Nova Scotia may lift uranium mining ban

Resource developers in Nova Scotia are all abuzz over the possibility of opening the province to uranium mining given recent encouraging remarks from Nova Scotia Premier Tim Houston.

The province has maintained a moratorium on uranium mining since 1981. However, in response to concerns over the expected U.S. tariffs on Canadian goods, Premier Houston raised possibilities over local natural resource development.  Nova Scotia has imposed bans on uranium mining, natural gas fracking despite sizable deposits, and has maintained a moratorium on oil and gas exploration on the lucrative fishing grounds of Georges Bank.

Premier Houston stated in an interview with CBC News last week, "We must take the 'no' out of Nova Scotia.”

“Special interests have captured too many parts of our economy and have had an outsized voice in policy creation. That must end. Outright bans of entire sectors are lazy public policy and we will reverse bans and focus on meaningful, mature discussion."

The Mining Association of Nova Scotia has been a long advocate for uranium mining in the province. Nova Scotia’s mining and quarrying industry employs 5500 Nova Scotians, mainly in rural areas. The premier has not explicitly said he will left the moratorium on uranium mining, but many are interpreting his willingness to re-visit resource bans as an invitation to re-evaluate uranium mining.

In his comments to media, the Nova Scotia premier stressed that, "I will look at what can be done safely. That's the lens."

Sean Kirby, head of the mining association, said in media reports, "There is huge need globally for uranium and Nova Scotia has potential to provide it. So, we should lift the ban and allow exploration for it to start again so we can see whether we're actually able to have economically viable mines."

Kirby said the modern mining industry does an “excellent job” of taking care of the environment and operates with the highest standards. Some environmentalist organizations – such as the Ecology Action Centre in Halifax - told CBC News that mining is the "one of the most polluting industries in the world."

Nova Scotia has significant uranium potential. Between 1976 to 1981, the Atlantic province had a boom in uranium exploration. Explorers and developers documented many uranium occurrences all over Nova Scotia. The provincial government imposed a moratorium on this exploration and development moratorium in the middle of an election campaign. The long-standing moratorium became a formal ban in 2009 when the legislature passed a law prohibiting uranium mining and exploration.

Back in 1994, the government revisited the issue of the uranium mining ban. The government tabled an interdepartmental committee of government report in 1994 that called for end of the ban. The committee justified its recommendation by citing a general lack of scientific evidence that the environment or public would be harmed by uranium mining. 

Readers can find the interdepartmental committee report on uranium mining in Nova Scotia here.

Some public policy experts have long pointed out the equalization formula used in Canada’s federation acts against natural resource development in so-called “have not” provinces (i.e., provinces that are annual net recipients of equalization payments).

They highlight how government – in current transfer formulas – treats natural resource revenues (including mining duties) within the calculation of equalization and fiscal capacity gap. Equalization refers to the fiscal system within Canada to ensure provinces have the fiscal capacity to deliver programs to their citizens on a roughly comparable basis.

More information on the Mining Association of Nova Scotia’s position on uranium mining is posted on www.Tmans.ca/uranium.