Permitting Plan
Crawford Nickel Project

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Document Reference Number: 95

March 31, 2023

Table of Contents

• 1. Introduction
• 2. Project description
• 3. Required regulatory instruments identification and justification
• 4. Information on required regulatory instruments
• 5. Interpretation
• 6. Contact information
• 7. Summary table – anticipated regulatory activities

1. Introduction

On January 5, 2023, the Impact Assessment Agency of Canada (the Agency) announced that an impact assessment is required for the Crawford Nickel Project (the Project) proposed by Canada Nickel Company (the proponent), pursuant to section 16(1) of the Impact Assessment Act.

This Permitting Plan was developed by the Agency to outline the federal permits, licences and authorizations (regulatory instruments) that may be required for the Project should the Minister of Environment and Climate Change (the Minister) issue a decision statement to the proponent with enforcable conditions to allow the Project to proceed.

The Agency may revise the Permitting Plan during the impact assessment process in response to new information or advice from the proponent, regulators, jurisdictions or other participants in the process, and in order to accommodate any changes with respect to the Project that may occur during the assessment.

2. Project description

The proponent is proposing the construction, operation, decommissioning and abandonment of an open-pit nickel-cobalt mine and on-site metal mill, located 43 kilometres north of Timmins, Ontario. As proposed, the Project would have a mine ore production capacity of 275,000 tonnes per day and a mill ore input capacity of 120,000 tonnes per day. The Project would operate for about 43 years.

3. Required regulatory instruments identification and justification

Based on the Detailed Project Description submitted to the Agency by the proponent on December 12, 2022, and information provided by Federal Authorities, three^Footnote 1,^Footnote 2 regulatory instruments may be required for the Project, should the Minister issue a Decision Statement to the proponent allowing the Project to proceed.

The following regulatory instruments may be required for the Project:

3.1 Authorization under paragraphs 34.4(2)(b) or 35(2)(b) of the Fisheries Act

An authorization under paragraphs 34.4(2)(b) and 35(2)(b) of the Fisheries Act may be required for proposed works, undertakings or activities that could result in the death of fish or harmful alteration, disruption or destruction of fish habitat.

The Project may have effects on fish and fish habitat due to project components and activities such as the tailings management facility, waste rock and overburden stockpiles, ore stockpiles, watercourse diversions, blasting, and water crossings.

3.2 Authorization to use waters frequented by fish as a Tailings Impoundment Area under subsection 5(1) of the Metal and Diamond Mining Effluent Regulations

An authorization may be required through a decision by the Goveror in Council to add water bodies frequented by fish to Schedule 2 of the Metal and Diamond Mining Effluent Regulations (MDMER) designating them as tailings impoundment areas and allowing for the deposit of waste rock, acutely lethal effluent or effluent of any pH and containing any concentration of a deleterious substance that is prescribed in section 3 of the MDMER in these water bodies. The Project involves a tailings management facility, waste rock pile(s), and ore stockpile(s) impacting waters that may be frequented by fish.

Section 27.1 of the MDMER requires the development and implementation of a fish habitat compensation plan to offset the loss of fish habitat that would occur as a result of the use of a water body frequented by fish for the deposit of a deleterious substance such as mine waste.

3.3 Approvals under the Canadian Navigable Waters Act

The Canadian Navigable Waters Act (CNWA) prohibits the construction or placement of any works in a navigable waterway that may interfere with the public right to navigation without complying with the requirements of the CNWA.

An approval is required for any major work on navigable waters, whether listed or not in the Schedule to the CNWA (paragraph 5(1)(a)). An approval is required for a work, other than a minor work (subsection (4(1)), on navigable waters listed in the Schedule (paragraph 5(1)(b)). A work, other than a major work or minor work, on a navigable water body that is not listed in the Schedule to the CNWA, requires either an approval (paragraph 10(1)(a)) or a public notice and a deposit of information (paragraph 10(1)(b)).

An exemption from the Governor in Council (section 24) is required for the deposit of stone in navigable waters or in a watercourse flowing through navigable waters (section 22) and for the dewatering or lowering of water levels in navigable waters (section 23).

