No halt to mining despite First Nation’s concerns, Yukon government says

The Yukon government said it’s not prepared to stop mining activity on First Nation of Na-Cho Nyäk Dun (FNNND) traditional territory following the June 24 landslide at Victoria Gold’s (TSXV: VGCX) Eagle mine. However, it said it will pause some mining-related activities for now.

The First Nation on July 3 called for a halt to all mining on its territory and an independent investigation after the accident at Victoria’s heap leach facility where cyanide is used to extract gold. FNNND Chief Dawna Hope later clarified that the First Nation seeks a temporary pause to mining activity. 

Halting mining, as FNNND had initially requested, would have significant economic and legal impacts, Premier Ranj Pillai said in a statement on Monday.

“The scope and nature of FNNND’s request to halt all exploration and mining activities on their traditional territory has significant legal and economic consequences,” Pillai said.

The premier’s statement came more than one month after Victoria suspended operations at Eagle following the accident that unleashed 4 million tonnes of material, with half leaving the pad’s containment. Between 280,000 and 300,000 cubic metres of cyanide-containing solution left the containment, according to government estimates. Victoria’s share price plummeted more than 85% during the last week of June. The single-asset company now has a market cap of $35.5 million.  

Legal complexities

Yukon’s mining permits are governed by federal and territorial laws rooted in the Umbrella Final Agreement that outlines how Yukon First Nations and governments should negotiate Yukon First Nation final agreements.

While the Umbrella Final Agreement itself is not legally binding, a Yukon First Nation Final Agreement includes its provisions plus additional terms specific to each First Nation. Once ratified, signed, and put into effect, a Yukon First Nation Final Agreement becomes legally binding.

Pillai said stopping all mining activities would require actions not envisioned in the Yukon Environmental and Socio-economic Assessment Act (YESAA) or the Waters Act. Such a move would have serious consequences for all Yukoners.

Consultations pause

The government will not stop existing mining operations that already have permits. However, it proposed to FNNND a ban on new claims in areas of cultural or environmental importance where mining would be inappropriate. There will also be a two-month pause on ongoing mine licence consultations in FNNND territory and no new consultations will start during this time.

Pillai assured that no new heap leach facilities will be licensed until the outcomes of an independent review board are  integrated into Yukon’s mining policies. The government remains committed to regional land use planning, as required by FNNND for resuming mining activities.

“While large-scale mining operations are the backbone of our territorial economy, we must ensure that industry operating today is not doing so at the expense of future Yukoners or the environment,” Pillai said. 

“As caretakers, it is our responsibility to ensure our children and our children’s children can live in a future where it continues to be safe to drink the water and harvest the animals from the land. While mining has its economic benefits, the government of Yukon recognizes that more needs to be done to protect public health and the environment in the context of mining and exploration activities.”

Amid ongoing efforts to clean up the landslide and contaminated water at Eagle, the Yukon government said on July 26 it had hired contractors to help build a protective berm at the site. The government has suggested it could take over the entire effort if the company isn’t able to handle it. But Victoria doesn’t agree with some of those efforts because they could create environmental and safety problems, CEO John McConnell told CBC in an interview last week.