Executive Summary: Dillon Consulting Limited

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DILLON CONSULTING LIMITED

EXECUTIVE SUMMARY

Dillon Consulting Limited was retained by the Department of Indian and Northern Affairs Canada
(DIAND) to assess and prepare a report on the current market, technology and feasibility for managing
arsenic trioxide currently stored underground at the Giant Mine site in Yellowknife. The report is not
intended to be a detailed assessment but is to provide indications of current technologies, first order
estimates and initial economic requirements for the Departments planning purposes.

Information was obtained from several sources. The Internet was a primary source for initial
information pertaining to companies handling arsenic trioxide in some capacity which then directed
further inquiries. Information accuracy was confirmed by contacting named companies directly and by
cross checking with government databases. The U.S. Geological Survey Web site contained a large
quantity of current information regarding the economics, usage and the outlook for arsenic as a
marketable commodity. The Economics of Arsenic, 1990 edition, published by Roskill Information
Services in the UK was another useful source of data for all aspects of arsenic trioxide usage.
Technical information on the processing and handling of arsenic trioxide was extracted from case
studies and scientific reports authored by various groups.

The prospect of selling arsenic trioxide on the open market looks hopeful. Arsenic trioxide has been
used for many purposes in the past including: agricultural chemicals (pesticides and herbicides), wood
preservatives, glass manufacturing and metal alloys. Environmental concerns have reduced the use of
arsenic trioxide in all sectors with the exception of wood preservatives. Three wood preservative
companies: Hickson Corp., Osmose Corp. and CSI all located in the United States have the capability
to accept large, continuous shipments of arsenic trioxide from Giant. All three companies expressed
some interest in the product during information inquires. Hickson Corp. received approximately
20,000 tons of crude arsenic trioxide in the 1980's from Giant and were interested in the results of
Giant’s research into upgrading the crude material. This interest has been renewed in the past year
with intermittent correspondence. Osmose Corp. received arsenic trioxide from Miramar Con Mine,
Yellowknife, NT., treatment plant until about 1990. CSI has not had dealings with mines in the NWT
but expressed interest. All three companies would require the crude product in Giant's storage vaults
be upgraded to a minimum of 95% arsenic trioxide and a number of other impurities (particularly
antimony and iron) would have to be reduced before it would be considered as an acceptable product.
The electronics Industry has an increasing market for pure arsenic metal, but only uses small volumes
of product and requires very high purity of the material, 99.9999%, making it an unlikely target market
for the material stored by Giant.

The stored arsenic trioxide would have to be upgraded to a minimum of 95% before being widely
marketable. Purities of 99% or higher would command a better price. Two purification methods are
currently in common use, sublimation and solvent extraction. Sublimation involves a process of
heating the arsenic trioxide containing material to a high enough temperature sufficient to convert the
trioxide to a gaseous state. The gas is then passed through a series of condensers to produce a purified

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product. An alternate method uses hot water to dissolve the arsenic trioxide, leaving behind impurities.
The trioxide is then recrystallized as a product with at least 99% purity. Con Mine in Yellowknife
constructed a processing plant to purify arsenic trioxide from a tailings pond sludge using the hot water
leach method. The plant was in operation through the 1980's and successfully treated Con’s stockpiled
arsenic trioxide to produce 99.7% pure arsenic trioxide. The material was sold to Osmose Corp. in the
U.S.. The gold and silver present in the treatment residue were successfully reclaimed, contributing to
the economic success of the plant.

Approximately 137,000 ounces of gold are believed to be present in the baghouse dust kept in the
arsenic trioxide storage vaults at Giant Mine. Several metallurgical processes have been developed to
recover precious metal values from mine wastes containing high levels of arsenic. Con Mine
successfully developed a method to extract gold and silver from the residue produced in the arsenic
trioxide treatment plant. Rough calculations suggest that removing the arsenic trioxide would leave a
gold concentration in the dust greater than that currently being mined by Giant. Economic factors
suggest that any attempt to purify the arsenic trioxide for sale should probably include recovery of the
gold contained in the dust.

Accessing and conveying the material to the surface for processing would require careful design to
minimize health and environmental hazards. The primary concern would be the generation of dust.
Inhalation of the arsenic or absorption through the skin can be fatal. The recovery of arsenic will
present a number of technological challenges because, while Giant has considerable experience placing
the arsenic trioxide underground, it has not moved or recovered significant material. A small quantity
of material was successfully accessed in the 1980's and sent to the U.S. for sale and testing.

A number of technologies and methods are available to complete on-site treatment of the material to
render it environmentally inert. The most environmentally stable form of arsenic is as a ferric arsenate.
Arsenic naturally occurs in this form. The cost of converting arsenic trioxide into ferric arsenates can
be high as a molar ratio of 3 or 4:1 iron to arsenic is required. The conversion is carried out in an
autoclave as the process requires temperatures of 130-140EC and a pressure of 100 psi. A process
under development at McGill University will use ratios of 1.1:1 iron to arsenic. Iron arsenate sulphate
hydroxy compounds are another stable arsenic form produced in an autoclave but they also require a
large amount of iron and some sulphur. Arsenic sulphates can be produced in a roaster and are
considered stable enough for long term disposal. A pilot scale process has been developed to produce
arsenic sulphide in a bioreactor with an efficiency rate six times that of chemical means. Conversion of
the waste to calcium arsenate is no longer considered a suitable disposal method as the calcium reacts
with CO2 in the atmosphere to form calcium carbonate, thereby releasing the arsenic into the
environment. A potentially low cost method for on-site disposal may be to combine the arsenic trioxide
with a chemical cement to produce a hardened product. In some instances the cement may be reusable
for structural purposes, eg. road beds. The substances produced from any of these processes could be
disposed of safely in tailings ponds.

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Off-site treatment or disposal options appear to be quite costly, with initial estimates in excess of 750
$/ton. The amount of material to be disposed of and the resultant cost make this option unlikely.

The problem of handling large amounts of arsenic trioxide appeared in most literature regarding
precious metal mines. Several case studies were obtained discussing options for disposing of arsenic
trioxide and have been included in Appendix H of this report. The most pertinent study was carried
out by Nerco Con Mine and outlines the methods used to dispose of a large amount of arsenic trioxide
in an economically and environmentally acceptable manner. Giant has also studied the options for
marketing the arsenic trioxide and has produced a number of reports detailing the technological
requirements to handle and process the waste material. Copies of these reports were not obtained but
would provide specific information on the Giant Mine case.

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1.0 INTRODUCTION

Giant Mine in Yellowknife, NT processes refractory ores using roaster technology. After 40 years of
mine operation a significant amount of material has accumulated as a by-product of the roasting
process. An average of 78% of this material is arsenic trioxide. Arsenic trioxide is a highly toxic
material which must be carefully managed. Dillon Consulting Limited was retained by the Department
of Indian and Northern Affairs (DIAND) to assess and prepare a report on the current market,
technology and feasibility for managing the arsenic trioxide currently stored in underground vaults on
the mine site.

This report is not intended to be a detailed assessment of arsenic trioxide management options rather, it
has been prepared to provide an indication of current technologies, first order estimates, and initial
economic requirements for Departmental planning purposes.

1.1 Scope of Work

The specific areas of interest that were researched for this report, as outlined in the terms of reference
(TOR), included the following:

1) current market and conditions for the product in its' raw state and as an upgraded/refined
material. This includes a list of the known producers, similar sources and industrial users.
Any future known trends should be identified if they may affect the market (ie: changes in its
use in the wood preservative industry). This should include an economic review including the
material value versus the cost of getting it to market.

2) technology, requirements and feasibility to upgrade the product to the market standards.

3) current technology, markets and feasibility of processing the material to recover additional
products. (ie: gold)

4) technology, requirements and feasibility of accessing and conveying the material to surface or
otherwise gaining access to it for management purposes.

5) current technologies and feasibility available to process the material on-site to render it
environmentally inert and unavailable (ie: solidification, encapsulation, autoclave, etc.). This
should include utilizing the Con autoclave or other similar technology.

6) current companies, approved facilities and locations that can accept the material for on or off-
site management/treatment/ disposal.

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7) current technology and feasibility of long term surface storage.

8) any other management options which may be available or emerging

9) provide information on relevant projects, pilot projects, parallel or applicable projects &
technologies, case studies, experts, references or standards/legislation the contractor may
obtain during their work.

The above assessments should address any residual waste byproducts resulting from on-site
processing.

1.2 Background

Arsenic is a naturally occurring substance that is found most often in compounds with sulphur, either
alone or in combination with various metals (eg. arsenopyrites). It is recovered as a by-product of
processing certain ores where the primary product is copper, lead, zinc, gold and/or silver. Royal
Oak's Giant Mine, a gold producing mine located in Yellowknife, NT., produces arsenic mainly as
arsenic trioxide through the roasting process of arsenic gold ores.

Since the 1950's, the arsenic trioxide generated at Giant Mine has been stored in underground
chambers. During the late 1970's research and development was carried out by at Giant to produce a
marketable grade of arsenic trioxide and as a result a pilot plant was built. In 1980, Giant Yellowknife
signed a contract with a U.S. consumer to sell their raw arsenic trioxide product, resulting in the
construction of a storage silo and truck load out facility. (Roskill, 1990)

In 1987, shipments and sales of arsenic trioxide from Giant stopped and a research programme was
initiated to upgrade the arsenic trioxide to produce a more marketable product. A decision was
expected by the end of 1989 concerning production from the project and a start-up date was tentatively
set for January 1991 (Roskill, 1990). Shifting priorities after the purchase of Giant by Royal Oak put
this project on hold (1991 Canadian Minerals Yearbook, Pg. 9.1).

Currently, Giant Mine has accumulated approximately 260,000 tons of baghouse dust.

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2.0 METHODOLOGY

A literature search of available sources was carried out to determine options available for the disposal
of large amounts of crude arsenic trioxide mine waste as specified in the Scope of Work. An Internet
search was conducted for "arsenic trioxide" using all of the available search engines. A number of
subsequent searches were carried out using key words to narrow down the returned information fields.
Information gained from sites located through these searches served as the basis for further searches of
libraries both on and off the "net", and provided the contact numbers for companies and agencies that
dealt with arsenic trioxide in some capacity. Companies and government agencies were contacted
directly and information relating to arsenic trioxide was gathered over the phone or by fax. Individuals
contacted often provided information on additional sources that were then utilized. The information
obtained through personal communications has been reported directly. The opinions expressed are
those of the people contacted.

