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					     Aboriginal Engagement
in the Mining and Energy Sectors
      Case Studies and Lessons Learned




      2008 Report to Energy and Mines Ministers




                    Aboriginal Engagement Task Group of the
                    Intergovernmental Working Group on the Mineral Industry
                                    DISCLAIMER

The Compendium of case studies has been prepared on the basis of information
provided at the time of writing by federal, provincial, and territorial representatives of
the Intergovernmental Working Group on the Mineral Industry (IGWG). The
Aboriginal Engagement Task Group (ATG) makes no warranty of any kind with respect
to the content and accepts no liability, either incidental, consequential, financial or
otherwise, arising from the use of this document. The views expressed in this
publication do not necessarily reflect those of the ATG and IGWG.
                                                Table of Contents
INTRODUCTION .................................................................................................... 1

CASE STUDIES ...................................................................................................... 3

    A Provisional Template for Best Practices for Government
    Geoscience Activities in Nunavut: Developing Relationships
    With Inuit Communities and Organizations ........................................................................3

    Best Practice: Consultation Protocol With First Nations: The Mi'kmaq-
    Nova Scotia-Canada Consultation Terms of Reference ......................................................7

    Perspectives on Some Practices Related to Aboriginal-Government Engagement .............9

    The Upper Similkameen Indian Band/B.C. Ministry of Energy, Mines and Petroleum
    Resources Mining and Minerals Protocol Agreement .......................................................13

    Aboriginal Consultations Under the ecoENERGY for Renewable Power Program .........15

    Relations With Local Communities: The Case of Virginia Mines
    and the Cree Communities.................................................................................................17

    Crowflight Minerals Inc. - Bucko Lake Mine ...................................................................19

    Victor Diamond Project: Example of First Nation Participation
    in Environmental Assessment............................................................................................21

    Taltson Hydro Expansion: Building Relationships: The Approach
    to Energy Development in the Northwest Territories........................................................23

    Birch Mountain Resources Ltd.: The Hammerstone Project Limestone
    Quarry and Processing Plants in the Heart of Alberta’s Oil Sands....................................25

    Shell’s Athabasca Oil Sands Project..................................................................................27

    The Voisey’s Bay Project: An Example of Successful Aboriginal Engagement
    in Newfoundland and Labrador .........................................................................................31

    Raglan Mine - Quebec: An Agreement Designed to Harmonize Relations and Foster
    Opportunities Between Xstrata Nickel and the Local Aboriginal Communities...............33

    Uranium Mining in Saskatchewan.....................................................................................37




                                                                iii
    The Minto Mine Project: An Example of Successful Partnering
    Between First Nations, Government and Industry.............................................................39

    The Restoration of Abandoned Mining Exploration Sites in Northern Quebec:
    A Partnership Between the Provincial Government, Inuit and Industry ...........................41

FINDINGS OF THE WORKSHOP ON ABORIGINAL ENGAGEMENT ...................... 43

CONCLUSION ...................................................................................................... 45

ANNEX I.............................................................................................................. 47

ANNEX II ............................................................................................................ 49




                                                             iv
                                        Introduction
BACKGROUND AND OBJECTIVES                           CASE STUDIES
At their conference in September 2007 in            The compendium comprises 16 case studies
Whistler (British Columbia), Mines                  on Aboriginal engagement1 in the mining
Ministers unanimously concurred on the              and energy sectors involving governments,
vital importance of engagement between              communities, and industry that range from
governments, industries, communities and            preliminary geoscience mapping to
Aboriginal peoples to ensure the viability of       exploration, operation, and the rehabilitation
the mining industry. As a result, Ministers         of abandoned sites. These case studies
directed that approaches be explored,               illustrate the mutual benefits of investing in
including the development of best practices         stronger relationships and partnerships
involving government, industry and                  between governments, Aboriginal peoples,
Aboriginal peoples. Following the                   and the industry. The approach to
conference, the Intergovernmental Working           Aboriginal engagement varies from project
Group on the Mineral Industry (IGWG)                to project and over the mining sequence. In
established an Aboriginal Engagement Task           some of the case studies presented,
Group (the “Task Group”). The Task Group            significant aspects of Aboriginal
was mandated to collect mining and energy           engagement in the mining sector are defined
case studies and lessons learned submitted          through formal negotiated agreements such
by IGWG and identify significant critical           as Memoranda of Understanding (MOU) or
success factors for Aboriginal engagement,          Impact and Benefits Agreements. Other
as well as key challenges.                          cases illustrate the importance of mutual
                                                    understanding and respect, openness, and
Natural Resources Canada’s Minerals and             continuous dialogue in building and
Metals Sector, in collaboration with the            maintaining successful relationships
Task Group, held the Mining and Energy              between companies and Aboriginal
Stakeholders Workshop on Aboriginal                 communities. For the purpose of this
Engagement to review selected case studies          document, the case studies have been
and discuss the critical success factors and        categorized as follows:
key challenges that hinder successful
engagement. The workshop was attended by
representatives of Aboriginal organizations;
federal, provincial and territorial
governments and agencies; mining and
energy associations; and companies from
across Canada. The views of the participants
on the critical success factors and key
challenges to successful engagement are             1
                                                      Governments, communities, and the industry often
summarized in the last section of this
                                                    have different definitions of “Aboriginal community
document.                                           engagement.” For the purpose of this compendium,
                                                    Aboriginal engagement comprises the formal and
It is expected that this compendium may be          informal ways in which Aboriginal peoples,
a useful tool in the promotion of leading           governments, industry, and stakeholders can stay
                                                    connected on issues of mutual interest. This
practices related to Aboriginal engagement
                                                    definition recognizes that the approach, extent, and
in the mining and energy sectors.                   effectiveness of the engagement differ substantially
                                                    from one location to another. Aboriginal peoples
                                                    refer to First Nations, Métis, and Inuit peoples.




                                                1
Geoscience Mapping:                             Mine Operation:
   A Provisional Template for Best                Birch Mountain Resources Ltd.: The
   Practices for Government Geoscience            Hammerstone Project Limestone Quarry
   Activities in Nunavut: Developing              and Processing Plants in the Heart of
   Relationships With Inuit Communities           Alberta’s Oil Sands (Alberta)
   and Organizations (Nunavut/NRCan               Shell’s Athabasca Oil Sands Project
   [Earth Sciences Sector])                       (NRCan [Minerals and Metals Sector])
                                                  The Voisey’s Bay Project: An Example
Government-First Nations Consultation             of Successful Aboriginal Engagement in
Process:                                          Newfoundland and Labrador
   Best Practice: Consultation Protocol           Raglan Mine - Quebec: An Agreement
   With First Nations: The Mi'kmaq-Nova           Designed to Harmonize Relations and
   Scotia-Canada Consultation Terms of            Foster Opportunities Between Xstrata
   Reference (Nova Scotia)                        Nickel and the Local Aboriginal
   Perspectives on Some Practices Related         Communities (Quebec)
   to Aboriginal-Government Engagement            Uranium Mining in Saskatchewan
   (Ontario)                                      (Saskatchewan)
   The Upper Similkameen Indian                   The Minto Mine Project: An Example of
   Band/B.C. Ministry of Energy, Mines            Successful Partnering Between First
   and Petroleum Resources Mining and             Nations, Government and Industry
   Minerals Protocol Agreement (British           (Yukon)
   Columbia)
   Aboriginal Consultations Under the           Restoration of Old Mineral Exploration
   ecoENERGY for Renewable Power                Sites:
   Program (NRCan [Energy Sector])                  The Restoration of Abandoned Mining
                                                    Exploration Sites in Northern Quebec:
Exploration:                                        A Partnership Between the Provincial
   Relations With Local Communities: The            Government, Inuit and Industry
   Case of Virginia Mines and the Cree              (Quebec)
   Communities (Quebec)

Mine Development:
  Crowflight Minerals Inc. - Bucko Lake
  Mine (Manitoba)

Environmental Assessment Process:
   Victor Diamond Project: Example of
   First Nation Participation in
   Environmental Assessment (NRCan
   [Minerals and Metals Sector])
   Taltson Hydro Expansion: Building
   Relationships: The Approach to Energy
   Development in the Northwest
   Territories (N.W.T.)




                                            2
      A Provisional Template for Best Practices for Government
    Geoscience Activities in Nunavut: Developing Relationships With
                Inuit Communities and Organizations
Within the progressive series of initiatives               provides a significant opportunity for the
required for responsible mineral                           CNGO and the GSC to initiate engagement
development (the mining cycle), public                     of the Nunavut Government and
geoscience activity, i.e., geo-mapping,                    “community” as the Management Board
commonly precedes (or occurs                               includes representatives from the
independently of) all other activities,                    Government of Nunavut and from Nunavut
including exploration. For this reason,                    Tunngavik Incorporated (NTI), a non-voting
provincial, territorial and federal geological             member of the Management Board. NTI is
survey personnel are commonly the first                    responsible for the management of all Inuit-
contact Aboriginal communities have with                   owned lands in Nunavut and acts as the
respect to understanding the resource                      advocate of Inuit interests in Nunavut. NTI
potential of their traditional lands. As a                 is also invited to participate in geoscience
result of both the Canadian Constitution                   planning meetings and is a partner in the
(Section 35) and associated Supreme Court                  CNGO data dissemination project,
of Canada rulings and land claim                           Nunavutgeoscience.ca.
settlements, it is critical that geological
surveys develop a series of best practices                 WORKING ENVIRONMENT
that result in consistent and transparent                  Nunavut is unique in Canada as the entire
approaches to community relations. Some of                 territory is included in one land claim
the best examples of community                             agreement, signed in 1993. The agreement is
engagement have evolved in Nunavut                         settled; all areas of Inuit Owned Lands
through the Canada-Nunavut Geoscience                      (IOLs), including those with subsurface
Office.                                                    rights, have been selected and demarcated.
                                                           The agreement applies to all areas within
COOPERATIVE GOVERNMENT                                     Nunavut and is not restricted to IOLs.
GEOSCIENCE PARTNERS AND                                    Federal government departments working in
PROJECT PLANNING                                           Nunavut must be guided by their obligations
Government geoscience survey partners                      under the agreement.
working in Nunavut include the Canada-
Nunavut Geoscience Office2 (CNGO),                         COMMUNITY RELATIONS: EVOLVING
Natural Resources Canada (the Geological                   TOWARDS A BEST-PRACTICE MODEL
Survey of Canada [GSC]), Indian and                        Required Pre-Project Activities
Northern Affairs Canada (INAC), and the                    The regulatory process for acquiring permits
Government of Nunavut. Field-based                         and licences for field activities presents the
geoscience activities are usually undertaken               first formal opportunity and requirement for
as joint projects of the CNGO and the GSC.                 making contact with communities, Regional
Project plans are presented for approval to                Inuit Associations (RIAs; Kitikmeot,
the CNGO Management Board at the annual                    Kivalliq and Qikiqtani IAs), regulatory
meeting (normally in March). The meeting                   bodies (e.g., Nunavut Impact Review Board,
                                                           INAC Land Use, and Nunavut Water
2
  The Canada-Nunavut Geoscience Office (CNGO)              Board), and other associations (e.g., Hunters
acts as the geological survey of Nunavut. The office       and Trappers Organizations [HTOs]).
is a co-managed and co-funded partnership of NRCan
(GSC), INAC, and the Government of Nunavut.



                                                       3
To complete some permits, project                    which included a presentation of basic
proponents are required to have selected             concepts in Earth science through a hands-
parts (e.g., project descriptions) translated        on geology (rocks, minerals, fossils) and
into Inuktitut. In addition, the proponents          GIS learning experience, a description of the
write a letter (in Inuktitut) to mayors and          CNGO project, and potential Earth
hamlet councils of communities within the            science/resource exploration employment
proposed project areas describing the                opportunities.
projects (e.g., nature of field operations,
potential impacts, plans for site remediation,
etc.) and requesting feedback on project
plans. In the course of project planning
exercises, it became apparent that building
community relations would be a learning
exercise through which a series of best
practices would evolve.

