SAFETY AND SECURITY OF OUR

TAILINGS STORAGE FACILITIES

“ At First Quantum, we take the design, construction and management
of our Tailings Storage Facilities (TSFs) very seriously, from the Board
down to the operator level. We have long recognised potential TSF
failure as one of the Company’s most significant risks and have
conducted regular risk assessments of all our existing and planned
Location and number of
TSFs owned and operated
by First Quantum
TSFs. First Quantum’s Board and management teams remain focused COUNTRY ACTIVE CLOSED

on the importance of TSF design, operation and management. Australia 1

As CEO and Chairman, I am personally involved and take a close Canada 9

interest in the management and operation of our TSFs, demanding Finland 1

the highest level of expertise throughout the whole process from Mauritania 3
design to closure. I am updated regularly on the operation of our TSFs
Panama 1
and intervene directly as and when necessary. This brief note is to
1
inform stakeholders of our company-wide efforts to ensure that all Spain

United States
our TSFs are operating conservatively and well within the accepted of America
3

guidelines as developed by the world’s leading practitioners. Zambia 3 1

Total 10 13

Philip K. R. Pascall COVER PAGE:

Chairman of the Board and Chief Executive Officer NORTHERN STARTER
WALL CONSTRUCTION
April 2019 AT COBRE PANAMA
Tailings Storage Facility Design

TAILINGS
DISCHARGE
First Quantum’s approach DESIGN POND
First Quantum’s TSFs are designed in accordance with the
to TSF management is to guidelines of the Australian National Committee on Large Dams
design TSFs appropriate (ANCOLD), which conform to the guidelines of the International TAILINGS
STARTER
for local conditions and Council on Metals and Mining (ICMM) and the Canada Dam
DAM
Association (CDA).
the material to be
deposited. When determining the appropriate type of TSF for a project, it is UPSTREAM Kansanshi TSF 1
important to consider local conditions and the physical and Upstream construction using
Deposition of the cyclone underflow upstream of the existing
cycloned tailings. The TSF was
engineering properties of the tailings. Generally, tailings from hard embankment centre line in lifts using the beached (sub aerially designed to have a rate of rise
rock mines (e.g. copper) behave differently to tailings from other deposited) tailings as support. The embankment crest line of less than 2m per year (and
types of mining. Copper tailings typically settle, drain, consolidate in practice is considerably
progressively moves in an upstream direction. The rate of rise of lower than this).
and gain strength. In comparison, iron ore tailings are generally the embankment is typically maintained at less than 2m per
weaker, exhibiting high plasticity, high liquidity and high moisture Kansanshi TSF 2
year to allow the beached tailings to desiccate and gain
Upstream construction using
content, therefore behaving quite differently. In hard rock mining, strength. This method of construction is used extensively cycloned tailings. The TSF rate
cyclones separate the tailings into a coarse and fine fraction on the around the world and within the First Quantum group. of rise is around 1m per year.
embankment during deposition. Preferential deposition of the Properly executed, upstream construction can provide an Sentinel TSF
cyclone underflow onto the embankment creates a free draining, economical embankment with a high factor of safety. Upstream construction over a
competent and stable construction material while the fine fraction, 17 km long embankment. The
TSF has a rate of rise of 2m
and the majority of the water delivered with the tailings, flows per year.
towards the centre of the TSF. In this way, the embankment remains
dry as defined by the phreatic surface (level of saturation) and the
embankment stability remains well above the lower design limit.