An abridged set of Appendices has been included with this report. All appendix references prefixed by
a 1(eg. App. 1-B) can be found in this set. Another more comprehensive set of appendices has been
produced as a separate document. All appendix references prefixed with a 2 can be found in this
document. Appendix references without a prefix can be found in both appendices.

2.1 Sources

A number of different sources were used during the information search including the Internet,
government personnel, industry and an assortment of libraries. The major sources of information used
were:

C The "Internet". Searches were carried out using available search engines for "arsenic trioxide"
and variations such as "arsenic trioxide - remediation".

C Chemical and wood preservative manufacturers

C Roskill Information Services, The Economics of Arsenic, 1990

C U.S. Geological Survey - Minerals Information Sheets, 1995-1996

C U.S. Geological Survey - Mineral Commodity Summary, February 1997

C Canadian Minerals Yearbook, 1991

C Mines and Minerals Activities, 1993

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C Natural Resources Canada Minerals and Metals Sector, On-line Information

C Statistics Canada, On-line Trade Query

C Canadian Institute of Treated Wood

C The Legislative Assembly Branch Library, Yellowknife, NT

C The NRC Library, Vancouver, BC

C The Natural Resources Library, Ottawa, ON

C Natural Resources Canada - CANMET

C DIAND Environmental Library

C Canada-NWT Business Centre

C Environment Canada

C Department of Resources, Wildlife and Economic Development

C Canadian Intellectual Property Office

C Environmental disposal companies

C Waste remediation companies

C Workers Compensation Board

C Department of Safety and Public Services

C Industry Canada

C U.S. Department of Commerce, National Technical Information Service

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3.0 DATA COMPILATION

The information presented in this section has been taken directly from the literature or from personal
communications with various individuals from within the industry or knowledgeable about arsenic
trioxide. This information has been placed in point form to present individual pieces of data for
consideration by the reader. References following each point reflects the document being quoted as
indicated by each header.

3.1 Economics

Arsenic trioxide is used in a number of different products including wood preservatives, glass
manufacturing, agricultural chemicals and nonferrous alloys. Of these, the wood preservative industry
accounts for 90% of all arsenic based products consumed in the U.S. (U.S.G.S., Mineral Commodities
Summaries, Pg. 1). The wood preservative industry has shown steady growth in its’ use of arsenic
trioxide whereas other end users have shown a steady decline. (Roskill, Pg. ii). The market research
therefore focused on the wood preservative industry and the inorganic chemical supply industry as
being the most likely markets for the by-product stored by Giant. In order to assess the marketability
of the arsenic trioxide in Giant’s storage vaults, a number of wood preservative and chemical
companies were contacted. These companies are listed in the table below.

COMPANY COMPANY TYPE COMMENTS

BDH Chemicals Canada, Ltd. Chemical No longer distribute arsenic trioxide.

All Chemie, Ltd. Chemical Purchase ultra-high purity material.

Transene Co., Inc. Chemical Purchase high purity and small quantities.

Wego Chemical and Mineral Corp. Chemical Interested, but depends on purity.

Canaimex, Inc. Import/Export Importer/exporter.

Amalgamet Canada Chemical Distributor for French supplier.

Spectrum Bulk Chemicals Chemical Lab grade, 99% or higher.

Great Western Inorganics, Inc. Chemical Manufacturer of arsenic trioxide.

Hickson, Inc. Chemical/Wood Preservative Major wood preservative manufacturer.

Chemical Specialties, Inc. Chemical/Wood Preservative Major wood preservative manufacturer.

Osmose, Inc. Chemical/Wood Preservative Major wood preservative manufacturer.

Diachem Industries, Inc. Wood Preserving No longer use arsenic.

Napier International Tech., Inc. Wood Preserving No longer use arsenic.

Pierce and Stevens Canada, Inc. Wood Preserving No longer use arsenic.

Chem-Craft Wood Preserving Do not use arsenic.

Solignum, Inc. Wood Preserving No longer use arsenic.

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Korzite Coatings Wood Preserving Do not use arsenic.

Each of the companies contacted identified their requirements of a useable arsenic trioxide product.
These requirements are as follows:

All Chemie, Ltd.


Fort Lee, NJ
Products: As - metal, As 2S5, As2O5, As2O3, As2S3.

C Distributor of ultra-high purity material, 99.99% or higher. (Pers. Com. 1997)

Transene Co., Ltd.


Rowley, Ma
Products: As 2O5, As2O3.

C Purchaser of high purity material, greater than 99% and in small quantities for use in the
electronics industry. (Pers. Com., August 08, 1997)

Wego Chemical and Mineral Corp.


Great Neck, NY
Products: inorganic chemicals.

C Purchase product with a purity of 99% at a minimum. Product is obtained from China. (Pers.
Com., August 01, 1997)

Canaimex, Inc.
Montreal, PQ

C Import/export company that does not use the product themselves but would transport it to
markets. (Pers. Com., August 07, 1997)

Amalgamate Canada
Toronto, ON

C Distributor for an arsenic trioxide producer in France. Distribute arsenic trioxide in purities of
98.5% or greater. (Pers. Com., August 05, 1997)

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Spectrum Bulk Chemicals


New Brunswick, NJ
Products: As - metal, As 2O5, As2O3.

C Distributor of lab grade quality material, and in relatively small quantities. (Pers. Com., August
01, 1997)

Great Western Inorganics, Inc.


Arvada, CO
Products: arsenic acid, arsenic disulphide, As 2S5, As2O5, AsBr3, AsCl3, AsI3, As2O3, As2S3, arsenic
triselenide.

C Manufacturer of arsenic trioxide but not a user. (Pers. Com., August 14, 1997)

Hickson, Inc.
Conley, GA
Products: wood preservative, including CCA.

C Manufacturer of arsenical wood preservatives.


C Accepted delivery of approximately 20,000 tons of arsenic trioxide from Giant in the 1980's.
C Operate the largest arsenic acid plant in the world.
C Feedstock specifications are: 95% arsenic trioxide, <400 ppm iron, <1,000 ppm lead and <100
ppm chloride. (Pers. Com. 1997)

Chemical Specialties, Inc.


Harrisburg, NC
Products: wood preservatives, including CCA.

C Manufacturer of a line of products for use in the wood preservative industry, primarily CCA.
C Purchase in excess of 10 MM lbs. of arsenic trioxide from several countries around the world
in bulk bags of 1.0 or 1.7 metric tons.
C Process arsenic trioxide into arsenic acid at their Harrisburg, NC facility.
C Plant feedstock requirements are: 95-99% arsenic trioxide, 500-5,000 ppm iron, 0.5-1.0%
antimony, <300 ppm mercury, <100 ppm chloride, <0.5% water. (Pers. Com. August 12,
1997)

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Osmose Inc.
Memphis, TN
Products: wood preservatives, including CCA.

C Purchased arsenic trioxide from Con mine until approximately 1990.


C Manufacture arsenical wood preservatives, specifically CCA.
C Feedstock requirements are: 99% arsenic trioxide, <0.02% iron, <0.02% lead and <0.01%
chloride. (Pers. Com. August 14, 1997)

In addition to contacting companies that handle arsenic trioxide, several referenced sources were
consulted to determine the current market conditions for the product, producers, similar sources,
industrial users and trends in the market. These are as follows:

Roskill Information Services, The Economics of Arsenic, 1990

C Arsenic trioxide accounts for 97% of world arsenic production. World production was
estimated at 54,800 tons in 1987, up from 40,000 tons per year in the late 1970's but less than
peak levels of 70,000 tons per year in the late 1960's. Over the years the arsenic industry has
increasingly been affected by environmental factors, particularly in the USA and Western
Europe where the actions of environmental organizations have curtailed some operations. This
has likely added to the potential supply of arsenic being much greater than the demand.

C A treatment plant at Giant Mine in the N.W.T. has produced raw arsenic trioxide as a by-
product from their gold roaster unit. Between 1979 and 1980, research was carried out on
producing a marketable grade of trioxide and a pilot plant was built. In 1980, Giant signed a
contract with a U.S. consumer to sell their raw trioxide production, and construction work was
started on a storage silo and truck load out facility. The construction work was completed in
early 1981, and 1,093 tonnes of raw arsenic trioxide were shipped to the U.S. consumer during
the year. In 1987, shipments and sales of arsenic trioxide stopped and a research programme
was initiated to upgrade the arsenic trioxide in order to produce a more saleable product. A
decision was expected by the end of 1989 concerning production from a gold/arsenite project
in Yellowknife, NWT, and a start-up date set for January 1991. The plant was to produce
approximately 8,000 tonnes/year of arsenic trioxide and 2,000 ounces/year of gold. The
project would only proceed if a market could have been secured for at least half of the planned
arsenic production.

C The sales of arsenic trioxide from Giant Mine between 1981 and 1987 were:

Year Volume (tons)

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1981 1,093
1982 1,361
1983 726
1984 1,119
1985 2,055
1986 368
1987 ---

C Campbell Red Lake Mine in Ontario has a production capacity of 1,360 tons of arsenic trioxide
per annum. In both 1985 and 1986, they produced approximately 1,270 tons of arsenic. The
principal use of the arsenic is in wood preservatives. All arsenic is exported, mainly to the
USA.

C Cominco opened a new US $13 million arsenic recovery plant at the Con Mine in the N.W.T.
in late 1983. Feed for the plant came from a 65,000 ton stockpile accumulated over 25 years
prior to 1970. Building of the plant had been prompted by a directive from the NWT Water
Board to Cominco in which they were requested to find the best way of disposing the
stockpile, which was determined to be a potential environmental hazard. Stabilization and
permanent impoundment of the sludge had been rejected as unacceptable to future
generations, and wasteful of the contained gold, silver and arsenic values. The 5,000 tpd
capacity plant was scheduled to process 32 tpd of sludge in order to produce 15 tpd of arsenic
trioxide with a purity of 99.5% arsenic trioxide together with gold and silver. Most of the
trioxide output was shipped throughout North America for wood preservative and agricultural
chemical end uses.

C Cominco Ltd. also operated an integrated smelter and refining complex at Trail, BC. An
arsenic pentoxide solution was produced there as a by-product of other metallurgical operations
until January 1989 when Cominco’s Electronic Materials Division was bought by the Johnson
Matthey Corporation. Arsenic trioxide is no longer produced.

C Equity Silver Mines Ltd. of British Columbia produced calcium arsenate which was disposed
of in the U.S. Currently they are mining a grade of ore with a very low arsenic content and
are not producing arsenic products.