Principal Participants
For the sake of consistency, all community
relations planning is carried out through the
CNGO Chief Geologist. This gives
communities a single communication portal,
as well as a comfort level in dealing with the
same individual.                                     Syn-Project Activities
                                                     Following the lead of the 2006 SW Baffin
Prior to field activities in 2007, the CNGO          Project, and at the request of the Taloyoak
Chief Geologist made visits to Coral                 Hamlet Council, the Boothia Project was
Harbour (May) and Taloyoak (June) to meet            host to a group of Taloyoak elders for one
with mayors, hamlet councils, hamlet                 day during 2007 field operations. The elders
council operating officers, the public,              were transported by helicopter to the field
Hunters and Trappers Organizations (Coral            site and given a project presentation, site
Harbour), and school students (Coral                 tour, and lunch.
Harbour). The public and hamlet council
meetings involved discussions of project             In addition, CNGO-GSC aircraft transported
plans, potential impacts, site remediation,          representatives from the Taloyoak and Coral
community opportunities (for procurement,            Harbour hamlet councils on the last days of
logistics support and employment), and               field operations to inspect the camp sites.
involvement. In each of the meetings, the
Chief Geologist addressed and
accommodated specific concerns. For
example, the HTO in Coral Harbour
requested the Southampton Project contract
the HTO for environmental and Polar Bear
monitors; the Taloyoak council requested
that the mayor visit the Boothia Project
camp on camp-move-out day to inspect the
site and efforts at site remediation.

The Coral Harbour visit also involved a two-
day visit to the local school (all grades),


                                                 4
Post-Project Activities                             An important aspect of having government
It is important to ensure that the community        surveys involved in Aboriginal community
communications process follows a                    relations is to emphasize that gaining an
symmetric profile in which communication            understanding of the geology of traditional
is maintained for a period of time following        lands is essential to understanding their
the cessation of field activities and               territory in a more holistic manner. This
publication of results. As a follow-up to           includes an understanding of its resource
field activities that occurred in the 2006          potential, as well as a better understanding
field season, CNGO and GSC project                  with respect to environment, health, and
leaders and participants went to Cape Dorset        climate change. Surveys must present
in the winter of 2007. The Cape Dorset              themselves as honest brokers in this
meetings included an evening public                 information-gathering process in which the
meeting describing the 2006 field activities        information gathered is freely disseminated
and highlighting some of the results, new           and objectively assessed. In this way,
maps, and potential impacts (i.e., if the new       government surveys have the potential to be
geoscience would result in private-sector           involved in all aspects of the so-called
exploration activities, and what the                mining cycle to help ensure that geoscience
communities might expect). In addition,             knowledge is used towards responsible
CNGO and GSC scientists spent two days              resource development of traditional lands.
meeting with students (all grades) and
presented some basic concepts in Earth
science, provided a hands-on geology and
GIS learning experience, described the
project, and outlined potential Earth
science/resource exploration employment
opportunities.

KEY OBSERVATIONS
Communities have very different concerns,
requests, reactions, and political dynamics,
and CNGO-GSC staff involved in pre-
project community visits should be flexible,
responsive, sensitive, authoritative, and
prepared.

Visits by Inuit elders to the field site may
have the highest impact and value for the
Inuit communities and CNGO-GSC staff
relative to any other community
activity/meeting.




                                                5
        Best Practice: Consultation Protocol With First Nations:
            The Mi’kmaq-Nova Scotia-Canada Consultation
                          Terms of Reference
There are 13 First Nations in Nova Scotia –         When the provincial government offers to
they are all Mi’kmaq. The historical                consult, it does so with all 13 Chiefs and
relationship between the government and the         Councils through the Assembly of Nova
Nova Scotia Mi’kmaq is governed by a                Scotia Mi’kmaq Chiefs. Therefore,
series of Peace and Friendship Treaties             consultation does not have to involve
signed between 1725 and 1751. These                 multiple meetings with a number of First
treaties were an agreement for settlers and         Nation bands or deal with overlapping and
the Mi’kmaq to co-exist in a peaceful               competing claims. The ToR provide an
manner. The treaties were affirmed under            opportunity to implement an effective
Canada’s Constitution in 1982 and again             consultation process in the context of a
with the Supreme Court of Canada’s                  single, agreed-to framework.
Marshall decision in 1999.
                                                    While the ToR process is optional for both
The Made-in-Nova Scotia Process is the              First Nations and governments, it is hoped
forum for the Mi’kmaq, Nova Scotia, and             that it will become an effective and
Canada to resolve issues related to Mi’kmaq         preferred vehicle for consultation. If an
treaty rights, Aboriginal rights, including         individual band or bands do not agree to be
Aboriginal title, and Mi’kmaq governance.           represented by the Assembly on a
In 2002, the three parties signed an                consultation matter, a separate process may
Umbrella Agreement to initiate negotiations         be pursued with that band. The ToR do not
to consider constitutionally protected rights       commit any party to undertake consultation
of the Mi'kmaq of Nova Scotia, renew a              on any particular issue, commit the parties to
commitment to the existing Mi'kmaq-Nova             reach agreement, limit consultation outside
Scotia-Canada Tripartite Forum, and initiate        the process, or prevent “without prejudice”
discussions regarding the requirement of            discussions at some point in the process.
governments to consult with the Mi'kmaq of
Nova Scotia.                                        HOW DOES IT WORK?
                                                    Once provincial departments undertake a
MI’KMAQ-NOVA SCOTIA-CANADA                          risk assessment to determine whether
CONSULTATION TERMS OF                               consultation is preferred, a letter from the
REFERENCE                                           responsible department goes to all 13 Chiefs
Nova Scotia’s consultation environment is           and Councils offering to consult and
unique in Canada. In June 2007, the three           describing the proposed activity, including
parties at the Made-in-Nova Scotia                  any timelines. A template letter for
negotiation table developed and agreed to           consultation was developed by the Office of
pilot Consultation Terms of Reference               Aboriginal Affairs and the Department of
(ToR). The ToR describe how consultation            Justice. The Assembly of Chiefs meets once
will proceed between all First Nations in           a month to discuss all consultation requests
Nova Scotia and the governments of Nova             from governments and to delegate a Chief to
Scotia and Canada.                                  lead the consultation. The government
                                                    department is then notified of the
All 13 First Nations are represented by the         Assembly’s decision, including the name of
Assembly of Nova Scotia Mi’kmaq Chiefs.             the delegated Chief.



                                                7
All discussions under the ToR are on the             request noted that government had not yet
record. The ToR process is guided by a               determined whether a legal duty to consult
Consultation Table consisting of one                 existed for these projects, but consultation was
representative from the Mi’kmaq, Nova                being requested as a matter of policy. The
Scotia, and Canada. The Consultation Table           Assembly of Chiefs delegated a Chief to lead
acts like a steering committee to address            the consultations and brought together a
process questions and issues when they               consultation committee. In early 2008, this
arise, and to “trouble shoot.”                       committee met for the first time with
                                                     representatives from the Department of
GOVERNMENT OF NOVA SCOTIA’S                          Natural Resources. The meeting included a
APPROACH                                             comprehensive discussion of the mining
Provincial government departments are                industry in the province and the state of
supported by the Office of Aboriginal                development of four specific projects.
Affairs, which provides policy advice and            Following the meeting, concerns and
support to departments and agencies,                 recommendations were circulated for
including risk assessment, process,                  feedback and requests for further information
substance and follow-up of consultation,             were addressed. Plans are currently under way
coordination with other levels of                    for a follow-up meeting to address technical
government, and facilitation. The Office             issues of some projects in more detail. It is
also has an active role in raising awareness         hoped that this can eventually become a
and building capacity among provincial               recognized forum where mining-related
employees, assisting departments to develop          activities can be discussed and mining-related
internal protocols and guidelines for                issues can be brought for consultation.
consultation, and developing consultation
tools – like a risk assessment framework and         LESSONS LEARNED
a proponent’s guide to engagement.                      Start early!
However, it is the responsibility of                    Proponents should be engaging
individual departments to identify activities           Aboriginal peoples well ahead of any
within their sphere that may infringe on                regulatory processes.
claimed or asserted Aboriginal or Treaty                Agreement with all First Nations on how
rights and title, and to take a lead role in            consultation will proceed is an
shaping any consultation that is needed.                advantage.
                                                        Build a centralized, coordinated,
EXPERIENCE FOR MINING PROJECTS                          supported approach to consultation.
In fall 2007, the Department of Natural                 Come prepared to discuss details of
Resources formally requested consultation               projects, and be creative in exploring
under the ToR with respect to several projects          solutions that will address Aboriginal
that were approaching critical decisions. The           concerns.




                                                 8
                   Perspectives on Some Practices Related to
                     Aboriginal-Government Engagement


INTRODUCTION - ROLE AND PURPOSE                      are discovered and addressed. That
OF ABORIGINAL ENGAGEMENT                             environment helps ensure there are mutually
The Ontario Ministry of Northern                     beneficial outcomes.
Development and Mines (MNDM) engages
with Aboriginal communities, organizations,          NATURE OF ENGAGEMENT
and Treaty organizations to:                         The engagement activity varies depending on
   Develop and nurture relationships with            the intent. Some engagement activities are
   Aboriginal organizations and                      informal while other engagement processes
   communities;                                      are implemented under a project agreement, a
   Exchange information;                             protocol agreement, or a political agreement.
   Receive input into proposed changes to            Engagement may take place through the
   Ontario government legislation, policy,           auspices of the MNDM Aboriginal Relations
   regulations, and practices;                       Unit or may involve leaders and technical
   Address the legal, business, operational,         staff of technical program areas, such as the
   and good governance factors related to            Ontario Geological Survey Branch, the
   policy priorities, interests, or planned,         Mineral Development and Lands Branch, or
   multi-year initiatives;                           the Regional Economic Development Branch.
   Help inform decisions related to the
   Crown’s consultation duty;                        Virtually all Aboriginal communities have
   Understand and address issues;                    advised MNDM to engage with
   Transfer skills to enable Aboriginal              Aboriginal communities, unless the
   participation in the mineral sector;              community indicates that their interests
   Achieve a mutual understanding between            are served by a different organization,
   the Aboriginal community and MNDM.                such as a Tribal Council or Treaty
                                                     organization. Regardless of the
Rather than single out an individual case            engagement players, MNDM attempts to
study, this summary is a synthesis of a broad        keep the community informed.
range of engagement practices, process, and
lessons learned by MNDM.                             Engagement is about mutual under-
                                                     standing and respect, and meaningful
DEFINITION                                           communication seeking to address mutual
MNDM uses the term “engagement” broadly              interests while attempting to understand
in this summary paper. Engagement                    respective positions. Engagement requires
encompasses a broad range of activities              a sustained effort over a longer period of
related to contact, discovery, cooperation,          time.
communication, and mutual understanding.
                                                     MNDM ENGAGEMENT CONTEXT
Engagement is the basis for effective                MNDM has found that there is no single
communication, and together these are the            engagement approach. However, several
foundation for mutual awareness, respect, and        pre-engagement considerations can help
understanding, which in turn are the foundation      contribute to the success of an engagement
for relationship-building. A strong and informed     process:
relationship helps to ensure that mutual interests