Based on these properties, First Quantum has adopted two

TAILINGS
approaches to embankment design. These designs are industry best POND DISCHARGE
practice and used widely and successfully in hundreds of mining
operations around the world. However, it must be emphasised that
regardless of the design and construction, it is important that the TAILINGS
STARTER
TSF is operated in accordance with the design constraints. First DAM
Quantum’s Board and its engineering staff work with the operators
of each TSF (i.e. each project) to manage the facility according to the CENTRELINE Cobre Panama TSF
constraints of the design. Centreline construction is an
Centreline construction is where the existing embankment
inherently safe form of
crest line is maintained. The majority of the placed cyclone construction.
Personnel involved in day to day operations at our TSFs are regularly
underflow is supported by natural ground on the downstream
briefed on the latest developments in TSF design, operation and risk
side of the embankment. This method of construction is often
management.
considered, but not proven, to provide a higher factor of safety
than upstream construction.
Tailings Storage Facility Operation and Monitoring

We manage our TSFs in OPERATIONAL CONTROLS

Dam Safety Management
The following operational controls are in place at each of our TSFs:
accordance with the
design and operating • TSF management review and risk oversight by the Environment,
Risk Oversight
Health & Safety Committee of the First Quantum Board
conditions and • Quarterly or annual inspections, risk review and reporting by
Board Environmental Health
and Safety Committee
constraints. external specialist (Engineer of Record)
• Appointment of competent persons at the mine to manage
facility with all reporting directed to the Mine Manager Group Technical
• Use of approved operating manuals prepared for each TSF Operational Management
• Regular inspection by the day to day operators with overview and Risk Review
from senior management
• Close monitoring of the volume of water held in the TSF with
particular attention to embankment freeboard and drainage Engineer of Record
• Regular surveys and levelling on all embankments Design and Operational Aspects
• Use of drones for aerial surveillance of the TSF
• The installation of sophisticated instrumentation including
piezometers (to measure the presence and level of the phreatic
surface), slope indicators and settlement gauges to provide a Independent Tailings Experts
detailed picture of the developing embankment Annual Inspection, Review and Reporting
• Interpretation of piezometric and associated data by external
consultants on an annual basis or more frequently if determined
by site conditions
• Embankments regularly inspected for erosion, seepage and Operation
slumping Operational Controls and Monitoring
• Groundwater quality monitored via peripheral water monitoring
bores
• Group technical staff regularly inspects the TSFs and review the
operations with mine management. Recommendations are
prepared to improve all aspects of the operation of the facilities

CLOSURE
Our closed sites have shown decades of stability and are treated
with the same level of scrutiny as our operating sites with ongoing
management including regular geotechnical inspections, dam
safety risk assessments, monitoring and third party reviews.
 Cobre Panama Tailings Storage Facility MATERIAL TYPES

1 CORE/IMPERVIOUS (SAPROLITE) 5 ROCKFILL

2 EMBANKMENT SHELLS
(SAPROLITE AND WASTE ROCK) 6 FINE ROCKFILL

The Cobre Panama TSF is raised using 3 FINE FILTER (CHIMNEY DRAIN /
7 COARSE FREE

the centreline construction method.

DRAINAGE BLANKET)
DRAINING TAILINGS

4 EROSION PROTECTION
The embankment starter walls are
constructed of earth and rock fill 7
FUT
URE
4
to a high factor of safety. From year 3 CRE
ST
UPSTREAM DOWNSTREAM
3 of operations the crest of 2 1 3
3

