Current permitting processes and challenges for new mines

Current Permitting Processes

and Challenges for New Mines

and Re-Opening Old Mines

Water Management for Mining Summit 2014

Bernard J. Roth

Partner

May 15, 2014

Dentons Canada LLP

Agenda - Permits and Approvals to Cover

May 15, 2014 Dentons Canada LLP 2

• Permit under the Mines Act in BC

• Exploration and Small Mines

• Notice of Work

• Multi-year area-based (MYAB) permitting

• Major Mines Permit

• BC Environmental Assessment Certificate

• Canadian Environmental Assessment

• Fisheries Act Approval

• Navigable Protection Act Approval

Mines Act Permit Requirement


• Section 10(1) of the Mines Act

• Must have a permit before starting any work in, on or about a mine

• Permit is issued by the Chief Inspector

• The application must include

• A plan of the proposed work

• A program for conservation of cultural heritage resources

• A program for protection and reclamation of the land, watercourses and cultural heritage

• Exemptions are possible (s. 10(1.1) and (2))

Mines Act Permit - Notice of Work (NoW)


• Intended for coal or mineral exploration programs and for approvals of

placer mining, or sand and gravel pits and quarries

• The permit must be obtained before any mechanized work can occur

• Application must include the following regarding water management:

• Plan(s) outlining the details of the proposed work and a program for the

protection and reclamation of the land, watercourses and cultural heritage

resources which may be affected by the proposed activities

• Information about the present state of the land

• Description and estimated cost of reclamation program for each activity

Deemed Authorizations and Mines Act Permit

Exemptions


• The following are deemed authorized activities:

• If a proponent holds an exploration permit, induced polarization surveys using

exposed electrodes

• For an operating mine, additional exploration drill programs and IP surveys in

the permitted area of disturbance

• Extension of exploration activities for up to two years

• Notification to the Ministry is required

Multi-Year Area Based Mines Act Permits


• Authorizes exploration activities for up to 5 years in an area (s. 10(3) of

Mines Act)

• Provides flexibility to proponent to adjust work based on field results and

market conditions

• First Nations can review information for an area in one application, rather

than several applications

• Streamlines administrative process

• Follows the same approval process as NoW

• Engineering, water and archaeological studies may be needed during

review process

• Proponent submits annual updates to MMRD

Mines Act Permits for Major Mines


• A detailed ‘Mine Plan and Reclamation Program’ must be submitted and

must include the following regarding water management:

• Design, construction, operation and mine closure details that consider the

safety of the public, mine workers, and the protection of the environment;

• A program for the protection and reclamation of the land and watercourses

during the construction and operational phases of the mining operation;

• A conceptual final reclamation plan for the closure or abandonment of the

mining operation;

• An estimate of the annual cost of outstanding reclamation obligations over the

planned life of the mine including the cost of long-term monitoring and

abatement; and

• Any other relevant information that may be required by an Inspector.

BC Environmental Assessment


• An environmental assessment will be required if the project meets the

criteria for a reviewable project

• An application for a mine permit and environmental assessment may be

submitted concurrently, but an environmental assessment certificate

must be obtained before a mine permit can be issued

BC Environmental Assessment – Reviewable Projects


Project Category –

Column 1

Criteria for a New Project – Column 2 Criteria for Modification of Existing Project –

Column 3

Coal Mines A new mine facility that, during operation, will

have a production capacity of > 250 000

tonnes/year of clean coal or raw coal or a

combination of both clean coal and raw coal.

The facility meets the criteria in Column 2 and the

modification will result in the disturbance of

(i) at least 750 hectares of land that was not

previously permitted for disturbance, or

(ii) an area of land that was not previously permitted

for disturbance and that is at least 50% of the area of

land that was previously permitted for disturbance at

the existing facility.

Mineral Mines A new mine facility that, during operations, will

have a production capacity of > 75 000

tonnes/year of mineral ore.



