Ship being loaded with concentrates at the Greens Creek Mine concentrate storage and loading terminal located at Hawk Inlet on Admiralty Island.

The Greens Creek Mine and milling operation is a joint venture between Kennecott Minerals Company (70.3 percent) and Hecla Mining Company (29.7 percent). Located on Admiralty Island, near Juneau, Alaska, the operation employs about 270 people.

Greens Creek is located in the Tongass National Forest, a temperate rain forest which stretches some 500 miles along the southeastern coast of Alaska. The mine is located within the non-wilderness portion of the Admiralty National Monument, home to the world's largest concentration of brown bears.

The Greens Creek orebody was initially discovered in 1975 and exploration drilling began in 1978. Mine development started in 1987 with full production commencing in 1989. The mine closed in 1993 due to low metal prices. Greens Creek took advantage of the production downtime and experience gained during the first four years of operation to upgrade several operating systems prior to resuming mining and milling operations in 1996.

The operation consists of an underground mine that provides a polymetallic silver, zinc, gold and lead ore to a surface mill and concentrator, which in turn produces lead, zinc and bulk concentrates.

During 2000, Greens Creek employees and contractors worked a total of 662,649 hours. The underground mine produced 617,000 tons of ore with an average grade of 20.1 ounces per ton (opt) of silver, 13.6 percent zinc, 0.21 opt of gold and 5.3 percent lead. The concentrator produced 86,000 tons of zinc concentrate, 44,000 tons of lead concentrate and 70,000 tons of bulk concentrate. Additionally, 32,250 ounces of gold/silver doré were produced in 2000.

Greens Creek concentrates are regularly sent by ships to smelters throughout the world for processing.

Aerial view of the Greens Creek Site 23 production rock storage area. During 2000, Greens Creek placed 107,361 tons of production rock on the Site 23 storage area.

Greens Creek East Side tailings area where dry tailings are being compacted and deposited. During 2000, Greens Creek placed 273,236 tons of tailings in the impoundment area.

Potential Project Impacts

Greens Creek utilizes policies, practices and modern technology that, combined with the input of industry, government and the public, help the operation meet or exceed national standards for protection of the environment, while operating in a socially responsible manner that contributes to the economy of Alaska.

Because the mine is located in the Admiralty Island National Monument, which is administered by the United States Forest Service, it operates in an environmentally sensitive area. The mine's activities are governed by a General Plan of Operations approved by the U.S. Forest Service.
The Greens Creek operations are also regulated by Juneau City/Borough, state and federal licenses and permits.

Through the National Pollutant Discharge Elimination System (NPDES) permit, the mine monitors and discharges treated water into Hawk Inlet, ensuring it meets the Alaska State water quality criterion.

The mine generates its own power requirements from a powerhouse using diesel fired generators. Through an air quality permit the mine is allowed to discharge airborne emissions of up to 760 tons of Oxides of Nitrogen (NOx) and 44 tons of Carbon Monoxide (CO) per year from the powerhouse. Particulate matter is limited to less than 0.03 grains/dry standard cubic foot.

Greens Creek is currently utilizing two surface disposal areas consisting of a 29 acre tailings placement area with a total capacity over the remaining projected life of 4 years of 3.5 million cubic yards, and a production rock storage area (Site 23) having a total capacity of 1.9 million cubic yards over 11 acres.

Concentrates are transported from the 920 mine site to the port facilities at Hawk Inlet and filtered tailings to the tailings impoundment in 50 ton haulage trucks. The haulage trucks are covered to eliminate spillage or dusting, and the truck tires are washed after each load prior to re-entering the site road network.

Community Relations

An effective community relations program is vital to the success of the Greens Creek operation. The Greens Creek Communities Plan is annually updated to ensure it addresses needs of the local communities.

A Greens Creek community perception survey was completed in December 2000. Particular attention was given to determining community opinions regarding the economic effect and environmental stewardship of the Greens Creek operation. The survey further defined local communities, analyzed relationships and measured the effectiveness of the operation's Communities Plan efforts.

