Kamloops city council and KGHM ink benefits agreement | iNFOnews | Thompson-Okanagan's News Source

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Kamloops city council and KGHM ink benefits agreement

July 17, 2017 - 11:04 AM

KAMLOOPS – If the Ajax Mine is approved by the provincial and federal government, the City of Kamloops stands to receive $3.8 million a year from the project.

The City and KGHM Mining Inc. have agreed, in principal, to a community benefits agreement. The agreement took 18 months for the two groups to come to, according to a City of Kamloops media release, and while it’s still not formalized — because the mine hasn’t been approved yet — both sides have agreed to the terms.

The deal includes $1 million to offset the costs of a mine operating neighbouring the city, $1 million to offset industrial taxes and $1.8 million to go towards a variety of community projects including affordable housing, local healthcare and social services, according to a letter to the mining company from the City.

Additional costs, like landfill tipping fees, aren't included. The City will also have first-right-of-refusal on firefighter training for mine employees.

If the mine were located inside city limits, it’s estimated taxes would cost the mining company $6.5 million annually, according to the letter. If the City’s boundaries change to include the mine, new negotiations will have to happen.

In a letter to the city, KGHM Ajax project manager Chris Wild says the company accepts the outlined agreement. Of the $3.8 million, $300,000 will be managed by the mining company.

City council met today, July 17, and voted against the mine, though the decision will have no legal standing on the mine’s approval process. It will help inform federal and provincial ministers, though.

Find past stories on the proposed Ajax mine here.

— This story was updated on July 17 at 11:51 a.m., to include city council's official vote on the project. 

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