Canwest News Service

Imperial Metals' Red Chris mine project can proceed without a full-blown federal environmental study, but future Canadian resource and infrastructure projects will not be so fortunate.

The Supreme Court of Canada on Thursday accepted a contention by MiningWatch Canada that federal regulators erred when they failed to subject Red Chris to a full review under the Canadian Environmental Assessment Authority (CEAA) following its review and approval by the B.C. government.

The court said Imperial can proceed with Red Chris, subject to a review in which the public is invited to comment on the project, because it "did nothing wrong" and would be "prejudiced by incurring further delays" on a project that has been on the books since the early 1990s.

However, in a ruling that affects dozens of other projects under federal review — including mines, highways and pipelines — the court said so-called "responsible authorities" including the Department of Fisheries and Oceans, Environment Canada and Natural Resources Canada must undertake comprehensive reviews of all projects that qualify for CEAA scrutiny.

In reviewing Red Chris, federal agencies chose to limit their consideration to a proposed tailings pond and an explosives storage facility, while overlooking the project's mine and mill.

"It's a victory for Red Chris, arguably a loss for the industry and I would say Canada because the court did say the responsible authorities aren't allowed to [undertake an abbreviated process]," Imperial Metals president Bryan Kynoch said in a telephone interview.

Red Chris is a world-class copper-gold property that will be developed as an open-pit mine in northwestern B.C.

Environmental groups including MiningWatch Canada and Ecojustice continue to express concerns about the project, particularly a plan to use a nearby lake as a tailings pond to dispose of mill effluent.

The groups won on the larger point of their appeal, which was to seek a court ruling that federal regulators must fully review projects rather than focus on narrow aspects of them.

The ruling also means Ottawa must consult with the public.

"The same [narrow] approach has been taken by the federal government for literally dozens of types of projects across the country, from transmission lines to pipelines," Ecojustice legal counsel Lara Tessaro said. "I think we've seen an end to that approach, and it is going to require the federal government to actually coordinate a lot more with the province."

Jamie Kneen, MiningWatch communications coordinator, said the Supreme Court stated there are already in place coordination mechanisms that allow provincial and federal regulators to avoid duplicating their reviews.

"It means that large industrial projects will be assessed as such, not as a fisheries permit here and an explosives permit there. And the public will have, through the legal requirements, an opportunity to participate in this," Kneen said.

Alain Belle-Isle, spokesman for the fisheries department, said it was studying the decision and had no immediate comment.

A number of B.C. mining projects are facing larger workloads, but Mining Association of B.C. president Pierre Gratton thinks the ultimate outcome will be more federal-provincial cooperation on project reviews.

"They will have to do comprehensive studies on everything. So it's huge," Gratton said. "But at the same time, it's encouraging because when the courts speaks, the feds listen. The court specifically says that governments can and should work together collaboratively and look to minimize duplication."

Gavin Dirom, president and CEO of the Association of Mineral Exploration BC, noted that it was the process, not the scientific work undertaken for Red Chris, that was challenged.

"This ruling provides greater certainty for our members, for the investment community," he said.

B.C. Minister of State for Mining Randy Hawes said the fact that Red Chris is proceeding "is pretty good news."

"I think that as we continue to work with the federal government, and form our partnerships with the federal government, we are going to get there and we are going to see the streamlining happen."

ssimpson@vancouversun.com