Greens Creek's community relations success measurements include:

• Community perceptions of the operation.
• Health, safety and wellness of Greens Creek employees and neighbors.
• Human investment in jobs and training.
• Openness of the Greens Creek management.
• Community needs addressed through company contributions.
• Environmental responsibility as measured through regulatory compliance.
• Economic benefits in taxes paid to Alaska and the federal government.
• Employee involvement in community affairs.

Community consultations help Greens Creek understand the specific issues and needs of stakeholder groups and how best to address them. In addition, these activities help the public understand and appreciate achievements made at Greens Creek, as well as the operation's positive impact on the surrounding communities.

Year 2000 Activities

The Greens Creek Mine first developed a formal communities relations program in 1997, with a budget of $30,000. For year 2000, approximately $85,000 was spent for community affairs.

Actions taken through the implementation of the Greens Creek community relations programs have included:

• Maintaining legislative dialogue and holding meetings with legislators to address interests with Greens Creek's operations, such as Greens Creek's record of Alaska hire and the operation's regulatory compliance.
• Sponsorship of civic events, such as the Annual Gold Rush Days, a celebration of Juneau's mining heritage, hosted by the Parks and Recreation Department, and other events as they occur.
• Utilization of an internal speakers bureau, providing a forum for Greens Creek personnel to inform the surrounding communities about operational, environmental protection, and human resource achievements.
• Increased involvement in public meetings and forums through representation and participation in city assembly, district school board and other community venues.
• Supporting higher education through interaction with the University of Alaska to sponsor scholarships and summer internship programs for geology and mine engineering students.
• Supporting Juneau elementary and secondary schools, through donations of money and industry-related educational materials to school libraries, speaking to students upon request, and sponsorship of a scholarship prize during the annual high school Science Fair; and underwriting of the Alaska Economic News Report, which airs on statewide public radio.
• Charitable donations of money and materials to Big Brothers/Big Sisters of Juneau, the Southeast Alaska Red Cross, and the community homeless shelter.
• Support for the arts through donations and sponsorship of Alaska Public Radio, Perseverance Theatre, Juneau Lyric Opera and other community programs.
• Improving the quality of life in the native village of Angoon, located on Admiralty Island, through targeted employment and donations of time, money and/or equipment.
• Implementing a multi-agency Greens Creek Inter-Agency Review Team to publicly review Greens Creek's environ-mental and regulatory compliance efforts.
• Participating in the annual Friends of Admiralty Island Conference, a celebration and educational forum for the citizens of Juneau and surrounding communities.
• Conducting annual public tours of the Greens Creek operation, involving the scheduling of special transportation to Admiralty Island for up to 100 people.
• Sponsorship and supporting of the Alaska Women in Mining scholarship and fundraising events; representation of Greens Creek in the annual Native Alaska Federation Conference in Anchorage.

Due to Greens Creek, the City and Borough of Juneau, Alaska, receives nearly $1 million annually in mine-related revenues.

Greens Creek is the largest private sector employer in the Juneau area with 270 employees. Over 75 percent of Greens Creek employees are Southeast Alaskans.

Toxic Release Inventory Reporting

Greens Creek effectively prepared for and publicly reported TRI information for 1998 and 1999 activities. When the EPA formally releases its TRI report for 1999 activities, the Greens Creek Mine will again be straightforward in explaining TRI-related issues with the media and public. TRI data for the Greens Creek activities covering 1998 and 1999 are available on Kennecott Minerals Company's web site: www.kennecottminerals.com.

Health, Safety and Environmental Targets

Success in protecting the health and safety of employees and local communities is a key indicator of Greens Creek operational performance. This health and safety responsibility is woven into the mine's operating philosophy and was demonstrated by a 2000 employee and contractor lost-time accident rate over 5 times less than that of the national industry average for underground mining facilities (0.91 versus 5.14).

Greens Creek, however, fell short of achieving its 2000 safety goal of zero injuries and safety target of reducing its total of employee and contractor lost day and medical treatment injuries to no more than 5 (a 50 percent reduction from 1999 levels).

