Participant Funding Program – Aboriginal Funding Envelope
Funding Review Committee’s Report

Allocation of Federal Funds for the Environmental Assessment of the BlackRock 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. The PFP also includes an Aboriginal Funding Envelope (AFE) to strengthen the ability of Aboriginal groups to participate in federal or joint federal–provincial environmental assessment (EA) processes and in related consultation activities.

A Funding Review Committee (FRC) independent of the EA was established for the BlackRock Mining Project (the Project), which is being conducted by means of a comprehensive study (CS). Its purpose was to assess the funding applications received under the PFP – AFE for the 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 AFE for this project, a total of $70,000 was made available to support Aboriginal participation and related consultation activities in the EA, including:

• Reviewing and commenting on the Environmental Impact Statement (EIS) submitted by BlackRock Metals Inc. (the proponent);
• Reviewing and commenting on the Comprehensive Study Report (CSR); and
• Preparing for and participating in internal community meetings to consider the proposed project.

The deadline to submit an application was July 11, 2011. Three applications were received for a total funding request of $140,300.

On July 21, August 5, and September 13, 2011, 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. Paul Charest, Retired Professor, Université Laval.

Prior to the FRC’s deliberations on the applications, the Crown Consultation Coordinator for the Agency provided information on the Project and outlined the expected steps in the EA process.

Background

The Project is located on James Bay and Northern Quebec Agreement (JBNQA) territory, 30 kilometres (km) southeast of Chibougamau. It involves the mining of an iron, titanium and vanadium deposit. The mining area would be about 2.5 km long and 100 to 400 metres (m) wide. The mineralized area would be mined to a depth of 200 m.

The material would be drilled, blasted, loaded into trucks by power shovels, and trucked to the mill, where it would be coarsely and then finely crushed and magnetically separated in multiple steps using electromagnets to produce a magnetite concentrate.

The expected production rate during the first year is about 20,000 tonnes per day (t/d) of raw ore, with the proponent planning to increase production to 50,000 t/d over a period of two to three years.

The mill would be built at the edge of the mineralized zone in an area no larger than 200 by 150 m.

Concentrate would be trucked to the existing rail line at Chibougamau and transported by rail to the Port of Quebec. The Project also includes a 25-km access road and a power line. The concentrate would then be sent to the Beauport terminal of the Port of Quebec and loaded on cargo ships bound for Asia.

The proponent plans to submit its impact statement in the fall of 2011 and start construction in the summer of 2012, with concentrate production beginning by late 2012.

On the basis of information received from the proponent and in accordance with section 11.01 of the Act, the Agency is initiating a CS of the Project since the following federal departments may issue authorizations under the Law List Regulations:

• Department of Fisheries and Oceans (DFO) under section 32 and subsection 35(2) of the Fisheries Act; and
• Natural Resources Canada (NRCan) under paragraph 7(1)(a) of the Explosives Act.

This project is described in the comprehensive study list under subsection 16(a) of the Comprehensive Study List Regulations, which states: “The proposed construction, decommissioning or abandonment of a metal mine, other than a gold mine, with an ore production capacity of 3,000 t/d or more”.

In addition, it is a major resource project requiring the involvement of the Major Projects Management Office.

Eligibility

Under the PFP – AFE, funding may be provided to Aboriginal applicants to support their input to an EA and/or to support their engagement in consultation activities 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 plan to engage in Aboriginal consultation activities with the federal government that are linked to the EA of the proposed project and be able to demonstrate that they meet at least one of the following eligibility criteria:

• have a direct, local interest in the proposed project, such as living or owning property in the project area;
• have community knowledge or Aboriginal traditional knowledge relevant to the EA; 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 – AFE, 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 two applications and in reaching its conclusions and recommendations, the FRC took into consideration a number of factors including the following:

• Whether Aboriginal groups could demonstrate that they plan to engage in Aboriginal consultation activities with the federal government that are linked to the EA of the proposed project;
• The ability of the Aboriginal groups to demonstrate that they had met one or more of the eligibility criteria listed above;
• The quality, clarity and content of the applications, particularly with respect to the relationship between specific project components and the applicant’s traditional lands and resources, and the applicant’s proposed EA participation work plan;
• Advice received from the Agency regarding which Aboriginal groups are expected to be participants in the EA, and the role that these groups may play in the review;
• The eligible activities under the PFP – AFE for the Project, which include reviewing and commenting on the EIS, submitted by the project proponent, reviewing and commenting on the CSR, and preparing for and participating in internal community meetings to consider the proposed project; and
• The amount of funds available under the AFE for this project.

Recommendation

The FRC recommends allocating $70,000, the total available AFE funding, to support the three applicants as follows:

• $36,625 to the Oujé-Bougoumou Cree Nation;
• $20,700 to the Cree Nation of Mistissini; and
• $12,675 to the Conseil des Montagnais du Lac-Saint-Jean.

The FRC strongly recommends that the Oujé-Bougoumou Cree Nation and the Cree Nation of Mistissini closely collaborate in participating in this EA to share information, comments and results.

The FRC further recommends that any funding allocation be conditional on a provision of written comments, by the applicants, to the Agency on the EIS and the CSR.

The Participant Funding Review Committee
BlackRock Mining Project
Aboriginal 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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Paul Charest, Retired Professor, Université Laval

Recommended Participant Funding Allocations
BlackRock Mining Project
Aboriginal Funding Envelope

Applicant	Total Allocation Amount Recommended
Oujé-Bougoumou Cree Nation	$36,625
Cree Nation of Mistissini	$20,700
Conseil des Montagnais du Lac-Saint-Jean	$12,675
TOTAL	$70,000