Chapter 21 - Employment and Business

21.3 Residual Environmental Effects

A major (significant) residual environmental effect is one which affects an entire definable group of people either on the Labrador North Coast or other areas of Newfoundland and Labrador in such a way as to cause disturbance of long established activity patterns that would not return to pre-Project patterns within several generations.

A moderate (significant) residual environmental effect is one which affects a moderate portion of the population either on the Labrador North Coast or other areas of Newfoundland and Labrador for one or two generations without affecting the integrity of the population as a whole.

A minor (not significant) residual environmental effect is one of a short-term duration and affecting a specific group of people in a localized area either on the Labrador North Coast or other areas of Newfoundland and Labrador but not necessarily affecting the integrity of the entire group.

A negligible (not significant) residual environmental effect is one which occurs in a localized area in a manner similar to small random changes due to natural irregularities, but having no detectable environmental effect on the population either on the Labrador North Coast or other areas of Newfoundland and Labrador as a whole.

Social and economic effects may be either positive or negative. They may be both where specific groups are differentially affected.

As the preceding sections illustrate, the environmental effects of the Project on employment and business will be very large, long-term and positive. Any adverse residual environmental effects on employment and business, other than the closure of the Project at the end of its life, are expected to be minor (not significant) and of a short-term duration. The residual environmental effects which remain after mitigation, and including cumulative environmental effects, are summarized in Table 21.21. The synthesis of environmental effects is presented in Appendix 21D.

Table 21.21 Summary of Residual Environmental Effects

Project Phase	Environmental Effect	Region Affected	Significance	Likelihood^a(Probability)	Sustainable (Capacity) Use of Renewable Resources^a,b
construction	business disruption	ULM, Other¹	minor (not significant)	n/a	n/a
Operation	wage inflation	LNC¹, ULM	minor (not significant)	n/a	n/a
	increased business competition	ULM	minor (not significant)	n/a	n/a
	business disruption	ULM, Other	minor (not significant)	n/a	n/a
	labour force displacement	LNC, ULM, Other	minor (not significant)	n/a	n/a
decommissioning and post-decommissioning	unemployment	LNC, ULM, Other	moderate (significant)	high	n/a
	decreased demand for goods and services	LNC, ULM, Other	moderate (significant)	high	n/a
accidental events	work-related accidents	LNC	minor (not significant)	n/a	n/a
¹LNC = Labrador North Coast; ULM = Upper Lake Melville; Other = Other areas of Newfoundland and Labrador ^a Likelihood and sustainable use of renewable resources are only defined for environmental effects that are significant (moderate or major) (CEAA 1994: 84-187). ^b Employment and business residual environmental effects are not applicable in the evaluation of natural resources.

21.3.1 Construction

The Project will provide employment and business benefits to the Province and more specifically to Labrador businesses, during construction, although there is the possibility of some adverse residual environmental effects such as those arising from business disruption and fly-over effects.

Business Disruption

Due to the large volume of business that the Project will generate for businesses in the Upper Lake Melville area, it is possible that existing customers in this area and other areas of the Province may experience a disruption in the priority level of their demands. The residual environmental effects of business disruption on the Upper Lake Melville area and other areas of the Province will be minor (not significant). Not all businesses will be servicing VBNC and therefore the integrity of the business environment in Upper Lake Melville and other areas of the Province is unlikely to be affected.

21.3.2 Operation

The Project will provide employment and business benefits to the Province during operations although there is the possibility of adverse residual environmental effects occurring similar to those identified in the construction phase, but to a lesser extent.

Wage Inflation

In the Labrador North Coast and Upper Lake Melville area, it is possible that workers in these areas may leave existing positions for better paying ones at the Project. Existing businesses may be forced to increase wages in an attempt to maintain valued workers. The residual environmental effects of wage inflation during the operations phase will be minor (not significant) and will only occur during the first part of the operations and underground phase. After this, the employment and business environments adjust to the new conditions.

Increased Business Competition

As a result of the anticipated increased in business expenditures in the Upper Lake Melville area, it is possible that an in-migration of businesses from outside the region will occur. This will lead to a rise in business competition in the area and may result in the closure of existing businesses that are not able or willing to restructure their operations in order to adjust to the new environment. The residual environmental effect of increased business competition will be minor (not significant).

Business Disruption

The residual environmental effects of business disruption during the operations phase will be similar to that during construction, however, will only occur during the first part of the operations and underground phase. After this, businesses will have adjusted to the new levels of demand, further reducing what is already a minor (not significant) residual adverse environmental effect.

Labour Force Displacement

VBNC will be hiring a large proportion of its labour force from the Labrador North Coast, Upper Lake Melville area and Western Labrador in particular. It is possible that labour force displacement will occur as a result of workers leaving existing jobs for better paying ones at the Project or with related businesses or contractors, resulting in an added expense in terms of hiring and training new workers. This effect will primarily occur in Upper Lake Melville. The residual environmental effect of labour force displacement is expected to be minor (not significant) and the residual environmental effect will only occur during the first part of the operations and underground phase. After this, businesses will have adjusted to the new levels of demand.

21.3.3 Decommissioning and Post-Decommissioning

It is difficult to anticipate the decommissioning methods that will be used for the Project given that closure will not be for over 25 years. Due to this uncertainty, it is also difficult to determine the residual environmental effects that may occur. However, certain of these can be identified through examination of previous mine closures such as unemployment and decreased demand for goods and services.

Unemployment

Decommissioning of the Project will result in the termination of operations employment. All areas of the Province will be affected by the decommissioning, in particular the Labrador North Coast, Upper Lake Melville and Western Labrador. The residual environmental effect will therefore be moderate (significant). However, given the substantial amount of expenditures made in the Labrador North Coast and Upper Lake Melville regions, there will be a large degree of opportunity for economic diversification during the period of construction and operations. Therefore the residual environmental effects of decommissioning will vary according to the amount of economic development and diversification that is achieved during these phases.

Decreased Demand for Goods and Services

Decommissioning of the mine/mill will probably see the termination of business benefits, therefore reducing the demand for goods and services in all areas of the province, in particular Upper Lake Melville. Given the extent of this decrease in demand for goods and services, the corresponding residual environmental effect will likely be moderate (significant). As with unemployment, the degree to which the local economies will be able to diversify during the construction and operations phases of the Project will also affect the degree to which the demand for goods and services occur.

21.3.4 Accidental Events

VBNC has established occupational health and safety policies, as well as environmental health and safety policies, in order to reduce and/or eliminate work-related accidents. The Company is committed to providing the safest possible workforce for its employees through the strict enforcement of these policies.

Accidental events which could have adverse residual environmental effects upon employment and business operations are very limited. In the event of equipment malfunction leading to temporary mine shut-down, businesses supplying goods and/or services will be detrimentally affected as a result of reduced income. In the event that such an accident does occur, the overall residual environmental effect would be minor (not significant).

21.3.5 Monitoring and Follow-up

VBNC will monitor, at the local and provincial level, the numbers and types of workers employed and the value of contracts awarded. This information will be used for project planning purposes and to demonstrate the effectiveness of its Employment and Procurement Policy (see Chapter 3).

21.4 References

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