A report is urging B.C. to get better financial guarantees that mining companies will pay for the mess they make.

The First Nations who commissioned the study say that if the government doesnB次元官网网址檛 do it, they will.

B次元官网网址淭hereB次元官网网址檚 clearly a recognition by the government and the courts that we have ownership and lands and we have jurisdiction and authority,B次元官网网址� said Allen Edzerza of the B.C. First Nations Energy and Mining Council.

B次元官网网址淲hat this report is suggesting is that maybe they should exercise some of that authority.B次元官网网址�

The province is reviewing the rules by which it ensures that taxpayers arenB次元官网网址檛 stuck with the costs of cleaning up or caring for abandoned mines. The report points to several recent examples of the government being left to pay the costs, including at least $500,000 at one old gold mine.

Current legislation requires companies to put up more assets towards the end of a mineB次元官网网址檚 life. But the assets often depend, directly or indirectly, on the companyB次元官网网址檚 value or on commodity prices.

B.C.B次元官网网址檚 auditor general recently concluded that the costs of mine cleanups exceed the surety held by the government by $1.4 billion.

That leaves the public at risk even with good-faith operators, said Jason Dion, a consultant who wrote the report.

B次元官网网址淓ven a big, well-capitalized mining company can go bankrupt,B次元官网网址� he said.

B次元官网网址淵ouB次元官网网址檙e essentially betting $1.4 billion on the continued financial viability of the mining sector. If there was commodity price downturn, you could see a number of mining companies going bankrupt.B次元官网网址�

A better solution would be to require miners to put up hard assets out front that wouldnB次元官网网址檛 change value, said Dion.

Quebec has such a policy and leads the country in new mining investment.

B.C. chiefs are likely to pay close attention to what the report suggests, Edzerza said. B次元官网网址淭he chiefs will be very supportive of that approach.B次元官网网址�

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Court decisions as well as the provinceB次元官网网址檚 of the United Nations Declaration of the Rights of Indigenous Peoples ensure First Nations have a strong hand to play when it comes to mining development on their lands, said Edzerza.

B次元官网网址淐learly government has to change its approach,B次元官网网址� he said. B次元官网网址淚f youB次元官网网址檙e going to mine, we think the reclamation has to be addressed properly.B次元官网网址�

Edzerza said First Nations are in talks with B.C. on reforms to mining regulations, including on how cleanup guarantees are funded.

Other jurisdictions are doing a better job, said Dion. B次元官网网址淥n this front, British Columbia is a bit of a laggard.B次元官网网址�

The Canadian Press

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