By Emily Blake in Yellowknife
With a cost estimate of $4.38 billion, remediation of the Giant Mine, one of the most contaminated sites in Canada, is also expected to be the most expensive federal environmental cleanup in the country’s history.
The figure, recently approved by the Treasury Board of Canada, spans costs from 2005 until 2038, when active remediation at the former Yellowknife gold mine is anticipated to end. That includes $710 million the federal government said has already been spent, but does not include costs for long-term care and maintenance.
“It doesn’t bother me so much that it’s going to cost $4 billion to clean up Giant Mine. What really bothers me is that the taxpayer is covering that cost,” said David Livingstone, chair of the Giant Mine Oversight Board.
It indicates the federal government failed to ensure private developers provided financial security to remediate sites. He said while that has improved over time, there will likely be more issues in the future.
“We as a society need to get a better handle on what it costs us to support mining industry and oil and gas industry,” he said. “If the numbers suggest that it’s going to cost more to clean up a site than that site generated in revenue to the Crown, we’ve got a problem.”
There are more than 20,000 locations listed in the federal contaminated sites inventory, from dumps and abandoned mines to military operations on federal land.
Environment and Climate Change Canada says that after Giant Mine, the four most expensive cleanups are the Faro Mine in Yukon, the Port Hope Area Initiative in Ontario, Esquimalt Harbour in British Columbia and Yukon’s United Keno Hill Mine.
More than $2 billion has been spent on the five sites so far, and it’s anticipated they will cost taxpayers billions more in the coming years. Their final price tags are not yet known.
The most recent numbers from the Treasury Board of Canada indicate more than $707 million has been spent on remediation, care and maintenance at Faro Mine, a former open pit lead-zinc mine. Its remediation project is expected to take 15 years to complete and is currently estimated to cost $1 billion, plus $166 million for the first 10 years of long-term operation and maintenance.
Parsons Inc. was awarded a $108-million contract in February for construction, care and maintenance at Faro Mine until March 2026, with the option to extend the contract for the duration of active remediation. The company said the contract could ultimately span 20 years and exceed $2 billion.
In 2012, Ottawa committed $1.28 billion in funding over 10 years for the cleanup of historical low-level radioactive waste in the municipalities of Port Hope and Port Grandby, Ont. To date more than $722 million has been spent on assessment and remediation.
The Port Grandby Project was completed earlier this year and has moved into long-term monitoring for hundreds of years. The Port Hope cleanup, which started in 2018, will continue into 2030.
The cleanup in the Esquimalt Harbour seabed in Victoria currently has a budget of $162.5 million. Roughly $214 million has already been spent on remediation and assessment. The Department of National Defence said that may include costs before 2015, when the remediation project began.
Cleanup of United Keno Hill Mine, a historical silver, lead and zinc mining property near Yukon’s Keno City, is estimated to cost $125 million, including $79 million during its active reclamation phase. That is expected to begin in 2023 and take five years, followed by a two-year transition phase then long-term monitoring and maintenance. More than $67 million has been spent on remediation, care and maintenance at the site so far.
Other costly federal sites that have been cleaned up include the Cape Dyer Dew-Line, 21 former radar stations across the Arctic, for $575 million, the Sydney tar ponds and coke ovens on Cape Breton Island, N.S., for nearly $398 million, and the 5 Wing Goose Bay air force base in Labrador, for $142.9 million.
The 2022 public accounts state the gross liability for the 2,524 federal contaminated sites where action is required is nearly $10 billion based on site assessments. Of the 3,079 unassessed sites, 1,330 are projected to proceed to remediation with an estimated liability of $256 million.
The federal contaminated sites action plan was established in 2005 with $4.54 billion in funding over 15 years. That was renewed for an additional 15 years, from 2020 to 2034, with a commitment of $1.16 billion for the first five years.
Jamie Kneen with MiningWatch Canada said the contamination from Giant Mine highlights the importance of the planning and assessment process for development projects.
