Fate of Cantung mine could rest on water licence renewal
Documents show feds and North American Tungsten Corporation Ltd. believe recently abandoned site can still be resold
April Hudson
Northern News Services
Monday, December 7, 2015
TTHENAAGO/NAHANNI BUTTE
North American Tungsten Corporation Ltd. is seeking a 10-year renewal of its abandoned Cantung mine's water licence, which currently expires in January 2016.
In a Nov. 3 letter to the Mackenzie Land and Water Board, former environmental superintendent Deborah Flemming stated 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 North American Tungsten Corporation Ltd. (NATCL) failed to elicit satisfactory bids.
Despite this, further correspondence between NATCL, the Department of Aboriginal Affairs and Northern Development Canada and the water board show the feds and corporation are not only still asking for a 10-year renewal on the abandoned mine's water licence, but they still hope it can still be resold.
On Nov. 29, the Department of Aboriginal Affairs and Northern Development Canada regional director general, Mohan Denetto, encouraged the board to approve the water licence.
"A renewed licence would make the acquisition of the site by a new operator a simpler, less costly and more attractive proposition," he wrote.
North American Tungsten has also issued its 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 sticking point for the board is clarification on who is actually responsible for Cantung. On Nov. 23, the board had asked for clarification on this matter.
"In the absence of any proof of the applicant's ability to satisfy (the clarification) the board will be unable to issue this water licence," stated Jen Potten, acting regulatory and office manager, in a letter.
Denetto's response assured 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.
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.
