Whitehorse Daily Star

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Pictured above: RANJ PILLAI and RANDY CLARKSON

Compensation not on new minister’s mind

The Yukon government has accepted the recommendation to reject a placer mining proposal in Dawson City.

By Chuck Tobin on December 15, 2016

The Yukon government has accepted the recommendation to reject a placer mining proposal in Dawson City.

The Department of Energy, Mines and Resources issued the decision Wednesday afternoon.

It agreed with the Yukon Environmental and Socio-economic Assessment Board that Darrell Carey’s proposal to conduct mining and exploration activities on 34 placer claims would negatively affect local cross country ski trails.

The claims are located between the Klondike River and the Dome subdivision, inside the expanded municipal boundaries.

The department accepted the board’s finding that there was no way to mitigate the impact on the trails.

The decision, however, does not prevent Carey from redesigning his project to address the concerns raised and re-submit his application for another review, the department points out.

Carey’s agent, Randy Clarkson, told the Star this morning the decision is beyond unfair – way beyond.

Clarkson said Premier Sandy Silver suggested during the fall election campaign that the Yukon government explore compensation where there is an irreconcilable dispute between the rights to mine and community interests.

Carey, he emphasized, bought out his former partner’s interest in the claims last spring for $752,000, in what was a court-approved sale process that required cash up front.

He put a second mortgage on his home and he borrowed from friends to come up with the money so he could mine the ground.

Carey isn’t trying to play the system so he can get compensation, Clarkson insisted.

He said Carey isn’t an outgoing public figure. He is a quiet, blue-collar guy who simply wants to a make a living from mining the claims.

When you take $750,000 out the pockets of a blue-collar guy, it hurts – and it hurts a lot, Clarkson suggested.

He said the government’s invitation to resubmit a new proposal, if Carey wanted to, is simply a move to cover its behind.

Denying his right to mine is expropriation of those rights, and the government doesn’t want to pay compensation, he said.

Carey, he added, has already invested substantial time and money in this application.

Clarkson said he couldn’t say this morning whether Carey will launch a legal challenge.

But he pointed out the government has its own bank of lawyers, and it doesn’t mind spending $10 million in legal costs to save $500,000.

Clarkson said they’ve already offered to work with the local ski club to relocate the ski trails that would be affected so that the new trails would connect with the existing trail head, but the community has already said no.

A section of the claim block was mined as recently as a couple of years ago under a different licence, he pointed out.

And, as he has been doing for months, Clarkson emphasized the claims were there before the ski trails, and in fact the ski trails were established on old exploration trails.

He re-emphasized the claims were there before the town of Dawson expanded its municipal boundaries over top of the claim block, Clarkson reiterated.

“This is not fair,” he said. “I think if the government is going to reject Carey’s application to mine, that he should be compensated.”

Energy, Mines and Resources Minister Ranj Pillai told the Star this afternoon compensation is not on his mind at this point.

He said he will ensure his department provides Carey with the resources to carry on the discussion about his mining proposal in the new year with the Tr’ondek Hwech’in, the town of Dawson, the ski club and other stakeholders.

Compensation is not on his mind because he believes continued discussions supported by his department will come up with a satisfactory solution, the minister said.

Pillai said in the new year, he will be spearheading an effort to begin the overall discussion about how to address these conflicts inside municipal boundaries, as it’s an issue that desperately needs addressing.

“These conversations, and the conversations that need to happen, they are tough conversations but they need to happen,” said the newly-appointed Liberal minister of nine days. “They should have happened 10 years ago.”

He said compensation will most certainly be discussed among the suite of options available to resolve disputes.

But in this case, Pillai reiterated, he believes there is a solution that will allow Carey to mine his gold while addressing the concerns of the community.

Jonas Smith of the Klondike Placer Mining Association said this morning members of the community should not lose sight of the fact that the decision has serious financial implications for Carey.

It’s easy to have the academic discussion about whose rights outweigh whose rights, but the financial implications of Wednesday’s decision fall to Carey and Carey alone, he suggested.

“I am disappointed that everybody involved in the process could not come together and reach a solution,” Smith said.

“I find it ironic because those ski trails evolved on top of old exploration trails.”

Smith said Carey is out a lot of money and currently is unable to exercise his right to mine that ground.

