Proposed Ajax Mine Project

Canadian Environmental Assessment Agency and BC Environmental Assessment Office
Joint Response to Public Comments Regarding the Environmental Assessment Process for the Proposed Ajax Copper-Gold Mine Project

Preface

The purpose of this document is for the Canadian Environmental Assessment Agency (CEA Agency) and the BC Environmental Assessment Office (EAO) to respond to many of the process-related comments received in February and March of 2012, during the public comment period on the draft Application Information Requirements/Environmental Impact Statement Guidelines for the proposed Ajax Copper-Gold Mine Project (the Project).

Purpose of environmental assessment

Environmental assessment is a process to assess potential impacts of a proposed project on a range of environmental components before determining whether or not the proposed project may be carried out. The process provides opportunities for public participation and Aboriginal group consultation, and ensures that potential impacts, as well as mitigation measures to eliminate, reduce or control potential adverse impacts, are incorporated into the assessment process.

Projects requiring an environmental assessment

Under federal and provincial legislation, projects that meet certain thresholds are required to be reviewed according to established environmental assessment processes.

The requirements for provincial environmental assessment are described in the BC Environmental Assessment Act (EA Act), with provincial thresholds for major projects described in the Reviewable Projects Regulation.

The requirements for a federal environmental assessment for this Project are described in the former Canadian Environmental Assessment Act (the former CEAA)¹, with federal thresholds described in the Comprehensive Study List Regulations.

Coordinated federal-provincial review

The CEA Agency and the EAO are conducting the environmental assessment of the proposed Project under the former CEAA and BC EA Act. The CEA Agency and the EAO are working cooperatively to coordinate their respective processes. As part of this coordinated process, the CEA Agency and the EAO will take into consideration comments received from various stakeholders including the public, federal and provincial experts, representatives of local governments, and Aboriginal groups. Both the CEA Agency and the EAO will then analyze all information collected and each will submit a report summarizing the findings and their recommendations to their respective ministers for their respective environmental assessment decisions. Decisions are required from both the federal and provincial ministers before a proposed Project can proceed to the permitting stage.

Public comments regarding the environmental assessment information requirements

The public was provided with an opportunity to review and provide input on the proposed Project's draft Application Information Requirements / Environmental Impact Statement Guidelines in February and March of 2012. This document, referred to as the "information requirements," describes what information must be submitted by KGHM Ajax Mining Inc. (the proponent) as part of the cooperative environmental assessment, including: baseline studies, methods and information needed to identify and describe the proposed Project's potential environmental impacts, as well as measures proposed by the proponent to avoid or mitigate (eliminate, reduce, or control) those impacts, including those relating to Aboriginal interests.

The following documents pertaining to the Ajax information requirements have been posted to the CEA Agency and/or the EAO website:

• A "Summary of Public Comments and Proponent Responses" document (the Public Summary document) providing an overview of key issues noted in the public comments received, a summary of the proponent's responses to key issues, as well as instructions for navigating the Public Issues Tracking Table;
• This document (the Government Response document) prepared by the CEA Agency and EAO to respond to comments submitted related to the environmental assessment process itself;
• All public comments submitted as part of the February-March 2012 public comment period;
• A Public Issues Tracking Table documenting key issues identified by the public, organized by project component and valued component, and the proponent's responses; and,
• An Agency Issues Tracking Table documenting key issues identified by the Working Group (including federal, provincial, and local government agencies, as well as First Nations).

Furthermore, having taken into consideration the comments received, the CEA Agency and EAO have now finalized the information requirements and issued them to the proponent; the final approved Application Information Requirements/ Environmental Impact Statement Guidelines document is available on both the EAO and CEA Agency website.

Comments suggesting the rejection of the proposed project and cancellation of the environmental assessment

Under federal and provincial legislation, proponents have the right to submit a proposal for review. Due process and fairness requires that governments consider and assess the proposal before making a decision.

When a proponent seeks to develop a project that triggers an environmental assessment under the former CEAA or BC EA Act, that project is subject to the processes and procedures established by those statutes. Accordingly, the proposed Ajax Copper-Gold Mine Project will be subject to an examination of the potential effects prior to the provincial and federal governments making a decision.

Through the coordinated environmental assessment process, the proponent will be required to develop measures to avoid or mitigate any potential adverse effects. Governments require that all relevant potential effects are identified and understood in order to have a basis on which to reach a decision regarding the likelihood of significant adverse effects.

Comments requesting a referral of the proposed Project to a joint federal/provincial review panel

The CEA Agency and the EAO received comments from members of the public requesting that the proposed project be referred to an independent joint federal/provincial review panel.

