Chief Inspector Of Mines 2020/2021 Annual Report

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Photo: Sullivan Mine reclamation located in Kimberley, BCChief Inspector of Mines2020/2021 Annual mineral-exploration-mining

Table of ContentsCIM Annual ReportTable of ContentsIntroductionReport Overview. 3Message from the Chief Inspector of Mines (CIM). 4Message from the Chief Permitting Officer (CPO). 5Mining in BC. 6Our Staff. 7What We Regulate. 8Mines Health, Safety & Enforcement Division . 9Mines Competitiveness & Authorizations Division.102020/2021 at a GlanceCOVID-19 .11Continuous Improvement.12Regulatory Oversight.15Indigenous Engagement.17Health & Safety.20Permitting.22Abandoned Mines Branch.25Digital Systems Modernization.28Conclusion.29AppendicesAppendix A: Major Mines Production.30Appendix B: Operating Major Metal & Coal Mines.32Appendix C: Training.33Appendix D: Certifications Issued 2020/21.35Appendix E: Reclamation Liabilities.36Photo: Nickel Plate Mine (closed), near Hedley BC.2

Report OverviewCIM Annual ReportPhoto: Nickel Plate Mine (closed), near Hedley BC.Report OverviewThis report is completed annually, to comply with the requirement undersection 36 of the Mines Act (the "Act") that the Chief Inspector of Minespublish an annual report showing results during the previous year inachieving the purposes of the Act.1The Ministry of Energy, Mines and Low Carbon Innovation (EMLI) isresponsible for BC’s electricity, alternative energy, oil, natural gas, miningand mineral exploration sectors. Based on the recommendations of theAuditor General's Report (2016) and the Mining Jobs Task Force (2018), theregulation of BC’s mining and mineral exploration was divided into twodivisions – the Mines Health, Safety and Enforcement Division (MHSE) andthe Mines Competitiveness and Authorizations Division (MCAD).Previously, the Chief Inspector of Mines Annual Report reported on the preceding calendar year. However, from this year forward, the reportwill reflect the fiscal year to align with the service plan and inspection targets within the Ministry of Energy, Mines and Low Carbon Innovation(EMLI, the "Ministry"). As such, this report will describe the period of January 2020 to March 31, 2021, with information demarcated as January 1through March 31, 2020 and April 1, 2020 through March 31, 2021 (fiscal year) where needed.13

Message from the Chief Inspector of Mines (CIM)I am pleased to release the 2020/2021 Chief Inspector of Mines AnnualReport. 2020/2021 were challenging years for the world, the effects of whichwere certainly felt in BC's mining industry. However, as this report outlines,BC's mining industry remains strong and will continue to support BC'seconomic recovery.Message from the CIMCIM Annual ReportCOVID-19 altered how EMLI conducted its work, forcing us to think of"outside the box" and develop new strategies to achieve our mandate. Ourstaff developed new methodologies that are more efficient and productivethan before and will continue to shape the way we work in the future.2020/2021 also saw substantial changes to the organizational structurewithin the mining divisions, providing for more effective regulatory oversight.The recently created "Office of the Chief Inspector of Mines Branch" (OCIM)houses all mining compliance inspectors to oversee the health, safety, andtechnical compliance initiatives for EMLI. This involved merging the Health and Safety Inspectors (Major Mines) withthe Health, Safety and Environment Inspectors (Regional Mines), so that regulatory oversight is under one reportingstream, separate from authorization responsibilities.This past year, the OCIM introduced several new systems to improve efficiency and increase our ability to effectivelyregulate, including: the introduction of a new risk-based inspection methodology; a centralized incident reportingsystem; improved certification processes for blasting, shift boss, fire boss and mine rescue exams; and a revised MineEmergency Management Plan. The introduction of risk-based inspection planning allows for effective inspection planning based onthe analysis of multiple factors. As a result, mine sites that pose a higher potential risk are subject to agreater inspection frequency, to promote health and safety and ensure compliance with the regulatoryrequirements.The new centralized incident reporting system allows our staff to provide timely reporting and effectiveresponse to mining incidents in the Province. Furthermore, real-time data allows our staff to identifyhealth and safety trends and determine appropriate responses, such as education, compliance inspections orenforcement.Our improved certification processes allow our staff to efficiently administer examinations across theProvince, using modern methodologies and leveraging new technologies.The revised Mine Emergency Management Plan strengthens EMLI's ability to respond to mine-relatedemergences. It supports EMLI staff training and preparation to provide support to a mine site or manageemergency response.EMLI continues engaging Indigenous Nations to promote a more collaborative approach to compliance oversight ofthe mining industry, such as through accompanied inspections. The OCIM will continue building relationships withNations across the Province by working together on oversight and compliance initiatives.I am encouraged to see industry continuing to adopt new technologies to support a safer and greener future at mines.I am very proud of the work achieved by all EMLI staff in 2020/2021 and excited about our path forward in regulatingBC's safest heavy industry.Herman HenningChief Inspector of Mines4