“If you don’t actually do any planning around something, you can end up with a pretty horrible mess,” he said. “In this case, it killed people before they started even capturing the arsenic. We don’t want that to happen anymore.”
This report by The Canadian Press was first published Nov. 27, 2022.
This story was produced with the financial assistance of the Meta and Canadian Press News Fellowship.
Share debacle a rare setback for Indian tycoon Adani
By Krutika Pathi in New Delhi
NEW DELHI (AP) — Indian billionaire Gautam Adani grinned as he posed this week for photos with Israeli leader Benjamin Netanyahu after acquiring one of the country’s main ports, in Haifa.
“I promise you that in the years to come, we will transform the skyline we see around us,” said Adani, his manner upbeat even as his business empire was losing billions. Investors have been dumping Adani shares for more than a week after U.S. short-selling firm Hindenburg Research put out a report alleging his businesses have engaged in fraud and stock price manipulation. The Adani group has denied this.
Before the debacle, Adani, 60, was Asia’s richest man and the third wealthiest in the world, according to Bloomberg’s Billionaires Index. Not anymore.
The massive losses are a rare setback for the coal mining tycoon from western India’s Gujarat state and raise questions about what lies ahead.
Expansion has been at the heart of Adani’s success story. The son of a middle-class family in the Gujarat capital, Ahmedabad, he quit college to become a diamond trader in the country’s financial capital, Mumbai. He returned home to join his brother in importing plastics before establishing Adani Enterprises in the 1980s, trading in everything from shoes to buckets.
Adani shifted to investing in ports, construction and coal mining as India opened up its economy in the 1990s. A new middle class emerged and the ambitious businessman placed bets on providing energy to serve them.
Adani’s first big project, Mundra Port, is now India’s largest commercial port and he is the country’s biggest private port operator. Within a decade, he also became India’s largest developer and operator of coal mines.
Today, Adani companies also operate airports in major cities, build roads, generate electricity, manufacture defense equipment, develop agricultural drones, sell cooking oil and run a media outlet. He has his eyes set on becoming the world’s largest renewable energy player by 2030.
Citing market volatility, late Wednesday his flagship Adani Enterprises scrapped a $2.5 billion share offering that, despite the bloodletting in the group’s shares and a 28% plunge that day in its own share price, had been oversubscribed.
In a video address Thursday, Adani said the share offering was canceled to “insulate investors from potential losses.”
“For me, the interest of my investors is paramount and everything else is secondary,” he said.
The share offering was seen as a test of investor confidence in the self-made industrialist, whose ascent has been celebrated as a symbol of India’s economic ambitions. The Adani Group said in a statement that canceling the offering would not “have any impact on our existing operations and future plans.”
The Adani Group said its balance sheet was “very healthy” and its history of servicing debt was “impeccable.”
Still, Brian Freitas, a New Zealand-based analyst with Periscope Analytics who has researched the Adani Group, said the collapse in share prices for India’s second-largest conglomerate may hinder its future plans for expansion.
“It’s going to be difficult for them to raise new money,” he said.
Adani shares are still losing value. Shares in Adani Enterprises tumbled 27% Thursday, while stock in six other Adani companies fell 5%-10%.
The tycoon, who favors a plain white shirt and dark trousers over fancy dress and is said to be affable and quiet spoken, slid from being the world’s third richest man to the 13th as his fortune sank to $72 billion, according to Bloomberg’s Billionaire Index. Prior to the Hindenburg report, his net worth was about $120 billion.
More vitally, the company is now without the funds it had hoped to raise in this week’s offering. Companies often launch such share offerings to finance growth while reducing debt.
“Thanks to the short-seller, Adani’s plans will get slowed down significantly,” said R.N. Bhaskar, a journalist who wrote a biography on Adani.
Analysts say that rapid expansion has largely been fueled by borrowing. The group’s debt stands at $30 billion, out of which $9 billion is from Indian banks, the group’s chief financial officer said recently.
