8/17/2019 Audit of mining sector
1/109
AN AUDIT OF COMPLIANCE AND
ENFORCEMENT OF THE MINING SECTOR
www.bcauditor.com
May 2016
8/17/2019 Audit of mining sector
2/109
Te Honourable Linda Reid
Speaker o he Legislaive Assembly
Province o Briish Columbia
Parliamen Buildings
Vicoria, Briish Columbia
VV X
Dear Madame Speaker:
I have he honour o ransmi o he Legislaive Assembly
o Briish Columbia my repor, An Audi o Compliance and
Enorcemen o he Mining Secor .
We conduced his audi under he auhoriy o secion ()
o he Audior General Ac and in accordance wih he sandards
or assurance engagemens se ou by he Charered Proessiona
Accounans o Canada (CPA) in he CPA Canada Handbook –
Assurance, and in accordance wih Value-or-Money Audiing in
he Public Secor.
Carol Bellringer, FCPA, FCA
Audior General
Vicoria, B.C.
May
Cover Page - ailings pond o Huckleberry open pi copper mine in norhwesern BriishColumbia. Owned by Imperial Meals Corp. Source: Sock Phoo.
623 Fort StreeVictoria, British Columbia
Canada V8W 1G1P: 250.419.6100F: 250.387.1230
www.bcauditor.com
CONTENTS
Auditor General’s Comments 3
Summary 5
Summary of Recommendations 11
Response from Government 16
Background 29
Audit Objective and Conclusion 40
Part 1: Ministry of Energy and Mines 41
Part 2: Ministry of Environment 79
Appendix A: Audit Expectations and Scope 103
Appendix B: Glossary 106
8/17/2019 Audit of mining sector
3/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
C B, FCPA, FCA Audior General
AUDITOR GENERAL’SCOMMENTS has a long hisory in Briish Columbiaand coninues o be an imporan source o employmen or housands
o people. Governmen has saed is plan o coninue o suppor and
develop his indusry by creaing opporuniies or new invesmen.
However, he recen decline in commodiy prices has lef many mining
companies sruggling o survive. Regardless o wheher he mining
indusry is experiencing growh or slow-down, proecion o he
environmen needs o be ensured. Tis is only possible hrough srong
regulaory oversigh. We conduced his audi o deermine wheher
he regulaory compliance and enorcemen aciviies o he Minisry o
Energy and Mines (MEM) and he Minisry o Environmen (MoE),
peraining o mining, are proecing he province rom significan
environmenal risks.
We ound almos every one o our expecaions or a robus compliance
and enorcemen program wihin he MEM and he MoE were no me.
We ound major gaps in resources, planning and ools. As a resul,
monioring and inspecions o mines were inadequae o ensure mine
operaors complied wih requiremens. Te minisries have no publiclydisclosed he limiaions wih heir compliance and enorcemen
programs, increasing environmenal risks, and governmen’s abiliy o
proec he environmen.
During he course o his audi, hese risks became a realiy and disaser
occurred when he ailings dam a Moun Polley ailed – releasing
approximaely million cubic meres o wasewaer and ailings ino
adjacen waer sysems and lakes. I may be many years beore he
financial, environmenal and social implicaions are ully known.
8/17/2019 Audit of mining sector
4/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
Afer he ailure a Moun Polley and during our audi, we el i necessary
o review MEM’s perormance as regulaor or his sie. We noed he
same issues in he Moun Polley file as we did hroughou he audi – ha
is, oo ew resources, inrequen inspecions, and lack o enorcemen.
Our advice, o reduce he risk ha unorunae and prevenable incidens
like Moun Polley don’ happen again, is or governmen o remove is
compliance and enorcemen program or mining rom MEM. MEM’s role
o promoe mining developmen is diamerically opposed o compliance
and enorcemen. Tis ramework, o having boh aciviies wihin MEM,
creaes an irreconcilable conflic. Because compliance and enorcemen
is he las line o deence agains environmenal degradaion, business as
usual canno coninue.
I am hereore disappoined in he resisance o his overall
recommendaion as i is consisen wih many oher jurisdicions’
response o similar incidences. In addiion, i is disconcering ha
governmen will no be disclosing is raionale or decisions ha i makes
in he public’s ineres under secion o he Environmenal Managemen
Ac. Te nex opporuniy o discuss hese and oher areas o disagreemen
and he conens o his repor, will be a a meeing o he Selec Sanding
Commitee on Public Accouns.
Tis was a very large and involved audi. I appreciae he dedicaion and
commimen ha everyone, boh in he minisries and my Office, showed
o see i hrough o compleion.
Carol Bellringer, FCPA, FCA
Audior General
May
AUDITOR GENERAL’S COMMENTS
8/17/2019 Audit of mining sector
5/109
8/17/2019 Audit of mining sector
6/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
mine reclamaion coss i a company deauls on is
environmenal obligaions.
MoE’s responsibiliies apply generally o regulainghe impac o mining aciviies ha exend beyond he
borders o he mine sie. MoE regulaes he quaniy and
qualiy o any wase discharges rom meal and coal
mines o ensure he proecion o he environmen.
OVERALL AUDIT
FINDINGS
MEM and MoE’s complianceand enforcement activities of themining sector are inadequateto protect the province fromsignificant environmental risks
Overall findings o MEM’s and MoE’s
regulaory program:
Planning
MEM’s mandae o promoe he mining
indusry con lics wih is role as a regulaor,
hus reducing is regulaory eeciveness.
MEM has a limied compliance and
enorcemen program and weak planning, and
hereore is regulaory oversigh aciviies are
inadequae.
Alhough MoE has adoped a compliance andenorcemen ramework, here are signiican
gaps in how he ramework is applied.
Neiher minisry coordinaes wih he oher on
heir compliance and enorcemen aciviies.
Boh minisries lack suicien resources and
ools o manage environmenal risks rom
mining aciviies.
o mee he provincial goals or new minesand mine expansions, MEM a nd MoE are
ocusing on permi applicaions. As a resul,
here are ew resources dedicaed o he
regulaory aciviies o monioring,
compliance and enorcemen.
Permitting
Neiher minisry ensures ha permis are
consisenly wrien wih enorceable language.
Neiher minisry uses a permiing approach
ha reduces he likelihood axpayers wil l have
o pay coss associaed wih he environmenal
impacs o mining aciviies (known as he
polluer-pays principle).
MEM is no holding an adequae amoun
o securiy o cover he esimaed
environmenal liabiliies a major
mines. he minisry has esimaed he
oal liabiliy or al l mines a more han
$. billion, ye has obained inancial
securiies or less han hal ha amoun
($. bill ion).
MoE has no reviewed or revised is ee
schedule or polluans issued under an
Environmenal Managemen Ac permi
since . And, in some cases, he
wase discharge ees do no relec heenvironmenal impacs.
SUMMARY
8/17/2019 Audit of mining sector
7/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
Compliance promotion
Boh MEM and MoE have creaed guidance
documens and worked wih sakeholders
o promoe compliance. However, neiher
minisr y could demonsrae ha is aciviies
and guidance maerials were eecive
in achieving volunary compliance or
governmen’s environmenal oucomes.
Compliance verification
Neiher MEM nor MoE are conducing
adequae monioring and sie inspecionsand neiher have assessed how his is
impacing risks.
Enforcement
Boh MEM’s and MoE’s enorcemen
responses have signiican deiciencies and
MEM’s enorcemen ools are in some cases,
ineecual. his is resuling in delayed or
unsuccessul enorcemen by he minisriesand inacion by indusry in several insances.
Ensuring continuous improvement
Neiher MEM nor MoE have adequaely
evaluaed he eeciveness o heir regulaory
programs. Boh minisries are aware ha
deiciencies in heir regulaory aciviies are
resuling in risks o he environmen. In a
leas wo insanceshe ailings breach a
Moun Polley mine and he degradaion o
waer qualiy in he Elk Valleyhese risks
have maniesed ino real environmenal
impacs.
Reporting
We ound ha he wo minisries are no inorming
he public and legislaors abou he long-erm risks
rom mining, he effeciveness o he agencies’
regulaory oversigh, and he overall perormance
o he companies being regulaed.
SUMMARY
8/17/2019 Audit of mining sector
8/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
OTHER COMPLIANCE
AND ENFORCEMENT
MATTERSTe impacs o an ineffecive regulaory regime are
increased risks o he environmen and he poenial
or deerioraion o he province’s waer sysems, loss
o wildlie habia, and damage o culurally significan
areas and values. In recen years, his risk has become
a realiy and resuled in acual environmenal damage,
such as a he Moun Polley mine sie and in he
Elk Valley.
Compliance and enforcement at theMount Polley Tailings Dam
On Augus , , a breach occurred wihin he
Perimeer Embankmen o he ailings sorage
faciliy (or ailings dam) a he Moun Polley copper
and gold mine in souh-cenral B.C. Te breach
resuled in he release o an esimaed million
cubic meres o wasewaer and ailings. Te miningcompany has since been working on he clean-up rom
his even, bu he ull exen o he environmenal
repercussions rom he breach are sill no known.
In response o his even, governmen convened an
independen, exper, engineering invesigaion and
review panel (panel) o deermine he mechanics o
how he dam ailed. Teir conclusion was ha he
primary cause o he breach was dislocaion o a par
o he Perimeer Embankmen due o oundaionailure. Te specifics o he ailure were riggered by
he consrucion o he downsream rockfill zone a
a seep slope. Tey noed ha had he downsream
embankmen slope been flatened in recen years as
proposed in he original design, ailure would have
been avoided.
