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EDITORIAL – KGHM’s rejection of funding request bound to ramp up the Ajax mine shouting match

An ArmchairMayor.ca editorial by Mel Rothenburger.

THE $200,000 QUESTION has come down to a roll of the dice. KGHM has turned down the City’s request to provide the money to complete a study by SLR Consultants on the Ajax application.

The Ajax debate is about to ramp up again.

The Ajax debate is about to ramp up again.

It’s a surprising move, and one that will deepen the division this project has caused in the community. There will be those who will cheer, and those who will jeer.

KGHM is likely banking on the cheers being loud enough to strengthen its claims that most people support Ajax. That may be more important to them than an endorsement from City council, which seems to be a moot point at this stage anyway.

If council does ever take a vote on whether or not to support Ajax, turning down funding to complete an independent study isn’t going to endear KGHM to them. But maybe the corporation figures most council members have made up their minds anyway.

From a public relations perspective, paying for the completion of the study would have looked good on KGHM. However, by playing hardball, KGHM is putting the ball squarely back in council’s court (if you’ll excuse the somewhat mixed sports metaphor).

Will the City go ahead with completing the study on its own? That will surely be an interesting debate, one that will ripple outward from council chambers throughout the community.

Adding to the intrigue is the full-fledged entry into the issue by MiningWatch Canada, which says Kamloops should “pay attention” to recent legal developments at the Malartic open pit mine in Quebec.

Malartic’s owner faces a $70-million class action suit based on alleged impacts on 700 houses and 1,400 people located closest to the mine site.

That would translate into $100 million in compensation or litigation costs in the case of Ajax, MiningWatch calculates, based on 2,700 houses and 7,000 people living mainly in Aberdeen.

“Ajax’s feasibility study clearly shows that KGHM didn’t plan for this type of costs,” said Ugo Lapointe of MiningWatch. “It also shows that the project has no financial room or capacity to absorb these costs.”

Anti-mine scare tactics? Those who support the mine will certainly think so; those who oppose it will use the MiningWatch numbers as yet another argument against Ajax.

And the decibel level of what has become the Ajax shouting match will ramp up again.

Got an opinion? Leave a comment or write us a letter.

Mel Rothenburger's avatar
About Mel Rothenburger (11717 Articles)
ArmchairMayor.ca is a forum about Kamloops and the world. It has more than one million views. Mel Rothenburger is the former Editor of The Daily News in Kamloops, B.C. (retiring in 2012), and past mayor of Kamloops (1999-2005). At ArmchairMayor.ca he is the publisher, editor, news editor, city editor, reporter, webmaster, and just about anything else you can think of. He is grateful for the contributions of several local columnists. This blog doesn't require a subscription but gratefully accepts donations to help defray costs.

10 Comments on EDITORIAL – KGHM’s rejection of funding request bound to ramp up the Ajax mine shouting match

  1. I don’t think characterizing the discussion we are having about this issue as a “shouting match” is accurate or appropriate. Sure there are people on both sides with very strong opinions, and some who express themselves rudely – however, most of us can talk about this issue without getting personal. People tend to turn away from discussing topics that are controversial. Characterizations like this may do more to divide our community and stifle an important conversation about the future of our home.

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    • Unknown's avatar Mel Rothenburger // October 24, 2016 at 9:53 PM // Reply

      I wish you were right, but the large volume of comments that are couched in personal, insulting terms (and which I no longer accept for publication) suggests that many people are simply trying to talk over everyone else rather than discussing pros and cons.

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      • People are different in comment sections and on social media. There are always going to be a few who speak loudly and who think their views trump everyone else, however in real life the majority are civil. Not printing personal attacks is a good start, which I support. Unfortunately like defence lawyers and RCMP members you may be seeing the worst of humanity while in my everyday interactions I see the best!

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  2. Unknown's avatar John McNamer // October 24, 2016 at 2:51 PM // Reply

    Let us not forget the Malartic community’s need to file for a court injunction to try to force the company to abide by environmental regulations: “Despite having spent millions to date in mitigation measures and using best available practices, the mine is incapable of meeting regulated levels and has incurred some 4000 environmental infractions since construction started in 2009. The mine is now seeking an expansion permit which would increase the length of the open pit from 2.5km to 3.5km, and nearly double the total volume of rocks extracted.
    Malartic community members also launched an injunction asking the court to order the company to respect laws and regulations at all time from now on.”
    http://miningwatch.ca/news/2016/10/21/miningwatch-predicts-kghm-ajax-would-face-least-100-million-compensation-or

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  3. Unknown's avatar John McNamer // October 24, 2016 at 1:49 PM // Reply

    Anti-mine scare tactics? You have overlooked a very important part of the MiningWatch news release which interjects a heavy dose of reality that should absolutely scare the heck right out of Kamloops residents: “The company itself has admitted the impacts of its mine on local community members and has agreed, on September 1st 2016, to offer a $50 million relocation and compensation package for the 3500 residents of Malartic, some of whom live up to about 2-2.5km away from the mine site at the city limits.”
    http://miningwatch.ca/news/2016/10/21/miningwatch-predicts-kghm-ajax-would-face-least-100-million-compensation-or

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  4. Unknown's avatar Sean McGuinness // October 24, 2016 at 7:13 AM // Reply

    Extrapolating from Lapointes numbers, a class action law suit against KGHM would very likely be three times or more than Malarctics claim. That is, $300 million or more. This is based on the size of the population in Aberdeen (>10,000) and average property values (which are 2 or 3 times that of Malartic). If KGHM can’t afford $200,000, then their in for a shock.

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  5. I agree with the fact that most of the city council has jumped up to oppose the mine without waiting for the provincial and federal decisions. I believe that KGHM is very confident that they will get the approval they require. Perhaps that is why they offered to pay for the study in the first place, I think that was a mistake. They will never get the approval of those that have made a decision without waiting for the appropriate environmental studies. We have a pulp mill and a cement plant causing a lot more hazard than an open pit mine ever will. But no worries, keep up the uneducated whining and soon they will both be closed. Leaving hundreds, no where for anyone to work, no stores to shop at, oh, never mind it’s happening already. That’s okay we can still go to Kelowna or the lower mainland to shop, oh, never mind that’s happening now too! Wake up people start supporting good businesses locally and Kamloops will grow into a great place to shop and stay!

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    • Interesting to note, no open pit mines are near Kelowna nor the
      Lower mainland. Is that what’s holding them back?

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      • What? The point was…support your community, give new business a chance,(with the proper federal and provincial environmental studies of course) and support the ones that are here, struggling to survive now!?!

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    • Actually Marg, if you look at the National Pollutant Release Inventory, you will find that an open pit mine is probably a great deal worse than our pulp mill and cement plant. If you look at PM 2.5 in particular, HVC is the top industrial producer in Canada reporting that they release 2,681 tonnes of PM2.5 into the air annually. Domtar comparatively releases 152 tonnes, and LaFarge 45 tonnes. Keep in mind that according to bcairquality.ca, “PM2.5 is one of the most important outdoor air pollutants in B.C. from a human health perspective.” Fortunately HVC is a large distance from peoples homes. Back when they founded Logan Lake to support HVC they were smart enough not to place it directly beside the mine site, but rather 16 kms away.

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