CASE NUMBER: 109
CASE MNEMONIC: GEDDES
CASE NAME: Geddes Cooper Mine I. IDENTIFICATION
1. The Issue
The Canadian mining company Geddes Resources Limited has attempted unsuccessfully to develop a mining operation on Windy Craggy mountain in northwestern British Columbia for approximately the last 6 years. They have determined that the Windy Craggy site has such a large deposit of copper ore that a mining operation would provide a significant number of jobs for the local economy. Environmentalists are concerned about Geddes' operation because the copper ore at Windy Craggy has a particularly high concentration of sulfur, which when exposed to air, oxidizes to form a dangerous acid and gas. The environmentalists worry that the safety measures that Geddes proposes to use in extracting the ore, such as a tailings' pool with two dams, will not sufficient protect the local Tatshenshini watershed. Compounding the dilemma is the large amount of seismic activity of the area. Moreover, the road that Geddes wants to construct follows the Tatshenshini river so closely that trucks could easily be drawn into it. In addition to the potential pollution of the Tatshenshini and Alsek rivers, toxic fallout from a proposed Geddes mine would destroy the habitat of one of the largest concentration of grizzly bears in Canada. Also damaged would be the winter range of the Dall sheep, and the habitats of mountain goats and wolves. In addition, a Geddes mine could harm the salmon in the two rivers and the bald eagles in the Chilkat Bald Eagle Preserve; a preserve approximately 50 miles downstream of the potential mine site.
2. Description
Since 1988, the Canadian mining company, Geddes Resources Limited, has tried to gain approval from the Canadian Government to extract ore, mainly copper. The cite of extraction is Windy Craggy, a 6,200 foot high mountain in northern British Columbia just about 50 miles from Glacier Bay National Park and Preserve in Alaska. In order to make the project successful, Geddes has said that it needs to construct a 70-mile road from the site at Windy Craggy to the Haines Highway so that up to 150 trucks a day can carry ore from the site. When this road concept met with opposition, Geddes alternatively proposed constructing an almost 150-mile slurry pipeline to carry a mixture of ore and water to Haines, Alaska. Once at Haines, the ore would be filtered off and sent to Asian smelters.
Environmentalists have been extremely concerned about Geddes plans from the very beginning, and in November, 1991 more than 50 groups banded together to form Tatshenshini International -- an opposition campaign. The environmentalists' goal is to make the Tatshenshini watershed area, of which Windy Craggy is a partly a wilderness preserve. They fear that if Geddes is allowed to extract ore from Windy Craggy, it could destroy the ecosystems of the surrounding region. As previously stated, the ore at Windy Craggy has a high sulfur content, around 35 percent, when this is exposed to air it oxidizes to form sulfuric acid and sulfur dioxide gas. In order to prevent any such oxidation, Geddes has proposed to construct a dam to sink potentially hazardous tailings.
Windy Craggy is located in one of the most seismically active regions of North America and environmentalists question whether the two dams proposed to hold the lake could remain intact in an area where low-level quakes occur almost daily. In addition, the Geddes proposed road to the Haines highway follows the Tatshensini for almost 12 miles with many treacherous curves. Environmentalists question whether the enormous amount of large-sized truck travel on this road is safe and whether the 150-mile long slurry pipeline could sustain damage from constant small tremors.
The Canadian Government turned down Geddes' initial mine proposal in July 1990 because of public opposition and problems with the drainage system for the mine. This was after the company had already built an air strip and base camp at Windy Craggy and by early 1992, Geddes had submitted another proposal. Coincidentally, the conservation organization American Rivers ranked the Tatshenshini the second-most-endangered stream in North America. In April of 1992, Senator Al Gore of Tennessee and Representative Wayne Owens of Utah introduced joint resolutions in the U.S. Senate and House of Representatives calling on the Secretary of Interior, in cooperation with the Secretary of State to enter into agreements with Canada to protect the Alsek and Tatshenshini rivers. Senator Gore also called for the Secretary of Interior to ensure that Glacier National Park and Preserve was not degraded by potential mine developments in Canada. The resolution also suggested that Geddes mine proposal be taken up by the International Joint Commission, which handles U.S.-Canada trans-boundary issues (see SMELTER case).
The action in the House and Senate motivated both the Canadian and British Columbian governments to act on these matters. By mid-April of 1992, British Columbia's Minister of Energy, Mines, and Petroleum Resources Anne Edwards stated that the future of the Tatshenshini watershed would be handled in two stages. First, a full land-use evaluation would be conducted to determine whether preservation or mineral development should occur. Then, if mineral development was determined to be safe, a "rigourous review" of Geddes' proposal would take place. Geddes was economically impeded by this ruling and was forced into labor cutbacks, but maintained its intent to develop Windy Craggy. However, by the beginning of 1993 Geddes had announced quite frequently that it would be willing to relinquish its claim at Windy Craggy for $1 billion.