                                                 9
   Take time to understand the complex                   ENGAGEMENT PRINCIPLES
   political, operating, community, and                  A number of engagement practices,
   government environment;                               founded on principles, guide the MNDM
   Recognize that information-flow and                   engagement approach and these may be
   decision-making process responsibilities in           considered success factors:
   Aboriginal communities may differ from                   Regardless of engagement
   those of leadership-driven, Ontario                      organization, keep the community
   government decision-making; therefore, a                 informed;
   flexible approach is needed;                             Jointly develop the engagement
   Listen to the community as it knows what                 approach;
   approach works best to share information                 Assign and involve the right political,
   with each other and how decisions are                    executive, and technical people with
   made;                                                    the right authority, at the right time
   Understand and define the Ministry’s                     and place, and at the appropriate stage
   objectives;                                              of engagement; this Chief-to-Chief,
   Define with the community the type and                   technical-to-technical, community-
   intent of the engagement (partnership vs.                to-community engagement model,
   collaboration vs. business vs. consultation              with consistent team players, is an
   vs. protocol vs. agreement vs. issue                     important success factor;
   management); each type may have a                        Mixed gender engagement teams may
   different approach and require different                 reach more broadly into a community;
   staff.                                                   Ensure team participants have the
                                                            appropriate skills for the intended
Team Selection                                              engagement (negotiation skills may
Many Aboriginal communities have an                         differ from relationship-building
expectation of working with senior Ministry                 skills);
officials, empowered to make decisions, or                  Define the authority for action or
with individuals who report directly to                     decision-making; it may be considered
Ministry leadership. Our team selection is                  disrespectful if the inappropriate
based on engagement intent, duration of the                 person is sent to a table involving
process, type and frequency of required                     decision-makers where the goal is to
decisions, and capacity. We have learned that               make a decision;
relationships are built between people, not                 Communities develop relationships
organizations, so once the engagement team is               with people – changing the
selected and involved, it may be                            engagement team may completely
counterproductive to change key team                        undermine progress to date because
members. Also, it is important to assess the                the relationship will have to be rebuilt;
type of staff involved, and the corporate and               Seek meaningful communication using
individual flexibility to changing situations, to           appropriate communication tools,
ensure the team is able and willing to respond              ideally jointly developed and in the
quickly to changes and to engage when the                   local dialect of the community;
need arises. Dedication to a community-level                Seek to understand and help address
relationship may pose capacity issues for an                shared interests (e.g., cultural,
organization.                                               environment, capacity, development);
                                                            success cannot be achieved if there is
                                                            no mutual benefit from the
                                                            engagement;
                                                            At the outset, work toward a shared
                                                            understanding of intent and


                                                    10
   expectations, and define the limits of               advice to a Minister, MNDM uses
   authority;                                           Advisory Councils or Advisory Boards.
   Avoid surprises by agreeing to a                     For input to substantive items such as
   communication process and ensuring that              legislative, policy, regulatory or program
   information, good and bad, flows                     issues, MNDM uses technical working
   effectively;                                         groups or committees.
   Be visible in the community, not just in
   the “boardroom”; this means participating            ENGAGEMENT TOOLS
   in community events, spending time in                MNDM attempts to develop meaningful
   the community, and avoiding the “in at               communication tools with the community
   10 a.m. out by 4 p.m.” approach;                     that are written in a broadly regional
   communities advise us that the                       Aboriginal language or in the dialect of a
   engagement outside the boardroom may be              local community. The tools may include:
   more important than within the boardroom             posters, glossaries of administrative and
   because that is where a connection with              technical words and phrases, translations
   the community people is made.                        of policy documents or discussion papers,
                                                        or newsletters. For more technical
ENGAGEMENT APPROACHES                                   subjects, field visits, enhanced information
A number of tools and approaches may be                 maps, or information videos in a native
used depending on the mutual interests and the          language are used.
approach preferred by the community.
                                                        CAPACITY-BUILDING TECHNIQUES
Agreement Types                                         To help achieve the capacity-building
Several types of agreements may guide the               interests of a community, MNDM offers,
engagement:                                             or will attempt to facilitate delivery of
   Political Memorandum of Cooperation                  through a third-party delivery agent,
   (“walking together”);                                specialized, mineral sector-specific
   Memorandum of Understanding, to                      training (e.g., prospector training, line
   develop a consultation protocol;                     cutting course). MNDM will sponsor
   Technical project agreement, to guide                participation of community leaders and
   roles, responsibilities, and accountabilities        technical staff at technical conferences,
   for a technical communication, Traditional           such as the Annual Prospectors and
   Ecological Mapping (TEK), or geological              Developers Association of Canada
   mapping project.                                     meeting in Toronto or small regional
                                                        symposia where the community
Meetings                                                participants develop their own contacts,
  Mutual cultural awareness sessions;                   discuss face-to-face with industry
  Consider engaging with elders, political,             proponents the community interests, and
  band, clan, family, individuals, women’s              acquire a better insight of the mineral
  groups, and the school depending on a                 sector. In some communities, MNDM has
  community’s preference;                               funded the position of a community-based
  Inside and outside the boardroom, such as             “mining coordinator” or a community
  career fairs, school presentations, band              communication liaison person who is
  meetings;                                             responsible for facilitating communication
  Workshops – special information sessions.             between community and industry and
                                                        between the community and government.
Expert or Wise Councils                                 In addition, MNDM hires local
The approach to political or technical input            community youth to work on the Ontario
and communication may differ. For political


                                                   11
Geological Survey geological mapping teams
or other projects.                                     For more information:

LESSONS – SUCCESS FACTORS                              Christine Kaszycki, Assistant Deputy Minister,
In addition to lessons learned and incorporated        Mines and Minerals Division
into the MNDM practices, there are some key            E-mail: Christine.kaszycki@ontario.ca
general conditions that underpin “success”:
    Capacity building is necessary on both             Lori Churchill, Senior Aboriginal Liaison
                                                       Officer, MNDM Aboriginal Relations Unit
    sides;
                                                       E-mail: lori.churchill@ontario.ca
    Separate “political” from “program or
    operational”;                                      Cindy Blancher-Smith, Director, Mineral
    Meaningful communication leads to                  Development and Lands Branch
    informed consultation;                             E-mail: cindy.blancher-smith@ontario.ca
    Communication becomes easier as
    relationships build;                               Andy Fyon, Director, Ontario Geological Survey
    Relationships are with people, not just            E-mail: andy.fyon@ontario.ca
    organizations;
    Use the term “partnership” only if you
    share the same definition;
    Commit only within your authority and
    deliver what you commit;
    Follow up;
    Continuously echo back on the status of
    discussions to ensure all parties share the
    same understanding;
    Implement transitional approaches while
    longer-term solutions are sought;
    Be patient, don’t give up - there will be
    mistakes by both partners.




                                                  12
               The Upper Similkameen Indian Band/
  B.C. Ministry of Energy, Mines and Petroleum Resources Mining
                 and Minerals Protocol Agreement

INTRODUCTION
In late 2005, the Upper Similkameen Indian          CHALLENGES
Band (USIB) approached the Ministry of              MEMPR has a mandate to manage the
Energy, Mines and Petroleum Resources               responsible development of a competitive
(MEMPR) with a proposal to develop a                mining and minerals sector for the benefit
consultation framework for mining and               of all British Columbians. The USIB does
mineral exploration and development that            not have a treaty and has asserted
would reflect the principles of the New             Aboriginal rights and title within its
Relationship.                                       traditional territory. This circumstance has
                                                    resulted in MEMPR needing to consult
                                                    with regard to these interests and, where
                                                    appropriate, accommodate them. The
                                                    USIB also has a historic tradition of
                                                    mining, and thus has several overlapping
                                                    cultural and economic interests regarding
                                                    mining and mineral development.

                                                    With the concepts and ideas included in
                                                    the New Relationship still under
                                                    development, the parties were tasked with
In July 2006, the parties concluded an              creating a novel agreement that met their
Agreement that endeavours to develop greater        respective needs while fulfilling the
certainty for mineral resource development.         relevant legal obligations.
This improved certainty is facilitated by a
mutually agreed upon Consultation and
Accommodation Approach that provides clear
and timely processes and roles regarding:
    communication;
    information sharing; and
    appropriate consultation and
    accommodation measures pertaining to




   mining and mineral activity on USIB
   traditional territory.


                                               13
               THE COLLABORATIVE APPROACH                                                                      SUCCESS FACTORS
               As a pioneering venture, the negotiations that                                                     A pre-existing collaborative
               led to the Agreement required the creativity                                                       relationship, including Economic
               and commitment of both parties, as well as                                                         Measures Funding in 2003 to support
               close contact between the Ministry and other                                                       the development of the Mascot mine as
               government agencies, including the Ministry                                                        a major tourist attraction;
               of Attorney General and Ministry of                                                                First Nation’s historical connection to
               Aboriginal Relations and Reconciliation.                                                           mining and minerals;
                                                                                                                  Business interest by First Nation to be
               THE RESULTS                                                                                        part of the mining resurgence in the
               The dialogue between the parties and the                                                           Similkameen Valley;
               subsequent Agreement help to implement the                                                         The Working Group’s ongoing
               New Relationship by providing a means to                                                           dialogue exploring the ideas and
               integrate USIB interests and perspectives into                                                     concepts included in the New
               operational decisions.                                                                             Relationship;
                                                                                                                  First Nation’s willingness to work
               On a practical level, a streamlined approach to                                                    within the existing legislative
               consultation has been established that allows                                                      framework;
               for quicker turnaround of routine applications,                                                    A mutually agreed upon interpretation
               as well as for more intensive consultation on                                                      of the legal duty to consult and
               projects that may result in a greater impact on                                                    accommodate; and
               Aboriginal interests. The Agreement has                                                            Joint instructions to lawyers to abstain
               already resulted in real benefits for the USIB                                                     from direct participation in the
               and the Ministry, allowing for a much more                                                         negotiation process.
               effective and collaborative relationship
               between the parties, and for industry, that can                                                 LESSONS LEARNED
               do business within a more certain regulatory                                                    Future Protocol Agreements with First
               framework.                                                                                      Nations could be improved by
                                                                                                               incorporating how other parts of
                                                                                                               government review and approve permit
                                                        Activity
                                                                                                               applications. The involvement of other
 Level of                                     New Minor to
                                                                                     Mine Production
                                                                                                               agencies that are involved with additional
                                Mechanized                     Mechanized
Sensitivity   Non-Mechanized
               Disturbance
                                  Existing
                                                Moderate
                                               Mechanized
                                                             Significant New
                                                                             Sand and Gravel
                                                                                                               regulatory authorizations associated with
                                Disturbance                    Disturbance                   Metal and Coal
                                              Disturbance                        Quarry
                                                                               Operations
                                                                                             Mine Production   mining has the potential to increase the
                                                                                                               relational benefits and operational
               Notification    Notification   Consultation   Consultation    Consultation     Consultation
   Low                                            Level 1      Level 2         Level 2          Level 3        efficiency provided by the USIB/MEMPR
Moderate
               Notification    Consultation   Consultation   Consultation    Consultation     Consultation     Agreement.
                                 Level 1        Level 1        Level 2         Level 2          Level 3

               Notification    Consultation   Consultation   Consultation    Consultation     Consultation
   High                          Level 2        Level 2        Level 3         Level 3          Level 3



    Low                                                      →                            High




                                                                                                       14
                     Aboriginal Consultations Under the
                 ecoENERGY for Renewable Power Program

THE ECOENERGY FOR RENEWABLE                           any change in the environment caused by a
POWER PROGRAM                                         project on the current use of lands and
In January 2007, the Government of Canada             resources for traditional purposes by
announced a clean energy and clean air                Aboriginal persons.
program to support the development of low-
impact renewable power. The ecoENERGY                 Given that renewable energy projects also
for Renewable Power program is a                      require provincial, and at times other
$1.46 billion investment to increase                  federal, authorizations or approvals, NRCan
Canada's supply of clean electricity from             carries out consultations in coordination
renewable sources such as wind, biomass,              with other provincial or federal departments
low-impact hydro, geothermal, solar                   and agencies, as well as with the project
photovoltaic, and ocean energy. It will               proponent. To the extent possible, project
support 4000 MW of new renewable power                proponents and Aboriginal groups are
capacity, which is enough to provide                  encouraged to resolve any potential issues of
electricity to up to one million homes.               concern between themselves early on in the
                                                      process.
Under the program, Natural Resources
Canada (NRCan) provides an incentive of               Upon receipt of an application to the
one cent per kilowatt hour over a 10-year             ecoENERGY for Renewable Power
period to eligible low-impact renewable               program, NRCan notifies any Aboriginal
electricity projects constructed between              groups that may have an interest in the
April 1, 2007, and March 31, 2011. Every              project. Groups are provided with a
project that receives support under the               description of the project and are invited to
program must complete a federal                       participate in the necessary environmental
environmental assessment pursuant to the              assessment.
Canadian Environmental Assessment Act
(CEAA).                                               To facilitate the consultation process, First
                                                      Nations have an obligation to clearly
                                                      articulate the nature of their interest in the
ABORIGINAL CONSULTATION
                                                      project, including any potential negative
PROCESS                                               impact on their asserted or established
NRCan has developed a step-by-step                    Aboriginal or treaty rights. Aboriginal
consultation process to ensure that                   groups are invited to provide comments on
Aboriginal groups are effectively consulted           the environmental assessment or to identify
on the delivery of the ecoENERGY for                  any issues or concerns they may have
Renewable Power program.                              regarding the proposed project.
To the extent possible, Aboriginal                    To the extent possible, any issues identified
consultations are integrated with the existing        by Aboriginal groups are addressed within
environmental assessment process. In many             the context of the environmental assessment
cases, Aboriginal groups are active                   report and any proposed mitigation
participants in the environmental assessment          measures for the project. However, if a
of renewable energy projects. The CEAA                group is not satisfied with the environmental
requires that the consideration of adverse            assessment report, further consultations may
environmental effects includes the effect of          be carried out with the goal of mitigating


                                                 15
adverse effects. If necessary, additional
mitigation measures may be prescribed as a
condition of a contribution agreement for a
project.

