21 June 1996
Honourable Sergio Marchi
Minister of Environment
House of Commons
Ottawa, ON
KIA OA6

Dear Minister Marchi:

Re: EARP panel recommendations on BHP Diamonds project

On June 21, the Canadian Arctic Resources Committee circulated to you our critique of the environmental assessment process, as we observed it during the review of the BHP Diamonds project in the Northwest Territories. We have now completed our review of the Environmental Assessment Review Panel's report. The recommendations made by this panel reflect the flawed process used for this assessment.

The recommendations are generally vague, and often defer action on critical issues to the future or other processes The panel discussed issues raised during the hearings but failed to make recommendations in such crucial areas as:

-- sustainable development and cumulative effects;

-- closure and reclamation;

-- alternatives to the project or alternative methods of carrying out the project;

-- wilderness and protected areas; and

-- impacts on traditional resource harvesting activities

CARC makes the following recommendations for terms and conditions on the BHP project. Detailed briefing notes on the rationale for these recommendations are attached to this letter.

THAT BHP be required to post bonds for reclamation and clean-up.

THAT production and operational costs be publicly reported.

THAT the draft surface lease be released by DIAND and the proponent with an appropriate review period for public comment.

THAT Impact and Benefft Agreements with affected aboriginal groups be completed prior to project construction and operation. This may mean obtaining the consent of the Dene, Metis and Inuit for the project to proceed, or a process of binding arbitration for IBAs within predetermined time frames.

THAT an independent project monitoring committee be established with representation from the major stakeholders to oversee all project monitoring by BHP and the government, including environmental and socio-economic effects.

THAT the project monitoring committee be embedded in the terms of regulatory approvals issued for this project including the surface lease and water licence.

THAT, as a condition of the surface lease, BHP be required to fund all the research associated with effects monitoring on its claims block.

In addition, over a longer term, we recommend:

THAT greater effort and resources be devoted by the federal government towards a fair and just settlement of Dene claims in the region. Federal land claims policy re: land selection and interim protection should be reviewed, in the light of evident inequities.


THAT governments review the West Kitikmeot-Slave Study after six months, to determine if the study is able to follow up on recommendations directed to it by the panel.

THAT the economic rent regime for minerals in northern Canada be reformed to include a "Sustainability Fund" for community and regional-based research and more sustainable economic development initiatives.

THAT procedures for public reviews under the new Canadian Environmental Assessment Act be reformed, to ensure that the procedural problems we noted with this review are not perpetuated under the new Act. (Our critique of the public review process was distributed to you on 21 June.)