Our assessmen differed rom he panel’s review in ha
we ocused on why he dam ailed and he Minisry o
Energy and Mines’ (MEM) overall compliance and
enorcemen aciviies. We ound ha he minisry
did no ensure ha he ailings dam was being buil or
operaed according o he approved design, nor did i
ensure ha he mining company recified design and
operaional deficiencies. MEM coninued o allow he
mine o operae and o approve permi amendmens o
raise he ailings dam.
In relaion o he Perimeer Embankmen where
he dam ailed, MEM’s weak regulaory oversigh
allowed inconsisencies wih he inended dam
design o persis over several years. Tis included: an
over-seepened Perimeer Embankmen slope and
inadequae managemen o he ailings beach. A he
Main Embankmen, in addiion o acceping a seep
embankmen slope and an inadequae ailings beach,
MEM also did no ensure ha butressing was buil o
he heigh and exen included in he dam design.
We concluded ha MEM did no enorce he design
due o he ollowing:
Over reliance onqualified professionals
I is no MEM’s pracice o carry ou is own echnical
review (or o oversee an independen echnical
review) o confirm ha ailings dams are buil in
accordance wih he design.
SUMMARY
8/17/2019 Audit of mining sector
9/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
Inadequate standards to guide bothinspectors and industry
We expeced ha MEM would have ensured ha heir
design sandards were clear or boh indusry and
inspecors o enorce. However, MEM had adoped he
Canadian Dam Associaion’s Dam Saey Guidelines
or dam consrucion ha were no specific o he
condiions in B.C. or specific o ailings dams. Tese
guidelines were open o inerpreaion by he Engineer
o Record and MEM inspecors, and his resuled in
a ailings dam ha was buil below generally acceped
sandards or ailings dams.
Inspections did not meet policy
MEM perormed no geoechnical inspecions or a
number o years, even hough heir policy requires
a minimum o an annual inspecion. Alhough hese
inspecions would no have idenified he weak
oundaion layer, saff could have idenified ha he
operaor was no acually building or operaing he
ailings dam o he prescribed design and was raising
he dam wihou any long-erm planning. Also,addiional inspecions would have provided MEM he
opporuniy or increased onsie vigilance.
Lack of enforcement culture
MEM has adoped a collaboraive approach o
compliance and enorcemen ha emphasizes
cooperaion and negoiaion. In he case o Moun
Polley, his approach ailed o produce he desired
resuls. MEM has he abiliy o compel a miningcompany o ake correcive acion when necessary, and
has done so in he pas using enorcemen mechanisms
under he Ac, Code and permi. However, a Moun
Polley, MEM did no use mos o hese enorcemen
mechanisms o compel he mine operaor o build or
operae he dam as designed and inended.
MoE has not publicly disclosed therisks associated with permittingcoal mines in the Elk Valley
Lack o sufficien and effecive regulaory oversigh
and acion by MoE o address known environmenal
issues has allowed degradaion o waer qualiy in he
Elk Valley. Coal mining, which has been underway
in he area or over years, has resuled in high
concenraions o selenium in he waer sysem. As
selenium accumulaes up he ood chain, i can affec
he developmen and survival o birds and fish, and
may also pose healh risks o humans.
For years, MoE has been monioring selenium
levels in he Elk Valley and over ha ime has
noed dramaic annual increases o selenium in he
waershed’s ribuaries. MoE racked his worsening
rend, bu ook no subsanive acion o change i.Only recenly, has he minisry atemped o conrol
his polluion hrough permis graned under he
Environmenal Managemen Ac.
We examined he Line Creek Expansion Permi, he
Area-Based Managemen Plan and he Area-Based
Managemen Permi (Valley Permi)1 o undersand
how hey suppor MoE’s responsibiliy o minimize
risks o he environmen. We ound ha hese
documens do no address several risks, includinghe ollowing:
MoE sa, wih inpu rom exernal expers,
concluded ha he selenium levels in he
SUMMARY
Line Creek mine is one o five coal mines ha eck ResourcesLd. is operaing in he Elk Valley.
8/17/2019 Audit of mining sector
10/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
proposed Line Creek Expansion Permi were
no likely proecive o he environmen. he
sauory decision-maker could no approve he
permi. Subsequenly, he permi was graned by Cabine. his was he irs ime ha Cabine
used his approval process. he raionale or
he decision was no publicly disclosed.
he Line Creek Expansion Permi allows
mining aciv iies o be exended ino an area
inhabied by Wesslope Cuhroa rou, a
species lised as being o “special concern”
under he ederal Species a Risk Ac . his
approved expansion o mining operaions
creaes a risk o urher decline o his species.
he A rea-Based Managemen Plan commis
indusry o developing six waer reamen
aciliies in he Elk Valley. his creaes a uure
economic liabiliy or governmen o monior
hese aciliies in perpeuiy and ensure ha
hey are mainained.
here is a risk ha i MoE is unable o enorce
he Area-Based Managemen Permi and he
mine exceeds is permi limi or selenium
a Lake Koocanusa, he oucome could be a
violaion o he reay relaing o boundary
Waers and Quesions arising along he Boundary
beween Canada and he Unied Saes (he
reay). he reay orbids he polluion o
waer bodies on eiher side o he border.
he levels or selenium in he Area-Based
Managemen Permi are inconsisen wih
he precauionary principle. he proposed
arges over he nex seven years show a
reducion in selenium, bu are sill signiicanly
higher han curren concenraions creaing a
high risk o urher environmenal impacs.
Te minisry has no disclosed hese risks o legislaors
and he public.
Ulimaely, despie he addiion o waer reamenaciliies, he curren permi levels o selenium are
above he waer qualiy guidelines se by B.C. o
proec aquaic lie, and or human healh and saey.
Selenium rom boh hisorical mining aciviies and
he ongoing expansion is likely o coninue o impac
he environmen ar ino he uure.
SUMMARY
8/17/2019 Audit of mining sector
11/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
SUMMARY OFRECOMMENDATIONS
W a decade o neglec in compliance and enorcemen program aciviies wihin he Minisry o Energy and Mines, and significan deficiencies wihin he Minisry o
Environmen’s aciviies. Overall, we concluded ha compliance and enorcemen aciviies o he
wo minisries are inadequae o proec he province rom significan environmenal risks.
Te independen exper panel or Moun Polley saed clearly ha “business as usual canno
coninue.” We reached a similar conclusion a he end o his audi regarding compliance and
enorcemen, and we have one overall recommendaion.
Esablishmen o such a uni will:
show all sakeholders concerned abou
regulaory oversigh ha governmen
has pu a sound sysem in place
enable governmen o demonsrae ha
i will mee is public commimen o be
a sound environmenal seward
WE RECOMMEND THAT THE GOVERNMENT OF BRITISH COLUMBIA
creae an inegraed and independen compliance and enorcemen uni or mining aciviies,
wih a mandae o ensure he proecion o he environmen.
Given ha he Minisry o Energy and Mines (MEM) is a risk o regulaory capure ,
primarily because MEM’s mandae includes a responsibiliy o boh promoe and regulae
mining, our expecaion is ha his new uni would no reside wihin his minisry.
OVERALL RECOMMENDATION
8/17/2019 Audit of mining sector
12/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
SUMMARY OF RECOMMENDATIONS
In addiion o his overall recommendaion, we have included recommendaions ha provide
urher guidance o governmen in he developmen o his new uni. Tese recommendaionsare hemed by aciviy: Planning, Permiting, Compliance Promoion, Compliance Verificaion,
Enorcemen, Evaluaion and Adjusmen, and Reporing.
Each recommendaion was in response o specific findings. In some cases, he recommendaion was
made due o specific issues as a resul o he Minisry o Environmen’s or he Minisry o Energy
and Mines’ perormance, and in oher cases, he recommendaion was applicable o boh minisries.
Planning
1.1 Strategic planning
We recommend ha governmen develop a sraegic plan ha would deail he aciviieso an inegraed and coordinaed regulaory approach, and he necessary capaciy, ools,
raining and experise required o achieve is goals and objecives.
Permitting
1.2 Permit language We recommend ha governmen ensure boh hisorical and curren permi
requiremens are writen wih enorceable language.
1.3 Security – adequate coverage We recommend ha governmen saeguard axpayers by ensuring he reclamaion
liabiliy esimae is accurae and ha he securiy held by governmen is sufficien o
cover poenial coss.
1.4 Security – catastrophic events We recommend ha governmen review is securiy mechanisms o ensure axpayers
are saeguarded rom he coss o an environmenal disaser.
1.5 Environmental Management Act waste discharge fees We recommend ha governmen review is ees under he Environmenal Managemen
Ac and ensure ha he ees are effecive in reducing polluion a mine sies.
8/17/2019 Audit of mining sector
13/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
1.6 Cost recovery
We recommend ha governmen adop a cos recovery model or permiting andcompliance verificaion aciviies ha is consisen across all minisries in he naural
resources secor.
1.7 Decision-making – Use of section of the Environmental Management Act We recommend ha governmen publically disclose is raionale or graning a permi
under secion o he Environmenal Managemen Ac . Specifically, inormaion
should include how acors such as economic, environmenal, and social atribues were
considered in he deerminaion o public ineres.