Based on the Detailed Project Description, approvals under section 5, 10, and 24 of the CNWA may be required.

4. Information on required regulatory instruments

4.1 Authorization under paragraphs 34.4(2)(b) or 35(2)(b) of the Fisheries Act

4.1.1 Description

This authorization is the responsibility of Fisheries and Oceans Canada (DFO).

Subsection 34.4(1) of the Fisheries Act prohibits the carrying on of any work, undertaking or activity, other than fishing, that results in the death of fish. Under paragraph 34.4(2)(b) of the Fisheries Act, the Minister of Fisheries and Oceans may issue an authorization with conditions relating to the carrying on of the work, undertaking or activity that result in death of fish.

Subsection 35(1) of the Fisheries Act prohibits carrying on any work, undertaking or activity that results in the harmful alteration, disruption or destruction of fish habitat. Under paragraph 35(2)(b) of the Fisheries Act, the Minister of Fisheries and Oceans may issue an authorization with conditions relating to the carrying on of the work, undertaking or activity that results in the harmful alteration, disruption or destruction of fish habitat.

4.1.2 Regulatory process

The Fish and Fish Habitat Protection Program from DFO ensures compliance with the provisions of the Fisheries Act and the Species at Risk Act (SARA). The program considers any proposed work, undertaking or activity that may result in adverse effects on the fish and its habitat.

New provisions of the Fisheries Act regarding the protection of fish and fish habitat came into force on August 28, 2019. The proponent is encouraged to consult DFO's Projects near water website to understand the changes made and ensure compliance of the Project with the new provisions of the Fisheries Act.

4.1.2.1 Application submission

It is recommended to request a review of the Project to DFO using the Request for Review form, available on DFO's Request a review of your project near water website.

An authorization will be required if DFO considers that the Project may result in the death of fish (paragraph 34.4(2)(b)) or in harmful alteration, disruption or destruction of fish habitat (paragraph 35(2)(b)). In order to seek an authorization, the proponent must submit an application to the Minister of Fisheries and Oceans in accordance with the Authorizations Concerning Fish and Fish Habitat Protection Regulations (hereafter the Fish and Fish Habitat Regulations). This application is transmitted to the relevant regional office of DFO.

4.1.2.2 Application analysis and consultation

Once an application for authorization is received, it is reviewed to ensure the information and documentation are complete. The information and documentation that must be submitted in an application for authorization are laid out in Schedule 1 of the Fish and Fish Habitat Regulations. Among others, the following information is required when submitting an application:

• description of proposed work, undertaking or activity;
• phases and schedules;
• location (maps);
• description of fish and fish habitat (aquatic environment);
• description of effects on fish and fish habitat;
• measures and standards to avoid or mitigate death of fish or harmful alteration, disruption or destruction of fish habitat;
• residual death of fish or harmful alteration, disruption or destruction of fish habitat after the implementation of avoidance and mitigation measures;
• offsetting plan (if required);
• summary of public and Indigenous engagement activities; and
• financial guarantees to cover the cost for the implementation of the offsetting plan.

A decision as to whether the information is complete must be issued within 60 days of receipt of the application. If the application is incomplete or inadequate, the applicant will be informed and provided an opportunity to provide the information or documentation to complete the application. Once the application is deemed complete and adequate, the applicant will be notified.

4.1.2.3 Regulatory decision

The authorization decision under the Fisheries Act is made during the 90-day period following the notification that the application is complete and adequate. The process for reviewing the application can be ceased under certain circumstances, which may include: awaiting the outcome of other federal requirements, such as a federal impact assessment; addressing requirements under SARA; consultation with Indigenous Peoples relative to the potential effects of the authorization decision on Aboriginal and treaty rights; and if additional or amended information is required to make the decision. Therefore, this decision can only be made after the Minister's Decision Statement relative to the impact assessment is posted on the Canadian Impact Assessment Registry Internet Site (the Registry). Several factors are taken into consideration when making a determination as to whether to issue an authorization, as described in subsection 34.1(1) of the Fisheries Act.

