$30M uranium buyout sparks accusations

The B.C. government's settlement to cancel a uranium mining claim cost millions more because of political interference, NDP MLAs say.

Energy and Mines Minister Rich Coleman

VICTORIA – The B.C. government’s out-of-court settlement to cancel a uranium mining claim in the Okanagan cost millions more because of political interference, NDP MLAs said in the legislature Monday.

The government announced its $30 million settlement with Vancouver-based Boss Power in a news release last week, at the same time as the federal government prepared to announce shipbuilding contracts in B.C. and Nova Scotia.

NDP leader Adrian Dix demanded to know who intervened to stop the inspector of mines from considering a permit application from the company to begin work on a uranium deposit near Kelowna.

A mining tenure was issued for the deposit under the Social Credit government in 1976. The touchy issue of nuclear power and uranium was reviewed in 1979, and an eventual moratorium lasted until 1997. In 2008, the B.C. Liberal government’s energy plan formally ruled out nuclear power and uranium mining, and when Boss Power applied for work permits, they were ignored.

“It’s in the court documents that the deputy minister instructed the inspector of mines not to consider Boss Power’s application,” Dix told the legislature. “It’s crystal clear that the inspector of mines sought advice from the government’s own lawyers, who told him the law required him to consider the application. Yet the inspector of mines was still instructed to ignore the application despite the fact his superiors knew this to be against the law.”

Energy Minister Rich Coleman said the government’s refusal to allow uranium mining was made plain by legislation, and ministry staff would have been instructed accordingly. The province negotiated compensation for Boss Power for mining rights granted and then taken away, he said.

NDP energy critic John Horgan said the permit application was refused because any action on the uranium claim would have created a “political firestorm” for then-mines minister Kevin Krueger in the 2009 B.C. election. The government intervened “to protect the backside of the member from Kamloops South,” Horgan said.

Horgan said buying out the uranium claim would usually mean repaying “sunk costs” of the owner, which he estimated at $5 million. The payout was inflated because the government interfered in a legal process and exposed itself to punitive damages, he said.

Just Posted

PHOTOS: Surrey crews battle house fire in Cloverdale

Drivers urged to avoid area after fire in 17200-block of 58th Avenue

UPDATED: Three people hurt after vehicle flips over in Surrey

Police say injuries were minor in Tuesday morning crash at 64th Avenue and 138th Street

UPDATE: Star Delta baseball player, 14, dies in hospital after suffering head injury

Tsawwassen resident Kyle Losse played for Delta Tigers AAA team

Unexpected noise, pollution and machinery frustrate White Rock business owners

Russell Avenue merchants say they received no advance notice

Third site of homeless housing project may be across from Surrey rec centre

This would be the third and final location for 160-unit modular housing project in Whalley

Tsunami warnings 101: Canada

Here are some things to know about tsunami alerts in Canada and how they work

Homeless evicted from First Nation reserve land say they have nowhere to go

‘Why not just let us stay until spring?’ one camper at Chilliwack site pleads

Andrew Scheer on trade, Trump and Trudeau

Canada’s Conservative leader begins three-day visit to B.C.

Victims restrained, sex toys and cash stolen from B.C. adult store

Armed suspects sought in adult store robbery

UPDATED: 10 Safeways in Lower Mainland to close

Locations in Vancouver, Burnaby, Surrey, Coquitlam, Richmond and Mission slated to shut

Vancouver Islanders ponder need for tsunami siren song

Alarm sounds in Port Alberni but not at the DND base in Esquimalt

Five charged in bid to shut pop-up pot market in Vancouver’s Robson Square

Marijuana flower, edibles, money and some weapons were seized as part of weekend raid

Babcock, Goyette and Smyth honoured at Order of Hockey in Canada

Mike Babcock, from Saskatoon, guided the Detroit Red Wings to a Stanley Cup in 2008

Bell Canada alert prompts RCMP, privacy watchdog to probe data breach

Company spokesman: ‘Fewer than 100,000 customers were affected’

Most Read