen years ago, we decided to take a purposeful journey [in pursuit of] servant leadership with a true belief that once you get your markets in place, its about human capital, and we are going to win on human capital. Put simply, how do you change a paradigm of high turnover and high frequency of [safety] incidents? Thats all about [touching employees] heads and hearts. It gets a lot easier when employees stay with you. You still have to coach; you still have to have difficult conversationsthis isnt soft leadershipbut it comes down to the belief that relationships drive results.
[email protected] Demands 1,300 Suppliers Use #RenewableEnergy. As of July 2021, all new supplier contracts will need to meet Porsches clean energy requirements to do any sort of business with the automaker. @harunasad2030 @ELDaily https://environmentalleader.com/2021/07/porsche-demands-1300-suppliers-use-renewable-energy/ #ESGYS #ESG #supplychain #CSR
Industrial Deep #Carbonization Initiative To Develop Global Strategy For Steel #Decarbonization By 2050via=ELDaily https://www.environmentalleader.com/2021/07/industrial-deep-carbonization-initiative-to-develop-global-strategy-for-steel-decarbonization-by-2050/ @ESG_Journey
Demand for #Biomass Likely to Exceed #Sustainable Supply, #agrifood Warns New Reportvia=ELDaily https://www.environmentalleader.com/2021/07/demand-for-biomass-likely-to-exceed-sustainable-supply-warns-new-report/
Join @CoritySoftwares #wastemanagement subject matter experts as they share best practices on leveraging #technology to alleviate the typical pains and take your waste program to the next level with visual location, barcoding and mobility. https://gateway.on24.com/wcc/eh/3047076/lp/3297723/digitizing-your-way-to-a-sustainable-waste-program
Cautionary Statement:The reader is advisedthat the PEA summarized in this press release is preliminary in nature and isintended to provide an initial, high-level review of the projects economicpotential and design options. The PEA mine plan and economic model includes numerousassumptions and the use of Inferred Resources. Inferred Resources areconsidered to be too speculative geologically to have economic considerationsapplied to them that would enable them to be categorized as mineral reserves,and there is no certainty that the PEA will be realized.
Trade-off studies will be performed to determine the best overall processing and dewatering methods, mining schedules, and infrastructure to further optimize the operation leading to increasingly attractive economics to be included in the eventual feasibility study. These will include:
The Pine Point Project has a high potential for mineral resource expansion. There are11 deposits within the 2020 MRE having unconfined high-grade drill intercepts indicating mineralization may extend into open areas of sparse drilling (seeResource Target Map), immediately adjacent to reported Mineral Resources. Asignificant brownfield exploration drilling program will aim to increase resources by expanding open pit deposit boundaries as noted.
Drillingto date was focused on decreasing drilling spacing within the deposit boundaries in order to convert historical resources to NI43-101 Inferred Resources and then to convert a portion to Indicated Resources.
The Company has been actively exploring the 46,552-hectare Project area and believes the potential for new discoveries is excellent within proximity to existing infrastructure. Only one third of the favorable stratigraphy thickness has been tested to date, sothis large area has exceptional shallow depth potential as well. The exploration program is applying new and contemporary technology that was not available in the past to the search for new deposits.
The Pine Point Project is expected to be a robust operation and profitable at a variety of prices and assumptions. Metal prices used in the study are based on long-term forecasted estimates. Two lower pricestress test scenarios were run to better ascertain the viability of the Project:
Under more bullish scenarios, the Project demonstrates even stronger economic returns and is well positioned to benefit from a higher long-term zinc price. At US$1.25/lb zinc and $0.95/lb lead, the Project returns an NPV of C$636.5M with IRR of 34.5% on an after-tax basis.
The Pine Point Project LOM plan will consist of the simultaneous exploitation of open pit deposits in the East Mill, Central, North and N204 Zones concurrent with underground operations in the West and Central Zones (Central Zone Underground Development) that are scheduled between Year 3 to Year 9. The overall strategy is to achieve an average LOM production rate of 11,250tonnes per day mined.