Compliance Promotion
1.8 Reclamation guidance We recommend ha governmen develop clear and comprehensive reclamaion
guidance or indusry.
1.9 Incentives We recommend ha governmen creae effecive incenives o promoe environmenally
responsible behavior by indusry.
SUMMARY OF RECOMMENDATIONS
8/17/2019 Audit of mining sector
14/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
Compliance Verification
1.10 Risk-based approach We recommend ha governmen develop a risk-based approach o compliance
verificaion aciviies, where requency o inspecions are based on risks, such as
indusry’s non-compliance record, indusry’s financial sae, and indusry’s aciviies
(e.g., expansion), as well as risks relaed o seasonal variaions.
1.11 Systematic compliance verification We recommend ha governmen sysemaically monior and record compliance wih
high-risk mine permi requiremens.
1.12 Qualified Professionals We recommend ha governmen esablish policies and procedures or he use and
oversigh o qualified proessionals (QP) across he naural resources secor. Tese
policies and procedures should have he ollowing:
guidance or sa ha oulines he speci ic naure and amoun o oversigh
expeced o a QP’s work
guidance or sa as o ex peced imerame or review and response o
QP repors
updaed guidance or sa or recognizing and responding o misconduc by a QP
conrols in place o ensure ha here is no undue inluence on he QPs
by indusry
conrols in place o ensure ha recommendaions by QPs are adhered o
1.13 Mine design We recommend ha governmen adop appropriae sandards, review mine designs o
ensure ha hey mee hese sandards, and ensure ha mines, as consruced,
reflec he approved design and sandards.
SUMMARY OF RECOMMENDATIONS
8/17/2019 Audit of mining sector
15/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
Enforcement
1.14 Policies, procedures and tools We recommend ha governmen develop policies, procedures and enorcemen
ools or responding o non-compliances when indusry does no mee governmen’s
specified imeline.
Evaluation & Adjustment
1.15 Evaluation & adjustment We recommend ha governmen regularly evaluae he effeciveness o is compliance
promoion, compliance verificaion, and enorcemen aciviies and ools, and make
changes as needed o ensure coninuous improvemen.
Reporting
1.16 Public reporting We recommend ha governmen repor publicly he:
resuls and rends o all mining compliance and enorcemen aciviies
eeciveness o compliance and enorcemen aciviies in reducing risks and
proecing he environmen
esimaed liabiliy and he securi y held or each mine
SUMMARY OF RECOMMENDATIONS
8/17/2019 Audit of mining sector
16/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
RESPONSE FROMGOVERNMENT
Te Minisry o Energy and Mines (MEM) and
Minisry o Environmen (ENV) acknowledge
receip o he Audior General’s Repor: An Audi o
Compliance and Enorcemen o he Mining Secor
(Audi Repor). Governmen wishes o hank he
Audior General or underaking he audi and her saff
or heir effors.
We noe here are areas o agreemen beween he
Audi Repor’s sub-recommendaions and he
combined recommendaions by he Moun Polley
Independen Exper Engineering Invesigaion and
Review Panel (Exper Panel) and he regulaory
invesigaion o he Chie Inspecor o Mines.
Governmen has acceped all o he recommendaions
pu orward by he Exper Panel and Chie Inspecor
o Mines and implemenaion is well underway.
We accep he majoriy o he recommendaions inhe Audi Repor; however, here are five poins
where we eel obliged o share our perspecive or
he public record.
APPROPRIATE
STANDARDS
Tere is a lack o clariy in he Audi Repor on wha
he operaional effeciveness o he compliance
and enorcemen programs should be measured
agains. Ofen he measure or sandard o expeced
perormance saed in he Audi Repor is unclear
and/or unsuppored by reerence o an idenified,
esablished auhoriy, such as he legislaion and
regulaion ha guides he acions o C&E saff in boh
minisries. Tis concern applies a various poins in
he Audi Repor, wih he Repor’s general reerence
o he Organisaion or Economic Co-operaion
and Developmen or he Inernaional Nework or
Environmenal Compliance and Enorcemen raher
han he laws o BC, he saed objecives o he
Minisries, or Canadian indusry sandards.
As a specific example in relaion o Moun Polley,
he Province is criicized or adoping he Canadian
Dam Associaion’s (CDA) Dam Saey Guidelines
which, he audi repor saes, “resuled in a ailings
dam ha was buil below generally acceped sandards
or ailings dams.” No only do we disagree wih
his asserion o opinion, he CDA guidelines arein ac proessionally recognized guidelines ha are
used hroughou Canada by geoechnical engineers.
Wheher he guidelines could be improved is a
separae quesion, one which he CDA is currenly
reviewing. Furher, he Miniser o Energy and Mines
has sruck a commitee ha is asked wih reviewing
he Healh, Saey and Reclamaion Code or Mines
in BC o deermine wheher and in wha ways
requiremens may appropriaely be improved
or clarified.
8/17/2019 Audit of mining sector
17/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
PROFESSIONAL
PUBLIC SERVANTS
Te Audi Repor suggess ha proessional publicservans are unable o differeniae beween mandae
componens or ha hey are unwilling o enorce
exising regulaions. Te Audi Repor conains
no acual evidence ha he curren minisry
srucure resuls in any such risk, or in a mind-se
o acquiescence on he par o saff involved. Te
Repor liss a number o indicaors o poenial risk o
regulaory capure. Bu here is nohing whasoever
in he Repor o sugges any acual causal linkage.
Specifically, here is no evidence ha decisions were
made a Moun Polley, in relaion o he Elk Valley, or
anywhere else o ease or enhance he posiion o he
mining companies involved.
We do no accep ha mere appearances are sufficien
o warran he ac o removing compliance and
enorcemen rom MEM. No one is more aware o
he need o find he appropriae balance beween
promoion and regulaion o mining in minisrydecision-making han hose who are asked o do so on
a daily basis. I is he legislaive ramework in BC ha
drives compliance and enorcemen aciviies no he
organizaional srucure.
DISCLOSURE OF
INFORMATION
Te Audi Repor implies ha he Minisries ailed inheir duy o disclose inormaion regarding decisions
on mining operaions.
In he insance o Moun Polley, here was no breach
o any duy o disclose inormaion o he public
or o he Legislaure. Te Inormaion and Privacy
Commissioner recenly ruled ha here was no
ailure by MEM o mee he disclosure requiremens
o secion o he Freedom o Inormaion and
Proecion o Privacy Ac in relaion o environmenal
risk a Moun Polley.
Wih respec o he permiting o mining operaions
in he Elk Valley, here was also no breach o any
duy on he par o ENV and no ailure on he par
o Cabine o disclose inormaion o he public or o
he Legislaure. Beore addressing ha poin, i may
be o assisance or he governmen o se ou he
decision making process ha did occur, he exensiveconsulaions ha were underaken, and o clariy he
legal auhoriy under which decisions were made.
As he Audi Repor noes, mining in his area has
been going on or more han years and over he
pas years, ENV has been monioring he healh
o he waershed wih increasing concern. Emerging
science began o indicae he poenial effecs o
selenium and oher waer qualiy parameers in he Elk
Valley waershed, including Fording River, Elk Riverand Lake Koocanusa. Wih ENV saff bringing hese
issues o he atenion o he Miniser o Environmen,
RESPONSE FROM GOVERNMENT
8/17/2019 Audit of mining sector
18/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
he Miniser used powers under he Environmenal
Managemen Ac o issue an Order requiring he
mining operaor o immediaely begin o sabilize and
reverse he waer qualiy rends.
Te Order required he developmen o an Area Based
Managemen Plan (ABMP) which mees specific
environmenal objecives and oucomes such as
proecion o aquaic ecosysems, proecion o human
healh and proecion o groundwaer. Te ABMP
also ses ou shor, medium and long-erm waer
qualiy arges. Te ABMP lays ou a schedule or he
insallaion o nine acive waer reamen plans over
he nex years. Te long-erm arges consider:) curren conaminan concenraions, ) curren
and emerging economically achievable reamen
echnologies, ) susained balance o environmenal,
economic and social coss and benefis, and ) curren
and emerging science regarding he ae and effecs o
conaminans.
Subsanial public and sakeholder consulaions were
underaken during he developmen o he ABMP and
afer permis were graned, various news releases and
media inerviews by minisers se ou or he general
public he naure o governmen decisions. Te ABMP
was developed by a echnical advisory commitee
wih represenaives rom he mining operaor,
he local environmenal group (Wildsigh), he
Province, Governmen o Canada, U.S. Governmen,
he Sae o Monana, he Kunaxa Naion, and an
independen scienis rom UBC. Parallel o he
echnical advisory commitee work, he Province wasengaged in a governmen-o-governmen process o
ensure he Kunaxa Naion’s ineress and concerns
were addressed. Te Kunaxa Naion Council’s public
suppor or he ABMP and he subsequen Elk Valley
permi is a reflecion o he commimen o he
Province, he Kunaxa Naion and he mining operaoro see waer qualiy levels sabilize and improve.
