Kerr-Sulphurets-Mitchell: ENVIRONMENTAL / REGULATORY
KSM Permitting Update
The history of mining project approvals in Canada clearly demonstrates that carefully designed projects will be approved. Every major project is reviewed independently on its technical merits and we are confident Seabridge's projects will be approved on this basis. Comparisons between major projects are difficult given the nature of the site specific characteristics associated with each proposed location, and variations in the technical designs which identify and respond to environmental concerns. What's most important to remember is that Seabridge has built a team of experts with the knowledge and experience needed to advance KSM through permitting.
Contact Us
If you have any comments about the project, please email us at community@seabridgegold.net.
For more information on our environmental and regulatory activities, please click on the following links:
Permitting Update
Major Permitting Milestones
Community Engagement & Relationships with First Nations
Areas of Cultural Significance
Archaeological Discoveries
Now and Going Forward
Key Economic Benefits
Permitting Update
Seabridge received its Section 10 Order commencing the Environmental Assessment (EA) process for KSM in April 2008, and the Section 11 Order in late 2009. The latter sets out the scope of the EA required for final permitting (the "AIR" or Application Information Requirements), the consultation requirements, and the First Nations and Treaty Nations with whom to engage. In June 2010, the Canadian Environmental Assessment Agency (CEAA) issued its "Proposed Scope of the Environmental Assessment," allowing Seabridge to continue its environmental assessment activities on schedule.
The KSM project is undergoing a Joint Provincial Application/Federal Comprehensive Study Review, which provides for a coordinated environmental assessment by Provincial and Federal authorities concurrently. The advantage of this approach is that it allows for a more collaborative effort among all interested parties in which concerns can be reconciled as they are identified. Joint provincial/federal reviews are common for large mining projects and generally result in approval.
The harmonized environmental assessment (EA) process for KSM began in 2008 and should conclude in late 2012, based on current timelines. We anticipate our EA Application and Canadian Environmental Assessment Agency (CEAA) Comprehensive Study document will be submitted by the third quarter of 2011. Once regulatory approvals are granted, construction of the mine can begin with the goal of being operational within four to five years.
As part of the environmental permitting process, Seabridge is working toward establishing funding arrangements with the Treaty and First Nations involved.
Major Permitting Milestones
| June 2006 | Seabridge initiates exploration at KSM property |
| March 2008 | Project Description is submitted and the KSM Project is registered with the EAO |
| April 2008 | Section 10 Order issued by the BC Government Initial information meetings with four First Nations and the Nisga'a Nation |
| July 2008 | Site Tour of the Proposed KSM Project with regulators |
| October 2008 | Meeting with US Regulators in Juneau, Alaska Meeting with CEAA and Federal Regulators in Vancouver |
| December 2008 | Release of Preliminary of Economic Assessment |
| April 2009 | Submission of Draft Application Information Requirements to the BC EAO |
| July 2009 | CEA Agency identified Seabridge that the proposed KSM Project was reviewable under CEAA as a comprehensive study review |
| August 2009 | Regulators Site Tour of KSM Project site |
| December 2009 | Preliminary Economic Assessment update released |
| April 2010 | Release of KSM PFS |
| June-July 2010 | Public comment period held by CEAA regarding scope of environmental assessment for the KSM Project |
| July 2010 | Public Scoping Sessions held in Smithers, Terrance, and Dease Lake regarding the Application Information Requirements (AIR) |
| January 2011 | AIR approved by BC Government |
| February 2011 | Meetings with senior regulatory officials in Ottawa, Ontario |
Community Engagement with Aboriginal and Non-Aboriginal Stakeholders
Given the potential size and economic importance of KSM for all British Columbians, the project must be done right. Community engagement, safety and wellbeing of people, stewardship of natural surroundings, and respect for its neighbours are cornerstones of Seabridge Gold's community relationships. On March 1, 2011, Seabridge opened a community office in the town of Smithers so that people interested in learning more about KSM have a place to visit and meet with Seabridge employees in person.