4.1.3. References

Fisheries Act, R.S.C. 1985, c F-14 https://laws-lois.justice.gc.ca/eng/acts/F-14/

Authorizations Concerning Fish and Fish Habitat Protection Regulations (SOR/2019-286) https://laws-lois.justice.gc.ca/eng/regulations/SOR-2019-286/index.html

Applicant's Guide to Support the Authorizations Concerning Fish and Fish Habitat Protection Regulations http://www.dfo-mpo.gc.ca/pnw-ppe/reviews-revues/applicants-guide-candidats-eng.html

Request a review of your project near water http://www.dfo-mpo.gc.ca/pnw-ppe/reviews-revues/request-review-demande-d-examen-001-eng.html

4.1.4 Contact information

For more detailed guidance on this authorization, please contact the DFO Fish and Fish Habitat Protection Program:

Fish and Fish Habitat Protection Program
Fisheries and Oceans Canada
1028 Parsons Road SW
Edmonton, AB T6X 0J4
Email: DFO.OPMiningOilandGasSouth-Exploitationminierepetroliereetg.MPO@dfo-mpo.gc.ca

4.2 Authorization to use waters frequented by fish as a Tailings Impoundment Area under subsection 5(1) of the Metal and Diamond Mining Effluent Regulations

4.2.1 Description

Subsection 36(3) of the Fisheries Act prohibits the deposit of deleterious substances into waters frequented by fish unless authorized by regulation. The MDMER authorize the deposit of deleterious substances under specific conditions, and include provisions to allow the use of waters frequented by fish for the disposal of mine waste. In order to authorize the storage of mine waste in waters frequented by fish, an amendment to Schedule 2 of the MDMER is required to designate those waters as Tailings Impoundment Areas.

Environment and Climate Change Canada (ECCC) is responsible for administering and enforcing the MDMER. DFO provides expert advice to ECCC on fish and fish habitat as well as on the compensation plan for habitat loss related to Tailings Impoundment Areas.

4.2.2 Regulatory process

4.2.2.1 Filing the information

It is the responsibility of the proponent to identify all water bodies affected by the disposal of mine waste, confirm the presence or absence of fish in these water bodies, provide the method used to document the presence or absence of fish, and provide information regarding the connectivity of these water bodies to other water bodies with fish. If the proponent intends to deposit waste rock or effluent containing any concentration of deleterious substances into water frequented by fish, consult the Guide To The Regulatory Process For Listing Water Bodies Frequented By Fish In Schedule 2 Of The Metal And Diamond Mining Effluent Regulations, or contact the Mining and Processing Division within ECCC by email at MDMER-REMMMD@ec.gc.ca.

If the listing of a fish-bearing water body is required, the proponent must develop an Alternatives Assessment Report in accordance with ECCC's

Guidelines for mine waste disposal alternatives, to demonstrate that the disposal of waste into waters frequented by fish is the best option from an environmental, technical, economic and socio-economic perspective. In addition, the proponent is required, under subsection 27.1 of the MDMER, to develop a Fish Habitat Compensation Plan to compensate for the loss of fish habitat resulting from the disposal of mine waste.

Providing this information during the impact assessment can reduce the time required for the regulatory amendment process under the MDMER; however, timing is determined by the proponent.

4.2.2.2 Review of information and consultations

Following the submission of the Alternatives Assessment Report and the Fish Habitat Compensation Plan, ECCC, in collaboration with DFO, will review these documents against ECCC's Guidelines for the Assessment of Alternatives for Mine Waste Disposal, DFO's Policy for applying measures to offset adverse effects on fish and fish habitat under the Fisheries Act, and the requirements under subsection 27.1 of the MDMER. During this phase, additional information may be requested from the proponent.

Once the information requirements are complete for both documents, the proponent will participate in consultations (led by ECCC and supported by DFO) with impacted Indigenous communities and the public relative to the proposed listing of water bodies to Schedule 2 of the MDMER.

4.2.2.3 Treasury Board decision

The decision to list a water body to Schedule 2 of the MDMER is made by the Treasury Board, on the recommendation of the Minister.

