Chapter 7. Uranium Mining in Northern Saskatchewan: A Public-Private Transition

Uranium development in Saskatchewan dates to the 1930s when the first discoveries were made in the far north — a very large, sparsely populated and very poor region of the province. Since that time, uranium exploitation has undergone several waves of investment and mining activity under changing regulatory frameworks. Two distinct approaches have been adopted in Saskatchewan towards uranium mining.

With the first approach, the federal and provincial governments both mined uranium and regulated the industry through crown corporations. Regulation from the distant national capital in Ottawa and the provincial capital in Regina focused primarily on the health and safety of workers. Social and economic benefits to the region were limited primarily to tax and royalty revenues plus short-term employment benefits outside the North. Few community benefits were experienced beyond the life of the mines.

The second approach followed several years of public inquiry into three key issues: the environmental safety of the industry; the levels of social, economic and community benefits available to the North; and, in particular, how mining affects the province’s remote Indian and Métis communities. These inquiries were undertaken with extensive consultations throughout the North, and by the 1990s, resulted in a tripartite framework involving government, industry, and communities. While the state remained responsible for a more open, transparent, cooperative, and consultative regulatory process, governments withdrew from production, being replaced by the private sector. The new framework led to increased:

Throughout the 1990s, the uranium mining industry had a major impact on the regional and community development of northern Saskatchewan. Benefits included:

Skills, procedures, and practices initially obtained from an increased involvement in uranium mining are now being applied to other sectors of the economy and society, including forestry, tourism, health care, and education. To some extent, mining companies have been catalysts for community development in the North. Company involvement with community issues and problems extends well beyond the requirements of the statutory obligations under the new expanded regulatory framework for uranium mining. Today mining companies are involved in nearly all aspects of community and regional development including education, health care, basic infrastructure, and economic development. As a result of these changes, public attitudes towards uranium mining have shifted, particularly in the North, from opposition and distrust towards cautious, and at times strong support.

Uranium in Saskatchewan

Saskatchewan

Saskatchewan is located in the Canadian prairies in Western Canada. The province is known as a breadbasket for the world with its production of wheat and barley from the southern grasslands. Under the prairie soil exist the world’s largest potash mines. The south is home for over 96 percent of the million people who live in the province.

The North is a land of lakes and forests, inhabited by First Nation Indian and Métis peoples whose first language is Cree and Dene/Chipewyan. Nearly 40 000 people live in the North, and in 1997, as Table 1 shows, 87 percent were indigenous peoples.

Table 1. Northern Saskatchewan population by ethnic origin, 1997.
Ethnic origin	Population	% Share
Registered Indian	21 847	58%
Métis	10 135	27%
Other aboriginal	751	2%
Non-aboriginal	4 805	13%
Total	37 538	100%
Source: Painter, M., and Lendsay, K., University of Saskatchewan, Saskatoon, 1999, Tables 1.1 and 1.2.

In size, Saskatchewan is a little larger than France. Through most of the 20th century the North’s 320 000 square kilometers has been home to extensive levels of uranium exploration, development, processing, and decommissioning. Most of the land and all of the mineral rights are owned by the Crown.

The majority of the high-grade deposits that have been discovered have been found at the unconformity of the sandstone, Precambrian shield, and overlying Athabasca sandstone. Higher grades of ore involve open pit and underground mining techniques, and due to radiological protection considerations, often need technologically sophisticated mining procedures.

Recovering uranium from these high-grade ore reserves in a manner that protects the workers, the environment, and the long-term well being of the public, required the development and implementation of state-of-the-art mining and milling techniques. This necessitated a highly skilled work force to support the industry.

Uranium development and investment

Active uranium exploration, development, and processing have been underway in northern Saskatchewan since the late 1940s. Valuable low-grade uranium ore was found in the Beaverlodge area on the north shore of Lake Athabasca. In the late 1960s uranium was discovered at Rabbit Lake and Collins Bay near Wollaston Lake, and in higher grades in the Carswell formation near Cluff Lake.