In November , he Miniser o Environmen
approved he ABMP which became policy or he
minisry sauory decision maker o consider when
making permiting decisions in he Elk Valley. Te
comprehensive Valley permi, subsequenly issued
by he minisry sauory decision maker, auhorizes
waer qualiy discharges and ses legal requiremens or
he mining company o insall nine reamen plansand o implemen widespread monioring o ensure
waer qualiy rends are sabilizing and reversing. A
angible resul o his unprecedened effor in problem
solving and public and Firs Naions consulaion is
he recen announcemen o he compleion o he
commissioning phase o he firs reamen plan. Te
recogniion o he minisry’s effors o effecively and
responsibly address a hisorically generaed waer
qualiy problem while balancing economic, social,
culural and environmenal ineress was no addressed
in he Audi Repor.
Te Audi Repor criicized Cabine or approving he
Line Creek Expansion Permi via an Order-in-Council
(OIC) in on he grounds ha he raionale or
he decision was no publicly disclosed. Decisions,
when hey are issued in he orm o OICs such as his
one, are always published on he BC Laws websie.
Furhermore, secion o he Environmenal Managemen Ac specifically oulines wha acors
Cabine may consider. Tese consideraions exend o
RESPONSE FROM GOVERNMENT
8/17/2019 Audit of mining sector
19/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
RESPONSE FROM GOVERNMENT
acors such as social and economic needs and wheher
i is in he public ineres o ensure a uncioning
indusry so ha longer erm invesmens can coninue
o be made in areas such as research and developmenand waer reamen echnologies.
AUDIT SCOPE
Te ourh poin relaes o audi planning decisions as
o wha was properly wihin or ouside he audi scope.
For example, i is difficul or us o undersand why, in
a case sudy examining permiting in he Elk Valley indeail, he Audi Repor ailed o record he concered
effors ha ENV has underaken in order o ensure
hese permis are complied wih. Afer he Miniser
o Environmen approved he ABMP in , he
minisry sauory decision maker approved a valley-
wide permi or eck Coal Limied ha specified
he regulaory requiremens or reducing selenium
levels. Permi requiremens will bend down he curve
o growh in selenium levels in Lake Koocanusa by
requiring addiional invesmen in waer diversion
and reamen aciliies over he nex wo decades.
Te Audi Repor does no commen on he exensive
effors by he minisry o ensure ha eck Coal
Limied complies wih hese regulaory requiremens.
For insance, in , ENV creaed a dedicaed
managemen posiion suppored by wo echnical
officers o oversee eck Coal Limied. A compliance
plan has been developed ha specifies a schedule o
inspecion requency and waer sampling. Te amouno resources and effor ha has been ocused on
compliance o hese five paricular mines is significan
and he minisry has no inenion o reducing
ha atenion.
We also wonder why, in examining wheher
compliance and enorcemen aciviies o he mining
secor are proecing he Province rom significan
environmenal risk, he Audi Repor did no considerhe key role played by he Environmenal Assessmen
Office (EAO) in upholding he Environmenal
Assessmen Ac . Many o he mines in Briish Columbia
(new and expansions) have been subjec o he
Environmenal Assessmen process and received
environmenal assessmen cerificaes wih legally
binding requiremens. Permiting by MEM and ENV
happens subsequen o ha environmenal review
process. Addiionally, he EAO has is own compliance
and enorcemen program, which includes oversigh
o mines and uncions complemenarily o MEM
and ENV. Te Audior General recenly reviewed
EAO’s progress in addressing he recommendaions
rom he audi on he EAO’s oversigh o major
projecs. In ha ollow-up, he Audior General
acknowledged significan improvemens in oversigh
o environmenal assessmens projecs,
including mines.
MOUNT POLLEY
Te Audi Repor conains he inerence ha MEM
migh have been able o, hrough proper exercise o
heir regulaory powers, ac o preven he dam ailure
a Moun Polley. Te Audi opinion is conrary o he
Exper Panel finding o cause and is no reflecive o
he regulaory regime in place a he ime. Specifically:
Te Panel ound ha inspecions o he SF would no
have prevened ailure and ha he regulaory saff are
well qualified o perorm heir responsibiliies. Te Panel
ound ha he perormance o he Regulaor was
as expeced.
8/17/2019 Audit of mining sector
20/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
RESPONSE FROM GOVERNMENT
I is imporan o undersand ha mine design, a
Moun Polley jus as a mines around he world, is no
saic and evolves hroughou he lie o operaion.
Tis is appropriae engineering pracice. Operaingmines evolve heir designs over ime regularly, all
wih he approval o licensed engineers. Saring in
, here were nine design sages over he lie o
he ailings Sorage Faciliy (SF) a Moun Polley.
All sages, including he design sage in place a he
ime o he breach had been approved by he design
engineer. Each sage o consrucion was cerified
by he Engineer o Record (EOR) in he as-buil
repors. MEM auhorized permi amendmens or
each sage o he SF. Te ailure o he SF was no a
compliance and enorcemen issue.
I is also imporan or he reader o undersand he
difference in design, acions and recommendaions
or each o he hree embankmens: Perimeer
Embankmen, Main Embankmen, and Souh
Embankmen. Specifically, he Audi Repor seems
o sugges ha iems idenified by boh he EOR
and minisry saff a he Main Embankmen can be
ranslaed, or are somehow relaed, o he ailure o
he Perimeer Embankmen. Such inerences are no
suppored by acs or engineering and do no offer
supporing evidence ha he breach o he Perimeer
Embankmen was somehow prevenable hrough
compliance and enorcemen acions.
Te Minisry appreciaes ha he purpose and process
o he audi may have been differen han hose o
he Exper Panel and he regulaory invesigaion ohe Chie Inspecor o Mines. We are noneheless
concerned abou he differen findings on undamenal
acs ha have come ou o hese processes. Te
Exper Panel, which was empowered in is erms o
Reerence o examine any maters i deemed necessary,
including he “regulaory oversigh by he Minisry oEnergy and Mines and he Minisry o Environmen”
and “o commen on wha acions could have been
aken o preven his ailure and o ideniy pracices
or successes in oher jurisdicions ha could be
considered or implemenaion in BC” concluded:
Te Panel finds ha he MEM Geoechnical Saff and
he Conrac Inspecors are well qualified o perorm
heir responsibiliies. Te eam is well organized and
has clear arges and schedules or annual inspecions.Te Panel considers he echnical qualificaions o he
MEM Geoechnical Saff as among he bes ha i has
encounered among agencies wih similar duies.
Te Panel urher concluded:
Addiional inspecions o he SF would no have
prevened he ailure.
Similarly, he exensive invesigaion by he ChieInspecor o Mines, which considered over ,
pages o documens and hundreds o hours o
inerviews, did no find ha he company breached is
obligaions under he Mines Ac , he Healh, Saey and
Reclamaion Code or Mines in Briish Columbia, is
permi condiions or any orders o prosecue. Tis is
he regulaory ramework ha governs he Minisry’s
compliance and enorcemen acions. We o course
awai he resuls o he Minisry o Environmen’sinvesigaion o poenial breaches o is legislaion.
8/17/2019 Audit of mining sector
21/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
RESPONSE FROM GOVERNMENT
Te Audi Repor saes ha “governmen has adoped
an approach o reduce he regulaory burden on
indusry.” Te public relies on Qualified Proessionals
in many areas. Examples o qualified proessionalsinclude archiecs, accounans, lawyers, physicians,
pharmaciss and engineers. In each case, he qualified
proessionals are regulaed by heir respecive
governing body or associaion o ensure members
mee heir associaion’s sandards o conduc or code
o ehics. I qualified proessionals do no adhere o
hese sandards or codes, hen he associaions are
responsible or disciplinary acions. Tis is he sysem
ha holds proessional engineers accounable across
Canada. Te OAG concern abou over-reliance on
qualified proessionals is a criicism o proessional
bodies’ abiliy o regulae heir proessions.
Furhermore, he Audi Repor’s asserion ha
here is over-reliance on qualified proessionals is
no subsaniaed in he conex o mining. Reliance
on engineers and oher qualified proessionals in
he mining indusry has been a ac o lie in Briish
Columbia or decades. Te long sanding model
used in engineering hroughou he world relies on
proessional engineers o prepare and seal designs;
governmen hen reviews hese plans. Trough
legislaion like he Engineers and Geoscieniss Ac,
governmen has creaed echnical bodies o ormalize
accounabiliy and proec he public ineres.
Jus as he original design or he Moun Polley SF
was prepared and signed by a Proessional Engineer
in and hen reviewed by governmen saff, his was he same or subsequen lifs. In ac, he Exper
Panel ound:
MEM geoechnical engineers addressed significan issues
during he reviews and inspecions o he Moun Polley
SF. Tey had insighul quesions or he designers
a many insances during heir review o he design
documens, as noed above. Te EOR responded o hese
quesions based on heir observaions and undersandingo sie condiions. Te EOR is responsible or he overall
perormance o he srucure as well as he inerpreaion
o sie condiions. Te Regulaor has o rely on he
experise and he proessionalism o he EOR as he
Regulaor is no he designer.
Boh he Exper Panel and he CIM invesigaion
concluded ha he undamenal cause o he Moun
Polley ailure was he lack o appropriae subsurace
sie characerizaion when he dam was designedand buil. We respecully poin ou ha his was
no a quesion o he number o minisry saff on he
ground, he number o inspecions perormed, or an
increase in proessional reliance since.
