General The Quinsam coal property is located 17 miles southwest of Campbell River on Vancouver Island, British Columbia. The project is a joint venture arrange- ment between Brinco Limited and Weldwood of Canada Ltd. Major activities on the Quinsam Coal project during 1982 were the completion of environmental studies and a feasibility study. A modest drill program was under- taken to obtain samples of coal for coal quality testing. An ac- tive community relations pro- gram was carried out in Camp- bell River. Feasibility and Environ- mental Studies The feasibility study included a review of coal reserves, coal quality, washability, mine plan, capital and operating costs. En- vironmental studies included ground water hydrology, surface water management, control of suspended solids, acid genera- tion and acid consumption pro- perties of material to be mined. The Stage II Addendum, submit- ted to the Coal Guidelines Steer- ing Committee on August 16, 1982, addressed concerns outlined by the provincial and federal government agencies in their original Stage II review, as well as the concerns expressed by residents of Campbell River. On February 16, 1983, the Government of British Columbia granted Stage II approval to the project, and announced that a public inquiry will be held under the Environment Management Act at a later date. The company will now proceed with the work required to apply for permits and licences. This work is ex- pected to be completed during the first half of 1983. Community Relations An office has been maintained in Campbell River since November 1981 to provide in- formation about the Quinsam Coal project to Campbell River residents. This community rela- tions program will continue dur- ing 1983. Pacific Ocean Marketing Potential coal markets have been identified in Malaysia. Hong Kong, Japan and Korea, and Marubeni Corporation has been appointed marketing representative in Japan. Coal markets in these areas, as elsewhere in the world, are cur- rently soft, but intensive efforts will nevertheless be made dur- ing 1983 to secure sale con- tracts. Quinsam coal is a high volatile thermal coal which is well suited for the utility com- panies in the Pacific Rim coun- tries. Because of its proximity to tidewater and a mature in- frastructure, the Quinsam pro- ject is considered to have the potential to become a low risk, high quality coal producer. _ Quinsam Coal mine plan for first five years Project Infor Coal Reserves — Surface — Underground Estimated rate of Clean Coal Production Coal Quality — BTU per pound % Ash % Sulphur Shipping Operating Personnel Quinsam Coal Project mation 27.8 million raw tons 13.5 million raw tons 1 million tons per year 12,500 11.5 - 12 95-19 by truck. 18 miles to barge loading site on tidewater 246