In the Legislative Assembly on April 19th, 1999. See this topic in context.

Question 71-13(7): Continued Operations Of Giant Mine
Item 7: Oral Questions

Page 198

Jake Ootes

Jake Ootes Yellowknife Centre

Thank you, Mr. Speaker. I would like to address my question to the honourable Mr. Kakfwi, in relationship to my statement earlier today on the Giant Mine situation where I referenced the fact that I have tried to get a group of people together. A number of business people are interested, as well as the executive of CAW of Giant Mine in looking at the possibility of a consortium that would, down the road, be able to take over the operation of Giant Mine. This naturally would be of benefit to all, especially here in the north, if it is northern controlled, northern business people, northern employees. I wonder if the Minister could tell us, in relationship to that, what his discussions have been with the Department of Indian and Northern Affairs in regard to the continued operation of Giant Mine.

Question 71-13(7): Continued Operations Of Giant Mine
Item 7: Oral Questions

Page 198

The Speaker Samuel Gargan

The Minister of Resources, Wildlife and Economic Development, Mr. Kakfwi.

Return To Question 71-13(7): Continued Operations Of Giant Mine
Question 71-13(7): Continued Operations Of Giant Mine
Item 7: Oral Questions

Page 198

Stephen Kakfwi

Stephen Kakfwi Sahtu

Thank you, Mr. Speaker. I had a meeting with DIAND Minister, Jane Stewart, last Monday afternoon in Ottawa. We both agreed that neither government is interested in taking over ownership or in operating the mine but that we are interested in helping whatever way we can to ensure that every possible opportunity is given to the private sector to continue to, for instance, to take ownership of the mine and/or to manage and operate that mine and that both governments will do what we can to make sure that is provided for. That is the agreement we had.

We have also said that the public should be assured that there is no immediate danger in regard to the arsenic that is stored underground. The federal government is committed to do what it can to ensure that and that, at some time or other, we will provide perhaps greater clarity on exactly what, if anything, will be done to address that particular problem. Thank you.

Return To Question 71-13(7): Continued Operations Of Giant Mine
Question 71-13(7): Continued Operations Of Giant Mine
Item 7: Oral Questions

Page 198

The Speaker Samuel Gargan

Oral questions. Supplementary. Mr. Ootes.

Supplementary To Question 71-13(7): Continued Operations Of Giant Mine
Question 71-13(7): Continued Operations Of Giant Mine
Item 7: Oral Questions

Page 199

Jake Ootes

Jake Ootes Yellowknife Centre

Thank you, Mr. Speaker. I understand that the Department of Indian and Northern Affairs has certainly expressed its interest in handling the mine on a maintenance basis but not on a reclamation basis. They certainly are not committing any funds to that which is contrary to what information I had received at an earlier time. Naturally, any group taking over this particular mine would be very concerned about that end. Could the Minister tell us exactly what this government's stand is and what the federal government's stand is with regard to the environmental problem. Will they accept the responsibility for that?

Supplementary To Question 71-13(7): Continued Operations Of Giant Mine
Question 71-13(7): Continued Operations Of Giant Mine
Item 7: Oral Questions

Page 199

The Speaker Samuel Gargan

Mr. Kakfwi.

Further Return To Question 71-13(7): Continued Operations Of Giant Mine
Question 71-13(7): Continued Operations Of Giant Mine
Item 7: Oral Questions

Page 199

Stephen Kakfwi

Stephen Kakfwi Sahtu

Thank you, Mr. Speaker. It is my understanding that if there is no one left in the room claiming responsibility for that particular mine the federal government may be in a position where we would have to address that question. At this time, because there are court proceedings underway and there are still some possibilities that there may be some way for the federal government to ensure that the private sector, in one form or another, could help address the environmental liability that is currently with the Giant Mine properties, they will not make any categorical statement in assuming liability for that situation. They are prepared to work with the private sector and in the course of discussions with the private sector, maybe in the course of negotiations about potential buyers of this property. The federal government may be in a position to address the liability question in a situation like that. So they are, in short, trying to keep close counsel. They are not prepared to say categorically that the $250 million liability created by the arsenic storage is clearly and categorically a federal responsibility at this time. But they see it as their responsibility to do what they can, working with the private sector if possible, to make sure that is addressed in one form or another. Thank you.

Further Return To Question 71-13(7): Continued Operations Of Giant Mine
Question 71-13(7): Continued Operations Of Giant Mine
Item 7: Oral Questions

Page 199

The Speaker Samuel Gargan

I would like to remind the Members about issues that are in front of the courts and that what you ask or the kind of questions could lead to influencing the courts. I was not aware that the issue of Royal Oak is still in the courts. If it is, then Members are not allowed to ask any questions regarding Royal Oak until such a time as the courts have concluded their decision. Just so that I am clear, Mr. Kakfwi, is there still a court proceeding regarding Royal Oak?