In 1975 higher grade discoveries were made as Key Lake and Rabbit Lake began production, and in 1983, high-grade discoveries were made near Cigar Lake. In 1985, Eldorado Nuclear Limited completed the reclamation and decommissioning of their Beaverlodge operations. In the 1990s projects involving new, very high-grade discoveries and expansions were proposed, reviewed, and started at Cigar Lake, Midwest Lake, McArthur River, McClean Lake, Rabbit Lake, and Cluff Lake. Decommissioning activities extended the periods of activity beyond the dates of mines actually closing.

A process of uranium exploration, mine construction and operation, infrastructure development, mill construction and operation, environmental management, decommissioning, and monitoring emerged. As Figure 1 shows, this led to a nearly continuous period of investment and employment activity through the 20th century that is predicted to continue well into the 21st century. By this time, the region will have been mined for over a century.

The uranium industry invested at least C $3.5 billion during the 20th century, with capital investment in mines of C $2.5 billion, and exploration and predevelopment expenditures exceeding C $1 billion. Adjusting for inflation, there have been three investment booms. The first small one came with the initial developments in the Beaverlodge area in the 1950s. The second and largest boom was in the 1970s, with the opening of the Cluff and Rabbit lake mines, and the third was in the 1990s with the development of the higher grade ores on the east side, as shown by Figure 2.

Figure 2. Uranium investment in Northern Saskatchewan, 1953–1998 (in constant 1986 C $).

Note: Total investment consists of exploration and pre-development expenditures plus capital investment expenditures. Deflated by index for gross fixed capital formation. 1986 = 100; Saskatchewan Bureau of Statistics, 1953–1998.
Source: Saskatchewan Mining Development Corporation and Eldorado Nuclear Ltd.

Uranium development in Saskatchewan has been highly controversial and politically contentious. During the early phases of its development in and following World War II, the resource was classified by the federal government as being of strategic military importance. The highly toxic nature of the mineral and its by-products led to further concerns over the health of mine workers as well as individuals and adjacent natural resources. Initially there was substantial opposition to uranium development from northern residents, communities, and Indian bands. However, through a lengthy process of consultation, discussion and negotiation, coupled with improved methods of public regulation and enlightened attitudes by companies (public and private), the public views towards the industry have shifted from opposition to guarded and even strong support.

The regional ecology and aboriginal values

Northern Saskatchewan is a land of lakes and low relief that has been shaped by several glaciations. The water in rivers and lakes shows few of the chemicals associated with development. The climate is harsh and cold winters can last eight months. Drainage from the region moves into both Hudson’s Bay to the Northeast and the Arctic Ocean to the Northwest.

Soils in northern Saskatchewan are thin and dominated by low-value jack-pine forests. Low lying areas contain muskegs, peat bogs, and black spruce. To the west of the Athabasca Basin is a large, unique area of sand dunes. Clean water and land has provided the home for a wide range of northern fish and animals that were the sustaining social and economic foundation for aboriginal peoples of the area.

There remains considerable concern that development of uranium mining and its toxic waste by-products creates a severe environmental threat towards the natural ecology as well as the basic values and lives of the people who live on the land. This issue goes to the heart of northern and indigenous people’s culture where respect for the land and natural resources is central not only to the native system of beliefs, but also to Indian Treaties made with the Crown. It is also the theme of many of the submissions inquiries into the development of the industry and was a central theme in Thomas Berger’s 1978 paper, (p.93):

On July 5th, 1993, Acting Chief Jean Marie Tsannie spoke in her native language of Dene, at Wollaston Lake, to the Rabbit Lake Uranium Mine Assessment Panel on the Collins Bay A-Zone, D-Zone and Eagle Point proposals, noting:

Over time, some native bands recognized the importance of integrating their traditional beliefs with access to emerging opportunities. In his submission to the 1993 Rabbit Lake Environmental Assessment Hearings, Joe Roberts, Director of Resource and Development for the Kitsaki Development Corporation of the Lac La Ronge Indian Band wrote:

These factors all emerged as being central to understanding and developing improved relationships, communications and business relationships with communities and indigenous peoples in northern Saskatchewan.

