Yukon gov't restructures mines department to better support mining companies

The Yukon government announced this week it is splitting the mines part of the Department of Energy, Mines and Resources into two new branches: major mines and mineral exploration. 

It said the goal is to make the territory more “competitive, predictable and attractive” for mining investors. 

A new major mines and technical services division will focus on guiding mining companies – especially those with large projects – through the permitting process.

“This can help guide them through what sometimes seems like a myriad of red tape for either Government of Yukon or federal processes or the environmental assessment process,” said Mines Minister Ted Laking. “This is really just about improving our services, ensuring that our clients have support and understand what the steps are and what they’re required to do.” The second division will focus on permitting quartz and placer exploration, “while respecting consultation obligations with Yukon First Nations.” 

The government is also establishing a deputy minister’s oversight committee, which will hold meetings with deputy ministers from all departments that have a role in large development projects.

“It’ll be regular meetings for folks to stay on top of these files and say, 'OK, where are we at on this, what’s the stall here, who are we waiting to hear back from?' … and continue to shepherd those things through the system,” said Laking. 

Laking would not rule out new hires, but he said the intention is to restructure, not grow, the department.

Tim Warman, CEO of Fuerte Metals which owns the Coffee Gold project south of Dawson City, said this and other Yukon government announcements were “encouraging.”

“For this project in particular, it’s been in permitting since 2017, and we’re coming up on the 10 year anniversary of that,” said Warman. “And that’s a long time for companies to continue investing in projects without the certainty that permitting creates.”

Warman said other obstacles for mineral investment in the Yukon are the lack of infrastructure and potential energy shortages. He expressed enthusiasm about the potential Yukon-BC grid connect project. 

“I think that would help a lot of projects because obviously generating your own power at site is not the optimal way to do it,” said Warman. “It’s much better to be connected to the local grid.” 

When asked why the change would come ahead of new mineral resource legislation – and a modernized royalties regime that ensures the government sees more than just a small fraction of revenue from new mining projects – Laking said updating the legislation is a “significant priority.” 

“We're just not in a position today to announce anything, but we’re hopeful to be in the near future,” he said. 

Laking also said his federal counterpart, Minister of Energy and Natural Resources Tim Hodgson, expressed the “need and expectation” for provincial and territorial officials to move more quickly on major projects during meetings this week in Toronto.