Voiseys Bay 1 By Richard Haworth

1
Voiseys Bay (1)By Richard Haworth

• An INCO project to mine nickel in Newfoundland
  and Labrador (NL)
• On land claimed by the Innu who want compensation
  (Impact Benefit Agreement)
• Demand from NL that mineral processing be done in
  NL
• Federal government asked for support (NRCan,
  Finance, HRDC, INAC, Industry Canada,..)
• Interests of other provinces (Manitoba, Ontario)

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Voiseys Bay (2)

• Innu negotiating with INCO re IBA (confidential
  to them alone) but land claim discussions taking
  place with federal government (Indian and
  Northern Affairs)
• Environmental impact assessment led by Fisheries
  and Oceans Canada
• Province negotiating with INCO re conditions on
  development
• INCO negotiating with federal government for
  support (Technology Training programs)

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How does it work?

• Generally well since each is generally aware of
  the others challenges/limitations
• Better since about the time of the federal
  program review (rules were clearer even if fiscal
  situation was not as good for the provinces)
• Ministers I have met are amazingly talented
  people (gtgt A day in the life of an MP - page 162)
  and have their own private (political) staffers
• Most senior public administrators have a wealth
  of experience to draw upon

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International Context

• Diamonds are funding conflicts
• International pressure (by countries, NGOs and
  individuals) to stop illicit diamond trade
• How? - without harming legal trade in Botswana
  and Namibia (2/3 GDP)
• UN sanctions but seen not to be effective
• Canada chairs Angola Sanctions Committee

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Canadian Response (1)

• Canada must participate in Kimberley Process in
  support of its new industry lobbying by
  industry and GNWT
• Need national legislation that will enable such
  participation resource crosses international
  borders although it is provincial/territorial
• Multi-departmental (DFAIT, INAC, CCRA, NRCan,
  SOLGEN, Finance, PCO)!!
• Amend existing regulations or prepare stand-alone
  legislation?

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Canadian Response (2)

• Bill C-14 controls for the export, import or
  transit across Canada of rough diamonds
• Legislation provides authority to
• issue Kimberley Process Certificates (KPCs) for
  exports
• verify information on application for export or
  import
• make regulations prescribing records to be kept
• designate enforcement officers
• establish a fee for processing KPCs

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How?

• Who to lead the process?
• Who to draft the MC and regulations?
• Who to sign the Memorandum to Cabinet?
• What timetable and how to get it through
  parliamentary process (Kyoto Committee stage)?
• What about a potential World Trade Organization
  challenge?
• What will be the actual mechanism to achieve this
  (certificates inspectors statistics
  transportation to certifying authority)

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What happened in Canada?

• Royal assent of C-14 on December 13, 2002
• Related regulations to come into effect on
  January 1, 2003
• Canadas KP certificates printed and sent to all
  of the contacts listed in the secure area of the
  KP web-site
• First certificate issued during first week of
  January 2003 First refusal of import in mid-year
• Debate as to what is a Canadian Diamond
  intensifies Northwest Territories interests