After the stock rout of the past week, lenders may deem his group high risk and toughen their criteria for borrowing, like demanding higher interest rates or more collateral, said Freitas.
“Equity investors are going to be wary because the stock isn’t doing well — if they can’t raise equity, they will have to go to the debt market,” he added. “Given the situation, foreign lenders will think twice before lending any new money to Adani.”
Despite Adani’s longstanding ties with Prime Minister Narendra Modi, a fellow Gujarati, and other powerful politicians, the government has so far remained silent on his recent troubles even as pressure from the political opposition for an investigation into Adani’s situation grows.
In recent years, Adani has pumped money into sectors like agriculture, defense and renewable energy — all seen as high priorities for the Indian government.
Like Adani’s commitment to the port in Israel’s Haifa, many of the group’s overseas infrastructure projects, in countries such as Sri Lanka and Tanzania, have served as an Indian counterweight to rival China’s holdings.
The Haifa deal was a coup for India, located close to another port managed by the Shanghai International Port Group.
“India is working with great fervor with Israel on defense and technology, and Adani now has a port there. You think the Indian government can sniff at that?” said Bhaskar. “The thing is, you can’t wish away Adani — because he is indispensable at this point.”
He expects Adani to remain undaunted.
“The more challenging a situation gets, the more defiant and creative he becomes to overcome it,” Bhaskar said.
Senate passes Liberals’ controversial online streaming act with a dozen amendments
By Mickey Djuric in Ottawa
Big tech companies that offer online streaming services could soon be required to contribute to Canadian content as a controversial Liberal bill gets one step closer to becoming law.
The Senate has passed the online streaming act known as Bill C-11 with a dozen amendments following a lengthy study by senators.
The bill would update Canada’s broadcasting rules to reflect online streaming giants such as YouTube, Netflix and Spotify, and require them to contribute to Canadian content and make it accessible to users in Canada — or face steep penalties.
Canadian Heritage Minister Pablo Rodriguez says he hopes the House of Commons will pass the bill next week after it reviews the Senate’s changes.
Senators made amendments intended to protect user-generated content and highlight the promotion of Indigenous languages and Black content creators.
They also included a change that would prohibit CBC from producing sponsored content, and another that would require companies to verify users’ ages before they access sexually-explicit material.
Rodriguez said Thursday that the Liberal government would not accept all of the Senate’s recommendations, but he didn’t say which ones he disagrees with.
“We’ll see when the bill comes back. There are amendments that have zero impact on the bill. And others that do, and those, we will not accept them,” the minister said Thursday during a Canadian Media Producers Association panel.
The Senate also removed a clause in the bill that Sen. Paula Simons described as giving “extraordinary new powers to the government to make political decisions about things.”
Ian Scott, the former chair of Canadian Radio-television and Telecommunications Commission, had told a Senate committee that some provisions in the bill did move the balance point “slightly closer to lessening the independence” of the regulator — though he insisted that it would remain independent.
The CRTC, now under the leadership of Vicky Eatrides, will be tasked with enforcing the bill’s provisions.
The Senate passed the bill on the anniversary of its introduction in the House of Commons.
Between the House of Commons and Senate, there have been approximately 218 witnesses, 43 meetings, 119 briefs and 73 proposed amendments, said Rodriguez.
“It’s the longest bill,” he said.
The proposed law has come under intense scrutiny amid accusations from companies and critics who said it left too much room for government control over user-generated content and social-media algorithms.
Rodriguez said tech giants can get creative with ways they promote Canadian content, such as with billboards, advertising or, if they so choose, tweaks to their algorithms.
The bill has also caught the attention of the United States. Its embassy in Ottawa recently said that it is holding consultations with U.S. companies that it is concerned could face discrimination if the bill passes.
Last week, two U.S. senators called for a trade crackdown on Canada over Bill C-11, saying that the prospective law flouts trade agreements.
“I’m not worried, because we think it complies with trade obligations,” Rodriguez said.
This report by The Canadian Press was first published Feb. 2, 2023.
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