Evidence of meeting #63 for Foreign Affairs and International Development in the 41st Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was process.
A recording is available from Parliament.
Conservative
Bob Dechert Conservative Mississauga—Erindale, ON
You described the responsible development of the current project you're working on, with its stringent environmental controls. Can you explain the environmental assessment process that your company undertook upon commencing operations?
President and Chief Executive Officer, Baffinland Iron Mines Corporation
North of 60, the approach to environmental assessments is different than it is south of 60. In fact, the Minister of Aboriginal Affairs and Northern Development in Canada is actually the minister responsible for the environment north of 60.
The process is one that falls from the Nunavut Land Claims Agreement that was settled some time ago between Canada and the Inuit people of what is now Nunavut. It provides for an integration of federal responsibilities with regional interests, under the auspices of an institution of public government called the Nunavut Impact Review Board. There is another institution of public government that is also involved, the Nunavut Water Board, but the primary process is undertaken by NIRB.
To put it into perspective, our review through the NIRB process began in March of 2008 and concluded on December 28, 2012. It's a four-and-a-half-year process. It's extremely stringent. I've been through the CEAA process and a provincial one as well, the NEAA. I can tell you that development north of 60 is very carefully considered.
It's a very stringent process, as it should be, given what we're doing and where we're doing it. It's a very inclusive process. The communities in the primary area of activity are thoroughly engaged, to the point where they can sometimes feel they're over-engaged, in that there are a lot of meetings. But it's absolutely crystal clear at the end of that process that there has been a thorough discussion, not just on the physical environment but also on the social environment and the ways in which the project might address it.
Conservative
The Chair Conservative Dean Allison
Thank you.
That's all the time we have.
We're going to move back over to Mr. Eyking for seven minutes.
Liberal
Mark Eyking Liberal Sydney—Victoria, NS
Thank you, Chair.
Thank you for coming here today.
I just want to follow up a little bit on what you would call the rules of engagement on the north of 60 process. It seems you're quite a fan of that or proud of it. I have a couple of questions. First, is it a better system or process than what exists in the rest of Canada?
Second, with such a large body of land north of 60 and so few people and with the transportation issues and even the complexity of how they live up there, how do you do proper community halls and assessments? How are those done properly when you're dealing with such a vast area?
President and Chief Executive Officer, Baffinland Iron Mines Corporation
To address the question as to whether the process up north is better than the process down south, I've been involved in both processes and I find them both very effective. Bear in mind that the process that was used on the other mine I spoke about at Voisey's Bay was, again, an inclusive process. There was a panel that included federal, provincial, Inuit, and Innu representation to consider the process over about a two-year span. It was a very thorough process. I felt—and I think the participants felt—that at the end we'd had a very good review and had come up with a number of excellent recommendations for implementation of the project.
In terms of how you manage a process in an area that has relatively low population and large physical distances, it takes a lot of time and it takes a lot of effort. Proponents spend a lot of time in communities getting to know them. Proponents will ensure that the communities have the necessary tools to consider things internally and not just while we're there. So our people spend a lot of time in northern communities canvassing that opinion, participating in both the local discussions and the more organized or the collective organizations. In this case the QIA, the Qikiqtani Inuit Association, was the collective we were engaged in, in terms of the Inuit interest. We engaged with them on a regular, often daily, basis over that period of several years.
Liberal
Mark Eyking Liberal Sydney—Victoria, NS
If you're doing an environmental assessment process south of 60, it goes to the desk of the Minister of the Environment. You're saying that pretty well everything that happens north of 60 funnels through the desk of the Minister of Indian and Northern Affairs in terms of approving that you people, or whoever is taking resources there, are following due diligence?
President and Chief Executive Officer, Baffinland Iron Mines Corporation
Only as far as the final authorization occurs: the process for engagement, the effective engagement of all of the federal departments is similar, but in the final analysis it's the Minister of Aboriginal Affairs who approves or rejects the recommendations that come from the Nunavut Impact Review Board, because the NIRB is a product of the land claim.
But in terms of the engagement, it is as thorough with the line departments, whether that's Fisheries, Environment, Transport Canada, or anything else, whether it's north of 60 or south of 60. The final sign-off comes from a different minister, that's all.
Liberal
Mark Eyking Liberal Sydney—Victoria, NS
I think you alluded to some sort of partnership with the United States on rules and regulations. Are you saying that maybe we should have the same as Alaska...?
Liberal
Mark Eyking Liberal Sydney—Victoria, NS
What were you saying about us having more of a North American...? I didn't know what you were alluding to there.
