Whitehorse Daily Star

Industry upset by proposed changes to mining laws

The territory is mulling amendments to the Quartz Mining Act that could allow First Nation governments greater control in who can enter into an area for staking, prospecting and mining purposes.

By Palak Mangat on July 23, 2018

The territory is mulling amendments to the Quartz Mining Act that could allow First Nation governments greater control in who can enter into an area for staking, prospecting and mining purposes.

The possibility has raised some “alarm bells” with the Yukon Chamber of Mines.

That’s according to Samson Hartland, the chamber’s executive director, who worries it could change the free-entry approach that the territory has long permitted.

Noting that a significant portion of his membership’s livelihoods depend on this, he told the Star today the amendments looks “like the potential erosion of that system as we know it.”

His comments come after correspondence from the assistant deputy minister of strategic alliances, a branch with the Department of Energy, Mines and Resources.

Signed by John Bailey, it served as notice about a 45-day engagement period on the proposed changes that Hartland confirmed he had received July 6.

Both the Yukon government and Council of Yukon First Nations were unable to respond to the issue this morning.

The letter reads in part that amendments “would support agreements that the Yukon government may enter into with First Nations to allow only the First Nation or their designated entity to enter land for the purpose of locating mineral claims and prospecting and mining.”

The latter half of the notice reassures that the amendments “do not alter the free entry system, except in one way.”

But that one way could still be majorly problematic and lead to uncertainty for the industry, Hartland told the Star.

Currently, certain areas in the territory are off-limits to anybody who wishes to locate mineral claims, prospect and mine.

Bailey’s letter notes that the changes could allow for exemptions to be made to allow either a single entity or a group who intends to do either of these things.

That means that some of those areas that have been placed off-limits (be it for a specific time period or indefinitely), like the Ross River moratorium, which was extended for another two years in April, could now open up to falling under the control of First Nations “or their designated entity” for the purposes of prospecting, the letter adds.

Of what he knows so far, Hartland said the “potential ramification is quite significant.”

Noting that mining amendments can be few and far between, he questioned the motivation behind the proposed changes.

Bailey’s notice cites that in the spirit of “further reconciliation and (to) enable accommodation, where required, with a Yukon or transboundary First Nation,” the proposed changes are made “in line with our stated commitment to working collaboratively with Yukon First Nations for their benefit and the benefit of all Yukoners.”

While Hartland is supportive of this, he fears it could have long-lasting impacts on some parts of his membership.

“We agree reconciliation with Yukon First Nations is obviously a key priority; that’s the right thing to do and it’s long overdue.

“However, how you go about reconciliation when it comes to the development of Yukon’s mineral and resources is another question.”

Reading through Bailey’s letter and the statement in reference to designated entities, Hartland pointed out it could be a significant change from the current system.

“If that’s the case, the implication is that First Nations could partner with whoever they want,” he said.

It could include major mining companies, but would be a change as “it’s always historically been that anyone can stake those claims.

“The reality is that’s what’s been so cool,” he said, adding that the territory hasn’t been a “wild west” but a “beacon of freedom and hope and opportunity that anybody in the world (can) realize Yukon’s next mother-load.”

It’s a system that Bailey’s letter suggests could be impacted.

Noting that it could expand when entry into certain areas is prohibited, the letter reads that “in some instances it may be appropriate to reach agreements with First Nations that limit who can locate mineral clams and prospect and mine for minerals.”

It continues that as a result, “good working relationships for First Nations and industry” could develop to access this land.

But that’s a relationship that could be compromised, said Hartland.

“It seems almost abbreviated,” the executive director said of the timeline, noting that the chamber was notified 45 days before consultation closes – “not as much as those 60 days we’ve been accustomed to.”

On top of that, he said, meetings with government officials provided little relief from these “anxieties.”

A July 19 letter the chamber shared with its membership noted that YG representatives had “preliminary conversations” with the chamber at that very day’s board meeting, but it “received very little clarification.”

The letter continues that the chamber requested a draft of the proposed amendments – but to no avail. It was told it would not be shared until after consultation is complete or before it’s tabled in the legislature.

Hartland sighed: “Yet we’re being asked to participate in a consultation period right now that ends August 21st.”

That’s according to Bailey’s letter, as well as a government webpage detailing the public engagement process – which also notes that come September, a “what we heard” document will be posted after public input helps “determine the best wording for the amendments to the Act.”

“The issue is we’re dealing with hypotheticals and a little bit of ambiguity” as a result of not being able to see the actual amendments, Hartland said.

The chamber’s letter to its members did continue, though, that based on dialogue with officials, one “amendment would allow First Nations to stake claims on lands set aside by moratorium.” This could in turn displace workers hoping to stake claims.

Hartland noted that during his time with the chamber, he has not seen any similar amendments proposed.

“I’ve been here for five years, and free entry was never considered to be amended or changed.”

Bailey’s notice reads that the amendments could allow the government to “prohibit entry to areas of Yukon.”

