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

Allocation of Federal Funds for the Environmental Assessment of the Hammond Reef Gold Mine 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 Hammond Reef Gold Mine 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 – AFE 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 AFE for this project, a total of $165,000 was made available to support Aboriginal participation in the EA, and related consultation and community engagement activities linked to the:

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

The deadline to submit an application was September 22, 2011. Six applications were received requesting a total of $363,295.56.

On October 7 and November 21, 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 FRC Chairperson; Mr. Patrick Duxbury, Environmental Assessment Consultant; and Ms. Patricia Larkin, Environmental Health Consultant.

Background

Osisko Hammond Reef Gold Ltd. (the proponent) proposes to develop an open pit gold mine, located approximately 23 km northeast from the Town of Atikokan. The operation of the proposed mine would take approximately 14 years with a rate of production of approximately 50,000 tonnes per day.

On July 28, 2011, the EA commenced as a CS. An EA is required in relation to this project because Fisheries and Oceans Canada, Transport Canada and Natural Resources Canada identified themselves as having section 5 responsibilities under the Canadian Environmental Assessment Act. The Project, as proposed by the proponent, is also listed on the Comprehensive Study List Regulations: a gold mine, other than a placer mine, with an ore production capacity of 600 tonnes per day or more [ss 16 (c)].

The Agency is responsible for exercising the powers, and performing the duties and functions of the responsible authorities until a CSR is submitted to the Minister of the Environment. Procedures of the Major Projects Management Office are being implemented. As the Crown Consultation Coordinator, the Agency continues to engage and consult with the potentially affected Aboriginal groups. As the Project is also undergoing an individual EA under the Ontario Environmental Assessment Act, the Agency intends to coordinate the federal and provincial EA processes and Aboriginal consultation activities, to the extent possible, with the proponent, the Ontario Ministry of the Environment as well as the Ontario Ministry of Northern, Development and Mines who leads the provincial one window coordination process for mineral developments.

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 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, however, based on the Agency's proposed consultation activities, the FRC recommends that one of the applicants from the AFE be considered for funding under the Regular Funding Envelope.

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 five 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 application, 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 engaging in Aboriginal consultation activities with the federal government that are linked to the EA of the proposed project, and reviewing and commenting on the EIS Guidelines, the EIS and the CSR;
• the recommended funding allocation framework developed by the Agency, including amounts, based on the activities related to the consultation opportunities offered, the expected deliverables and the diversity of issues likely to be involved in the EA; and
• information provided to the FRC by Agency staff concerning the proximity of the Project, and its potential impacts, to the traditional lands asserted by the various applicants.

Recommendation

The FRC based allocations on the recommended funding levels provided to the FRC by the Agency for the activities proposed to be undertaken in the proposed consultation work plan.

The FRC recommends allocating $110,650 of the available AFE funding to support the five applicants as follows:

• $28,200 to Métis Nation of Ontario Secretariat, on behalf of the Atikokan and Surrounding Area Interim Métis Council, the Northwest Métis Nation of Ontario Council, the Sunset County Métis Council and the Kenora Métis Council;
• $28,200 to Lac Des Mille Lacs First Nation;
• $28,200 to Seine River First Nation
• $18,050 to Mitaanjigamiing First Nation; and
• $8,000 to Rainy River First Nations.

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 Guidelines, the EIS, and the CSR.

The Funding Review Committee
Hammond Reef Gold Mine Project
Aboriginal Funding Envelope

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

________________________________________________________
Patrick Duxbury, Environmental Assessment Consultant

________________________________________________________
Patricia Larkin, Environmental Health Specialist

Recommended Participant Funding Allocations
Hammond Reef Gold Mine Project
Aboriginal Funding Envelope

Applicant	Total Allocation Amount Recommended
Métis Nation of Ontario Secretariat, on behalf of the Atikokan and Surrounding Area Interim Métis Council, the Northwest Métis Nation of Ontario Council, the Sunset County Métis Council and the Kenora Métis Council	$28,200
Lac Des Mille Lacs First Nation	$28,200
Seine River First Nation	$28,200
Mitaanjigamiing First Nation	$18,050
Rainy River First Nation	$8,000
TOTAL	$110,650