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

Allocation of Federal Funds for the Environmental Assessment of the Kami Iron Ore 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 Kami Iron Ore 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 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.

The FRC was advised by the Agency that the PFP has recently been updated to provide greater consistency and clarity during the review of applications and the processes for allocation of funds.

Under the AFE for this project, a total of $107,600 was made available to support Aboriginal participation in the EA, and related consultation and community engagement activities, linked to:

• review and comment on the Environmental Impact Statement (EIS) Guidelines;
• review and comment on a summary of the EIS submitted by the proponent; and
• review and comment on the Comprehensive Study Report (CSR) prepared by the Agency.

The deadline to submit an application was December 21, 2011. Four applications were received requesting a total of $120,065.

On January 10, 2012, the FRC met to review the applications. The FRC members were Bruce Young, retired Director of Panel Management with the Agency, acting as Committee Chairperson; Larry Coady, Environmental Assessment Consultant; and Guy Demers, Environmental Assessment Consultant.

Background

The Alderon Iron Ore Corp. (the proponent) proposes to develop an open pit mine at the Kamistiatusset (Kami) property and extract up to 16 million tonnes of ore annually (44,000 tonnes per day). The Project would include a mill and concentrator on site, a twelve kilometre rail connection to the Quebec North Shore & Labrador Railway (owned by the Iron Ore Company of Canada), sub-aerial tailings disposal, a laydown area in the port of Sept-Îles, Quebec and modifications to rail line interchanges in Sept-Îles.

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 historical or cultural ties to the area likely to be affected by the proposed project;
• Have community knowledge or Aboriginal traditional knowledge relevant to the EA; and/or
• Have expert information relevant to the anticipated environmental effects of the proposed 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;
• local collection and distribution of information;
• travel expenses;
• rental of office space and meeting rooms;
• office supplies and telephone charges;
• administrative and reporting costs;
• other expenses related to local collection and distribution of information;
• legal fees;
• purchase of relevant information material, with supporting information;
• general media advertising and promotion; and
• other detailed expenses, with supporting information.

Rationale for Allocation

In reviewing the four applications received, 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 have 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 EA;
• the maximum funding available to the applicant;
• The ability of the applicant to represent the interests of First Nation communities that might be impacted by the Project;
• Presence/absence of specific project components within the traditional lands of First Nations represented by the applicant;
• Project impacts on traditional lands and resources, and on the related interests and asserted rights and title of the First Nations represented by the applicant;
• The extent to which the proposed activities meet the requirements of the PFP – AFE; and
• The eligible activities under the PFP - AFE for the Project, which include:
  • reviewing and commenting on the EIS Guidelines;
  • reviewing and commenting on a summary of the EIS; and
  • reviewing and commenting on the CSR.

Recommendation

The FRC recommends allocating $81,190 of the available PFP - AFE funding to support four applicants as follows:

• $21,450 to Innu Nation;
• $20,950 to NunatuKavut ;
• $17,990 to Naskapi Nation of Kawawachikamach; and
• $20,800 to Innu Takuaikan Uashat mak Mani-Utenam.

The FRC further recommends that a condition of any funding allocation be that the applicants provide input to the EA through comments to the Agency on the EIS Guidelines, the summary of the EIS and the CSR.

The Funding Review Committee
Kami Iron Ore Project
Aboriginal Funding Envelope

______________________________________________________
Bruce Young, retired Director of Panel Management with the Agency

______________________________________________________
Larry Coady, Environmental Assessment Consultant

______________________________________________________
Guy Demers, Environmental Assessment Consultant

Recommended Participant Funding Allocations
Kami Iron Ore Project
Aboriginal Funding Envelope

Applicant	Total Recommended Allocation Amount
Innu Nation	$21,450
NunatuKavut	$20,950
Naskapi Nation of Kawawachikamach	$17,990
Innu Takuaikan Uashat mak Mani-Utenam	$20,800
Total:	$81,190