Participant Funding Program – Aboriginal Funding Envelope
Funding Review Committee's Report

Allocation of Federal Funds for Phase II of the Environmental Assessment of the Proposed KSM (Kerr-Sulphurets-Mitchell) Project

The Participant Funding Program (PFP) is established pursuant to subsection 58(1.1) of the former Canadian Environmental Assessment Act, which states: For the purposes of this Act, the Minister shall establish a participant funding program to facilitate the participation of the public in comprehensive studies, mediations and assessments by review panels. The PFP also includes Aboriginal Funding Envelope (AFE) to strengthen the ability of Aboriginal groups to participate in federal or joint federal-provincial environmental assessment (EA) processes, and in related consultation activities.

A Funding Review Committee (FRC) independent of the EA was established for Phase II of the EA for the proposed KSM (Kerr-Sulphurets-Mitchell) Project (the Project). The EA of the Project is being conducted by means of a comprehensive study (CS). The FRC's purpose was to assess funding applications received under the PFPAFE for the proposed project, and to provide recommendations to the President of the Canadian Environmental Assessment Agency (the Agency) on whether funding should be provided, and if so, in what amount.

Under the AFE for this project, a total of $104,150 was made available to support Aboriginal participation in the EA, and related consultation and community engagement activities linked to the:

  • review and comment on the Environmental Impact Statement (EIS) Summary or the EIS; and
  • review and comment on the Comprehensive Study Report (CSR).

The deadline to submit an application was September 10, 2012. Five complete applications were received requesting a total of $83,200.

On September 18, 2012, the FRC met to review the applications. The FRC members were: Mr. Bruce Young, retired Director of Panel Management with the Agency, acting as Committee Chairperson and Mr. Patrick Duxbury, Environmental Assessment Consultant.

Background

Seabridge Gold Incorporated proposes to develop a copper, gold and silver deposit located approximately 65 kilometres northwest of Stewart, British Columbia. The proposed development would include three large open pits, waste rock storage dumps, an ore grinding circuit, and small hydroelectric projects located in the Sulphurets Creek drainage of the Unuk River. Ground ore would be transported via a slurry pipeline through a tunnel to an ore concentrator plant and tailings management facility (tailings impoundment area) located in the Treaty and Teigen Creek drainages of the Bell-Irving River. New roads to access the site are proposed from Highway 37 to the plant and tailings management facility site along the Teigen Creek valley, and from the existing Eskay Creek road to the open-pit mine area along the Unuk River and Sulphurets Creek valleys. Power for the mine site will likely be provided from the future BC Hydro transmission line that is proposed to be built along Highway 37. The proposed mine development would also include a camp, explosives factories and magazines, buildings and supporting infrastructure. The mine is expected to process between 100,000 to 120,000 tonnes per day of ore over a anticipated mine life of at least 30 years.

Eligibility

Under the PFPAFE, funding may be provided to Aboriginal applicants to support their input to an EA and/or to support their engagement in consultation activities with the Federal Government. These activities must be linked to the EA of a proposed project through a CS, mediation or review panel.

Eligible recipients must plan to engage in Aboriginal consultation activities with the Federal Government that are linked to the EA of the proposed project, and be able to demonstrate that they meet at least one of the following eligibility criteria:

  • Have a direct, local interest in the Project, such as living or owning property in the project area;
  • Have community knowledge or Aboriginal traditional knowledge relevant to the EA; or
  • Have expert information relevant to the anticipated environmental effects of the Project.

The five applicants were deemed to have met the eligibility criteria.

Under the PFPAFE, applicants can request funding for costs related to:

  • professional fees;
  • staff salaries and benefits;
  • travel expenses;
  • honoraria for Elders and Chiefs to attend meetings and functions;
  • ceremonial offerings related to receiving traditional knowledge in relation to the EA;
  • administrative and reporting costs;
  • local collection and/or distribution of information;
  • office supplies and telephone charges;
  • rental of office space and meeting rooms;
  • legal fees;
  • general media advertising and/or promotion;
  • purchase of information material, with supporting documentation; and
  • other detailed expenses.

Rationale for Allocation

In reviewing the five applications and in reaching its conclusions and recommendations, the FRC took into consideration a number of factors, including the following:

  • Whether the Aboriginal groups could demonstrate that they plan to engage in Aboriginal consultation activities with the federal government that are linked to the EA of the proposed project.
  • The ability of the Aboriginal groups to demonstrate that they had met one or more of the eligibility criteria listed above.
  • The quality, clarity and content of the application, particularly with respect to the relationship between specific project components and the applicant's traditional lands and resources, and the applicant's proposed EA participation work plan.
  • Advice received from the Agency regarding which Aboriginal groups are expected to be participants in the EA, and the role that these groups may play in the review.
  • The eligible activities under the PFPAFE for the Project, which include the review and comment on the EIS Summary or the EIS and the CSR.
  • The extent to which the proposed activities meet the requirements of the PFPAFE.
  • The maximum funding available to the applicants.

Recommendation

The FRC recommends allocating $82,700 of the available AFE funding to support the five applicants as follows:

  • $20,950 to the Gitxsan Treaty Society, on behalf of the Gitxsan Hereditary Chiefs
  • $13,150 to the Gitanyow Huwilp Society, on behalf of the Gitanyow Hereditary Chiefs
  • $20,950 to the Tahltan Central Council, on behalf of the Tahltan Nation
  • $6,700 to the Métis Nation British Columbia
  • $20,950 to the Nisga'a Lisims Government, on behalf of the Nisga'a Nation

The FRC further recommends that any funding allocation be conditional on the applicants' providing written comments to the Agency on the EIS Summary or the EIS, and the CSR.

Recommended Participant Funding Allocations
Phase II, KSM (Kerr-Sulphurets-Mitchell) Project
Aboriginal Funding Envelope

Applicant Total Allocation Amount Recommended
Gitxsan Treaty Society, on behalf of the Gitxsan Hereditary Chiefs $20,950
Gitanyow Huwilp Society, on behalf of the Gitanyow Hereditary Chiefs $13,150
Tahltan Central Council, on behalf of the Tahltan Nation $20,950
Métis Nation British Columbia $6,700
Nisga'a Lisims Government, on behalf of the Nisga'a Nation $20,950
TOTAL $82,700

The Funding Review Committee
Phase II, KSM (Kerr-Sulphurets-Mitchell) Project
Aboriginal Funding Envelope

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Bruce Young, Committee Chairperson, retired Director of Panel Management with the Agency

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Patrick Duxbury, Environmental Assessment Consultant

Document Reference Number: 12

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