An Environmental Impact Assessment Is Now Required
The Record Ridge Magnesium Project is nearing the completion of a multi-year permitting process led by the British Columbia Mine Development Review Committee, with extensive involvement from regulatory agencies, local governments, Indigenous peoples, and the public. The project has been advancing for years with the Environmental Assessment Office’s knowledge as an industrial minerals project.
To the surprise of West High Yield Resources, the Environmental Agency apparently no longer wants to recognize the Record Ridge project as an industrial minerals project, but rather treat it as a classic mining project. As a consequence, the EAO is now requiring WHY Resources to conduct an environmental impact assessment for the planned production volume of 200,000 tpa. This environmental impact assessment would have been unnecessary for an industrial minerals project of this size, as the threshold for assessment is exactly at the 200,000 tpa that WHY had applied for. However, the agency’s decision leaves WHY with a path forward: If WHY Resources were to operate the project as a “classic mining project” with an annual production of <75,000 tpa, the environmental impact assessment could be waived. This is because the threshold for projects in this category is <75,000 tpa. However, carrying out this assessment would require cooperation with the EAO office. Fortunately, most of the work for the EAO process has already been completed and submitted, which would expedite the process.
As reported by WHY Resources, the EAO contacted the company immediately before publishing the classification online to verbally inform them that an environmental impact assessment would not be required if the project reduced its production to less than 75,000 tons per year. The agency offered to engage in dialogue with other interested ministries to discuss the possibility of expediting approval for a smaller project.
“While this is not a development we expected or desired, a smaller initial size may ultimately help ensure broad community support, and we can consider expansions in the future in accordance with applicable laws,” Mr. Marasco Jr. added.
Conclusion: The outrage over the Environmental Protection Agency’s decision is clearly evident from WHY Resources’ statement, and it is understandable. But in the end, things are never as bad as they seem. There is much to be said for a pragmatic solution where everyone saves face. After all, it is probably more important for the company that its critical mineral magnesium/silica/nickel project is finally approved after many years, rather than having its maximum demands met. At least a compromise seems to be emerging in this direction. The project promises to be highly profitable even in a smaller form. With approval, WHY Resources should also be able to obtain commercial financing for reduced production. Later, when production is running and money is flowing into the company’s coffers, it will still be possible to negotiate an expansion of the project with larger quantities and go through the EA process. This is likely one of the reasons why WHY Resources does not want to forego any legal options at this time.