Message from the CPOCIM Annual ReportMessage from the Chief Permitting Officer (CPO)The August 2020 update to the Mines Act gave the Minister the authorityto appoint a Chief Permitting Officer (CPO) responsible for mine permittingunder Section 10 of the Mines Act. I am pleased to be the first CPO appointedunder the Act and I’m keen to work with my colleagues to find efficienciesin permitting processes, while upholding the high standards that have beenestablished surrounding health & safety and environmental protection.In 2020, the Major Mines Office (MMO) continued its work toward improvingthe process for reviewing and making timely decisions on major miningprojects by implementing risk management tools and seeking alignmentbetween Provincial agencies. In the Spring of 2020, a dedicated team wascreated to support all the coal projects in southeast BC. This unit has provento be very effective in developing and trialing innovative management tools,supporting the development of emerging technologies for water treatment,facilitating cross-agencycooperation, and improving authorization timelines. In 2021, we willAmendments to the Mines Act cameexpand key lessons learned in the southeast to the rest of the Province.into force on August 14, 2020. TheseIn another initiative, MMO developed and implemented guidance foramendments created the role ofstaff and industry regarding notices of departure from approved minethe Chief Permitting Officer (CPO),plans, which has cut timelines for decisions on these notices in half. Inofficially separating the permitting2021, we will continue to work to make review processes as efficient asand compliance and enforcementpossible by working with partner agencies to review the informationrequirements for coordinated authorizations.authorities within EMLI.In Regional Operations, there are several projects that have advancedunder the umbrella of the Mines Standardization and Service Improvement Project. In spring 2020, a Mineral andCoal Exploration Notice of Work Application Companion Document was released to provide clarity on informationrequirements for exploration applications. Other guidance clarifies mapping standards for digital geo-referencedmaps making application reviews more efficient for industry, government and Indigenous Nations.Looking forward, Regional Operations is seeking to further improve and standardize permitting processes, includingimprovements to online application forms, implementing more streamlined processes for application review andimproving guidance materials for applicants.I am pleased with the work completed in 2020, and I am optimistic about what we can accomplish in 2021 as wecontinue to work together with Indigenous Nations, industry, other agencies and stakeholders to improve miningauthorization processes in BC.George WarnockChief Permitting Officer5

Mining in BCCIM Annual ReportMining in BCMineral exploration, mining and related sectors in BC provide jobs formore than 30,000 people in communities throughout the Provinceand add millions to BC’s economy every year. EMLI aims to support asustainable, responsible and competitive mining sector that supportsIndigenous reconciliation, creates jobs and contributes to responsiblemining products and low-carbon technologies. The mining industry in BCis subject to robust regulatory oversight that is protective of the healthand safety of workers, the public and the environment.Mineral Production, 2020 (See more details in Appendix A)Metallurgical Coal 2.85B USD125.3M tonnesCopper 2.2B CAD2255.7K tonnesGold 938.8M CAD219K kgSand & Gravel 326M CAD236M tonnesSilver 81M USD191.6K kg2Molybdenum 92.8M CAD22.7K tonnesOperating Mines(Breakdown in Appendix B)7 operating coal mines9 operating major metal minesLegendOperating major metal mineOperating coal mineTotal Production (all commodities): 7.3B1Estimated production value based on global commodity prices. 22020 production numbers from Natural Resources Canada arepreliminary estimates.What is metallurgical coal used for?Metallurgical coal is used for making steel, iron alloy, carbon and othermetals. Steel plays a critical role in building green energy infrastructure,such as wind turbines, solar panels, and tidal power systems. According tothe Mining Association of BC, 100 tonnes of metallurgical coal is requiredto produce the 185 tonnes of steel used to build a typical wind turbine.“A combination of high commodity prices, dedicated staff, and hard work bymining companies to safeguard their staff and nearby communities allowedmining to continue, and even flourish in spite of the pandemic. At 422M,exploration expenditures in BC rose to the highest level seen since 2012and no major mines were permanently impacted by the pandemic. Thishas placed the Province on excellent footing to recover from the economicimpacts of Covid-19.”CPO, George Warnock6