ECCC prepares the file for the regulatory amendment that includes the regulatory text describing the water bodies (e.g., name and location) and the Regulatory Impact Analysis Statement (RIAS) which is an evidence-based, non-technical synthesis of expected impacts, positive and negative, of the proposed amendment to Schedule 2 of the MDMER. The RIAS is published in the Canada Gazette with the text of the proposed regulation.

If the proposed amendment is approved by the Treasury Board, it is published in Part I of the Canada Gazette for a 30-day public comment period. In some cases, the proposed amendment may meet conditions for exemption from publication in Part I of the Canada Gazette, and will be submitted to Treasury Board for publication in Part II of the Canada Gazette. This approach provides for a more efficient regulatory approval process for proposed amendments to Schedule 2 of the MDMER, and aims to shorten the approval time for publication in Part II of the Canada Gazette. A Schedule 2 amendment may be exempt from pre-publication in the Canada Gazette, Part I, if it meets the conditions outlined in the document Streamlining the Approvals Process for Metal Mines with Tailings Impoundment Areas.

If the conditions for exemption from publication in Part I of the Canada Gazette are met, and the Treasury Board approves the exemption, the amendment to Schedule 2 of the MDMER will be published in Part II of the Canada Gazette.

If the conditions for exemption from publication in Part I of the Canada Gazette are not met, ECCC will publish the proposed amendments in the Canada Gazette, Part I, for a 30-day comment period. Following the end of the comment period, ECCC considers the comments in preparing the final regulatory package to make a final recommendation to the Treasury Board. If the regulatory amendment is approved by the Treasury Board, it becomes law on the day it is registered. The regulatory amendment and the Regulatory Impact Analysis Statement are then published in the Canada Gazette, Part II.

4.2.2.4 Timelines

The regulatory amendment process generally requires a period of 12 to 18 months following the completion of the Schedule 2 consultations, depending on whether the Streamlining policy is applied.

4.2.3 References

Metal and Diamond Mining Effluent Regulations (SOR/2002-222) https://laws-lois.justice.gc.ca/eng/regulations/SOR-2002-222/FullText.html

Streamlining the Approvals Process for Metal Mines with Tailings Impoundment Areas https://www.canada.ca/en/environment-climate-change/services/managing-pollution/sources-industry/mining-effluent/metal-diamond-mining-effluent/tailings-impoundment-areas/approvals-process-metal-mines-impoundment-areas.html

Guide To The Regulatory Process For Listing Water Bodies Frequented By Fish In Schedule 2 Of The Metal And Diamond Mining Effluent Regulations

https://www.canada.ca/en/environment-climate-change/services/managing-pollution/sources-industry/mining-effluent/metal-diamond-mining-effluent/tailings-impoundment-areas/guide-process-listing-water-bodies-fish-schedule-2.html

Guidelines for the Assessment of Alternatives for Mine Waste Disposal https://www.canada.ca/en/environment-climate-change/services/managing-pollution/sources-industry/mining/guidelines-mine-waste-disposal-alternatives.html

Policy for Applying Measures to Offset Adverse Effects on Fish and Fish Habitat https://dfo-mpo.gc.ca/pnw-ppe/reviews-revues/policies-politiques-eng.html

4.2.4 Contact information

For more detailed guidance on this authorization, please contact the ECCC Mining and Processing Division:

Mining and Processing Division
Environmental Protection Branch
Environment and Climate Change Canada
351 St. Joseph Boulevard
Gatineau QC K1A 0H3
Email: MDMER-REMMMD@ec.gc.ca

4.3 Approval of works under the Canadian Navigable Waters Act

4.3.1 Description

Transport Canada is the lead department for the administration of the CNWA, where the Minister of Transport is responsible for the approval of works that may interfere with navigation. The mandate of the CNWA is focused on assessing impacts of a work or project on navigation.