The open pit mineral resource inventory used in the LOM plan is contained in 47 open pits over a strike length of 50 kilometres and is mainly located above 125 metres depth from surface. Most of the deposits are characterized by multiple shallow tabular panels dipping approximately 2-5 degrees to the West.
The open pit mining method incorporates five metre benches in mineralized material, ten metre benches in waste and an overall open pit wall angle of 45 degrees. Mineral resources will be extracted using a fleet of long-haul trucks with a payload of 90 tonnes. The production rate will vary between 8,000 tpd and 11,250 tpd. The strip ratio is expected to average 5.2 to 1.
Underground operations will use 45 tonne haul trucks with a ramp access to produce at a rate of 4,000tpd in the West Zone and 1,500 tpd in the Central Zone. The mining methods used are a mixture of Long Hole Stoping (80%) combined with Room and Pillar (20%). All mineral resources will be transported to a central concentrator located adjacent to the existing electrical substation. Additional power will be supplied by LNG fuelled generators.
The Pine Point process plant (Mill 3D Model) is designed to treat up to 11,250 tpd Run Of Mine (ROM) material. The processing plant consists of a three-stage crushing circuit incorporated with an XRT based mineral sorting system that will reject 40% waste material on average. The mineral sorter concentrate will be blended with the crushing circuit fines to feed a ball mill (6,700 tpd) followed by conventional lead and zinc flotation circuits. The process plant will produce on average 168 tpd of lead concentrate at 62 % Pb and 687 tpd of zinc concentrate at 58% Zn.
Overallzinc and lead recoveries, inclusive of sorting, are expected to be approximately 87% and 93%, respectively over the LOM. The flotation concentrates will be filtered and trucked to Hay River for transloading into rail cars for shipment.Flotation tailings will be thickened and pumped for disposal within mined outpits.
The zinc and lead concentrates were analyzed for impurities (See press release datedAugust 7, 2019). Based on the results, at this time, Osisko Metals does not anticipate any smelter or refinery penalties for the Pine Point Projects concentrates and believes the historical high purity concentrate will be replicated.
Pine Point zinc and lead concentrates are not encumbered by any offtake agreements. It is expected that this type of high-quality material will be sought after by most smelters.The forecasted future zinc supply will be dominated with concentrates with high impurities which will require blending. Table 5 summarizes the main impurities (deleterious elements) that were analyzed in the zinc concentrates and lists typical minimal thresholds for smelter penalties.
Concentrate would be hauled approximately 80 km by truck to the intersection of Highway 5and 2 to a transloading facility at Pine Point Junction. Concentrate will be sent to North American smelters by railway, and further a field to Asian smeltersby bulk sea freight.
Pine Point zinc concentrates are expected to be predominantly smelted in North America using long-term benchmark contract prices with positive adjustments to account for its high-quality. The remaining portion is expected to be sold into both the Asian spot and benchmark contractmarkets.
The Pine Point Project is located 60km east of the town of Hay River in the Northwest Territories, on the south side of Great Slave Lake. Establishedinfrastructure consists of an active power substation, paved GNWT highway access andone hundred kilometres of pre-existing 25-metre-wide haul roads from the original mining operation that provide access to all major deposit areas. The town of Hay River is serviced byan airport and a paved road from Alberta. The town is also host to a railway head operated by the Canadian National Railway.
The proposed Project will comprise of 55 mining sites(47 Open Pits and 8 Underground deposits), one central concentrator plant site,and envisions the main electrical substation will feed 9 MW during the winter months and 12 MW during the summer. The power requirements will be provided by theNorthwest Territories Power Corporation through the Taltson hydro-electric grid.The construction period is estimated to be 18 months long.
Additional power will be supplied by mobile LNG fuelled generators that can be quickly moved to the various sites requiring power and minimizing the amount of transmission lines needed as several open pit mines have a mine life of less than three years. Further studies will aim to optimize the number and capacity of these LNG power generation units.
The main offices, warehouse, and auxiliary camp facilities (Plant Site) will include the new central concentrator, maintenance and truck shop, administration offices and service buildings, mine dry, cafeteria, fitness room and dormitory, a pumping station for fresh drinking water and fire protection, as well as a control gate and parking area.