In conducing he Moun Polley case sudy, he
audi eam – quie undersandably – augmened
heir own knowledge o environmenal principles,
geoechnical engineering and regulaory law. Tey
did so by consuling a panel o subjec mater
expers, comprising an environmenal academic,
environmenal lawyer, engineer and a ormer
employee. We undersand his o be consisen wih
normal audi pracice.
However, proceeding in ha manner did no give he
Minisries he opporuniy o know who was on he
panel, wha daa he panel may have considered on
specific poins, wha opinions hey migh have offered,or o challenge he hinking o panel members wih
addiional engineering evidence and/or compeing
legal or scholarly opinions.
8/17/2019 Audit of mining sector
22/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
RESPONSE FROM GOVERNMENT
Governmen wishes o hank he Audior General or
underaking he audi and her saff or heir effors.
In paricular, we appreciae he exended processes
by which he Audi eam allowed he Minisries oraise and discuss acual and legal concerns arising in
connecion wih successive drafs o he Audi Repor.
Te Audi eam responded o many o our concerns,
bu poins o disagreemen remained which we
believed could no be lef unanswered. While we do
no accep ha he Minisries have been deficien in
proecing he environmen, or he recommendaion
o reorganize he compliance and enorcemenprograms wihin a separae agency, we do believe he
sub-recommendaions provide meaningul and
consrucive guidance ha will complemen curren
iniiaives already underway.
PART 1: RECOMMENDATIONS FOR GOVERNMENT
Recommendation by OAG Ministry Response
RECOMMENDATION 1.0
Overall: We recommend ha he
Governmen o Briish Columbia creae an
inegraed and independen compliance and
enorcemen uni or mining aciviies, wih
a mandae o ensure he proecion o
he environmen. Given ha he Minisry
o Energy and Mines is a high risk o
regulatory capture , primarily because MEM’s mandae includes a responsibiliy
o boh promoe and regulae mining, our
expecaion is ha his new uni would no
reside wihin his minisry.
I is he legislaive ramework in BC ha drives compliance andenorcemen aciviies no he organizaional srucure. Many provincialgovernmens across Canada have agencies and minisries wih he role opromoing and regulaing an indusry. In he absence o evidence by he Audior General ha his has compromised he inegriy o he minisryor is saff, Governmen does no suppor he need or a reorganizaiono he minisries, however we are prepared o urher discuss his wihhe OAG. Governmen will esablish a Mining C&E Board ha willaddress he need or greaer inegraion beween he minisries, as well as wih he Environmenal Assessmen Office.
8/17/2019 Audit of mining sector
23/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
PART 2: RECOMMENDATIONS FOR MINISTRY OF ENERGY AND MINES AND MINISTRY OF ENVIRONMENT
Recommendation by OAG Ministry Response
RECOMMENDATION 1.1
Strategic PlanningWe recommend
ha governmen develop a sraegic plan
ha would deail he aciviies o an
inegraed and coordinaed regulaory
approach, and he necessary capaciy,
ools, raining and experise required o
achieve is goals and objecives.
A Mining C&E Board will be esablished o oversee an inegraed andcoordinaed regulaory approach o mining in he Province o B.C. TeBoard will be accounable o he Depuy Miniser o Energy and Mines,he Depuy Miniser o Environmen and he Associae Depuy Miniser ohe Environmenal Assessmen Office.
Te Board will develop compliance and enorcemen plans o map ouproacive annual aciviies based on a risk-based approach. Te board willalso be responsible or urhering longer erm sraegic improvemens inoher areas such as: enhancing raining; developing policies, proceduresand ools; conducing evaluaions; and expanding public reporing.
MEM will appoin a new Depuy Chie Inspecor o Mines or compliance
and enorcemen o oversee and implemen improved C&E.
RECOMMENDATION 1.2
Permit LanguageWe recommend ha
governmen ensure boh hisorical and
curren permi requiremens are writen
wih enorceable language.
Te minisries agree ha permis mus be writen wih measureable andenorceable requiremens. Boh minisries will develop policy o ensureenorceable and measurable requiremens are used in all new andamended permis.
RECOMMENDATION 1.9
IncentivesWe recommend ha
governmen creae effecive incenives
o promoe environmenally responsible
behavior by indusry.
Te minisries agree ha i is useul o consider incenives as par o hecompliance and enorcemen regime governing mines and will coninueo consider addiional opporuniies o recognize and reward good
environmenal perormers. Furhermore, i is expeced ha expandedpublic reporing o compliance and enorcemen aciviies will serveas a very effecive incenive or promoing environmenallyresponsible behaviour.
RECOMMENDATION 1.10
Risk-Based Approach
We recommend ha governmen develop
a risk-based approach o compliance
verificaion aciviies, where equency
o inspecions are based on risks such
as indusry’s non-compliance record,
indusry’s financial sae, and indusry’s
aciviies (e.g., expansion), as well as risks
relaed o seasonal variaions.
Compliance verificaion aciviies conduced by he minisries are oundedon a risk-based approach; however, he minisries commi o reviewpolicies in his regard.
Te annual compliance and enorcemen planning ha will ake place ahe Mining C&E Board, esablished under recommendaion 1.1, will also be risk-based o opimize he capaciy and effeciveness o he minisries’collecive compliance and enorcemen resources.
RESPONSE FROM GOVERNMENT
8/17/2019 Audit of mining sector
24/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
PART 2: RECOMMENDATIONS FOR MINISTRY OF ENERGY AND MINES AND MINISTRY OF ENVIRONMENT
Recommendation by OAG Ministry Response
RECOMMENDATION 1.12
Qualified Proessionals
We recommend ha governmen esablish
policies and procedures or he use and
oversigh o qualified proessionals (QP)
across he naural resources secor. Tese
policies and procedures should have he
ollowing:
guidance or sa ha oul ines
he speciic naure and amoun ooversigh expeced o a QP’s work
guidance or sa as o expecedimerame or review andresponse o QP repors
updaed guidance or sa orrecognizing and responding omisconduc by a QP
conrols in place o ensure hahere is no undue inluence on heQPs by indusry
conrols in place o ensure harecommendaions by QPs areadhered o
MEM’s effors are guided by he Mines Ac and he Healh, Saey andReclamaion Code or Mines in Briish Columbia. In paricular, he CodeReview currenly underway is considering specific maters such as heneed or a qualified individual designaed as a mine dam saey manager ooversee all work associaed wih a ailings sorage aciliy and will clariyhe roles and responsibiliies o he Engineer o Record a a mine.
Te Mining C&E Board, esablished under recommendaion 1.1, willconsider how MoE and MEM can srenghen he use and oversigh oqualified proessionals in he mining secor specifically.
Te Minisry o Foress, Lands and Naural Resource Operaionshas esablished a Qualified Persons in he Naural Resource Secor
Framework. Tis ramework guides he developmen and implemenaiono Qualified Persons policies and procedures specifically or he miningsecor. Te ramework is based on he hree essenial componens oguidance, compeency and accounabiliy and ensures he ineress ogovernmen, resource users, qualified persons and oher sakeholders arerecognized and addressed.
RECOMMENDATION 1.14
Policies, Procedures and ToolsWe
recommend ha governmen develop
policies, procedures and enorcemen ools
or responding o non-compliances when
indusry does no mee governmen’sspecified imeline.
Te minisries agree on he imporance o clear policies, procedures andools o aid in heir compliance and enorcemen aciviies. Te minisries will review hese in ligh o he recommendaions. Te esablishmen ohe Mining C&E Board, under recommendaion 1.1, will serve o urheriner-minisry collaboraion and sharing o bes pracices.
Governmen will also inroduce amendmens o he Mines Ac o provide
or Adminisraive Moneary Penalies in he spring 2016legislaive session.
RESPONSE FROM GOVERNMENT
8/17/2019 Audit of mining sector
25/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
PART 2: RECOMMENDATIONS FOR MINISTRY OF ENERGY AND MINES AND MINISTRY OF ENVIRONMENT
Recommendation by OAG Ministry Response
RECOMMENDATION 1.15
Evaluation and Adjustment
We recommend governmen regularly
evaluae he effeciveness o is compliance
promoion, compliance verificaion, and
enorcemen aciviies and ools, and
make changes as needed o ensure
coninuous improvemen.
Annual compliance and enorcemen planning and reporing willprovide a means o evaluae he effeciveness o he program, o ensureongoing improved argeing o areas o concern and recogniion o srongperormers. Te minisries will address his recommendaion hrough heesablishmen o a Mining C&E Board under recommendaion 1.1.
RECOMMENDATION 1.16
Public ReportingWe recommend ha
governmen repor publicly he:
resuls and rends o all miningcompliance and enorcemenaciviies
eeciveness o complianceand enorcemen aciviies inreducing risks and proecing heenvironmen
esimaed liabiliy and he
securiy held or each mine.
Te minisries suppor public reporing and have been making progress inhis area. Te Minisry o Environmen has been reporing is enorcemenacions or many years hrough published repors and an online searchabledaabase. I repors all o is enorcemen acions including orders,adminisraive sancions, adminisraive moneary penalies, violaionickes and cour prosecuions. Te minisry will work wih Minisry oEnergy and Mines o explore including heir enorcemen acions in hereporing.
In 2012, he Minisry o Environmen published all o is permisor indusrial and municipal aciliies ha discharge wase ino heenvironmen, including mines. Tis daase provides he opporuniyor ciizens o access province-wide daa on hose aciliies, includinginormaion on ees, locaions and discharges.
