Thank you, Mr. Speaker. My questions are for the Minister of Lands, and I’d like to start by asking about recent news stories which have talked about layoffs at Cantung Mine. Cantung has recently cut their operating expenses and are considered by some to be in marginal operation at best. So I’m wondering if the Minister can give me a general update on the current status and fiscal viability of Cantung Mine. Mahsi.
Thank you, Mr. Bromley. Mr. McLeod.
Thank you, Mr. Speaker. As for the fiscal viability, I’m in no position to answer that. That would be a question that they would have to answer. I do know that they do have an application before the ENR, a water licence application for the ENR Minister and I can find out the update and status of where that’s at. Thank you.
Thank you. I’d say it would be important for this Minister to be on top of the viability of these mines because, of course, they’re the ones responsible for their cleanup and this Minister is responsible for ensuring that the liabilities are covered.
As we all know, mines failing and leaving huge environmental liabilities and costs to taxpayers behind are nothing new.
So my question is: What is the current status of Cantung’s security deposit for environmental liability?
I know that the Mackenzie Valley Land and Water Board, I think, had set their security at $30 million, and that was, I think, $27 million and $30 million was to be paid 90 days after the granting of the water licence. My understanding is, I think, the water licence is still in the process and I will find out as to the status of that from my counterpart over at ENR. Thank you.
Of course, we do have an entire division within the Department of Lands that is supposedly on top of liabilities.
In our fall session I was shocked to hear that the total shortfall of security deposits held by this government on behalf of mining interests was $176 million.
Can the Minister give me an update on the status of security deposits that are currently being held and what shortfalls there are now? Mahsi.
I believe I said in the fall that we had over $500 million that we are holding in security. As far as the shortfall, again, I will get that number and relay it to the Member. Thank you.
Thank you, Mr. McLeod. Final, short supplementary, Mr. Bromley.
Thank you, Mr. Speaker. Thanks to the Minister. I’ll look forward to that. Despite NEB’s rejection of surety bonds as acceptable surety against environmental liabilities, instead requiring irrevocable letters of credit, this government allows this form of security for mining operations after devolution.
What are the government’s plans for the form of financial instruments acceptable for risky environmental liabilities in the new fracking regulations? Mahsi.
Surety bonds are an accepted form of security for many projects that are going on. Again, I think in the short time that we’ve had this responsibility we’ve done some work. The Member is correct; we do have a division that’s dedicated to this, and we will continue to do our due process and make sure that any work that does go on is adequately covered and that way we have the opportunity to do the remediation if need be. Thank you.
Thank you, Mr. McLeod. Member for Yellowknife Centre, Mr. Hawkins.