The development of this process is part of
what will likely be an evolving process for
consulting Aboriginal groups under the
ecoENERGY for Renewable Power
program. Every consultation is a new
experience and NRCan works with First
Nations and industry to identify best
practices and other strategies to improve the
current approach. In doing so, the
department hopes to achieve a meaningful
and fair process to ensure substantive
discussion that addresses or accommodates
First Nation concerns.




                                                16
                   Relations with Local Communities:
          The Case of Virginia Mines and the Cree Communities
Virginia Mines is a mining exploration                The report on an April 2005 session held in
company that has been active in northern              Wemindji on the subject of the mining
Quebec for over 15 years. Since its earliest          industry contained a paragraph on the high
beginnings, the company has worked to                 level of communication maintained between
establish ongoing communication with First            the communities and the company. It noted
Nations communities to keep them informed             that Virginia Mines has long been involved
of its prospecting activities. The goal has           with Eeyou Istchee and, over the years, has
always been to develop long-term relations            established an excellent system for dialogue
with communities located in exploration               with the Cree communities. The report
areas.                                                suggests that the company’s method be
                                                      adopted as a model. Its participatory
PERMANENT CONTACT WITH THE                            approach ensures that the families, chiefs,
COMMUNITIES                                           band councils, and trappers are fully
The Virginia Mines philosophy is to involve           informed about activities in an area. It also
the local communities in project planning             helps establish and maintain good relations
and implementation. For example, the chief,           among the parties.
band council, economic development
officer, trappers, and the Cree Trappers              COMMITTED BUSINESS
Association are contacted several months in           PARTNERSHIPS
advance when activities are planned for their         Virginia Mines consistently makes a great
sector. The company notifies them of the              effort to encourage local workers and
nature and purpose of the work, the                   entrepreneurs. It develops the use of
schedule, the area concerned, and the                 facilities and equipment already in place and
location of camps in order to obtain their            champions alliances and partnerships with
comments and respond to any concerns they             Cree communities. One of the best examples
may have. The company then stays in close             of this commitment is the strategic alliance
contact with the community to report on               between the Mistissini community and Cree
project progress and results.                         Gold Exploration. Cree Gold and Virgina
                                                      Mines are working together in a joint
Almost every year, the company also tours             venture, exploring a sizeable area of interest
the major band councils to report on the              covering 14 000 km2 in the Mistissini
progress of mining activity in northern               region, in order to identify and study
Quebec. Virginia Mines acts as something              volcanic belts and mineralized zones. This is
of an industry ambassador among the                   a win-win partnership for both parties, and
communities, answering questions posed by             demonstrates the new brand of relations that
officials and residents, while gathering their        can be developed between the mining
opinions and comments on development                  industry and the First Nations of Quebec.
work. In this way, the company fosters
better collaboration that is based on trust
developed through consistency, respect, and
an ongoing commitment to clarity and
transparency.




                                                 17
A COMMITMENT TO RESPECT FOR
ECOSYSTEMS
The natural environments in the exploration
areas where the company is working are
highly vulnerable. Virginia Mines has
therefore adopted exploration best practices
and strives to cause the least possible
damage to the ecosystems of the Far North.
It is an important commitment signifying
respect for the environment, local
communities, and society in general.




                                               18
                Crowflight Minerals Inc. – Bucko Lake Mine
INTRODUCTION                                         The priority for Crowflight is to bring the
The Bucko Lake nickel deposit, under                 Bucko Lake nickel deposit into production
development by Crowflight Minerals Inc., is          by mid-2008.
located south of Thompson, Manitoba, near
the town of Wabowden. This deposit is a              ENVIRONMENTAL ASSESSMENT
southern extension of the very prolific              PROCESS
Thompson Nickel Belt which, since its                Crowflight is in the process of obtaining
discovery in the 1950s, has produced more            provincial and federal environmental
than four billion pounds of nickel from              approvals and permits for its planned Bucko
several mines operated at one point or               Lake nickel project. The project is a Class 2
another by either Inco Ltd. or Falconbridge          Development, and Crowflight submitted an
Ltd.                                                 Environmental Act Licence Proposal for the
                                                     project to Manitoba Conservation in April
The Bucko Lake nickel deposit was first              2006. That proposal included a plan for
discovered in 1964. In 1971-72,                      disposal of tailings in the adjacent Bucko
Falconbridge sunk a three-compartment                Lake. This tailings disposal approach was
shaft at Bucko Lake to a depth of 356.6 m            identified as the most environmentally
(1170 ft – “1000 Level”) and developed               acceptable approach for the secure long-
915 m (3500 ft) of hanging wall drifting at          term disposal of the potentially acid-
the 1000 Level. A 61-hole underground                generating tailings that will be produced
drilling program consisting of 12 700 m of           from milling of the Bucko ore.
drilling on 30-m spacings was performed.
The mine was closed in 1972. The results of          Given the extended and unpredictable
this drilling were used in the calculation of        schedule for completion of the federal
several pre-National Instrument 43-101               process, Crowflight has been forced to
mineral resource estimates by Crowflight.            consider interim means of bringing the
Crowflight has delineated a mineral resource         project into production and submitted a
containing nickel, copper, cobalt, platinum          Notice of Alteration (NOA) (December
group elements (PGEs), and gold.                     2007) to its project proposal originally
                                                     submitted in April 2006. The company is
As of January 2008, construction of the              proposing to include the provision for
Bucko mine site was progressing steadily.            interim land-based tailings storage in order
The hoist and headframe set were                     to allow the project to go into production
commissioned in November 2007 and are                and take advantage of the current strong
now fully operational. The underground               market prices for nickel. There has been no
shaft de-watering and rehabilitation to the          approval yet for the land-based tailings
100 Level (~ 330 m below surface) is                 storage.
complete, thereby providing access to
commence the underground development                 The environmental review and approval
and exploration program. Underground drill           process for lake-based tailings disposal takes
programs have started and work continues to          a long and unpredictable length of time. To
advance on the mill and other surface                date, three federal departments have
buildings.                                           indicated that each has to sign off on a
                                                     screening environmental assessment under
                                                     the Canadian Environmental Assessment Act
                                                     (CEAA), and two Order-in-Council



                                                19
approvals from the federal Cabinet are                being made available to compensate, a
necessary to address requirements under the           common theme in the North and one that
Metal Mining Effluent Regulations (MMER)              may be misleading in the Aboriginal
of the Fisheries Act and Section 23(1) of the         consultation process. The term “fish habitat
Navigable Waters Protection Act. Thus far,            rehabilitation” is best used.
the federal review has taken some 16
months, and current estimates are that the            A Community Trap Line is located near the
time remaining to obtain necessary federal            community of Wabowden. This trap line is
approvals could extend to the end of 2008 at          used by young people and elders to hunt for
the earliest, and possibly into 2009.                 mink and martin, as well as for training.
                                                      Access to this trap line was on the mine
ABORIGINAL/COMMUNITY                                  access road, which Crowflight has concerns
DISCUSSIONS/CONSULTATIONS                             about due to snowmobile or ATV use when
The purpose of consultation was to hear and           trucks are using it. Therefore, Crowflight
understand community concerns about the               cleared sufficient area beside the road and
proposed project and its potential effects on         installed some culverts to facilitate
use of the land, water, and resources. These          snowmobile and ATV travel beside the road,
concerns are taken into consideration before          away from truck traffic. Signage was also
making decisions about the proposed                   installed.
Tailings Impoundment Area. As the
company is not in production yet, the                 LESSONS LEARNED
consultation process continues.                          Technical reports should be re-written in
                                                         plain English and translated into Cree.
Community meetings in Wabowden, Cross                    Having someone explain the reports to
Lake First Nation, Snow Lake, and                        them would help, and pictures and
Thompson have been conducted by federal                  images are more important to them than
and company officials. There were high                   words.
levels of interest for the meetings, but there           Need to have coordination with the
were problems notifying the communities                  Province in future meetings.
about the meetings. Mine-site tours were                 Crowflight has been distributing a
also conducted.                                          quarterly newsletter to the communities.
                                                         Future editions will include more details
Numerous concerns were raised such as                    about timelines of training and hiring
water quality, trap line disruption,                     activities, and statistics demonstrating
snowmobile trails, environmental issues                  local hiring completed to date.
surrounding the tailings, that the mine is               It is suggested that notices for future
only monitored for three years after closure,            meetings go out to all mailboxes and that
and hiring and training of local people for              meetings be announced via the local
jobs.                                                    radio and at community bingo games at
                                                         least seven days prior. Serving food is a
A Fish Habitat Compensation Plan has been                great draw.
submitted by the company. When discussed                 When discussing Fish Habitat
with the community, the term                             Compensation, the word
“compensation” was problematic.                          “rehabilitation” should be used.
Compensation created an image of money




                                                 20
                            Victor Diamond Project:
                      Example of First Nation Participation
                         in Environmental Assessment
INTRODUCTION                                           (NRCan) was the lead responsible authority
The Victor diamond project, operated by                for the EA and worked closely with the
DeBeers, is located near Attawapiskat in the           Canadian Environmental Assessment
James Bay region of northern Ontario. It               Agency. The eight federal departments and
will be Ontario’s first diamond mine and the           agencies, and three provincial ministries
first major industrial development in this             involved, all strived to engage First Nations
area with significant potential economic               early and in all parts of the environmental
benefits for the First Nations along the               assessment. It was a fundamental premise of
James Bay coast.                                       the consultation that First Nations have the
                                                       tools to understand the project and the EA.
                                                       Most importantly, the consultation was a
                                                       vehicle for First Nations to voice their
                                                       concerns. With consultations beginning
                                                       before the guidelines for conducting the
                                                       assessment were finalized, First Nations
                                                       influenced which issues would be included
                                                       in the assessment.




ENVIRONMENTAL ASSESSMENT
PROCESS                                                COMMUNITY PARTICIPATION
The entire project was subjected to a                  Consultations continued at every step of the
comprehensive-level federal environment                process, with federal and provincial officials
assessment (EA) under the Canadian                     going to the five affected communities on
Environmental Assessment Act (CEAA).                   the James Bay coast on numerous occasions
In addition, three provincial-level                    to inform and, more importantly, to listen.
environmental assessments were undertaken
to cover specific aspects of the project. The          In response to concerns expressed during the
federal EA covered all aspects of the project          initial phase of the consultation, De Beers
and took two years to complete.                        considered alternatives to some project
                                                       components (e.g. the use of diesel fuel to
The Victor diamond project EA included an              generate electricity). The company
extensive public consultation, in this case, to        submitted a revised proposal that eliminated
the benefit of First Nation communities in             some of the impacts and alleviated concerns
the region. Natural Resources Canada                   that had been expressed by the First Nations.



