Question Period Note: Northern Contaminated Sites Program

About

Reference number:
NA-2020-QP-0004
Date received:
May 26, 2020
Organization:
Crown-Indigenous Relations and Northern Affairs Canada
Name of Minister:
Vandal, Dan (Hon.)
Title of Minister:
Minister of Northern Affairs

Suggested Response:

• Our Government is committed to the protection of human health and safety and the environment, as well as the development of economic opportunities for Northerners and Indigenous partners.
• This is why our Government has renewed the Federal Contaminated Sites Action Plan, and made significant investments in the new Northern Abandoned Mine Reclamation Program.
• Both are intended to ensure lands and waters are healthy for future generations and will help to secure jobs for Northerners and Indigenous partners.
• We will continue to collaborate with communities, Indigenous partners, the Territories and interested stakeholders to protect Canadians and the environment.

Background:

NORTHERN CONTAMINATED SITES – Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC) is responsible as owner of last resort in the Territories for a number of contaminated sites in the North, that were abandoned by former operators. Most of these sites are abandoned mines. CIRNAC works closely with territorial governments, Indigenous partners, and other stakeholders to remediate these sites. Since 2005, the primary source of funding has been the Federal Contaminated Sites Action Plan (FCSAP), a 15-year program administered by Environment and Climate Change Canada and the Treasury Board of Canada Secretariat, which has been renewed with an additional five years of funding ($1.16 billiion) starting in 2020. CIRNAC will utilize the FCSAP funding in order to address the contamination at its smaller scale sites across Canada, while the larger abandoned mine projects will be funded through the CIRNAC Northern Abandoned Mine Reclamtion Program. Budget 2019 provided CIRNAC’s Northern Abandoned Mine Reclamation Program with $2.2 billion in funding over 15 years starting in 2020 in order to remediate the eight largest abandoned mines in the Yukon and the Northwest Territories.
GIANT MINE – The Government of Canada became responsible for the Giant Mine, a former gold mine in Yellowknife, when its owner went bankrupt in 1999. CIRNAC has worked with the government of the Northwest Territories, Yellowknives Dene First Nation, the Yellowknife community, and other stakeholders to carry out care and maintenance activities and plan its remediation. Current work is focused on the water licence and land use permit regulatory process required for the remediation, which is expected to start in 2021.
FARO MINE – The Faro Mine is a former lead-zinc mine in the Yukon and is now one of the largest contaminated sites in Canada. Currently, CIRNAC is concluding negotiations with the government of Yukon and affected Yukon First Nations to transfer the site to full federal control. The Yukon Devolution Transfer Agreement left Canada financially liable for remediation of the Faro Mine with the Government of Yukon responsible for the management of the remediation project. This joint governance model has been ineffective for the management of a complex, high-risk, and large-scale project. In order to align the project management to best practices and effectively manage the risks, the Government of Yukon and the Government of Canada have negotiated a transition agreement to alter the roles of each government and transition the site to full federal control. This structure will allow Canada to exercise more control at the project management level and provide key decision making that will influence the projects’ scope, schedule and budget. Site activities over the next two years will focus on construction of advanced remediation works, finalizing the conceptual remediation plan, working through the environmental assessment and completing ongoing care and maintenance.
UNITED KENO HILL MINE - The United Keno Hill Mines Site is located in the Yukon Territory, and is a collection of over 50 individual silver producing mines. The Project is currently undergoing environmental assessment by the Yukon Environmental and Socio-economic Assessment Board. Pending necessary approvals and licenses, construction is scheduled for 2021-2026.
KETZA RIVER MINE - The Ketza River Mine is located in the Yukon Territory, and is an abandoned gold mine produced 3.1 million grams of gold and approximately 342,000 tonnes of process tailings during operation (1988-1990). Ongoing care and maintenance activities for the Ketza River are managed by the Yukon Government. Contracts for this work are awarded with preference given to Indigenous and Northern contractors and suppliers.
CLINTON CREEK MINE - The Clinton Creek Mine is located in the Yukon Territory and is an abandoned asbestos mine that was operated by Cassiar Mining Corporation from 1968 until the depletion of economic ore reserves in 1978. The mill produced nearly 100,000 tonnes of asbestos annually, resulting in 60 million tonnes of waste rock, and 10 million tonnes of asbestos tailings on site.
MOUNT NANSEN MINE – The Mount Nansen Mine is located in the Yukon Territory and is an abandoned gold mine that ceased operation in 1999, producing a total of 41,500 oz. of gold and 234,200 oz. of silver. There is about 300,000 m3 of tailings with the potential to generate acid and contaminated soil on site.
GREAT BEAR LAKE REMEDIATION – The Great Bear Lake Remediation Project is located in the Northwest Territories and includes four former industrial properties which are now abandoned and the responsibility of Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC). The sites include the Silver Bear Mines, Contact Lake Mine, El Bonanza/Bonanza Mine, and Sawmill Bay.
CANTUNG MINE – The Cantung Mine Remediation Project is located in the Northwest Territories, and is an abandoned Tungsten Mine. Under the Companies’ Creditors Arrangement Act, the court-appointed Monitor, Alvarez & Marsal Canada Inc. manages the site with funding from CIRNAC since 2015. The site is currently in care & maintenance and undergoing remediation planning, and Canada is working with the Government of the Northwest Territories in a joint sales and marketing process for the Cantung and Mactung properties.

Additional Information:

If pressed on the Northern Abandoned Mine Reclamation Program
• The Government of Canada is investing $2.2 billion over the next 15 years in the Northern Abandoned Mine Reclamation Program to address remediation of Crown-Indigenous Relations and Northern Affairs Canada’s eight largest abandoned mine projects.
• The long-term remediation contracts that can be secured through this program will result in a significant improvement to the ongoing protection of human health and safety and the environment for Northerners and Indigenous peoples, by ensuring that these large abandoned mine projects are cleaned up.

