Policy & Positions Manual
Policy Priority Area - A Vibrant Resource Sector
Uranium and Mineral Exploration (2008 - Revised 2009)
Uranium and thorium are very common elements in the earth’s crust, although concentrations amenable to mining are relatively rare. Uranium is a key fuel for electricity generation in many advanced jurisdictions including: France, Germany, Great Britain, the United States and Russia. Ontario and New Brunswick also utilize uranium. It is increasingly being seen as a key tool in addressing issues of climate change and reducing our carbon footprint.
Yet BC recently announced that all new mineral claims acquired in the province will not include the rights to uranium or thorium. Moreover, although mineral tenures acquired before April 24th, 2008 do carry the rights to these elements, the Province will not honour them. Nor will the Province issue work permits to allow tenure holders to perform the assessment work necessary to maintain their claims in good standing.
This decision is not based on science, and denies British Columbians the benefits from their uranium/thorium resource, as well as (potentially) the benefits of other mineral resources such as copper, which sometimes occurs with these elements.
The lack of effective, meaningful consultation with industry in advance of this announcement is very damaging to government’s credibility and to the provinces reputation as a safe place to do business. By acting unilaterally, and without consultation with industry, the only certainty provided is uncertainty reinforcing BC’s extremely negative reputation in international mining and investment communities as an unsafe place to do business (as reflected in annual Fraser Institute reports).
A very negative message has been sent to investors, clearly signalling that BC is not ‘open for business.’ This year’s Fraser Institute Survey of Mining Companies shows BC has dropped to 24th from 19th (out of 71 jurisdictions) in terms of Policy. 40% of survey respondents reported, “uncertainty concerning the administration, interpretation, and enforcement of existing regulations,” as a deterrent to investment in BC, while almost 65% see “Environmental Regulations” as another deterrent.
There can be no certainty or investor confidence when government is prone to changing the rules of the game based on political considerations rather than good science. There can be no certainty when governments do not respect established project assessment processes and procedures, or honour established rights.
The provincial government asserts that because it has not included nuclear energy in its 2007 BC Energy Plan that there is no need to mine uranium in BC. This is a false assertion, confusing two essentially unrelated activities: power generation, and the development and utilization of our uranium resources. The support of uranium exploration and mining is not a commitment to develop nuclear power, any more than support for coal mining is a commitment to develop coal-fired power in BC.
Uranium is increasingly referred to as the new “Green Power”. Any uranium mined in BC will assist in addressing world climate change efforts, and would create new jobs, economic activity and new wealth to sustain our health, education and social systems and our economy.
Uranium is a resource that is mined safely and responsibly to the great benefit of citizens of other jurisdictions around the world. Mining of uranium is a key foundation of Saskatchewan’s economy which produces between 25% and 30% of the world’s total production from its high grade, world class deposits. It does so responsibly to the great benefit of its citizens, and is a world leader in health and safety in its mines. Currently uranium mines are safely operated in over 20 countries around the world, and both uranium and thorium have many positive and beneficial uses, particularly in energy and critical health care applications.
Valuable natural mineral resources (such as uranium and thorium) are the common heritage of all British Columbians. The provincial government has an obligation to develop and manage BC’s resources - including uranium and thorium - to the optimum benefit of all British Columbians. Strict regulations ensuring safety regarding uranium are in place in all regions of Canada.
BC is very under explored for uranium, consequently known reserves are low. The 1980 Royal Commission Inquiry into Uranium Mining reported that, at the time of writing, uranium exploration in BC had only been on-going for eleven years, yet in that short time no fewer than six significant deposits had been found. Since that time there has been very little new uranium exploration because of moratoria and low prices.
The Royal Commission quoted the Ministry of Mines, Energy and Petroleum Resource’s Geological Division’s conclusion that, “vast areas of the central Interior would appear to be potentially favourable for the discovery of basal type uranium deposits,” and, “exploration for other types of deposits, particularly those types not yet recognized in the province (black shale, phosphate, sandstone) is warranted.”
More recently, in 1994, the BC Geologic Survey began to recognize the potential for, and to encourage exploration for, polymetallic Olympic Dam (OD) style mineral deposits, (also known as Iron Ore - Copper- Gold or IOCG) in BC. The Olympic Dam was discovered in 1975, and is one of the world’s largest copper mines, and also, as a by-product, one of the world’s largest uranium mines.
Not being allowed to excavate the uranium would preclude the mining of the copper. The ban on uranium essentially makes exploring for these types of copper deposits, which are very large and valuable when found, much less attractive. Not all Olympic Dam/ IOCG deposits contain uranium/thorium, but some clearly do. Explorers are now deterred from looking for these world class and very valuable deposits in BC. It is questionable whether explorers would continue to search for IOCG deposits should this ban stand.
Uranium and thorium are widespread in the environment and are very common in BC’s mineral formations; they can be and are encountered in exploration for other commodities. Care must be taken not to inhibit exploration for these other resources. Another example is molybdenum, an important current target today with much on-going exploration in BC. Some molybdenum deposits can have associated uranium/thorium values. The new policy threatens this important economic activity as well.
This ban effectively discourages exploration over a significant area of BC, including several prospective properties that include gold, copper, silver, molybdenum, and zinc.
The Chamber believes that uranium mining should be treated like any other industrial activity in our society: if it can be done safely and sustainably, allow it. That it can be done safely and responsibly has been amply shown in many other jurisdictions.
THE CHAMBER RECOMMENDS
That the Provincial Government:
- rescind its ban on uranium mining;
- consult meaningfully and effectively with industry on an appropriate regulatory regime to ensure that any mining of uranium is conducted safely and responsibly;
- abandon any intention of not providing fair compensation for rights it no longer intends to honour;
- recognize the damage done to investor confidence by this misguided ban, and take steps to redress and restore that confidence;
- provide fair compensation for damages to claim holders affected by the uranium ban;
- institute an assessment work holiday for affected claims, until compensation is provided;
- establish clear and practical policy and regulations with respect to low level, incidental radioactive mineral concentrations (e.g. in coal, rare metal deposits, etc.); and
- educate the public about natural sources of radioactivity, the geology of such deposits, and technical mitigation strategies (in accordance with MEMPR’s Objective 3.3, “Enhanced public awareness of resource opportunities and the benefits of their responsible development and use.(Budget 2009/10-2011/12 Service Plan)
