Governments must reform Canada’s EA process

There is a modern “gold” rush underway in British Columbia, led by copper, gold and steel-making coal developments. To ensure all British Columbians share the economic benefits from mineral exploration and mining, a dedicated government effort at all levels is necessary to reform the environmental assessment (EA) process.
For years now, governments have been promising to untangle the daunting maze of regulations that complicate project approvals and to balance the interests of mineral explorers and developers, communities, non-government organizations and First Nations.
This is not a partisan issue. Rather it is an urgent matter for all of us to consider if we hope to compete internationally, attract investment and build a sustainable economy.
Along with other Canadian industry associations, the Association of Mineral Exploration British Columbia (AME BC) is calling for a single, timely and effective EA process that provides increased certainty for everyone. Proponents should not need to navigate separate, typically uncoordinated, inefficient, and duplicative federal and provincial assessments. Doing so often results in lost benefits for all British Columbians.
According to the B.C. Environmental Assessment Office, 47 mining projects – representing a potential investment of $15 billion and 27,000 construction and 52,700 operational jobs – could have been created in British Columbia since 2000. Instead, as a result of the current EA process, only 22 projects have made it through the first stage and qualified for an environmental assessment certificate. The 25 remaining projects represent a lost, or certainly delayed, opportunity equal to 68,000 jobs and $10 billion in investment.
Over the past decade, all levels of government have promised to harmonize and streamline the EA process. Yet we have not seen substantive progress, despite the recent Supreme Court of Canada ruling on Imperial Metals’ Red Chris copper-gold mine in B.C., which urges governments to work collaboratively to find ways to minimize duplication.
Further, the fundamentally flawed and divisive process undertaken to review Taseko Mines’ Prosperity gold-copper mine project in B.C. was a hard lesson we must learn from now. The delayed decision to not proceed to the permitting stage was the end result of a disconnected five-year provincial and federal environmental review process.
Last year, British Columbia’s modern and safe mineral exploration and development industry had a major revival and was a strong contributor to our economic recovery. Exploration spending in B.C. increased in 2010 by about $100 million as compared to 2009 levels. Expenditures measured at over $250 million as prospectors and companies explored for more minerals, metals and coal to meet steadily growing global demands.
Unquestionably, it’s the mineral exploration and development sectors, buoyed by record commodity prices, leading the recovery.
While explorers require large areas to search for elusive new deposits, actual mining has used less than 1% of the provincial land base over the last 150 years. Total annual payments to the government by the B.C. mineral industry have increased to an average of about $565 million for 2005-09, from an average of $340 million for 2000-04.
And government incentives for B.C.’s minerals sector boasts an amazing return on investment. In 2009, every tax dollar invested provided a return of $289, compared with an $8 return for every tax dollar invested in forestry.
A natural business cluster exists in B.C., with about 60% of Canadian exploration companies based in the province. The supporting legal, technical and financial specialists help form a world centre of mineral exploration and mining excellence. The B.C. industry pays some of the highest salaries in Canada, and is expected to create 7,500 new jobs within the next decade. Nationwide, mineral exploration and mining provide safe, high-paying employment for more than 350,000 Canadians. Without question, the industry is the economic engine of many rural and northern communities and the largest private employer of aboriginal Canadians.
Responsible mineral explorers understand that there will always be impacts when developing rare and valuable deposits, and agree that these need to be soundly assessed and properly mitigated. We look forward to ensuring B.C.’s mining proposals are evaluated fairly, thoroughly, and efficiently.
If we get it right, and I’m optimistic we will, the social and economic benefits from responsible mineral development to all of us could be demonstrated and showcased through strong environmental standards, local poverty reduction, construction of affordable homes, and improved education and health care.
British Columbia remains well positioned to build new mines, reflecting the province’s potential for mineral discoveries and proximity to fast-growing Asian economies. The province is blessed with rich geology, and through a combination of necessity, innovation, hard work and collaboration, already has world-leading environmental, social and safety standards. It is for these reasons that B.C. should now lead the reform of the environmental assessment process in Canada.
– The author is president & CEO of the Association for Mineral Exploration British Columbia (AME BC) www.amebc.ca.