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

Allocation of Federal Funds for the Schaft Creek Mine Project

The Participant Funding Program (PFP) is established pursuant to 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.

A Funding Review Committee (FRC) was established independent of the environmental assessment (EA) of the Schaft Creek Mine Project (the Project), which is being conducted by means of a comprehensive study (CS). Its purpose was to assess applications received under the PFP – Regular Funding Envelope (RFE) 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 RFE for this project, a total of $50,000 was made available to support public input to the Environmental Impact Statement (EIS), and to review and provide comment on the Comprehensive Study Report (CSR). Three applications were received, for a total funding request of $21,800.

On February 3 and 9, 2011, the FRC met to review the applications. The FRC members were Paul Scott, retired Regional Director of the Agency's Pacific and Yukon office, acting as Committee Chairperson; Ray Crook, EA Consultant; and Patrick Duffy, EA consultant.

Background

Copper Fox Metals Inc. (the Proponent) is proposing to develop the Schaft Creek Mine Project to process about 812 million tonnes of measured and indicated mineable base and precious metals resources (copper, gold, molybdenum, and silver). Copper Fox Metals Inc.'s proposal (which forms the scope of the Project to be considered in the EA) is to develop an open pit polymetallic mine approximately 60 kilometres south of Telegraph Creek, in northwest British Columbia (BC), with a proposed ore production rate of up to 150,000 tonnes per day over a minimum 15-year operation period.

The Project will utilize conventional truck and shovel equipment and typical drill and blast techniques, and will include an explosives storage facility. The ore will be crushed, milled and filtered on-site to produce ore concentrates. The Project will also include an access road and a 287-kilovolt transmission line within the Mess Creek watershed. The mine pit, plant/mill, and waste rock storage facilities are proposed to be located along the east bank of Schaft Creek. An airfield capable of handling Boeing 737s will also be constructed to the east of the pit. The tailings impoundment area will be located within the Skeeter Creek watershed (a tributary of Schaft Creek). Camp facilities to house and feed workers (approximately 700 anticipated direct employees during operation) are also part of the Project scope. Copper Fox Metals Inc. also proposes to transport the ore concentrates by way of truck along Highways 37 and 37A to the Port of Stewart, BC, for onward ocean-going shipment to markets.

All project components are located on provincial Crown land, with no federal land involved. Early studies have indicated that the proposed tailings impoundment area does not contain fish (barrier downstream), and therefore a Metal Mining Effluent Regulations exemption is not believed to be required.

This project is not subject to the major resource project initiative (the Initiative) as it entered the EA process prior to the Initiative. The Agency will exercise the powers and perform the duties and functions of the federal Responsible Authorities (RAs) until submission of the CSR to the Minister of the Environment. Natural Resources Canada, Fisheries and Oceans Canada, and Environment Canada are confirmed RAs with Explosives Act responsibilities, Fisheries Act responsibilities, and International River Improvements Act responsibilities, respectively. Transport Canada is a potential RA with potential Navigable Waters Protection Act responsibilities. Health Canada is participating as a federal authority to provide expert advice (e.g. health issues, country foods).

Eligibility

Under the RFE of the PFP, funding may be provided to applicants to support their input to an EA. These activities must be linked to the EA of a proposed project through a comprehensive study, mediation or review panel.

To be eligible for funding, applicants must demonstrate that they meet one of the following eligibility criteria:

  • 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; or
  • have expert information relevant to the anticipated environmental effects of the Project.

Only one of the applications received was deemed to have met at least one of these criteria; therefore only one applicant was found to be eligible for funding.

Under the PFP - RFE, applicants can request funding for costs related to:

  • Professional fees;
  • Staff salaries and benefits;
  • Travel expenses;
  • Administration and reporting;
  • Other expenses related to local collection and distribution of information;
  • Office supplies and telephone charges;
  • Rental of office space and meeting rooms;
  • Legal fees;
  • General media and advertising and promotion;
  • Purchase of information material; and
  • Other detailed expenses, with supporting information.

Rationale for Allocation

The FRC concluded that two of the three applicants did not meet the eligibility criteria of the PFP. In one case, the applicant was unable to provide supporting information for the criterion selected for eligibility, while the second applicant was requesting funding for activities and research for which, under the EA process, management responsibility falls to either the local Aboriginal groups or the Agency.

Recommendation

The FRC recommends awarding $8,000 of the available funding to the Skeena Watershed Conservation Coalition to support public participation in the EA of the Project.

The FRC further recommends that a condition of any funding award be that the funding recipient must provide input to the EA through comments on the following documents: the EIS and the CSR.

The Participant Funding Review Committee
Schaft Creek Mine Project - Regular Funding Envelope

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Paul Scott, Committee Chairperson, Retired Regional Director of the Agency's Pacific and Yukon Office

__________________________________
Patrick Duffy, Environmental Assessment Consultant

__________________________________
Ray Crook, Environmental Assessment Consultant

Recommended Participant Funding Allocation
Schaft Creek Mine Project - Regular Funding Envelope

Applicant Total award amount recommended
Richard Janda $0
Ross Holden $0
Skeena Watershed Conservation Coalition $8,000
TOTAL $8,000

Document Reference Number: 6

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