Panel Report

TERMS OF REFERENCE FOR THE ENVIRONMENTAL ASSESSMENT REVIEW OF A URANIUM MINING DEVELOPMENT AT SOUTH MCMAHON LAKE

MANDATE

1. The panel shall review the environmental, health, safety and socio-economic impacts (hereinafter referred to as "impacts") of the proposed uranium mine development (listed in Schedule A) in northern Saskatchewan and assess its acceptability.

In assessing the acceptability of the proposed development, the panel will include in its review and consider:

1. the historical experience with past and existing uranium mining operations in Saskatchewan;
2. the cumulative impacts of existing operations and the proposed development;
3. the short and long term impacts of the proposed project, spanning its construction phase, operating period, decommissioning phase and postdecommissioning phase;
4. the impact of employment and socio-economic opportunities afforded northern residents by the proponent and the measures necessary for the implementation of those opportunities;
5. the adequacy of measures proposed by the project proponent to protect environmental quality and to safeguard worker health and safety, and whether the measures can be expected to meet the requirements of Canadian and Saskatchewan law, regulations and policies applicable to uranium mine developments;
6. the adequacy of monitoring, enforcement and compliance systems to ensure that measures necessary for mitigating adverse impacts can be implemented; and
7. the benefits afforded by the proposal.

2. The panel shall determine from its review whether the project is acceptable or unacceptable.

In concluding that the project is acceptable, the panel may recommend that specified minimum terms and conditions, including any mitigative measures or any other measures relating to the impacts under the panel's review, be implemented where it considers these necessary for the protection of health, safety and the environment or for dealing responsibly with socio-economic concerns. The panel may also suggest measures that it considers would enhance the acceptability of the proposal.

If the panel concludes the project is unacceptable, it shall provide its reasons for this conclusion.

3. In fulfilling its mandate, the panel shall provide full opportunities for public consultation and review.

REVIEW PROCEDURES

Detailed written procedures for conducting the review established by the panel and made available to the public pursuant to the review of other projects in its mandate shall apply to the review of this project.

TECHNICAL EXPERTS

The panel may secure the services of independent technical experts to assist and advise on complex technical and/or socio-economic issues related to its mandate. Such experts will also be available to respond to inquiries from review participants.

STAGES OF THE REVIEW

Schedule A lists the proposal to be reviewed by the panel, which is a different proposal for the mining of an ore body of one of the projects on which the panel has already reported. The proposal in Appendix A has been referred due to potentially significant or unknown adverse environmental effects and public concern.

The panel will seek public comment on the Environmental Impact Statement (EIS) and determine its adequacy before proceeding to public hearings. When the panel is satisfied with the information provided, including that with respect to the cumulative impacts, it may report on the project to the Ministers as described in the following stages of the review.

In reviewing the EIS for the proposal listed in Appendix A, the panel shall include among its considerations:

• its earlier review and report on the initial proposal to mine this orebody;
• concerns raised by governments in decisions and responses to the initial proposal;
• the adequacy of the proponent's response to project specific guidelines issued by government to the proponent for use in preparation of the EIS; and
• the type of information requested in the Guidelines prepared for the remaining two proposals under panel review (Cigar Lake and McArthur River Projects), where relevant to the proposal.

The cumulative impacts of the proposal in Appendix A will be considered when the EIS document has been submitted. The stages of the review following submission of this document to the panel are outlined below. The panel shall submit its final report on the proposal within 18 months of receipt of the proponent's EIS.

1. Review of Information

1. Review of the available information on the environmental, health, safety and socio-economic impacts of the uranium mining industry in Saskatchewan to date. The information and any related reports prepared will be made available to the public.
2. Review of the past performance of the uranium mining industry in providing employment and socio-economic opportunities to northern residents. The information and any related reports prepared will be made available to the public.
3. Review by the panel of Environmental Impact Statement (EIS) submitted by the proponent. The EIS will also be made available to the public for review and written comment.
4. The panel may draw on the proponent, technical agencies from within federal or provincial governments, independent experts and the public for available information.

2. Should the panel, after reviewing the above information and considering public comments, deem the EIS deficient, it may request additional information from the project proponent.

3. Once the panel is satisfied with the information provided, it will announce public hearings for the project. If appropriate, the hearings may be structured to address at the same time any other of the projects still under review by the panel (Cigar Lake or McArthur River Projects).

For the purpose of promoting public awareness and facilitating public comment, the panel will hold meetings and/or hearings in the appropriate northern communities, Regina, Saskatoon and in such other Saskatchewan communities as the panel may think necessary.

4. When the panel is in a position, following the completion of public hearings, to provide a report on its findings, conclusions and recommendations relevant to the specific project, it will submit the report to the federal Ministers of Environment and of Natural Resources and to the Saskatchewan Minister of Environment and Resource Management.

The panel should, to the extent possible, ensure that the timely review of the project is not jeopardized by delays in the review of any other project included in its mandate.

LINKAGE TO OTHER POLICY PROCESSES

The panel is not expected to interpret its mandate so as to duplicate the work of other public inquiries and policy processes or to focus on national or international issues which are not directly related to the impacts of the proposal.

However, concerns may be raised by the public which extend beyond the impacts of direct concern to the panel, and in such cases the panel will ensure that the public is provided a reasonable opportunity to express these concerns.

SCHEDULE A

1. South McMahon Lake Project
   Midwest Joint Venture (Minatco Ltd.)