Rio Tinto Alcan has applied for environmental approval to finish the tunnel that had been part of the controversial Kemano Completion Project - a project that faced intense local opposition more than a decade ago over impacts to the Nechako River.
Work on the tunnel stopped in 1995 after then-premier Mike Harcourt revoked Alcan's water license to divert a large portion of the Nechako River to the hydroelectric power station at Kemano.
The government decision came after intense public pressure from environmentalists and First Nations about the impact on salmon and other fish in the Nechako and Fraser rivers.
Paul Henning, Rio Tinto Alcan vice-president of B.C. operations and Western Canada strategic projects, said the company is not attempting to finish the controversial project, just the tunnel.
The plan is not to increase the amount of water being diverted, but to provide a backup to the 16-kilometre water tunnel which was built in the 1950s, he said.
"[The tunnel] would be connected to the existing power station," he said. "It doesn't increase our generation capacity. The restriction is not additional generation capacity, the restriction is the water license."
DUE DILIGENCE NEEDED: FIRST NATIONS
Henning said the company realizes the Kemano Completion Project is a sensitive subject. Rio Tinto Alcan is preparing information about the project and planning to present it to First Nations, communities and other stakeholders starting later this summer.
"We've chatted at a high level with the First Nations we talk with most," Henning said. "It's time to go to another level of detail."
Carrier Sekani Tribal Council Chief David Luggi said the first he heard about the project is when media called him on Tuesday. The Carrier Sekani Tribal Council, under the leadership of Justa Monk and others, was a vocal opponent of the Kemano Completion Project in the late 1980s and early 1990s.
"It seems to be another chapter in the ongoing story of this project," Luggi said. "We have to do some due diligence and look at the specifics of the permit before we come to any conclusions."
In October, the Supreme Court of Canada ruled Rio Tinto Alcan and B.C. Hydro didn't have an obligation to consult the Carrier Sekani Tribal Council about a power sale deal.
The Carrier Sekani maintain the diversion of water from the Nechako River to Kemano is a violation of their right and land title in the region, and no consultation ever took place.
The creation of the 90,000-hectare Nechako Reservoir flooded land traditionally used by First Nations people.
TUNNEL COMPLETION 'BEST LONG TERM OPTION'
Rio Tinto Alcan is currently in the middle of a $2.5 billion upgrade to its Kitimat aluminum smelter. Once complete in 2014, the modernized smelter will be able to produce 420,000 tonnes of aluminum per year, from from the 280,000 tonne current capacity.
Currently Rio Tinto Alcan sells surplus power from the 790 megawatt Kemano power station to B.C. Hydro. Once the modernization is complete, the smelter will use nearly all of Kemano's output.
"If you are modernizing the smelter for 40 to 50 years time, what about Kemano?" Henning said. "The powerhouse is in great shape. But one area we haven't been able to assess is the tunnel."
Between last year and this spring, small submarines were able to inspect five kilometres, less than a third, of the tunnel length, Henning said. To do the inspections, water flow in the tunnel had to be reduced to less than 10 per cent for five hours.
The company has essentially three options regarding Kemano: do nothing and hope there are no problems in the future, shut down the tunnel for six to nine months to do a complete physical inspection during the downtime while the new plant is being constructed, or complete the second tunnel as an auxiliary.
"It's not the cheapest option of the three, it's probably the most expensive, but it's the best one for the long term," Henning said. "It allows both tunnels to work simultaneously, or to shut down either one for maintenance."
Shutting off the water could create new problems in the tunnel and would impact water levels on the Kemano and Nechako rivers.
POSSIBLE REVIEW UNDER REVIEW
A spokesperson for the Ministry of Forests, Lands and Natural Resource Operations said FrontCounter BC has received three permit applications from Rio Tinto Alcan - an investigative use permit for geotechnical drill holes, a road use permit and a short-term water use permit.
The Environmental Assessment Office is reviewing the information its received to determine if the proposal requires a review under environmental assessment legislation.
The ministry anticipates the initial staff review will take about one month, before a decision to formally accept the applications can be made.