Our StaffCIM Annual ReportOur StaffWith 5 regional offices, as well as headquarters in Victoria, an office inVancouver and individuals in remote locations, Mines Health, Safety andEnforcement (MHSE) and Mines Competitiveness and AuthorizationsDivision (MCAD) staff are located throughout the Province. Each regionaloffice includes regional permitting inspectors, health, safety andcompliance inspectors, and may also include staff or inspectors from theMajor Mines Office or other branches within the divisions.5OtherOfficesNorthwestRegional OfficeNortheast/CentralRegional OfficeHeadquarters:VictoriaMHSE staff: 39MCAD: 34South EastRegional OfficeOther: VancouverMHSE staff: 2MCAD staff: 27VancouverOfficeSouthwest Regional Office& Headquarters Mineral Titles Branch: 22Inspectors by LocationSoutheast: CranbrookMHSE staff: 12MCAD staff: 20Southwest: VictoriaMHSE staff: 3MCAD staff: 4See more details in Appendix rtheast/Central:Prince GeorgeMHSE staff: 14MCAD staff: 9Staff Training in FY 2020/21Victoria*Prince GeorgeNorthwest: SmithersMHSE staff: 7MCAD staff: 21South Central:KamloopsMHSE staff: 7MCAD staff: 18South CentralRegional Office Major Mines Office: al andrecommended courses2635Staff hours formandatory trainingStaff hours for optional &recommended courses19082196Some inspectors assigned to Victoria live and work in other regions of the Province.*7

What We RegulateCIM Annual ReportHow We RegulateIssuing ceAuditing forcontinuousimprovement133949What We RegulateHealth &Safety88Metal Mines357QuarriesBased on MINFILE dataMineralExploration SitesCoalExploration Sites251213Sand & GravelOperationsCoal Mines923413Placer MinesCertifications*Issued in 2020-21, breakdown in Appendix D.*8

MHSECIM Annual ReportMines Health, Safety & Enforcement DivisionThe Mines Health, Safety and Enforcement Division (MHSE) has maderecent revisions to its organizational structure, reflecting EMLI'scommitment to continuous improvement, regulatory oversight andprotections for the environment, human health and public safety.Office of the Chief Inspector (OCIM)Abandoned Mines Branch (AMB)The OCIM is responsible for mining compliance oversight,programs required to protect the health and safety ofworkers and members of the public from risk factorsassociated with mine operations across BC, and mineemergency incident response. This work is divided amongfour work units:The AMB was formed in 2019 with a mandate tosystematically inventory, prioritize and address sites ofpast mining activities that present the highest risk topublic safety and/or the environment and where noowner has been identified. Mining ComplianceHealth & Safety SpecialistsOperational SupportTechnical Compliance Regulatory Management UnitMines Investigation UnitCode Review SecretariatAdministrative Monetary Penalty AdministrationMine Audits, Effectiveness and Digital ServicesThe Mine Audits, Effectiveness and Digital ServicesBranch is responsible for the continuous improvementof Ministry mining regulatory systems by: deliveringthe mine audits program under the authority of theRegulatory Management and EnforcementChief Auditor; leading the development and overseeingimplementation of Government’s responses to ChiefBranch (RMEB)Auditor recommendations; conducting special projects;The RMEB provides cross-divisional regulatory, policy and and, developing and maintaining the Ministry’s digitalenforcement services to support the Ministry’s regulatory tools.oversight objectives, including conducting investigationsand leading review of the Health, Safety and ReclamationMHSECode for Mines in BC (the Code). This work is dividedAssistant DeputyOverviewMinister’s Officeamong four work units:Office of andonedMinesMine Audits,Effectiveness &Digital Services9

