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Carl Schulze and Karen Baltgailis

Ministers talk taxes, lawsuits if wilderness users win Peel debate

Less than a week before public consultation closes on the recommended Peel Watershed Land Use Plan,

By Jason Unrau on September 30, 2010

Less than a week before public consultation closes on the recommended Peel Watershed Land Use Plan, members of the Yukon Party government offered a window into a future under the proposed regime.

Conservation lobbies and the territory's Liberal party and NDP support the Peel commission's recommendation that 80 per cent of the 68,000-square-kilometre watershed be off-limits to development and the remaining 20 per cent be accessible by air only. (That does not include a small corridor bisected by the Dempster Highway.)

Not surprisingly, mining lobbies oppose the plan they insist would cut off access to most, if not all of 8,400 active claims in the watershed.

Between 2000 and 2008, resource exploration in the Peel region contributed more than $48 million to the economy, according to the Yukon Chamber of Mines.

While 6,800 claims have been staked in the watershed since 2004 – after the Peel commission began its deliberations – as the process nears its completion, and in light of the recommended land use plan, activity in the region has all but dried up.

But exploration in the remainder of the Yukon for 2010 continues apace. The Department of Energy, Mines and Resources is predicting $140 million will be spent by year's end, matching record exploration expenditures in 2007.

During Tuesday's budget debate in the legislative assembly, Economic Development Minister Jim Kenyon said economic activity makes investment in environmental protection possible, and that claim holders in the Peel would seek legal action if access to their claims were cut.

"What would (the opposition parties) do with all of these potential lawsuits out there?” asked Kenyon.

"There is a demonstrated need to react on that issue, but the demonstrated need isn't dictated by shooting yourself in the foot and continually reloading.”

Health and Social Services Minister Glenn Hart followed Kenyon. He suggested that if the government lost revenue from preventing exploration and mining in a "pristine environment”, then those who have access to that untouched landscape should pick up the tab.

"If you're going to have value for that pristine environment, the people who use that pristine environment will have to be taxed accordingly,” Hart told the legislature.

"In other words, the wilderness operators and the outfitters are all going to have to take some kind of responsibility in using that pristine wilderness.”

Karen Baltgailis, the Yukon Conservation Society's executive director, called Kenyon's threat of looming lawsuits were the proposed Peel land use plan accepted as is, "scare tactics.

"First of all, I would question how much validity claims for compensation would have for claims staked after the (Peel) process began,” Baltgailis told the Star.

"The point is this looks like nuisance staking ... and this is a case of buyer beware.

"And if the government had acted on the commission's and affected First Nations' recommendations and put a moratorium on active staking, we wouldn't be in this situation.”

Only in January 2010, nearly six years after the Peel Watershed Planning Commission, did the Yukon government enact a staking moratorium in the watershed.

As for Hart's suggestion that outfitters and wilderness tour operators should cover the spread for any lost revenue from mining, Baltgailis said those industries already pay their share of taxes.

But Carl Schulze, president of the Yukon Chamber of Mines, believes those Yukoners who oppose exploration and mining in the Peel are forming those opinions inside of a vacuum, and the planning process in general is taking an "ivory tower” approach.

"The Yukon is operating in a way that's completely divorced from any kind of reality, and (those opposed to mining activity in the Peel) have a feeling that mining and any resource extraction, well, they don't need it, ‘we'll still get our paycheck,'” Schulze told the Star.

"But if you work as a prospector, or mining contractor, you live in the real world.”

Schulze said Baltgailis is "dead wrong” when she calls mineral claims in the Peel registered after 2004 "nuisance staking,” as the chamber president claims many in the industry were unaware such a process was even underway.

"And if my ability to access land – the way I make money is doing mineral exploration – is taken away, I'm out of business,” said Schulze.

The relationship between industry, outfitters, tour operators and First Nations were on solid ground before the land use planning started, he added.

"People were getting along until this commission came up and told us we couldn't.”

The chance for commenting on the recommended Peel watershed plan closes tomorrow.

Comments (10)

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Groucho d'North on Oct 7, 2010 at 4:04 am

The way I see it, there are two different sectors of our economy; Tourism and mining competing to exploit Yukon land for their commercial benefit. Mining is required to adhere to a long list of regulations and acquire costly permits and invest improvements into the land as a condition of using it - Tourism not so much.

After they exploit the land, mining is required to pay a royalty on what they produce from their toil. Again Tourism - not so much.

Mining performs their own exploration to find the minerals at a huge expense which fuels our economy and puts Yukoners to work. Tourism has land set aside as parks by government for free and they still want exclusive access to more land for their commercial gain.

So it is clear that it is not an apples to apples argument here. In fact Tourism often exploits the mining investment by using exploration roads to service their clients on river trips and similar adventures.

While the Liberals and NDP are thinking a new tax for tourism, many others are thinking fairness in an un-balanced playing field for economic development for all sectors.

By the comments here I assume that the beauty and wilderness has value for the tourism sector similar to minerals having value for mining sector. One has royalties to pay, while the other does not.

