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Providing coverage of Alaska and Northwest Canada's mineral industry
May 2006

Vol. 11, No. 22 Week of May 28, 2006

MINING NEWS: Canadian mines partner with aboriginals

Formal agreements must be signed with the Inuit in Nunavut; in B.C. mining companies voluntarily working with First Nations

Sarah Hurst

For Mining News

A wide range of initiatives across Canada is bringing more members of aboriginal communities into the mining industry, especially in the far north. Different provinces and territories take different approaches, but there have been some positive results, according to the recently published 13th annual government report on the issue. Nevertheless, aboriginal participation in the industry remains low, even though aboriginal peoples are commonly the closest population to an exploration or mine development project, the report says.

In British Columbia aboriginal participation in the mining industry is relatively limited. The Ts’kw’aylaxw First Nation has 27 community members employed fulltime at the Pavilion limestone quarry. The West Moberly and Saulteau First Nations and the McLeod Lake Indian Band, with coal mines in the northeast, and the Tahltan First Nation, with a major mine in their territory — Barrick’s Eskay Creek — have all benefited from proximity to mines, with high levels of employment for their community members, according to the report. Other groups, such as the Ucluelet and Hupacasath Nations, in partnership with Polaris Minerals, are anticipating major employment opportunities when the 710 million metric ton Eagle Rock aggregate project begins on Vancouver Island.

Some mining companies in British Columbia voluntarily conclude agreements with First Nations, including Polaris Minerals, and also Electra Gold, which has entered into a Mining Participation and Royalty Agreement with the Quatsino First Nation of North Vancouver Island to develop industrial minerals. NovaGold’s Galore Creek is one of the largest and most advanced mining development projects in British Columbia, and the company is working closely with the Tahltan and Iskut First Nations.

British Columbia’s new Ministry of Aboriginal Relations and Reconciliations is responsible for strengthening ties between the provincial government and aboriginal communities. Three key umbrella aboriginal organizations in the province are engaged in discussions with the government: the Union of B.C. Indian Chiefs, the First Nations Summit, and the Assembly of First Nations. Only around 5 percent of British Columbia’s population of 4.2 million is aboriginal.

In Nunavut the Inuit represent 85 percent of a relatively young and rapidly growing population of about 29,000. As part of the Nunavut Land Claims Agreement of 1993, the Inuit gained title to approximately 350,000 square kilometers of land, of which about 10 percent include mineral rights. It is projected that in the next five years the mining industry in Nunavut will require around 3,000 skilled individuals (about 23 percent of the labor force), of which the majority are in the trades requiring two or more years of training. The formal education system is relatively new to the Inuit and more than 50 percent of the population has less than a high school diploma. The government of Nunavut is promoting education by integrating traditional culture and values into the school curriculum.

Agreement required

Under Article 26 of the Nunavut Land Claims Agreement, an Inuit Impact Benefit Agreement is necessary before any major development project begins in Nunavut. Benefits negotiated between the developer and the local Inuit organization are guided by cultural goals, achieving a high standard of living, the nature, scale and cost of the project, direct and indirect impacts on the Inuit, project viability, and the ability for non-Inuit to benefit.

Toronto-based Tahera Diamond Corp. has just finished construction of the Jericho diamond mine in the western Kitikmeot region of Nunavut and operations are about to begin. An Inuit Impact Benefit Agreement between Tahera and the Kitikmeot Inuit Association was signed in 2004. As part of the agreement, Tahera will develop a Labor Force Development Plan and establish a scholarship valued at C$10,000 per year for Inuit students attending postsecondary programs in a field related to the mining industry.

Tahera will also aim to achieve 60 percent Inuit employment by year five of the project, and special priority will be given to vacation requests made by Inuit employees who intend to undertake traditional pursuits. Inuit who do not speak or write English will be given reasonable opportunities to qualify for certain jobs. Tahera will develop a program to help employees with substance abuse and money management issues, and another program to offer employees career and personal counseling. Inuit food will be served at the project.

In Northwest Territories, where most of Canada’s diamond mines are located, aboriginal peoples comprise just over 50 percent of the population of about 43,000. At Diavik diamond mine, 36 percent of the workforce in 2004 was aboriginal. The Diavik Aboriginal Employment Strategy focuses on pre-employment initiatives, recruiting and employee retention and development. Over C$680,000 has been awarded to residents of the Northwest Territories and Nunavut under the Diavik Scholarship Program.






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