Areva begs to differ on Kiggavik recommendation

Areva Resources Canada has formally expressed its disagreement with a Nunavut Impact Review Board (NIRB) recommendation not to grant environmental approval for the proposed Kiggavik uranium project pending a more certain start date. 

The NIRB's recommendation that uranium mining at Kiggavik should not proceed at the present time but may be considered in the future is currently before federal minister of aboriginal affairs and northern development Bernard Valcourt. The minister must make a decision to accept, reject or return the May 2015 report to the NIRB for further consideration.

In its report, the NIRB cited Areva Resources Canada's inability to provide a definite start date for the project. The environmental regulator for the Nunavut region made it clear that its intention was not for the project not to proceed at any time, and suggested that the proposal be resubmitted at a later date when the project's start date is more certain. Areva Resources Canada contends that the lack of a firm start date alone should not prevent the approval of the project, and that the issue can be addressed by attaching appropriate terms and conditions in the project approval.

Areva Resources Canada CEO Vincent Martin has now written to Valcourt on behalf of the company and project partners JCU Canada Exploration and Daewoo, expressing their disappointment at the recommendation and asking the minister not to accept the report as written. Instead, the company is requesting that the minister returns the report to the NIRB to consider amending it to include the necessary terms and conditions so that it can be approved.

The company pointed out that the environmental assessment for Kiggaviktook place over eight years and included thorough and extensive engagement with stakeholders and interested parties following the process outlined in the Nunavut Land Claims Agreement. Martin told the minister that the companies' view, that there were no unresolvable project-specific environmental issues affecting the proposal, was supported by the concluding statements of all the federal departments that participated in the review.

Kiggavik has 48,953 tU of indicated uranium resources at an ore grade of 0.554%. The proposed mining and milling operation would take about four years to construct and operate for around 14 years, with four uranium deposits mined using open pits and one deposit using underground methods. The operation would be co-owned by Areva (62.8%), JCU Canada Exploration (33.5%) and Daewoo Corporation (1.7%), and operated by Areva. However, Areva has openly acknowledged that current market conditions do not favour a construction decision at the moment.

In his letter to Valcourt, Martin pointed out such start date uncertainty is not unique to the Kiggavik project. He drew attention to the Hope Bay gold project in Nunavut and the Kintyre uranium project in Western Australia as examples of projects where uncertainty over start dates had not stood in the way of the environmental approval (EA) process.

Areva Resources Canada said: "Obtaining EA approval for projects in advance of a certain development date enables companies to capitalize on favourable market conditions when they exist. Having the EA approval in hand shortens the post-EA regulatory process to licensing and allows a project to proceed to development and operation in a more timely fashion. If the Minister rejects the recommendation and approval is received, the Kiggavik project will be more likely to receive approval from shareholders to proceed to development when market conditions are favourable. Ultimately, we are not the decision-makers but we are asserting that the environmental assessment for the Kiggavik project is sound and the approval should therefore be provided."

Researched and written
by World Nuclear News