2 3
the embankments will be 6
2 3
progressively raised using 5 5

cycloned coarse tailings. 3 3 6

BEDROCK SURFACE

DESIGN S. A. and the Geoscience Institute of the placed downstream of the embankment the western abutment of the northern capable of reporting in real time:
University of Panama, to confirm potential centreline and the balance of tailings embankment. The penstock and tunnel • Production of cyclone underflow (dm)
• The three key risk areas addressed in the
loadings and design values deposited into the storage. The design system is designed to allow the controlled • Quality of underflow (dm)
TSF design were:
• Factors of safety used in design are in provides for cyclone overflow to be sub- discharge of water captured during the • Insitu density of placed underflow (dm)
1. Seismic - foundation weakening, filter
accordance with recommendations aerially deposited into the storage. Under 1:100 year storm event. Backup for the • Pool level and freeboard (rd)
system disruption, liquefaction
provided by the Canadian Dam Authority normal operations a 600 m long beach tunnel is provided by the large capacity • Pool water quality (rd)
2. Climatic - decant structure or spillway
(CDA) and internationally accepted will be maintained upstream of the pumps designed to return water to the Mill. • Embankment settlement gauges (rd)
failure, filter blockage, extreme rainfall
embankments. This is intended to prevent The discharge from these pumps can be • Embankment piezometric sensors (rd)
3. Operational - failure to maintain • The same construction method has been
water from ponding directly against the redirected to discharge downstream if
freeboard used successfully in similar climate, tectonic • During the operating life of the TSF a
upstream faces of the embankments and necessary. As with all major storage
and ambient conditions, e.g. Hidden Valley professional engineer will be appointed to
• TSF design was subject to internal and hence minimise the amount of water which facilities, the TSF will be equipped with an
(PNG), in high rainfall areas and Highland audit construction activities and maintain
external review by DE Cooper and must be drained from the embankments emergency arrangement designed to
Valley and Gibralta (Canada) and Kennecott Construction Record Reports to the
Associates (DECA) and Klohn Crippen prevent the embankments from
(USA), all in tectonically active zones • The average annual rainfall at the TSF site required standard
Berger (KCB). DECA has been involved in overtopping
is around 4.5m and the catchment area is
the design and ongoing management of • A specialist tailings consultant will be
CONSTRUCTION approximately 20km2. Captured rainfall and • Construction and operation of the TSF will
TSFs of all types around the world for over retained to conduct regular TSF inspection
water released from the settling tailings will be under the control of an experienced and
45 years. KCB has over 60 years’ experience • DECA will approve the TSF Construction and reporting
provide the primary source of water for the dedicated management team reporting
in the design and construction Report in the role of Engineer of Record • Reports on the TSF will be presented to the
Mill. Significantly more water will be directly to the General Manager. Regular
management of many of the largest First Quantum Board for review and
OPERATION collected in the TSF than is required by the audits will be carried out to confirm the
tailings storages in USA, Canada and approval
Mill, requiring that water is continuously management practices put in place to
elsewhere including storages of similar • The design of the TSF provides for the discharged to the downstream control the operation are being followed
design and in similar environments to northern and eastern embankments to be environment. Permits to allow for this • The following aspects will be monitored
Cobre Panama raised progressively using the ‘centre line’ discharge are in place. The majority of the using a combination of direct
• TSF Seismic risk was reviewed by two method of embankment construction excess water will be discharged via a measurement (dm) and remote devices (rd)
reputable organisations, Geo Consultores where the coarse free draining tailings are penstock and tunnel constructed through
Certain of the information contained in this document constitutes “forward-looking statements” within the meaning of the Private Securities Litigation
Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities legislation. Such forward-looking statements and
information include statements regarding operational controls and procedures at First Quantum’s TSFs and the planned TSF for the Cobre Panama project.
Often, but not always, forward-looking statements or information can be identif ied by the use of words such as “plans”, “expects” or “does not expect”, “is
expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate” or “believes” or variations of such words and phrases
or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. First Quantum undertakes no
obligation to update forward-looking statements or information as a result of new information after the date of this document except as required by law.

First Quantum’s operations, including the TSFs at each of its projects, and results are subject to a wide variety of risks, including those set out under the
heading “Risk Factors” in First Quantum’s annual information form, which is available under First Quantum’s prof ile at www.sedar.com. With respect to risks
related to First Quantum’s TSFs, see in particular the risks outlined under the heading “Environmental, Health and Safety Risk Factors”.

More detailed descriptions of the tailing storage facilities for each of First Quantum’s material mineral properties, being the Kansanshi, Sentinel,
Ravensthorpe and Cobre Panama projects, are available in the respective technical reports prepared in accordance with National Instrument 43-101 –
Standards of Disclosure for Mineral Projects, which are available under First Quantum’s prof ile at www.sedar.com. www.f irst-quantum.com