C Environmental pressure groups and organizations have fought for thorough investigations of
the toxicities of arsenic compounds and, where applicable, have paved the way for appropriate
legislation to minimize the exposure of individuals to toxic arsenic compounds.

C In June 1984 the US Environmental Protection Agency issued a rule restricting the use of three
major types of wood preservatives: creosote, inorganic arsenical and pentachlorophenol. This
measure:

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a) prohibited consumer sales of wood treatment products containing these chemicals:


manufacturers would be required to label their products for trade use only, (although
consumer sales are a very small part of the total market).

b) required new protective measures for staff in wood treatment plants. In 1986, OSHA
announced an industry assistance programme to help plants monitor arsenic levels as
required by law. If the arsenic level is higher than 10 micrograms per cubic meter of
air, operators will be required to wear respirators.

c) proposed a new consumer awareness programme for consumers of treated timbers


(with the long-term sanction that if the industry cannot organize it, the EPA may
require the labelling of all such timber). This aspect of the rule was upheld by a
Federal judge in mid-1985.

d) required a reduction in the hexachlorobenzene and hexachlorinated


dibenzodioxin contamination found in pentachlorophenol.

e) prohibited the use indoors, with some exceptions, of wood products treated
with pentachlorophenol or creosote, unless the wood is subsequently sealed
with varnish or shellac. (Pp. 140-141)

C The EPA decided that all three of these wood preservatives exceeded the agency’s risk criteria
for cancer-causing potential, but it was decided not to seek a ban because of the great benefits
wood preservatives give to society. If an alternative preservative without the same risks could
be developed, the risk/benefit balance may change and there may be cause to ban these
preservatives.

C Work has been done to find alternatives to arsenic in current preservatives with less toxic
elements such as zinc, fluorine, chlorine and boron.

Statistics on the lumber industry and associated arsenic trioxide trade numbers and costs are found in
Appendix B of this Report.

C Markets for CCA treated lumber market sector. Table 1

C Comparison of wood treatment costs. Table 2

C Imports of arsenic trioxide and pentoxide and acids by major trading countries, 1984 -1987.
Table 3

C Europe and the USA: Arsenic trioxide prices, 1976 to 1989. Table 4

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U.S. Geological Survey - Minerals Information, 1996

C The U.S. was the world’s largest consumer of arsenic in 1996, accounting for about two-thirds
of world demand.

C On a contained metal basis, arsenic trioxide accounted for 99% of American imports in 1996.

C China is the world’s largest producer of both arsenic trioxide and arsenic metal accounting for
44% and 84% respectively of American imports.

C Overall consumption of arsenic remained relatively unchanged in 1997, for the third straight
year.

C Arsenic trioxide was consumed in the production of arsenic acid for formulation of CCA by the
three principal producers of arsenical wood preservatives in the U.S.: Hickson Corp., Conley,
GA; CSI, Harrisburg, NC and Osmose Corp., Memphis, TN. The wood preservative industry
accounts for 90% of total arsenic demand.

C With the major market for arsenic being the production of arsenical wood preservatives, the
demand for arsenic is closely tied to the home construction market, where wooden decks
containing arsenical preservatives have become ubiquitous.

C In 1988 about 450 million cubic feet of wood were treated with waterborne preservatives
(98% estimated to be CCA). In 1984, 300 million cubic feet were treated. In 1994, 500
million cubic feet were treated and in 1995 450 million cubic feet were treated. In 1995,
waterborne preservatives were used for about 75% of all treated lumber.

C The apparent demand for arsenic trioxide in wood preservative declined slightly in 1996
despite an increase in housing starts. Restocking by wood preservative manufacturers and
carry-over from the 13% housing growth in housing starts in 1994 may have served to boost
the apparent demand in 1995.

C Future demand for arsenic is expected to closely follow that for new home construction,
although the replacement and renovation markets could increase as a percentage of total
market share. The prohibition on use of CCA preservatives in certain applications and the
greater acceptance of alternative preservatives could negatively affect this demand.

C Arsenic consumed in agricultural uses continued to decline following the EPA’s 1993
cancellation of arsenic acid for use as a cotton desiccant.

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C The average customs value for imported arsenic trioxide in 1996 was 22 cents per pound,
down approximately 2 cents per pound from that of 1995. Prices for high-grade (minimum
99%) arsenic trioxide generally are quoted at an 8 to 12 cent per pound premium to low-grade
(minimum 95%) arsenic trioxide.

C Commercial-grade arsenic trioxide is recovered from the smelting or roasting of nonferrous


metal ores or concentrates in at least 18 countries.

C Although environmental pressures may continue to cause curtailment of existing capacity,


given the abundance of high-arsenic residues from nonferrous metal processing, world supplies
of arsenic trioxide are expected to remain adequate to meet projected need. The following
Economic tables have been duplicated and are provided in Appendix II-B of this Report.

Arsenic Supply-Demand Relationships. Table 5

U.S. Imports for Consumption of Arsenical. Table 6

Arsenic Trioxide: World Production, By Country. Table 7

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U.S. Geological Survey - Minerals Information, 1994

C In 1994 local and state concern over the toxicity of chromated copper arsenate (CCA) wood
preservatives led to State restriction on their use in certain applications. Responding to the
concern that CCA could leach from timbers and accumulate in invertebrate marine life, New
Jersey became the first State to restrict their use in certain marine applications. Effective July
19 1994, restrictions on the use of CCA pressure-treated wood were imposed along four rivers
that are rich in shellfish. Accordingly, CCA treated wood will be prohibited in the construction
of new or rebuilt marine structures at marinas containing slips for five or more boats.
However, in recognition of a lack of alternative materials, pilings were exempt from the ban.
Alternative materials for planking include plastic lumbers and South American hardwood.

C Mexican trioxide has the advantage of bulk shipping via rail cars allowing consumers to avoid
having to handle and dispose of contaminated drums.

U.S. Geological Survey, Mineral Commodity Summaries, February 1997

C The total value of arsenic metal and compounds consumed in was estimated at $20 million.

C A recently developed alternative, ammoniacal copper quaternary, which avoids using chrome
and arsenic, has yet to gain widespread usage. Non-wood alternatives such as concrete, steel
or plastic lumber may be substituted in some applications for treated wood. A South American
hardwood, ipe, which requires no chemical treatment, has been used in some localities in
ocean front boardwalks.

C Salient Statistics - for the U.S. are provided in Table 8 of Appendix II-B of this Report.

Canadian Minerals Yearbook, 1991

C Approximately 40 tonnes of stockpiled arsenic trioxide material from Giant was shipped to the
U.S. for testing.

C Recovery technology includes the electrostatic precipitation of dust, cooling of the arsenic
containing gases, and collection of arsenic trioxide in the baghouse which grades 85 to 93%.

C Since the Royal Oak takeover, Giant’s White arsenic oxide (WAROX) plant project to treat
crude arsenic (currently 85% pure) to produce high-quality industrial product (99% pure) has
been placed on hold. This project would involve using sintered metal technology for
recovering arsenic pentoxide to be used in the wood preservative industry.

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C Arsenical wood preservatives are used wherever rot or insect damage may occur, such as in
building foundations, fence posts, submerged footings and utility poles. Substitutes are
increasingly being found for most of arsenic’s major end uses, although arsenic may be the
preferred material due to its lower cost and superior qualities.

C In September 1991, the Commission of the European Communities issued council directives
relating to restriction on the marketing and use of arsenic and its’ compounds. These include
prohibition of arsenic compounds for the following: prevention of fouling by micro-organisms,
plants or animals the hulls of boats; cages, floats, nets and any other appliances or equipment
used for fish or shellfish farming; any totally or partly submerged appliances or equipment; and
preservation of wood. The ban does not apply to solutions of inorganic salts of the CCA
(copper chromium arsenic) type employed in industrial installations using vacuum or pressure
to impregnate wood.

C The outlook for arsenic at this time seemed somewhat uncertain, although supplies are
abundant and demand is expected to remain relatively flat.

C Canadian Arsenic Production and Trade, 1989-1991 is provided in Table 9 of Appendix II-B.

Mines and Minerals Activities, 1993

C The Mineral Production of the Northwest Territories between 1984-1993 is provided in Table
9 of Appendix II-B.

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Natural Resources Canada Minerals and Metals Sector, On-line Information

C Canada consumed 125 tons of arsenic trioxide in 1991. Consumption data for 1992 to 1995
was considered confidential and therefore is not reported. Table 11 in Appendix II-B of this
Report provides further consumption statistics.

Statistics Canada, On-line Trade Query

C Statistics Canada provides statistics on both Canadian Exports and Imports which are provided
in Tables 12 & 13, respectively in Appendix II-B of this Report.

3.2 Arsenic Trioxide Market Processing

Several methods exist for processing crude arsenic trioxide into higher grade material. General
information on the sublimation process and the water extraction process was found in Roskill’s, The
Economics of Arsenic, 1990. Information on other processing technologies was found in patent
abstracts and in case studies. It is unknown whether the technologies described in the patents are in
use. The Con Mine and El Indio Mine case studies describe processes that are currently operating or
have successfully operated recently.

References has been made directly from the Patents and/or Patent holders therefore, these are named
and page referenced accordingly.

PATENT NUMBER PROCESS TYPE COMMENTS

Cdn. Patent No. 1314149 Evaporation into a gas stream. See abstract in appendix D.

U.S. Patent No. 3923478 Scrubbing of flue gas with aqueous solvent. Referenced in Cdn. Patent No. 1314149, deals with flue
gas having a high sulphur dioxide component.

U.S. Patent No. 4588564 Removal of arsenic trioxide from scrubbing Referenced in Cdn. Patent No. 1314194.
water.

U.S. Patent No. 4605812 Catalyzed removal of arsenic from gases. Referenced in Cdn. Patent No. 1314194.

U.S. Patent No. 4489046 Evaporation of arsenic trioxide in a furnace. Referenced in Cdn. Patent No. 1314194, could also be
used to recover gold values.

U.S. Patent No. 4244735 Caustic leach and crystallization. Referenced in Cdn. Patent No. 1314194, could also be
used to recover gold values and render arsenic inert.

Swiss Patent No. 273779 Evaporation and recrystallization of arsenic Referenced in Cdn. Patent No. 1314194.
trioxide.

German Reference No. Extraction using sulphuric acid. Referenced in Cdn. Patent No. 1314194.
131840

Con mine process Multi stage hot water leach. See Appendix I.

El-indio gold mine process Precipitation from flue gas. See Appendix I.

U.S. Bureau of Mines Sulphuric acid leaching. See Appendix 2-I.

