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

‘Pets R Family 2’ welcomes pet grooming to their Barriere store

By Elli Kohnert Barriere’s pet supply store has a new service in-house.… Continue reading

RCMP extending Barriere Block Watch to detachment coverage area

Block Watch meetings are held the fourth Thursday of each month at 7 p.m. at the Barriere Ridge

Simpcw First Nation’s business arm brings national recognition

By Sam Laskaris Cando Contributor The Simpcw First Nation is proof that… Continue reading

Yoga can be “silly” for kids at the Barriere Ridge

The Kids Yoga program at the North Thompson Activity Centre in the… Continue reading

Cadets starting troop in Barriere

Rocky Mountain Rangers Army Cadets have been working hard to get a… Continue reading

Community uses loophole to paint 16 rainbow crosswalks after B.C. council says no

So far 11 rainbows are painted and five planned, all since council denied the first proposal in September

Adoption centre closes despite effort to save it; B.C. left with two agencies

Choices Adoption and Pregnancy Counselling in Victoria was set to close in April

NDP Leader Jagmeet Singh to meet with Trudeau today to discuss throne speech

Top ask will be for Liberal support for the immediate creation of a national universal pharmacare program

B.C. set to announce changes around youth vaping, regulations

Move will involved education, tightening access, working with partners and pressuring the federal government

Yelling at your dog might hurt its long-term mental health: study

Researchers find dogs trained using negative reinforcement are more ‘pessimistic’

Vancouver Island soap company releases Lucky Lager beer soap

Beer-infused olive oil soap comes out just in time for holiday shopping

Jagmeet Singh says he’ll vote against throne speech if NDP requests not met

Singh is to meet with Prime Minister Justin Trudeau on Thursday

Workers’ camp at LNG facility in Kitimat takes shape

Extensive worker camp now being assembled

Most Read