Question Period Note: Kudz Ze Kayah Mining Project

Kudz Ze Kayah Mining Project

The decision to move forward the Kudz Ze Kayah project demonstrates the Government of Canada’s commitment to rigorous regulatory review of mining projects in the territories, while also ensuring our legal duty to meaningfully consult Indigenous groups.

Additional time was needed to meaningfully consult with Kaska First Nations and their input was considered, as appropriate, to support the final decision on the project.

We look forward to continue working closely and in partnership with the Yukon Government and to further engaging with the Kaska First Nations, as regulatory approvals related to the project are considered.

• 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 federal Decision Bodies under the Yukon Environmental and Socio-Economic Assessment Act (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 a Decision body 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 Decision Bodies.
• On June 15, 2022, the Government of Canada and Yukon came to a joint decision to accept the Executive Committee’s recommendation that the Kudz Ze Kayah project be allowed to proceed.
• The joint decision concludes the environmental assessment and socio-economic assessment of the project under the Yukon Environment and Socio-economic Assessment Act.
• The joint decision was made following work to address deficiencies found in the original screening report, including gaps in information on the Finlayson caribou herd, though varied terms and conditions and additional caribou data analysis.
• Canada and Yukon jointly pursued a process seeking to vary the terms and conditions put forward by the Executive Committee in their project recommendation (under YESSA) as a way to respond to, and account for, the First Nations’ concerns.
• First Nations are objecting to the approval of the project due to concerns regarding the project’s impacts on caribou as well as concerns about cumulative effects and impacts on their Aboriginal rights and interests. After careful consideration of the record and input from First Nations, Decision Bodies were of the view that there was sufficient information to move forward with decision making.
• In April 2021, Kaska Chiefs jointly requested that the project be rejected given the concerns regarding cumulative effects and significant adverse impacts on caribou and Aboriginal rights that, in their opinion, could not be mitigated.
• Canada and Yukon have been working towards a joint decision on the project since April 2021, after a reconsideration process, and following the deadlock of the Executive Committee on an updated recommendation for the project. The Federal Decision Bodies’ referral questions were unanswered as a result of the deadlock.

None