That means questions like whether – or to what extent – the amendments could apply to unsettled Crown land that flows into a First Nation’s traditional territory remain unanswered, Hartland added.

“That’s the million-dollar question,” he said, among many others he hopes are clarified.

Bailey’s letter cited “additional opportunities for economic development by creating an environment where the First Nation can more actively participate in the mining industry in Yukon.”

Hartland, however, remains unclear on the motivation, saying the government should take into consideration “unintended consequences” the mining industry could face as a result.

He did add, though, that he asked officials what triggered legislative changes like this.

“That’s where we’re surprised; it’s a significant change,” he said.

He was told by the government that it was “something that folks have been asking for for years.”

With the moratorium in Ross River’s Kaska area, more than half of the territory’s total land is currently off-limits to staking – which, Hartland pointed out, includes 17 per cent thanks to the December 2017 Peel Watershed decision from the Supreme Court of Canada. He said that increases a need for more “grassroots (forms) of new discovery.

“We’re not going to experience the negative effects short-term, but the implications long-term are there,” he said.

“The implication on a potential segment of our industry can’t be overstated – this is people’s livelihood we’re talking about,” he continued, noting that there is “less and less land to be able to stake.”

While he expects the proposed changes to be tabled before he is able to take a look at them, Hartland said, he hopes the chamber is successful in pressing YG to view the amendments over the coming months.

Comments (14)

Up 2 Down 0

woodcutter on Jul 30, 2018 at 11:56 am

@ ProScience Greenie

The rationalization of the industry I am in, has already happened. While entry and retention of harvest permits is still open, there is a requirement to prove yourself, in order to get larger harvest quota. The time when a person off the street could get a woodlot, and then sit on it for years and not perform are over.

Strict harvest guidelines and constant monitoring of activity and large fee's to access the timber ensure the public gets clean operations and a cost recovery to build roads, layout blocks and value for the timber. Sometimes the rates applied are larger then my fuel cost. Depending on past performance and the scale of proposed new operations, a substantial deposit is required to protect the Yukon Public.

Yessa processes are required for all harvest blocks and input from the local first nation in developing management plans and Annual allowable cuts is already in action. So nothing new there, it's all in hand, too bad the mining sector can't be held to the same standard without a bunch of belly aching and sniveling.

Complaints of the action of YG or Yessa, is just "fake news" being spread by the haters and losers. The exploration business should have to show "capacity" before they are given a privilege to stake out claims. They should show knowledge of the rules and guidelines at least. Goeppel lawyer claims that confusion and unclear regulations led to the bulldozing. I say that a process, education and testing, could be one of the requirements before someone is granted the privilege to engage in this activity. This would ensure that folks on the land searching for these riches have an clear understanding of the rules of the road.

Just saying.

Up 0 Down 0

Groucho d'North on Jul 29, 2018 at 5:02 pm

Ben Alvey,
What good does a bump in GDP provide when the average Canadian household is struggling to make ends meet? http://www.baystreet.ca/economiccommentary/2303/National-Survey-Finds-25-Of-Canadians-Struggling-To-Make-Ends-Meet

The Trudeau LIberals employ the Bread and Circuses approach to distracting from the larger issues. Imposing the carbon tax will be the final straw for many having a tough go of it now.

Up 1 Down 1

Ben Alvey on Jul 29, 2018 at 3:41 am

@groucho de grouchy Did you see what the Federal Liberals did with the last quarter GDP numbers? Home run.

Up 3 Down 4

ProScience Greenie on Jul 26, 2018 at 7:54 pm

Too bad you didn't take the time to dig a little deeper in the road thing woodcutter. Such shenanigans done by YG and or YESAB may end up affecting you and your industry if feet are not held to the fire.
Before the free entry system is scrapped maybe it would be kind to consider negative affects on regular folks that make a living that way. Not everyone is a rich mining company. Throwing regular folks under the bus is not the Yukon way. Not cool.

Up 17 Down 9

woodcutter on Jul 26, 2018 at 10:25 am

Its about time. The free entry system resulted in a Guy like Goeppel to bulldoze 17km of road. I did not hear any comment from Sampson to condemn this action. Perhaps with more oversight about what kind of characters are given the privilege we won't have a repeat.

To protect our wilderness environment, we need to ensure that those involved have the means and character to be on the land. The means to clean up the messes and the character that gives us a assurance that they will behave in a manner that respects the privilege they are given.

Up 19 Down 6

ProScience Greenie on Jul 25, 2018 at 7:40 pm

How come tourism gets to exploit the Yukon for big profits and a huge enviro footprint but pays no royalties?

Anyways, guess this government forgot about the listening to Yukoners part of their election platform.

Up 11 Down 19

too nice out to get angry but.. on Jul 24, 2018 at 8:10 pm

I'm really going to miss that 17 cents an ounce royalty that the gold miners are paying. Samson's right, what a horrible thing it would be for the Yukon if miners weren't allowed to go wherever they want no matter who they are or where they came from. Think of that 40 thousand bucks or whatever it is, that the placer miners contribute to the governance of our territory! It almost pays half a salary at the mining recorder office.