Roskill Information Services, The Economics of Arsenic, 1990

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C The flue dusts from the roaster or smelter are collected by Cottrell Electrostatic precipitator;
combined with galena or pyrite to prevent arsenite formation, and then roasted so that the
arsenic trioxide is vaporized. The vapour passes through a series of condenser “kitchens”,
encountering progressively lower temperatures from 220BC to 100BC or less, and recondenses
to 90 to 95% pure arsenic trioxide. This material can then be purified further by resublimation
in a reverbatory furnace. From here the trioxide passes through another series of kitchens. In
those with a temperature of 120BC to 189BC, arsenic trioxide of 99% to 99.9% purity
condenses. The poorer grades from the other "kitchens" are either recycled or marketed as
crude arsenic trioxide of a minimum 95% purity.

C Arsenic trioxide can be separated from impurities by dissolution in water. Arsenic trioxide is
fairly soluble in water at temperatures approaching 100EC whereas its common impurities are
not. The arsenic trioxide solutions are separated from the insoluble impurities and vacuum
cooled to yield arsenic trioxide of at least 99% purity.

Canadian Patent No. 1314194


Patent Holder: Derka, Jaroslav R.

C The arsenic trioxide is evaporated into a non reactive carrier gas (eg. nitrogen) in a heated
chamber, a fluidized bed or an electrical plasma reactor. The arsenic trioxide is precipitated
from the gas into a fluidized bed of arsenic trioxide particles cooled by water evaporation. The
final size of the arsenic trioxide particle can be controlled. The material from which the arsenic
trioxide is removed can then be treated to remove valuable metal components (eg. gold).
(Derka, Jaroslav R., Pp. 5-15)

C Arsenic trioxide has a higher solubility in ammonia than in hot water and an ammonia leach
process can be used to purify arsenic trioxide. This process is not currently being used.
(Derka, Jaroslav R., Pg. 2)

U.S. Patent No. 3923478

C The arsenic trioxide is scrubbed from the 350-400BC roast gas using a (preferably aqueous)
solvent. The system is kept closed. The product is concentrated and crystallized out of the
solution. Any unwanted deposits formed are removed by dissolution in unsaturated arsenic
trioxide solution. By using systems in parallel and switching liquid flows, it is possible to run a
continuous process with minimal solid or liquid effluent. (Derka, Jaroslav R., Pp. 2-3)

U.S. Patent No. 4588564

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C Arsenic trioxide is recovered from flue gas scrubbing water. The crude arsenic trioxide crystals
collected are purified by treatment with 50-150 g/l hydrochloric acid at a temperature of less
than 30BC. (Derka, Jaroslav R., Pg. 3)

U.S. Patent No. 4605812

C Arsines are removed from a hydrocarbon or inert gas stream by contacting the stream with a
copper (II) chromate catalyst. (Derka, Jaroslav R., Pg. 3)

U.S. Patent No. 4489046

C The arsenic containing waste is melted under oxidizing conditions in a furnace forming an
oxide slag melt. Turbulence is caused in the melt while a reducing atmosphere is maintained to
support the formation of arsenic trioxide which is then driven off and recovered by
condensation. (Derka, Jaroslav R., Pp. 3-4)

U.S. Patent No. 4244735

C The arsenic is precipitated as an insoluble, non-polluting ferric-arsenic compound, carried


through a chloride leach step to recover metals in the waste and then disposed of. Alternately,
the arsenic can be recovered using a caustic leach and crystallization process. (Derka, Jaroslav
R., Pg. 4)

Swiss Patent No. 273779

C A mechanical process operating at 500-600BC and 0.5-1.0 mm of H2O vacuum is used to


evaporate arsenic trioxide from the waste product. The arsenic trioxide vapours are
recrystallized. (Derka, Jaroslav R., Pp. 4-5)

German Patent No. 131850

C Flue gases containing sulphur dioxide, arsenic trioxide, halides and dust are cleaned by washing
with a circulating sulphuric acid solution. The solution is adjusted to a very low concentration
of sulphuric acid to allow dissolution of the halides. The sulphuric acid solution is separated
and subjected to a vacuum evaporation to vaporize the halides and crystallize the arsenic
trioxide. (Derka, Jaroslav R., Pg. 5)

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The Con Mine Separation Process

C A two stage counter current leach at an operating temperature of 95EC is used to extract
arsenic trioxide from waste material. Hydrogen peroxide is added to enhance leach kinetics.
The crystallization liquor is thickened and filtered using powdered activated carbon to remove
crystallization modifiers and to enhance product purity. The hot pregnant liquor is passed
through four stages of evaporative cooling and crystallization in growth type units. The
crystallized product obtained is 99.8% pure arsenic trioxide. (Anthony, David H.; Pg. 140)

El-indio gold mine process

C Gases from the roaster are passed into an oxidation chamber with enough ambient air to allow
complete conversion of all sulphates to oxides. The oxidation temperature is 750EC. The gas
from this chamber is passed through a heat exchanger to cool it to 390±10EC. This cooled gas
is passed through two electrostatic precipitator to remove all particulate matter. The gas exiting
the precipitator at 300EC contains arsenic trioxide vapour and is rapidly cooled to 120EC in a
hatch chamber. The arsenic trioxide precipitated out of the gas in this step is collected in a
baghouse. The product collected has a purity of 97% to 97.5%. (Smith, E.H. and Parades,
Eduardo, Pp. 154-157)

U.S. Bureau of Mines

C Sulphuric acid is used to dissolve arsenic and metals present in the smelter dust. The
temperature is controlled between 24 and 90EC to determine the amount of a particular metal
extracted. Solids are filtered out and the temperature is lowered to precipitate the metals.
Sulphur dioxide is sparged into the solution to precipitate the arsenic trioxide. (Chementator,
April 1990, Pg. 23)

3.3 Gold Recovery Technology

The amount of gold present in the stockpiled flue gases at Giant has been estimated at about 137,000
ounces. The literature was reviewed and attempts were made to contact a referenced company that is
developing new processes to recover precious metals from waste products in order to determine the
feasibility of recovering gold from the waste material. It is unknown whether any of the following
processes are currently in use. These process/patents, as well, are referenced to the author or patent
holders.

COMPANY PROCESS RESULTS/COMMENTS

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Artech Recovery Systems, Inc. Cashman process International patent holders for Cashman process.

EMR Microwave Technology Microwave energy processes. Uses microwaves to facilitate extraction of precious metals
Corp. from tailings deposits.

U.S. Patent No. 4615731 Hydromettalurgical recovery Referenced in Cdn. Patent No. 1314149, see App. 2-E
process

U.S. Patent No. 4244735 Hydromettalurgical recovery Referenced in Cdn. Patent No. 1314149, see App. 2-E
process

Artech Recovery Systems Inc.


Golden, CO

C A single step hydrochloric acid-oxygen leach is carried out as 120BC and 60 psi. Base and
precious metals are dissolved as chlorides and later recovered by precipitation or solvent
extraction and electrowinning. Arsenic is precipitated as ferric arsenate which can be disposed
of more readily than arsenic trioxide. (Chementator, April 1990, Pp. 22-23)

C Attempts were made to contact Artech Recovery Systems Inc. but were unsuccessful.

EMR Microwave Technology Corp.


Fredricton, NB

C Microwaves are used to introduce energy into the waste material. The company has
contributed directly to the development of new extraction techniques to allow recovery of
precious and strategic metals from existing concentrate and tailing deposits.

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U.S. Patent No. 4615731

C Precious metals are separated from an aqueous acid solution containing gold, one or more
metals from the platinum group and one or more of the nuisance elements: bismuth, lead, tin,
arsenic and antimony. The aqueous acid is treated with sulphur dioxide in the presence of
selenium and a halide to reduce and selectively precipitate selenium and the precious metals
which are then separated from the solution. (Derka, J.R., Pg. 3)

U.S. Patent No. 4244735

C Arsenic is precipitated as an insoluble ferric arsenate compound in the first processing step and
carried through a chloride leach step, in which it is insoluble, to recover the metals. The
metals in solution are separated from the ferric arsenate precipitate and recovered. The ferric
arsenate precipitate is disposed of. (Derka, J.R., Pg. 3)

3.4 Materials Handling

Information on accessing and conveying the arsenic trioxide material to the surface was not readily
available. The specifics of this type of operation are dealt with on a case by case basis. Some general
information on potential problems were obtained from telephone conversations with the Environmental
Protection Division of RWED and the Worker’s Compensation Board. Other information regarding
personal protection requirements and Transportation of Dangerous Goods was obtained from
Environment Canada.

Environmental Protection Division, RWED (Pers. Com., 1997)


Yellowknife, NT

C The material is stored in stopes on the first and second levels of the mine. Removal should not
prove prohibitive from a technological stand point as Giant has stored the material for years
and has considerable experience handling it.

C As the material was placed into the stopes it seems likely that it should be possible to remove it
safely through mechanical means. It is obvious that occupational Health and Safety would
have protocols regarding arsenic handling.

C TDG regulations would apply to the arsenic trioxide if it were shipped off-site. Giant would
have to be registered as a hazardous waste producer, the carrier would have to be registered as
a hazardous materials carrier, the receiver would have to be registered as a hazardous materials

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user and a TDG manifest would be required.

Worker’s Compensation Board (Pers. Com. 1997)


Yellowknife, NT

C Dust generation would be the main concern for workers. Self-contained breathing apparatus
and full protective chemical suits may have to be used when workers are in direct contact with
the arsenic trioxide material. Health and environmental monitoring programs would have to be
initiated.

Copies of the TDG and MSDS information obtained from Environment Canada have been included in
Appendix I-F and II-F of this Report.

3.5 Waste Stabilization and Storage

Research literature indicates that arsenic trioxide is soluble in water at a level of 12.1 g/l at a
temperature of 0EC (Stefanakis, M. and Kontopoulos, A., Table III, Pg. 294), which is significantly
higher than the CCME remediation criteria of 50 mg/l for freshwater aquatic life. The solubility of
arsenic trioxide increases with temperature and at extremes of pH. Arsenic trioxide is not suitable as a
disposal option for arsenic if there is any possibility of water contacting the waste material. (Kyle, J.
H. and Lunt, D., Pg 347).

A number of companies were contacted and several studies were reviewed in order to determine
options for the stabilization and storage of arsenic trioxide. Each of these are listed in the following
table and appropriately referenced below.

Company/Group/Patent Process/Technology Comments

Stark Encapsulation, Inc. MetlCAP encapsulation process. Can form reusable cement substance, see App.
G.

U.S. Government Zeolite-hydraulic cement containment medium. See App. G.