Overburden stockpiles and waste rock stockpiles will be located nearby planned open pit mines where necessary and waste rock will also be deposited in former historical open pit mines. The overburden and waste rock will also be used for progressive reclamation where feasible.
There will be no Tailings Management Facility (TMF) as certain former open pits from the Cominco Ltd. era will be used for tailings disposal and then covered by Pre-concentrator reject waste rock material and finally covered with coarser sterile waste rock.
Indirect costs such as engineering, procurement and construction management, temporary facilities for construction and other related items are estimated at $68.2 million. An additional $89.4 million has been budgeted over the LOM as contingency for specific direct and indirect costs.
Over its 24-year production history from 1964 to 1988,several studies were completed to evaluate and manage water during the Cominco Ltd. era. Using methodologies such as dewatering wells, grouting and mineplanning which considered hydrogeology, a preliminary dewatering plan was prepared for the Pine Point Projects PEA.
For the North, Central and East Mill Zones, open pit mines were grouped into clusters measuring 3 kilometers long and 1 kilometer wide. Generally, pits located within a cluster are mined in sequence to reducede watering requirements. Lowering the water table within the deepest pit within a cluster will potentially reduce water management at that time for surrounding pits. Utilizing this type of dewatering strategy will help to optimize overall pumping rates and power requirements.
To reduce water management in underground mines in the West Zone, grouting was selected as the preferred water inflow restriction methodology. Discussions with experts and previous employees of Pine Point Mines during the Cominco Ltd. era benefitted the analysis and grouting was chosen as the preferred method to reduce water inflow.
All mining projects located in the NorthwestTerritories are assessed in accordance with the Mackenzie Valley Resource Management Act (MVRMA). Environmental assessments are conducted by the Mackenzie Valley Environmental Review Board (MVEIRB) and includes all relevant federal agencies, such as ECCC and DFO, as parties to the process.
At the completion of the environmental assessment (EA),ifthe board recommends the Project be approved, the Mackenzie Valley Land and Water Board (MVLWB) will process the proponents applications for a Water License and Land Use Permit through a public process.
A closure and rehabilitation plan estimate for the Projecthas been developed by WSP as required by the MVRMA. Reclamation costs were estimated at $62.8 million, less $15.6 million of equipment salvage value, resulting in a reclamation cost (net of salvage value) of $47.1M.
Activities during closure will include the dismantling of the buildings and infrastructure erected for the operations of the mines and processing plant, the closure of the tailing deposition areas in the former open pit mines, waste rock stockpiles and reclamation of other areas disturbed during the project life. This cost estimate includes both the cost of site reclamation as well as post-closure monitoring.
The Company has taken a proactive approach toward working and consulting with local indigenous and non-indigenous communities that would be impacted by the Project. Consultation on the Project with the communities was initiated in 2017 and has continued with frequent notifications on project activities, meetings, open house presentations and employment and contracting opportunities.
Both the Aboriginal and non-Aboriginal communities have expressed strong support for the Project, with the objective of maximizing the economic benefits for local communities specifically with a focus on employment and entrepreneurial opportunities throughout the various phases of the Project.
The realized Project would have a significant impact in the Northwest Territories,with the potential of generating over C$529M in combined federal and territorial tax revenue and contributing approximately 258 well remunerated jobs during the production phase and approximately 395 jobs during the construction period.
Mineral Resources are 80% within surface pit constrained and 20% underground deposits. The increase in underground resources is attributed to the change in concept ofthe West Zone to underground mining methods to be consistent with the PEA.
Drilling by Osisko Metals completed in H2 2019 in the East Mill Zone successfully extended the mineralization between separate pits. Drilling reduced the distance between the pits (seeN39 Surface Map) and increased tonnage by 13% with a 3%increase in ZnEq grade.
Indicated Mineral Resources are attributable to the inclusionof the available results from the 2018-2020 drilling campaign and the incorporation of Differential GPS survey data across the Project, as well asincluding several resampled and twinned historical drill holes from the Cominco Limited era.
