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

Allocation of Funds for Participation in the Review Panel for the Prosperity Gold/Copper Mine Project

The Participant Funding Program (PFP) is established to 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 from the federal review panel that has been established to review the Prosperity Gold/Copper Mine Project (the project), was established to review funding applications. On January 15, 2009, the FRC met to review four applications received by the PFP - AFE, requesting a total of $914,443.50 to participate in the EA process for the project. On January 19, 2009, the FRC reconvened to complete its assessment of the applications in light of additional information provided by the applicants. The FRC members were: Mr. Paul Scott, retired Regional Director of the Canadian Environmental Assessment Agency's (the Agency) Vancouver office, as Committee Chairperson; Mr. Ray Crook, Environmental Assessment Consultant; and Dr. George Kupfer, Environmental and Socio-Economic Consultant.

Background

The proposed gold and copper mine project would be constructed roughly 125 km southwest of Williams Lake, British Columbia. Development of the mine site will occur on a 35-square-kilometer parcel of Provincial Crown land currently held in the form of 118 mineral claims by Taseko Mines Ltd. The project would include a large open pit mine development with a 20-year operating life, to be developed on the site of an existing natural lake (Fish Lake). Typical large-scale open pit mining equipment and conventional copper porphyry flotation processing would be used. In addition to the mine and associated tailings and waste rock areas, the project would include the development of an onsite mill and support infrastructure, explosives factory and magazine, a 2.8-km mine access road to connect to existing logging roads and highways, and transportation of concentrate to the railhead at the existing Gibraltar Mine Concentrate Loadout Facility near Macalister, 54 km north of Williams Lake. The project also involves the construction and operation of a 125-km, 230-kV power transmission line connecting to the BC Transmission Corporation 230-kV line on the east side of the Fraser River.

On November 4, 2008, information on the availability of funds for Aboriginal groups was communicated to the identified Aboriginal groups.

Eligibility

Under the PFPAFE, funding may be provided for Aboriginal groups who plan to engage in Aboriginal consultation activities with the federal government that are linked to the EA of a proposed project through a comprehensive study, mediation or review panel. The funds can be used to support their engagement in consultation activities and their input to the EA.

The three eligibility criteria used for the public applicants are also relevant, and the applicants must demonstrate that they meet one of the following:

• have a direct, local interest in the project, such as a residence in the area or historical or cultural ties to the area likely to be affected by the project;
• have community knowledge or Aboriginal traditional knowledge relevant to the EA; or
• have expert information relevant to the anticipated environmental effects of the project.

Other sources of funding made available to or received by Aboriginal groups related to the review of the project and established partnerships are examined and considered.

All of the applicants were found to be eligible for funding.

Rationale for Allocation

The FRC found the applications generally well prepared. Although the FRC found the proposed activities of the four applicants to be legitimate and that these activities would provide valued information for the review panel, the FRC noted that some of the applications did not provide details on how some of the requested funds would be expended, and how some of the activities for which funding was sought would contribute to the review panel process.

The FRC recommended the allocation of funding amounts that it deemed reasonable in light of:

the information provided in the applications and follow-up responses;

• the information on the review process and the proposed project provided by the Agency;
• the substantial costs of preparing for and providing information to the panel review of a major mining project;
• the funds received by the applicants from other sources; and
• the federal funding available.

Recommendation

The FRC recommends an allocation of funds totalling $470,400 to the four applicants to participate in the review panel process, and in related consultation activities regarding the proposed Prosperity project.

The Participant Funding Review Committee

Prosperity Gold/Copper Mine Project
Aboriginal Funding Envelope

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Mr. Ray Crook, Environmental Assessment Consultant

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George Kupfer, Ph.D., Environmental and Socio-Economic Consultant

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Mr. Paul Scott, Committee Chairperson
Retired Regional Director of the Agency's Vancouver office

Dated: January 22, 2009

Recommended Participant Funding Allocations
Prosperity Gold/Copper Mine Project - Aboriginal Funding Envelope

Applicant	Total amount approved
Esketemc First Nation	$ 75,000
Williams Lake Indian Band	$ 41,931
Tsilhqot'in National Government	$ 300,000
Canoe Creek Indian Band	$ 53,469