Yukon mulls subsidies to help miners decarbonize: CBC

The Yukon government is considering subsidizing mining companies in the territory to help them cut emissions, according to CBC.  

In a submission last summer to the government’s cabinet committee on legislation, the Department of Energy, Mines and Resources said the subsidies could be needed for the industry, CBC said about documents it acquired through an access to information request.   

The department acknowledged that meeting emissions targets aimed at reducing the territory’s carbon footprint could put financial burdens on individual mining companies and chill the investment climate.  

Subsidies and financial incentives could help companies meet the targets while also balancing the competitive nature of the industry.

Producing mines in the territory include Victoria Gold‘s (TSXV: VGCX) Eagle Gold mines and Hecla Mining’s (NYSE: HL) Keno Hill silver mine. Minto Metals operated its namesake copper-gold mine in the territory until production was halted just over one year ago. 

Elusive 45% targets

The territorial government is working on developing “intensity-based targets” that are tied to the amount of emissions produced per unit of production. The targets are based on the territory’s 2020 climate change strategy that aims to cut Yukon’s carbon footprint by 45% this decade.  

The government had committed to setting up targets for mining by late 2022, but it missed the deadline, CBC said.  

The government has planned to reduce emissions from active mines by 45% by 2035 starting in the fall through changes to the Clean Energy Act. Emissions from abandoned mines would be subject to a different target.  

CBC said the internal documents make those aspirations doubtful, though a territorial official said subsidy funding could come from Ottawa’s carbon pricing system for heavy emitters.