Studies should consider combined impact of Ajax and New Gold, says economics professor

NEWS — The environmental review of the Ajax open-pit mine should consider the combined impact of Ajax and nearby New Gold, not just deal with Ajax in isolation, says a TRU economist.

Dr. Peter Tsigaris told 200 people in the TRU Clocktower Theatre on Sunday that the combined particulate matter emissions from Ajax and New Gold will exceed those of Highland Valley Copper.

“And hence the environmental review process cannot see Ajax in isolation but in terms of Kamloops having an equivalent to HVC next to its borders.”

Particulate matter refers to particles of dust, smoke and other material floating in the air. Particulate matter from Ajax would come from blasting, production and heavy-equipment exhaust.

Although the talk was on the economic costs of increased air pollution in Kamloops, it focused heavily on Ajax.

He recommended the City of Kamloops play an active role in studying the mine’s impacts, including creating a task force to conduct an in-depth impact and cost-benefit analysis for “cleaner and healthier” air in Kamloops.

“I’m volunteering my time and I don’t need any money,” he said to cheers and applause.

He also suggested the City consider putting a municipal tax on gasoline, which would have the potential to raise as much in taxes as KGHM says it will contribute from development of the mine.

At three cents a litre it would bring in $2 million a year; at 10 cents about $7 million a year and would cost the average household $140 per year, he calculated. Over the 23-year lifespan of the mine that would generate $161 million, more than the $110 million KGHM says will go to City coffers if the mine is developed.

Tsigaris suggested the City set targets to bring down particulate matter in the most polluted districts in the city. “There’s a social benefit because the most polluted areas of town are where the lowest socio-economic people live.”

Complimenting Domtar on its improvements in emissions, he said other industries should set targets to reduce their emissions, too.

And he called for a full independent health-impact assessment, which KGHM International has previously rejected as unnecessary.

Asked during the Q&A following his presentation what he thought of the Venture Kamloops economic study released last week, he said if a student had submitted it to him as a paper he’d tell him to take it back and redo it.

Tsigaris said the economic, environmental and health impacts of an industry must be considered together. He said the best way to analyze the potential impacts of a mine is to compare places that have them with places that don’t.

He showed comparisons of mines, city populations and their distance from major mines, showing that the proposed Ajax-Kamloops scenario is an exception. Towns so close to a mine are seldom as big as Kamloops.

“The higher the population is, the further away they stay. The distance (from Kamloops to a mine) should be about 70 km. and at a minimum 10.”

Tsigaris also showed comparisons of costs and benefits of clean air vs. dirty air.

“Benefits from an increase in economic activity can lead to air pollution and external costs,” he said. Copper and gold benefits consumers “because they need the copper.”

More supply and same demand equals lower prices because of competition, which is a negative effect on producers.

He acknowledged there is some community benefit to a mine. “There is one benefit and that is the donations and philanthropy that a mine will contribute to the community.”

But without the mine, that will come about in other ways.

There are economic benefits from clean air that come via lowered health costs. “The benefit arises from not giving nurses and doctors more jobs.”

Pointing out that the valley in which the city is located is prone to air inversions, he said, “The topography of Kamloops does not support air pollution. Winters are bad; they’re really bad in Kamloops,” he said, showing month-by-month statistics on particulate matter. “Summers are pretty good in terms of particulate matter.”

Tsigaris said there is “an alternative path” Kamloops can take. “There is a path that takes us from dirty air to cleaner air.”

“Clean air is good economics.”