                                                  21
The process was an opportunity to not only
incorporate the communities’ concerns, but
also to include Traditional Ecological
Knowledge (TEK). The use of TEK, along
with scientific knowledge, assisted the
company in making informed decisions
regarding protection of the environment and
the mitigation of impacts.

Governments gained a better understanding
of the particular concerns of each
community, and involved them in
determining possible impacts and mitigation
measures. Moreover, the consultations
developed a relationship and a measure of
trust between governments and the First
Nation communities that is the basis for an
                                                   LESSONS LEARNED
ongoing productive relationship for the
                                                       Identify the best format of
development of a follow-up program for the
                                                       consultation early in the process.
Victor diamond mine project.
                                                       Once engagement begins, adjust
                                                       approach to the community involved.
A post-project review was conducted to
                                                       For an effective consultation, involve
identify issues and make recommendations.
                                                       all decision-makers of all
                                                       jurisdictions.
                                                       Identify cultural/traditional events
                                                       before consultation starts.
                                                       Translate documents into Aboriginal
                                                       language before distribution and
                                                       discussion. Translate a plain-
                                                       language summary of documents.
                                                       Develop a consultation plan
                                                       (including engagement options,
                                                       costs, and resources) early in the
                                                       process.
                                                       Identify financial resources.
                                                       Identify specific tools to be used
                                                       during consultations (i.e., video,
                                                       etc.).


                                                         For more information:

                                                         www.debeerscanada.com/files_2/
                                                         victor_project/factsheet.html

                                                         www.ceaa-
                                                         acee.gc.ca/index_e.htm




                                              22
                     Taltson Hydro Expansion:
  Building Relationships: The Approach to Energy Development in
                     the Northwest Territories
INTRODUCTION
The Taltson hydro-electric facility is
currently owned and operated by the
Northwest Territories Power Corporation
(NTPC). It is located in the southeast
portion of the Northwest Territories, about
56 kilometres (km) northeast of the
Alberta/N.W.T. border. It was built in 1966
to supply power to the Pine Point lead-zinc
mine, which closed in 1987. The facility was
originally built to a capacity of 18 MW.
Since closure of the mine, demand has
dropped to an average of around 10 MW.
On average, 8 MW worth of water just flows          Applications to develop the project were
over the spillway.                                  filed with the Mackenzie Valley Land and
                                                    Water Board in March 2007. The project
                                                    was referred to Environmental Assessment
                                                    in October 2007 and is currently undergoing
                                                    EA.




There is an additional potential of 172 MW
on the entire Taltson River system without
additional flooding, which makes it a strong
candidate for further hydro-electric
development.

The site is proposed to be expanded by
36 MW to make a total of 45 MW available.
The expansion of the project will be
undertaken by Deze Energy Corporation.




                                               23
WHAT IS DEZE ENERGY                                  ABORIGINAL PARTICIPATION IN
CORPORATION?                                         ENERGY PROJECTS
Deze Energy Corporation is a joint venture           GNWT Crown corporations have been
between the Akaitcho First Nation, the               building relationships with communities and
NWT Métis Nation, and the NWT Energy                 Aboriginal governments for a number of
Corporation, a Crown corporation of the              years.
Government of the Northwest Territories
(GNWT).                                              In 1996, a partnership was formed with the
                                                     Tlicho to develop a 5-MW run-of-river
These organizations, through a                       hydro facility at the Snare Cascades site.
Memorandum of Understanding, have
agreed to further develop the hydro-electric         The GNWT is also working with individual
resources of the Taltson River System. This          communities to examine the development of
MOU brings together the principal                    mini-hydro systems and have partnered with
stakeholders of the region and the owner and         the local Gwich’in leadership in Fort
operator of the Taltson power stations.              McPherson on a waste heat recovery option.

In the MOU, the parties agreed:                      INGREDIENTS FOR SUCCESS
    To establish a corporate entity that will        Building Relationships
    represent the interests of the Akaitcho          Given the history of the relationship
    Regional Investment Corporation                  between governments, Crown corporations,
    (ARIC) and the South Slave Metis                 and Aboriginal people, gaining enough trust
    Energy Corporation (SSMEC) in                    from the Aboriginal community to do
    business arrangements that will lead to          business together has taken time. Even
    the further development of the hydro-            today, trust must be built slowly by
    electric resources of the Taltson River          openness, transparency, inclusiveness, and
    system.                                          demonstrated respect for Aboriginal rights,
    To develop detailed business plans that          culture and contributions (i.e., traditional
    will provide for profitable business             knowledge).
    opportunities for ARIC and the SSMEC.
    To form a Steering Committee that will           Benefits for Aboriginal People
    comprise one representative of each              Aboriginal governments are no longer
    partner. This Committee will direct and          willing to settle for jobs and contracts that
    oversee research into the issues related         follow the boom and bust of construction
    to the proposed development, and                 and exploration cycles. Training and
    examine potential business opportunities         employment are still high priorities, but
    that may be available.                           Aboriginal business capacity and wealth
                                                     creation are additional requirements when
The three partners have been working on              undertaking developments. Non-Aboriginal
this project since 2003 and have gone                interests need to factor in Aboriginal
through successive steps leading to a formal         business partners’ concerns for the
Project Development Agreement and                    environment, sustainability, culture, and
Shareholders Agreement. These final                  way of life. These concerns may take
agreements are targeted to be completed by           precedence over business expediency and
the fall of 2008.                                    bottom lines. Developers need to consider
                                                     these interests when doing business in the
                                                     N.W.T.




                                                24
                       Birch Mountain Resources Ltd.:
                           The Hammerstone Project
                    Limestone Quarry and Processing Plants
                      in the Heart of Alberta’s Oil Sands
The Hammerstone project is located 60 km              influence real changes with management or
north of Fort McMurray and about 6 km east            at the executive level of the mining
of the settlement of Fort McKay. The region           company.
is the focus for all of the major open-pit oil
sands mines and several large in-situ oil             With the rapid growth of the oil sands
sands developments. A quarry development              industry in the past decade, the First Nation
is subject to very similar regulatory                 communities of the Regional Municipality
requirements as an oil sands project. The             of Wood Buffalo were overwhelmed with
challenge of consulting with First Nation             requests to “consult.” In response, they
communities has been to differentiate the             established, with the assistance of resource
limestone quarry and processing plants from           companies, Industrial Relations Committees
the much larger oil sands developments.               (IRC) in each community staffed and trained
                                                      to handle the consultation process.
A key to success in the Hammerstone                   Consequently, project consultation in
Project consultation has been the long-term           northeastern Alberta has been advanced to a
involvement of senior management of Birch             high level of sophistication with the
Mountain Resources in the process. An                 communities and industry fully engaged.
officer of the company has worked closely             Resource companies entering the region join
with the communities over the past 10 years,          the IRC and, as a result, they are presented
leveraging his many years of previous                 with a process to follow in their consultation
engagement in the region. The message is: a           programs.
project owner’s consultation is a long-term
process of building trust and understanding.          Project consultation is a process that lasts
As obvious as this may seem, experience has           the life of the development, and in the Wood
shown that there has been a limited number            Buffalo region, projects are defined in
of people working in the mining industry              multiple decades in duration. A natural
who have demonstrated an ability to                   consequence is the direct engagement of
implement these basic principles. It is               Aboriginal people and Aboriginal-owned
encouraging, however, to see the                      business in the resource development
improvements and the growing number of                activities. The track record of the oil sands
success stories.                                      industry is impressive, with $2 billion in
                                                      contracts with Aboriginal-owned companies
Consultation success requires a desire on the         in the period 1998 to 2006.
part of the leadership of First Nation
communities to engage in the process.                 Birch Mountain Resources Ltd. has
Leaders of these communities will be                  implemented its own unique business
reluctant to engage in consultation if they           arrangement with the formation of
are concerned that it will turn into a one-way        Hammerstone Products Ltd., a marketing
“information only” process, as they have              company owned 51% by Fort McKay First
experienced in the past, or if little or no           Nation and 49% by Birch Mountain
change is likely because they are consulting          Resources Ltd. Hammerstone Products Ltd.
with staff who are not in a position to               actively promotes limestone products in the



                                                 25
region and receives a fee on every tonne
sold from Birch Mountain’s Muskeg Valley
Quarry and Hammerstone Project. Over the
60-year life of the project, significant
benefits will flow to the two shareholders of
Hammerstone Products Ltd., measured both
in financial terms and community/corporate
relations.


 For more information:

 www.birchmountain.com




                                                26
                        Shell’s Athabasca Oil Sands Project

INTRODUCTION                                           plans to increase total AOSP production to
The Athabasca Oil Sands Project (AOSP) is              more than 500 000 barrels of bitumen a day.
a joint venture among Shell Canada,
Chevron Canada Limited, and Marathon Oil
Sands L.P. It consists of the Muskeg River
mine, located about 75 kilometres north of
Fort McMurray, Alberta, and the Scotford
Upgrader, located near Fort Saskatchewan,
Alberta.

The Muskeg River mine sits on Shell’s
Lease 13, which contains more than six                 ABORIGINAL ENGAGEMENT IN THE
billion barrels of mineable bitumen – an               ATHABASCA OIL SANDS PROJECT
amount that is about twice the conventional            Consulting with Aboriginal stakeholders and
oil reserves remaining in Alberta. On                  respecting their concerns is an important
Lease 13, the oil sands deposit is close to the        part of Shell’s business. Shell is committed
surface and contains a high concentration of           to working with Aboriginal people to seek
oil, making it ideally suited to mining.               mutually beneficial solutions, and supports
                                                       and participates in initiatives that increase
The construction of the AOSP started in                employment opportunities and economic
1999 and the first oil sands ore was                   benefits for Aboriginal communities.
processed from the Muskeg River mine in
2002. The project became completely                    In 2006, AOSP spent $473 million on
operational in 2003 when the Scotford                  supplies and services provided by local
Upgrader successfully started processing               companies in Wood Buffalo, Fort
bitumen from the mine. As currently                    Saskatchewan, and the Greater Edmonton
designed, the Muskeg River mine will                   area. More than $55 million of total local
recover 1.6 billion barrels of bitumen.                spending went to purchase supplies and
                                                       services from Aboriginal companies. Jobs,
                                                       business experience, and profits will flow
                                                       into the Athabasca Chipewyan First Nation
                                                       (ACFN) from a $97 million catering,
                                                       housekeeping, and maintenance contract for
                                                       Albian Village, a 2500-person world-class
                                                       camp built to accommodate workers on
                                                       Shell’s oil sands mining sites. Shell is also
                                                       providing transportation and
Shell also has approval for the Muskeg                 accommodation for members of the ACFN
River mine expansion and Jackpine mine,                who live 300 kilometres away. The benefits
which will eventually develop most of                  of this contract go far beyond wages. The
Lease 13.                                              contract will help the ACFN business group
                                                       gain valuable business experience and build
Currently designed to produce 155 000                  a track record to support other business
barrels of bitumen a day, Shell announced              ventures.




                                                  27
Shell also contributes to a number of
Aboriginal education and training programs,
including BEAHR, Trades in Motion, and
Sunchild E-learning that are implemented
in-community.

Shell’s Statement of Principles guides its
interactions with Aboriginal communities,
businesses, and individuals.

