Participant Funding Program - Aboriginal Funding Envelope
Funding Review Committee’s Report

Allocation of Federal Funds for the Environmental Assessment of the Ajax Copper/Gold Mine Project

The Participant Funding Program (PFP) is established pursuant to subsection 58(1.1) of the Canadian Environmental Assessment Act (the Act), which states: For the purposes of this Act, the Minister shall establish a participant funding program to facilitate the participation of the public in comprehensive studies, mediations and assessments by review panels. The PFP also includes an Aboriginal Funding Envelope (AFE) to strengthen the ability of Aboriginal groups to participate in federal or joint federal-provincial environmental assessment (EA) processes and in related consultation activities.

A Funding Review Committee (FRC) independent of the EA was established for the Ajax Copper/Gold Mine Project (the Project). The EA of the Project is being conducted by means of a comprehensive study (CS). The FRC’s purpose was to assess funding applications received under the PFP – AFE for the proposed project, and to provide recommendations to the President of the Canadian Environmental Assessment Agency (the Agency) on whether funding should be provided, and if so, in what amount.

Under the AFE for this project, a total of $329,700 was made available to support Aboriginal participation in the EA, and related consultation and community engagement activities, linked to:

• review and comment on the Environmental Impact Statement (EIS) Guidelines;
• review and comment on the EIS submitted by the project proponent; and
• review and comment on the Comprehensive Study Report (CSR).

The deadline to submit an application was September 19, 2011. Five applications were received requesting a total of $930,673.

On September 27, 2011, the FRC met to review the applications. The FRC members were: Mr. Paul Scott, retired Regional Director of the Agency’s Pacific and Yukon office, acting as Committee Chairperson; Mr. Ray Crook, Environmental Assessment Consultant; and Mr. Patrick Duffy, Environmental Assessment Consultant.

Background

KGHM Ajax Mining Inc. is proposing to develop the Abacus Ajax Mine Project, a gold-copper mine located partially within the city limits of Kamloops in South Central British Columbia. The Project will have a projected lifespan of 23 years and a production capacity of up to 60,000 tonnes per day.

The Agency accepted the project description for the proposed project on March 15, 2011. In consultation with interested federal authorities, the Agency has determined that the Project would be subject to a federal EA pursuant to the Act. The federal EA of the Project is subject to a CS as per Part V, section 16 (a) of the Comprehensive Study List Regulations:

• the proposed construction, decommissioning or abandonment of a metal mine, other than a gold mine, with an ore production capacity of 3,000 tonnes per day or more.

The trigger under the Act for the proposed project is an authorization under s.35(2) of the Fisheries Act. Therefore, Fisheries and Oceans Canada will participate as a responsible authority. Additionally, Transport Canada, Environment Canada and Health Canada may participate as federal authorities in the CS.

An initial public comment period on a background document describing the proposed project and the CS process was completed on July 11, 2011. Further opportunities to participate in the conduct of the CS will be afforded to the public during the review of the draft Application Information Requirements/EIS Guidelines and the Application/EIS. A public comment period will also be held on the CSR prepared by the Agency and submitted to the Minister of the Environment (anticipated in mid-2012).

The Project has also been identified as a major resource project by the Major Projects Management Office. The proposed project is also subject to a provincial EA pursuant to the British Columbia Environmental Assessment Act. The federal and provincial EAs will be coordinated and conducted in a cooperative manner.

Eligibility

Under the PFP - AFE, funding may be provided to Aboriginal applicants to support their input to an EA and/or to support their engagement in consultation activities with the federal government. These activities must be linked to the EA of a proposed project through a CS, mediation or review panel.

Eligible recipients must plan to engage in Aboriginal consultation activities with the federal government that are linked to the EA of the proposed project and be able to demonstrate that they meet at least one of the following eligibility criteria:

• have a direct, local interest in the proposed project, such as historical or cultural ties to the area likely to be affected by the proposed project;
• have community knowledge or Aboriginal traditional knowledge relevant to the EA; and/or
• have expert information relevant to the anticipated environmental effects of the proposed project.

All of the applicants were deemed to have met the eligibility criteria.

Under the PFP - AFE, applicants can request funding for costs related to:

• professional fees;
• staff salaries and benefits;
• local collection and/or distribution of information;
• travel expenses;
• rental of office space and meeting rooms;
• office supplies and telephone charges;
• administrative and reporting costs;
• other expenses related to local collection and/or distribution of information;
• legal fees;
• purchase of relevant information material, with supporting information;
• general media advertising and/or promotion; and/or
• other detailed expenses, with supporting information.

Rationale for Allocation

In reviewing the five applications received and in reaching its conclusions and recommendations, the FRC took into consideration a number of factors including the following:

• whether Aboriginal groups could demonstrate that they plan to engage in Aboriginal consultation activities with the federal government that are linked to the EA of the proposed project;
• the ability of the Aboriginal groups to demonstrate that they have met one or more of the eligibility criteria listed above;
• the quality, clarity and content of the application, particularly with respect to (1) the relationship between specific project components and the applicant’s traditional lands and resources, and (2) the applicant’s proposed EA participation work plan;
• advice received from the Agency regarding which Aboriginal groups are expected to be participants in the EA, and the role that these groups may play in the review;
• the eligible activities under the PFP - AFE for the Project, which include reviewing and commenting on the EIS guidelines; reviewing and commenting on the EIS; reviewing and commenting on the CSR; and preparing for and participating in internal community meetings to consider the proposed project; and
• the amount of funds available under the PFP - AFE for this project.

Recommendation

The FRC recommends allocating all of the $329,700 of the available PFP - AFE funding to support the five applicants as follows:

• $147,050 to the TK’emlups (Kamloops) Indian Band;
• $102,000 to the Skeetchestn Indian Band #687;
• $30,150 to the Lower Nicola Indian Band;
• $25,700 to the Métis Nation British Columbia; and
• $24,800 to the Ashcroft Indian Band;

The FRC further recommends that a condition of any funding allocation be that the applicants provide input to the EA through comments on the following: the EIS Guidelines; the EIS; the draft CSR; and the final CSR.

The Funding Review Committee
Ajax Copper / Gold Mine Project
Aboriginal Funding Envelope

___________________________________________
Paul Scott, Committee Chairperson, Retired Regional Director of the Agency’s Pacific and Yukon Office

___________________________________________
Ray Crook, Environmental Assessment Consultant

___________________________________________
Patrick Duffy, Environmental Assessment Consultant

Recommended Participant Funding Allocations
Ajax Copper / Gold Mine Project
Aboriginal Funding Envelope

Applicants	Total allocation amount recommended
TK’emlups (Kamloops) Indian Band	$147,050
Skeetchestn Indian Band #687	$102,000
Lower Nicola Indian Band	$30,150
Métis Nation British Columbia	$25,700
Ashcroft Indian Band	$24,800
Total:	$329,700