(i) at least 750 hectares of land that was not

previously permitted for disturbance, or

(ii) an area of land that was not previously permitted

for disturbance and that is at least 50% of the area of

land that was previously permitted for disturbance at

the existing facility.

Sand and Gravel Pits A new pit facility that will have a production

capacity of

(a) > 500 000 tonnes/year of excavated sand or

gravel or both sand and gravel during at least

one year of its operation, or

(b) over a period of < 4 years of operation,

> 1 000000 tonnes of excavated sand or gravel

or both sand and gravel.


modification of the existing pit facility will result in the

disturbance of an area of land that was not previously

permitted for disturbance and that is at least 35% of

the area of land that was previously permitted for

disturbance at the existing facility.

BC Environmental Assessment – Reviewable Projects - 2


Project Category –

Column 1

Criteria for a New Project – Column 2 Criteria for Modification of Existing Project –

Column 3

Placer Mineral Mines A new mine facility that, during operations,

will have a production capacity of > 500 000

tonnes/year of pay-dirt.


modification of the existing pit facility will result in the

disturbance of an area of land that was not previously

permitted for disturbance and that is at least 35% of the

area of land that was previously permitted for disturbance

at the existing facility.

Construction Stone

and Industrial Mineral

Quarries

A new quarry facility or other operation that

(a) involves the removal of construction

stone or industrial minerals or both,

(b) is regulated as a mine under the Mines

Act, and

(c) during operations, will have a production

capacity of > 250 000 tonnes/year of

quarried product.



(i) at least 750 hectares of land that was not previously

permitted for disturbance, or

(ii) an area of land that was not previously permitted for

disturbance and that is at least 50% of the area of land

that was previously permitted for disturbance at the

existing facility.

Off-shore Mines

A new off-shore mine facility. The facility meets the criteria in Column 2 and the

executive director has determined that the modification

has the potential to result in a significant adverse

environmental, economic, social, heritage or health effect.

BC Environmental Assessment Pre-Application Process


Proponent initiates exploration and

consultation

Proponent initiates baseline

environmental studies

Proponent submits project description

to BC EAO

BC EAO determines whether an environmental

assessment is triggered

Proponent submits draft application

information requirements (AIR)

Public review period for draft AIR

BC EAO issues AIR

BC Environmental Assessment Application Process


Proponent submits application in

accordance with AIR

BC EAO screens application against

AIR - 30 days

BC EAO initiates formal review of application – 180

days

BC EAO prepares report

BC EAO refers application and

report to Minister for decision

Minister makes decision on whether

to issues a certificate - 45 days

BC EAO issues certificate

BC Environmental Assessment – Water Management


• Water management aspects that must be considered in a BC

environmental assessment:

• Site Water Management

• Surface Water Quality

• Surface Water Quantity

• Ground Water Quality

• Ground Water Quantity

• Domestic Water Quality

Canadian Environmental Assessment


• Changes made to requirements in CEAA 2012

• Assessment no longer triggered by authorization or approval from a

federal body

• Assessment required for designated projects

• Regulation sets thresholds for designated projects

• Amendments to regulation made in 2013

Canadian Environmental Assessment Thresholds for Construction, Operation, Decommissioning or

Abandonment of Mines


Mine Type Change Threshold

Rare element New Ore production greater than 600 t/d

Diamond New Ore production of 3,000 t/d

Potash/apatite Changed from potash mine of

1,000,000 t/y of product to apatite

mine of 3,000 t/d of ore

Ore production of 3,000 t/d

Stone quarry Changed from 1,000,000 t/y to

3,500,000 t/y.

