Participant Funding Program – Regular Funding Envelope
Funding Review Committee’s Report

Allocation of Federal Funds for the Environmental Assessment of the Cliffs Chromite 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.

A Funding Review Committee (FRC) independent of the environmental assessment (EA) was established for the Cliffs Chromite 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 – Regular Funding Envelope (RFE) 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 RFE for this project, a total of $40,000 was made available to support public participation in the EA, linked to the:

• review and comment on the Environmental Impact Statement (EIS); and
• review and comment on the Comprehensive Study Report (CSR).

The deadline to submit an application was November 16, 2011. Two applications were received requesting a total of $14,400.

On December 9, 2011, the FRC met to review the applications. The FRC members were: Mr. Bruce Young, retired Director of Panel Management with the Agency, acting as FRC Chairperson; Mr. Patrick Duxbury, Environmental Assessment Consultant; and Ms. Patricia Larkin, Environmental Health Specialist.

Background

Cliffs Natural Resources Inc. (the proponent) proposes an open pit/underground chromite ore mine (30 year mine life at predicted extraction rate of 6,000 to 12,000 tonnes/day) and ore processing facility. The proposal also includes an integrated transportation system consisting of a new north-south all-weather access road corridor and a new ferrochrome production facility, which would be located at a different location than the mine site. The project mine site is located approximately 540 km north of the City of Thunder Bay, Ontario and 240 km west of James Bay in an area known as the "Ring of Fire".

Based on the initial analysis of the Project, the Agency anticipates that Fisheries and Oceans Canada, Transport Canada and Natural Resources Canada have section 5 responsibilities under the Canadian Environmental Assessment Act. The Project as proposed by the proponent is listed on the Comprehensive Study List Regulations..

This project is also subject to the environmental assessment requirements of the Government of Ontario.

Eligibility

Under the PFP – RFE, funding may be provided to support applicants’ input to an EA 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 be able to demonstrate that they meet at least one of the following eligibility criteria:

• have a direct, local interest in the Project, such as living or owning property in the project area;
• have community knowledge or Aboriginal traditional knowledge relevant to the EA; or
• have expert information relevant to the anticipated environmental effects of the Project.

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

Under the PFP – RFE, applicants can request funding for costs related to:

• professional fees;
• staff salaries and benefits;
• travel expenses;
• honoraria for Elders and Chiefs to attend meetings and functions;
• ceremonial offerings related to receiving traditional knowledge in relation to the EA;
• administrative and reporting costs;
• local collection and/or distribution of information;
• office supplies and telephone charges;
• rental of office space and meeting rooms;
• legal fees;
• general media advertising and/or promotion;
• purchase of information material, with supporting documentation; and
• other detailed expenses.

Rationale for Allocation

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

• the ability of applicants to demonstrate that they had met one or more of the eligibility criteria listed above;
• the quality, clarity and content of the application and the applicant’s proposed EA participation work plan; and
• the eligible activities under the PFP – RFE for the Project, which include reviewing and commenting on the EIS and the CSR.

Recommendation

The FRC recommends allocating $13,800 of the available RFE funding to support the two applicants as follows:

• $7,200 to MiningWatch Canada; and
• $6,600 to the Ontario Coalition of Aboriginal People.

The FRC further recommends that any funding allocation be conditional on a provision of written comments, by the applicants, to the Agency on the EIS and the CSR.

The Funding Review Committee
Cliffs Chromite Project
Regular Funding Envelope

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Bruce Young, Committee Chairperson, retired Director of Panel Management with the Agency

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Patrick Duxbury, Environmental Assessment Consultant

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Patricia Larkin, Environmental Health Specialist

Recommended Participant Funding Allocations
Cliffs Chromite Project
Regular Funding Envelope

Applicant	Total Allocation Amount Recommended
MiningWatch Canada	$7,200
Ontario Coalition of Aboriginal People	$6,600
TOTAL	$13,800