Under both CEAA 2012 and the former CEAA, a proposed project may be referred to a review panel if the Minister is of the opinion that the project may cause significant adverse environmental effects after taking into account the implementation of any appropriate mitigation measures, or that public concerns with respect to those environmental effects warrant a referral. Based on the information currently available on the potential environmental effects of the proposed Project, as determined through consultation with federal department experts, a referral to a review panel is not warranted at this time.

Under both CEAA 2012 and the former CEAA, the factors examined through a comprehensive study process and a review panel process are identical. In both processes the proponent collects and presents information in the form of an Environmental Impact Statement to the responsible authority or review panel. Both processes deliver high quality environmental assessments leading to a determination of whether a project is likely to result in significant adverse environmental effects. Both processes involve public participation and funding to assist the public and Aboriginal groups to participate in the environmental assessment.

To refer a provincial environmental assessment to a joint review panel, an order of the provincial Minister of Environment under Section 14 of the BC EA Act is required. This can only take place after a referral from the EAO's Executive Director. For the proposed Project, the Executive Director has decided that he will not make such a referral, as he is satisfied the current review can appropriately assess the potential environmental, social, economic, health and heritage effects of the proposed Project.

Comments regarding possible abandonment or expansion of the mine

Concerns were raised by the public regarding the possible abandonment of the mine by the proponent in the future, and the potential for unresolved environmental risks to be left unaddressed. The provincial Ministry of Energy, Mines and Natural Gas is responsible for permitting and bonding of mines. Such information is considered after an environmental certificate is issued and the project proceeds to the permitting stage.

Concerns were also raised regarding the potential for significant expansion of the mine without further consideration being given to the effects from such expansion. Under CEAA 2012, if an existing metal or gold mine increases its ore production capacity 50% or more, the proponent is required to submit a project description to the Agency in order to determine whether an environmental assessment is required. Proponents may apply to the EAO for an amendment to the Environmental Assessment Certificate (EAC) for a change or changes to the design, location, construction, operation or decommissioning of a project. EAO requires sufficient information to determine whether the proposed change or changes to the project will have the potential for significant adverse environmental, social, economic, heritage, or health effects. The Executive Director or the Minister of Environment may add, vary or delete conditions from an EAC or add new conditions to the EAC as part of the decision-making under section 19 of the BC EA Act.

Public consultation on the proposed Ajax Mine Project

Public consultation for the environmental assessment of the proposed Ajax Mine Project includes the activities and deliverables outlined in the proponent's Public Consultation Plan in addition to public consultation activities led by the CEA Agency and/or the EAO.

The approved version of the proponent's Public Consultation Plan was developed with significant input from the Ajax Community Advisory Group and the City of Kamloops.

Other comments

For guidance on projects subject to the former CEAA, please see the document, Canadian Environmental Assessment Act: An Overview.

Please refer to the "Frequently Asked Questions" page on the B.C. EAO website for information pertaining to the following:

• EA assessment methodology (determination of significance)
• EA statistics (proportion of projects approved, refused or not referred)
• Environmental management (monitoring and enforcement)
• Public consultation process (purpose of consultation; opportunities for public participation in the environmental assessment process)
• Cumulative impacts (what are cumulative impacts; assessment of cumulative impacts)

See also "EAO's Response to the Audit of EAO's Oversight of Certified Projects."

Next steps in the Environmental Assessment Process

Now that the CEA Agency and the EAO have issued the information requirements to the proponent, the proponent must collect the information and undertake the analyses outlined in the Application Information Requirements/ Environmental Impact Statement Guidelines and provide it to the CEA Agency and the EAO in an official submission. This "submission" is referred to provincially as an Application for an Environmental Assessment Certificate (Application) and federally as an Environmental Impact Statement (EIS).

The CEA Agency and the EAO will undertake a review of the proponent's Application/EIS, which will include consultation with the public, technical experts, local government and Aboriginal groups, on the potential impact of the proposed Project and the measures needed to avoid or mitigate (eliminate, reduce, or control) potential effects. Detailed modelling and study results will be made publicly available in the Application/EIS during the public comment period.

The information contained in the Application/EIS, along with public comments received, will inform the preparation of provincial and federal environmental assessment reports. These reports will be submitted to the responsible federal and provincial ministers for consideration as they make their respective decisions regarding the proposed Ajax Mine Project.

The CEA Agency and the EAO websites provide information on the status of the proposed Ajax Mine Project and the environmental assessment process along with all the documents referenced above. The website addresses are: www.eao.gov.bc.ca and www.ceaa.gc.ca (see Registry # 62225).

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¹ The Canadian Environmental Assessment Act, 2012 (CEAA 2012) came into force on July 6, 2012.  As the proposed Ajax Mine Project was already underway when the new legislation came into force, it is subject to the transition provisions as set out in CEAA 2012.  This is, the Project is subject to a comprehensive study environmental assessment and will continue to be assessed under the former Canadian Environmental Assessment Act (former CEAA) as if it had not been repealed.