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M Johnson on Oct 6, 2010 at 6:30 am

Born & raised in the Yukon, I think we have enough mining done in the territory, it's too bad, the miners, companies don't realize that they are stripping the beauty of Yukon. Twenty years from now we wouldn't be boasting about the beauty of the land, but sadly be seeing the scarring of the land. Sad to know that the plants & animals have no say in all of this mess that keeps coming north for the sake of minerals, money, and energy seekers. Someday, mother earth will back fire and I think she is now, as we continue to bicker about future development and future needs. Food for thought, we may not need all this mining stuff in the future, but go back to that good ole wood stove, and using our physical being to get from point A to B! It may happen, with all the climate changes we are going through..just have to leave it in our Creator's hands. I support the untouched environment & land to have it kept natural!

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Denise on Oct 3, 2010 at 12:01 pm

I am not against Mining and I am not against Tourism, but all industries need to be looked at in the same way is all that I am saying. And people really want to keep this place pristine, then all industry needs to be off limits.

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brandon on Oct 3, 2010 at 9:25 am

hi francis. I have seen you mention Faro several times and how it was left. they are in the middle of reclamation as we speak. yes it's a shame it took so long to start the clean up, but Faro was a mine that opened under old mining regulations and laws(if any during the 50's and 60's when prospecting and such was happening). these laws have been since changed and now it's required to have reclamaition included in the mine plan before a mine is opened. this is why mining companies employ mine engineers to plan out the mine life(including reclamaition).

people need to realize that if it wasn't for mining in the yukon we would have no infrastructure and no one would be able to access the yukon and see areas like the peel river and so on. if we as a territory depend on tourism for income to the territory the yukon would die and no one would move here and enjoy what we have.

the bottom line is mining and exploration isn't going to stop anytime soon. especially with the world population growing and the need for resources with it. we can either do everything we can to limit our impact and foot print left behind by mining or shut out companies that employ Yukoners and take away future jobs from yukoners.

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Denise on Oct 3, 2010 at 4:29 am

I don't think this was staged. I am actually a citizen of NNDFN, and I have never been talked to by the planning commission. For those that work in government or for non-profit groups its good to have secure positions, but not everyone has this and mining is filling this. Its a lot better being self-sufficient then being unemployed and having to live on social assistance. If the Peel is closed off to mining companies then it should be closed off to all industries including tourism. Tourism like any other industy impacts the land, even if they pack their poop out. Take a look at the Yukon River, Banff National Park or any other Tourism Destination.

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Joel on Oct 1, 2010 at 9:48 am

WOW! That felt overly staged....

I am all for shared use and not locking down the Peel entirely, but that was the worst question/answer I have ever seen in these comments.

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Francias pillman on Oct 1, 2010 at 8:11 am

Hi Stephan. Where is the estimates on how much cleanup will cost. Look at faro. Who cares if you injected 100 million into the economy, because the cleanup costs outweigh any gains.

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Lea Bayliss on Oct 1, 2010 at 5:39 am

I am so tired of hearing about how much money mining brings into the Yukon. Perhaps that may be a fact for the short term, however, there are some things much more valuable than short term profits- leaving the Peel River Watershed intact, undisturbed and unexploited is one of those things. I am sure that the payoff in the long run by leaving this area pristine will be much more lucrative and sustainable than any monies that mining it will.

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Stephen P, Quin on Sep 30, 2010 at 12:44 pm

As president of Minto Explorations Ltd., I can answer Denise's question on mining investment in respect of our Minto Mine:

(a) Provides direct employment of approximately 250 people at the Minto mine site, of which one third are First Nations members and 18% from the local Selkirk First Nation;

(b) In 2009, the Minto mine injected $77.1 million into the Yukon economy:

Paid $58.8 million to Yukon suppliers and contractors including $1.7 million paid to Yukon Energy for power and power line funding repayments;

ii. Paid $3.83 million in payroll to Yukon residents that are direct employees of Minto, and likely at least as much in payroll to Yukon residents working for major contractors (Such as Pelly Construction) based full time at the mine;

iii. Paid $1.4 million to commercial airlines flying to and from the Yukon;

iv. Made $11.3 million in payments to Yukon and First Nation governments; and

v. Paid $186,000 to local hotels and restaurants.

c. Has invested to total of $232.9 million into the Minto Mine from 2005 to the end of 2009, including:

i. $160 million in plant and equipment;

ii. $40 million in exploration and other property enhancing investments;

iii. Paid $7.2 million towards the cost of the power line extension from Carmacks to Minto Landing and Pelly Crossing (exclusive of the additional $10.8 million paid for the dedicated line from Minto Landing to the Minto Mine; and

iv. Paid $14.9 million for the refurbishment of the ship loader and concentrate storage facility in Skagway, Alaska, providing mineral producers in Yukon with modern, environmentally controlled access to a bulk export facility.

d. Is spending approximately $12 million in capital to enhance the Minto Mine operations and another $7 million on exploration around the Minto mine in 2010.

This information was included in a letter sent to the Peel Consultation committee on September 29, 2010.

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Denise on Sep 30, 2010 at 8:21 am

Wilderness does have value, and jobs do add value to the communities and families to be self-sufficient. How many families in the Yukon are benefiting from mining related income and tourism related income. It seems like the mines are investing a lot of resources with training, jobs and buying from local suppliers or utilizing local contractors. How much are the back country operators investing in yukon communities. They are pretty much lining their own pockets with their tours, but how much are they leaving in Mayo when they fly their tours out? Maybe a lunch and a tank of gas. How many people in Mayo are working for these backcountry operators and how many are working for mining companies? Who is putting bread on those tables? Has anyone from the commission really gone out and talked to them? Probably not because they are too busy working for mining companies.

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