President and Chief Executive Officer, Baffinland Iron Mines Corporation
The suggestion was that there's room for a business perspective, I think, within the Arctic Council, or certainly somewhere, and my suggestion is that it's best done through the Arctic Council.
The only reference to the U.S. was that there is a potential for continuity in this regard, in that the Canadian presidency of the Arctic Council is to be followed by the American presidency of the Arctic Council. If this were an initiative undertaken by the Arctic Council, if it would be acceptable to the member states, then there would be good continuity with the incoming president after ours.
Liberal
Mark Eyking Liberal Sydney—Victoria, NS
On this multi-sectoral, transnational...what do you call it? What's that about? Is that made up of different mining groups? Who's involved with this organization that you're talking about?
President and Chief Executive Officer, Baffinland Iron Mines Corporation
Well, as yet it's not an organization, but the potential would be there. The suggestion was that it would be multi-sectoral, that it wouldn't be just mining. Whether it would be mining, oil and gas, fishing, tourism, or whoever is expecting to be active in the Arctic, it's appropriate there be common standards, common expectations about appropriate behaviour, and some sharing of best practices.
Mining in particular has developed a lot of what have become industry standards, particularly around safety. These can be shared across boundaries and, for that matter, across sectors where there's similarity of activity. It's essentially a forum wherein the whole is more than the sum of the parts.
Liberal
Mark Eyking Liberal Sydney—Victoria, NS
Who decides if you're doing a mining project? Right now, we have the Minister of the Environment of Canada deciding if there's a full panel review or not. If a full panel review on a project is being proposed up north, who decides if a full panel review...? Does that come back to the Minister of the Environment for the country or does that go to the Minister of Indian and Northern Affairs?
Conservative
The Chair Conservative Dean Allison
That's all the time we have, but I'll let you answer the question quickly.
President and Chief Executive Officer, Baffinland Iron Mines Corporation
I believe that actually it's a function of the land claim agreement. In the final analysis, it's the NIRB process that is engaged according to certain requirements, so I don't think it's a judgment call. Projects that are occurring on Inuit-owned lands of a certain size, for instance, require a full NIRB review.
Conservative
The Chair Conservative Dean Allison
Thank you very much.
We're going to start our second round, which will be five minutes for questions and answers.
Mr. Van Kesteren, sir, you have five minutes.
Conservative
Dave Van Kesteren Conservative Chatham-Kent—Essex, ON
Thank you, Mr. Paddon. This is very interesting stuff.
I get pumped when I hear this kind of stuff, and I'll tell you why. Whether you believe in some divine providence or just celestial luck, this is an incredible time. Had we had access to the north—and I think you would agree with this—100 years ago, 50 years ago, even 25 years ago, we wouldn't have had the responsibility that we acknowledge today is part of that. We wouldn't have settled a lot of our...such as the Inuit claim.
I've begun a process of visiting Canadian mines—I hope to visit yours as well, maybe this summer—and I see how essential the whole mining and extraction industry is with relationships with first nations people, because we need them. Again, had we had this opportunity 25 years ago, we would have done that all wrong, too.
I just see some incredible, exciting things happening in the north. Even if we talk about global warming, we would not have had the.... Well, we wouldn't have had the technology, but there's also the fact that there will be more ice-free water there, which makes it possible to extract these things. I don't think 25 years ago we would have entertained mining in Baffin Island. Yet here we are today, at the cusp of, I understand, the richest iron ore deposit in the world.
Am I right when I say that?
President and Chief Executive Officer, Baffinland Iron Mines Corporation
It's right up there.
Conservative
Dave Van Kesteren Conservative Chatham-Kent—Essex, ON
Right up there, so...great things.
Then there's the impact and the possibility of being a light to some of these other nations, as Mr. Dechert was saying, and the fact that we can show the way to do it right: how to do it right with the environment, how to do it right with first nations people, and just how to gain maximum benefit for everyone.
I don't have much time and I'm doing all the talking, so I'm going to hand it over to you now. I want to know about the benefit to the Inuit and the impact on the environment. We need to know that. We're mining where trees don't grow, so I want to know how you finish off these projects.
In terms of transportation of materials, when I went to Baffin Island back in 2006, there was one road in Iqaluit, and I think that was to.... Well, there was one to a gravel pit as well, I think.
President and Chief Executive Officer, Baffinland Iron Mines Corporation
It's called the Road to Nowhere.
Conservative
Dave Van Kesteren Conservative Chatham-Kent—Essex, ON
The Road to Nowhere, okay.
How are you going to do that, and again, how can this be a model for other nations?
Perhaps you can just talk about, in the time that's left, the benefit to the Inuit, the impact on the environment, and transportation—and, if you have time, how we can be a model to the rest of the other nations in the north.