Reclamation consideration in mine planning

Ontario is promising to pass Canada’s most comprehensive, yet expensive, land reclamation policy. The reclamation sections of the new Ontario Mines Act have yet to be finalized, but it is clear the regulations will place a substantial burden on many mining companies, particularly juniors.

The subject of reclamation was raised here at the recent annual federal-provincial mines ministers conference.

Out west, British Columbia has implemented stiff environmental regulations in its recently passed mining legislation, Bill 56.

Under the conditions of Bill 56, companies such as Equity Silver Mines (TSE) are having to set aside millions of dollars to restore the environment as close as possible to its original state.

In Equity’s case, that price tag is estimated to be between $20-60 million. Equity and the British Columbia government are still negotiating a dollar figure.

Ontario’s acting assistant deputy minister of mines, John Gammon, says his province is faced with a real dilemma.

“The problem we face across Ontario is that there are a lot of abandoned mine sites where original owners have disappeared,” Gammon says. “And it is going to be the taxpayers’ problem to clean them up.”

Gammon says the paradox facing all provincial governments is that companies that can least afford to front reclamation money are the ones from which the government needs the money.

“The people who can least afford it are the ones who are closest to having financial difficulties and they are the ones most likely to cause problems,” he says.

Companies that are trying to nail down deposits not associated with sulphides are in a better position than others.

On one hand, major companies such as Inco (TSE) and Falconbridge Ltd. have been setting aside money for years and are preparing for the day when mines have to be closed.

On the other hand, Ontario’s new legislation will clearly lay the ground rules to which companies such as Inco and Falconbridge will have to adhere.

In Saskatchewan, mining companies are required to post reclamation bonds under an environmental assessment process. In Manitoba, bonds are required under the Environmental Protection Act, as they are in Quebec, where a new mining law came into force in 1988. Bonds are registered in New Brunswick under that province’s 1987 mining legislation.

Ontario mines have never been forced to file closure plans or set aside funds for the cessation of operations.

While supporting the concept of closure plans and the associated bonding requirements, the Mining Association of Canada (MAC) is calling on all levels of government to exercise good judgment in reviewing those plans, mine by mine.

“We would like to see the provinces use reasonable standards to ensure that the environment is protected, but that they’re not forcing `Cadillac’ reclamation jobs in the industry,” MAC President George Miller said in an interview.

MAC is calling on the provinces to make sure technical standards are correct and also that financial burdens are tailored to an individual company’s ability to pay.

In Ontario’s case, those regulations are not expected to be finalized until mid-1991.