Te Minisry o Energy and Mines published all dam saey inspecions,emergency response plans and relaed documens online in 2015. Teminisry will coninue o publish urher documens or all major mines inBriish Columbia.
Te minisries will repor on rends and effeciveness o C&E in hemining secor.
RESPONSE FROM GOVERNMENT
8/17/2019 Audit of mining sector
26/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
PART 3: RECOMMENDATIONS FOR MINISTRY OF ENERGY AND MINES
Recommendation by OAG Ministry Response
RECOMMENDATION 1.3 Security
Adequate CoverageWe recommend ha governmen
saeguard axpayers by ensuring he reclamaion liabiliy
esimae is accurae and ha he securiy held by governmen
is sufficien o cover poenial coss.
As seen in he 2014 Chie Inspecor’s Annual Repor,“In he pas ew years, he value o securiy deposishas increased o reflec more closely he rue coss oreclamaion. Te oal value o securiies held by heProvince has risen rom $10 million in 1984 o more han$773 million by he end o 2014.”
RECOMMENDATION 1.4 Security
Catastrophic EventsWe recommend ha governmen
review is securiy mechanisms o ensure axpayers are
saeguarded om he coss o an environmenal disaser.
Environmenal disasers, like he one seen as aresul o he Moun Polley ailing aciliy breach, canresul in damage boh on and off a mine sie. I is heresponsibiliy o he mine operaor o ensure sufficienenvironmenal liabiliy insurance is held o mee he risko such disasers.
Te Environmenal Managemen Ac conains auhoriyor spill response acions and cos recovery o requirepersons in possession or conrol o any polluingsubsance o prepare coningency plans and oimplemen hose plans a heir expense in he even oa spill. Te Ac also provides or he recovery o cossshould acion o respond o a spill be declared by heMiniser.
Tis Ac is being amended o proacively requirepoenial polluers o pay ino a spill preparedness andresponse organizaion. Tese amendmens are due orinroducion o he Legislaure his year.
RECOMMENDATION 1.8
Reclamation GuidanceWe recommend ha governmen
develop clear and comprehensive reclamaion guidance
or indusry.
Inernal work has begun on developing addiionalguidance maerials on a range o reclamaion aspecs,including erosion and sedimen conrol plans, closuremanagemen manuals, reclamaion securiy, ec.
RECOMMENDATION 1.11
Systematic Compliance VerificationWe recommend
ha governmen sysemaically monior and record
compliance wih high-risk mine permi requiremens.
As wih Recommendaion 1.10 above, a risk-basedapproach o compliance and enorcemen workorceplanning will uncover poor perormers or closerscruiny.
RESPONSE FROM GOVERNMENT
8/17/2019 Audit of mining sector
27/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
PART 3: RECOMMENDATIONS FOR MINISTRY OF ENERGY AND MINES
Recommendation by OAG Ministry Response
RECOMMENDATION 1.13 Mine DesignWe
recommend ha governmen adop appropriae sandards,
review mine designs o ensure ha hey mee hese sandards,
and ensure ha mines, as consruced, reflec he approved
design and sandards.
Tis recommendaion is presened a he conclusiono he Audi Repor secion on he Moun Polley SF breach.
Tere had been nine design sages over he lie o he SFa Moun Polley Mine. All sages, including he designsage in place a he ime o he breach had been prepared by he design engineer; a qualified proessional. MEMreviewed and auhorized permi amendmens or eachsage o he SF. Each sage o consrucion was cerified by he Engineer o Record in he as-buil repors. Teailure o he SF was no an enorcemen issue.
Trough legislaion like he Engineers and Geoscieniss Ac, governmen has creaed echnical bodies oormalize accounabiliy and proec he public ineres. As appropriae in heir role, in response o he ExperPanel findings on Moun Polley he Associaiono Proessional Engineers and Geoscieniss BC isdeveloping proessional pracice guidelines or damsie characerizaion assessmens. Governmen is alsounderaking a review o he Mining Code wih labour,Firs Naions and indusry represenaives o deerminehow bes o implemen he exper panel findings.
RESPONSE FROM GOVERNMENT
8/17/2019 Audit of mining sector
28/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
PART 4: RECOMMENDATIONS FOR MINISTRY OF ENVIRONMENT
Recommendation by OAG Ministry Response
RECOMMENDATION 1.5 Environmental
Management Act Waste Discharge FeesWe recommend
ha governmen review is ees under he Environmenal
Managemen Ac and ensure ha he ees are effecive in
reducing polluion a mine sies.
Te Minisry o Environmen is commited o reviewinghe ee srucure or wase discharges under he Environmenal Managemen Ac . Work has already beeniniiaed o assess curren ees, as well as conduc a cross- jurisdicional scan o ees imposed by oher provincesand erriories.
RECOMMENDATION 1.6
Cost RecoveryWe recommend ha governmen adop
a cos recovery model or permiting and compliance
verificaion aciviies ha is consisen across all minisries in
he naural resources secor.
Te Minisry o Environmen recognizes ha ohernaural resource secor minisries, including heEnvironmenal Assessmen Office, have begun imposingees on indusry or permiting and compliance verificaion aciviies. Te minisry will be examining heimposiion o ees or hese aciviies.
Effecive April 1, 2015 permi ees were inroducedunder he Mines Ac and he exising inspecion ees wereraised. Tis enabled a budge increase o approx. $9.3Mo he Minisry o Energy and Mines in Budge 2016.
RECOMMENDATION 1.7
Decision MakingUse o section o the
Environmental Management ActWe recommend ha
governmen publically disclose is raionale or graning a
permi under secion o he Environmenal Managemen
Ac. Specifically, inormaion should include how acors
such as economic, environmenal, and social atribues were
considered in he deerminaion o public ineres.
As provided or in Secion 137 o he Environmenal Managemen Ac , Cabine may consider acors haare in he public ineres and beyond hose ha aminisry direcor may consider. Discussions underlyinghe approval o an OIC are a mater o Cabineconfidenialiy. However, he resuls o Cabine decisions,
when hey are issued in he orm o OICs, are publishedon he BC Laws websie.
RESPONSE FROM GOVERNMENT
8/17/2019 Audit of mining sector
29/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
BACKGROUND
MINING IN B.C.
M a par o B.C.’s economy since he mid-s. Saring wih coal mines on VancouverIsland and gold placer mining in he Cariboo, mining has expanded o all pars o he province.
oday, mining is a key driver o B.C.’s economy. Coal
and meal mines are he larges revenue-generaing
commodiies, and mining and relaed secors employ
more han , people. In , he oal value o
producion a B.C. mines was abou $ billion. Mineral
exploraion spending was $ million in and $
million in . Currenly in operaion, are six coal mines,
seven meal mines, more han indusrial mineral
mines, and hundreds o quarries and aggregae pis.
B.C. is Canada’s larges copper producer, larges
exporer o meallurgical coal, and he only producer
o molybdenum. Coal and meal mines are reerred o
as major mines and are he ocus o his repor
(see Exhibi ).
Mining is a emporary aciviy: i only lass as long
as he economically exracable resource (e.g. coal,
copper) is available. Tis could be up o years or
more. Mining is also a volaile indusry ha relies on
commodiy prices, resuling in cycles o “boom and
bus.” Currenly, B.C. mines are being affeced by a
sharp decline in commodiy prices.
In addiion o he operaing major mines, he
province has abou ohers ha are emporarily
closed or permanenly closed. Over one-hird o hese
closed mines are sill he responsibiliy o he mining
companies and coninue o have environmenal
obligaions under heir permis. Governmen’s role,
hrough coninued monioring and inspecions, is o
ensure ha mine operaors mee hese obligaions.
Te remaining sies are generally older, smaller mines
ha predae – he year ha governmen enaced
legislaion requiring mine operaors o mee more
sringen environmenal sandards. For hese older
mines, governmen could be lef wih he ull cos o
remediaion i waer qualiy issues were o develop ahese mine sies.
Te Governmen o B.C. suppors he coninued
growh o he mining indusry, as indicaed in he
BC Jobs Plan. Ta plan included a arge o having
eigh new major mines in operaion by he end o
and expanding nine exising mines. MEM repored in
June ha wo new mines had sared operaion
and seven had expanded. Te minisry cied ha low
commodiy prices during / impaced he rae omine expansions.
Click on he erms ha are bold and blue
o go o he definiion in he glossary
( Appendix B).
8/17/2019 Audit of mining sector
30/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
0 75 150 300 Kilometers
Exhibit 1: Major mines in British Columbia as of August 2015
BACKGROUND
Source: Creaed by GeoBC or he Office o he Audior General o Briish Columbia
8/17/2019 Audit of mining sector
31/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
A he same ime, governmen has a long-sanding
commimen o ensure ha mining aciviies proec
he province’s environmenal values. Tere is a ension
beween ulfilling his commimen and working ogrow he economy and creae jobs, bu governmen
has saed ha i embraces his dynamic. Mining
aciviies inherenly involve several environmenal
risks such as erosion, loss o habia, carbon
emissions, dus and sedimenaion. However,
he greaes environmenal risk rom mining is
waer conaminaion.
Given he ension and hese risks, a robus
compliance and enforcemen program is essenialo ensure ha he environmen is proeced.