Aboriginal Involvement in Monitoring
Plans                                               SUCCESS FACTORS OF ABORIGINAL
Integral to the AOSP is a commitment to
                                                    ENGAGEMENT
meaningful consultation with the local First
                                                    Good Neighbour Policy
Nations communities to address
                                                    Building solid relationships takes time and
environmental issues. In 2005, the AOSP
                                                    trust. Shell Canada and the joint-venture
management made a set of commitments to
                                                    owners implemented the Good Neighbour
the Athabasca Chipewyan First Nation
                                                    Policy to develop a mutually prosperous,
(ACFN) that will build their environmental
                                                    long-term partnership with people living in
capacity and strengthen their self-
                                                    its operating area, particularly First Nations
sufficiency, as well as providing
                                                    and Métis people living close to the Muskeg
opportunities to include traditional
                                                    River mine.
ecological knowledge into environmental
assessment. The ACFN will have the
                                                    The success factors of Shell’s Good
opportunity to review and affect the design
                                                    Neighbour Policy are:
of the environmental monitoring programs.
                                                       Earn trust and respect through honest,
                                                       open, and proactive communication.
Preserving Traditional Knowledge
                                                       Involve neighbours, including
In cooperation with First Nations’ Elders
                                                       Aboriginal people, in decisions that
living near the oil sands operation, Shell
                                                       affect them with the objective of finding
helped implement programs to preserve
                                                       solutions both parties view as positive
traditional knowledge, and is initiating
                                                       over the long term.
another program about the use of traditional
                                                       Operate the AOSP in an environmentally
indigenous medicinal plants in the
                                                       responsible and economically robust
Athabasca region.
                                                       manner.
                                                       Use and encourage local businesses,
Moreover, in order to build a bridge between
                                                       especially Aboriginal businesses, where
the traditional ecological knowledge and
                                                       they are competitive and can meet
modern environmental science, Shell
                                                       project requirements.
provides funding for students, selected by
the Elders, to attend Keyano College’s
Environmental Technology program. When
they return to the community, they will
continue to integrate the knowledge of the
Elders, combined with their own academic
knowledge, into the monitoring programs.




                                               28
Ensure that jobs created by the AOSP
are filled by its neighbours whenever
possible, but always on a strictly merit
basis. To help make this happen, Shell
works with its neighbours, contractors,
educational institutions, and other
producers to develop the skills the AOSP
requires.


For more information:

www.shell.ca/aosp

In-community education and training programs:

www.beahr.com

www.nait.ca/pthosted/cit/pdf/NIM_brochure_06.pdf

www.sccyber.net/www/index.php




                                           29
   The Voisey’s Bay Project: An Example of Successful Aboriginal
           Engagement in Newfoundland and Labrador
The Voisey’s Bay nickel-copper-cobalt mine            Construction of the mine and associated
provides an example of a project that had an          concentrator and port facilities started in
initial troublesome start in terms of its             2002 and was completed in late 2005. The
relationships with Aboriginal communities,            mine opened about six months ahead of
but has now progressed to the point where it          schedule and, with exemplary timing, was
has become a model for the involvement and            able to take full advantage of the recent
rapid advancement of Aboriginal groups in             surge in nickel prices. In 2006, CVRD (now
the mining industry.                                  Vale) took over Inco and later formed Vale
                                                      Inco to manage its Canadian nickel
HISTORY                                               operations, including the Voisey’s Bay
The Voisey’s Bay deposit was discovered in            project.
1994 and quickly became known as a world-
class nickel discovery. The project was               The main features of the Voisey’s Bay site
initially run by Diamond Fields International         are an open-pit mine, a concentrator, waste
and underwent intensive exploration with              rock as well as storage areas, and tailings
the result that, by 1997, several significant         disposal areas, in addition to an airstrip,
deposits had been outlined. The project is            port, and concentrate storage facility.
located close to Inuit and Innu communities           Concentrate is shipped out by ice-
on the coast of Labrador and lies within the          strengthened vessels.
land claims of both groups. Early
engagements with these groups were not                ENVIRONMENTAL PROTECTION
always successful and at times became                 The project was subject to a comprehensive
confrontational. In 1995, the exploration site        panel review with representation by the
briefly became the site of a face-to-face             federal and provincial governments, as well
confrontation while a later attempt to                as the Labrador Inuit and Innu. The detailed
conduct advanced exploration was blocked              review led to the creation of an
through Aboriginal intervention and an                Environmental Management Board
injunction.                                           comprised of government and Aboriginal
                                                      representatives to provide advice on
However, that was the low point in the                environmental protection during
project’s history. In 1996, it was purchased          construction and operation of the mine. The
by Inco who proceeded to take it towards              company also instituted an Environmental
development and began a program of                    Protection Plan to ensure compliance with
Aboriginal consultation, including the                all environmental requirements and
negotiation of Impact and Benefits                    incorporating Aboriginal participation.
Agreements (IBAs). This culminated in a
series of agreements in 2002 in which Inco
provided IBAs to the Inuit and Innu groups
and also reached an agreement with the
Province of Newfoundland and Labrador on
the development of the project. This was
followed in early 2005 by settlement of the
Labrador Inuit land claim. The Innu land
claim remains under negotiation.




                                                 31
ABORIGINAL EMPLOYMENT AND                            Labrador to receive Adult Basic Education
TRAINING                                             (ABE) designation.
Approximately 500 people, of which 54%
are Aboriginal, are employed in supporting           ECONOMIC/BUSINESS DEVELOPMENT
operations at the mine site. More than 350           Vale Inco provides preferential employment
Aboriginal people participated in training           and business opportunities for Labrador
related to the project. Pre-employment               Aboriginal persons and companies. A total
training was offered in communities                  of $515 million in contracts was awarded to
throughout Labrador through the Joint                Aboriginal companies during the
Voisey’s Bay Employment and Training                 construction phase of the project. The
Authority. The IBAs required the                     company also encouraged capacity-building
establishment of Innu and Inuit Employment           for Aboriginal joint ventures to meet its
Coordinators to facilitate the hiring of Innu        supply and service needs and, as a result, the
and Inuit and to provide project information         majority of its operations contracts are with
to local residents. An Inuit Employee                Aboriginal businesses.
Advisory Committee was also developed to
provide advice to site management.                   SOCIAL, CULTURAL AND
                                                     COMMUNITY SUPPORT
In January 2007, the company opened its              Vale Inco supports cultural and community
Skills Development Centre at the mine site.          events, has established scholarships that are
Through this, employees are offered an               available to the Innu and Inuit, and is
opportunity to advance their education and           providing funding to schools to encourage
to improve their prospects for advancement           attendance and student development. The
while staying employed with the company.             company has also contributed to the
The Skills Development Centre is the only            development of new community facilities in
private work site in Newfoundland and                the Aboriginal settlements of Nain,
                                                     Sheshatshiu, and Natuashish.




                                                32
  Raglan Mine - Quebec: An Agreement Designed to Harmonize
Relations and Foster Opportunities Between Xstrata Nickel and the
                  Local Aboriginal Communities
PROJECT                                               THE AGREEMENT
The Raglan mine sits upon one of the                   In February 1995, the Raglan Agreement
world’s finest sulphide nickel deposits in the         was signed between the mine operator, the
vast Ungava Peninsula in Nunavik, some                                     Qaqqalik Landholding
1800 km north of Montréal (Quebec).              “This year’s profit-      Corporation of Salluit,
                                                 sharing will be again     the Salluit community,
                                                 put to good use in        the Nunaturlik
                                                 developing economic
                                                                           Landholding Corporation
                                                 and training
                                                 opportunities, which      of Kangiqsujuaq, the
                                                 will contribute to the    Kangiqsujuaq
                                                 well-being of Inuit       community, and Makivik
                                                 communities.”             Corporation, which
                                                 Pita Aatami, President    oversees the political,
                                                 of Makivik Corporation,
                                                 April 2008
                                                                           social, and economic
                                                                           development of Nunavik.
                                                       The agreement includes profit-sharing
                                                       measures and trust fund payments over an
                                                       18-year period, with the mine making a
                                                       payment of $32.6 million to the Makivik
                                                       Corporation, representing the local Inuit
                                                       communities’ share of the profits generated
The mine began production in 1997 after                in 2007 by the mine. The agreement also
more than 30 years of exploration,                     guarantees preferential hiring and
negotiation, and development. In August                contracting to local, qualified Inuit
2006, Xstrata PLC acquired ownership of                employees and businesses. The Raglan
Falconbridge Limited and has been                      Committee meets several times each year to
operating the Raglan mine under the Xstrata            discuss environmental concerns and report
Nickel business unit since that time. Today,           on the progress of the agreement. Inuit
the nickel and copper-producing facility               representatives from Salluit, Kangiqsujuaq,
operates three underground mines and one               and Makivik Corporation occupy half of the
open-pit mine. Once crushed and treated, ore           committee’s six seats with mining company
is trucked 100 km to the port of Deception             officials holding the balance.
Bay where it is transported by sea for
smelting (in Sudbury, Ontario) and refining           EMPLOYMENT AND TRAINING
(in Kristiansand, Norway). Roads are scarce           Overall, the Inuit employment rate at Raglan
in Nunavik, with the nearest Inuit villages of        is about 16%. Employees are flown in from
Salluit and Kangiqsujuaq accessible only by           surrounding communities for two-week
air from the mine site. The current mine life         shifts, followed by two weeks off, and are
is estimated at more than 30 years.                   housed in a 580-room, hotel-style complex.
                                                      The facility contributes to further
                                                      employment by contracting to a number of
                                                      Inuit-owned companies and joint ventures



                                                 33
that provide goods and services to the mine.          SOCIAL/CULTURAL AND COMMUNITY
Training programs aim to provide further              SUPPORT
opportunities. The Raglan Employment and              In an attempt to ease the strain of separation
Technical Training Committee (RETTC) has              from families and isolation at the mine site,
developed an aggressive Inuit training plan           Inuit workers are flown to their home
in an attempt to employ Inuit workers at all          communities at the end of each two-week
skill levels and increase the Inuit                   shift. Cross-cultural training programs,
representation to over 20%. Raglan’s Inuit            career counseling, and employee assistance
employment and training officers cooperate            programs are designed to address the current
with local agencies to find job candidates for        and future needs of Inuit and non-Inuit
the training program. Raglan has organized            employees. Access to a freezer and kitchen
awareness activities in all 14 of Nunavik’s           facilities for storing and preparing country
high schools to discuss with students future          food are available to Inuit employees.
mining-related jobs and careers at the mine.
Furthermore, to reinforce this initiative, the
                                                      ENVIRONMENTAL PROTECTION
Raglan Education Fund provides
                                                      After extensive baseline studies, the Raglan
scholarships for post-secondary studies in
                                                      project was designed to minimize water
mining-related fields.
                                                      effluent, water consumption, and air
                                                      emissions while containing acid mine rock
ECONOMIC/BUSINESS DEVELOPMENT                         and providing for progressive reclamation of
Since the beginning of its expansion process          tailings. The six-member Raglan
four years ago, the Raglan mine is proud to           Committee, with 50% Inuit representation,
note that its sustainable development                 meets several times each year to discuss
strategy, as mentioned in the Raglan                  mine-related environmental issues. In order
Agreement (1995), has concretely                      to protect the fragile sub-Arctic permafrost,
materialized in terms of the mine’s                   the workers’ residence stands 40 feet above
contribution to the Nunavik economy and its           the ground on steel pile foundations.
communities. In fact, not only has the
annual profit-sharing program increased               Also, in collaboration with the two
since 2004 for its Inuit stakeholders, but the        neighbouring Inuit communities, Raglan
mine’s Inuit business partners (contractors           conducted an Arctic char monitoring
and joint ventures) have also seen their              program by integrating their traditional
accrued interests double since they were              knowledge into a Joint Scientific Fishing
awarded contracts from Raglan. The mine’s             Program. In fact, traditional Inuit knowledge
direct contribution to Nunavik’s economy is           of the environment was also a factor in
forecast to be $130 million by the end of             environmental impact assessments prior to
2007; this includes profit sharing with               mine operation, with local knowledge of
stakeholders, employees’ salary earnings,             Arctic chars and of marine mammal
and business contracts with Inuit companies           migration patterns (e.g., for seals) resulting
and joint ventures.                                   in Raglan’s decision to shorten the shipping
                                                      season and avoid ice breaking from March
                                                      to June in Deception Bay.




