IAMGOLD CORPORATION - Approval for variance from the Liquid Fuels Handling Code

Background Information

The Iamgold Cote Gold Project is located adjacent to Highway 144 and Highway 560 near

Gogama, ON. Construction of the new $1.3B open pit mine commenced in late fall 2020 and is

expected to create more than 1000 jobs and take approximately 3 years to complete. Once

constructed, the mine will produce nearly 370,000 ounces of gold per year, employing

approximately 450 people.

Several contractors have been hired to

perform the earthworks and civil preparation at site. These activities require a significant

amount of fuel to support the excavating and haulage equipment. Due to the scale of the

earthworks and mining activity, fuel handling facilities will be developed in several phases to

efficiently supply operations.

Please note items numbered 1 and 2, respectively, correspond to the numbered items under each subheading.

Liquid Fuels Handling Code (LFHC) Requirements that Would Not be Met:

1. 1.3.1. Equipment installed at a facility or on a highway tank shall be approved and installed in accordance with the requirements of this Code and the manufacturer’s instructions and shall be appropriate for the service for which it is intended.

2. 5.6.1.10. All bulk plants shall be designed with an oil/water separator, acceptable to the Ministry of the Environment and Climate Change.

Reason why Abovementioned Code Requirements Would Not be Met:

1. Although not approved by Underwriters Laboratories of Canada (ULC), the FloMax nozzle is ideal for use at mines because of its high flow rate and special dry-break connection that is designed to fit mining equipment. 

2. The new fuelling facility is only intended to remain in service until Spring 2021 while land areas are prepared for mine infrastructure. The ground in the proposed area is already frozen and will likely remain so until approximately mid-late May. During the required in-service period for the proposed temporary facility, an oil water separator would not function during the winter operations when pumps and piping would remain frozen.  The operation of a separator system within the mining environment is also problematic due to the amount of dirt / solids that will fall from trucks, and then enter and congest the system.

Equivalent Safety Methods:

1. FloMAX FNBL nozzle:

The fleet of mining equipment is manufactured by Caterpillar and is equipped with 1.5-inch dry-break style connections (‘dry-break style’ describes a hose connection device type that provides an automatic mechanism to seal off both the hose and the fixed pipe end when the hose is disconnected) suitable for use with FloMAX nozzles. The fill system is designed by Caterpillar so that the nozzle will stop automatically when the tank reaches its intended fill level. This is a standard fill system used by major construction/mining equipment manufacturers around the world. Fill connections for these tanks are located below the top of the tank at a safe and convenient height for the operator. There are no alternative fill locations or fill methods for these fuel tanks.

The FloMAX nozzle has a flow rate of up to 150 GPM, which is compatible with the 1.5-inch dry-break style connections on mining equipment, compared to a flow rate of approximately 60 GPM for conventional one-inch nozzles. Productivity is increased by reducing time spent refuelling equipment.

In support of Wood PLC’s request, the company has submitted the report below, signed by Andrew Gendre, P.Eng., comparing the FloMAX nozzle to the CAN/ULC-S620, the standard for hose nozzle valves for flammable and combustible liquids:

Section 4 ‐ Construction

Due to the design of the nozzle using a dry‐disconnect receiver instead of a spout and valve actuation interlock to this receiver, some requirements of section 4 do not apply (4.1.2, 4.1.3, 4.2.2, 4.2.4 and 4.2.5).

Section 5.5 – Moist Ammonia‐Air Stress Cracking Test

There are no brass components in the valve, so this section is not applicable.

Section 5.9.1 – Spout Weak Section Strength Test

Due to the design of this nozzle not having a spout, this section is not applicable. It is recommended to install a dry disconnect break away valve in the fuel hose the nozzle is installed on to mitigate damage and spilled fuel if a driver inadvertently drives away with the nozzle connected.

Section 5.10 – Release and Shut Off Test

Due to the bottom fill receiver mechanical connection design of the nozzle and receiver discussed above, this section does not apply.

Section 5.12 – Endurance Test

As per the letter from the manufacturer, testing has been completed to 10,000 cycles instead of 100,000 cycles. Most of these nozzles are installed in harsh environments and, as such, usually have damage requiring replacement before 100,000 cycles would be reached. These nozzles have been used successfully at mine sites all over the world for many years with no issues when installed and operated as per the manufacturer’s requirements.

Section 5.15, 5.16 – Accelerated Air Oven Aging Test & Tensile Strength and Ultimate Elongation

Testing was not performed; however, industry standard sealing elastomers (Viton B70, Nitrile 70 and Fluorosilicone) are used in the design of the valve. These materials have been tested and used successfully and extensively in industry with diesel fuel.

The report concludes that the FloMAX FNBL diesel fuel nozzle meets and exceeds the requirements and safety objectives listed in the CAN/ULC-S620:2016 standard.

It shall be noted that it is imperative that the equipment fuel tanks used with this nozzle must include either a pressurized shutoff vent system or non‐pressurized shutoff vent and valve system in good working order to use these nozzles safely.

It is also recommended to install a break away valve in the fuel hose which the nozzle will be installed on. This will mitigate damage and spilled fuel if a driver inadvertently drives away with the nozzle connected.

2. Oil/Water Separator:

Several features and risk mitigation measures exist to ensure that the refuelling of the mobile tanker can be performed safely without an oil water separator. These features are outlined below:

1. The storage tanks are being placed inside tertiary containment berms to retain minor spills which may occur during offloading.

2. During fuelling, the operator remains within approximately 2 meters of the fuel connection and emergency stop device. This allows for an immediate operator response, in the event of a concern. Even in the unlikely event of a component failure, operator response will be very rapid to avoid a significant spill.

3. The refueling connection is a double dry-break connection so that, upon disconnection, the contents from the truck and the fueling couplings are contained. It is a standard operating requirement that the operator place a containment pan under the fuel connection during the connection, fueling process, and disconnection of the truck. Any minor drips or spills during the connection process will be captured before reaching the ground in the fueling lane.

4. Fuel tanker overfill prevention will be ensured using a Scully Intellitrol system which is interlocked to ensure that the vehicle cannot be inadvertently overfilled. This equipment is the same as and meets the safety standards of fuel transfer equipment at major distribution terminals. Since the fueling trucks may not be fully emptied before they return to be loaded, an additional level of spill containment is being recommended, in the event of a spill.  To provide additional tertiary containment against spills, the trucks will be positioned in a fueling lane when being loaded.  This granular capped lane (approx. 16 ft W x 45 ft L) will be contained by a Petrogard VI fuel resistant liner (an engineered fabric that is compatible with petroleum product and is used in the industry to line dikes) with raised sides.  The entrance/exit of the lane will be protected by fuel absorbent booms when the fuel trucks are being refilled.

5. The fuel facility is equipped with numerous global emergency stop devices (situated at all fueling locations) to immediately stop the flow of ALL fuel, in the event of a leak or spill.  During the tanker refueling process, the operator procedure requires that the driver will remain in attendance at the fuel connection point which is within approx. 2 metres of an emergency stop device. This proximity will help ensure that the equipment can be immediately shut down to prevent any significant spill during the tanker refueling process.

6. The fuel facility is equipped with a readily accessible spill containment kit, in the event of a leak or spill.