BACKGROUND
8/17/2019 Audit of mining sector
32/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
MINERAL RESOURCESDEVELOPMENT CYCLE
AVAILABLELANDRESOURCES
PLANNING ENVIRONMENTAL
ASSESSMENT PERMITTING
EXPLORATION8-10 years
CONSTRUCTION
1-3 years
OPERATION10-30 years
CLOSURE1-2 years
ENVIRONMENTAL MONITORING, AND IN SOME CASES,WATER TREATMENT, MAY BE REQUIRED IN PERPETUITY
P R O G R E S
S I V E R E
C L A M A T
I O N
P R O G R E S S I V E
R E C L A M A T I O N
BACKGROUND
Exhibit 2: The life cycle of a mineMEM supports the concept of progressive reclamation – that is, pro-active and ongoing reclamation that begins earlyin mine development and continues over the life of the mine. In many cases, reclamation continues after closure for adefined period (until closure obligations are met by the mine operator). However, a mine that is generating, or has the
potential to generate, contaminated water must be monitored indefinitely by the mine operator, and may require long-term or perpetual water treatment.
Source: Office o he Audior General o Briish Columbia, adaped rom Mineral Resources Educaion Program o BC
8/17/2019 Audit of mining sector
33/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
ENVIRONMENTAL
CONCERNS WITH
MAJOR MINES
The mining process
Te lie cycle o a mine begins wih geoscience surveys
and exploraion o discover valuable coal or mineral
deposis. Discovery leads o consrucion, operaion
and evenual closure when he exracable resource is
depleed or no longer economically viable o exrac
(see Exhibi ).
BACKGROUND
How the mining process cangenerate pollution
Ore is mineralized rock conaining a valued meal
(such as gold or copper) or oher mineral subsances
(such as coal). In open pi mines, ore is exraced rom
an excavaed open pi. Acid and meals, i conained
in exposed pi walls, can leach ino he surrounding
environmen. Te exraced ore also includes large
quaniies o wase rock (maerial no conaining he
arge mineral) ha ges sored a he mine sie. Tese
wase rock piles, which may conain acid-generaingsulphides, heavy meals and oher conaminans, can
become a source o polluion.
Te ore ha conains he valued meal or mineral
is crushed and ground ino fine paricles he size o
sand or sil. Tis ore is hen processed using various
chemicals and separaing mehods o exrac he
final desired meal or mineral. Te by-producs o
his process are he ailings. Mine ailings ofen
conain he same poenially oxic heavy meals andacid-orming minerals as wase rock, and may also
conain he chemical agens used in processing, such
as cyanide or sulphuric acid. ailings are usually sored
above ground in conainmen areas or ponds.
Boh wase rock and ailings, i improperly secured,
can leach ou conaminans ino surace waer and
groundwaer, resuling in significan polluion and
adverse effecs (see Exhibi ).
Exhibit 3: Potential sources of water pollution in an open pit mine: pit walls, waste rock piles and tailings
Waste rock
piles
Processing
mill
Watertreatment
facility
Tailingsstoragefacility
Pit walls
Contaminated water
Treated water
Source: Office o he Audior General o Briish Columbia, adaped rom he Inernaional Nework or Acid Prevenion’s Global Acid Rock Drainage Guide and adaped rom he Elk Valley Waer Qualiy Plan.
http://www.teck.com/media/2015-Water-elk_valley_water_quality_plan_T3.2.3.2.pdfhttp://www.teck.com/media/2015-Water-elk_valley_water_quality_plan_T3.2.3.2.pdf
8/17/2019 Audit of mining sector
34/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
Daily milling capacity from the early 1900's to present day
0.1
1
10
100
1,000
10,000
200019501900
100 tonnes in 19001,000 tonnes by 193010,000 tonnes by 1960100,000 tonnes by 2000
T o n n e s m i l l e d p e r
d a y ( t h o u s a n
d s )
Year
Advances in mechanizaion and echnology in he
mining indusry make i profiable or companies
o mine more maerials han ever beore. Te resul,
however, is ha mine wase in some o Canada’s largermines has muliplied enormously – rom s o
onnes per day in he early s o ,–,
onnes a day in some o Canada’s larger mines now.
Tis creaes a greaer poenial source o polluion
(see Exhibi ).
In B.C., meal mines are ypically low grade, meaninggreaer quaniies o wase maerial are now being
generaed in order o exrac arge minerals
(see Exhibi ).
BACKGROUND
Exhibit 4: Growth of production in Canada’s largest mines
Source: Office o he Audior General o Briish Columbia, adaped rom RobersonGeoConsulans Inc., Mine Waer Soluions in Exreme Environmens
Coal mining in he early ’sSource: www.brooklineconnecion.com
Presen-day haul rucks have he capaciy o movehundreds o onnes o maerial.Source: Sock image
8/17/2019 Audit of mining sector
35/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
Water pollution and environmentalimpacts from mining
Te mos serious environmenal issues acing he
mining indusry, governmen and he public is waer
conaminaion resuling rom he chemical processes
associaed wih acid rock drainage (ARD) and heavy
meal and non-meal leaching (leaching).
ARD can occur when mineral deposis are excavaedrom an open pi or exposed in an underground mine
and hen reac wih air and waer o produce acid
(see Exhibi ). While ARD is a naural process, he
scale can be magnified as a resul o mining
aciviies. ARD has he poenial o severely degrade
waer qualiy, kill aquaic lie and make waer
virually unusable.
Leaching can occur when minerals conaining heavy
meals and non-meals (such as arsenic, copper,
cadmium, lead, zinc and selenium) in excavaed rock
or exposed mine walls come ino conac wih waer
and hen seep rom he rock ino he environmen.Meal and non-meal dissolving and ransporaion
may be acceleraed in he acidic condiions creaed
by ARD.
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Copper target materialOre waste material
135,500tonnes/day
500tonnes/day
BACKGROUND
Exhibit 5: Highland Valley copper mine’s production
Source: Phoograph, couresy o he Office o he Audior General o BriishColumbia. Daa adaped rom Wikipedia, InoMine and eck Resources Ld.’s Annual Repor
8/17/2019 Audit of mining sector
36/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
Te conaminans ha resul rom ARD and leaching
can be carried rom a mine sie and deposied ino
sreams, rivers, lakes and groundwaer. Te resul can
be a slow, bu severe, degradaion o waer qualiy
and subsequen damage o fish populaions and
aquaic lie. In he case o a sudden ailings dam breach, he resul can be immediae and cause
caasrophic damage.
Wihin he U.S. and Canada, ARD and leaching
have conaminaed rivers, caused significan
ecological damage, loss o aquaic lie and resuled in
mulimillion-dollar clean-up coss or indusry andgovernmen (see Exhibi ).
Challenges in dealing with ARD and leaching
Planning and working o preven ARD and leaching
is an imporan par o avoiding environmenal
degradaion and declining qualiy o aquaic
habia and drinking waer. From a regulaory and
environmenal risk perspecive, considerable emphasis
in mine developmen is placed on prevening or
miigaing ARD and leaching. Tere are various
provincial and naional commitees ocused on
conducing research and sharing good pracices
beween governmen and indusry.
In recen years, echnological advances and
improvemens o mining pracices have helped in
his regard, hough significan environmenal risksremain. ARD and leaching are dynamic and complex
chemical processes ha are challenging o predic.
Te acual environmenal impac varies, depending on
acors such as he size and locaion o he mine and
he characerisics o he surrounding environmen.
Furhermore, he raes and iming o ARD and
leaching onse vary in response o a wide range o
sie-specific mining, geological and environmenal
acors. For example, a some mine sies, onse is
insananeous; a ohers, i has aken anywhere rom
o years.
BACKGROUND
Exhibit 6: Acid rock drainage on land and in water
Source: iSock (op) and Office o he Audior General o Bri ish Columbia(botom)
8/17/2019 Audit of mining sector
37/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
Once iniiaed, hese processes can persis or
hundreds or even housands o years (see Exhibi ).
Mine companies can miigae he effecs o ARD and
leaching, bu here is no walk-away soluion. A mine
ha is generaing, or has he poenial o generae,
conaminaed waer mus be moniored indefiniely,
and may require long-erm or perpeual
waer reamen.
A common pracice in B.C. o preven ARD and
reduce leaching is o sore he acid-generaing
rock under waer in ailings ponds o minimize
he oxidaion process. Tese ponds mus remain
permanenly flooded. Tere are oher miigaion
opions, such as surace covers, bu MEM’s ARD
and leaching guidelines sae ha hese opions are
less reliable han underwaer sorage. Where oher
sraegies are unsuccessul, drainage collecion and
chemical reamen may be he only easible means
o prevening impacs. MEM also saes in hese
guidelines ha waer reamen should generally be he
miigaion sraegy o las resor.
In pracice, however, waer reamen is no unusual inB.C., and governmen does approve mines ha require
waer reamen rom he ouse major mines
currenly have waer reamen aciliies. MEM has
BACKGROUND
Te Faro Mine, locaed in souh cenral Yukon, is one o he larges and mos complex conaminaed
sies in Canada. I was an open-pi lead-zinc mine rom unil i wen ino receivership in and
ulimaely closed. Te sie covers approximaely , hecares and includes nearly million onnes
o ailings and wase rock. Tese maerials conain high levels o heavy meals ha could leach ino he
environmen in he absence o remediaion. Yukon axpayers will pay an esimaed $ million or he
clean up o his sie.