In December of 1992, the United Nations made Glacier Bay a World Heritage site. This placed added pressure on the government of British Columbia to not approve the Geddes' mining proposal. The British Columbian government finally declared in June, 1993 that the region around the Tatshenshini river would be preserved as the Tatshenshini-Alsek Wilderness Park rather than be opened to mining.
It was concluded that if mining was ever allowed at Windy Craggy, it will definitely threaten one of the largest and densest populations of grizzlies in the world. It will also threaten the only winter range of the Dall sheep in British Columbia. In addition, it will threaten the salmon population of the Alsek and Tatshenshini rivers, which is the main resource of food for the Chilkat indian tribe which lives in just across the border from the Tatshenshini watershed area (see SALMON and LUMMI cases).
3. Related Cases
Keyword Cluster
(1): Trade Product = MINerals
(2): Bio-geography = CANADA
(3): Environmental Problem = HABItat Loss
4. Draft Author: David B. Higgins
B. LEGAL Clusters
5. Discourse and Status
6. Forum and Scope
Government of British Columbia,1 House and Senate joint resolutions H.J.Res. 460 and S.J.Res.290 of April, 1992.
7. Decision Breadth: 2 (USA and Canada)
8. Legal Standing: LAW
C: GEOGRAPHIC Clusters
9. Geographic Location
a. Geographic domain: North America [NAMER]
b. Geographic site: Western North America [WNAMER]
c. Geographic impact: CANADA
10. Sub-National Factors: YES
11. Type of Habitat: COOL
D. TRADE Clusters
12. Type of Measure: Regulatory Ban [REGBAN]
In June of 1993, the government of British Columbia declared that the Tatshenshini river area would be preserved as the Tatshenshini-Alsek Wilderness Park and that no mining would be allowed in the Park by Geddes or any other company.
13. Direct vs. Indirect Impacts: INDirect
14. Relation of Measure to Environmental Impact
a. Directly Related: YES COPPER
b. Indirectly Related: YES WOOD
C. Not Related: No
d. Process Related: YES Pollution Land [POLL]
15. Trade Product Identification: COPPER
16. Economic Data
Canadian copper industry output in 1992 was 7.8 billion dollars. Northgate Explorations Limited the, parent company of Geddes Resources Limited, made approximately 17.5 million in 1993.
Geddes was going to employ 600 permanent employees on the project.
17. Impact of Measure on Trade Competitiveness: HIGH
The cost is $178-534 billion dollars over 30 years using price of copper at $.89/lb. The British Columbian government's ban on mining in the Tatshenshini river area makes it so that no company can exploit the copper reserves at Windy Craggy and make any money in trade. However, the fact that the Windy Craggy site will not be exploited has had virtually no discernable effect on the price of copper on the world market.
18. Industry Sector: MINing
19. Exporters and Importers: CANADA and USA
The Phelps Dodge Company and Cyprus are two of the largest U.S. copper companies importing copper from Canada (see COPPER case).
E. ENVIRONMENTAL Clusters
20. Environmental Problem Type: HABItat and Species Loss
21. Name, Type, and Diversity of Species
Diversity: 3,270 higher plants per
10,000 km/sq (Canada)
This area contains the highest population of grizzlies in world. In addition, there are black bears, Dall sheep, mountain goats, wolves, moose, bald eagles, and 3,500 salmon.
22. Resource Impact and Effect: HIGH
23. Urgency of Problem and Lifetime: LOW and 100s of years
Only the bald eagle is in danger of extinction. the lifetime of the grizzly bear is 15-30 years, the black bear 15-30 years, the Dall sheep 12 years, moose 12 years, the mountain goat 8 years, wolves 5 years, and salmon 2 years.
24. Substitutes: RECYCling
F. Other Factors
25. Culture: YES
If Geddes had been allowed to develop the Windy Craggy site, its operations would have had a great potential to destroy the hunting and fishing lifestyle of the Chilkat and Yakutat Tlingit tribes in the area.
26. Trans-Boundary Issue: YES
The case has consequence for Canada and the United States.
27. Rights: NO
28. Relevant Literature
"Canadian Mine Poses Threat to Glacier Bay." National Parks 65 (September/October, 1990): 12-13.
"Canada Protects Vast Wilderness Region." National Parks 67 (September/October 1993): 12-13.
Darlington, David. "Copper Versus Grandeur." Audubon 94 (July/August, 1992): 84-91.
Holle, Eric. "Undermining a Mountain." Sierra 75 (July/August, 1990): 54-55.
Rauber, Paul. "No River Wilder." Sierra 78 (January/February, 1993): 34-41, 146-47.
"Resolution Calls for Protection of Rivers." National Parks 66 (July/August, 1992): 18.