No easy stroll down the yellowcake road

A global hunger for energy from a source that does not contribute to global warming means that uranium is hot these days.

However, companies considering a uranium venture need to watch out for another kind of heat. Companies accustomed to provincial and territorial legislation that governs most mining must be prepared for different and more onerous requirements when venturing into the federally regulated world of uranium mining.

As well as regulatory heat, there is likely to be active opposition from individuals and groups opposed to nuclear energy and uranium mining. These anti-nuclear groups usually consist of only a few dedicated individuals, but their vocal and strident opposition will lead to a heightened concern among the general public. This concern cannot be ignored. While non-governmental organizations (NGOs) in the past tended to be fairly general in their opposition to uranium mining and nuclear energy, recently they have come to focus on specific aspects — alpha radiation being the focus of one recent campaign. In many cases, these campaigns are backed by some level of scientific study. A company planning to bring a uranium mine into production should ensure that it has access to sufficient expertise so that it can respond promptly and accurately to allegations about the dangers of uranium mining.

Exploration for uranium is provincially regulated. However, advanced exploration such as the removal of significant quantities of ore or the delineation of an orebody by drilling from underground, will trigger the Canadian Environmental Assessment Agency (CEAA) legislation. In other words, an environmental assessment will be required with the Canadian Nuclear Safety Commission (CNSC) acting as the responsible federal agency.

In essence there are four steps to the federal environmental assessment process:

• the proponent submits a project description to CEAA;

• the various regulatory agencies generate project-specific guidelines for the environmental assessment;

• the proponent submits a report addressing the guidelines; and

• upon approval, the project will proceed to licensing by the CNSC.

All of this is going to cost time and money. Anyone wishing to move to advanced exploration or to uranium production should be sure that they have access to sufficient technical and financial resources to stay the course. The time required to move through the CEAA process will depend on the scale of the project and other factors. A company should plan for a minimum of two years for the environmental assessment process. Recent experience in Saskatchewan suggests that the time required to obtain regulatory approval to begin mine construction may take much longer than two years.

The disposal of waste rock and tailings will receive particularly close regulatory and public scrutiny.

Waste rock and tailings disposal is a concern for any hard rock mine, but more so for a uranium mine, where both radioactive and chemical contaminants will need to be contained within the waste repositories. In Saskatchewan, the standards have evolved to the point where uranium tailings facilities comprise some of the most expensive real estate in the country.

Planning for a uranium tailings repository begins at the mill, where the mill processes should be designed to produce a chemically stable tailings mass with minimal free water content. The tailings repository should be designed for passive maintenance after mining is completed. While some proponents may argue that it is economically advantageous to provide for perpetual active water treatment after mining, a tailings facility requiring perpetual active care and maintenance is not likely to receive approval by the regulatory authorities. In this regard, it should be noted that a mining company will be required to maintain its ownership of the mine and its licence with the CNSC indefinitely, unless someone, presumably a provincial government, is willing to take over responsibility for the property.

Federal regulation makes itself felt not just in the environmental review process, but throughout the mine’s life. Although the legal picture regarding the degree to which provincial or territorial legislation applies is complex, a number of Supreme Court decisions have clearly stated that uranium mining is under federal jurisdiction. That places all Canadian uranium mines under the purview of the federal Nuclear Safety and Control Act.

A federal government agency, the CNSC regulates all aspects of nuclear energy in Canada. Its role is to regulate the use of nuclear energy and nuclear materials, and to ensure that Canada’s international commitments on the peaceful uses of nuclear energy are met. Much of its focus is on ensuring the safety of nuclear power generation, but uranium mining and processing is included within its mandate.

While most mining companies are familiar with regulation by provincial and territorial governments, they are likely to be surprised at the level of CNSC scrutiny they receive upon entering the uranium mining business. Generally, provin- cial regulators confine themselves to setting environmental and regulatory standards that mining companies must meet. The details of how the companies meet these standards are largely left up to the company. This is in contrast to regulation by the CNSC, where even fairly routine mining activities will require prior approval by the CNSC project officer.

CNSC involvement will begin with a site preparation and construction licence and will continue after the mine is decommissioned and abandoned. The entire process is best summarized in a quotation taken from a recent CNSC document: “At all stages, the CNSC maintains a presence through activities designed to confirm that the operator complies with all licence conditions and regulatory requirements.”

As a result of federal regulation and public scrutiny, starting up and operating a uranium mine will entail significantly higher costs and a longer timeline than is the case with other types of mining. This implies a need for deep pockets and patience, as there is no way to speed up the process other than making sure that errors and omissions do not cause unnecessary delays.

Accordingly, even given a bright future for uranium demand and pricing, the orebody needs to be attractive indeed for a new uranium mine to be financially viable. Any mining company active in uranium — or wanting to be — must be sure it has the appropriate and sufficient financial and human resources to meet the federal and provincial regulatory requirements. This includes having a management team that is familiar with the regulatory environment, and also having a team of external professional advisers able to provide technical and strategic support.

Uranium mining has undergone a substantial evolution since the last uranium mines closed in Ontario in the 1990s. Because uranium mining in Canada in recent years has been concentrated in Saskatchewan, it is this province that holds much of the “brain trust” of knowledge about how to meet the current standards for uranium mining.

This means that companies considering the uranium mining business should look to the best practices established by the modern Saskatchewan uranium mines as a guide to what will work for them. They should also consider engaging professional firms with current experience supporting uranium mining, as these professionals will be in the best position to help them make their uranium ventures successful. –The author is senior radiation specialist in the Saskatoon, Sask., office of Golder Associates Ltd. He can be contacted at 306-665-7989 or ebecker@golder.com.