Good morning, Madam Chair and members of the standing committee. Thank you for the invitation to appear before you today and provide clarity to the support of the Yukon Chamber of Mines for the passage of Bill C-17.
This is an important bill for all Yukoners, one that touches on reconciliation, environmental sustainability, and economic development. In February 2017, the Yukon Chamber of Mines provided support to Yukon first nations in seeking expeditious passage of Bill C-17 recognizing that first nation governments were not fully involved in the development of its predecessor legislation Bill S-6. It is unfortunate that we find ourselves here due to the fact that the process agreed to by all governments was not followed.
The Yukon Chamber of Mines recognizes the involvement of first nations in the development of legislation. Our support to Yukon first nations was also predicated on addressing industry concerns, namely reassessments and timelines, through a collaborative framework with Yukon first nations, the Yukon government and the Government of Canada, a fact that's been overlooked during debates in the House of Commons.
I refer you to the joint press release by the Council of Yukon First Nations, the Yukon government, and the Yukon Chamber of Mines, which contains the following quote from me, the president of the Yukon Chamber of Mines:
The mining industry is on the front lines of reconciliation, as exploration and development activities occur in the traditional territory of all Yukon First Nations. It is with this in mind that the resetting of the relationship between all orders of government brings the opportunity to address challenging issues around timelines & re-assessments through a collaborative framework moving forward.
It is without a doubt that the passage of Bill C-17 needs to occur in order to reconcile with Yukon first nations. The federal and territorial governments must work immediately with first nations governments to address the concerns and risks associated with the removal of the provisions addressing reassessment and timelines from the act.
I would like to draw your attention to Minister Bennett's commitment in a letter to the Yukon Chamber of Mines dated July 6, 2017, “Once amendments to Bill C-17 have been made, the department is willing to work with Yukon first nations, the Government of Yukon, and stakeholders such as your organization to review these issues in order to identify possible short-term administrative or long-term legislative solutions.”
We appreciate this commitment. However, it is imperative that all orders of government work to undertake and implement solutions to these issues in advance of the passage of Bill C-17 to ensure continuity for all parties involved. The time to start this work is already in the past. Our concerns for the future of our business have been shared with all levels of government. We strongly urge you to begin this work and establish a timeline to report progress on this front.
The future of the Yukon mining and exploration community is threatened by a process that is clearly flawed. However, proof has been given of an improved process with the experience to date using these amendments. The mining and exploration community includes first nations communities as we enter a new era in mining where first nations are valued partners in our business.
This partnership brings much needed economic wealth and opportunities to first nations in the Yukon where few opportunities sometimes exist.
I wish to reiterate some of the highlights from previous speakers.
Regarding section 49.1, non-significant modifications to a project, the nature of mining operations is that mine plans and ore bodies will change once they go into production. Very few operations ever know the ultimate number, size, and configuration of all ore bodies in a mine area prior to making a production decision. New ore bodies are often sought within existing mine areas. This process is termed brownfields exploration or within sight of the headframe. The same is true of exploration projects where plans change based on the last soil sample, the last rock sample, or last drill hole result. A completely new reassessment, including previously assessed impacts, should not occur where a mine may want to include a new ore body or an exploration project needs to drill some holes in a new discovery. Only the actual changes to a project need to be assessed.
Since Bill S-6, over 100 authorizations have been sought under the provision with over 60% approved, in other words, not requiring a reassessment of current activities. This section of the act is so widely used that a provision regarding the approval process was contained in an April 2016 memorandum of understanding between the federal, territorial, and Yukon first nations governments. In it a consent provision was provided to Yukon first nations.
The cost savings to proponents and governments is obvious. It is simply inefficient for any party to be reassessed on activities which have already been assessed or which result in a non-significant modification to a project. An example I have been personally involved in is the simple time extension to a project where a five-year expiration plan was approved, but due to the inability to raise capital to conduct expiration, only one year of the assessed plan was completed prior to the expiration date of that permit. An extension of four years to complete the plan was applied for under section 49.1 and was determined not significant and a complete reassessment of the plan was not required. That's common sense.
The current process for determining reassessments has resulted in a decreased pressure on the resources of first nations and YESAB, as well as other government departments that participate in assessments.
Moving on to timelines, under subsection 56(1), YESAB has the ability to elevate the level of review required for an assessment if it is unable to form a view as to whether the project, as proposed, should be recommended for approval. They can move it from designated office to executive committee to a panel review. There is no proposed timeline for this elevation decision, which can therefore result in unreasonable delays, significant costs, and potential legal action, which has already occurred in one case. In addition, no timelines previously existed for the time period that a project is deemed adequate. Mr. Thrall with Alexco provided excellent examples of the impact that can have on a project.
High-performing organizations have setting of targets, including timelines, as a key to superior performance. Proponents, Yukoners, governments, and YESAB itself, should accept no less than being a high-performing organization. Companies that invest in development or projects in the Yukon accept the risk of an approvals process and its timelines. However, that risk increases significantly without the application of specific timelines. Mining projects reaching the stage of undergoing an environmental assessment to go into production have invested millions of dollars, and the time value of money is very significant as they enter into the YESAB and permitting process. You cannot calculate the time value of money if you do not know the parameters for time.
The Yukon Chamber of Mines recognizes the increased pressure on the limited resources of Yukon first nations with the implemented timelines. Government support to increase capacity is essential for Yukon first nations to effectively participate within YESAB reviews in a timely manner.
The Yukon Chamber of Mines and our membership support the need for a robust environmental review process. We represent a science-based industry composed of geologists, engineers, tradespeople, and other professional and non-professional occupations, that has made and will continue to make significant investments in reducing the impact our business has on the environment. We do not want to save money at the expense of the environment. That is a myth.
We are at the forefront of reconciliation as we invest in the backyards of Yukon first nations. We are at the forefront of reconciliation as we partner with Yukon first nations and provide economic opportunities where, in many cases, few other opportunities exist.
We support the passage of Bill C-17 in order to reconcile with Yukon first nations. We urge the federal government to immediately engage with first nations governments and the Yukon government to find short-term administrative or long-term legislative solutions to the impact of the removal of the reassessments and timelines contained in Bill C-17. The impact of Bill C-17, without addressing these concerns, will have a serious negative impact on investment and mining and exploration projects in the Yukon.
The Yukon Chamber of Mines urges that this work be undertaken to implement solutions to these issues in advance of the passage of Bill C-17 to ensure continuity for all parties involved.
Thank you for the opportunity to speak to you today.