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

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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Sawyer, a northern saw-whet owl that became synonymous with Mountainaire Avian Rescue Society, passed away peacefully over the weekend. Sawyer would make numerous public appearances with MARS staff in and around the Comox Valley and Campbell River. Photo supplied.
Popular MARS ambassador owl dies

Submitted MARS Wildlife Rescue has lost one of its mightiest ambassadors. Tiny… Continue reading

442 Transport and Rescue Squadron from 19 Wing Comox assisted in helping an injured hiker down from the top of Mt. Benson near Nanaimo Jan. 23. Photo by 19 Wing Comox
With video: 442 Squadron assists mid-Island mountain rescue

The crew on the Buffalo hand-launched 15 flares

Local musician and artist Daisy Melville created a watercolour portrait of U.S. Senator Bernie Sanders from the recent American inauguration, and with help from her mom, is now selling t-shirts and more with funds going to the Comox Valley Food Bank. Image submitted
Comox Valley artist turns Sanders inauguration meme into art for good

All proceeds from the sale of shirts, sweaters and more will go to the Comox Valley Food Bank

Comox Valley medical clinics are all open, including the availability to book face-to-face care (i.e. for a physical examination) as per your clinic’s protocol (most clinics operate a “virtual care first” policy). ADOBE STOCK IMAGE
Comox Valley doctors offer answers to local COVID health care questions

Public service announcement submitted by the Comox Valley Division of Family Practice

People skate on a lake in a city park in Montreal, Sunday, January 10, 2021. THE CANADIAN PRESS/Graham Hughes
The end of hugs: How COVID-19 has changed daily life a year after Canada’s 1st case

Today marks the one year anniversary of COVID-19 landing in Canada

Crews with Discovery Channel film as an Aggressive Towing driver moves a Grumman S2F Tracker aircraft around a 90-degree turn from its compound and onto the road on Saturday, Jan. 23, 2021. It was the “most difficult” part of the move for the airplane, one organizer said. (Jenna Hauck/ Chilliwack Progress)
VIDEO: Vintage military plane gets towed from Chilliwack to Greater Victoria

Grumman CP-121 Tracker’s eventual home the British Columbia Aviation Museum on Vancouver Island

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Ben Tyler was working on a Nicola area ranch when he disappeared. File photo
Ben Tyler was working on a Nicola area ranch when he disappeared. File photo
2 years after his riderless horse was found, police believe Merritt cowboy was killed

Two years after he went missing, Ben Tyner’s family makes video plea for information

A ground worker wearing a face mask to curb the spread of COVID-19 unloads lobsters from a WestJet Airlines flight at Vancouver International Airport, in Richmond, B.C., on Thursday, January 21, 2021. THE CANADIAN PRESS/Darryl Dyck
Trudeau teases stricter travel measures; Canadians flying to U.S. now need COVID test

Prime minister says measures need to not hurt imports and essential trade

The shirts sell for $45, with 30 per cent of proceeds from each sale going to Battered Women’s Support Services in Vancouver. (Madame Premier/Sarah Elder-Chamanara)
Canadian company launches ‘hysterical’ T-Shirt to combat health officials’ use of word

A partnership with Tamara Taggart will see women broadcast the word on a T-shirt or tote bag

McDonald’s on Nicol Street in Nanaimo. (News Bulletin file photo)
McDonald’s in Nanaimo reports COVID-19 case

Employee at Nicol Street location last worked Jan. 17

ICBC has seen savings on crash and injury claims in the COVID-19 pandemic, with traffic on B.C. roads reduced. (Penticton Western News)
ICBC opens online calculator for rate savings starting in May

Bypassing courts expected to save 20% on average

(AP Photo/Elaine Thompson, File)
16% boom predicted for B.C. real estate sales in 2021: experts

Along with sales, the average price of homes is also predicted to rise, by nearly 8 percent

The trial of Harry Richardson began Monday at the Nelson courthouse. File photo
Trial of man accused of shooting RCMP officer in West Kootenay in 2019 begins

Harry Richardson is facing five charges in a Nelson courtroom

Most Read