Not Fit for Purpose: Oil Sands Mines and Alberta’s Mine Financial Security Program

Mining jurisdictions around the world are grappling with the significant environmental harms and costs associated with orphaned mines, i.e., mines whose owners are financially unable or otherwise unwilling to remediate and reclaim their mine sites. Numerous Canadian examples, including the notorious...

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Bibliographic Details
Main Authors: Olszynski, Martin, Leach, Andrew, Yewchuk, Drew
Format: Article in Journal/Newspaper
Language:English
Published: University of Calgary 2023
Subjects:
Online Access:https://journalhosting.ucalgary.ca/index.php/sppp/article/view/77856
Description
Summary:Mining jurisdictions around the world are grappling with the significant environmental harms and costs associated with orphaned mines, i.e., mines whose owners are financially unable or otherwise unwilling to remediate and reclaim their mine sites. Numerous Canadian examples, including the notorious Giant Mine in the Northwest Territories, have significantly harmed water, soil, air, and wildlife, as well as human health, safety, and well-being. Such impacts can be particularly devastating for Indigenous peoples, who continue to rely on their traditional territories for cultural and other purposes. Canadian governments have gradually developed remediation and reclamation liability regimesto ensure that mine operators remediate and reclaim in a timely manner, or to at least ensure that governments have access to sufficient funds to carry out this closure work themselves. While they differ in various ways, the basic logic of such regimes is the same: by requiring mine owners toset aside some funds (e.g., in the form of cash or a letter of credit), they act as a kind of insurance that the public will not bear the costs of remediation and reclamation. Unfortunately, Alberta has refused to develop an effective regime to protect Albertans from bearing the costs of oil sands mine remediation and reclamation. The regime in place today will not ensure that there are sufficient funds set aside to complete this closure work in the eventthat operators fail to do so. In some respects, this is not news. It has been over two decadessince Alberta’s Auditor General first identified serious deficiencies in Alberta’s regime. Continued mismanagement has left Albertans with a significant risk that they will be responsible for cleaning up oil sands mines that threaten potentially irreversible environmental harm, including a growing inventory of nearly 1.6 trillion litres of toxic tailings. Alberta’s Mine Financial Security Program (MFSP), which applies to both coal and oil sands mines, is a misnomer. While it allows mine owners to ...