March 25, 2013

Molybdenum mine gets government certificate

RICHARD GILBERT

staff writer

The proposed Kitsault open-pit molybdenum mine on the north coast of BC has been issued an environmental assessment certificate (EAC) from the provincial government, despite a disagreement with the Nisga'a First Nation about the impact of the project.

“We are delighted with the decision by the B.C. Government and await a similar approval from the Canadian Environmental Assessment Agency under their joint review memorandum,” said Craig J. Nelsen, president and CEO of Avanti Kitsault Mine Ltd.

“We continue to reach out to First Nations and the Nisga’a Nation to work constructively toward implementing the requirements set forth in the EAC.”

The proposed project will be located on Crown land about 140 kilometres north of Prince Rupert, at the head of Alice Arm, B.C.

Environment Minister Terry Lake and Energy, Mines and Natural Gas Minister Rich Coleman issued a conditional EAC to Avanti Kitsault Mine Ltd. for the project on March 19.

The decision was made after considering the review led by B.C.’s Environmental Assessment Office (BCEAO).

The review concluded the project is not expected to have any significant adverse effects, after mitigation measures are undertaken.

However, the Nisga’a Nation has filed a Notice of Disagreement with the provincial and federal governments under the Nisga’a Final Agreement.

“We filed a dispute resolution because certain issues were not dealt with,” said Mitchell Stevens, president of the Nisga’a Nation. “We did not say we were not in favour of the project, but they have breached their obligation, as far as the treaty. When this is dealt with we can then deal with the business sector.”

The Nisga’a signed B.C.’s first modern treaty with the provincial government in 1998. The treaty gave the Nisga’a legal authority to conduct their own affairs and ended the uncertainty regarding land ownership. As a result, the treaty opened the door for joint economic initiatives in the development of the Nisga’a Nation’s natural resources.

The EAO’s assessment concluded there were potential adverse residual effects associated with surface water and sediment quality; freshwater aquatic resources; marine aquatic resources; wildlife and wildlife habitat, ecosystems and wetlands; and the transportation corridor for the proposed project.

However, none of the adverse residual effects were determined to be significant after considering the mitigation measures and conditions that would become binding conditions of the EA Certificate.

Stevens disagreed.

“We are in disagreement with non-assessment of the project by the province because the project will result in a

50 per cent loss of aquatic life and habitat in a significant watershed downstream of the mine site,” he said.

“There has been no assessment of marine life. The Nisga’a has been bringing this to the attention of the province and the BCEAO for two years with no avail.”

Stevens also believes the approval of the EAC has a political motivation, as it has been timed to coincide with the upcoming election in May.

“There is an election coming and they need a good news story going forward,” he said. “No one in their right mind would put money in this project.”

The project involves the construction of a processing plant, tailings storage facility, containment embankments, waste rock storage and low grade ore stockpile, site runoff, diversion and water collection system, water management facility. It will also use existing 138 kilovolt transmission line and access roads.

“We can now focus our efforts on obtaining the necessary financing and permits to start construction later in

2013 of this very significant project that will provide benefits to all stakeholders including the Nisga’a Nation,” said A.J. Ali, chief financial officer of Avanti.

The mine has an estimated total capital construction cost of $836 million and will create an about 960 person years of direct employment during construction.

It will have an ore extraction rate of between 40,000 and 50,000 tonnes per day for up to 16 years of mine operations.

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