Social, economic and community structure

Northern Saskatchewan did not participate in most of the social and economic developments that occurred in the south where there were higher incomes; broad employment opportunities; universally available access to health, social, and educational services; modern community infrastructure; high-speed, low-cost transportation; and political power.

The vast majority of the Northern population is of native ancestry, either status Indians or Métis. (See Figure 3). Traditionally the aboriginal peoples (mainly Cree and Denesulene) supported themselves by working the Northern lands and lakes — fishing, forestry, and trapping. Increasingly, however, welfare and more recently mining and local business have become important sources of First Nations and Métis income in the North.

Figure 3. Distribution of Northern Saskatchewan, population by ethnic group, 1997.

Source: Statistics Canada, 1995.

There are two distinct legal categories of Indian in northern Saskatchewan — Status or Treaty Indians and Métis. The Status Indians belong to Indian Bands, where First Nation’s chiefs negotiated with the Government of Canada in right of the Queen or King of England to establish Treaties with the Crown. The treaties provided land in the form of reserves along with other hunting, fishing, and development rights to Treaty Indians. At the same time members of each band became the responsibility of the federal government of Canada for such matters as health, education, and basic income. As Map 1 shows, there are eleven Status Indian Bands in northern Saskatchewan operating under Treaties No. 8 (signed in 1899) and No. 10 (signed in 1906/7).

Significantly, the Treaty Indian Status enshrined the traditional forms of Indian government put into practice through the chief and the elders system, which involves collective decision-making through extended consultation. Native culture places great importance on the basic elements of the universe — the land, water, fauna and flora. This has been reflected historically in native land entitlements under the Treaties, and is central to Indian approaches to development and change.

Métis account for over one quarter of the Northern population. They are also of native ancestry, but do not have treaty status for many historical and ethnic reasons. Métis face similar social, economic and community conditions of life as many Status Indians, although they hold the same legal status as other Canadian citizens. Accordingly, their health, education, and welfare are the responsibility of the provincial government in Saskatchewan.

Map 1. Indian Reserves, treaty areas, and traditional hunting and trapping regions in Northern Saskatchewan.

Source: Bone, 1979. p.35.

The rest of the Northern population is primarily comprised of people of European heritage engaged in mining, natural resource development, business and public administration. This group has traditionally held many of the positions of power in the region, mostly working for the larger industries and government.

A growing population

Before World War II, northern Saskatchewan retained a low density, small population. But between the 1920s and the 1950s the population nearly trebled; from a little over 4 000 people in 1921, to 11 000 in 1951. However, with the advent of improved health care and a rapidly expanding mining economy in the 1950s, the population increased dramatically, reaching nearly 18 000 people by 1961. By 1997 the population more than doubled, to over 37 000.

The northern population lives in four distinct regions. One third live in and around La Ronge, the region’s administrative centre. Thirty percent live in the west side communities, stretching from Green Lake in the south, through Île à la Crosse to La Loche. Another 27 percent live in and around the east side communities from Southend at the centre of the region, through Sandy Bay and Pelican Narrows, to Cumberland House in the south. In 1997, each area had between ten and twelve thousand people living in them. Finally, a smaller population of nearly four thousand live in the isolated northern communities of the Athabasca region, which includes Fond du Lac, Stony Rapids and Black Lake on the Athabasca river and lake system.

Social and economic disparities

Indian and Métis peoples have not had access to the full range of employment opportunities available in the North. Jobs were largely filled by white immigrants to the region, from either southern Saskatchewan or other parts of Canada and the world. At the core of the social and economic disparities of northern Saskatchewan lay a labour gap — too few paid jobs to meet the needs and skills of the local population. By the 1960s, the traditional trapping and fish economy could no longer support the growing population.

The lack of northern employment opportunities and related low incomes brought other social and economic disparities. A lack of housing and funds to purchase housing led to overcrowding. Northern food prices were much higher due to the extra transportation costs incurred in overcoming geographic isolation. Accordingly, less and lower-quality foods have been consumed creating nutrition and health problems.