MCADCIM Annual ReportMines Competitiveness & Authorizations DivisionThe Mines Competitiveness and Authorizations Division (MCAD)regulates and provides technical oversight for authorizations. MCAD alsodevelops strategic policy to ensure that BC continues to be a competitivejurisdiction for a safe and environmentally sustainable mining industry.Policy & Competitiveness BranchThe Policy and Competitiveness Branch developsand leads strategic legislative and policy initiatives tosupport the growth of mineral exploration and minedevelopments in BC and represents the Division’s intereston key government initiatives.Major Mines Office (MMO)historical data and, drawing on continuously advancingconcepts and technologies, provides information to guidesocietal decisions centered on the Earth sciences.Mineral Titles BranchThe Mineral Titles Branch administers the legislationgoverning the acquisition, exploration and developmentof mineral, placer mineral, and coal rights in the Province.The MMO brings coordination and clear accountability toboth industry and government to ensure timely reviewof high-quality permit applications to support enduringdecisions with respect to permitting major mine projects.Regional Operations Branch (ROB)The Regional Operations Branch is primarily responsiblefor authorizations and setting compliance requirementsfor regional mines, including sand and gravel pits,industrial mineral and rock quarries, and placer andmineral exploration sites.BC Geological SurveyAssistant DeputyMinister’s OfficeBC GeologicalPolicy ajor lesSurveyPolicy &MineralTitlesCompetitivenessMCAD e British Columbia Geological Survey is responsiblefor assessing BC’s geology and related mineral and coalresources. It integrates active research programs with10

COVID-19CIM Annual ReportCOVID-19The Mines Inspectorate adapted quickly to the COVID-19 pandemic. Theimportance of mining within BC was demonstrated when it was deemedan essential service during the pandemic. Permitting and complianceverification activities carried on, with inspectors adapting to ensure fieldinspections continued safely when necessary.Although fewer field inspections occurred in 2020,inspectors continued to keep in regular contact withmines, increased the volume of office-based inspections,telephone and video meetings with mines, andmaintained ongoing delivery of training and safetycertification exams. EMLI also encouraged collaborationand information-sharing between mining companiesand Indigenous Nations with respect to COVID safetyprotocols.EMLI’s regulatory work continued throughout thepandemic, although in an adapted manner to ensuresafety of the inspectorate and the public. EMLI metinspection targets, continued to process incomingNotices of Work and offered certification examinationsthroughout the pandemic.Inspections (January-December 2020)1158Sitevisits338COVID protocolchecks57CompliancereviewsEMLI inspectors took on additional responsibilities tosupport requirements set out for mines by the ProvincialHealth Officer (PHO). These responsibilities involved“reviewing COVID safety protocols for mine camps toensure that mining activity could continue safely and incompliance with PHO orders.EMLI endeavoured to support the industry throughoutthe pandemic, including relaying critical areas ofconcerns pertaining to industrial camps and broaderCOVID measures, as well as testing and vaccine roll-outwithin mine sites. The Ministry also extended tenureand mineral exploration permit timelines to ensurethat authorizations did not expire due to an inability toconduct work in 2020.Supports for the economic recovery of the miningsector continue to demonstrate its importance to BC’seconomy. Economic recovery measures related to themining sector include infrastructure investments inmining regions, funding for mine reclamation, and a PSTrebate on select machinery and equipment.The COVID-19 pandemic has had a significant impact onthe way the Ministry conducts business. I am proud of theagility and resilience that permitting staff demonstratedthrough their ability to continue to get work done in theface of challenges posed by the pandemic.”CPO, George Warnock11