Phytotec, Inc. Phytotechnology. Uses plants to take up arsenic from waste


material, see App. 2-G.

Center for Bioremediation Utilize bioreactor technology to remediate See App. G.


arsenic containing waste material.

University of Alberta, Assorted technologies. They have not done specific arsenic work, but
environmental research group. would be interested.

U.S. Patent No. 4244735 Precipitation as ferric-arsenic compound. Referenced in Cdn. Patent No. 1314149, See App.
D.

Stark Encapsulation Inc.


Cleveland, OH

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C A proprietary process is used to bind the arsenic into a hardened chemical cement matrix. This
material can then be disposed of or reused as a cement (eg. in roadbeds). Treatment prices
ranged from 20-80 U.S.$ per ton depending on the properties of the arsenic containing
medium, the concentration of arsenic in the waste and the intended fate of the product. (Pers.
Com., 1997)

U.S. Government

C A process was developed to contain arsenic in a zeolite-hydraulic cement medium. Zeolite in


amounts from 5-60 weight % is mixed with portland cement in amounts from 95-40 weight %.
A chosen amount of small particle size hazardous material is added to this mixture and more
portland cement is added. Water is added to produce a free flowing paste which is poured into
molds and hardens.(Brown, Patrick M. et al, Pp 5-7)

Phytotec, Inc
Monmouth Junction, NJ

C Plants are used to “phytoremediate” contaminated material. Contaminants are absorbed by the
plants which are then stabilized and landfilled or processed to remove the metal. A process is
being developed to remediate arsenic, but will not be ready for at least another year. (Pers.
Com., 1997)

Center for Bioremediation


Weber State University, Ogden, UT

C Biological processes are used to convert waste material into usable or disposable forms. Work
has been done at the pilot plant scale to convert arsenic into arsenic sulphide which is
considered stable enough to be stored in a landfill. Reported efficiencies were six times those
of chemical methods. A process is being developed to purify arsenic trioxide to a level high
enough for it to be used by the wood preservatives industry. (Pers. Com., 1997)

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University of Alberta, Environmental Research Group


Edmonton, AB

C The possibility of freezing and storing arsenic containing mine waste in permafrost has been
studied. Work has not been done with arsenic trioxide specifically, but interest was expressed
in developing options for gold mine tailings treatment and disposal. (Pers. Com., 1997)

U.S. Patent No. 4244735

C Arsenic is precipitated as an insoluble ferric-arsenic compound. The arsenic is rendered less


hazardous by fixing it with ferric ions and this material can be disposed of. (Derka, Jaroslav R.,
Pg. 4)

Two studies on disposal options for arsenic trioxide were reviewed to collect background information
on the solubility of various arsenic compounds. The Sefanakis study has been included in Appendix I-
G and II-G and the Lundt study has been included in Appendix I-I and II-I.

Production of Environmentally Acceptable Arsenite-Arsenates From Solid Arsenic Trioxide


Stefanakis, M. and Kontopoulos, A.

C Arsenic trioxide produced by roasting can be effectively stabilized as ferric arsenate. Increased
pH and temperature at precipitation adversely affects arsenic solubility. Mixed Fe(II)-Fe(III)
arsenates were less suitable for arsenic removal than ferric-arsenates.

C A molar ration of 7:1 Ca:As was required to achieve a solubility in compliance with
environmental standards. Calcination at 800EC rendered calcium arsenates acceptable at a
molar ratio of 3:1 Ca:As.

An Investigation of Disposal Options for Arsenic Trioxide Produced from Roasting Operations
Kyle, J.H. and Lunt, D.

C Ferric arsenate precipitates produced a very low solubility product, but required large quantities
of oxidant, lime and ferric sulphate to produce. These precipitates showed low solubility but
required large amounts of production chemicals.

C Calcium arsenate showed low solubility but long term thermodynamic stability has been proven
to be deficient. Chemical solidification of arsenic trioxide or of calcium arsenate showed
promise from an economic standpoint.

A representative from CANMET was contacted and options for stabilization and storage were
discussed. (Pers. Com. 1997)

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C Calcium arsenate was once considered an option but long term testing has shown that calcium
carbonate was formed upon exposure to air and the arsenic was released.

C Arsenic can be adsorbed onto ferric hydrate which passes leaching tests and is dischargeable.
A molar iron to arsenic ratio of 3:1 is required. The product has a low density and a high
volume. Theoretically the iron could react with carbon dioxide in the air to form iron
carbonate, and release the bound arsenic. The process has been found to be more suitable for
arsenic in solution.

C Arsenic can be converted to FeAsO4CH2O at 130-140EC and 100 psi in an autoclave. A dense
thermodynamically stable product is formed. Product formed is the same as stable arsenic
compounds found in nature.

C FeAsO4CH2O can be formed at atmospheric pressure using chloride media. The oxidation step
is rate limiting and can be accelerated with hydrogen peroxide. Corrosion problems have
hindered the development of this process.

C Very low solubility iron arsenate sulphite hydroxy compounds (Bukovskyite) can be formed in
autoclaves. Iron demand is high.

C Lead iron arsenate hydroxide (pyromorphite) compounds show low solubility but the
involvement of lead complicates the environmental aspects of material storage.

C Low solubility arsenic sulphide can be formed in a roaster and stored in tailings ponds. The
process is used at a mine in Chile. Maintenance of the equipment can be problematic due to
large amounts of arsenic contamination.

3.6 Materials Management

Three waste handling companies were identified in Alberta that could handle the disposal of arsenic
trioxide waste. Telephone conversations were carried out with each company to determine the disposal
services offered by each company as well as approximate prices for each option. Requested
information was obtained from Custom Environmental Services.

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COMPANY SERVICES OFFERED COMMENTS

Custom Environmental Services/Proeco Corporation Secure landfill, incineration, treatment See Appendix H

Environmental Management N/A N/A

Phillip Environmental N/A N/A

Custom Environmental Services/Proeco Corp.


Edmonton, AB

C Secure landfill would be reliant upon the make-up and concentration of the waste material.
The estimated disposal cost was $Cdn. 750 per ton. Incineration was estimated to cost $Cdn.
1,300 per ton.

C Treatment would be an option depending on make-up and concentration of the waste material.
Estimated costs were $Cdn. 1,600 per ton. All final prices would be dependant upon the
volume and location of the material. Transportation costs could be very high.

The Ontario Waste Exchange and the Canadian Chemical Exchange were both contacted but were
unable to provide information on disposal options for the arsenic trioxide waste.

3.7 Other Studies

Several case studies discussing methods of handling arsenic containing mine wastes were obtained and
reviewed. Copies of the Con mine, El Indio and Windarra Nickel/Gold Project are provided in
Appendix II-I, abridged copies are included in Appendix I-I.

LOCATION TITLE FINDINGS

Yellowknife, NT Nerco Con Mine Arsenic Plant - Environmental The sale of arsenic trioxide and the recovery of
Con Mine Management Through Resource Recovery gold and silver values was economically viable.

La Serena, Chile How St. Joe Gold’s El Indio Mine has Become a Crude arsenic trioxide can be successfully
El Indio gold mine Major Producer of High Quality Crude Arsenic produced and marketed.
Trioxide.

Laverton, WA An Investigation of Disposal Options for Arsenic Combining unprocessed mine tailings or calcium
Windarra Nickel/ Gold Trioxide Produced from Roasting Operations arsenate with portland cement appeared to be a
Project feasible disposal option.

Yellowknife, NT Truck Transfer Facility Outlined the requirements for constructing a truck
Giant Mine Enterprise, NT to rail transfer station.

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Con Mine Case Study

C A study was carried out to determine disposal options for 70 000 tons of arsenic containing
sludge stockpiled over 30 years of roaster operation. Chemical fixation methods, physical
processing methods and resource recovery methods were identified evaluated for arsenic
treatment on the basis of process feasibility, environmental stability and economics. Increased
arsenic trioxide prices in 1980 made resource recovery feasible.

C Hot water leaching was determined to be more environmentally acceptable than a fuming
process. A two stage counter current leach process was developed capable of treating 20 stpd
of raw arsenic trioxide sludge. 12 stpd of 99.8% pure arsenic trioxide was recovered from the
plant. 8 stpd of residue containing 1.2 ounces gold/ton and 3.5 ounces silver/ton was left over
from the processing. The residue was stockpiled until metallurgical processes could be
developed to extract the gold and silver values. Final inert residues were stored with mill
tailings in tailings ponds.

C In 1985 process problems caused the plant to be shut down. Further lab studies were carried
out and the plant reopened in 1987. Industrial hygiene among plant operators was identified as
a problem until a formal training program was developed.

C It was estimated that approximately 5 years was the required treatment time to allow for full
treatment of the arsenic sludge. Revenues obtained from the sale of recovered arsenic trioxide,
gold and silver were projected to cover the plant’s operating costs.

C Currently, the treatment plant is not in operation but was successful in treating all the arsenic
trioxide material in the 1980's. A method was developed to successfully remove the gold and
silver from the process residue.

El Indio Gold Mine Case Study

C Gold ores with a high arsenic content are processed using roaster technology. Arsenic trioxide
is produced as a by-product. The roasting process is conducted under reducing conditions to
prevent the formation of less volatile pentavalent arsenates and antimoniates, loss of stable
sulphide sulphur, excessive formation of oxidized iron compounds and formation of low
melting point eutectics. Roaster gases containing sulphates of arsenic and antimony, labile
sulphur and other volatiles are passed through two cyclones in parallel to remove particulate
matter before being passed into a post-combustion chamber. Sufficient ambient air is admitted
to completely convert all sulphates to oxides at a temperature of 750EC. The gases are cooled
to 390±10EC and passed through an electrostatic precipitator to remove particles. Arsenic
trioxide is gaseous at this temperature and passes through the precipitator. The gas stream is

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cooled to 120EC in a hatch chamber and arsenic trioxide is precipitated out.

C Solid arsenic trioxide is collected in a bag house. The solids are transferred to bins beneath the
baghouse and conducted via screw-feeders and elevators to storage bins. The arsenic trioxide
is passed from the storage bins through Vacu-press densifiers and then into 25 and 30 gallon
drums. The drums are strapped 12 or 6 to a pallet and trucked to port where they are
exported in containers.

C Arsenic trioxide of an average purity of 97.3% is produced and shipped to market.

C An increased capacity in the flotation/cyanide plant, the added value to concentrates by


roasting and a strong demand for arsenic trioxide contributed to the addition of a second
roaster unit, to enter service in late 1989. Arsenic trioxide production doubled to
approximately 30 tons per day.