Through the 20th century, social and economic conditions in the North trailed the South, in spite of improved health care facilities and a steadily increasing welfare bill. Population growth far exceeded the rate of new northern job-creation and earned-income opportunities, particularly in the low-skill areas for which northerners had been educated and trained. As Table 2 indicates, a 1995 survey of northern conditions by the Saskatchewan Department of Municipal Government, a provincial government agency, showed that the North still trailed the provincial averages for most key social and economic indicators.

Table 2. Comparison of social and economic conditions, Northern Saskatchewan and Saskatchewan, 1995.
Indicator	Saskatchewan	North	North as % Saskatchewan
Increase in population and labour force	0.04% per year	2.0% per year	+5 000%
Participation rate	65%–70%	50%	-0.74%
Unemployment rate	Under 7%	25%+	+357%
% Population <$20 000	20%	44%	+220%
% Single parent families	12%	21%	+175%
Av. no. of people per dwelling	2.7	4.0	+148%
Alcohol/drug abuse per 10 000	75	370	+493%
Youth (15-24) suicide rate per 1 000	23	42	+183%
% children born to mothers <19 year old	10.0%	26.8%	+268%
Tuberculosis rate per 100 000	17	253	+1 488%
Criminal code offenses per 1 000	133.4	568.2	+426%
Source: Saskatchewan Saskatchewan Department of Municipal Government, 1995.

Today, for many communities and some aboriginal people, the social and economic indicators for northern Saskatchewan remain only marginally above some of the world’s poorest regions. The average aboriginal earned personal income (for individuals actively in the labour force) for the North was estimated by the University of Saskatchewan to be C $9 716 in 1995 or US $1 285 per capita (Federation of Saskatchewan Indian Nations 1997, p.139). Of this amount, about 40 percent was earned income and 60 percent was received in transfers, mainly from government in the form of social service and welfare payments. Other social and economic indicators for the North remain at levels that would be considered unacceptable in lesser-developed countries. Forty-four percent of the Northern population lives below the Canadian poverty line.

Fundamental to the problem of regional inequity is a growth in population and labour force that has consistently exceeded the rate of regional employment. This has been referred to as an “Aboriginal Employment Gap,” defined as “the number of jobs required to bring the aboriginal employment rate up to the average level of employment.” (Painter et al. 2000, p.35) Therefore, estimates and monitoring of population, labour force, and employment growth is critical to understanding the magnitude of the employment response required to address these issues, and has become central to public policy solutions.

The Saskatchewan Federation of Indian Nations and the University of Saskatchewan estimated the employment gap for northern Saskatchewan, and tracked the problem as the Northern aboriginal population increased. The regional aboriginal employment gap rose from 7 400 in 1995 to 46 400 by 2045, as Table 3 shows.

Table 3. Current and estimated labour gap in Northern Saskatchewan, 1995, and as forecast for 2005–2045.
	1995	2005	2015	2025	2035	2045
Aboriginal employment required to reach provincial employment rates (000s)	14.1	20.4	26.5	34.0	43.7	56.0
Status quo aboriginal employment (000s)	6.8	7.5	7.8	8.2	8.9	9.6
Aboriginal employment gap (000s)	7.4	12.9	18.7	25.8	34.9	46.4
Source: Saskatchewan Federation of Indian Nations, 1997, p.140.

Uranium mining and milling has been the largest single source of employment and economic opportunity in northern Saskatchewan since the 1950s. Developing the industry required sustained and high levels of investment and employment, as well as a continuing supply of goods and services for the mine, mill, and community support infrastructure.

Increasing the level of native and community participation in the Northern uranium economy became a primary policy objective for government. Different regulatory models for mining development were used by both federal and provincial governments with remarkably different results in the levels of participation by northerners, natives, and communities in the uranium mining sector.

[1] Graham Parsons is an economist and President of the Organisation for Western Economic Cooperation. He has been Secretary of Economic Policy for Saskatchewan and Chief Economist for Western Canada. Ron Barsi is Senior Environmental Manager for Clifton Associates Ltd., and President of PANS Joint Venture. He created the environmental regulatory and monitoring process for mining in Saskatchewan.