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

World War II veteran, and former POW, Hans Andersen is seen at his home in Maple Ridge Oct. 21, 2020. (Photo: Malin Jordan)
WWII veteran Hans Andersen recalls his time fighting in Europe

99-year-old Maple Ridge resident places a wreath at Cloverdale Cenotaph each year

One-and-a-half-year-old Josephine Jordan and sister Amelia, four, search for the perfect pumpkin beneath Golden Ears Mountain in Maple Ridge’s Laity Pumpkin Patch on Oct. 26. During a tour of the field, the siblings searched for just the perfect pumpkin. (Malin Jordan/Black Press Media)
Jack O’lantern fun in the fields

Please consider sharing your favour pumpkin patch or carving photos

Ridge Meadows RCMP Supt. Jennifer Hyland (middle) with Inspectors Wendy Mehat and Allison Good get in the spirit for a Halloween message. (Facebook)
Limit Halloween gatherings and don’t play with fireworks

Ridge Meadows RCMP and local fire chiefs with messages for Oct. 31

Maple Ridge's Darlene Phillips shared a few pictures of some bears frolicking at Kanaka Creek Regional Park, then heading off into the sunset. (Special to The News)
SHARE: Silhouetted by the sunset

Send us your photo showing how you view Maple Ridge or Pitt Meadows, and it could be featured soon

Over the years, Janice Blackie-Goodine’s home in Summerland has featured elaborate Halloween displays and decorations each October. (File photo)
QUIZ: How much do you really know about Halloween?

Oct. 31 is a night of frights. How much do you know about Halloween customs and traditions?

FILE - In this Jan. 23, 1987 file photo, actor Sean Connery holds a rose in his hand as he talks about his new movie “The Name of the Rose” at a news conference in London. Scottish actor Sean Connery, considered by many to have been the best James Bond, has died aged 90, according to an announcement from his family. (AP Photo/Gerald Penny, File)
Actor Sean Connery, the ‘original’ James Bond, dies at 90

Oscar-winner was knighted by Queen Elizabeth II in 2000

A Mercedes SUV is covered at a gas station in the Clayton area following a deadly shooting there on Sept. 28, 2019. (File photo)
Hay bales can be donated to Critter Care Wildlife Society. (Critter Care/Special to The Star)
Straw bales used for Halloween decor can be donated to Critter Care Wildlife Society

Langley animal facility said they are always need in of fresh bedding

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

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

This house at 414 Royal Ave. became notorious for its residents’ and visitors’ penchant for attracting police. It was also the site of a gruesome torture in August 2018. It was demolished in 2019. KTW
6-year sentence for Kamloops man who helped carve ‘rat’ into flesh of fellow gang member

Ricky Dennis was one of three men involved in the August 2018 attack

Among the pumpkin carvings created this year by Rick Chong of Abbotsford is this tribute to fallen officer Cont. Allan Young.
Abbotsford pumpkin carver’s creations include fallen police officer

Rick Chong carves and displays 30 pumpkins every year

An online fundraising campaign in support of the six-year-old boy, Edgar Colby, who was hit by a car on Range Road Oct. 25 has raised more than $62,000 in a day. (Submitted)
$62K raised in 1 day for boy in coma at BC Children’s after being hit by vehicle in Yukon

The boy’s aunt says the family is “very grateful” for the support they’ve received from the community

Most Read