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Providing coverage of Alaska and Northwest Canada's mineral industry
December 2011

Vol. 16, No. 52 Week of December 25, 2011

Mining News: Chamber signs MOU with two First Nations

Pact outlines future collaboration to promote responsible mining; Na-cho Nyak Dun and Tr’ondëk Hwëch’in share views with industry

Rose Ragsdale

For Mining News

The Yukon Chamber of Mines recently signed a memorandum of understanding with the First Nation of Na-cho Nyak Dun and the Tr’ondëk Hwëch’in to create a framework within which the industry and aboriginal groups will work together for their respective goals.

The First Nations said they seek to preserve a way of life that is based upon an economic and spiritual relationship with the land, while the Chamber of Mines said it aims to promote a vibrant, healthy, safe and responsible mining and exploration industry in the Yukon.

The MOU, unveiled Nov. 20 during the Chamber’s annual Yukon Geoscience Forum in Whitehorse, formalized a collaboration that the Na-cho Nyak Dun and the Tr’ondëk Hwëch’in began earlier this year with the Yukon Chamber of Mines.

From those efforts, the Chamber and the First Nations developed a “Quick Reference Guide to Effective Respectful Engagement Practices with Yukon First Nations and Communities, released Aug. 18.

The MOU commits the parties to form a steering committee that will meet three times a year in collaboration aimed at enhancing communications and improving the relationship between Yukon First Nations and the Yukon mining industry. The steering committee will identify priorities for each fiscal year (April 1 to March 31), from which a working group will develop an annual plan to achieve those priorities that will be approved by the steering committee.

Specifically, the MOU commits the parties to:

• To work together to leave a positive legacy for future generations and ensure that the essential characteristics and productive capacity of the land in Yukon remains substantially unchanged;

• To respect land use planning processes and work to ensure that social, cultural, economic and environmental policies are applied to the management, protection and use of land, water and resources in an integrated and coordinated manner so as to ensure sustainable development;

• To support each other in protecting and advancing their respective rights and interests;

• To work collaboratively to identify issues arising from applicable legislation and regulatory processes, and where appropriate, recommend solutions;

• To encourage proactive and transparent consultation between Yukon First Nations and the mining industry, as soon as practicable after a miner decides to explore for minerals in the First Nations’ traditional territories;

• To do their best to encourage the application of this MOU to all mining activity in Yukon and all interaction between miners and Yukon First Nations, recognizing that the Chamber cannot bind its members, nor can the two First Nations bind other Yukon First Nations;

• To encourage increased partnerships between the mining industry and Yukon First Nation communities and businesses, investigate and increase investment potential, establish and foster procurement practices that benefit Yukon First Nations, and enhance human resources development and labor force development activities with Yukon First Nation communities and people;

• To encourage open and transparent communications and to develop a communications protocol between the Parties which embraces principles such as timely and frank exchange of information and a commitment to converse prior to contentious or difficult matters becoming public;

• To develop a dispute resolution process; and,

• To endeavor to develop and advocate a common position in respect of the resource royalty regime in Yukon.

Claire Derome, outgoing Yukon Chamber of Mines president, said the MOU reflects a new willingness among the parties to have a dialogue that “is not going to make the front page of the newspaper.”

“We hope to discuss things over the coming year that we have not been able to discuss before,” Derome said during a panel presentation on social responsibility Nov. 20. “I think we will address issues of concern to the Na-cho Nyak Dun and the Tr’ondëk Hwëch’in that will not be in the media, and we will learn to work together better. We will also promote mutual understanding and cooperation for benefit of everybody in the community,” she added.

Tr’ondëk Hwëch’in Chief Eddie Taylor said, “Our people have been involved in mining since the Gold Rush and continue to support responsible mining that does not compromise the environment, our culture or the exercise of TH aboriginal rights. It is sustainable, respects settlement lands, does not affect the productive capacity of the land, does not have negative social effects and does not take place in special places that have high cultural, spiritual or environmental values like the Peel River Watershed. So stay the heck out of there!”

As First Nations, the Na-cho Nyak Dun and others “have come from being approached by whiskey traders to being viewed as independent governments,” Chief Simon Mervyn told the forum participants. “If we can do it, other First Nations can do it as well.”

