Participant Funding Program – Regular Funding Envelope
Funding Review Committee's Report

Allocation of Federal Funds for the Environmental Assessment of the Arnaud Mining Project

The Participant Funding Program (PFP) is established pursuant to subsection 58(1.1) of the Canadian Environmental Assessment Act (the Act), which states: For the purposes of this Act, the Minister shall establish a participant funding program to facilitate the participation of the public in comprehensive studies, mediations and assessments by review panels.

A Funding Review Committee (FRC) independent of the environmental assessment (EA) was established for the Arnaud Mining Project (the Project). The EA of the Project is being conducted by means of a comprehensive study (CS). The FRC's purpose was to assess funding applications received under the PFP – Regular Funding Envelope (RFE) for the proposed project, and to provide recommendations to the President of the Canadian Environmental Assessment Agency (the Agency) on whether funding should be provided, and if so, in what amount.

Under the RFE for this project, a total of $40,000 was made available to support public participation in the EA, linked to the:

• review and comment on the Environmental Impact Statement (EIS) Summary or the EIS; and
• review and comment on the Comprehensive Study Report (CSR).

The deadline to submit an application was February 24, 2012. Eight applications were received requesting a total of $63,930.

On March 13 and 27, 2012, the FRC met to review the applications. The FRC members were: Mr. Bruce Young, retired Director of Panel Management with the Agency, acting as Committee Chairperson; Mr. Guy Demers, Senior Environmental Consultant, Formenvir; and Mr. Guy Riverin, retired Environmental Assessment Specialist, Canadian Nuclear Safety Commission.

Background

The proponent proposes to operate an apatite ore mine with a 15 to 30 year life span at a predicted extraction rate of eight million tonnes per year. The proposal is an open pit mine of a maximum depth of 115 metres to access the ore resources. The mine site is located approximately 15 kilometres west of the city of Sept-Îles, Québec.

The Project also includes crushing, ore treatment (concentrator) and loading of the apatite ore concentrate to be transported by train to the Pointe Noire sector of Sept-Îles port for shipping to Norway. A portion of an existing railway will have to be relocated. Other components of the Project include the electrical network for the treatment facility, the storage areas, the water supply, explosives storage and service building. A dewatering system to keep the pit dry will be installed with a pumping capacity of 1.4 million cubic metres of water per year.

Based on the initial analysis of the Project, the Agency anticipates that the Sept-Îles Port Authority, Fisheries and Oceans Canada and the Canadian Transportation Agency have or could have section 5 responsibilities under the Act. Considering the capacity of the dewatering system, the Project must undergo a CS according to sections 10 and 16 a) of the Comprehensive Study List Regulations.

Eligibility

Under the PFP – RFE, funding may be provided to support applicants' input to an EA with the federal government. These activities must be linked to the EA of a proposed project through a CS, mediation or review panel.

Eligible recipients must be able to demonstrate that they meet at least one of the following eligibility criteria:

• Have a direct, local interest in the Project, such as living or owning property in the project area;
• Have community knowledge or Aboriginal traditional knowledge relevant to the EA; and/or
• Have expert information relevant to the anticipated environmental effects of the Project.

All of the applicants were deemed to have met the eligibility criteria.

Under the PFP – RFE, applicants can request funding for costs related to:

• professional fees;
• staff salaries and benefits;
• travel expenses;
• honoraria for Elders and Chiefs to attend meetings and functions;
• ceremonial offerings related to receiving traditional knowledge in relation to the EA;
• administrative and reporting costs;
• local collection and/or distribution of information;
• office supplies and telephone charges;
• rental of office space and meeting rooms;
• legal fees;
• general media advertising and/or promotion;
• purchase of information material, with supporting documentation; and
• other detailed expenses.

Rationale for Allocation

In reviewing the seven applications and in reaching its conclusions and recommendations, the FRC took into consideration a number of factors, including the following:

The ability of applicants to demonstrate that they had met one or more of the eligibility criteria listed above.

• The quality, clarity and content of the application and the applicant's proposed EA participation work plan.
• The eligible activities under the PFP – RFE for the Project, which include reviewing and commenting on the EIS Summary or the EIS and the CSR.
• The extent to which the proposed activities meet the requirements of the PFP – RFE.
• Reasonable estimates for time for professional and staff support in the applicants' participation in the EA.
• The amount of funds available under the RFE for this Project.
• The maximum funding available to the applicants.

Recommendation

The FRC recommends allocating $39,992 of the available RFE funding to support seven applicants as follows:

• $5,580 to the Conseil régional de l'environnement de la Côte-Nord;
• $4,700 to Organisation bassins versants (OBV) Duplessis;
• $7,200 to the Société pour Vaincre la Pollution;
• $4,300 to Christelle Lebel, on behalf of the Regroupement pour la sauvegarde de la grande baie de Sept-Îles;
• $5,250 to the Fondation Rivières;
• $5,762 to the Comité ZIP Côte-Nord du Golfe;
• $7,200 to Nature Québec.

The FRC further recommends that any funding allocation be conditional on the applicants' providing written comments to the Agency on the EIS Summary or the EIS and the CSR.

The Funding Review Committee
Arnaud Mining Project
Regular Funding Envelope

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Bruce Young, Committee Chairperson, retired Director of Panel Management with the Agency

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Guy Demers, Senior Environmental Consultant, Formenvir

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Guy Riverin, retired Environmental Assessment Specialist, Canadian Nuclear Safety Commission

Recommended Participant Funding Allocations
Arnaud Mining Project
Regular Funding Envelope

Applicant	Total Allocation Amount Recommended
Conseil régional de l'environnement de la Côte-Nord	$5,580
Organisation bassins versants (OBV) Duplessis	$4,700
Société pour Vaincre la Pollution	$7,200
Christelle Lebel, on behalf of the Regroupement pour la sauvegarde de la grande baie de Sept-Îles	$4,300
Fondation Rivières	$5,250
Comité ZIP Côte-Nord du Golfe	$5,762
Nature Québec	$7,200
Total	$39,992