MINING NEWS: Miners serious about indigenous rights

Past legacy created climate of mistrust but new approaches are proving fruitful for companies and aboriginals across the nation

Sarah Hurst

For Mining News

Miners in the far north can no longer trample on the rights of indigenous residents as some did in the past. Any company operating on or near aboriginal land must work closely with local communities, whether ownership issues have been decided, as in Alaska, or are still to be resolved, as in much of Canada. Political leaders and miners discussed the question of how to win community support for projects at the Mineral Exploration Roundup in Vancouver Jan. 29.

“How do we address the historical gaps that have separated aboriginal peoples from the rest of society for so many years, the numbers that we’ve become all too familiar with around education, health, ultimately mortality?” asked Mike de Jong, British Columbia’s minister of aboriginal relations and reconciliation. “How are we going to embark on a new societal approach to ensuring that all British Columbians, all Canadians, are sharing in the abundance of wealth that this country enjoys?”

Policy toward aboriginals in British Columbia today is termed the New Relationship. Last year the provincial government allocated C$100 million to a New Relationship Trust that First Nations can use for land and resource management and social programs. “To get different results does involve doing things differently,” de Jong said. “Reconciliation is an easy word to say, but saying it doesn’t make it a fact. It becomes a fact over time.”

More outstanding issues for First Nations

“First Nations are also legitimate players with legal interests in their traditional territories that exist now,” John said. “They’re not asserted rights, they’re not asserted titles, they exist and they are real, and in a respectful environment industry needs to recognize and operate on that basis. ... From our side, from the First Nations side, we have every reason to be suspicious of industry; we have every reason to be suspicious of government. ... We don’t want to be brought in at the last minute or as an afterthought.” In cases heard by Canada’s Supreme Court, government and industry invariably oppose First Nations, John said.

Nunavut governed by Inuit

Economic development is a priority for Nunavut, Okalik said. There is no capital tax in Nunavut, which is a significant incentive for the mining sector, he pointed out. Corporate taxes in Nunavut are among the lowest in the country and the territory also has Canada’s lowest personal income tax rate, according to Okalik. In addition, Nunavut will rebate fuel taxes for off-road projects.

“The stakes are high and the potential is as vast as our territory,” Okalik said. “Mining jobs are much more than shovels in the ground. There is the exploration and construction, camp management, administrative support, and eventually the decommissioning, reclamation and ongoing environmental monitoring.” Rotational shifts at mining camps enable the Inuit to get out on their land and participate in traditional activities during their off-weeks, Okalik added. “For mine operators willing to invest in the local population, they will find a long-term workforce committed for the duration of the project,” he said.

The opportunities created for young people are among the most positive benefits of mining, Okalik said. Mining projects give teenagers an incentive to finish high school and get the qualifications they need. “There is also the intangible benefit of what this does for the self-esteem of these workers, who know they’re building a prosperous future for their community,” the premier added.

Canadian Aboriginal Minerals Association founded in 1992

Aboriginal communities often wonder why there is a sudden rush to develop a mineral deposit that has been there for a long time. “Given this lack of economic understanding, along with metal price cycles ups and downs, the urgency of a company to develop is wholly foreign to many communities,” Matthews said. Some people remember previous development rushes when mining companies came in and left, never to be seen again. Aboriginals felt that they got a raw deal and this has created a climate of mistrust, according to Matthews.

“The mining industry is experiencing a period never seen before, with its very high nickel prices, for example, over $16, copper reaching over $3.50 and so on. ... But while the party goes on in one room, the truth is that aboriginal community prosperity may not be keeping pace,” Matthews said. “Some communities are participating with companies, agreements are in place; some are only learning how to seek opportunities from the industry on their traditional lands; while many only have this desire to get involved. The reality is that many communities are struggling to respond to the fast and furious pace of the industry.”

Community relations are top priority at Orca quarry

The ‘Namgis have lived on northern Vancouver Island and adjacent islands for 10,000 years and currently number about 1,600 people. Their principal community is Alert Bay, on Cormorant Island. After lengthy negotiations with Polaris, the ‘Namgis became equity partners in the Orca project, with a 12 percent share in it, and the chairman of Polaris subsidiary Orca is a ‘Namgis member, George Speck.

“We, right from the start, right from the beginning, approached the ‘Namgis and asked them for permission to explore on their territory,” Romero said. “They were somewhat taken aback, because before we set foot on the ground we approached them, and that set the tone for what has become a remarkable partnership.” Polaris went public in January 2006 and began construction of the Orca quarry two months later. The quarry is designed to produce 6 million metric tons of sand and gravel per year for over 25 years, making it the largest sand and gravel plant ever built in Canada.

Orca developed in partnership with First Nations

The Kwakiutl Band chose to participate in the Orca project through an impacts and benefits agreement. Orca happens to be located in an area where both the ‘Namgis and the Kwakiutl have asserted territorial rights, so instead of waiting for them to work out their issues between themselves, Polaris worked hard to come to an accommodation with both groups, Romero said. The company’s second quarry, the Eagle project on southern Vancouver Island, will also be developed in partnership with First Nations.

“Half of our employees are members of the Kwakiutl and ‘Namgis First Nations, we also have said that we would try very hard to employ women,” Romero said. “Right now over 40 percent of the people employed at site are women as well. ... Right from the early days we employed those First Nations to be part of every bit of work that we did, from the original exploration to the environmental studies.” By openly sharing information with the First Nations, trust built gradually over time, Romero added.

A chief held a blessing ceremony at Orca before drilling began. Within two hours the first drill broke, but after replacing it everything went well and a very large deposit of high quality material was confirmed, Romero said. “One of the things that our partners insisted on very, very much is that we minimize our footprint around the site and minimize our impacts, and we committed ourselves very, very strongly to doing so, through the whole plans and design of the project, for example the buffer zone that we left between the Cluxewe River and ourselves exceeds by a lot the guidelines,” he added.

Progressive reclamation plan

“Some people have asked us, why are we doing all this? Well, First Nations have rights,” Romero said. “These communities are closely attached to the land in so many parts of British Columbia. They were here before us and we can’t bypass them, we can’t bypass these rights, and there is a lot now of legal jurisprudence to strengthen these rights. ... We must work with them, and we felt it was the right thing to do. It was not only a legal obligation, we felt it was a moral and ethical one, but ultimately it was a pragmatic choice as well. If we could have their support we’d be better off.”

Last November Polaris received the Mining Association of British Columbia’s 2006 Mining and Sustainability award. In January the Prospectors & Developers Association of Canada announced that Polaris would receive an “e3” Environmental Excellence in Exploration award “for establishing excellent community relations and environmental practices.”

The PDAC environmental award citation drew attention to the processing plant at Orca, which will feature a closed circuit water recycling system to ensure that no process water will be discharged into the environment. The system’s filtering process eliminates the use of settling ponds, minimizes silt handling and cleanup costs, and allows for the silt to be used to beneficiate the soils during reclamation.

—Sarah Hurst