Evidence of meeting #14 for Natural Resources in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was project.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Hilary Jones  General Manager, Mine Training Society
Donald Bubar  President and Chief Executive Officer, Avalon Rare Metals Inc.
Robin Goad  President, Fortune Minerals Limited
John F. Kearney  Chairman and Chief Executive Officer, Canadian Zinc Corporation
Richard Schryer  Director, Regulatory and Environmental Affairs, Fortune Minerals Limited

4:40 p.m.

Liberal

David McGuinty Liberal Ottawa South, ON

Thank you, sir.

Mr. Goad?

4:40 p.m.

President, Fortune Minerals Limited

Robin Goad

We are trying to negotiate impacts and benefits agreements right now. But right now the Tlicho government is not at the table to negotiate these kinds of agreements.

We have just recently completed—

4:40 p.m.

Liberal

David McGuinty Liberal Ottawa South, ON

Which kinds of agreements? Are they IBAs, impact and benefit agreements, or is it actual equity participation?

4:40 p.m.

President, Fortune Minerals Limited

Robin Goad

Equity participation would certainly be one of the issues that would be under negotiation as part of an IBA. We just completed agreements with the Tlicho to fund their participation in the environmental assessment process, to fund traditional knowledge as well as a cooperation agreement.

I made some comments about land-use issues being used to escalate demands. For example, our traditional knowledge funding agreement we have with the Tlicho is $370,000, which is about four times what is typical of these kinds of studies.

4:40 p.m.

Liberal

David McGuinty Liberal Ottawa South, ON

So you were making investments in tech, in capacity, presumably ultimately in health--

4:40 p.m.

President, Fortune Minerals Limited

Robin Goad

But they're escalating.

4:40 p.m.

Liberal

David McGuinty Liberal Ottawa South, ON

--but they're isolated and they're not--

4:40 p.m.

President, Fortune Minerals Limited

Robin Goad

No, they're escalating.

4:40 p.m.

Liberal

David McGuinty Liberal Ottawa South, ON

They're escalating, but there isn't an equity here, participation with these first nations folks, is there?

4:40 p.m.

President, Fortune Minerals Limited

Robin Goad

There's not currently an equity deal.

4:40 p.m.

Liberal

David McGuinty Liberal Ottawa South, ON

Are they asking for that, demanding that?

4:40 p.m.

President, Fortune Minerals Limited

Robin Goad

We're not at the table yet with impact and benefit agreements.

4:40 p.m.

Liberal

David McGuinty Liberal Ottawa South, ON

Okay.

Mr. Kearney.

4:40 p.m.

Chairman and Chief Executive Officer, Canadian Zinc Corporation

John F. Kearney

We have already signed impact and benefit agreements with two first nations, and under each agreement the relevant first nation participates in the projects for revenue sharing. So it's effectively, if you want to call it that, a type of royalty arrangement whereby a portion of the profit or of the revenue accrues to the first nation. It is necessary to have impact and benefit agreements, and under those agreements it has now become the norm to include revenue sharing or financial participation to secure the support of the relevant first nation. This support is essential to get a project permitted in the Northwest Territories.

The permitting system in the Northwest Territories is a co-management system. The boards are quasi-judicial. Because they're quasi-judicial, they're not like government agencies or departments. They're semi-independent and get their own legal advice. They do not respond to any federal authority, and as such, because they're a co-management system, they tend to be pro-environment.

Contrary to what you suggest, I would argue they should be pro-development. The purpose of the board is to issue permits, not to stop them being issued. I'm suggesting there needs to be a champion to negative the anti-development argument. The ministry of mines and economic development needs to be there as an advocate for development and for mine projects to counter the dominance of the environmental argument and the anti-argument.

4:40 p.m.

Conservative

The Chair Conservative Leon Benoit

You're out of time, Mr. McGuinty. Thank you.

4:40 p.m.

Liberal

David McGuinty Liberal Ottawa South, ON

Thank you, sir.

4:40 p.m.

Conservative

The Chair Conservative Leon Benoit

We'll go to the five-minute round now and we are starting with Mr. Anderson.

Go ahead, please.

4:40 p.m.

Conservative

David Anderson Conservative Cypress Hills—Grasslands, SK

Thank you, Mr. Chair.

Mr. Goad and Mr. Kearney, I'm just wondering if you have the same concerns about the regulatory processes as Mr. Bubar. You've expressed some concerns, but would you put it in the same words as he has?

4:40 p.m.

President, Fortune Minerals Limited

4:40 p.m.

Conservative

David Anderson Conservative Cypress Hills—Grasslands, SK

Okay, thank you.

Has the process in Saskatchewan sped up in the last few years? Is it better now than it was five years ago, or has it pretty much stayed the same?

4:40 p.m.

Director, Regulatory and Environmental Affairs, Fortune Minerals Limited

Dr. Richard Schryer

We only have the singular experience in Saskatchewan, so I don't think we can have an answer to that.

4:40 p.m.

Conservative

David Anderson Conservative Cypress Hills—Grasslands, SK

Okay.

While you were talking about the approval process, it sounded as if the length of the process is the issue. That's what everybody has gone on about. I'm wondering if you are comfortable with the requirements. When this committee makes its report, are there ways we might be able to improve the requirements that are needed to reach approval? Are things duplicated in terms of requirements, or is your main concern the length of the process?

4:45 p.m.

Conservative

The Chair Conservative Leon Benoit

Mr. Kearney, go ahead, please.

4:45 p.m.

Chairman and Chief Executive Officer, Canadian Zinc Corporation

John F. Kearney

There are significant duplications and overlaps. For example, you could have seven government departments each independently submitting a report to the review board. Each of those seven departments comments on everything, instead of just commenting on what might concern them. There's significant waste and duplication at the government level, where there is no coordination, or not enough coordination, between the reports that are submitted by the government departments to the review board. So, no, I wouldn't say we're comfortable with the process. The process is too cumbersome, and it's not just timelines. The whole process is way too complex, way too uncertain, and needs to be reconstructed from the ground up, frankly, but because it's a function of the land claims, that's quite difficult to do.

The aboriginal governments know it's wrong too, so everybody needs to get back to the drawing board and ask how to fix this. It's not a tinkering; it's got to be reconstructed.

4:45 p.m.

Conservative

David Anderson Conservative Cypress Hills—Grasslands, SK

Mr. Schryer.