Continuous Improvement5 Years Since 2016 Auditor General’s report2021 marks 5 years since the 2016 Auditor General’s report on miningcompliance and enforcement was released. In that time, EMLI hasmade significant structural and operational changes to improve safety,oversight, and transparency of the regulation of BC’s mining industry.Continuous ImprovementCIM Annual ReportRegulatory & Legislative Changes20162017 20182019 202020212021 Ministry commenced action to address the 2016 Office of the Auditor General Report andRecommendations on Mining Compliance and Enforcement.Updated the Health, Safety and Reclamation Code (“the Code”) to strengthen tailingsmanagement requirements and emergency preparedness as unanimously recommended bya committee of labour, Indigenous and industry representatives.Established the Compliance and Enforcement Branch and the Mines Investigation Unit withspecialized expertise to undertake complex investigations (reference page 16 for moreinformation).Formalized the EMLI staff training program.Administrative Monetary Penalties (AMP) regulation came into force, enabling a newenforcement tool and monetary penalties of up to 500,000 as a deterrent for non-compliance.Launched the BC Mine Information website to increase transparency of mining regulatoryoversight.Completed cross-jurisdictional research to inform restructuring of the Ministry’s miningregulatory oversight and creation of a second mining division to separate compliance andenforcement away from authorizations.Budget 2019 invested 20 million over three years to fund up to 65 new staff and enhanceregulatory effectiveness through the creation of the Mining Health, Safety and EnforcementDivision (MHSED) (reference page 9 for more information).Established a Standing Code Review Committee to ensure regulation for mining in B.C. isupdated and modernized.Established the Abandoned Mines Branch (reference page 25 for more information).First Mines Act prosecution in two decades and first ever administrative monetary penaltyissued under Mines Act. Mines Act amendments came into force, creating separate statutory decision makers forpermitting (CPO) and health, safety and enforcement (CIM).Established the Chief Auditor and audit function, and appointed the first Chief Auditor.Updated compliance and enforcement provisions under the Mines Act. First revision of the Code by the Standing Code Review Committee.First audit released on April 1, 2021.12

Continuous ImprovementCIM Annual ReportQuick Stats30% 20Mincrease ininspectionsfrom 2016-2019budget liftover 3 years(2019-2021)1st 400K in AMPs collectedsince 2017*prosecution underthe Mines Act in20 yearsImproved Tailings Storage Facility (TSF)SafetyRevisions to the TSF provisions of the Codewere implemented in July 2016. Theserevisions were based on recommendationsprovided by the Independent ExpertEngineering Investigation Review Panel(IEERP) and the Chief Inspector of Mines,and included requirements related to theEngineer of Record, Independent TailingsReview Board, Tailings Storage Facility Qualified Professional, andDam Safety Inspections.Budget Lifts & Restructuring to Improve Regulatory Effectiveness Budget 2017: created Mines Investigation Unit (MIU); added resources for increased Complianceand Enforcement (C&E) support; launched the Natural Resource Inspection System (NRIS).Budget 2019: created Mines Health, Safety and Enforcement Division and the Mines Audits,Effectiveness and Digital Services Unit; provided a significant resource increase for health andsafety; established Standing Code Review Committee.Increased Transparency & Improved Digital Systems Launch of the BC Mine Information website (BCMI) for increased public transparencyLaunch of the Natural Resource Inspection System (NRIS) for use by inspectorsLaunch and ongoing development of a new data management system for regulatory information,including an industry portal, MineSpace, for document submissions.To learn more about EMLI’s digital systems, see page 28 of the report.As of April 8, 2021*13