The CNWA, requires owners of "works" to comply with requirements of the CNWA for the protection of navigation on navigable waters. As per the CNWA, a work includes "(a) any structure, device or other thing, whether temporary or permanent, that is made by humans, including a structure, device or other thing used for the repair or maintenance of another work; and (b) any dumping of fill in any navigable water, or any excavation or dredging of materials from the bed of any navigable water." Examples of works are dams, bridges, weirs, causeways, aerial cables, ferry cables among many other types of structures that can meet the above definition. The CNWA also requires a Governor in Council exemption for any proposed prohibited activities (throwing or depositing of materials, dewatering of a navigable water body).

4.3.1.1 Prohibited activities

As per section 23(1) of the CNWA, it is prohibited to take any action that lowers the water level of a navigable water or any part of a navigable water to a level that extinguishes navigation for vessels of any class that navigate, or are likely to navigate, the navigable water in question. If the proponent plans to dewater a navigable waterbody, they must apply for a Governor In Council Exemption.

Transport Canada must determine navigability for the waterways within the footprint of a project that have proposed prohibited activities (dewatering or throwing/depositing). In order for Transport Canada to complete a navigation assessment in a timely and efficient manner, the department must develop a comprehensive understanding of its potential conduct in the project as early as possible. In determining whether a waterway is navigable, these questions are asked:

• What are the physical characteristics (e.g., size and depth)?
• Is it used for transport or travel for commercial or recreational purposes?
• Is it used for transport or travel by Indigenous peoples?
• Is it likely to be used in the future?
• Was it used in the past?
• Is there public access by land or water?
• Are there two or more waterfront owners?
• Is the Crown the only waterfront owner?

The proponent is responsible for providing the information to Transport Canada to facilitate the navigability assessment for any water bodies that have proposed prohibited activities. The proponent should note that Governor in Council Exemption can potentially take one to two years and it is therefore critical that this information be provided to Transport Canada as soon as possible.

4.3.1.2 Major works and in any navigable water

As per subsection 5(1) of the CNWA, owners of major works that may interfere with navigation are required to apply to Transport Canada. The following classes of works established in the Major Works Order are designated as likely to substantially interfere with navigation on any navigable water:

• water control structures;
• bridges;
• ferry cables, excluding the repair and replacement of existing ferry cables;
• causeways; and
• aquaculture facilities.

4.3.1.3 Works in navigable waters listed on the Schedule

The CNWA uses a list of waterways (known as "the Schedule") to identify navigable waters where project proponents must apply to Transport Canada for approval. The owner of a work – other than a minor work – in, on, over, under, through or across any navigable water that is listed in the Schedule, which may interfere with navigation, must apply to Transport Canada.

4.3.1.4 Works in navigable waters not listed on the Schedule

The owner of a work – other than a major work or a minor work – in, on, over, under, through or across any navigable water that is not listed on the Schedule, which may interfere with navigation, has the option to either:

• apply to the Minister of Transport; or
• seek authorization through the public resolution process.

The owner of a work – other than a major work or a minor work – in, on, over, under, through or across any navigable water that is not listed on the Schedule, which is not likely to interfere with navigation, may proceed if:

• the work, or its construction, placement, alteration, rebuilding, removal or decommissioning, would not interfere with navigation; and
• the owner deposits information and publishes a public notice before beginning the construction, placement, alteration, rebuilding, removal or decommissioning of the work.

4.3.2 Regulatory process

4.3.2.1 Application submission for works

There are different requirements for owners of works regarding approvals, deposit of information and public notice depending on the type of work, and if the work is located on a navigable water listed on the Schedule. With any application to Transport Canada, the owner is required to deposit information on the proposed work, and to invite interested persons to provide written comments on the owner's proposal to the Minister within 30 days after publication of the notice, or within any other period specified by the Minister. For works that do not interfere with navigation, the owner is required to deposit information on Transport Canada's registry and publish a public notice (a 30 day comment period is not required).

The application process is done online through Transport Canada's External Submission Site. The submission timing depends on the proponent who should consider their operational needs and the time required to process the application. The proponent shall describe the proposed work that could affect navigation and potential alternatives and mitigation strategies to ensure continued navigability.

