TTHENAAGO/NAHANNI BUTTE
The water licence for Cantung Mine in the Nahanni area of the Northwest Territories is up for renewal at the Mackenzie Valley Land and Water Board.

North American Tungsten's Cantung Ming near the Yukon-NWT border. On Nov. 19 the GNWT announced that the Government of Canada has assumed responsibilities of the Cantung Mine and it was acquiring the NWT and Yukon mineral rights to the company's Mactung property. - photo courtesy of North American Tungsten

North American Tungsten Corporation Ltd. (NATCL) is seeking a four-month extension of the mine's licence, which currently expires in January. That, according to documents filed with the board, will allow the company to carry out a scheduled care and maintenance plan until May.

The company is also pursuing a renewal of the mine's water licence for a period of 10 years.

Cantung Mine is currently closed with a maintenance crew on site for the winter, and is considered an abandoned site.

In a Nov. 3 letter to the board, former environmental superintendent Deborah Flemming stated that a renewal would "allow for a smooth transition from an operations licence to a closure licence," and asked that the board defer its decision on the renewal until mid-December.

"Many parties involved would like to see the mine move toward re-opening in 2016, something that will be greatly influenced by whether there is an existing water licence in place," Flemming added.

However, on Nov. 18 the mine was declared abandoned and became federal jurisdiction after a sale held by NATCL failed to elicit satisfactory bids.

Five days later, the Mackenzie Valley Land and Water Board issued a request for more information - specifically, either for confirmation NATCL remains the owner of the site or evidence that a sale or "other disposition" has been made.

"In the absence of any proof of the applicant's ability to satisfy paragraph 72.03(5)(d) of the (Mackenzie Valley Resource Management Act), the Board will be unable to issue this water licence," stated Jen Potten, acting regulatory and office manager, in a letter.

The paragraph in question stipulates that the board shall not issue a licence for a federal area unless the financial responsibility of the applicant is adequate for the completion of the undertaking, any mitigative measures required and maintenance and restoration of the site in the event of a future closing or abandonment.

On Nov. 29, the federal Department of Aboriginal Affairs and Northern Development Canada regional director general Mohan Denetto filed a letter assuring the board there have been no changes in ownership at the Cantung Mine site.

"The lands remain vested in Her Majesty and remain under the administration and control of the GNWT," he stated, adding that the site is now considered a "federal area."

That means while the lands remain controlled by the territorial government, the federal government is responsible for regulating the site as well as for government-led stabilization and remediation of the site.

Denetto's letter encourages the Board to approve the water licence, adding that doing so would increase the likelihood of the site being acquired in the future by a new operator.

North American Tungsten has also issued their own letter in reply to Potten's request, stating the denial of the water licence could result in NATCL pulling its care and maintenance staff from the site.

The board had set a deadline of Nov. 30 for the additional information request.

Both Dehcho First Nations and the Nahanni Butte Dene Band have issued statements to the board regarding NATCL's application for water licence renewal.

While neither statement opposes the licence, both take issue with the 10-year term NATCL is seeking.

Nahanni Butte Dene Band regulatory advisor Christine Wenman wrote on Oct. 27 that NATCL's last licence was for five years and that the company has provided no justification for a longer licence.

"Maintaining the previous length of licence helps to ensure that the licence will remain consistent with updates in legislation, policy and best practice," she stated.

Dehcho First Nations resource management co-ordinator Dahti Tsetso supported Nahanni Butte's position.

A decision on the water licence has not yet been issued.

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