Uranium mining giant Cameco Corporation pulls out of Nunavut

DWANE WILKIN
Nunatsiaq News

IQALUIT — Uranium mining giant Cameco Corporation has canceled its mineral exploration program in Nunavut this summer, citing a lack of commitment by Inuit leaders to embrace the nuclear industry.

Charles Roy, the company’s exploration manager, said Nunavut Tunngavik Inc.’s ban on uranium exploration on select parcels of Inuit-owned land amounts to a “negative uranium philosophy” that Cameco finds less than reassuring.

“We can still work on non-Inuit-owned lands, but let’s face it, if something is found and it comes time to have a referendum about putting this into production, assuming it was economic, then you know, we have to have those people on side,” Roy said.

Cameco owns and operates the world’s two largest, high-grade uranium mines, and has worked for a number of years to try to dispel fears about suspected environmental hazards, by taking members of the community on tours of its modern operations in northern Saskatchewan.

Although local acceptance of uranium mining appears to have grown dramatically since then, Roy said the company had wanted greater assurances of support from NTI.

In particular, Cameco wants access to that portion of Inuit-owned land administered directly by Nunavut Tunngavik Inc. (NTI) — lands where Inuit also enjoy subsurface rights.

No uranium mines on Inuit-owned subsurface

Roy said this so that Cameco can carry out a “thorough evaluation” of all known uranium deposits in the Baker lake area.

“Basically, their policy now is that there can be no uranium exploration or developments on Inuit-owned subsurface,” Roy said.

The company complained earlier this year that requests for NTI to review its policy on uranium mining have “fallen on deaf ears.”

It announced suspension of its exploration program in the new territory until the year 2000.

“Apart from the resource industry I’m not quite sure where Nunavut is going to get any taxes from, other than federal government handouts,” Roy said.

“So in order to get their house in order, all I’m saying is, the sooner that you guys can make up your minds on the uranium issue, the quicker we can get on with business.”

Uranium prices low

James Eeetoolok, NTI’s first vice-president in charge of land management, doesn’t believe Inuit policy is to blame entirely.

“They’re using it as a tactic, but then again, we’re not too sure it’s a problem,” Eetoolok said.

“Cameco will not be exploring next year in the Baker Lake area because the price of uranium is low, I guess.”

Indeed, low world prices for uranium were a factor contributing to the company’s decision not to return to Nunavut this summer, Roy said.

“We have a fixed exploration budget and we have higher priority areas that we want to explore in.”

Cameco’s exploration activities over the last five years have created a handful of seasonal jobs for residents of Baker Lake, where the unemployment rate hovers between 65 and 70 per cent. Although the region is believed to possess rich ore deposits, no development of a full-scale uranium mine is currently envisioned.

Dollars go to Saskatchewan

The recent expansion of Saskatchewan’s uranium industry, in contrast, is expected to generate billions of dollars in economic spinoffs, tax revenues and royalties for the province.

“We’ve been very successful working with aboriginal groups in Saskatchewan, but it’s taken 20 years,” Roy said. “We’ve got a number of joint ventures, trucking, catering, line cutting, road construction — you name it, aboriginals are involved. And that’s the same type of thing we’d do in Nunavut.”

The “negative uranium philosophy,” Roy said, can be traced to misinformation spread by the global anti-nuclear movement, and is expressed by such organizations as the Inuit Circumpolar Conference, which has declared the Arctic a “nuclear-free zone.”

Eetoolook acknowledged that NTI’s ban on uranium mining is based on the ICC anti-nuclear stance, but added that a policy review is underway, albeit slowly.

“We need further research and discussions on it before any changes to our policy can be looked at, and we have to consult with the people of Nunavut, especially the Baker Lake people,” Eetoolook said. “This is very sensitive, and we want a bit of time to discuss how we’re going to approach it, how we’re going to tackle it.”

In late 1997, the French-owned company Cogema Resources Inc. announced it was also suspending exploration plans in the Baker Lake area.

Electric utility companies around the world who buy processed uranium to fuel nuclear power plants are the mining companies’ main customers.

Roy said he is optimistic that Inuit in Nunavut will eventually throw their support behind the mining industry.

“I think they’ve got to first come to grips with the potential of uranium development on their lands, and once they make a decision I’m sure they’ll act fairly quickly.”