                                                 34
REFLECTIONS ON WHAT WORKED                           “We are proud of
There are a number of factors that can be            our strong
identified as having contributed to a                relationship with the
successful agreement and partnership with            local communities
the local Aboriginal communities. These              and remain
include the following:                               committed to
                                                     fostering effective
    Clearly defined rights of ownership over
                                                     engagement with all
    the land established as part of the James        stakeholders.”
    Bay and Northern Quebec Agreement,               Ian Pearce, Chief
    ratified in 1975.                                Executive Officer of
    The existence of an organization                 Xstrata Nickel, April
                                                     2008
    representative of the people that could
    negotiate on their behalf and a fairly
    stable political structure within the
    communities.
    Early contact with and involvement of
    local communities, which created a
    climate of trust and a feeling of                  For more information:
    ownership by all over the process.
    A well-defined procedure for feedback              www.xstrata.com
    and monitoring implementation of the
    agreement.
    An ongoing joint planning and
    information-sharing mechanism between
    the company and key partners relating to
    training and employment, which
    provided a forum for understanding each
    other’s perspective.
    Regular information sharing between the
    company and the partners in the
    communities and Makivik.
    In March 1993, Falconbridge and
    Makivik Corp. signed a memorandum of
    agreement that set out the discussion
    points for what would become the first
    IBA negotiated between a mining
    company and Inuit groups.




                                                35
                        Uranium Mining in Saskatchewan
The mining industry has a long and positive          HUMAN RESOURCE DEVELOPMENT
history of employing Aboriginal workers,             AGREEMENTS
stretching from the 1950s’ mining camps in           Human Resource Development Agreements
the Uranium City-Goldfields areas to the             (HRDA) are a requirement of Surface Lease
current uranium and gold mines.                      Agreements signed by operating mining
Saskatchewan's mining industry is an                 companies. The HRDA is negotiated
internationally recognized leader in both            between the mining company and the
employment of Aboriginal workers and in              province and commits both parties to
developing business industries with                  undertake best efforts to work to provide
Aboriginal communities in support of                 business and employment opportunities for
mining activities.                                   northern residents.

Mining companies continue to improve on              NORTHERN LABOUR MARKET
this record, with increasing numbers of
Aboriginal people employed in senior
                                                     COMMITTEE
management positions at their mine sites.            This committee, made up of representatives
Year-end statistics for 2006 show that               of communities, Aboriginal organizations,
Northerners held 51% or 1266 of 2459 jobs            operating industries, the provincial
directly related to northern mining. Eighty-         government, and the federal government,
nine percent of northern mining employees            examines employment opportunities in the
were of Aboriginal ancestry.                         region and plans training programs to match
                                                     those opportunities.
The uranium mining industry has also
encouraged the development of joint
                                                     MULTI-PARTY TRAINING PLAN
ventures between experienced southern                (MPTP)
contractors and Northerners in order to help         The MPTP is a partnership between the
Aboriginal and northern businesses gain              mining industry, Aboriginal organizations,
experience and access opportunities to               communities, and the provincial and federal
supply goods and services. Areas of                  governments that is designed to provide
successful joint ventures include trucking,          training for employment opportunities for
catering, security, janitorial, construction,        northern residents in the mineral industry.
and underground mine development                     Training programs are developed for
services. In 2006, the value of goods and            identified opportunities and timed to the
services purchased by the uranium industry           need for those occupations in the industry.
was $530 million, of which $217 million              Initially established for a five-year term, it
(41%) was paid to businesses based in                continues to be renewed.
northern Saskatchewan.
                                                     ENVIRONMENTAL QUALITY
Saskatchewan policy for the mining industry          COMMITTEES (EQC)
in the North is to encourage best efforts in         These committees interact with the
providing socio-economic benefits such as            government and mining industry to provide
employment to Northerners. The programs              input into uranium mine operations
and regulatory instruments developed in              throughout the mine’s life cycle. Committee
cooperation with industry, Aboriginal                members are appointed by communities and
communities and representative agencies              bring forward concerns of the affected
include:                                             communities to the government and


                                                37
industry, and communicate information on          communities. In effect, the Saskatchewan
mine practices back to the communities.           approach is not a mine-by-mine approach;
                                                  rather, it is a regional approach. Individual
NORTHERN STRATEGY                                 companies sign HRDAs that commit those
The Northern Strategy, negotiated between         companies to improving northern
northern leaders and the provincial               employment and business opportunities. The
government, outlines a broad economic             Northern Labour Market Committee
development strategy for northern                 coordinates training requirements with
Saskatchewan. It recognizes the importance        educational institutions, companies, and
of working in partnership with Aboriginal         communities. Funding is provided through
organizations and other representatives to        the Multi-Party Training Plan. The EQC
develop the northern economy and improve          ensures that environmental and socio-
opportunities for northern residents.             economic concerns are communicated and
These tools have strengthened the mutually        addressed between the mining industry,
beneficial relationship among the mining          government, and northern communities.
industry, government, and northern




                                             38
                         The Minto Mine Project:
                   An Example of Successful Partnering
              Between First Nations, Government and Industry
INTRODUCTION                                          Category “A” Settlement lands flow to the
The Minto mine is a high-grade copper-gold            respective First Nation.
mine that commenced commercial
production on October 1, 2007. Located                FIRST NATIONS AND INDUSTRY
240 km north of Whitehorse, the mine is an            WORKING TOGETHER
open-pit operation with significant copper,           The Minto mine is proceeding with full
gold and silver reserves. Concentrates are            participation from the Selkirk First Nation.
exported via the Port of Skagway, Alaska, to          The mine and the Selkirk First Nation have
smelters in Asia for treatment and sale. In           negotiated a 0.5% net smelter royalty on
addition, significant exploration potential           mine production, and have entered into a
exists on the Minto property and aggressive           Cooperation Agreement that ensures local
exploration programs conducted by                     employment and contracting opportunities
Sherwood have met with considerable                   for First Nation businesses, as well as
success.                                              training on construction, mining, and
                                                      processing plant jobs.
This is the first new hard rock mine to go
into production in the Yukon in the last              The Minto/Selkirk First Nation Agreement
decade. Sherwood Copper began                         also covers environmental issues. The
commercial production at the Minto mine               Yukon government played an important role
only two years after acquiring the property.          in guiding the Minto mine through the
The success of this project is, in large part,        permitting process. While holding Minto to
due to the positive and cooperative                   strict environmental standards, Yukon has
relationship between Sherwood Copper, the             worked with the mine proponents to
Selkirk First Nation who holds the mineral            facilitate an efficient review process. This is
rights, and the Government of Yukon.                  consistent with Yukon’s commitment to
                                                      develop a positive and robust investment
Mineral rights over most of the Yukon are             climate as a result of the settlement of land
held by the territorial government. In areas          claims and devolution, and a solid
where a Yukon First Nation has settled a              partnership between Yukon and First
land claim, there may also be lands with              Nations governments. Minto Exploration's
mineral title held by the First Nation. Some          plans to accelerate the project have been
of these lands (referred to as Category “A”           made easier by a willing and supportive
Settlement land) are subject to existing              Yukon investment environment. The
mineral claims held by third parties. As part         Government of Yukon helped the company
of the negotiated Final Agreements, the               work quickly through the permitting process
Yukon government continues to administer              and assisted the Selkirk First Nation with
the mineral claims on settlement land                 funding for implementing the Cooperation
through the encumbering rights provision.             Agreement between Minto Exploration Ltd.
This provision provides government with               and the Selkirk First Nation.
the ability to manage the claims under the
authority of the Quartz Mining Act. In this
situation, permitting, licensing and
collection of royalties continue with the
Yukon government. Royalties paid on


                                                 39
A NEW PARTNERSHIP                                    regulatory process, and a solid partnership
In February 2006, a Memorandum of                    between the Yukon and First Nation
Understanding was signed between the                 governments.
Yukon government and the Selkirk First
Nation that paved the way for a cooperative          The Minto mine may be the first new hard
and collaborative working relationship               rock mine to go into production in the
between the two governments.                         Yukon this century, but its success bodes
                                                     well for future major mine projects.
The partnership is designed to ensure that
the Minto mine development provides                  LESSONS LEARNED
opportunities and benefits for the Selkirk                    Good consultation can be done
First Nation and its members, as well as for                  alongside timely regulatory
Yukon and the people and businesses of the                    decisions.
territory.                                                    A clear, concise framework that sets
                                                              out First Nation land ownership and
The Memorandum of Understanding                               rights aids with the decision-making
between the Selkirk First Nation and the                      process and relationships with
Yukon government outlines how the two                         partners.
governments will work cooperatively on                        Clarifying communications and
matters related to the new mine and on the                    consultation obligations in final
power line extension to the mine from the                     agreements and Memoranda of
main transmission line currently being                        Understanding to all parties is crucial
constructed from Carmacks to Pelly                            for success.
Crossing.                                                     All parties fostering good
                                                              communications with themselves
Highlights of the MOU include                                 and others increase the chance of a
administration of encumbering rights, fiscal                  successful partnership.
arrangements, regional development impacts                    First Nation capacity challenges
and opportunities, and the use of land in                     require effective communication
Minto and Pelly Crossing.                                     efforts by all parties to seize
                                                              opportunities and achieve positive
The Yukon government and the Selkirk First                    outcomes.
Nation have demonstrated their commitment
to implementing the MOU. This is a large                      For more information:
project that has come to the First Nation’s                   www.sherwoodcopper.com/s/
traditional territory and both governments                    Home.asp
are working hard to ensure that this project
will provide meaningful business
opportunities, employment, and other
benefits to Selkirk First Nation citizens and
to all Yukoners.

The Minto mine demonstrates how Yukon is
developing a positive and robust investment
climate as a result of the settlement of land
                                                     The Minto mine – ore storage and mill structures
claims and devolution, a competitive




                                                40
        The Restoration of Abandoned Mining Exploration Sites
                         in Northern Quebec:
          A Partnership Between the Provincial Government,
                          Inuit and Industry
The restoration of 18 abandoned mining                Alleviating the environmental impacts
exploration sites is being undertaken in              caused by these abandoned mine sites was a
Northern Quebec (Nunavik) as the result of            priority for the local communities and the
a partnership agreement between the                   Quebec government. Working together and
Government of Quebec (the Ministère des               being joined by the industry in a creative
Ressources naturelles et de la Faune), the            partnership is a step further for the
Kativik Regional Government, Makivik                  respectful and sustainable development of
Corporation, and the Nunavik Restor-Action            Northern Quebec.
Fund. This Fund brings together many
organizations, including more than 30
companies currently active in Quebec.

The restoration process will include
removing hazardous materials and on-site
burning of combustible and non-toxic
debris. The total cost of the clean-up is
estimated at $4.1 million and contributions
are coming from the Quebec government,
the mineral industry, and Makivik
Corporation. The restoration is expected to
be completed by March 31, 2012, at the
latest and is under the management and
responsibility of the Kativik Regional
Government.




