_ Wrangell,

oa

Tom Waterland

Economic impact drives
Iskut access proposal

TERRACE ~ Last week's an-
nouncement that the provincial
government will form a com-
pany to build a road into the
gold-rich Iskut Valley is the
latest in a series of events dating
back to fast fall.

That’s when the provincial
government and mining com-
panies released a report sug-
gesting a. ground route from
Hwy37. would be cheaper than
air transportation and reduce
minerai exploration and
development costs,

It would also replace using
Alaska as an air
transport base and bring more
spin off benefits to nor-
thwestern B.C.

Negotiations soon started on
who would build the road, how
it ‘will be financed and who
would pay for its construction
and maintenance.

The negotiations were based
on building one road from Bob
Quinn Lake on Hwy37 to Bron-

‘Nisga’s ponder road |
-— connection to Kincolith

TERRACE — The Nisga’a
Tribal Council wants to form a
company to build a road te Kin-
colith in the Nass Valley.

The project would involve
logging the right of way and us-
ing proceeds from the sale of
timber to help finance construc-
tion, says tribal council ex-
ecutive director Rod Robinson.

Access to Kincolith, at the
mouth of the Nass River, is now
only by water or by air,

Construction of a road, it
would start at Greenville and
work. its. way along the Nass
Valley, is a long-standing plan
of. valley residents, said Robin-
son,

_ We're just trying it on for

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Page A2 — Terrace Standard, Wednesday, May 30, 1990

plan

“TERRACE — The president of
the Mining Association of B.C.
says he’s happy with the way the
Iskut road will be built because
it takes the necds of many par-
ties into account.

Tom Waterland said mining
companies won't be the only
ones to benefit by access into
the area.’

“It's nore than j just ¢ a mining “

road. There'il be public access
and it'll be open to other
resource users,”’ he said,

He added that government in-
volvement in financing the road
with mining companies also en-
sures the risk js spread.

The concept also makes sense
given the large number of min-

son Creek near Cominco’s '

_ SNIP property. and Skyline
Gold Corporation’ s Johnny
Mountain gold mine, They’ Te
the two main companies in the
Iskut. The route would be 72km
long and cost an estimated
$12.5 million.

Those talks ran into difficulty
when the provinciai government
commissioned a_ cost-benefit
analysis suggesting Cominco
and Skyline Gold, pay the ma-
jority of the construction cost
because they would be the main
beneficiaries of the ground
route. :

The companies : had wanted
the province to build the road
and recoup costs through user
fees and objected to what they
said was a provincial position
they should pay 75 per cent of
the cost.

A second cost-benefit
analysis, this one done by the
companies, suggested they
should only pay 12 to 18 per

size. We have a commitment
from the provincial government
and are waiting patiently or im-
patiently for federal govern-
ment commitment,’’ he said.
That provincial commitment,
added Robinson, is to pay half
of the cost if the federal govern-
ment contributes the remainder.
He said the tribal council is in
the process ‘of applying for
right-of-way access from the
provincial government for the

vackec

jurisidiction over alt of the road
this year.

ing companies operating in the «
Iskut as the provincial presence.
ensures continuity, 7 Waterland-

said,

He said he concept is much
better than the situation of
several years ago in the Toodog-

_ gone resource area northeast of
Smithers. ‘where one company

built a road with the chelp. of
government financing and then

charged other companiés who
wanted to use it.
“'That | was
nightmare,”'-said Waterland of.
complaints that the company
which built the road into the
Toodoggone, was charging for
its use despite it receiving
government assistance.

cent of the cost based on their *e

claim that other ’ ‘mining’ com-

panies, forestry companies and:

recreational users. would . also
benefit from the road.

Last week's announcement.

indicates the province has decid-

.ed to pay more than the 25 per |

cent it at first was’ willing to
contribute. -

Total expense has gone up
from $12.5 million to $20
million because a third com-
pany, Prime Resources, wants:
to build a spur road from the
main route to its Eskay Creek:
property.

In general terms, the province
will provide one-third of the $20:
million with the companies con-
tributing the remainder,’

That’s based on the province

being responsible for a main
segment that leads to the junc-: .
tion where the Prime Spur: will
lead south. The main route will

lead on to the Cominco and ||

Skyline gold properties. |

road way, oy

At the same time, Robinson
said the tribal council is in-
terested in forming a partner-
ship with construction com-
panies to undertake im-
provements of the road into the
Nass from Victoria,

Money for that work has
been allocated by the highways
ministry after it took over

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“a bloody

B.C.

‘and development more at-

ite,

formed to build the road,’?
said, Skyline’s Bill Price in

more this week,
Skeena. MLA Dave
‘Parker, also. the.” minister
responsible ‘for ~

‘on the northwest economy.
‘road will become another
said Parker,

charge for general public use
-of: the single-lane with

“commercial enterprise will be

‘to. pay back construction
costs, Those companies who
are shareholders i in the road

toll portion: »°

-Parker. added that he’ ex-
pects the: first ‘segment from
Hwy37 to the junction-where
Prime’s. section” to: Eskay
Creek to be ‘completed this
year.

tracts (to build the road).
They will :be:~ more
manageable and there'll be
Jess risk,’” he said.

Mining. Association: -of
_ president Tom
Waterland said the road will
make more mineral search

tractive because ground ac-
cess ig cheaper than air
transport.

“It'll make the difference
between ore and waste rock.

It’s a matter of “economics,”
he said.

“At this point: ‘there isn nof. |:
deal. All. he’ (Premier. Bill: ee
‘Mander | Zalm) said was af id. -
| crown corporation will be

adding he expects to find out

northern] 2!"
development, said the road]. |. =
will have a significant impact]. -

--"*L expect in time that the].
‘highway of the province," .

He said there will be: no .

“pullout road but that: any].

charged a fee for upkeep and]

company, ‘won't be expected :
‘to’ pay. the, construction cost 2

“There'll t be ‘smaller con-

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