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NUNAVUT - The company interested in looking for uranium in the western Kivalliq region is reconsidering in the wake of the regulatory obstacles from two levels of government.

Uravan Minerals applied to the federal and territorial governments for permission to look for uranium near Baker Lake in January 2008. Since then, the two governments have asked for so much preparatory studies before exploration can begin, the company may not even pursue the project and may even go to court to get some of its money back.

"These delays and uncertainties have effectively frozen Uravan's assets and sterilized its sunk cost on the Garry Lake project amounting to about $4 million ... Depending on the cost, difficulty, uncertainty and time period for completing the EIS (environmental impact statement) Review on the Garry Lake project proposal, Uravan shall seek compensation, either from government and/or other engaged third parties," reads a Uravan press release by CEO Larry Lahusen.

In January, the Nunavut Impact Review Board took the unusual step of requiring a full environmental impact statement from Uravan for its proposed exploration. Normally an environmental impact statement is only necessary after exploration, before mining can begin.

Lahusen stated the unexpected requirements have already delayed the project's 2009 schedule.

He also said the overall weakness of the global economy meant Uravan was less able to absorb the costs of such delays.

The area Uravan wants to explore is on the calving grounds of a caribou herd many scientists believe is endangered.

The Beverly herd births its calves every June 250 km northwest of Baker Lake on the edge of the Thelon Game Sanctuary. Recent field surveys suggest the herd is weaker than it has ever been.

"We've never seen anything like this," said NWT ungulate biologist Jan Adamczewski. "This is unprecedented. We are still scratching our heads trying to figure out what happened."

Adamczewski cited occasional surveys of the number of caribou sighted on the calving grounds in season. Although the numbers don't directly represent the herd population, Adamczewski said they likely represent a "serious decline" in caribou numbers.

The last actual population survey was in 1994 and estimated 276,000 animals in the Beverly herd. Adamczewski said he hopes the government of the NWT will arrange a similar survey for the summer of 2010.

Although the calving ground of the Beverly herd is in Nunavut, much of its range crosses territorial and provincial borders. When Nunavut split from the NWT, the NWT kept management of the Beverly herd. Most of the hunters on the herd are from the NWT communities of Lutsel K'e and Fort Smith.

A representative of the cross-boundary board that monitors the herd said Uravan must not in any way develop its plans for the region, given the possible impact on the already weak herd.

"Categorically, it's disturbance of the cows at the most critical part of their annual cycle," said Ross Thompson, secretary-treasurer of the Beverly-Qamanirjuaq Caribou Management Board. "They have to be moving and feeding when and where they want to and can't be disturbed because it could result in low calving rates and abortions."

Gordon Mackay, Nunavut's director of mining and exploration with the Department of Economic Development and Transportation, disagreed on the link between caribou health and mining exploration. He said there had been much more extensive exploration conducted in the region in the late 1970s and early 1980s, during which time the caribou numbers were thought to have increased.

Mackay also said the Nunavut Impact Review Board request was not complicated.

"(Uravan has) been asked to provide some more information," he said. "Whether they are going to proceed or not is entirely up to them. That's the regulatory process of Nunavut. Nunavut is recognized as one of the most attractive places in Canada and the world to explore but when there are environmental issues that need to be addressed, they need to do that."