The final word on the Flathead
The Flathead River will not be affected by mining or exploration after a decision by the B.C. government to restrict development —Photo by Kali Love
Seismic activity creates the geology in which exploration and mining companies make their living. With the recent decision to restrict development in the Flathead region of southeastern B.C., the industry is trying to assess how the shockwaves from that ruling will shape future investment in Kootenay-based exploration. On February 18, Premier Gordon Campbell and Montana Governor Brian Schweitzer signed a memorandum of understanding to protect the Flathead River, a tributary of the Columbia River, by placing a moratorium on exploration, mining, coal bed methane extraction and oil and gas leasing in the area. While environmentalists are hailing the move, the ramifications to the exploration industry may be far reaching and long lasting—possible outcomes that East Kootenay MLA Bill Bennett said he was cognizant of in advocating for the moratorium. h3. A difficult decision Bennett was originally supportive of exploration and mine development in the Flathead region, but said that over the last number of years, he’s changed his position on the issue based on the wishes of his constituents and from discussions with established mining operations. “I am still as strong a supporter of the mining industry as I ever was,” said Bennett. “I believed at the end of the day there was never going to be a mine in the Flathead Valley so my choice was simple—but it wasn’t easy.” Certainly, development in the Flathead would have been an uphill battle for any company looking to develop a mine, whether it was for gold, coal or oil and gas. Because of pressure from local environmental groups, international organizations such as UNESCO and the State of Montana—not to mention the possibility of involvement from the International Joint Commission—major mining companies such as Teck and BHP Billiton had indicated to Bennett that operating in the Flathead could damage their social licence—a risk they were unwilling to take. “Some of the folks (in the mining industry) are very upset with me,” said Bennett. “But they could have gone all the way through the five- to 10-year environmental assessment process, and at the end of the day, the answer would have been no. Every dollar they spent would be gone—history.” Bennett acknowledges that the B.C. government will be responsible for compensation to companies with financial interests in the Flathead. But how that compensation will be structured is still undetermined, particularly with the question about whether out-of-pocket costs will be covered—or the loss of potential. Ross Stanfield, president of the East Kootenay Chamber of Mines, believes the decision is an enormous blow to the region’s exploration industry, and government must take steps to mitigate the damage. “They have just cut us off from another huge chunk of land,” said Stanfield, “and I think at this time it is appropriate for government to show their confidence in this region (for exploration).” Stanfield said this could be accomplished by supporting greater geoscience initiatives in the region, settling the matter of compensation as soon as possible and assuring investors that this decision was an isolated one, and not the harbinger of things to come. “I think everyone is going to be looking very critically at government decisions,” said Stanfield. h3. A message to the industry Loss of confidence in the industry is something that every exploration company feels, regardless of their connection to the Flathead. Tim Termuende, president of Eagle Plains Resources, said his company has felt the impact of the decision. He sees investors becoming wary of operating in a jurisdiction that appears prone to policy changes. “The most important thing that can happen is that the companies involved can come out of the compensation process and say they’re satisfied,” said Termuende. “From that, there may be other programs locally that the government can get behind to help other companies absorb the shock.” Termuende believes decisions like the moratorium on exploration and mine development in the Flathead are reminiscent of the Windy Craggy project, a proposed mine near the Canada-Alaska border that, when it was killed in the early ’90s, sent the industry into a decade-long slump. The similarities between the two decisions beg the question about Canada’s sovereignty when making decisions about its own industry and managing its resources, said Termuende. However, he was quick to point out that though he disagrees with the decision, he still believes Bennett to be a friend to the industry as a whole. “Mr. Bennett has proven himself to be a big supporter of the mining industry,” he said. “He has championed major initiatives such as the Highway 37 power line project and extending provincial tax incentives for mineral exploration. I’m sure the Flathead decision was very difficult for him.” Indeed, the battle for the Flathead is still ongoing, with Bennett vowing to keep the area as is—not turned into a national park that would restrict access to forestry, recreation and other traditional uses.
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