Participant Funding Program Review Committee's Report
Aboriginal Funding Envelope

Allocation of Funds for Participation in Phase I of the Comprehensive Study of the Kerr-Sulphurets-Mitchell Gold-Copper Mine Project

The Participant Funding Program (PFP) was set up pursuant to the legislative provision contained in subsection 58(1.1) of the Canadian Environmental Assessment Act (the 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 an Aboriginal Funding Envelope (AFE) to strengthen the ability of Aboriginal groups to participate in federal or joint environmental assessment (EA) processes and in related consultation activities.

A Funding Review Committee (FRC), independent of the review process, was established to assess applications for funding under Phase I of the AFE for the Kerr-Sulphurets-Mitchell Gold-Copper Mine Project (the Project) and recommend a funding allocation to the applicants. Under Phase I of the AFE, a total of $80,000 was made available to enable applicants to participate in the early stages of the comprehensive study process for the Project. Phase I funds are to support Aboriginal groups' input to the proposed scope and track of the EA. Further funding is expected to be available later (for Phase II of the EA process) to support Aboriginal groups' input to the Environmental Impact Statement and the comprehensive study report.

On December 10, 2009, the FRC met to review five applications received by the PFP-AFE, requesting a combined total of $692,213.75. The FRC members were Mr. Paul Scott, retired Regional Director of the Canadian Environmental Assessment Agency's (the Agency) Vancouver office, acting as Committee Chairperson; Mr. Ray Crook, Environmental Assessment Consultant; and Dr. George Kupfer, Environmental and Socio-Economic Consultant.

Background

Seabridge Gold Inc. proposes to develop gold and copper deposits located in the Kerr, Sulphurets and Mitchell Creek drainages, which are about 65 km northwest of Stewart, British Columbia. The Project, as proposed by the proponent, would process 100,000 to 120,000 tonnes per day of ore over a 30-year mine life. The proposed project represents one of the world's largest undeveloped gold-copper deposits, and is expected to involve $4.1 billion in capital investment and $9.1 billion in total economic activity over the lifespan of the Project.

 

The proponent and its consultants submitted a project description to the British Columbia Environmental Assessment Office (BCEAO) and the Canadian Environmental Assessment Agency (the Agency) on April 25, 2008 and to the federal government's Major Projects Management Office on May 5, 2008. The Project was one of the first projects to qualify for inclusion in the government's new approach to the regulatory review of major resource projects.

The Project is subject to review under the Act. The Project is also subject to review under the British Columbia Environmental Assessment Act, and a cooperative EA is being coordinated with the BCEAO.

On July 23, 2009, the federal responsible authorities under the Act issued a Notice of Commencement confirming that the Project would be subject to a comprehensive study. Responsible authorities have begun to identify the proposed scope of both the Project and the assessment. The next step will be to seek Aboriginal and public comment with respect to the proposed scope of the project, the factors proposed to be considered in its assessment, the proposed scope of those factors, and the ability of the comprehensive study process to address issues relating to the Project. Following that consultation, the responsible authorities will submit a track report to the Minister of the Environment for a decision whether to continue the EA as a comprehensive study, or to refer it to a mediator or to a review panel.

Eligibility

Under the PFP-AFE, funding may be provided to Aboriginal groups who plan to engage in Aboriginal consultation activities with the federal government that are linked to the EA of a proposed project through a comprehensive study, mediation or joint review panel. The funds can be used to support their engagement in consultation activities and their input to the EA.

The applicants must demonstrate that they meet at least one of the following three eligibility criteria. They must:

• have a direct, local interest in the Project, such as a residence in the area or historical or cultural ties to the area likely to be affected by the Project;
• have community knowledge or Aboriginal traditional knowledge relevant to the EA; and/or
• have expert information relevant to the anticipated environmental effects of the Project.

Funding from other sources made available to or received by Aboriginal groups related to the review of the Project is examined and considered by the FRC, as are any partnerships between the applicants and other participants in the project assessment.

All five of the applicants for Phase I funding were found to be eligible for funding, based on the above criteria. The FRC is aware that all of the applicants have already received some funding from the Province of British Columbia, but not for Phase I activities which are the focus of the current funding initiative.

Rationale for Allocation

The FRC concluded that all five of the Aboriginal organizations that applied for funding have legitimate and potentially important roles to play in the EA. However, the FRC found that none of the applications provided a clear indication of how the funds applied for would be used to provide input into Phase I of the review. In fact, most of the applicants appeared to be applying for funds to participate throughout all phases of the federal EA, and not just Phase I.

Recommendation

The FRC recommends the allocation of all available Phase I funding, totalling $80,000, to the applicants to participate in the early stages of the comprehensive study process. The FRC believes that the following three activities would qualify for Phase I funding and recommends that any funding agreements entered into between the Agency and the applicants clearly state that the Phase I funding activities be limited to these activities:

1. Education of communities about the Project and the EA process to be followed;
2. Consultation on the scoping document to be issued by the federal responsible authorities; and
3. Meetings with the Agency and federal responsible authorities.

The Participant Funding Review Committee
Kerr-Sulphurets-Mitchell Gold-Copper Mine Project

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Mr. Raymond L. Crook, Environmental Assessment Consultant

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George Kupfer, Ph.D., Environmental and Socio-Economic Consultant

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Mr. Paul Scott, Committee Chairperson
Retired Regional Director of the Agency's Vancouver office

Recommended Phase I Participant Funding Allocations
Kerr-Sulphurets-Mitchell Gold-Copper Mine Project

Aboriginal Funding Envelope

Applicant	Total amount recommended
Gitxsan Treaty Society	$20,000
Wilp Wii'Litsxw - Txawokw	$8,750
The TseTsaut Consultation Society – Skii Km Lax Ha	$7,875
Nisga'a Nation	$23,375
Tahltan Central Council	$20,000