C Arsenic trioxide production required the implementation of human and environmental controls,
including air and water sampling and routine biological monitoring of staff.

C The arsenic trioxide marketing effort required about three years to refine, but sales were
brought in line with production and “...El Indio feels reasonably confident that it is established
as a long term supplier to the arsenic market.”.

Windarra Nickel/Gold Project Case Study

C This study investigated disposal options for arsenic trioxide only. Marketing options were
considered impractical.

C Solubility testing was carried out on calcium arsenite, calcium arsenate, ferric arsenite, ferric
arsenate precipitates formed from arsenic trioxide waste and on cements formed by mixing the
arsenic trioxide waste or the precipitates with portland cement on its own or with additives
(silica flume or flyash). Solubility of the precipitates was tested using the standard Multiple
Extraction Procedure with a synthetic groundwater solution as the extractant. Calcium arsenite
was found to precipitate leach much more readily than calcium arsenate. Ferric arsenite and
ferric arsenate were less soluble than their calcium counterparts.

C Arsenic leaching from the cement solidified products was investigated using a standard
Dynamic Leach Test. Calcium arsenate and ferric arsenate mixed with cement leached much
more slowly than the untreated arsenic trioxide mixed with cement. The addition of silica or
flyash negatively affected the fixation of arsenic in the cement matrix and produced much
higher leach rates than the straight arsenic-cement mixture. Calcium arsenite interfered with
the setting reaction of the cement, and would not harden.

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C Ferric-arsenic compounds showed very low solubility but required large amounts of process
chemicals. Calcium arsenate formed a low solubility precipitate but the long term stability of
calcium arsenate is known to be poor. Solidification with cement appeared to be the most
economically feasible disposal option.

Truck Transfer Facility, Enterprise NT

C Giant was involved in a program to investigate the best ways of producing and distributing a
high quality White ARsenic OXide (WAROX) product. The study examined the technical
aspects of reclaiming and upgrading the product and included a market study. Upon
investigating various shipping alternatives, it became clear that bulk rail shipments were easily
the least expensive way to go. Giant is thought to have extensive experience in control and
handling of WAROX compounds.

C A tentative shipping schedule called for the dispatch of approximately 150 tons per week of
high quality product to American markets. Based on an 80 ton payload, 1 hopper car would
be loaded every four days. The product was to be in a free-flowing, dust-free granular form
with a bulk density of about 90 lbs/cu. ft.

C Arsenic trioxide would be transported to the transfer station using trucks with a volume of
approximately 1200 cu. ft. and a payload of 22 tons. The payload could be expanded to 33
tons using a “pup” trailer in the typical rig configuration. The truck would be equipped with
four loading hatches and four bottom dump hoppers to be fitted with flexible boots to control
dust during off-loading. The arsenic trioxide would be transported from the truck to a 100 ton
storage bin via a CamBelt conveyor. The CamBelt would be fully enclosed and equipped with
“boots” to prevent dust losses at inlet and outlet points. The arsenic trioxide would be
transferred from the storage bin to a rail car.

C Appendix A of the Truck Transfer Report contained emergency action measures to be taken in
case of a spill at the surface arsenic load-out facility.

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4.0 DATA MANAGEMENT

4.1 Economics

The information gathered from reference sources and from telephone conversations with a number of
companies indicates, that the waste material with arsenic trioxide levels of 78 to 95 % is not
marketable. At a minimum, 95% purity is considered “low grade” and is the lowest level accepted for
most commercial operations. Some companies however, will purchase material below 95% to blend
with higher grade material forming a 95% final composite. 99% or greater purity is considered “high
grade” and is quoted at an 8 to 12 cent per pound premium over low grade product (U.S. Geological
Survey - Minerals Information Sheet, 1996, Pg. 2). The average customs value for imported arsenic
trioxide (U.S.) in 1996 was 22 cent/pound, down 2 cent/pound from 1995. The decline was attributed
to the lower value of some off-grade material imported from Chile used for blending with high purity
material. High purity trioxide from Mexico averaged 33 cents/pound (U.S. Geological Survey -
Minerals Information Sheet, 1996, Pg. 2).

The U.S. accounts for approximately 2/3 of total world demand for arsenic trioxide and China is it’s
largest single supplier. A total of 28,000 tons of arsenic trioxide, with a total value of 13.4 million
$U.S., were imported in 1996, 11,000 tons of which came from China (Ibid., Pg. 3, Table 1). The
wood preservative industry accounted for 90% of U.S. demand and it’s three principle producers:
Hickson Corp., Osmose Corp. and CSI were identified as the most likely end user’s for Giant’s by-
product.

The market for arsenic trioxide as a wood preservative is closely tied to the housing construction
market (e.g. wooden decks). In 1988, 450 million cubic feet of lumber were treated with waterborne
preservatives (98% of which was estimated to be CCA). In 1993, 470 million cubic feet were treated
with waterborne preservatives (75% of all treated lumber). Approximately 500 million cubic feet were
treated in 1994 (80% of all treated wood) and in 1995, 450 million cubic feet of lumber were treated
with waterborne preservatives (75% of all treated wood). The apparent demand for arsenic trioxide
declined slightly in 1996 despite an increase in housing starts. In 1995, figures may have been
influenced by a carry over from a 13% increase in housing starts in 1994 (U.S.G.S. - Minerals
Information Sheet, 1996, Pages 1 to 2).

All three of the major wood preservative companies in the U.S. expressed interest in the Giant mine’s
product. Hickson was familiar with Giant as they had received shipments of arsenic trioxide from them
in the 1980's. Sales were suspended to allow Giant to develop a process to upgrade the trioxide to a
higher purity product (Pers. Com., Hickson). Contact between Hickson and Giant has been renewed
in the past year with intermittent correspondence. Osmose purchased product from Con Mine while
Con’s arsenic plant was in operation. CSI expressed cautious interest in the material but raised
concerns regarding contamination of the flue dust with other materials (Pers. Com., CSI). The iron,
lead, chloride, antimony and mercury levels may have to be reduced to bring them in line with the

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requirements of the various companies. There is some variation in feedstock requirements dependant
on the end user firm.

Environmental pressures have reduced the use of arsenic in several of it’s traditional end uses as safer
alternatives have been developed. The use of arsenic in the agricultural chemicals market (herbicides
and pesticides) dropped from 20% of all arsenic consumed in the U.S. in 1990 to 4% in 1996 as
alternative products became accepted. All other end uses have shown a similar decline with the
exception of the wood preservative industry which has grown from 70% of all arsenic consumed in the
U.S. in 1990 to 90% in 1995 (U.S.G.S. - Mineral Information Sheets, 1994 to 1996). A potential
alternative to arsenical wood preservatives is Ammoniacal Copper Quaternary (ACQ), which avoids the
use of both arsenic and chrome. Recently developed, this product may result in an impact the arsenic
market. It has yet to gain widespread usage.

Several potential sources of arsenic trioxide exist in Canada, at least one of which is currently
producing arsenic products for sale. Giant Mines, Yellowknife has been stockpiling arsenic trioxide in
underground vaults since the mine opened. Approximately 20 000 tons of this material were shipped to
Hickson Corp. in the early to mid 1980's. Plans to construct a WAROX plant to upgrade the bag
house dust to a 99% pure industrial product were developed starting in 1987. This project was put on
hold when Royal Oak acquired the Giant Mine (Roskill, 1990, Pg. 21). Dickenson Mines’ Red Lake
Division produced about 1,360 tons of trioxide in 1985 and 1986 from its gold roasting operation. This
product was exported to the U.S. (Ibid., Pp. 21- 22). Arsenic is no longer produced as a product as it
is converted to ferric arsenate in an autoclave and stored (1991 Canadian Minerals Yearbook, Pg. 9.2).
Nerco Con Mine, Yellowknife sold high quality arsenic trioxide to Osmose Corp. until about 1990
(Pers. Com., Osmose Corp.). Arsenic trioxide was produced using an arsenic recovery plant opened in
late 1983 while the Con mine was owned by Cominco. The feed source was arsenic sludge stockpiled
from the mine’s opening until 1970 (Roskill, 1990, Pg. 22). Cominco produced an arsenic pentoxide
solution at an integrated smelting and refining facility near Trail, BC until 1989 (Ibid., Page 22).
Gallium arsenide was produced at Trail starting in 1981 but production stopped after a market failed to
develop (Nerco Con Mine, Annual Reports). Cominco now produces copper-arsenate which is sold to
Hickson Corp. Placer Dome’s Campbell gold mine converts arsenic into ferric arsenate in an autoclave
which is disposed of in ponds (1991 Canadian Mineral Yearbook, Pg. 9.2). Equity Silver Mines Ltd.
produced calcium arsenate which was disposed of in the U.S. until 1984. This mine has since closed
down.

Reported Canadian consumption of arsenic is confidential from 1992 to 1995, but is given as 125 tons
in 1991. Canada exported 37,194 kg of arsenic in 1996 for a value of 54,216 $Cdn. (Statistics
Canada, On-line Information). The exports information did not indicate the specific compounds
exported but indicates an average price of $1.46 per kg.

Approximately 215,000 tons of baghouse dust had been accumulated and stored underground at Giant
mine by 1988 (Giant Report, Warox Transfer Facility). At an average collection rate from the

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baghouse of 12-15 tons a day (1995 Annual Report, Pg. 5) this amount will have grown to
approximately 259,000 tons of material by 1997. In 1988, the material was estimated to contain
77.6% arsenic trioxide and 126,913 ounces of gold (Giant Resources Ltd.; Annual Report; Pg. 26). In
1995, the purity of arsenic trioxide was estimated to be between 85 and 95% (wt/wt). The amount of
gold was estimated at 0.10 - 0.15 oz/ton of dust (1995 Annual Report, Pg. 5). Calculations using the
1988 numbers as a base and applying the 1995 values to subsequent production puts the total volume
of material at 259,000 tons, containing 206,000 tons of arsenic trioxide and 132,456 ounce of gold by
1997. Based on an average price of 786 $Cdn./ton (determined using the average value per ton of
1996 U.S. imports) the arsenic trioxide has a value of $Cdn. 162 million. Based on a gold price of
$Cdn 300 per ounce the gold would be worth approximately $Cdn.39.7 million. These figures give
total value of $Cdn.202 million to the product stored at Giant.

