Grant to support the Giant Mine oversight board and research for arsenic trioxide

On this page

  1. Introduction
  2. Legal and policy authority
  3. Purpose, program objectives and expected results
  4. Eligibility
  5. Type and nature of eligible initiatives
  6. Type and nature of eligible expenditures
  7. Total Canadian government funding and stacking limits
  8. Method for determining the amount of funding
  9. Maximum amount payable
  10. Basis on which payments will be made
  11. Application requirements and assessment criteria
  12. Due diligence and reporting
  13. Official languages
  14. Intellectual property

1. Introduction

Context

The mandate of Indigenous and Northern Affairs Canada (INAC) with respect to the development and use of natural resources in Canada's three northern territories is very broad and involves the delivery of a number of programs and services including the management of land and water, as well as mineral, oil and gas resources in Nunavut and northern offshore, the protection of the northern environment, and taking a leadership role in global issues that impact the North, such as climate change and the long-range transport of pollutants into the Arctic. The experience and expertise of Northern Affairs staff has resulted in the Northern Affairs Organization (NAO) assuming an expanded delivery role for both the northern and First Nation/Inuit components of the department's activities related to the northern contaminants program, climate change, energy programs and the implementation of INAC sustainable development initiatives.

One such initiative is the remediation of abandoned mine sites such as the Giant Mine in Yellowknife, Northwest Territories. INAC was given responsibility for overall management of the Giant Mine in 1999.

The Giant Mine Remediation Project underwent an intensive Environmental Assessment process between 2007 and 2014, under the authority of the Mackenzie Valley Resource Management Act. Arising from the Environmental Assessment in INAC and the Government of Northwest Territories were required to negotiate a legally binding environmental agreement to establish an independent Oversight Board for Giant Mine. The Oversight Board is made up of one representative from each signatory (Government of Canada, Government of NWT, Yellowknife Dene First Nation, City of Yellowknife, Alternatives North and North Slave Metis Alliance).

2. Legal and policy authority

Department of Indian Affairs and Northern Development Act, R.S.C., 1985, c. I-6, s. 4, s. 6(2).

3. Purpose, program objectives and expected results

The purpose of the Giant Mine Remediation Project is to minimize health and safety and environmental risks at the site in accordance with legal obligations, and reduce Canada's associated liability due to the presence of contamination at the site. The greatest overall risk at the site is the 237,000 tons of arsenic trioxide dust stored underground.

The objective of the Oversight Board is to administer and fund research to work towards finding a permanent solution for dealing with the arsenic trioxide at Giant Mine.

For its first two years of operation 2015-2017, INAC has funded the Oversight Board through a set contribution agreement. This current arrangement does not provide the flexibility that was envisioned; in particular the options to carry-over and re-allocate funds are not permitted.

The activities undertaken by the Oversight Board will contribute to the results presented in INAC's draft Departmental Results Framework. Within the framework, the Project falls under the Community and Regional Development Core Responsibility and helps to meet specific Department Result "lands and resources in Indigenous communities and the North are sustainably managed."

The Oversight Board activities will also help INAC to meet the following outcomes identified in the Giant Mine Remediation Project Performance Information Profile that was developed for the Project in 2017:

4. Eligibility

The Giant Mine Oversight Board is the only eligible recipient of grant funding under this authority.

5. Type and nature of eligible initiatives

In order to facilitate active research toward a permanent solution for dealing with arsenic at the Giant Mine site, the Oversight Board shall, on a periodic basis, ensure that:

In conducting all of its activities within its approved mandate, the Oversight Board shall:

6. Type and nature of eligible expenditures

Eligible expenditures, which are, in the opinion of the Department, reasonable, consistent with program or funding guidelines and departmental policies, and necessary for the recipient to carry out approved activities as per the Environmental Agreement may include the following costs:

7. Total Canadian government funding and stacking limits

Government of Canada, Territories, and Municipalities assistance for the same purpose and eligible expenditures shall not exceed 100 percent of total eligible expenditures.

Total Government of Canada assistance for grants for the same purpose and eligible expenditures shall not exceed 100 percent of total eligible expenditures.

8. Method for determining the amount of funding

The amount of funding is set by the terms of the Environmental Agreement.

9. Maximum amount payable

9.1 General operations funding

  • The Oversight Board's General Operations budget allocations are for each fiscal year until this Agreement is terminated in accordance with section 16.2, $650,000 in constant 2015 dollars, adjusted against the Consumer Price Index for Yellowknife published by Statistics Canada.
  • For the fiscal year 2018-2019, in addition to the amount in 5.1 (a) the Oversight Board's funding allocation will be $479,842 to include unspent funds from fiscal years 2015-2016 and 2016-2017, and any unspent funds from 2017-2018.

9.2 Research program funding

The Oversight Board's Research Program budget allocations are set out in the following table:

Research Funding
Fiscal Year Allocation
2018 – 2019 $175,000*
Thereafter for each fiscal year until this Agreement is terminated in accordance with section 16.2 $250,000*
* Constant 2015 dollars, adjusted against the Consumer Price Index for Yellowknife published by Statistics Canada.

10. Basis on which payments will be made

Grants are a one-time payment per year, on or after April 1.

11. Application requirements and assessment criteria

The Oversight Board will confirm continued eligibility to the grant by confirming compliance with the requirements of applicable funding agreements, including the submission of regular progress reports.

12. Due diligence and reporting

INAC has in place departmental systems, procedures and resources for ensuring due diligence in approving these transfer payments, verifying eligibility and entitlement, and for the management and administration of these programs. Oversight Board reporting as per the Environmental Agreement:

13. Official languages

The Department will ensure that the design and the delivery of programs respect the obligations of the Government of Canada as set out in Part VII of the Official Languages Act.

14. Intellectual property

Where a grant is provided for the development of material in which copyright subsists, conditions for shared rights will be set out in the funding agreement.

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