The Red Chris open pit mine, approximately 80 km south of Dease Lake, B.C. (Newcrest Mining photo)

B.C. should demand mining companies pay cleanup costs up front: Indigenous study

Auditor general recently found the costs of cleanup go beyond government’s surety by $1.4 billion

A report is urging B.C. to get better financial guarantees that mining companies will pay for the mess they make.

The First Nations who commissioned the study say that if the government doesn’t do it, they will.

“There’s clearly a recognition by the government and the courts that we have ownership and lands and we have jurisdiction and authority,” said Allen Edzerza of the B.C. First Nations Energy and Mining Council.

“What this report is suggesting is that maybe they should exercise some of that authority.”

The province is reviewing the rules by which it ensures that taxpayers aren’t stuck with the costs of cleaning up or caring for abandoned mines. The report points to several recent examples of the government being left to pay the costs, including at least $500,000 at one old gold mine.

Current legislation requires companies to put up more assets towards the end of a mine’s life. But the assets often depend, directly or indirectly, on the company’s value or on commodity prices.

B.C.’s auditor general recently concluded that the costs of mine cleanups exceed the surety held by the government by $1.4 billion.

That leaves the public at risk even with good-faith operators, said Jason Dion, a consultant who wrote the report.

“Even a big, well-capitalized mining company can go bankrupt,” he said.

“You’re essentially betting $1.4 billion on the continued financial viability of the mining sector. If there was commodity price downturn, you could see a number of mining companies going bankrupt.”

A better solution would be to require miners to put up hard assets out front that wouldn’t change value, said Dion.

Quebec has such a policy and leads the country in new mining investment.

B.C. chiefs are likely to pay close attention to what the report suggests, Edzerza said. “The chiefs will be very supportive of that approach.”

READ MORE: Five years later, accountability unresolved in Mount Polley mine disaster

Court decisions as well as the province’s recent recognition of the United Nations Declaration of the Rights of Indigenous Peoples ensure First Nations have a strong hand to play when it comes to mining development on their lands, said Edzerza.

“Clearly government has to change its approach,” he said. “If you’re going to mine, we think the reclamation has to be addressed properly.”

Edzerza said First Nations are in talks with B.C. on reforms to mining regulations, including on how cleanup guarantees are funded.

Other jurisdictions are doing a better job, said Dion. “On this front, British Columbia is a bit of a laggard.”

The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

Pottery show supports Vernon street nurse

Cammy LaFleur Street Nurse Outreach Program benefactor of Nov. 16 show and sale

Special Vernon theatre showing for Dorothy Alexander Centre

Powerhouse Theatre presents Game’s Afoot or Holmes for the Holidays

Silver lining to Vernon poppy tin theft

Vendors, customers at Vernon Farmers’ Market’s customer appreciation day help replenish stolen funds

New Vernon operatory opens doors for more affordable care

Vernon Community Dental Access Centre knocks down barriers for low-income citizens

Vernon car fire deemed suspicious

SUV found fully engulfed with nobody around at 4 a.m. Tuesday on Commonage Road

‘We love you, Alex!’: Trebek gets choked up by ‘Jeopardy!’ contestant’s answer

The emotional moment came in Monday’s episode when Trebek read Dhruv Gaur’s final answer

Birthday boy: Pettersson nets 2 as Canucks beat Predators

Vancouver ends four-game winless skid with 5-3 victory over Nashville

‘Homes not shelters’: Those living on Kelowna streets rally for rights

On Tuesday, Leon Avenue residents came together to demand change

Judge rejects Terrace man’s claim that someone else downloaded child porn on his phone

Marcus John Paquette argued that other people had used his phone, including his ex-wife

Police surround Peachland neighbourhood

The incident in Peachland is now over

Penticton arts, culture and sports programs get boost of over $500,000 thanks to provincial grant

The B.C. Community Gaming Grants program will be distributing $505,900 to 18 local groups

Okanagan school districts reach agreement with CUPE Local 523

The union represents members who provide a variety of services to support students

Petition for free hospital parking presented to MP Jody Wilson-Raybould

What started as a B.C. campaign became a national issue, organizer said

Special theatre showing for Okanagan’s Dorothy Alexander Centre

Powerhouse Theatre presents Game’s Afoot or Holmes for the Holidays

Most Read