Continuous ImprovementCIM Annual ReportMines Act AmendmentsAmendments to the Mines Act came into forcein August 2020, further strengthening andmodernizing mining oversight. This includedseveral targeted Mines Act amendments tostrengthen investigation authorities, clarify offenceprovisions and give EMLI more tools to hold minesaccountable. These amendments created the roleof the Chief Permitting Officer, officially separatingthe permitting authorities away from health,safety, compliance and enforcement authorities.The amendments also created the role of the ChiefAuditor, separate from other regulatory authorities,with a mandate to evaluate the effectiveness of theprovincial regulatory program for mining.BeforeAfterChiefInspectorof MinesPermitting, Health & Safetyand EnforcementChiefPermittingOfficerChiefInspectorof MinesPermittingHealth & Safety,Compliance &EnforcementChief AuditorAudit function (new)AuditsIn 2020, EMLI introduced the role of the Chief Auditor. This position leads a dedicated team withinthe Ministry to evaluate the effectiveness of the regulatory system for mining in BC and make publicrecommendations to Government. This team is independent of the other regulatory functions of theMinistry.Standing Code Review CommitteeIn 2019, EMLI established a Standing Code Review Committee to review B.C.’s mining regulations in lightof evolving trends and to ensure strong protection for health, safety, and environment at mine sites.The committee has equal representation from Indigenous communities, labour and industry. The firstrevisions, unanimously recommended by the committee, came into force April 1, 2021 and the work ofthe committee is ongoing.2021 Code RevisionsIn 2021, eight unanimous revisions to the Code were made to improve health and safety at BC mines,reflect the August 2020 amendments to the Mines Act, and recognize the introduction of the CPO.More information on the recent Code revisions and the Standing Code Review Committee can be foundhere: odereviewThe updated online version of the Code can be found: ocuments/health-and-safety/code-review/feb2021 health safetyreclamation code 2021 rev.pdf14

Regulatory OversightCIM Annual ReportRegulatory OversightCoThe Ministry has adopted the Natural ResourceCompliance Management Framework as amodel for its regulatory oversight activities. ThisFramework includes a continuous improvementelement and sets out key factors for: nti nu o us I m p r o v e g requirements (permitting, Code requirements)promoting requirements (education about the rules)verifying compliance (inspections, compliance reviews); andenforcing compliance (issuing orders, enhanced enforcement tools).EnforcementCompliance ManagementAs a general approach, the Ministry has prioritized inspections inFrameworkconsideration of site and operational risks, to ensure that inspectionresources are appropriately and effectively allocated. In 2020, the Ministry moved to standardize and formalize anannual risk-based inspection planning approach for mines across the Province. Risk considerations, in combinationwith inspection resources, determine the inspection plans. Planned versus actual inspection goals are monitored andadjusted as necessary.Factors considered in the risk-based approach include:OperationalStatusType ofOperationSizeof MinePhase ofOperationsElectrical, ergonomics, geoscience, geotechnical, occupational health and reclamation.1Discipline-specificfactors establishedfor each inspectionspeciality1ComplianceHistory15

Regulatory OversightCIM Annual ReportPhoto: Inspection at Red Chris Mine in north-west BC.Inspections FY20/21Major Mines:Regional: General Compliance General Compliance1330661 H&S Specialities H&S Specialities Technical Compliance Technical Compliance227812335963 COVID Protocol Checks338For more information oninspections during COVID,see page 11.General Compliance includes: health and safety(H&S), permitting2H&S Specialties include: mechanical, electrical,ergonomic, occupational health3Technical Compliance includes: reclamation,geotechnical, geoscience1Mines Investigation Unit (MIU)The Mines Investigations Unit (MIU) was introduced in 2017. A team of investigative professionals, the MIU investigatesserious incidents to determine what happened, why it happened and make findings for prevention. Investigationfindings may lead to industry Hazard or Safety Alerts to ensure critical safety messages and learnings are sharedacross industry. Where the causes of an incident are due to significant non-compliances, the MIU may recommendan administrative monetary penalty or write a report to Crown Counsel. The MIU may also assist inspectors regardingescalated enforcement for non-compliances encountered during inspection activities and associated follow-up.In 2020/21, the MIU completed 11 reports recommending administrative monetary penalties. These reports aresubmitted to a delegated decision maker and go though an administrative hearing process that allows the namedparty an opportunity to be heard before a finding is rendered. Five decisions were issued in this reporting period. Alldecisions are published to the BC Mine Information website following a 30-day appeal period.More about the MIU can be found here: investigations-unit16

Indigenous EngagementCIM Annual ReportIndigenous EngagementReconciliat

CIM Annual Report Mining in BC Mining in BC Mineral exploration, mining and related sectors in BC provide jobs for more than 30,000 people in communities throughout the Province and add millions to BC's economy every year. EMLI aims to support a sustainable, responsible and competitive mining sector that supports

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