Certainty is needed in the Yukon's regulatory regime, particularly as the mining industry is heating up, says the Yukon Conservation Society's mining co-ordinator.

Lewis Rifkind said this week the uncertainty over jurisdiction that has surfaced between the Yukon Water Board and the Department of Energy, Mines and Resources needs to be straightened out as soon as possible.

"We have the Minto Mine, we have Alexco and the things at Keno, we have the Wolverine Mine and we're probably going to get Victoria Gold and Brewery Creek,” he told the Star.

"It would be nice to sort out these issues now when it looks like we have a couple of projects coming on line.”

Rifkind noted the water board indicated in a decision this week the Minto Mine had been operating in violation of its water licence since April 2011. That's when it began preparing a new ore body, which involved generating waste rock, among other things.

Capstone Mining, which owns Minto, proceeded with the stripping and other related work after being assured it was OK by officials with Energy, Mines and Resources

Rob Thomson, the department's director of inspections, said this week Energy, Mines and Resources maintains the work that commenced in April 2011 was covered by the approval his department issued under Capstone's Quartz Mining Licence.

The water board, however, said in its decision on Minto's application to amend its water licence that producing and relocating waste rock, among other activities it undertook in April 2011, did require an amendment to the water licence.

Thomson acknowledged this week there is a grey area in jurisdiction between the water board and Energy, Mines and Resources.

Rifkind said that grey area needs to be cleared up.

In the case of the work by the Minto Mine, there was no threat to the environment involved in any case, he pointed out.

But what, Rifkind asked, if the consequences were potentially of a more serious nature?

Production of waste rock, Rifkind noted, automatically raises the question of whether there would be any acid rock generation, or any implications for surface and ground water.

Rifkind emphasized the water board and the Department of Energy, Mines and Resources don't always agree. He cited the Carmacks Copper proposal rejected by the board after it was approved and licensed by the department.

"Sort it out now,” he said of the supposed grey area that exists between the only two regulatory agencies that watch over mining in the Yukon.

"We don't want to see this coming up again, and again and again.”

Energy, Mines and Resource Minister Brad Cathers has not responded to a request from the Star for an interview to discuss the difference of opinion between his department and the water board.

Nor has he made himself available to discuss the board's suggestion that the Yukon government participate in public hearings on water licence applications.

The Minto Mine applied a year ago for an amendment to its water licence that would allow it to expand its operations into new areas. A three-day public hearing was held in July.

It was at the hearing that the board learned of work being done that it felt was in violation of the existing water licence, on two primary fronts, the board indicated last week in it decision on the application to amend the water licence.

The board noted in the decision the Yukon government did not participate in the public hearing.

Members of the board, therefore, could not question anybody about what was said to lead the Minto Mine to believe the work that commenced in April 2011 was by the books.

The board recommended in its decision that the government participate in future public hearings.

During the hearing in July, board chair Bruce Willis took the time to point out the board has the legal authority to force parties to appear at hearings if it feels their attendance is necessary.

The decision also noted the board learned in July that the Minto Mine had been milling ore from the new ore body, in contravention of its water licence.

The director of inspections said his department made it clear to the company that while it could prepare the ore body and relocate material, it did not have authority to mill any of the new ore until it received an amendment to its licence.

Capstone began milling ore on April 19 without the amendment.

The violation of the water licence was written up by an inspector the next day. Minto has continued to mill the ore since, without an amendment.

Thomson said a letter was sent to Capstone noting the infraction.

No further action was taken, as all the water being used in the milling process is being stored on-site pending the approval of the amendment licence.

The board has approved the amendment, and the newly amended licence has been forwarded to Premier Darrell Pasloski to sign off on.

Cindy Burnett of Capstone Mining declined comment when asked this week why the Minto Mine went ahead and began milling the new ore without an amendment when it was told that doing so would be a violation of its water licence.