Question Period Note: Kudz Ze Kayah Mining Project

• Fisheries and Oceans Canada is committed to continuing its work to support the review of this project.
• Federal Decision Bodies require an extension to evaluate all potential decision pathways.
• We will continue to work closely and in partnership with the Yukon Government, as well as through continued engagement with affected First Nations.
• The Department of Fisheries and Oceans is a federal Decision Body for the project and provides expertise on fish and fish habitat to the Executive Committee for the environmental assessment.

• On May 7, 2021, the Government of Canada and the Government of Yukon sent a joint letter to the Executive Committee (EC) indicating that the Decision Bodies (DB), being Fisheries and Oceans Canada, Natural Resources Canada and the Government of Yukon, are continuing discussions on the Referral Conclusions and anticipate providing more details on a decision in the near future.
• On April 13, 2021, the Northern Project Management Office, on behalf of the Federal Decision Bodies (FDBs), sent a notification letter to the EC to inform them that the FDBs will be reserving a decision under s. 59 of the Yukon Environmental and Socioeconomic Assessment Act (YESAA) as additional time is required to evaluate all potential decision pathways.
• The extension will be for an indeterminate amount of time to ensure meaningful collaboration and consultation with the Yukon Government and affected First Nations.
• DBs had until April 13, 2021 (15 days) to decide whether to refer the project to a Panel of the Board, or until May 5, 2021 (37 days) to decide whether to accept the recommendations, vary the recommendations or reject the project.
• On March 29, 2021, the EC published its Referral Conclusion and determined that on the basis of the information generated during the referral process, the EC agreed the project will cause significant adverse effects but was at a stalemate regarding whether mitigation measures will adequately reduce the effects.
• The deadlock meant the EC was unable to issue a new recommendation within the allotted timeframe. This resulted in the reissuance of the original screening report and recommendation from October 21, 2020. [Information was severed in accordance with the Access to Information Act.]
• DBs under YESAA, the Government of Yukon, Natural Resources Canada, and Fisheries and Oceans Canada had to decide whether to refer the project back to the YESAA EC for further assessment by January 22, 2021, or accept their recommendation that the project proceed to the regulatory permitting phase.
• In referring the project back, federal DBs identified gaps in the EC’s report including the consideration of Aboriginal rights and interests, Traditional Knowledge and traditional land use, fish and fish habitat, and caribou. These gaps made it difficult for federal decision-makers to understand how the EC reached its conclusions and limits the extent that federal DBs can rely on the report to aid in the fulfillment of federal consultation obligations.
• On January 25, 2021, the Premier of the Yukon issued a statement expressing disappointment with the Government of Canada’s decision to refer the project back to the EC for reconsideration and that Yukon Government was prepared to accept the recommendations and issue a decision document.
• On October 21, 2020, the EC provided its screening report and recommendations identifying likely significant adverse effects to water resources, wildlife, traditional land use, economy, and human health and safety. The EC concluded that these effects can be eliminated, controlled or reduced through the application of recommended mitigation measures.
• On January 9, 2018, a Project Screening by the EC commenced under YESAA.
• BMC Minerals (No.1) Ltd. is proposing the Kudz Ze Kayah Mine, a combined open pit and underground mine with an estimated production rate of approximately two million tonnes per year over a ten year mine life; producing up to 180,000 tonnes (t) zinc, 35,000 t copper and 25,000 t lead concentrates annually. The proposed project is in southeastern Yukon, approximately 115 km southeast of the community of Ross River, Yukon.
• Fisheries and Oceans Canada and Natural Resources Canada are DBs under the YESAA because of requirements for project approvals during the regulatory phase under the Fisheries Act and the Explosives Act, respectively.
• The territorial government is also considered a DB under YESAA. The Northern Projects Management Office is coordinating consultation with Indigenous groups as well as coordinating the review and decision making of federal and territorial DBs.

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