The Red Chris open pit mine, approximately 80 km south of Dease Lake, B.C. (Newcrest Mining photo)

B.C. should demand mining companies pay cleanup costs up front: Indigenous study

Auditor general recently found the costs of cleanup go beyond government’s surety by $1.4 billion

A report is urging B.C. to get better financial guarantees that mining companies will pay for the mess they make.

The First Nations who commissioned the study say that if the government doesn’t do it, they will.

“There’s clearly a recognition by the government and the courts that we have ownership and lands and we have jurisdiction and authority,” said Allen Edzerza of the B.C. First Nations Energy and Mining Council.

“What this report is suggesting is that maybe they should exercise some of that authority.”

The province is reviewing the rules by which it ensures that taxpayers aren’t stuck with the costs of cleaning up or caring for abandoned mines. The report points to several recent examples of the government being left to pay the costs, including at least $500,000 at one old gold mine.

Current legislation requires companies to put up more assets towards the end of a mine’s life. But the assets often depend, directly or indirectly, on the company’s value or on commodity prices.

B.C.’s auditor general recently concluded that the costs of mine cleanups exceed the surety held by the government by $1.4 billion.

That leaves the public at risk even with good-faith operators, said Jason Dion, a consultant who wrote the report.

“Even a big, well-capitalized mining company can go bankrupt,” he said.

“You’re essentially betting $1.4 billion on the continued financial viability of the mining sector. If there was commodity price downturn, you could see a number of mining companies going bankrupt.”

A better solution would be to require miners to put up hard assets out front that wouldn’t change value, said Dion.

Quebec has such a policy and leads the country in new mining investment.

B.C. chiefs are likely to pay close attention to what the report suggests, Edzerza said. “The chiefs will be very supportive of that approach.”

READ MORE: Five years later, accountability unresolved in Mount Polley mine disaster

Court decisions as well as the province’s recent recognition of the United Nations Declaration of the Rights of Indigenous Peoples ensure First Nations have a strong hand to play when it comes to mining development on their lands, said Edzerza.

“Clearly government has to change its approach,” he said. “If you’re going to mine, we think the reclamation has to be addressed properly.”

Edzerza said First Nations are in talks with B.C. on reforms to mining regulations, including on how cleanup guarantees are funded.

Other jurisdictions are doing a better job, said Dion. “On this front, British Columbia is a bit of a laggard.”

The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

BCTF rejects mediator’s recommendations for settlement

Negotiations between B.C. teachers and the province will continue

KCA marks Remembrance Day

Kootenay Christian Academy students and staff marked Remembrance Day with a poignant… Continue reading

Local society ramping up community outreach programs

A local society is stepping up efforts to address homelessness and poverty… Continue reading

Concerned citizen warns of ‘Reader’s Digest contest’ phone scam

A Cranbrook Townsman reader is warning the community about her experience being… Continue reading

Fundraising efforts underway for local girl diagnosed with leukemia

A 10-year-old Cranbrook girl was recently diagnosed with leukemia. Olivia Potorti and… Continue reading

VIDEO: Hong Kong police shoot protester, man set on fire

It was the second protester shot since the demonstrations began in early June

Sportsnet fires Don Cherry after negative comments about immigrants

Don Cherry had said immigrants don’t wear poppies like other Canadians do

Trudeau’s new cabinet: Gender parity because it’s 2019? Or due to competence?

Prime Minister Justin Trudeau will soon appoint his new cabinet

Canada among three G20 countries least likely to hit emissions targets

It says Canada, South Korea and Australia are the farthest off

Conservatives’ Scheer wants Trudeau to open Parliament Nov. 25

That’s five days after Justin Trudeau is scheduled to swear in a new cabinet

Last remaining Centurion tank from the Korean War makes its journey ‘home’ to B.C.

Tank arrives in B.C. the day before Remembrance Day after a more than 4,500-kilometre transfer

‘Your vehicle burns a lot of fuel:’ Victoria drivers wake up to angry notes

‘This handbill was left on your vehicle because your vehicle burns a lot of fuel,’ notes read

Canadians mark Remembrance Day this morning

This year exactly 101 years to the day after the end of the First World War

Devils strike early, hang on for 2-1 win over Canucks

Vancouver now 0-8-3 in last 11 games versus New Jersey

Most Read