Province turns down controversial Sio Silica sand mining project Premier, climate change minister cite concerns about drinking-water safety, unproven technology for decision By: Chris Kitching and Danielle Da Silva Posted: 10:19 AM CST Friday, Feb. 16, 2024 Last Modified: 5:42 PM CST Friday, Feb. 16, 2024 Updates

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ANOLA — The Kinew government has rejected Alberta-based Sio Silica’s controversial plans for a major sand mining project east of Winnipeg, citing concern that the safety of drinking water in the region could not be guaranteed.

Premier Wab Kinew and Environment and Climate Change Minister Tracy Schmidt announced the NDP government’s decision to turn down the company’s application for an environmental licence Friday morning.

The decision was met with cheers and applause from residents and opponents of the project who were invited to attend the announcement at the Anola Community Club, about 35 kilometres east of Winnipeg.

“Today, we are saying no to Sio,” Kinew said. “This means Sio Silica will not be able to mine silica sand in this region. They will not be able to drill into the aquifers, and Manitoba families can rest easy, knowing that your drinking water will stay pristine.”

The plan to drill up to 7,200 wells over 24 years to extract high-quality silica from in and around the Rural Municipality of Springfield has been met with resistance since first proposed in 2020, with residents raising fears the extraction effort could affect drinking water.

Nearly 100,000 Manitobans source their drinking water from aquifers in the region.

The former Progressive Conservative government did not make a licensing decision before the fall provincial election, saying it required more time to study the project after receiving a report from the Clean Environment Commission in June.

In its review of the proposal, the CEC could not state, with confidence, that potential environmental impacts of the project had been fully considered or that there is an adequate plan to prevent and mitigate problems.

The project was the source of renewed controversy in December when Kinew accused the PCs of trying to rush approval of the mine during the transition period between governments immediately after the election, a breach of what’s known as the caretaker convention.

The accusation was later corroborated by former PC cabinet ministers Kevin Klein and Rochelle Squires.

NDP caucus chair Mike Moyes has lodged ethics complaints against PC MLA Jeff Wharton and former premier Heather Stefanson and an investigation is underway. Stefanson and Wharton have denied allegations they breached the convention — the period when the legislature is dissolved and the outgoing government cannot be held accountable for major decisions.

“After balancing the considerations of the serious environmental risk and the proposed business case, we’re deciding that on the merits of this project to say no.”–Premier Wab Kinew

Kinew said the government rejected the Sio Silica application based on a review of the environmental risks and economic impacts. Events leading up to the ethics investigation played no part in the licence decision, he said.

“We’re separating the politics from this decision-making,” he said. “After balancing the considerations of the serious environmental risk and the proposed business case, we’re deciding that on the merits of this project to say no.”

Kinew described the extraction technology Sio Silica proposed to use as unproven.

“The business case of this project does not outweigh the serious environmental risk this project poses and the impact it could have on the drinking water of this community and many others in the region,” the premier said.

The decision followed months of careful review by the government and the Clean Environment Commission, Schmidt said.

Serious concerns and unknowns about the project were identified, she said, adding the risks are too great to issue even a graduated licence to extract silica sand.

“No one knows what the long-term effects of this proposal would be and, frankly, the worst-case scenarios would be absolutely devastating,” she said.

However, Schmidt refused to answer questions about advice or recommendations she received from the environmental approvals branch regarding the application. The branch assesses proposals and issues approvals to ensure that potential environmental impacts do not adversely affect human health and the environment.

Schmidt said the department does not make recommendations to the minister and there was no consensus opinion among experts tasked with reviewing the proposal.

“This is a decision that I have made here today,” she said.

The mining project offered “limited economic opportunity” by way of jobs, revenues, taxes and royalties, she added, but did not elaborate.

Sio Silica chief executive officer Faisal Somji issued a statement Friday calling the decision “political and not based on science or facts.”

The company claimed it received a draft licence from the approvals branch with a phased approach requiring initial multi-well testing, data collection and a cumulative effects assessment, prior to ramping up extraction.

It is now reviewing its legal options, according to the statement.

Opponents of the project, meanwhile, hailed the announcement.

Janet Nylen said decision-makers have finally realized the need to prioritize safe drinking water, above all else. However, the community will continue to monitor what happens next with the silica deposit.

“I hope, if anything, this has shown us that you have to engage the public and have all the information out before you make decisions,” said Nylen, a member of Springfield Taxpayer Rights — Save Our Water. “We’ll keep organizing. We’ll keep our eyes on it.”

RM of Springfield Coun. Andy Kuczynski said he admires the government’s concern for drinking water and the environment.

“That reflects that the government really cares about people who live here, their livelihood, the farming community and everybody else,” Kuczynski said. “We need minerals, we all understand this, but we have to protect our environment.”

Springfield Mayor Patrick Therrien said he supports the decision to dismiss the application. He said he stayed neutral through the process, which became highly contentious.

“We always said we would not accept the process unless it was safe for our residents,” he said. “We left it to the province to make that decision. If it had gone the other way, we’d have to go with what the province’s decision would have been.

“I’m just happy Mr. Kinew made a quick, but informed, decision.”

Both Schmidt and Kinew were clear the NDP government has not ruled out silica mining in the region.

They pointed to the NDP’s approval Wednesday of an open-pit silica mine near Hollow Water First Nation as evidence of the government’s commitment to critical mineral development “when it’s done right.”

“This is a valuable resource here in Manitoba and we’d certainly work with experts, environmentalists, the department to review any future proposals,” Schmidt said.

Interim opposition leader Wayne Ewasko said the Tory caucus respects the decision but is looking for more details about how the NDP government arrived at its determination.

“It would be beneficial to everybody involved, not only stakeholders, partners, but definitely residents of the area, (to explain) why that was necessarily done,” Ewasko said.

“If this was solely the minister’s decision, that would be interesting, considering I’ve said on multiple occasions that I’m not an expert on the topic, and I rely on science and those experts to provide the best known advice.”

Meantime, PC MLAs engaged in the ethics investigation are being strongly encouraged to follow, and be open to, the ongoing process, Ewasko said.

Klein, the former PC environment minister, could not say what decision he would have made on the licence, not knowing the expert advice given to the new minister after the Tories left office.

If any lesson was learned, it should be that governments need to rely on experts, said Klein, who lost his seat in the October election.

He said he hopes the decision was based on science, not politics.

“Elected officials shouldn’t make these decisions. They should be evidence-based,” he said. “That’s why I didn’t allow the licence to go through.”

Ultimately, water safety and quality are paramount, he said.

chris.kitching@freepress.mb.ca

danielle.dasilva@freepress.mb.ca

Chris Kitching
Reporter

Chris Kitching is a general assignment reporter at the Free Press. He began his newspaper career in 2001, with stops in Winnipeg, Toronto and London, England, along the way. After returning to Winnipeg, he joined the Free Press in 2021, and now covers a little bit of everything for the newspaper. Read more about Chris.

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