The minimum information needed to apply for an approval is:

• a completed Application for Approval;
• a map showing the work's exact project location;
• the legal site description and position of the work in latitude and longitude;
• the plan view drawings (top down) with all related dimensions;
• the profile view drawings (side view) with all related dimensions;
• the general arrangement drawing (depicting new and entire existing work);
• a detailed project description;
• the construction methodology explaining how the work will be done; and
• the expected start and end dates.

4.3.2.2 Application analysis and consultation

Transport Canada analyzes the application to see if the file is complete and if the work will have an impact on navigation. Transport Canada may conduct a site visit and may request additional information.

Should Transport Canada have a role in the Project and it is determined that there will be the potential for adverse impacts to section 35 Aboriginal and/or Treaty rights as a result of Transport Canada's Crown Conduct, the department will consult with Indigenous communities. Where possible, consultation activities will be coordinated with other departments, ministries, and the proponent to streamline the consultation process. Information may be provided by the proponent or by Indigenous communities, if possible, as part of the federal impact assessment process. If information is missing or coordination of consultation is not feasible, Transport Canada will consult independently with Indigenous communities to address questions or concerns related to Transport Canada's role in the Project.

Before issuing an approval, the Navigation Protection Program is required by law to consider the following assessment factors:

• the characteristics of the navigable water in question;
• the safety of navigation in that navigable water;
• the current or anticipated navigation in that navigable water;
• the impact of the work on navigation, including as a result of its construction, placement, alteration, rebuilding, removal, decommissioning, repair, maintenance, operation or use (this includes impacts of construction methodology, including temporary works, on navigation);
• the impact of the work, in combination with other works, on navigation, if the Minister is provided with, or has in his or her possession, information relating to that cumulative impact;
• any Indigenous Knowledge that has been provided to the Minister;
• any comments that the Minister receives from interested persons within the period provided for under subsection 7(4);
• the record of compliance of the owner under CNWA; and
• any other information or factor that he or she considers relevant.

4.3.2.3 Regulatory decision

If the Project proposes a Prohibited Activity (dewatering of a navigable waterbody, throwing or depositing of materials), the proponent must submit an Application for a Governor in Council Exemption. The Exemption process can take one to two years from submission of the completed Application for Exemption. The timeline is subject to the processes and requirements of the Governor in Council and is independent of the Impact Assessment Act. If the Project proposes to construct, place, alter, rebuild, remove or decommission a work in, on, over, under, through or across any navigable water, the works will be subject to the CNWA and may require approval by the Minister of Transport.

The Minister of Transport issues terms and conditions with the approval of a work to mitigate navigation safety risks and protect the public right to navigation.

4.3.3 References

Canadian Navigable Waters Act https://www.tc.gc.ca/eng/canadian-navigable-waters-act.html

Guide to the Navigation Protection Program's Notification, Application and Review Requirements https://tc.canada.ca/en/programs/guide-navigation-protection-program-s-notification-application-review-requirements

Apply to the Navigation Protection Program https://tc.canada.ca/en/marine/apply-npp

Navigation Protection Program External Submission Site https://npp-submissions-demandes-ppn.tc.canada.ca/

4.3.4 Contact information

For more detailed guidance on the CNWA approval process, please contact the Transport Canada regional office:

Navigation Protection Program
Transport Canada, Marine Office
100 South Front Street, 1st Floor
Sarnia ON N7T 2M4
Phone: 519-383-1863
Fax: 519-383-1989
Email: NPPONT-PPNONT@tc.gc.ca

5. Interpretation

This Permitting Plan is not a legal document and does not change any existing federal, provincial, or Indigenous legislative or regulatory jurisdiction, right, power, privilege, prerogative or immunity by virtue, nor does it create any new legal powers, duties or legally binding obligations.

6. Contact information

The Agency office designated for administering the impact assessment of the Project is:

Crawford Nickel Project
Impact Assessment Agency of Canada
Ontario Regional office
Email: Crawford@iaac-aeic.gc.ca

7. Summary table – anticipated regulatory activities

The proponent is strongly encouraged to submit applications in accordance with regulatory timelines outlined in section 4 above. Timely submission of applications and information by the proponent would promote greater efficiency in meeting federal regulatory requirements that would require decisions following an impact assessment decision.