If pressed on Federal Contaminated Sites Action Plan renewal
• The Government of Canada has renewed the Federal Contaminated Sites Action Plan, led by Environment and Climate Change Canada, with $1.16 billion in funding over five years, starting in 2020.
• Crown-Indigenous Relations and Northern Affairs Canada will be able to access this funding to address its smaller-scale contaminated sites. To-date, with funding from this program, we have completed the remediation of 59 sites.

If pressed on the Giant Mine Remediation Project
• Our Government continues to work with the Government of the Northwest Territories, Indigenous partners, and other stakeholders to advance the cleanup and remediation of Giant Mine.
• The Government submitted its application for a water license and land use permit for Giant Mine on April 1, 2019. It is anticipated that the licence and permit will be received by August 2020. The water licence and land use permit are required so that remediation can begin in 2021, as per the current project schedule.

If pressed on the Giant Mine Oversight Board
• The Government continues to work with the Government of the Northwest Territories, Indigenous partners, and other stakeholders to advance the remediation plan while managing risks to human health and the environment.
• We continue to engage as we develop and execute the remediation plan. We welcome views from interested parties, including the independent Giant Mine Oversight Board, to foster a strong and lasting trust moving forward.

If pressed on Giant Mine Socio-Economic Benefits
• In 2018-19, there were 138 Northerners working on site, representing 65% of the workforce, and 70 Indigenous persons, representing 34% of the workforce.
• The project team is working closely with our partners to ensure the contracting process uses all tools available to maximize benefits for Northerners and Indigenous peoples.

If pressed on Giant Mine Apology and Compensation
• The Department recognizes this issue is of great importance to the Yellowknives Dene First Nation.
• Senior officials from the Department have spoken with the Chiefs to discuss how best to engage the community, especially the Elders.
• The Department is reviewing and assessing the historical record and will respond more formally when this work is complete.
• The Department remains committed to working with the Yellowknives Dene First Nation in support of reconciliation.

If pressed on contamination off the Giant Mine site
• The health and safety of Canadians and the environment is a priority for our Government.
• The Government of the Northwest Territories is supported by Crown-Indigenous Relations and Northern Affairs Canada and other federal departments to proactively manage this public concern. Together, we are ensuring that the public, local and Indigenous governments and agencies, and visitors are fully informed of potential risks to human health.

If pressed on discharge of treated mine water from the Giant Mine site without a licence
• The Government of Canada is committed to adhering all applicable regulatory requirements.
• Presently, the treatment and discharge of water is in accordance with the Mackenzie Valley Resources Management Act and Fisheries Act to ensure ongoing protection of human health and safety and the environment. The Government submitted its application for a water licence and land use permit for the Giant Mine on April 1, 2019. It is anticipated that the licence and permit will be received by August 2020.

If pressed on the Giant Mine Health Effects Monitoring Program
• The Health Effects Monitoring Program, is an additional step being led by researchers from the University of Ottawa, in conjunction with Health Canada, the Government of the Northwest Territories and the Yellowknives Dene First Nation.
• The results of the study demonstrated that levels of exposure to arsenic for children and adults are well below the reference level derived from the Canadian Health Measure Survey (of 21µg/L).
• Summary results were shared with the public during three community meetings in May and June 2019.
• Youth participants (ages 3 to 17 in 2017) will be invited to participate in a follow-up study in 2022-23, and a follow-up study for all participants is planned for 2027-28.

If pressed on the Faro Mine Remediation Project, Yukon Territory
• The health and safety of Canadians and the environment is a priority for our Government.
• The Government continues to work in partnership with the Government of Yukon, and Indigenous partners to advance the long-term remediation plan while managing immediate risks to both human health and the environment. We hope to have all approvals in place for implementation of the final closure plan in 2024.
• The Department is working with Territorial and Indigenous partners to adjust the Project governance structure to ensure success. This is part of our Government’s due diligence in implementing good project management practices.
• While our Government continues to work in partnership with the Government of Yukon and Indigenous partners to advance the long-term remediation plan, we are now doing construction work to stabilize the site and to manage immediate risks. The overall increase in yearly spending is attributed to these planned works.

If pressed on the Governance Transition from the Yukon Government to Canada
• The Department is working with Territorial and Indigenous partners to adjust the Project governance structure to ensure success. This is part of our Government’s due diligence in implementing good project management practices.

If pressed on the increases in spending at Faro
• While our Government continues to work in partnership with the Government of Yukon and Indigenous partners to advance the long-term remediation plan, we are now doing construction work to stabilize the site and to manage immediate risks. The overall increase in yearly spending is attributed to these planned works.

If pressed on increases to the Faro Mine Remediation Project’s timelines for clean-up
• We submitted the plans for the complete remediation of the Faro mine site to the Executive Committee of the Yukon Environmental and Socio economic Assessment Board in May 2019; the first step of the regulatory process. Community consultations formed part of the Project Proposal which was developed with Indigenous partners. Permitting usually takes approximately four to five years; therefore, we hope to have all approvals in place for implementation of the final closure plan in 2024.

If pressed on legal action under the Yukon Health and Safety Act against Parsons Inc and one of their employees at the Faro Mine
• Health and Safety must always be the priority in the work undertaken in these projects.
• I am aware of allegations that were filed in Court to the effect that Parsons and one of its employees have committed offences under Yukon’s Occupational Health and Safety Act. Given that the matter is before the courts, it would be inappropriate for me to comment at this time.