Production of 3,500,000 t/y

Oil sands mine Changed from more than 10,000 m3/d

production capacity

Production capacity of 10,000 m3/d

or more

Canadian Environmental Assessment Thresholds for Expansion of Existing Mines


Mine Type Change Threshold

Metal mine Changed measurement from ore production

to mine area and changed production

threshold

50% increase in the area of the mine

operations with a resulting total production of

at least 3,000 t/d

Rare earth

element or

gold mine

Changed measurement from ore production


threshold

50% increase in the area of the mine

operations with a resulting total production of

at least 600 t/d

Coal mine Changed measurement from ore production


threshold

50% increase in the area of mine operations

with a resulting total production of at least

3,000 t/d

Diamond

mine

New 50% increase in the area of the mine

operations and a resulting total ore capacity of

3,000 t/d

Apatite

/potash mine

Changed measurement from potassium

chloride to ore production and changed

production threshold

50% increase in the area of mine operations

with a resulting total production of at least

3,000 t/d

Stone quarry

or sand or

gravel pit

Changed from 35% increase in production to

50% increase in mine area

50% increase in the area of the mine operation

and a resulting total production of 3,500,000

t/year or more

Oil sands

mine

New 50% increase in the area of the mine operation

and increase in productivity capacity of 10,000

m3/d or more

Canadian Environmental Assessment Requirements


• Environmental Effects that must be considered in the EA include:

• A change to the following components of the environment:

• fish and fish habitat as defined in subsection 2(1) of the Fisheries Act;

• aquatic species as defined in subsection 2(1) of the Species at Risk Act;

• migratory birds as defined in subsection 2(1) of the Migratory Birds Convention Act, 1994;

• A change to the environment that would occur

• in a province other than the one in which the act or thing is done or where the physical activity, the

designated project or the project is being carried out; or

• outside Canada; and

• With respect to aboriginal peoples, an effect occurring in Canada of any

change to the environment on:

• health and socio-economic conditions;

• physical and cultural heritage;

• the current use of lands and resources for traditional purposes; or

• any structure, site or thing that is of historical, archaeological, paleontological or architectural

significance.

• Any effects triggered by a federal approval for the project

Canadian Environmental Assessment Process

00 Month 2013 Dentons Canada LLP Document reference # 18

• Proponent of designated project must submit project description to Agency

(s. 9)

• Agency decides if environmental assessment required (s. 10(b))

• Responsible authority can delegate conduct of environmental assessment

(s. 26)

• Federal Minister can substitute provincial process for a CEAA review if no

referral to a review panel has been made (ss. 32 and 33)

• Project can be exempted by Federal Government from application of CEAA

as long as provincial process has justification and mitigation process for

significant adverse effects (s. 37)

• Two types of assessment – screens or review panels

• 1 year time limit for screenings (s. 27)

• 2 year time limit for panels (s. 38(3)

Fisheries Act Approval


• Authorization required from DFO under s. 35 of the Fisheries Act

• Authorization is required for activities that will result in serious harm to

fish that are part of a commercial, recreational or Aboriginal fishery, or to

fish that support such a fishery

• Prior to June 2012, authorization was required for harmful alteration,

disruption, or destruction (“HADD”) of fish habitat

• A number of water body types and types of activities have been identified

by DFO as not requiring review (http://www.dfo-mpo.gc.ca/pnw-

ppe/index-eng.html)

• Prohibition of deposit of deleterious substances in water frequented by

fish

• Currently can only be authorized by regulations under 36(4) and (5) (e.g.

Metal Mining Effluent Regulations)

http://www.dfo-mpo.gc.ca/pnw-ppe/index-eng.html








Navigation Protection Act Approvals


• Previously, under the Navigable Waters Protection Act, approval was

required from Transport Canada for works built or placed in, on, over,

under, through or across any navigable water

• On April 1, 2014, the new Navigation Protection Act (NPA) came into

force

• Now authorization is only required for work on water bodies listed in the

schedule in the NPA

• The Minor Works Order establishes classes of works that do not require

approval (http://www.tc.gc.ca/eng/programs-633.html)

http://www.tc.gc.ca/eng/programs-633.html




Thank you

Bernard J. Roth

[email protected]

403-268-6888

Dentons Canada LLP

21

mailto:[email protected]

The preceding presentation contains examples of the kinds of

issues companies dealing with mining could face. If you are

faced with one of these issues, please retain professional

assistance as each situation is unique.

Dentons Canada LLP

22

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Current permitting processes and challenges for new mines