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

Allocation of Federal Funds for the Environmental Assessment of the Arnaud 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 Arnaud 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 $37,000 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 Summary or the EIS; and
• review and comment on the Comprehensive Study Report (CSR).

The deadline to submit an application was January 18, 2012. One application was received requesting a total of $58,575.

On January 23, 2012, the FRC met to review the application. 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 8 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 meter 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 Canadian Environmental Assessment 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.

Provincial EA requirements will apply to the proposed project.

This project is a major natural resources project involving the Major Project 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 on 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.

The applicant was 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 one application 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 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 eligible activities under the PFP – AFE for the Project, which include review and comment on the EIS Guidelines, the EIS Summary or the EIS and the CSR;
• the extent to which the proposed activities meet the requirements of the PFP – AFE; and,
• the maximum funding available to the applicant.

Recommendation

The FRC recommends allocating $23,200 of the available AFE funding to the Innu Takuaikan Uashat mak Mani-Utenam, the sole applicant.

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

The Funding Review Committee
Arnaud Mine Project
Aboriginal Funding Envelope

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

________________________________________________________
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 Mine Project
Aboriginal Funding Envelope

Applicant	Total Allocation Amount Recommended
Innu Takuaikan Uashat mak Mani-Utenam	$23,200
TOTAL	$23,200