Mt. Polley triggers Canadian soul-searching on how to regulate the mining industry

Dead in the water?

The Mount Polley catastrophic tailings spill of last summer in western Canada has led to a new round of news stories, discussion and debate in Canada about how to regulate their mining industry.

The Mount Polley spill was one of the worst mining spills in the history of Canadian mining and raises questions of whether the current ‘light touch’ regulatory regime really works. Search warrants for Imperial Metals were carried out last week following the report from an independent panel which found evidence of design flaws but said it could not conclude anything about management culpability.

Particularly damaging for advocates of self regulation, the Mining Association of Canada refuses to release details of the self-assessment the Imperial Metals gave itself before the spill, no doubt because it shows they gave themselves a clean bill of health. The report was effectively just about the paperwork and not whether the plans were actually being followed and not checked by independent parties.

The consequences of this investigation could be very wide ranging and affect mining worldwide with increased requirements for third-party verification and more stringent tailing management in coming years. Industry commentators in Canada are already working hard to argue that regulators should not overreact.

One take home from all of this: CSR in the extractive sector starts with effective environmental management. Without this, CSR is dead in the water.

Image from CBC.