Mr. Speaker, I rise to address the House on Bill C-6, an act to amend the Yukon Quartz Mining Act and the Yukon Placer Mining Act.
I am extremely pleased to be introducing this legislation in the House. Bill C-6 is a made-in-the-Yukon solution to a circumstance that is unique to the Yukon, but that is of concern to all Canadians. It is a model of compromise and reason, and a major step forward in this government's efforts to foster sustainable development in the north.
By way of background, the Yukon Placer Mining Act and the Yukon Quartz Mining Act were enacted in 1906 and 1924 respectively. These acts provide for the administration of crown mineral rights and the collection of royalties in the Yukon. While they have effectively supported mining as the Yukon's number one industry for most of this century, the two acts contain no provisions to protect the environment. This situation is unacceptable to this government, to the vast majority of Yukon residents and to Canadians in general.
The integration of economic and environmental considerations in decision making is a guiding principle for this government. We are committed to protecting the environment while supporting the development of our resources in a way that will create jobs and economic prosperity for Yukoners and all Canadians.
Bill C-6 rectifies a long recognized gap in federal legislation for the Yukon. It authorizes the government of Canada to establish mining land use regulations for projects in the Yukon.
This legislation must be viewed as a major accomplishment for a number of reasons. Not the least of these is that it represents a compromise between divergent points of view held by different groups, views that have been reconciled to the point where we can proceed. This compromise did not come about overnight. It is the result of extensive consultations involving the industry, First Nations, environmental groups, the federal and territorial governments, and the general public.
As a result of these consultations, Bill C-6 is acknowledged by stakeholders to be the best legislation that could be developed. The Yukon Mining Advisory Committee, or YMAC, deserves special mention for its central role in the process of developing this legislation, consulting Yukoners and arriving at a consensus that allows us to proceed at this time.
YMAC was formed in 1990 to report to the Minister of Indian Affairs and Northern Development on how best to amend the legislation affecting mining activities in Yukon. It is comprised of representatives of the Klondike Placer Mining Association, the Yukon Chamber of Mines, the Yukon Conservation Society and the Council for Yukon First Nations, the Government of Yukon and the Government of Canada.
The involvement of all these groups reflects the importance of mining to the Yukon economy as well as the respect Yukoners have for the land and the life it supports. Despite the wide range of views brought to the table, YMAC was able to reach consensus on all but two provisions of this lengthy and technical bill. I will have more to say on those issues in a few minutes.
Bill C-6 must also be viewed as a major accomplishment because it will reinforce the government's commitment to sustainable development by providing for environmentally sound mining practices. By applying land use regulations for the first time to the early activities on mineral claims, the rules in the Yukon will become consistent with all other jurisdictions in Canada.
Within the context of sustainable development, this legislation is an important part of the ongoing process to create a more conducive environment for mining and to support economic development in the Yukon. This process complements the process of legislative reform required for implementing land claims settlements for Yukon First Nations.
As hon. members are aware, land claims final agreements have been signed with four Yukon First Nations. Hon. members will recall our consideration and passing of three bills to give effect to these agreements. Land claim negotiations are well-advanced with a number of others. In addition, some of these First Nations have already signed benefits agreements with mining companies.
Concerns that First Nations have about environmental protection on crown lands are addressed through Bill C-6. Yukon First Nations were involved in the work of the Yukon Mining Advisory
Committee and continue to be consulted on the regulations that will accompany this legislation.
The need to extend environmental regulations to all mining activities in the Yukon has long been recognized. The coming into force of the Canadian Environmental Assessment Act in 1994 has underlined this need.
As well, on December 29, 1995, the deficiencies in the current regime were made abundantly clear when the Federal Court of Canada ruled that the Yukon Quartz Mining Act and the Yukon Placer Mining Act were not subject to federal requirements for environmental assessment.
As I stated earlier, Bill C-6 strikes the compromises that are needed to rectify this situation and to avoid further court challenges. In addition to ensuring protection of the environment, it gives the industry an important measure of certainty on which to base their decisions and seek investment dollars.
I want to assure all hon. members that this legislation does not in any way affect the underlying rights of individuals or companies to acquire and hold mineral rights.
In fact, the existing two mining acts remain unchanged except for a few minor amendments related to environmental issues. Upon proclamation of Bill C-6, the original acts will become part I of the acts, and the environmental protection requirements we are considering today will become part II.
Hon. members can appreciate that this is a very complex and technical bill. I do not intend to discuss all of the provisions in detail today. However, I would like to review the key elements of the land use regime that will be put in place in Yukon.
Bill C-6 provides the necessary authorities for this regime, including the authority for the governor in council to make regulations. The details of the new regime will be contained in these regulations which are now being developed by the Department of Indian Affairs and Northern Development in consultation with all affected stakeholders in Yukon. In particular, special efforts are being made to involve Yukon First Nations in the consultation process.
Currently two sets of regulations are being developed: one for hard rock exploration and one for placer exploration and production. At a later date a third set of regulations under the Yukon Quartz Mining Act will be devised for hard rock development, production and mine site reclamation.
In addition to establishing the authority to regulate, Bill C-6 sets out the powers of the chief of mining land use who will be responsible for implementing the new regime in Yukon. It provides for the appointment of inspectors and gives them enforcement powers. It also includes a mechanism for appealing decisions, a process for the crown to recover any costs incurred in undertaking remedial work, provisions for requiring security deposits and for imposing penalties for non-compliance with the regulations.