How's this for entitled, “We agree reconciliation with Yukon First Nations is obviously a key priority; that’s the right thing to do and it’s long overdue.
However, how you go about reconciliation when it comes to the development of Yukon’s mineral and resources is another question.”

In other words, "Reconciliation is great, but not on OUR dime! Don't let it reduce the privileges that the mining industry has enjoyed and exploited for over a hundred years."

I've lived up here for going on 3 decades and my initial respect for the mining industry has been significantly reduced with familiarity.

Up 23 Down 6

Max Mack on Jul 24, 2018 at 4:20 pm

Certainty has completely gone out the window. And the little guy, once the backbone of the mining industry, will be no longer. Instead, only large corporations who can afford to "pay-to-play" will be able to participate. Good for Justin and his corporate buddies?

I understand that government wants to "work together" with FNs. However, imagine +14 FNs all trying to regulate your behaviour on land that is not Category A or even B land. The opportunities for cronyism, nepotism and corruption are glaring, aside from the problems of abuse, incompetence, poor oversight and having to deal with multiple, overlapping authorities.

FNs are already able to take advantage of the free-entry system, just like everyone else. Odd that they choose not to.

@Miles Klondike: "salt of the earth". Pfffttt.

Up 17 Down 2

Groucho d'North on Jul 24, 2018 at 3:20 pm

Be wary of governments that don't include the involved parties when they move to change the rules, it usually means somebody is about to get screwed. Being Liberals they will say its a part of reconciliation where nobody is held accountable.

Up 6 Down 9

woodcutter on Jul 24, 2018 at 3:00 pm

oh oh, I can hear the wailing and sniveling already.

Up 15 Down 3

Just Sayin' on Jul 24, 2018 at 1:43 pm

There are various people who care about the environment more than SOME of the First Nations. Instead of having one side represented more than others, it should be the the same. Instead, government and society further the divisiveness in society and in doing so are oppressing others. It amuses me immensely to see a group of people who were persecuted, forced to assimilate, forcing others to do the same with their culture. Instead of being a synergistic unit with all members of a community, further boundaries continue to be formed. Such a sad state of affairs.

Up 7 Down 10

Torn A. Sunder on Jul 24, 2018 at 12:52 pm

Whenever the topic of mining comes up I'm always struck that many pros and cons are expressed but very rarely is the fact that mining, in it's current guise, is fundamentally wrong.

Yes we all need the resources and use technology that requires those resources. The part that gets me is that we exploit any given resource at the behest of a profit motive, plain and simple. The fact that we may need the things we extract or mine is vastly secondary to the drive for huge profits and the subsequent hoarding of those profits. If the market swings in a way that means there is little profit to be had then that endeavor will cease....it does not matter that there may be a need for a given thing, it only matters if there is money to be made. It does not matter that people need to make a living or support their families or require "things" that allow them to do so.

Were we to use only what we need and use it in a way that is not designed from the start to wear out then we'd be much better off I think. Consider all the absolute crap on the market, teeny widgets that are broken and trashed in days or hours. An endless variety of clever details applied to a shoddy base designed to reel you in and take your money....that is the aim. A walk down any aisle at any dollar store will attest.

The quest for the dollar above all and the ubiquitous nature of planned obsolescence ensure that we turn gold to garbage while stuffing gobs of money into already fat pockets.

I make my living in a way that is directly tied to the current mining activity and were the mining to dry up we would be seeing a lot less work....but still, at the base, Ya just know it's wrong.

It's here folks...the big time players from around the world with money to spare and machines as big as 4 plexes are doin' it up right.

As always, I'm Torn.

Up 13 Down 15

Josey Wales on Jul 23, 2018 at 11:21 pm

Fantastic....gee this outta help our community heal eh?
...about that though, purdy sure bulldozers and machinery has origins in white mans Europe?
Cultural misappropriation for anyone but whitey to use machinery.
Wonder when the threshold will be reached...
Given the ridiculous nature of revisionist history/politics in how the cultural elites are clearly marching to a different drum...why not add Shariah law in the mix too?
What a mess, feel like I reside in South Africa.
Identity politics will most certainly destroy us, as is the plan...right outta Stalin’s playbook.
What a absolute disgrace this is even being considered...

Up 15 Down 22

Miles Klondike on Jul 23, 2018 at 7:22 pm

Enough is enough I like First Nations and think they care about the environment

We continually hear about the benefits of mines and seem to subsidize them only to be left with a mess we cleanup at taxpayer expense.
Let's stop environmental vandalism for that is what it is Sampson. We have heard from the salt of the earth please respect what they say.

Add your comments or reply via Twitter @whitehorsestar

In order to encourage thoughtful and responsible discussion, website comments will not be visible until a moderator approves them. Please add comments judiciously and refrain from maligning any individual or institution. Read about our user comment and privacy policies.

Your name and email address are required before your comment is posted. Otherwise, your comment will not be posted.