The difference in tonnage between the 2019 and 2020 MRE is almost exclusively attributed to the change of mining concept in the West Zone to underground which was partially offset by the addition of tonnage in the East Mill Zone. The tonnage that was removed from the mineral inventory in the West Zone were tonnes that graded between the cut-off of 2.0%ZnEqin the previous pit-constrained methodologyand the new underground cut-off grade of5.0% ZnEq. All other zones saw minor change in tonnes and grade.
The underground portion of the 2020 MRE utilizes similar financial and smelting assumptions to the pit-constrained portion of the 2020 MRE. The West Zone mining methodology has been changed to underground to be consistent with the PEA. Similar to the 2019 MRE, tonnage in the CentralZone consists of mineralization found adjacent to the pit wall boundaries of certain deposits, as well as mineralization that is relatively continuous over longer distances near pit-constrained mineralization or historical pits.
1.The independent qualified person for the 2020 MRE, as defined by National Instrument 43-101 guidelines, is Pierre-Luc Richard, P.Geo., of BBA Inc. The effective date of the 2020 MRE is January 18, 2020.
2.These mineral resources are not mineral reserves as they do not have demonstrated economic viability. The quantity and grade of reported Inferred Resources in the 2020 MRE are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as Indicated or Measured, however It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
3.Resources are presented as undiluted and in situ for an open-pit and underground scenario and are considered to have reasonable prospects for economic extraction. The constraining pit shells were developed using overall pit slopes of 45 to 50 degrees in bedrock and 26.6 degrees in overburden. Resources show sufficient continuity and isolated blocks were discarded; therefore, the herein 2020 MRE meet the CIM Guidelines published in November 2019.
4.The 2020 MRE was prepared using GEOVIA GEMS 6.8.3 and is based on 19,509 surface drillholes and 166,376 samples, of which 7,852 drillholes and a total of 47,998 assays were included in the modeled mineralization. The drillhole database includes recent drilling of 78,195 metres in 1,182 drillholes since 2017 and also incorporates Cominco Ltd.s historical drillholes, the use of which was partially validated by a drillhole collar survey, twinning programs, and a partial core resampling program. The cut-off date for the drillhole database was December 31, 2019.
5.The 2020 MRE encompasses 254 zinc+lead mineralized zones, each defined by individual wireframes with a minimum true thickness of2.5 m. A value of zero grade was applied in cases of core not assayed.
7.Density values were calculated based on the formula established and used by Cominco Ltd. during their operational period between 1964 and 1987. Density values were calculated from the density of dolomite, adjusted by the amount of sphalerite, galena, and marcasite/pyrite as determined by metal assays. A porosity of 5% was assumed. Waste material was assigned the density of porous dolomite.
9.Zinc equivalency percentages are calculated using long term metal prices indicated below in (10), forecasted metal recoveries, concentrate grades, transport costs, smelter payable metals and charges.
10.The estimate is reported using a ZnEq cut-off varying from 1.85% to 2.05% for open-pit resources and 5.00% for underground resources. Variations take into consideration trucking distances from the pit constrained mineralization to the mill and metallurgical parameters for each area. The cut-off grade was calculated using the following parameters (amongst others): zincprice = USD1.15/lb; lead price = USD0.95/lb; CAD:USD exchange rate = 1.31. The cut-off grade will be re-evaluated in light of future prevailing market conditions and costs.
11.The 2020 MRE presented herein is categorized as Inferred and Indicated Mineral Resources. The Inferred Mineral Resource category is constrained to areas where drill spacing is less than 100 metres and the Indicated Mineral Resource category is constrained to areas where drill spacing is less than 30 metres. In both cases, reasonable geological and grade continuity were also a criterion during the classification process.
15.The QP is not aware of any known environmental, permitting, legal, title-related, taxation, sociopolitical or marketing issues,or any other relevant issues that could materially affect the 2020 MRE.
This PEA was prepared for Osisko by BBA Inc,WSP Canada Inc. and other industry consultants, all Qualitied Persons (QP) under National Instrument 43-101. The study was coordinated by the Companys Project Manager Annie Beaulieu P.Eng. and in collaboration with the Osisko Gold Royalties Technical Services Group.Get in Touch with Mechanic