Comments (10)

Up 2 Down 0

Michele on Dec 30, 2016 at 9:27 pm

The Yukon Government is encouraging mining and miner like activities. They are also selling residential lots at or on mining claims. Darrell purchased these claims that were active and in good standing because he worked them and knows they are proven ground. They were a sure thing and a great investment so he invested heavily into them. With words like grandfathered in, and miners rights he felt it was a sure thing. Now the governments mistakes are landing in his lap. People are taking out these atrocities on Darrell and the government is allowing him to fight their fight. Darrell has done nothing wrong he should be left alone to make a living for his family or compensated for a forced loss of investment.

Up 5 Down 0

PO'd on Dec 21, 2016 at 12:43 pm

Maybe we should all stay home singing Kumbaya and let the not for profits run the show! I live and work in Dawson City and I have noticed there are far fewer ski supply stores than there are businesses catering to the mining industry in town.
Skiing is great, we did it all the time growing up in the Yukon. Not on groomed trails, in dedicated skiing areas, and not with helmets. If we wanted to ski, we had to find a trail or cut one out by hand. We learned how to downhill ski on cross country skis and we never whined about it! It was fun and that's how things were done in the north. The notion that ski trails can't be moved is absurd.
Where I see the biggest failure of our assessment process is; the laws of application aren't applied equally across the board. Klondike Active Trails and Transportation Society (KATTS) can go ahead and apply and receive funding for cross country ski trail upgrades on an active placer mine without the owners knowledge or consent. They can go ahead and develop these trails without going through the YESAB process. On the other hand we see what happens to miners and prospectors if they so much as consider cutting a trail and GOD forbid walking a low impact, track mounted drill to site without proper consideration and approvals. Where are the laws of equal application in this?
I for one don't want to be paying out compensation dollars every time an interest group takes interest in my investment. This is ludicrous and a crying shame for those who have their life savings invested in an active mine.

Up 8 Down 12

Nike on Dec 20, 2016 at 12:57 am

Fair and Liberal don't really belong in the same sentence.

Up 36 Down 10

Paul winje on Dec 19, 2016 at 3:48 am

NIMBY's are becoming too powerful these days. The mine was there before the town went there. The trails infringe on the mining claim and on the owners right to make a living. How stubborn does one have to be to insist on keeping their "stolen" trails right there in the way of the rightful owner. Moving the trails was offered, but no. You self important people have to have it your way, for your convenience. How spoiled a generation are you? Grow up people.

Up 35 Down 10

Travis ulrich on Dec 18, 2016 at 11:25 pm

This decision just put a bunch of great people out of work. I've worked on this mine with Darrel for two years, and during the summer I live, work and spend money at the businesses in Dawson. I also own a business that leases a gravel quarry in Whitehorse which happens to be located 50 ft. away from the trans-Canada trail where people ski all winter. I guess I should worry that when I try to renew my land use permit in the future, a single YESAB assessor, and a bunch of skiers, hold all the aces! Be careful investing in Yukon business...

Up 56 Down 19

OMG on Dec 16, 2016 at 8:34 am

Are you kidding me, trails that were created by miners are now the property of cross country skiers, what a joke. I would sue anybody that was involved in this man's losing possibly millions and millions. If the city of Dawson was involved, for sure the Yukon Government,the Ski association and any one else in this blunderous BS. This Territory is becoming a load of BS, people need to make a living, all the hypocrites and Eviro whiners are killing families ways of life. Are we going backward or forwards in this territory, if you're against the Territory Developing... GET OUT!!

Up 53 Down 9

ProScience Greenie on Dec 15, 2016 at 10:02 pm

Shame as it is actually a legitimate placer deposit. Shame that so many x-country skiers can't share the land, especially when there is no skiing during mining season.

Up 29 Down 17

Dawson on Dec 15, 2016 at 5:08 pm

The 'right to mine' is a red herring. The grantee of any claim under the Placer Act has no automatic legal 'right to mine', only the exclusive right to enter that land for that purpose and accrue any revenue from it.

Before permission to mine can be given, the law requires the grantee to submit an operating plan which the government must assess for adverse environmental and socio-economic impacts that cannot be mitigated. If they cannot be, then there is no 'right to mine'. The public government has a duty and the 'right' to make these decisions.

Up 34 Down 16

jc on Dec 15, 2016 at 4:46 pm

Well, they voted Dawson resident Silver for premier. Serves them right. He made promises to the Natives and environmentalists, but not the miners. So, placer miners, get ready for new mining rules that will eventually put many of you out of business.

Up 38 Down 12

Max Mack on Dec 15, 2016 at 4:38 pm

Outright denial? For x-country ski trails that were put in after the claims were established, on old exploration trails? And the miner offered to relocate the trail?

Wow.

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