The Gritty Business of Sio Silica

Who knew sand could be so controversial?

Sio Silica, a company that detractors derogatively refer to as “an Alberta Company”, has proposed a large project to extract high-grade silica sand in eastern Manitoba for the manufacturing of solar panels, among other potential uses.

Alberta or not (we won’t get very far if our economy is to reply on home-gown Manitoba investment only), it is a proposal that merits consideration. Unfortunately, passions and political tampering might undermine rational discussion. But I get it: people will be impacted, drinking water may be at risk, the ground may collapse into a giant pit of despair. That’s why we need to know what we’re dealing with.

The Clean Environment Commission report did identify concerns, especially related to uncertainties around the novel approach to extracting the silica sand, but also noted the project “does have merit if the risks posed to the quality of water in the affected aquifers can be better defined and the management of those risks can be adequately addressed” (CBC). Work is on-going to understand the risks and Sio’s plans to manage those risks.

For some people, there is no conversation to be had. Water is priceless. Any risk to a family’s water is a deal-breaker. The truth is, though, that nothing has infinite value. Even drinking water. If water quality is impacted, it could be treated .. for a cost. If necessary it could be sourced from elsewhere .. for a cost. In an absolute worst case scenario, families could be relocated .. and well compensated for their troubles.

Is it worth the cost? I don’t know. You don’t know either. None of us know because we don’t have all the information yet! Once the process unfolds and the risks and strategies become clearer we’ll be able to weight the benefits and costs and make an informed decision.

We do have an idea of the “benefits” piece. The Vivian Silica project would employ up to 100 people and generate millions of dollars in economic activity. Those jobs and tax dollars would be welcome.

The real prize, however, is from RCT Solutions. RCT, a German company (is that better than an Alberta company?) has signed an MOU with the province to look into building a $3 Billion solar panel manufacturing hub in Winnipeg, generating upwards of 8,000 full time jobs. Even if they’re exaggerating the number of jobs, that’s still a lot of jobs, but it’s not unrealistic when you consider that some estimate upwards of 120,000 solar manufacturing jobs in the U.S. by 2033. We would all love to have that manufacturing hub in our province, but the feasibility is “all about having access to pure silica” — i.e. no Sio Silica, no solar plant.

Not helping matters is the aforementioned political tampering. You know what I’m referring to, but if you need a refresher you can read this.

(There is a little bit of irony here, by the way: not just that the Conservatives undermined a project they were pushing so hard to make a reality, but also in that Conservative Rochelle Squires’ revelations lead to a formal complaint being issued by NDP Mike Moyes, her bitter Riel riding rival. I know both Rochelle and Mike personally and consider both to be people of integrity, but they did not often see eye to eye.)

Jeff Wharton’s unethical phone calls gave the impression that the project can’t stand on it’s own merit, and turned the project into a political hot potato. This makes it more difficult for Wab Kinew to approve the project, even if it’s worth-while, because now it’s politicized. It is a tainted Conservative initiative in the eyes of many.

It’s still early in Wab’s tenure so it’s difficult to say what he might do. We all hope that he is going to govern in the best interests of the province, rather than making politically expedient decisions as certain of his predecessors have done. Note that “best interests of the province” does not mean zero impact. It means the benefits generally to the people of the province outweigh the costs and externalities.

There was a positive sign that the Premier has not written off the project yet, with Wab recently making comments about building a “zero-emissions future” with “a few signature investments”.

“If we land some of these big manufacturing opportunities, big mining opportunities and we do it in a good way, I think that is how we make Manitoba a have province.”

I can’t help but think he has RCT Solutions on his mind as he speaks those words.

Another perspective…

The Sio Silica project is one small piece in the colossal effort to combat climate change. Of course Sio is doing it to make money, not to save the world, but that is how the problem will be solved — thousands of companies all over the world digging up minerals and making solar panels and batteries and wind turbines and hydrogen whatevers; and making a profit while doing it.

No solution to climate change is without impact. The demand for lightweight balsa wood to fill wind turbine blades is driving deforestation for example. And minerals of all sorts need to be extracted in large quantities from all over the world — from open pit mines or vacuumed off the sea floor or from sprawling sun-baked ponds. Those operations without exception all impact populations and/or environments around them, and in some cases endanger the employees doing the extracting. The fewer safeguards a firm takes, the more money they can potentially make.

lithium mine macleans.ca

We are in a position here in Manitoba where high environmental standards can be demanded and enforced. The question might be asked: if the project doesn’t happen here, where will it happen and what will the impacts be there?

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