Further Return To Question 71-13(7): Continued Operations Of Giant Mine
Question 71-13(7): Continued Operations Of Giant Mine
Item 7: Oral Questions

Page 199

Stephen Kakfwi

Stephen Kakfwi Sahtu

Mr. Speaker, there was a court decision on Friday that said that the properties will be put in receivership, so the courts have appointed a receiver to take care of the business of Royal Oak and what to do with the assets of Royal Oak. In that sense, it is no longer in the courts. For anything to change, a receiver would have to go back to the courts to...

Further Return To Question 71-13(7): Continued Operations Of Giant Mine
Question 71-13(7): Continued Operations Of Giant Mine
Item 7: Oral Questions

Page 199

The Speaker Samuel Gargan

Oral questions. Supplementary, Mr. Ootes.

Supplementary To Question 71-13(7): Continued Operations Of Giant Mine
Question 71-13(7): Continued Operations Of Giant Mine
Item 7: Oral Questions

Page 199

Jake Ootes

Jake Ootes Yellowknife Centre

Thank you, Mr. Speaker, thank you for your direction on that. It is in the interest of our government because of our Power Corporation, because of the many number of employees that are involved for us to do what we can. It is an investment, in my opinion, to ensure that this particular operation keeps going with the number of people, families, and indirect employment that are involved which could number 500 employees by the time we deal with the suppliers and services. My question for the Minister is, could he ensure that he dedicates some resources within his department to provide cooperation, certainly moral support, but possibly some financial resources, if feasible, to assist this potential consortium that I have been trying to help get off the ground? Thank you.

Supplementary To Question 71-13(7): Continued Operations Of Giant Mine
Question 71-13(7): Continued Operations Of Giant Mine
Item 7: Oral Questions

Page 199

The Speaker Samuel Gargan

Mr. Kakfwi.

Further Return To Question 71-13(7): Continued Operations Of Giant Mine
Question 71-13(7): Continued Operations Of Giant Mine
Item 7: Oral Questions

Page 199

Stephen Kakfwi

Stephen Kakfwi Sahtu

Mr. Speaker, we are, as a government, interested in making sure that if the mine does shut down, that the arsenic stored underground is addressed clearly and emphatically by the federal government if no one else would assume responsibility. We have said that, if possible, we would like to keep the mine operating and we will do what we can to help the private sector find a way, if it is possible, to keep it operating which may mean to politically lobby the federal government as early as possible to assume some or all of the liability for the environmental costs. We have also said that if it needs to be shut down, if the mine is no longer viable, then it should be shut down gradually to minimize the impact it would have on the economy of the city of Yellowknife, on agencies like the Power Corporation and the fiscal situation of the Government of the Northwest Territories. Thank you.

Further Return To Question 71-13(7): Continued Operations Of Giant Mine
Question 71-13(7): Continued Operations Of Giant Mine
Item 7: Oral Questions

April 18th, 1999

Page 199

The Speaker Samuel Gargan

Oral questions. Final supplementary, Mr. Ootes.

Supplementary To Question 71-13(7): Continued Operations Of Giant Mine
Question 71-13(7): Continued Operations Of Giant Mine
Item 7: Oral Questions

Page 199

Jake Ootes

Jake Ootes Yellowknife Centre

Thank you, Mr. Speaker. I think it was good the Minister clarified that we do not have an environmental responsibility in this situation and that it is the responsibility of the owners of the asset or the federal government. I appreciate that clarification, but my question, Mr. Speaker, was to see if the Minister would commit his department's attention to this matter, because in my figuring the equation of a shutdown is not there. I want to see that mine keep going. As a government, we need to, as a government, be very concerned about that and I am wondering if the Minister would address the question of providing both very strong moral support and possibly some financial or other resources to work with a potential consortium that I have identified? Thank you.

Supplementary To Question 71-13(7): Continued Operations Of Giant Mine
Question 71-13(7): Continued Operations Of Giant Mine
Item 7: Oral Questions

Page 199

The Speaker Samuel Gargan

Mr. Kakfwi, two questions.

Further Return To Question 71-13(7): Continued Operations Of Giant Mine
Question 71-13(7): Continued Operations Of Giant Mine
Item 7: Oral Questions

Page 199

Stephen Kakfwi

Stephen Kakfwi Sahtu

Thank you, Mr. Speaker. The Government of the Northwest Territories may potentially end up with the liability for cleaning up the surface lands on which the

mine is situated. The liability would be in the neighbourhood of $8 million to $10 million, which we would be quite prepared to assume if we do not get any financial assistance from the private sector to address and there is no financial assistance coming forth from Royal Oak or any of the other parties involved in this.

We are prepared to discuss with the representatives of the consortium, if there is such a consortium, that the Member has mentioned to discuss the merits of a proposal that they may be developing and it would be premature to suggest that the financial assistance would be provided. Thank you.

Further Return To Question 71-13(7): Continued Operations Of Giant Mine
Question 71-13(7): Continued Operations Of Giant Mine
Item 7: Oral Questions

Page 200

The Speaker Samuel Gargan

Oral questions. Mrs. Groenewegen.