Abstract:

As mining projects advance from concept to a design level that supports permitting (i.e. typically a Feasibility Study (“FS”) stage), there are numerous internal and external factors that shape and influence the scope of a project. As projects progress through the various study stages, more is known about the technical, economic, environmental and social benefits and impacts through additional engineering, testwork, environmental baseline studies, stakeholder engagement, Indigenous consultation, and economic assessments. In the absence of information, early-stage studies tend to be optimistic and often prioritize technical and economic trade-offs without a broader consideration to environmental and community factors.

As new information is gathered, assumptions are often required to be altered and updated. Given the significant uncertainty with early-stage projects, proponents can be hesitant to share preliminary designs with Indigenous communities, opting rather to share designs once more certainty is attained. Leaving discussions with communities on designs to later stages creates the potential for conflict and a lack of trust. Communities could feel that potentially favourable design options were not considered adequately, and that the alternative assessments were biased towards the wants of the proponent. By delaying discussions, there is an increased chance of the project being rejected.

Design changes have an increasing impact on cost and schedule at more advanced stages and thus proponents may be less open to considering alternative options. If at this later stage, discussions with local communities conclude that a redesign is needed, then a company must incorporate the redesign—which will have a negative impact on the project timeline and costs—or attempt to proceed with their original concept and risk their local community partners rejecting the project. Proponents can often get entrenched in their position on designs due to various competing pressures. If discussions on design concepts were to have taken place at earlier stages and regularly over the advancement of the project, we believe there would be better alignment between proponents and Indigenous communities.

Fuse Advisors have analyzed current decision-making processes and tracked numerous mining projects from early stages to construction to develop a multi-criteria tool to track, collaborate, and update mining project designs alongside Indigenous communities. We want to create a new standard for mining companies to develop projects in a collaborative and open manner with communities. This standard would better allow projects to evolve as new information is uncovered, and ensures communities and proponents interests are aligned throughout the development process.

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Ryan Weymark