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

Allocation of Federal Funds for the Environmental Assessment of the Cliffs Chromite 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. The PFP includes an 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 the Cliffs Chromite 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 $204,600 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) Guidelines;
  • review and comment on the EIS; and
  • review and comment on the Comprehensive Study Report (CSR).

The deadline to submit an application was originally December 5, 2011, with an extension to January 11, 2012. Six applications were received requesting a total of $173,998.68.

On January 16, 19 and 23, 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 FRC Chairperson; Mr. Patrick Duxbury, Environmental Assessment Consultant; and Ms. Patricia Larkin, Environmental Health Specialist.

Background

Cliffs Natural Resources Inc. (the proponent) proposes an open pit/underground chromite ore mine (30 year mine life at predicted extraction rate of 6,000 to 12,000 tonnes/day) and ore processing facility. The proposal also includes an integrated transportation system consisting of a new north-south all-weather access road corridor and a new ferrochrome production facility, which would be located at a different location than the mine site. The project mine site is located approximately 540 km north of the City of Thunder Bay, Ontario and 240 km west of James Bay in an area known as the "Ring of Fire".

Based on the initial analysis of the Project, the Agency anticipates that Fisheries and Oceans Canada, Transport Canada and Natural Resources Canada have section 5 responsibilities under the Canadian Environmental Assessment Act. The Project as proposed by the proponent is listed on the Comprehensive Study List Regulations.

This project is also subject to the environmental assessment requirements of the Government of Ontario.

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.

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

  • whether 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 maximum funding available to the applicant;
  • potential project impacts on traditional lands and resources, and on the related interests and asserted rights and title of the Aboriginal applicants; and
  • the eligible activities under the PFPAFE for the Project, which include review and comment on the EIS Guidelines, the EIS and the CSR.

Recommendation

The FRC recommends allocating $122,098.68 of the available AFE funding to support the six applicants as follows:

  • $21,398.68 to Wahnapitae First Nation
  • $28,200.00 to Webequie First Nation
  • $15,900.00 to Métis Nation of Ontario Secretariat, on behalf of Geraldton and Area Métis Council and Sudbury Métis Council
  • $22,050.00 to Aroland First Nation
  • $27,350.00 to Neskantaga First Nation
  • $7,200.00 to Temagami First Nation

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

The Funding Review Committee
Cliffs Chromite Project
Aboriginal Funding Envelope

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

__________________________________________________
Patrick Duxbury, Environmental Assessment Consultant

__________________________________________________
Patricia Larkin, Environmental Health Specialist

Recommended Participant Funding Allocations
Cliffs Chromite Project
Aboriginal Funding Envelope

Applicant Total Allocation Amount Recommended
Wahnapitae First Nation $21,398.68
Webequie First Nation $28,200.00
Métis Nation of Ontario Secretariat, on behalf of Geraldton and Area Métis Council and Sudbury Métis Council $15,900.00
Aroland First Nation $22,050.00
Neskantaga First Nation $27,350.00
Temagami First Nation $7,200.00
TOTAL $122,098.68

Document Reference Number: 8

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