The Yukon Water Board and the territorial government are again at odds over licensing requirements.

The Department of Energy Mines and Resources maintains the Minto Mine does not need a new water licence nor an amendment to its existing licence before it begins preparation of its next open pit deposit, according to officials.

Government officials have indicated recently the authority to begin stripping overburden at the new site later this month is covered under the Quartz Mining Licence, which falls under the jurisdiction of the Yukon government.

The water board, however, indicated in a letter last Friday to the Minto Mine and the government’s senior mining inspector that it believes the mine does need a new water licence or an amendment before it begins its stripping program.

Mine officials have indicated if they did not begin stripping the new pit later this month, it would lead to the layoffs of the remaining 68 Pelly Construction employees.

On the other hand, if the stripping program proceeds as planned, there could be a recall of 20 or more of the 44 Pelly employees laid off last January when production at the exisiting open pit was cut in half to stretch out ore reserves.

Pelly is the Whitehorse company contracted to do the open pit mining and other heavy equipment work onsite.

Minto Mine officials were out of the office this morning and unavailable for comment.

Spokesman Jessie Devost of the Department of Energy, Mines and Resources said this morning government officials and officials from the water board were meeting today to discuss the licensing requirements and arrive at a solution.

“But we do not have any comment at this time, because we do not want to pre-suppose those discussions,” he said.

The Minto Mine wrote the water board last month to inform the board it would begin stripping and preparing the new Minto North deposit later this month once it received the required amendment to its Quartz Mining Licence. It asked the water board for a response.

In its response last Friday following a board meeting last week, the water board wrote: “The board does not agree that the activities you propose can be characterized as not requiring a licence under the legislation.... Should you proceed without a valid licence, you may be subject to enforcement action.”

The Minto Mine applied in July for a new water licence to cover off work at the new Minto North pit, though it’s commonly accepted the process will take a few more months to complete.

The mine was in the same position over two years ago when it began stripping the pit that it’s working today, with the approval of the Department of Energy, Mines and Resources under the Quartz Mining Licence.

But when the water board did issue a licence for that new pit several months later in October 2012, it said the stripping work back in April 2012 should have been covered by a new or amended water licence, despite what the Yukon government believed.

A senior government official acknowledged at the time there was a difference of opinion between the Department of Energy, Mines and Resources and the water board, a difference of opinion that may have to be settled in court some day.

Inspectors from the department are responsible for ensuring compliance with the Quartz Mining licences and water licences.

When the responsibility for water inspectors was transferred from Environment Yukon to Energy, Mines and Resources in 2013, there was concern raised by the official Opposition.

Having the same inspectors responsible for mining also be responsible for ensuring water compliance was a natural conflict, it was suggested.