Safety Performance: Year 2000

2001 Safety Goal:
- Zero Lost Day, Restricted Work Duty, Medical Treatment and/or First Aid Injuries.

2001 Safety Target:
- Less than 6 Lost Time or Medical Treatment Injuries

Greens Creek also fell short of achieving its occupational health goal of zero occupational diseases, as there was one case of noise reduced hearing loss. Greens Creek received eight MSHA citations for exceeding the new Part 62 noise regulations that became effective in September 2000. Current mining equipment technology does not meet Part 62 noise requirements in the underground environment. Greens Creek continues to address high noise exposure areas by monitoring, implementing controls where feasible, and issuing employee hearing protection.

Greens Creek coordinated a mine-specific survey of diesel particulate sampling and analyses with the National Institute of Occupational Health in July 2000. The primary objective of the testing was to characterize the in-mine aerosol to aid in clarifying the interaction between naturally occurring carbon components in the ore and diesel exhaust particulates during analysis for carbon using the NIOSH analytical method 5040. Greens Creek remains concerned about the ability to accurately measure diesel particulates using this method and complying with the proposed MSHA diesel particulate standards.

The employee wellness program was expanded to include dietary advice and exercise facilities at the Hawk Inlet camp.

For 2001, the Greens Creek operations will continue to address reduced noise exposures through monitoring and controls.

The mine will also continue monitoring and reporting lead blood levels for those employees working in areas of high potential exposures in the mine and concentrator.

Environmental Performance:

An independent technical consultant engaged by the Greens Creek Inter-Agency Review Team issued a report in February 2000 addressing the two outstanding environmental issues related to the Fresh Water Monitoring Plan and the State of Alaska water quality criteria. The independent contractor was complimentary of the operation's environmental management programs addressing the potential for acid rock drainage, metals leaching and mobility, and water quality monitoring and controls.

Some quotes from the consultant's Summary Section of the report Technical Review: ARD/Metals Leaching and Fresh Water Monitoring Plan, Kennecott Greens Creek Mine stated:

"The combination of ARD control factors employed at Greens Creek are state-of-the-art and provide redundant protection of the environment from acidification and metals leaching." (p48)

"Greens Creek should be considered a showcase mine for its efforts in management and control of ARD." (p48)

"Based on reviews, analyses and graphs of trends in the FWMP data, there are no clear trends evident that would allow us to predict the likelihood of future water quality violations." (p76)

Greens Creek received notice from the U.S. Forest Service that due to the findings of the report, all outstanding issues related to compliance with the General Plan of Operations were terminated.

The Inter-Agency Review Team requested the consultant to update four appendices to the General Plan of Operations to implement recommendations in the report. These updated appendices are currently being reviewed by the U.S. Forest Service for authorization prior to the mine's implementation.

A Solid Waste Disposal draft permit was issued for public comment in November 2000 and the State Division of Air and Water Quality held a public hearing on November 16, attended by about 20 persons, to discuss issuing the permit that covers the placement of tailings both in the surface facility and placement in the underground mine workings as structural backfill. Also, placement and storage of production rock from the underground mine is covered by this permit as well as the operational monitoring and eventual closure of these sites. Post-closure monitoring is required for an additional 30 years following completion of site reclamation.

During 2000, the various regulatory agencies issued Greens Creek 15 new or renewed permits. Greens Creek currently maintains 47 active permits, leases, or approvals with state and federal regulatory agencies and the City and Borough of Juneau. Several permit applications remain under agency review at year-end.

Greens Creek regularly monitored 150 sites during 2000, to comply with regulatory and permit requirements and to monitor and evaluate environmental conditions around the 320-acre project area. This included the monitoring and reporting of both normal and storm water induced surface water flows, ponds, subsurface drains, ground water wells, drinking water supply, meteorology, fuel, air quality, permitted discharges, soil water pressure and archaeological site protection.

Key Health, Safety and Environmental Issues

Key HSE Issues:

- Control of noise exposures.
- Address lead dust exposures and hygiene.
- Address diesel particulate exposure monitoring and controls.
- Receive Solid Waste Permit.
- NEPA process for EIS for tailings storage.
- Air quality permit for new turbine generator.

HSE Management Practices

A principal element of the Greens Creek Mine HSE Policy is to ensure the operation remains in compliance with existing regulations. This was verified through internal and external audits and inspections:

Agency Inspections and Reports

• U.S. Forest Service: One inspection per week to ensure compliance with the General Plan of Operations.
• Mine Safety and Health Administration: Four inspections per year.
• Alaska Department of Environmental Conservation: At least two inspections per year.

