Evaluating baseline studies

The costs associated with public consultation, community involvement, permitting, and environmental baseline studies are often perceived as major impediments to mine development, and much of this perception is based on the dollar figures associated with high-profile, large-scale projects.

In some cases, these are difficult projects to evaluate, owing to the social, economic and environmental costs — or benefits — for communities, regulators, members of First Nations or special interest groups. All of these items add to the costs associated with this predevelopment work, and the numbers can be significant if you simply look at the bottom line. However, when one looks at the percentage that predevelopment costs represent in the overall cost of development, the end number is relatively small.

Some predevelopment activities can be completed at minimal cost and still provide tremendous benefits to a project in terms of permitting time and relationship-building with stakeholders. In many cases, the completion of these activities can help reduce development costs by moving the completion time closer to the exploration, rather than the development, phase. In my experience, activities such as plant and animal reconnaissance surveys can be completed in the advanced exploration or prefeasibility phase. Depending on provincial requirements for exploration spending, some studies, such as stream-sediment surveys, can be used as exploration credits. They can also double as defensible baseline environmental data.

A review was completed of four mine development projects in Nova Scotia from 1996 to present. In all cases, most of the predevelopment studies were completed during the advanced exploration stage instead of during prefeasibility or feasibility. Community groups and regulators (provincial and federal) cited this as a major reason for the quick transition from initial permitting to full operation. Key issues in all cases included stream water chemistry and fisheries habitat, as well as transportation and archaeological resources. Each environmental issue was identified early by stakeholders and subsequently completed on a priority basis during the advanced exploration phases of the projects.

The completion of certain predevelopment studies during the advanced exploration phase, as opposed to during latter project stages, can often be of great value to a mine’s development. Permitting time lines can benefit as well, by having key environmental data collected and used by proponents and stakeholders early in a mine development project.

— The author is a geologist in Dartmouth, N.S., with MGI Ltd.