Transport costs were estimated at 40 $Cdn. per ton for rail shipment and 120 $Cdn. for truck
shipment. This equates to shipment cost of $Cdn. 8 to 24 million for the entire 206,000 tons. These
figures may be low, and could range as high as 300 to 400 dollars per ton due to the hazardous nature
of the material. These figures increase transport costs to $Cdn. 62 to 82 million.(Pers. Com., Royal
Oak)

Con Mine constructed a treatment facility to process approximately 7,300 tons/year of arsenic trioxide
waste material, producing 4,000 tons/year of purified arsenic trioxide product. The capital cost for this
facility in 1981 was $Cdn.13 million. The operating costs were estimated at less than $Cdn.650 per
ton. A plant of this scale would be capable of processing Giant’s current production and very little
more. Giant would need to process a considerably larger volume per year to impact on the stored
waste. Based on a 20 year time frame for eliminating the arsenic stored in the vaults, the processing
plant would need to process approximately 12,500 tons of stored material plus 5,000 tons of currently
produced material for a yearly total of 17,500 tons. Approximately 15,000 tons of arsenic trioxide
product would be produced each year. Scaling Con Mine expenditures up to meet the Giant Mine
requirements would mean a capital cost of $Cdn. 22 million with an operating cost of $Cdn. 650 per
tonne. This results in a total cost to treat and transport the current and future arsenic of $Cdn.214 to
270 million (dependent on transport costs) with a recovery of $Cdn.202 million. These numbers can
not be considered complete without factoring in the cost of accessing the material from the vaults.
Estimates on these costs were not obtained due to the specificity of the problem and the number of
variables involved.

World production of arsenic trioxide was estimated at 42 100 tons in 1996 (U.S.G.S. - Minerals
Information Sheet, 1996, Table 4). Estimated U.S. imports of arsenic trioxide in 1996 were 29,000
tons. Based on a 20 year reduction plan, Giant would account for 60% of U.S. demand and 37% of
world production, tying with China as the world’s single largest producer (1996 production values).

4.2 Arsenic Trioxide Market Processing

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The information gathered indicates that it is possible to successfully separate and market arsenic
trioxide from gold mine wastes. There are two primary methods: sublimation, where the arsenic
trioxide is evaporated from the waste material and then cooled to form a high purity precipitate and
solvent extraction, where the arsenic is dissolved into an aqueous solution and recrystallized into a
purer product. Both methods have been used successfully.

Con Mine in the N.W.T. successfully developed a solvent extraction treatment process allowing it to
treat 20 stpd of arsenic sludge from its’ 70,000 ton stockpile, producing 12 stpd of 99.7% pure arsenic
trioxide product. This product was shipped to Osmose Corp. in the U.S. in extra strength 45 gallon
drums. The 8 stpd residue contained 1.2 ounces gold/ton and 3.5 ounces silver/ton. The plant cost
approximately 13 million dollars to build. Revenues from the sale of arsenic trioxide and the value of
the recovered gold and silver were expected to cover the plant’s operating costs.

The El Indio gold mine in Chile uses a high temperature oxidation process to convert arsenic sulphates
into arsenic trioxide gas. The gas is cooled and filtered through two electrostatic precipitator to remove
unwanted particles and then cooled further to release arsenic trioxide crystals. Approximately 5,000
tons per year of arsenic trioxide are produced and sold on the international market.

4.3 Gold Recovery Technology

Over 100,000 ounces of gold are estimated to be present in the arsenic trioxide waste material kept in
Giant Mine’s storage vaults. Recovery and sale of this gold would help offset the costs incurred during
any processing of the arsenic trioxide for purification or storage purposes. The ability of Con Mine to
recover the gold and silver from the residue of the arsenic trioxide upgrade process contributed to the
economic viability of their processing plant.

Several patents have been taken out on metallurgical processes to recover precious metals from tailings
waste and information was obtained outlining biological, chemical and microwave methods for
recovering metals from mining wastes, indicating that metal recovery from tailings is possible. It is
unknown if any of these methods are currently in use.

4.4 Materials Handling

Specific information on conveying arsenic trioxide from underground storage vaults to the surface for
processing could not be found. Processes such as these must be developed on a case by case basis.

The primary concerns are minimization of dust and exposure of dust to water. Arsenic trioxide is a
highly toxic, highly soluble material and may be fatal if inhaled, swallowed or absorbed through the
skin.(TDG) Workers coming into direct contact would need to wear chemical protective clothing and

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positive pressure self-contained breathing apparatus. (TDG) Giant Mine has experience in the handling
of arsenic trioxide material as 7,400 tons of material were shipped to U.S. buyers from 1981 to 1987
and an on site truck loading station was designed in conjunction with a study carried out by Giant in
1987-1989 on the feasibility of upgrading the arsenic trioxide. They do not have experience in
removing the arsenic from it’s storage vaults however.

4.5 Stabilization and Storage

A number of technologies are available for the on-site stabilization and storage of the arsenic trioxide
waste material. The literature indicates that the most stable form of arsenic for long term storage is as
a ferric arsenate compound formed in a process requiring a molar iron to arsenic ration of 3-4:1.
Currently Dickenson mine’s Red Lake Division in Ontario and Placer Dome’s Campbell gold mine in
Ontario convert arsenic byproducts to this form in an autoclave and store it in ponds.

Conversion of arsenic into calcium arsenate is no longer considered a viable disposal option as
thermodynamic data indicates that the calcium reacts with carbon dioxide in the air to form calcium
carbonate. The arsenic is released as a result of this conversion. This problem may be overcome if
the calcium arsenate precipitates undergo calcination at temperatures in excess of 700EC to convert the
amorphous structure into a crystal structure (Stefanakis et al, Pg. 290).

Conversion into arsenic sulphide may be the most economic chemical binding method as the processing
can be carried out in a roaster. Giant currently operates a roaster on site to preprocess gold ores prior
to cyanization treatment.

Several processes are available to encapsulate the arsenic in a cement medium. From an economic
standpoint, studies have indicated this may be the most viable option. U.S. government researchers
have developed a process using zeolite and portland cement and Stark Encapsulation markets a process
under the tradename MetlCAP that claims to completely bind the arsenic particles using a mixture of
chemicals and cement. The cement formed using the MetlCAP process can be reused as a structural
material.

Other options such as phytoremediation or bioremediation show promise but are still at a
developmental level.

4.6 Materials Management

Data on materials management could only be obtained from one company which provided cost
estimates for landfilling, incineration and treatment of the waste material. It is unlikely that the material
could be landfilled and incineration is not possible, leaving only the treatment option. Based on this

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company’s prices, off-site disposal costs would be on the order of $Cdn. 300 million.

4.7 Other Studies

Three case studies concerning the management of arsenic trioxide mine waste were obtained and
reviewed. Two of the studies, Con Mine and El Indio mine, indicated that arsenic trioxide could be
processed to a sufficiently high purity level to be sold on the world market. The studies illustrated two
different situations.

In the Con Mine study, arsenic trioxide was produced after the mine’s on site arsenic trioxide disposal
efforts were deemed environmentally inadequate. A process was developed to produce 99.8% pure
arsenic trioxide from tailings pond sludge.

The El Indio case study demonstrated how the production and sale of arsenic trioxide can be used to
maximize the profitability of a mine. The arsenic trioxide was viewed as a potential product to be
developed, not merely as a waste product produced while refining gold.

The third case study did not address the prospect of purifying and marketing the arsenic trioxide
beyond stating that the demand for arsenic trioxide is not high and therefore disposal options must be
looked at. The conclusion was that the most insoluble forms or arsenic are also the most expensive to
produce. Recommendations were made to study methods of stabilizing arsenic trioxide in a cement
matrix.

During the late 1980's, Giant studied the possibility of processing the arsenic trioxide using sintered
metal technology to produce a high quality product to be marketed as WAROX (White Arsenic Oxide)
(1991 Canadian Minerals Yearbook, Pg. 9.1). All aspects of the process appear to have been
considered including the construction of a truck to rail transfer facility near the community of
Enterprise, NT. Communications with Hickson Inc. indicated that transport of the arsenic trioxide by
rail would be a requisite part of any sales agreement. A copy of the transfer facility report was
obtained from DIAND’s environmental library and reviewed. Copies of reports detailing other aspects
of the process (eg WAROX plant design, Surface Arsenic Load-Out facility) were not obtained, but
could be of use in determining options for the management of Giant mine’s arsenic trioxide waste
material.

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5.0 SUMMARY

Dillon was retained to provide a brief assessment of options for managing the arsenic trioxide contained
in underground storage vaults at Giant mine in Yellowknife, NT. The study was intended to provide
indications of current technologies available for all aspects of handling the waste.

The research suggests that the market for arsenic trioxide lies chiefly with the wood preservative
manufacturers. The prevailing trend is to develop safer alternatives to arsenical products, but the wood
preservative industry has remained consistent in its demand for arsenic trioxide. The demand for
arsenic is not expected to grow much beyond current levels. Three companies contacted expressed
interest in purchasing material from Giant, but marketing the large volume of material stored by the
mine will require careful planning.

Osmose Corp., Hickson Corp. and CSI in the U.S. would be the most likely purchasers of any product
from Giant. Hickson purchased material from Giant in the early 1980's, and Osmose purchased
material from the Con mine’s treatment plant until 1990 when Con’s stockpile of arsenic trioxide
material was exhausted. All three companies required the product to be at a minimum purity level of
95% with 99% being most favourably priced. CSI indicated that some lower grade material was
purchased to blend with higher quality material but 95% was the purity most often purchased. The
purification can be carried out using a hot water leach or a sublimation process. In 1981, Con chose
the hot water leach process for use at its’ treatment plant as they felt it was the more environmentally
responsible option.

Any purification method chosen should incorporate extraction of residual gold from the arsenic
containing dust. Approximately 130,000 ounces of residual gold are contained in the waste material.
The economic success of the Con mine treatment plant was due in part to the successful reclamation of
the residual gold and silver with the arsenic trioxide.

Accessing the material and conveying it to the surface or otherwise gaining access to it for management
purposes would require careful monitoring. Arsenic trioxide is a known carcinogen, potentially fatal if
inhaled or ingested and can be absorbed through the skin. Precautions would be required to minimize
direct worker contact with the material and keep dust generation low. Routine biological monitoring of
staff and constant air and water monitoring are required at facilities processing arsenic trioxide. Giant
has had considerable experience handling arsenic trioxide and currently processes the material safely.

A number of technologies are available to render the material environmentally inert either for long term
surface storage or for storage in containment vaults. Arsenic trioxide is very soluble, and must be
converted to a less soluble form if contact with water is a possibility during long term storage. Iron
arsenic compounds produced in an autoclave tend to be the most insoluble. Large amounts of iron are
required for the process which results in higher costs for this method. Arsenic sulphur compounds also
have low solubility and have the advantage of being produced in a roaster or by biological means.