 For more information:

 Denis Blackburn                                             Michael Barrett
 Ministère des Ressources naturelles et de la Faune          Kativik Regional Government
 Government of Quebec                                        Tel.: 819-964-2961
 Tel.: 418-627-6365, ext. 5472                               mbarrett@krg.ca
 denis.blackburn@mrnf.gouv.qc.ca




                                              41
          Findings of the Workshop on Aboriginal Engagement
OVERVIEW OF THE WORKSHOP                              to engage in discussions on a regular
On June 6, 2008, Natural Resources                    basis and should strive to communicate
Canada’s Minerals and Metals Sector, in               effectively and clearly. There should be
collaboration with the Aboriginal                     a continuous flow of information and the
Engagement Task Group, held a one-day                 information-sharing process should be
workshop in Ottawa. The key goals of the              transparent and open.
workshop were to review the case studies              All parties must be fully committed to the
related to Aboriginal engagement in mining            engagement process. Engagement with
and energy and to discuss critical success            Aboriginal communities should occur at
factors and key challenges that hinder                an early stage in the life cycle of a
successful engagement. Over 65 key mining             project and, whenever possible, certain
and energy participants representing                  related activities (e.g., information
Aboriginal organizations, federal, provincial         sessions) should take place with the
and territorial governments, and mining and           entire community. There should also be
energy industries attended the workshop.              follow-through and follow-up on all
Representatives from the jurisdictions made           commitments with communities, and
presentations in the plenary session on their         care must be taken to ensure that all
case studies and lessons learned. Following           potentially affected groups at the
the presentations, participants were asked to         grassroots level are informed and
discuss the cases and identify the critical           involved.
success factors and key challenges. This              The capacity in the communities must be
section summarizes the outcomes of the                developed and sustained throughout the
discussions.                                          life cycle of a project. The capacity for
                                                      Aboriginal communities to be engaged
CRITICAL SUCCESS FACTORS FOR                          successfully can be developed via
                                                      training and job creation. Acquiring new
ABORIGINAL ENGAGEMENT IN THE
                                                      skills will provide community members
MINING AND ENERGY SECTORS                             with long-lasting benefits.
Once the participants had discussed all of            Engagement frameworks for working
the case studies and identified critical              with Aboriginal communities need to be
success factors, they were asked to identify          clear, open, and flexible. Frameworks
which factors they believed were the five             and protocols must take into
most important ones. In the plenary session,          consideration community values, adopt a
each table presented the five factors they            community’s perspective, be responsive,
had identified.                                       and be developed using a consistent
                                                      approach.
In all, 19 critical success factors were              The values and the social, economic, and
identified by the participants (Annex I). In          political structures of the communities
order to prioritize the perceived importance          need to be clearly understood by
of each factor, the participants were invited         industry and stakeholders. This includes
to vote on which they felt were the most              understanding the expectations of the
critical to successful engagement. Following          communities, their political
are the top five that received the most votes:        complexities, and key community
     There must be effective communication            concerns (e.g., environmental, health,
     and information sharing between all              etc.).
     parties involved in mining and energy
     projects. All parties should be prepared


                                                 43
Although the results of the voting clearly           and a break in the trust between the
identified the top five critical success             parties.
factors, the additional factors (listed in           Unsettled land claims and treaty issues.
Annex I), as well as others not identified at        Unsettled land claims, unresolved treaty
the workshop, are essential for fully                issues, and treaties that are out of date
engaging Aboriginal peoples and                      create uncertainty and have an impact on
communities in the mining and energy                 engagement. Aboriginal communities,
sectors and could vary by context and by             through territorial stewardship, are
jurisdiction.                                        responsible for taking care of the Land
                                                     for present and future generations.
KEY CHALLENGES TO SUCCESSFUL                         Unsettled land claims impede
ENGAGEMENT                                           opportunities for development by
In the second half of the workshop,                  limiting the ability of Aboriginal
participants were asked to identify key              communities to determine what the best
challenges to successful Aboriginal                  approach is for attaining economic
engagement (Annex II). The analysis of the           growth for their people while ensuring
points raised during discussions revealed            respect for the Spirit of the Land.
that there were five key challenge themes.           Not being able to identify who should be
(These themes were identified by                     contacted by the industry during the
categorizing and organizing the specific             engagement process. In many
challenges raised by the participants.)              Aboriginal communities, it is not clear
    The lack of capacity in areas that are           who should be contacted when a
    essential for successful engagement.             company wants to initiate a mining or
    Many Aboriginal peoples and                      energy project. It is often difficult to
    communities do not have a full                   identify and communicate with the key
    understanding of the mining and energy           people and representatives from the
    industry. Key players lack proper human          rights-bearing community. In some
    and financial resources and do not have          instances, the best approach would be to
    the expertise to fully understand all            contact the Chief and Council; in other
    issues related to mining and energy              situations, it may be necessary to meet
    projects and Aboriginal engagement,              representatives from the economic
    including the capacity to fully                  development group in the community.
    understand the ramifications of                  Government “red tape.” Red tape
    contracts.                                       challenges include the differences in
    Not effectively managing the                     jurisdictions from province to province,
    expectations of key players. Many                and issues with legislative frameworks,
    groups have unrealistic desired outcomes         acts, and regulations. The details
    when mining and energy projects are              required on each project become
    undertaken. Engagement can be                    burdensome, and the length of time to
    negatively affected when community               obtain responses from the government
    and industry expectations are poorly             causes many delays in the activities
    managed, thus leading to disappointment          related to mining and energy projects.




                                                44
                                         Conclusion

The case studies and lessons learned                 commitment, adequate Aboriginal capacity,
presented in this compendium demonstrate             a flexible framework, and mutual
that proactive and mutually beneficial               understanding. A certain number of
relationships are taking place between               challenges were also identified by the
governments, Aboriginal communities, and             workshop participants. Among the greatest
the industry in all jurisdictions. It is also        challenges were the lack of Aboriginal
recognized that a wide range of tangible             capacity, the ineffective management of
benefits can flow from positive relationships        expectations, unsettled land claims and
with Aboriginal communities in mining and            treaty issues, not knowing who to consult,
energy development. These benefits include           and government “red tape” issues.
employment, economic and business
opportunities, and improvement in                    As highlighted in the case studies,
community infrastructure and training. The           governments, Aboriginal peoples, and the
case studies also illustrate that there is no        industry are increasingly working together
uniform model of engagement; approaches              towards sustainable mining and energy
must be adapted to the local context.                development that can lead to self-reliant
                                                     communities through partnerships,
Discussions at the stakeholders’ workshop            employment, skills development, and joint
around the case studies pointed to critical          ventures. This progress provides a good base
success factors and key challenges that              for enhancing the growing relationships
served to illustrate what can be done to             between all players. However, it is
successfully engage Aboriginal peoples and           recognized by all stakeholders that
communities in the mining and energy                 Aboriginal engagement in the mining and
sectors. According to the workshop                   energy sector is complex and that there are
participants, key elements for successful            still challenges that will require continuing
Aboriginal engagement are: open and                  collaborative effort to overcome.
transparent communications, high levels of




                                                45
                                                Annex I
                               Detailed Description of Each Critical Success Factor Given by          # of
Critical Success Factor                                                                              Votes
                                                         the Tables
1) Establish the Type
of Process: Political or   •     Need to determine if the process is political or pragmatic.          0
Pragmatic
                           •     Ensure the right people are involved and the right people are “at
                                 the table.” (This may include rights holders, decision makers,
2) Involve the Right
                                 and stakeholders.)                                                   17
People
                           •     Ensure the people “at the table” are the same over the longer
                                 term.
3) Clarify Objectives      •     Obtain a clear understanding of the objectives of all parties.       6
                           •     Communicate effectively and clearly and be prepared to
4) Ensure Effective              engage in discussions (especially with respect to the
Communication and                framework).                                                          26
Information Sharing        •     Ensure there is transparent and open information sharing.
                           •     Ensure there is a continuous flow of information.
5) Commit to the           •     Need to commit to the engagement process, follow through
                                                                                                      23
Engagement Process               on it and ensure there is follow-up.
6) Engage Early            •     Ensure engagement is done regularly and at an early stage.           3
                           •     Ensure there is understanding of:
                                 - the values and expectations of the communities;
                                 - the cultural and political complexities of the
7) Develop
                                    communities; and
Understanding of                                                                                      20
                                 - the socio-economic, environmental, health and cultural
Communities
                                    situation of the communities (this needs to be
                                    understood especially well by industry and
                                    government).
8) Use a Consistent
                           •     Ensure a consistent approach is taken.                               0
Approach
                           •     Ensure capacity building is done when it is required.
                           •     Ensure communities are involved in the capacity-building
                                 process.
                           •     Capacity should be built and supported throughout the life
9) Build Capacity                                                                                     23
                                 cycle of the project.
                           •     Capacity building may include improving governance
                                 structures.
                           •     Ensure funding is provided for capacity building.
10) Build Relationships    •     Ensure relationships are built at an early stage. (Note: Legal
                                                                                                      5
Early                            representatives should not be involved at this stage.)
11) Recognize and
                           •     The rights of communities should be recognized.
Respect Rights and                                                                                    18
                           •     Aboriginal and treaty rights and titles should be respected.
Treaties
12) Use Adaptive and       •     Approaches should be adaptive.
                                                                                                      0
Flexible Approaches        •     Approaches should be flexible as projects move forward.
13) Ensure Next Steps
                           •     Next steps should be clear.                                          2
Are Clear
14) Make Long-Term         •     Long-term commitments should be made that go beyond the life
                                                                                                      9
Commitments                      cycle of a project.
15) Manage
                           •     Expectations should be managed effectively.                          7
Expectations



                                                     47
                      •   The engagement framework should be open, transparent,
16) Use an Open and
                          flexible, responsive, and developed using a consistent            21
Flexible Framework
                          approach.
                      •   Agreements and accommodation must be appropriate to the
17) Develop
                          state of the discussions (i.e., Memorandum of Understanding
Appropriate                                                                                 7
                          [MOU] versus Impacts and Benefits Agreement [IBA]), and must
Agreements
                          be mutually beneficial.
18) Ensure There Is
                      •   Ensure there is respect between the different groups.             10
Respect
                      •   Trust should be built and maintained throughout the entire life
19) Build Trust                                                                             7
                          cycle of the project.




                                              48
                                       Annex II
Challenge Theme                           Challenges Identified by the Tables
                   •   There is a lack of capacity on all sides (especially with respect to the
                       lack of human resource and financial capacity/expertise).
                   •   A number of the First Nation groups do not have the capacity to fully
                       understand the ramifications of contracts, deals, etc.
                   •   The capacity does not exist to determine who to contact to get funding.
Lack of Capacity   •   There are issues with staff turnover (across the board), a lack of
                       knowledge of the industry, and a lack of financial capacity.
                   •   There is a lack of capacity in communities (especially small, rural
                       communities), government and industry to understand issues clearly.
                   •   There are a number of small communities that have limited human
                       resources.
                   •   Many groups have unrealistic expectations. (This challenge was raised
Managing               by two of the eight table groups.)
Expectations       •   A key challenge is being able to manage and control expectations.
                   •   Political expectations need to be more effectively managed.
                   •   Unsettled land claims. (This challenge was raised by three of the eight
                       table groups.)
                   •   The lack of certainty with respect to outstanding assertions and
                       unsettled land claims.
                   •   There are historical treaties that have lost their relevance.
Land Claims and
Treaties           •   Aboriginal communities through territorial stewardship are responsible
                       for taking care of the Land for present and future generations.
                       Unsettled land claims impede opportunities for development by limiting
                       the ability of Aboriginal communities to determine what the best
                       approach is for attaining economic growth for their people while
                       ensuring respect for the Spirit of the Land.
                   •   In many Aboriginal territories, it is not clear who should be contacted
                       when one wants to initiate a mining project.
                   •   It is difficult to identify and communicate with the key people and
                       representatives from the rights-bearing community.
                   •   There is a lack of clarity with respect to “duty to consult.”
Consultation       •   In some instances, the best approach would be to contact the Chief
Challenges             and Council; in other situations, it may be necessary to meet with
                       representatives from the economic development group in the
                       community. It is important, as well, to consider claims to traditional
                       territories that may be held by individuals or families, as opposed to
                       the community as a whole. In these cases, industry could meet directly
                       with the individuals or families, or could reach out to them with the
                       assistance of a community representative.
                   •   Government red tape is a key issue. (This challenge was raised by two
                       of the eight table groups.)
                   •   Red tape challenges include: i) differences in jurisdictions from
Government Red         province to province; and ii) issues with legislative frameworks, acts,
Tape                   and regulations.
                   •   The details required to follow through on each project become
                       burdensome, and the length of time to obtain responses from the
                       government causes many delays.




                                             49
                   •   Key players (on both sides) change and political agendas change.
                   •   There is a lack of federal and provincial government coordination.
                   •   There is unstable leadership.
                   •   There is a lack of government and industry understanding of, and
                       commitment to, the socio-economic development of communities.
Other Challenges   •   There is no shared understanding of intent.
                   •   The political/pragmatic agenda needs to be separated.
                   •   Inevitable social and economic dislocations.
                   •   The fact that most mines are small, marginal, and short term.
                   •   There is a lack of cultural awareness.
                   •   There is a history and legacy of a lack of trust.




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