Source o phoograph: Aboriginal Affairs and Norhern Developmen Canada
Exhibit 7: The Faro Mine, Yukon
8/17/2019 Audit of mining sector
38/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
ranked addiional mines as having moderae o
high poenial o ARD and/or leaching, and has
esimaed ha o hese mines will require perpeual
waer reamen.
While waer reamen is a common pracice in B.C.
and oher jurisdicions, some areas – he Norhwes
erriories, Manioba and Wisconsin – do no allow
mining operaions ha require long-erm waer
reamen. Tis is due o he increased risk ha
axpayers will ulimaely be lef wih he cos
o remediaion.
Tese waer reamen plans (see Exhibi ) mus bemoniored by indusry and governmen, mainained
and periodically replaced, in perpeuiy. Tis assumes
ha mining companies are willing and able o ake on
hese coss indefiniely – a risky assumpion given he
boom and bus naure o mining and he realiy ha
companies do no exis orever.
I indusry is unable o mainain and replace hese
aciliies or ulfill he environmenal obligaions in
heir permi, here is a risk ha he axpayer will have
o bear hese coss. In B.C., o reduce he possibiliy
o axpayers being lef wih he financial burden o
hese aciliies and environmenal reclamaion coss
o mine sies, mining companies mus provide a
financial securiy deposi. Tis deposi is designed
o ensure, wih “reasonable assurance” (as decided by
he Chie Inspecor o MEM), ha axpayers will no
have o conribue o reclamaion coss i a company
deauls on is reclamaion obligaions. Tis includesany ongoing requiremens or managemen and
monioring o achieve environmenal proecion.
BACKGROUND
Exhibit 8: Roman era mine in Spain dating back2,000 years, but still producing acidic wastewater.
Source: Te Inernaional Nework or Acid Prevenion’s Global Acid Rock Drainage Guide
8/17/2019 Audit of mining sector
39/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
GOVERNMENT’S
ROLE AS AN
ENVIRONMENTALPROTECTION
REGULATOR
Under exising B.C. legislaion and policies, mining
companies are ully responsible or environmenal
proecion and reclamaion a heir mine sies. Te
companies mus demonsrae ha heir plans or
he developmen, operaion and closure phases o
he mines will be effecive. I is governmen’s roleo ensure ha he aciviies underaken by he mine
operaors are proecing he environmen.
Legislaion and regulaions under several agencies
apply o mining in B.C. For his audi, however, we
ocused on hose ha are he responsibiliy o MEM
and MoE because hese wo minisries:
are he primary permi ing agencies or major
mine operaions, and
have environmenal proecion mandaes
and associaed compliance and enorcemen
responsibiliies under provincial legislaion.
While heir mandaes overlap somewha, here are
also key differences.
MEM’s responsibiliies apply generally wihin he mine
sie. Te Chie Inspecor o Mines, appoined by he
Miniser o Energy and Mines, adminisers he Mines Ac and he Healh, Saey and Reclamaion Code or
Mines in Briish Columbia o ensure he proecion
and reclamaion o he land and waercourses
affeced by he mine. MEM grans a permi under
he Mines Ac o ensure mines are designed, buil,
operaed and reclaimed o an accepable sandard.
MEM collecs a financial securiy deposi rom mining
companies o help ensure ha reclamaion obligaions
are kep.
MoE’s responsibiliies are generally defined as
exending beyond he borders o he mine sie. MoEregulaes, hrough he graning o a permi under
he Environmenal Managemen Ac , he quaniy and
qualiy o any wase discharges rom meal and coal
mines o ensure he proecion o he environmen.
BACKGROUND
Tis mine operaed rom o , and did
no include a plan or waer reamen, as ARD
was no prediced o become an issue. However,
ARD did occur and he coss o rea i have
coninued o grow, even hough he mine is
closed. Coss include $ million o build he
new waer reamen aciliy shown above, and
increasing lime coss o neuralize he acid.
Te mining company has borne hese coss.
A securiy deposi is currenly held by MEM
o $ million which provides a saey neor axpayers.
Exhibit 9: The water treatment facility at Equity SilverMine in central B.C.
Source: Office o he Audior General o Briish Columbia
8/17/2019 Audit of mining sector
40/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
AUDIT OBJECTIVE AND CONCLUSION
W audi o deermine wheher he regulaory compliance and enorcemenaciviies o he Minisry o Energy and Mines and he Minisry o Environmen peraining o he mining secor
are proecing he province rom significan environmenal risks.
We expeced he compliance and enorcemen
program o he wo minisries o have he seven key
elemens – defined by good pracice – ha would
make such a program effecive (shown below). We
also expeced ha MEM and MoE would be working
ogeher o achieve heir combined objecive o
proecing he environmen. (For more deails on he
audi expecaions and scope, see Appendix A ).
We concluded ha MEM and MoE’s compliance
and enorcemen aciviies o he mining secor are
inadequae o proec he province rom significan
environmenal risks.
Te ollowing wo secions o he repor address our
key audi findings or each minisry. Te firs secion
perains o MEM and he second secion o MoE.
PLANNING
REPORTING PERMITTING
COMPLIANCE
PROMOTION
COMPLIANCE
VERIFICATIONENFORCEMENT
EVALUATION &
ADJUSTMENT
1
2
3
4
5
6
7
COMPLIANCE &
ENFORCEMENT
Seven key elements of a comprehensive compliance and enforcement program
Source: Office o he Audior General o Briish Columbia, adaped rom he Organisaion or Economic Co-Operaion andDevelopmen’s Ensuring Environmenal Compliance: rends and Good Pracices and MOE’s Compliance Managemen Framework
8/17/2019 Audit of mining sector
41/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
PART 1: MINISTRY OF ENERGY AND MINES
MEM CONCLUSION
We concluded ha he Minisry o Energy and Mines’
compliance and enorcemen aciviies o he mining
secor are inadequae o proec he province rom
significan environmenal risks.
SUMMARY OF KEY
FINDINGSMEM’s compliance and enorcemen program
is limied. As a resul, he minisry is deficien in
carrying ou mos o he expeced regulaory aciviies,
such as creaing guidance documens, underaking
inspecions, monioring daa provided by indusry,
and enorcing non-compliance. Te minisry lacks he
resources, raining and ools necessary or compliance
and enorcemen. Furhermore, MEM does no
coordinae is compliance and enorcemen aciviies
wih hose o MoE. MEM has no publicly repored on
he effeciveness o is regulaory oversigh. MEM has
esimaed ha is financial securiy deposis or major
mines are under-secured by more han $. billion, ye
he minisry has no disclosed his o he public or o
legislaors, or communicaed he poenial risk
his poses.
MEM’S ROLES AND
RESPONSIBIL IT IES
MEM’s service plan has wo goals:
Goal : Globally compeiive energy and
mining secors ha creae jobs and grow
he economy
Goal : Sae, environmenally and socially
responsible energy and mineral resource
developmen and use
o achieve hese goals, MEM has wo main regulaory
ools: he Mines Ac , which governs all aciviies
ha occur on mine sies; and he Healh, Saey
and Reclamaion Code (Code) or Mines in Briish
Columbia, which regulaes all mining aciviies.
Te purpose o he Mines Ac and he Code is o:
Proec he healh and saey o workers and
public rom mining aciviies.
Proec and reclaim he land and waercourses
aeced by mining.
Suppor and monior he eicien developmen
o he Crown’s mineral and coal resources,
while managing environmenal impacs.
Faciliae successul reclamaion (see sidebar)
and closure o mine operaions.
Regulae environmenal and reclamaionliabiliies a mines hrough permiing and
bonding o ensure ha public unds will no be
required o pay he coss o mine clean up.
8/17/2019 Audit of mining sector
42/109
Auditor General of British Columbia | May 2016 | An Audit of Complicance and Enforcement of the Mining Sector
Health, Safety andPermitting Branch
Wihin MEM’s Healh, Saey and Permiting
Branch is he permiting group. Unlike MoE, saff
responsibiliies wihin his group include boh
permiting and compliance and enorcemen. Tere
are wo secions wihin his group: geoechnical
and reclamaion.
Te geoechnical secion is responsible or many
aciviies, including:
echnical review o proposed mining projecs
geoechnical review o incidens and
responding o mine inquiries
geoechnical advice and policy developmen
inspecions ha ocus on a range o aciviies,
including he perormance o ailings dams,
wase rock dumps, open pi slopes and
underground openings
Te reclamaion secion is responsible or many
aciviies, including:
echnical review o proposed mining projecs
conducing AR D and leaching
(waer qualiy) assessmens
review o various environmenal plans
and repors
adminisering reclamaion securiy deposis on
behal o he province
inspecions o mine reclamaion aciviy
As o July , he permiting group consised o
nine saff, including wo geoechnical engineers,
wo reclamaion scieniss, our environmenal
geoscieniss specializing in geochemisry and waer
qualiy, plus he Depuy Chie Inspecor o Mines.
PART 1: MINISTRY OF ENERGY AND MINES
WHAT IS RECLAMATION?Mining companies are required o reclaim all
lands disurbed by mining. While MEM has no
defined wha i means o reclaim all lands , MEM
has esablished broad reclamaion sandards
wihin he Healh, Saey and Reclamaion Code
or revegeaion, growh media, meal upake,
landorms, waercourses, waer qualiy, dispos
Top Related