One of the most important elements of this proposed legislation is the system of approvals it will establish for various levels of mining activities. Hardrock exploration and placer exploration and production activities will each be divided into four classes, ranging from those that will cause minor environmental disturbances to those that will have significant impacts. Separate licensing provisions are set out for producing quartz mines.
For both the Yukon Placer Mining Act and the Yukon Quartz Mining Act, the first class of activity will be for projects that create a minimum of environmental disturbance. An operator who decides that his activity falls into class 1 will not require approval before the project begins. However, the activity must conform to operating conditions that will be set out in the appendices to the land use regulations for both quartz and placer activities.
Such mining projects will be regularly inspected to ensure they fall within Class I and that they comply with the prescribed operating conditions. An example of a Class I activity set out in the draft regulations is the use of a mining camp by not more than five persons at any one time of for not more than a total of 150 person days in one year.
Class II mining projects willl involve a more intense level of activity that may require mitigative measures that go beyond the basic conditions set out for Class I projects. In this case, the operator is required to notify the Chief of Mining Land Use of the measures that will be taken to minimize any adverse environmental impacts. In recognition of the short exploration and placer season in Yukon, my department will have 25 days to respond to this notification. If no response is made, the operation may proceed without further administrative requirements.
Class III activities are those that will have significant potential to cause environmental impacts. A complete plan of the entire operation must be submitted to my department before work begins, including details on how the operator intends to mitigate the environmental impact. In this case, my department will have 25 days to respond to the applicant, but may during that time secure an extension of no more than 42 days to conduct its assessment.
The fourth and final class of activities will require the same approval process as Class III projects. However, public notifica-
tion of the proposed activity must also be given, and public consultation may be required. My department will have 42 days to respond to the application, with a potential extension period of an additional 42 days. A Class IV approval will also be needed when a placer project requires a water licence under the Yukon Waters Act .
Projects ranked as Class II, III or IV activities will fall under the provisions of the Canadian Environmental Assessment Act . The processing times I have just described can be extended where additional time is required to comply with the federal environmental assessment legislation. This will ensure that the impact of the mining activity on other land users will be considered during the assessment process.
As I mentioned earlier, YMAC was unable to reach agreement on only two issues of this bill: those dealing with penalties and levels of security. On these two issues the government has taken a middle of the road approach that has been endorsed by the majority of YMAC members. The security provisions, for example, strike a balance between the opposing views held by environmental groups, which were seeking large security deposits, and the mining industry, which felt that the deposits were unnecessary.
Bill C-6 gives the federal government the authority to require a security deposit up to the estimated cost of site reclamation when there is the potential for a significant environmental impact or there is a risk that another operator may not comply with the requirements of the approval. This fund will be returned to the operator when reclamation is completed to the government's satisfaction.
In addition, the government may require that remedial work be done and if the security is not sufficient to cover necessary costs the balance may be collected by civil action.
On the issues of penalties, these amendments will allow for fines of up to $100,000 for failing to comply with the terms of a project approval each day an infraction continues being a separate offence. This is consistent with the fines that can be laid in relation to similar land use activities in the north and I am convinced it will deter non-compliance.
Bill C-6 also provides a time frame for bringing the new land use regulations into effect. For quartz operations, there will be a six month phase-in period during which operators will be able to prepare and submit applications for their projects.
The land use regulations under the Yukon Placer Mining Act will come into effect after a full placer season has passed. The season is usually seven months.
During these phase-in periods, environmental standards will apply and inspectors will have the authority to issue orders to correct serious environmental, health or safety problems at mining operations. At the end of the phase-in, operators will be prohibited from undertaking Class II, III or IV activities without approval from the Chief of Mining Land Use.
The regulations now being developed will set out what lands will be subject to the new regime. Although Bill C-6 allows for the application of these amendments to all lands in Yukon, we will not unilaterally apply the regulations to lands on which the Crown does not own both the surface and subsurface. In other words, these regulations will NOT apply to lands on which the Yukon Territorial Government or First Nations administer the surface IF they have a management regime in place which meets or exceeds the regulations proposed under this bill. Hon. members should also be aware that this legislation is not retroactive.
The importance of this legislation cannot be overstated from either an environmental or an economic viewpoint. By establishing environmental protection requirements for mining projects in Yukon, Bill C-6 will fill the regulatory gap that does not exist in any other jurisdiction in Canada.
The environmental requirements in this bill are not excessive and will not impede the industry. They are generally considered to be consistent with good mining practices by ensuring that every planned mineral operation, except the low impact class one activities, will be environmentally scanned before they are allowed to commence.
From an economic perspective, Bill C-6 will help ensure the long term viability of mining in Yukon by establishing clear rules of operation and putting Yukon on a level playing field with other jurisdictions in Canada.
This bill will give First Nations the assurance of environmental protection that may encourage them to open their lands to mining exploration and development where beneficial. This in turn will generate revenues for First Nations as well as jobs for aboriginal and non-aboriginal northerners alike.
Bill C-6 would also ensure that taxpayers are not burdened with the cost of clean-ups and mine site reclamation. In future all mining industries will be more vigilant about preventing unnecessary damage to the environment and will be clearly responsible for corrective measures.
These are critical amendments that deserve the support of this House. We must take advantage of this important window of opportunity to establish environmental requirements for mining projects in Yukon. With that in mind, I urge hon. members to join me in supporting this legislation.