Windy Craggy: 1958-’93

The owners of the Windy Craggy deposit in northwestern British Columbia will be demanding compensation of several hundred million dollars from the provincial government. Last week, the government expropriated the project to make it part of a provincial park encompassing the entire Haines Triangle.

Waving placards and wearing black arm bands, a noisy group of Vancouver mining representatives turned out in force to protest the decision announced last week by Premier Michael Harcourt. The New Democratic Party (NDP) premier was booed and heckled by a visibly angry delegation of mining executives, geologists, engineers, mine suppliers and Howe Street investment brokers. The protest was reminiscent of the controversy that erupted when, in 1974, the previous NDP government introduced onerous legislation that drove mining companies out of the province. Many of the placards read: “Super-Royalty 1974, Windy Craggy 1993 — We will never forget.”

Wayne Spilsbury of the British Columbia & Yukon Chamber of Mines called the cabinet decision “a real stupid mistake” that will result in the loss of 2,000 construction and mine jobs. Moreover, he said, a deposit with a gross metal value totaling $8.5 billion will be locked up. “We have future generations to think about and they were ignored here today.” Windy Craggy contains 297 million tonnes of 1.4% copper (plus gold and cobalt) and is owned by Geddes Resources (TSE), whose major shareholder is Royal Oak Mines (TSE). Margaret Witte, who heads up both companies, was out of the province during the announcement. But Royal Oak Vice-president Ross Burns said the decision will have a long-term, negative impact on the province and will add to the exodus of mining companies to other jurisdictions.

Teck Chairman Norman Keevil called the decision “disappointing,” adding that a solid case could have been made for multiple-land use based on mines that successfully operate in Canadian parks and wilderness regions. “The important thing that has been missed here is that Canada needs to replace orebodies,” Keevil said. “And this area wasn’t just Windy Craggy, it was one of the best hunting grounds we have for new deposits.” Gary Livingstone, president of the Mining Association of British Columbia, said the decision violates the basic premise that once a claim is granted, the owner has the right to explore and develop the property. “The government has clearly shown by this decision that the rules for mining investment are subjective and will change to reflect the demands of current special interest groups that have the government’s ear,” Livingstone added. “Mining is a capital-intensive industry which needs long-term, stable, fiscal and regulatory policies. And the government track record we’ve looked at in the past 18 months has been all negatives.”

Jack Patterson, managing director of the province’s mines chamber, also criticized the government’s lack of support for mining. “Sure, they have handed out a few permits,” he said. “But it’s like getting a ticket to a cancelled game.”

Brushing aside criticism, Harcourt said the government will continue to work with the industry to develop other mines in the province. He also said discussions will begin, aimed at “fairly” compensating the 20 claim-holders in the Tatshenshini region.

In contrast to mining community reaction, organizations such as the Canadian Wildlife Federation (CWF) and Worldlife Fund Canada were ecstatic. “We’re delighted the B.C. government listened to the environmental community on this issue,” said a CWF spokesperson.

The proposed park would cover one million hectares and link two national parks in Alaska with one in the Yukon. The combined wilderness preserve would total 8.5 million hectares. The government will designate its park as a World Heritage Site, a status already enjoyed by the neighboring Alaskan and Yukon parks.

The industry’s only hope of stalling the process is to forge an alliance with the Champagne-Aishihik band, which has filed a land claim for a section of the Haines Triangle in which Windy Craggy is situated. The government decision was made “without prejudice” to the aboriginal treaty negotiations. Harcourt said the decision was based on a report submitted earlier this year by the Commission on Resources and Environment (CORE). “(The) report stated that mining activity would be incompatible with full preservation of wilderness and that the final land-use decision was unlikely to be resolved through a consensus process,” Harcourt said.

But the CORE report was criticized by industry as “biased” and fraught with “serious errors and omissions” with regard to mineral value, wilderness values and economic analysis. Twelve errors of fact were identified, along with 16 errors of analysis and conclusions on major points and 13 of lesser importance.

A review by a special industry committee called the CORE report “inadequate” in its assessment of the region’s mineral potential and economic benefits and said it failed to provide adequate technical support for some key assertions.