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Calcium arsenates are no longer considered acceptable for arsenic storage due to reactions with
atmospheric carbon dioxide. The arsenic trioxide can be mixed with chemical cements to form a stable
product. The cement physically and chemically binds the arsenic, rendering it unavailable to the
environment. In some cases the cement can be reused for structural purposes (e.g. roadbeds). Studies
have shown cement encapsulation to be the most economically viable long term disposal option.

Initial estimates for off site disposal started at $Cdn. 750.00 per ton, before considering transportation
costs which range from $Cdn. 40 to 120 a ton. Considering the large volume of arsenic trioxide to be
dealt with, this option is not economically feasible. The total cost for off-site disposal would be in
excess of $Cdn. 220 million.

Case studies indicate the material can be dealt with in several ways. One method is to convert the
arsenic into a more stable form to reduce the potential environmental impact. Processing costs for this
option can be high. The preferred method is to convert the arsenic trioxide into a saleable product,
thereby at least partly recovering processing costs. A program is currently underway at the El Indio
mine in Chile to market arsenic trioxide produced from a roaster unit. Con mine treated 70,000 tons of
stockpiled arsenic trioxide sludge starting in 1981. The project ended in 1990 when the supply of
arsenic trioxide was used up. During this period, the sale of arsenic trioxide combined with the value of
recovered gold and silver covered the cost of operating the plant.

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Indian and Northern Affairs Canada
DILLON CONSULTING LIMITED

Table 1
Disposal Cost Summary*

Disposal Feasibility Capital Operating Transport Cost Estimated


Method Cost (a) Cost Cost Recovery Total Cost

Secure Landfill (b) Difficult 0 $750/ton $40-120/ton 0 $205-225


million

Offsite Treatment (b) Yes 0 $1600/ton $40-120/ton 0 $425-445


million

Off-site Incineration No (Impossible) 0 $1300/ton $40-120/ton 0 $347-368


(b) million

Bioremediation Under $20 million $7390/ton 0 0 $1,542 million


Development

Cement Stabilization Yes $20 million $20-80/ton 0 0 $25-31 million


(c)

Phytoremediation (d) Under N/A $40-694/ton 0 0 $10-180


Development million

Ferric Arsenate (e) Yes $20 million $5.09/lb of As 0 0 $1,684 million


removed

Arsenic Sulphide (e) Yes 0 $2.19/lb of As 0 0 $725 million


removed

Marketing Yes $20 million $650/ton $40-120/ton $202 $10-30 million


million profit

* The cost of accessing the material has not been included as general information on this process
could not be obtained.

(a) Capital costs are based on the Con mine’s treatment plant capital cost, scaled up to meet
Giant’s processing requirements.

(b) Off-site disposal method values were based on costs supplied by Proeco.

(c) Cement stabilization values were supplied by Stark Encapsulation.

(d) Phytoremediation capital costs are included in operating costs. Values were supplied by
Phytotec Inc.

(e) Stefanakis and Kontopoulas, Pg. 289, Table II. Prices were adjusted to 1983 levels.

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Indian and Northern Affairs Canada
Abbreviations

CSI - Chemical Specialties Incorporated

CCA - Copper Chromate Arsenate

tpd - tons per day

tpy - tons per year

stpd - short tons per day

ACC - Acid Copper Chromate

ACA - Ammoniacal Copper Arsenate

CZC - Chromated Zinc Chloride

U.S.G.S. - United States Geological Survey

TDG - Transportation of Dangerous Goods

WAROX - White ARsenic OXide

lbs/cu. ft. - pounds per cubic foot


REFERENCES

All Chemie, Ltd.; Fort Lee, NJ; Personal Communications. Telephone conversation August 08, 1997.

Amalgamet Canada; Toronto, Ont.; Personal Communications. Telephone Conversation August 05,
1997.

Anthony, David H.; Nerco Con Mine Arsenic Plant - Environmental Management Through Resource
Recovery; Arsenic Metall. Fundam. Appl., Proc. Symp.; Metall. Soc., Warrendale, PA; 1988; Pp. 135-
143.

Brown, Patrick M., Maginnis, Michael A., Furlong, Casey R., Bakker, Martin G. and Turner, Gregory
L.; Zeolite-Hydraulic Cement Containment Medium; Department of the Interior; Washington, DC;
1994.

Byrd, Cordwainer; Arsenic Profile; AMM Online, The World Metals Information Network, Metals
Profiles, 1995.

Canaimex, Inc.; Montreal, P.Q.; Personal Communications. Telephone conversation August 07, 1997.

CANMET, John Dutrezak; Ottawa, ON; Personal Communication; Telephone Conversation; August
13, 1997.

Center for Bioremediation, Weber State University; Ogden, UT; Personal Communication; Telephone
Conversation, August 8, 1997.

Chementator; ...and so can sulphuric acid leaching; Chemical Engineering; April 1990; Pg. 23.

Chemical Specialties Inc.; Personal Communications. Telephone Conversation August 12, 1997.

Derka, Jaroslav R.; Methods of Recovering Arsenic Values from Waste; Canadian Patent No.
1314149; 1987.

Edelstein, Daniel L.; Arsenic; U.S. Geological Survey - Mineral Information, 1994.

Edelstein, Daniel L.; Arsenic; U.S. Geological Survey - Mineral Information, 1996.

Edelstein, Daniel L.; Arsenic; U.S. Geological Survey, Mineral Commodity Summaries, February
1997.

Giant Yellowknife Mines Ltd.; Warox Transfer Facility; 1988.

Great Western Inorganics, Inc.; Arvada, CO; Personal Communications. Telephone Conversation
August 14, 1997.

Hickson, Inc.; Conley, GA; Personal Communications. Telephone Conversation August 07, 1997.

Koren, Elaine; Arsenic; Canadian Minerals Yearbook, 1991; Mineral Policy Sector, Energy Mines and
Resources Canada.
Kyle, J.H. and Lunt, D.; An Investigation of Disposal Options for Arsenic Trioxide Produced from
Roasting Operations; Publ. Australas. Inst. Min. Metall.; AusIMM Extr. Metall. Conf., 5th ; 1991;Pp.
347-353.

Mines and Minerals Activities 1993; Dept of Indian and Northern Affairs.

Natural Resources Canada Minerals and Metals Sector, Online Information, Natural Resources Canada
Web Site.

Osmose Inc.; Personal Communications. Telephone Conversation August 14, 1997.

Phytotec Inc.; Monmouth Junction, NJ; Personal Communication; Telephone Conversation; August 8,
1997.
Giant Yellowknife Mines Ltd.; Annual Report; 1982, 1984, 1985, 1986, 1987, 1989.

Giant Resources, Ltd.; Annual Report; 1988.

Roskill Information Services, Ltd.; The Economics of Arsenic, Seventh Edition 1990.

Smith, E.H. and Parades, Eduardo; How St. Joe’s El Indio Mine Has Become a Major Producer of
High Quality Crude Arsenic Trioxide; Arsenic Metall. Fundam. Appl., Proc. Symp.; Metall. Soc.,
Warrendale, PA; 1988; Pp. 145-160.

Spectrum Bulk Chemicals; New Brunswick, NJ; Personal Communications. Telephone Conversation
August 01, 1997.

Stark Encapsulation Inc.; Cleveland, OH; Personal Communication; Telephone Conversation; August
5, 1997.

Statistics Canada, Online Information, Statistics Canada Web Site.

Stefanakis, M and Kontopoulos, A.; Production of Environmentally Acceptable Arsenite-Arsenates


From Solid Arsenic Trioxide; Arsenic Metall. Fundam. Appl., Proc. Symp.; Metall. Soc.; Wallendale
PA; 1988; Pp. 287-304.

Transene Co. Inc.; Rowley, MA; Personal Communications. Telephone conversation August 08,
1997.

University of Alberta, Environmental Research Group; Edmonton, AB; Personal Communication;


Telephone Conversation; August 8, 1997.

Wego Chemical and Mineral Corp.; Great Neck, NY; Personal Communications. Telephone
Conversation August 01, 1997.
TABLE OF CONTENTS
Page No.
EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i

1.0 INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 Scope of Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

2.0 METHODOLOGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2.1 Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

3.0 DATA COMPILATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5


3.1 Economics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
3.2 Arsenic Trioxide Market Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
3.3 Gold Recovery Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
3.4 Material Handling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
3.5 Waste Stabilization and Storage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
3.6 Materials Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
3.7 Other Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

4.0 DATA MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29


4.1 Economics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
4.2 Arsenic Trioxide Market Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
4.3 Gold Recovery Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
4.4 Materials Handling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
4.5 Stabilization and Storage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
4.6 Materials Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
4.7 Other Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

5.0 SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

APPENDICES I - Condensed
Appendix A - Abbreviations
Appendix B - Graphs
Appendix C - Economic Data
Appendix D - Arsenic Trioxide Market Processing Data
Appendix E - Gold Recovery Data
Appendix F - Materials Handling & Storage Data
Appendix G - Waste Stabilization & Storage Data
Appendix H - Materials Management Data
Appendix I - Case Studies

APPENDICES II - Under Separate Cover


Appendix A - Abbreviations
Appendix B - Graphs
Appendix C - Economic Data
Appendix D - Arsenic Trioxide Market Processing Data
Appendix E - Gold Recovery Data
Appendix F - Materials Handling & Storage Data
Appendix G - Waste Stabilization & Storage Data
Appendix H - Materials Management Data
Appendix I - Case Studies
APPENDIX A

Abbreviations
APPENDIX B

Graphs
APPENDIX C

Economic Data
APPENDIX D

Arsenic Trioxide Market


Processing Data
APPENDIX E

Gold Recovery Data


APPENDIX F

Materials Handling &


Storage Data
APPENDIX G

Waste Stabilization &


Storage Data
APPENDIX H

Materials Management Data


APPENDIX I

Case Studies
APPENDIES I
APPENDIES II
Arsenic Trioxide
Management Feasibility
Study
Report
October 6, 1997

Arsenic Trioxide Management Feasibility Study


Yellowknife, NT

Indian and Northern Affairs Canada

95-2832-04-01

Submitted by
Dillon Consulting
Limited
Arsenic Trioxide
Management Feasibility
Study
APPENICES
October 6, 1997

Arsenic Trioxide Management Feasibility Study


Yellowknife, NT

Indian and Northern Affairs Canada

95-2832-04-01

Submitted by

Dillon Consulting
Limited

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