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

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

A Funding Review Committee (FRC) independent of the environmental assessment (EA) was established for the Kami Iron Ore 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 – 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 $45,000 was made available to support public participation in the EA, linked to the:

• review of and comment on the Plain Language Summary (PLS) of the Environmental Impact Statement (EIS); and
• review of and comment on the Comprehensive Study Report (CSR).

The deadline to submit an application was March 16, 2012. One application was received, requesting a total of $5,925.

On March 21, 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. Larry Coady, Environmental Assessment Consultant and Mr. Guy Demers, Environmental Assessment Consultant.

Background

The Alderon Iron Ore Corp. (the proponent) proposes to develop an open pit mine about 10 kilometres west of Labrador City, Newfoundland and Labrador, at the Kamistiatusset (Kami) property. The mine would produce up to 16 million tonnes of iron ore concentrate annually and would include waste rock disposal areas, a tailings management facility, processing and support infrastructure, and a 12-kilometre rail connection to the existing Quebec North Shore and Labrador Railway. Mined ore concentrate would be loaded into rail cars and transported to the Port of Sept-Îles, where it would be unloaded, stockpiled and transferred to vessels for delivery to customers. Modifications and additions to the rail system at Sept-Îles are also planned to facilitate unloading and handling of incoming ore concentrate.

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; 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 – 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 application and in reaching its conclusions and recommendations, the FRC took into consideration a number of factors including the following:

• the ability of the applicant to demonstrate that it 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 PLS of the EIS and the CSR;
• the extent to which the proposed activities meet the requirements of the PFP – RFE; and
• the maximum funding available to the applicant.

Recommendation

The FRC recommends allocating $4,755 of the available RFE funding to support the Conseil régional de l'environnement de la Côte-Nord's participation in the EA.

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

Funding Review Committee
Kami Iron Ore Mine Project
Regular Funding Envelope

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

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Larry Coady, Environmental Assessment Consultant

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Guy Demers, Environmental Assessment Consultant

Recommended Participant Funding Allocation
Kami Iron Ore Mine Project
Regular Funding Envelope

Applicant	Total Allocation Amount Recommended
Conseil régional de l'environnement de la Côte-Nord	$4,755
Total	$4,755