Because there are no legal requirements, Mervyn said it is important for mining companies to build trust with Yukon aboriginal groups that either own land or have traditional territory where the companies want to work.

“Cooperative agreements are smart for everyone,” he said.

However, developing such agreements with companies like Victoria Gold Corp., Alexco Resource Corp. and Atac Resources Ltd. have evolved over time. “While Alexco is a wonderful partner, we didn’t always know what we needed,” Mervyn said.

In 2008, the Na-cho Nyak Dun established guiding principles to mining within its traditional territory and a cooperative engagement process for economic activities within its traditional territory.

“However, we soon realized we needed a far more in-depth statement of our requirements regarding proponent engagement with Na-cho Nyak Dun,” Mervyn said.

In 2011, the First Nation developed a new guide designed to promote true partnerships with project proponents. “It sets out expectations and objectives of resource agreements and provides for application of a strategic approach that will be applied in a consistent and coordinated manner with respect to various activities,” Mervyn explained.

While Na-cho Nyak Dun has developed increasingly beneficial relationships with Victoria, which is working to build a mine at the Eagle Gold Project on its Dublin Gulch Property, and with Alexco, which recently began production in 2011 at its Bellekeno silver, lead and zinc mine, Mervyn said the First Nation “didn’t expect too much” from agreements inked with mining explorers.

“Atac taught us differently,” he observed.

Na-cho Nyak Dun received equity participation in the highly prospective Rackla gold project a recent exploration agreement with Atac. “We became real partners because we both realized what we could do,” Mervyn added.





Miners: Build relationships, not agreements

Brad Thrall, executive vice president and chief operating officer of Alexco Resource Corp., said the initial focus of his company’s agreements with the First Nation of Na-cho Nyak Dun in Yukon Territory was care, maintenance and exploration in the historic Keno Hill Silver District and that focus changed with Alexco’s activities and involvement.

Thrall was one of several mining company executives who shared their experiences working with Na-cho Nyak Dun in Yukon Territory during a panel discussion on social responsibility at the Yukon Geoscience Forum held in Whitehorse Nov. 19-23.

Over time, Alexco’s agreements evolved with the scope and level of the company’s activities. The company first entered a memorandum of understanding, then an exploration and cooperation agreement and last a comprehensive cooperation and benefits agreement once a positive production decision was made.

Thrall said the agreements provided Alexco with all-important project certainty.

“Implementation is the key to the success of these agreements. Everyone in the organization must buy into the agreements,” he added.

Mark Ayranto, vice president of Victoria Gold Corp., said his company has found that the agreement itself with Na-cho Nyak Dun “is not that important.”

“It’s really about relationship building. It’s about the process,” he said. “Our relationship with NND is extremely important.”

That relationship has paid off for Victoria as it advanced the 6 million-ounce Eagle Gold Project toward production. The company hopes to begin construction of a 200,000-ounce-per year mining operation at Eagle in 2012.

Victoria’s relationship with Na-cho Nyak Dun also resulted in the company signing a letter of intent in mid-December for the purpose of staking the First Nation’s land that is adjacent to the Dublin Gulch Project, where the Eagle project is located. Victoria staked 1,443 claims on two parcels of NND Category B Land, nearly doubling the company’s land package within NND traditional territory in the Yukon. The highly prospective ground covers about 290 square kilometers (112 square miles) and has seen no exploration activity in more than 20 years.

Ayranto advised mining companies to start early in engaging First Nations and “engage often, follow up and provide updates – where you’re at, where you’re trying to get to.”

“Know what you want and what you can provide, whether that jobs, training or whatever,” he said. “The sooner you can do that, the better you can advance discussions. Be who you say you are. This speaks to transparency.” Ayranto also urged company representatives to become visible in the local communities.

“Show them you have no horns on your head,” he said. “Invest the time. Don’t think that it will take three meetings. Every meeting won’t go well. You will have ups and downs. Recognize that there will be an ebb and flow to these things.”

He also urged mining executives to get to know the people in the community, not just the chief and the council, learn when key events occur in the community and show up for them.

“Pop into the coffee shop to say hello. Buy your fuel there. Those things will pay off down the road,” he added.

—Rose Ragsdale


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