With a mission to inform, empower, celebrate and advocate for British Columbia's current and aspiring business leaders, BCBusiness go behind the headlines and bring readers face to face with the key issues and people driving business in B.C.
Issue link: http://digital.canadawide.com/i/1388249
asked Anglo American why they joined IRMA, a representative said the cost of conflict motivated them the most. A study by the University of Australia found that for mining projects worth US$3 billion to US$5 billion, the cost of delays add up to US$20 million a week. Many, if not most, holdups stem from stakeholders like communities and NGOs mistrusting mining companies and government regulators. "Those kind of delays last months, if not years," Young says. B .C.'S OPPORT UNIT Y TO LE A D In an industry that goes through regular boom and bust cycles, that can stop a mining project from getting built for years—or keep it from ever happening. Several mine proposals in northwestern B.C. face stiff resistance from Indigenous groups downstream in Alaska because of environmental concerns. And a coalition of 110 conser- vation, recreation and wildlife groups opposes Vancouver-based Imperial Metals Corp.'s exploration permit application targeting historic copper deposits and newer gold discoveries in the Skagit Valley, on the U.S. border near Hope. Perceived lax rules and lack of enforcement of mine operations in B.C. is a major reason for both campaigns. Critics point to the promised cleanup of the abandoned Tulsequah Chief mine, which still hasn't happened; Vancouver-headquartered Teck Resources' decades-long selenium issue in the Elk River; and the 2014 tailings pond burst at the Mount Polley mine, owned by Imperial Metals. The latter resulted in no charges or fines. The IRMA standard, which devotes an entire chapter to commu- nity engagement, lets any stakeholder challenge company asser- tions and the audit results. Meeting its certification would signal to the public that the mine acts responsibly, Young says. But better government regulation and enforcement is needed too, according to MiningWatch Canada, an international industry watchdog based in Ottawa. "The only consequence of failing a stan- dard is failing the standard," says communications coordinator Jamie Kneen. "We need punishments and fines if laws are violated." Bruce Ralston, B.C.'s minister for energy, mines and low carbon innovation, acknowledges that there was a gap between regulations and enforcement. He's committed to filling it. "A jurisdiction with high standards is a good indicator for the best place to do business," Ralston says. "Responsible mining in B.C. will attract investment." The province needs the edge. The 2018 BC Mining Jobs Task Force, an effort to prepare the industry for the future, concluded that B.C. was a high-cost producer with complex regulations. It also pointed out that mining was experiencing rapid change driven by technology and a shift in environmental and social values. "The B.C. sector has the opportunity to take proactive steps to lead the way in advancing innovation, workforce inclusion and training, Indigenous partnerships, regulatory agility and the shift to a low-carbon economy," noted the task force's final report. One of the report's recommendations was for B.C. to investigate branding itself a sustainable mining jurisdiction. Last fall, the gov- ernment started down that road, hosting a series of virtual confer- ences to gauge industry interest, hurdles and possibilities. Thanks to clean power, a carbon tax, high environmental and labour stan- dards, and the adoption of UNDRIP, Ralston thinks the province is already a leader in sustainable mining. Young is a little more pragmatic. Australia, Chile, the Nordic countries, Quebec and the Northwest Territories are all going after the same prize. "B.C. is taking an aspirational leadership position, but it's afraid to get too far ahead," he says. Move too fast, and B.C. will become an even more expensive place to mine than it already is, driving investment elsewhere. Move too slow, and it loses the leadership position. The challenge is to align its regulations with market demands and figure out ways to encourage companies to do the right thing, Young says. Certi- fied sustainable mines could enjoy a simplified permitting process, reduced tax rates or favoured provincial procurement strategies. The reputation and ethics rub off on companies based in Van- couver but operated globally, says B2Gold's Johnson. Foreign gov- ernments "believe your promises partly because you come from a Western country," he adds. It is not about perfect, impact-less mining—that's impossible, Young says. Rather, the goal is pushing the whole industry to do bet- ter. "There will be no one green mining capital," Young concludes. "It's about bringing people in and building trust." That's what Tony Fogarassy is working on with the Deer Horn project. After several years off, he restarted exploration work in 2019 and continues today. Fogarassy is using IRMA to help guide the project's development. First Tellurium was one of the first exploration companies to join the standard, and he's helping its board develop a comparable one for exploration projects. Part of that is First Nations ownership. Fogarassy, who has promised all four impacted groups a 51-per- cent stake in the project, is helping them find creative ways to buy in with less risk along the way. Not everyone thinks it's a smart strategy. His peers in the indus- try have laughed at him and yelled at him. His style of doing busi- ness may not be popular, but Fogarassy thinks it's the future. "Getting [ IRMA] certification is something we can point to and raise up the flagpole," he says. "It shows we're operating at a much higher standard. It's a way for us to stand out among a thousand junior mining companies all running around looking for metals and money." It's the long view—and one that might just pay off for First Tel- lurium and B.C. n 80 BCBUSINESS JULY/AUGUST 2021 100 tonnes Metallurgical coal required to produce steel for the average wind turbine 30,000 tonnes Metallurgical coal needed to build the 19-km Canada Line rapid transit system in Vancouver 1.1 kg Metallurgical coal required for the average bicycle frame SOURCES: MINING ASSOCIATION OF CANADA; TECK RESOURCES