Participant Funding Program – Regular 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.

A Funding Review Committee (FRC) independent of the environmental assessment (EA), was established for the Ajax Copper-Gold Mine Project (the Project),which is being conducted by means of a comprehensive study (CS). Its purpose was to assess funding applications received under the PFP – Regular Funding Envelope (RFE) to participation in the EA processes for the proposed project, and to recommend whether funding should be provided, and if so, in what amount.

On June 14, 2011, a total of $50,000 was made available under the RFE for this project to support public participation in the EA, including:

• Review and comment on the Environmental Impact Statement (EIS) Guidelines;
• Review and comment on the EIS submitted by KGHM Ajax Mining Inc. (the proponent);
• Review and comment on the Comprehensive Study Report (CSR); and
• Participation activities (meetings, etc.) and related travel costs linked to the EA, and in particular, to the review of these documents.

The deadline to submit an application was July 16, 2011. Three applications were received for a total funding request of $73,363.

On July 20, 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 Patrick Duffy, Environmental Assessment Consultant.

Prior to the FRC's deliberations on the applications, the EA Manager for the Agency provided information on the Project and outlined the expected steps in the EA process.

Background

The proponent is proposing to develop the Project which is a copper-gold mine located partially within the City of Kamloops, British Columbia (BC). The Project has a projected mine life of 23 years with 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 Canadian Environmental Assessment 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 for the EA of the proposed project is an authorization under section 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 will participate as federal authorities in the CS and may participate as responsible authorities in connection with authorizations related to navigable waters, explosives and migratory birds.

Immediately following the posting of a Notice of Commencement, provision will be made for an initial public comment period. Comments will be invited on both the proposed project and on the CS process. The public will be provided an opportunity to participate in the CS through the review of the following; the draft EIS/provincial Application Information Requirements, the EIS/provincial Application submitted by the proponent and the CSR prepared by the Agency and submitted to the Minister of the Environment.

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

Eligibility

Under the PFP - RFE, funding may be provided to applicants to support their 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 a review panel.

Eligible recipients must plan to engage in 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:

• that the applicant(s)have a direct, local interest in the Project, such as living or owning property in the project area;
• that the applicant(s) have community knowledge or Aboriginal traditional knowledge relevant to the EA; or
• that the applicant(s) can provide 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;
• local collection and/or distribution of information;
• travel expenses;
• honoraria for Elders and Chiefs to attend meetings and functions;
• ceremonial offerings related to receiving traditional knowledge in relation to the EA;
• rental of office space and meeting rooms;
• office supplies and telephone charges;
• administrative and reporting costs;
• legal fees;
• purchase of relevant information material, with supporting documentation;
• general media advertising and/or promotion; and
• other detailed expenses, with supporting information.

Rationale for Allocation

In reviewing the applications received 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;
• The eligible activities under the PFP – RFE for the Project.

Recommendation

The FRC recommends allocating a total of $38,075 to support the three applicants as follows:

• $18,700 to the Grasslands Conservation Council of British Columbia, on behalf of the Kamloops Naturalist Club and the Kamloops District Fish and Game Association;
• $11,950 to Sharon Antoniak on behalf of Kamloops Area Preservation Association; and
• $7,425 to Susan McGillivray

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

The Participant Funding Review Committee
Ajax Copper-Gold Mine Project
Regular 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
Regular Funding Envelope

Applicants	Total allocation amount recommended
Grasslands Conservation Council of British Columbia, the Kamloops Naturalist Club, and the Kamloops District Fish and Game Association	$18,700
Sharon Antoniak on behalf of the Kamloops Area Preservation Association	$11,950
Susan McGillivray	$7,425
TOTAL	$38,075