Seabridge began community engagement in March 2008 with the Treaty and First Nations in the area, prior to designing the project in order to determine sensitivities and expectations relating to the environmental effects and economic benefits of KSM. Over time, Seabridge has established close working relationships with three First Nations — Gitanyow, Gitxsan (including Wilp Skii Km Lax Ha), Tahltan — and the one Treaty Nation, the Nisga'a.
Over the past two years, Seabridge has held more than 40 successful community workshops, site tours, public open houses, and meetings with Aboriginal and non-Aboriginal groups and communities, and with local governments. In addition, the KSM Working Group — which has met 12 times since inception in mid-2008 — addresses environmental challenges posed by and to the project and includes representation from all our Aboriginal stakeholders. Having this participation ensures Seabridge examines concerns and develops solutions that reflect the traditional knowledge of our Aboriginal partners.
Areas of Cultural Significance
Seabridge has relied upon the traditional knowledge of the Treaty and First Nations to avoid culturally sensitive areas and, as a result of this engagement, has made significant design changes to accommodate Aboriginal Peoples' observations and concerns.
Treaty Creek is culturally significant to both the Nisga'a and the Tahltan Nations, as this creek is where their treaty was signed generations ago. Building a road along Treaty Creek Valley would have eliminated approximately 30 kilometres of travel, and offered a more direct route to the proposed tailings management facility. However, based on discussions with representatives various Aboriginal groups, Seabridge recognized both the cultural significance of the Treaty Creek Valley as well as its traditional use value. Based on this assessment, Seabridge proposed an alternative route utilizing access up the Teigen Creek Valley, a route which is contained within the current project description.
Archaeological Discoveries
Seabridge has introduced procedures to address chance archaeological discoveries at the KSM project as a matter of course during work programs. Areas of archaeological potential have been screened by a licensed archaeologist and, based on the archaeological baseline work that has been completed at the site, Seabridge has introduced designs to avoid the areas in which archaeological finds have been identified.
Now and Going Forward
Aboriginal and non-Aboriginal communities play important roles in Seabridge's exploration programs. As KSM progresses, Seabridge hopes these communities will continue in their roles as valued partners. The company is working toward establishing funding arrangements with each of the Treaty and First Nations to recognize their participation in the EA process. Seabridge also wishes to pursue the negotiation of commercially reasonable economic benefit agreements.
Economic Benefits from KSM (December 2011)
The proposed KSM mine is anticipated to have a 50 – 55 year life and will create multi-generational employment in the region.
During construction:
- An average of approximately 1,100 jobs (full-time equivalent, FTE) on site over 5 years (1,100 per year X 5 years).
- Additional supplier jobs in BC for an average of 1,330 (FTE) because of construction, and 2,340 in Canada (including BC).
- Additional induced jobs (from workers spending their incomes) of an average of 1,810 FTE across Canada, with approximately 870 of those in BC.
- Direct project spending of approximately $3.1B into the provincial economy for goods and services.
- Total GDP generated in BC by the project (direct, indirect, and induced) of approximately $2.7B, and $5.0B for all of Canada.
- Total tax revenue (federal and provincial) of approximately $492M from economic activity in BC and $918M for all of Canada.
In production:
- Approximately 930 jobs (full-time equivalent) on site once at full production.
- 1,860 supplier jobs in BC and 5,240 jobs in Canada (including BC).
- 990 induced jobs (from workers spending their incomes) in BC and 2,700 jobs in Canada (including BC).
- GDP generated in BC by the project (direct, indirect, and induced) of about $365M per year, and $895M per year for all of Canada at full production.
- Total GDP generated over the life of the project estimated at $45B for Canada.
- Total annual tax revenues (federal and provincial) of about $70M from economic activity in BC and $175M for all of Canada.
Source: DYNATEC model based on Statistics Canada’s Input-Output Model of the economies of Canada and the provinces using Seabridge estimates of direct project employment and expenditures.
Multi-generational mine-life: 37 – 55 years