Greens Creek continues to report to the following state and federal agencies on a regular basis:

• Alaska Department of Environmental Conservation:

  NPDES - discharge, receiving waters, storm waters, marine organisms and sediment, toxicity - reporting monthly, quarterly, semiannually and annually.
  Fresh Water - quality - reporting monthly and annually.
  Air Quality - emissions, operating statistics - reporting continuous, monthly and annually.
  Drinking Water - treatment level, contaminants - reporting daily, monthly, quarterly and annually.
  Food Service - kitchen - reporting annually.
  Spills - reporting on each occurrence.

• Alaska Department of Natural Resources:
  

Fresh Water - creek flow, withdrawal - reporting monthly and annually.
Dam Safety - reporting annually.

• Alaska Department of Fish & Game:
  

Creek disturbance - reporting each occurrence.

• U.S. Forest Service:

NPDES - discharge, receiving waters, storm waters, marine organisms and sediment, toxicity - reporting monthly, quarterly, semiannually and annually.
Fresh Water - creek flow, withdrawal - reporting monthly and annually.
Spills - reporting on each occurrence.
Operational - tailings compaction, contact water, piezometer - reporting monthly.
Surface exploration - reporting annually.


• U.S. Environmental Protection Agency:
  

  NPDES - discharge, receiving waters, storm waters, marine organisms and sediment, toxicity - reporting monthly, quarterly, semiannually and annually.
  Toxic Release Inventory - reporting annually.
  Hazardous Waste - shipments off site - reporting annually.

• U.S. Coast Guard:
  

Spills - reporting on each occurrence.
Ship registry - reporting annually.
Wetlands - disturbance - reporting each occurrence.

• U.S. Nuclear Regulatory Commission:
  

Licensed material - use, safety - reporting annually.

• City and Borough of Juneau:
  

Activities report - reporting annually.

• All Regulatory Agencies:
  

Annual activities report, and projected work plan - reporting annually.

Audits and Reviews

Audits and strategic risk reviews have been conducted by both internal (Rio Tinto and Kennecott Minerals Company) and external personnel (consultants and agency personnel).

Emergency Planning

Greens Creek has a formal Emergency Response Plan that includes emergency evacuation plans with local transport providers: boat, plane and helicopter. These plans were tested by conducting a mock emergency drill in 2000.

Compliance

Greens Creek remained in full compliance with all permits and licenses during 2000.

To date, there has been no official response to the minor NPDES permit modification requested from the EPA to address complying with discharge limitations on coliform concentrations. The mine has not received a final report from the EPA regarding a July 1999 Multi-Media Inspection Team site inspection.

During 2000, there were 29 reportable spills. This compares to a total of 34 spills in 1999 (a 15 percent reduction). All spills were properly reported to appropriate agencies and managed, with no measurable impact on the environment.

HSE Recognition

Greens Creek was recognized in August 2000 by the State of Alaska as the EMS (Emergency Medical Services) Provider of the Year for 1999.

Year 2001 Outlook

Greens Creek will be requesting modifications to the Air Quality Operating Permit to install a turbine generator as part of the power generation system. Rated at over 5 megawatts, this new unit will produce the majority of the mine/mill site's electricity, thereby reducing green-house gas emissions, particularly NOx. The current reciprocating engine-driven generators will be relied on to provide the fluctuating electrical need over and above the new turbine unit's production, and to serve as backup power production capability during the infrequent times when the turbine is off-line for maintenance.

Also during 2001, Greens Creek will be initiating an Environmental Impact Study analyzing the effects of necessary additional surface tailings placement capacity. A Memorandum of Understanding was entered into with the state, federal and Juneau City/Borough regulatory agencies for the coordination of the EIS process under the National Environmental Policy Act. Two site locations have been presented to the U.S. Forest Service in the NEPA pre-application materials.

The U.S. Forest Service will select an independent contractor to prepare the necessary NEPA analyses and documents for this project. The contractor will take the lead, under U.S. Forest Service direction, in organizing the analysis, public involvement, and NEPA document preparation for this project initiative.

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