TORONTO (miningweekly.com) – In Ontario the relationship between the mining sector, the provincial government and the First Nations is changing rapidly. Once often viewed as an afterthought, consultation with aboriginal communities is now critical for the success of a project and entails constant dialogue.

But the process still has hurdles to overcome. This is particularly true for the north of the province, an area that includes the Ring of Fire region, where world-class chromite deposits abound.

THE RING THAT BINDS

On June 11, Cliffs Natural Resources announced that it was freezing work on the feasibility study for its $3.3-billion Black Thor chromite project within the Ring of Fire. One of the issues cited by the company was the need for greater clarity relating to First Nations negotiations and the position of the government. Several commentators argued the outcome was a major setback.

“But Cliffs hasn’t stopped discussions with the First Nations communities and I don’t have a sense that they’ve backed away from their interests,” chief negotiator for the Matawa First Nations Bob Rae told Mining Weekly Online.

The Matawa comprises the nine First Nations most directly affected by the Ring of Fire’s development.

“Cliffs wants to see greater clarity in the relationship with government and the First Nations before making more decisions about the timing of further development,” he said. “Frankly, I think that’s wise; I also agree there has to be greater clarity.”

“The Ring of Fire is a huge project and we have an exciting opportunity,” Ontario Minister of Northern Development and Mines Michael Gravelle told Mining Weekly Online. “We’re working directly with the Matawa … We recognise the need for closer work with the First Nations. They must be included within the opportunities gained through mining development.”

Setting the parameters of First Nations’ rights and requirements in early stage discussions with the province’s chief negotiator, Frank Iacobucci, will be critical for Rae.

“It’s important to establish a new relationship that recognises the legitimate right to be consulted and included on issues surrounding resource development within territory that forms part of the Matawa’s historic landscape,” he said.

“The requirements of the First Nations who have lived in these regions for thousands of years has to be recognised; they can’t simply be left on the margins of economic development,” he added. “It requires changing attitudes on everyone’s part.”

Gravelle concurred, underlining the region’s enormous promise. “What we’re talking about is a smart, sustainable and collaborative development … the Ring of Fire chromite discovery has the potential to be on a similar scale to the historic discovery of nickel in Sudbury Bay. It’s got a multigenerational value, so we have to get this right.”

“But I won’t pretend that all discussions are pleasant all of the time,” he added. “Across Ontario there are occasions when tough talk still goes down. However, I think that’s part of the process we’re all working our way through.”

REACH FOR THE TOP

The key to ensuring smooth and successful negotiations is the formation of lasting relationships, according to Norton Rose Fulbright senior advisor and former National Chief of the Assembly of First Nations Phil Fontaine.

“It’s always been about relationships and, because people on both sides come and go, we need to be vigilant in maintaining open avenues of communication both individually and at corporate and community levels,” he said.

“It’s an ever-changing environment that we’re working in right now,” he added. “It’s incumbent upon all parties to be open with each other and to continuously reach out in a trusting manner.”

In dialogue with First Nations communities, Fontaine stressed the importance of understanding aboriginal culture, history and other working relationships. “Understand the history of these communities and take into account their demographics. Review existing relationships a community may have with other companies, and be aware of any previous legal actions and the causes behind this,” he advised.

“Remember that First Nations communities belong to wider umbrella organisations, such as tribal councils, provincial political associations and national groups. These linkages are important as well,” he added.

“Companies will need patience,” he said. “But they should be able to expect the same respect from the First Nations in return. This isn’t just a one-way street; if we require companies to be respectful, trusting and open, then First Nations communities should respond in kind.”

The creation of tangible and lasting work is also a central issue, with Fontaine citing concern that the jobs created should have an upwards career path.

“More can be done, particularly in terms of the executive and professional positions. I’m talking here of management and senior level positions,” he said. “And why not even have a career path to the very top? That would be an outstanding demonstration of commitment to First Nations communities in a way that appreciates both their aspirations and needs.”

Gravelle also highlighted careers as a core concern. “With the Ring of Fire, we’re talking about the potential for thousands of jobs that can last for numerous years while also offering the necessary depth and quality,” he said.

“We should remember the substantial social needs these communities have as well. This is why the federal government can play a significant role in terms of building capacity in First Nations territories. There’s a great need for this,” he added.

Rae emphasised the need for training as well. “I think there’s an understanding that more opportunities for training and education for aboriginal peoples need to be in place,” he said. “However, we also know that it will take time. [In the mining sector] you can’t simply turn around to someone and say ‘you start on Monday; best of luck.’ People need comprehensive training and that takes time.”

OPPORTUNITY KNOCKS

The Ring of Fire and wider developments in Ontario are helping formulate a template for best practise that could be implemented at a national level, Fontaine argued.

“With the Ring of Fire, we’re seeing many lessons learned in terms of ethical standards and legal requirements. Case studies are being built up that could be combined and potentially form the basis of a national platform,” he said. “This national platform could then guide best-practise in the engagement skills of practitioners on both sides.”

“Overall, we’re ensuring that there’s balance between community interests and company interests so that both can advance in tandem. For the First Nations, it’s important they’re not left behind,” added.

Aurcrest president, CEO and director Ian Brodie-Brown, who has extensive industry experience working alongside First Nations partners and stakeholders across northern Ontario, also voiced concern about aboriginal communities potentially being left behind.

“Certain aboriginal bands can’t afford to acquire an ownership stake, while others are located in areas without resources from which to benefit,” he told Mining Weekly Online. “How can we ensure their inclusion? Is there financial a vehicle that could mitigate this problem and also channel investment in the Canadian resource sector?”

Working with Ernest Royden from D&D Securities, Brodie-Brown believes the creation of a First Nations pension/wealth fund that invests in the resource sector would offer the best solution.

“If we work on the premise that about $1 500 should be invested for each aboriginal person, it would require roughly $200-million a year placed into the fund,” he said. “Put into context, the Ministry of Aboriginal Affairs and Northern Development Canada, under whose auspices this could be established, already has a budget of roughly $9-billion a year.

“The beauty of this model is the fund’s ability to gain traction; as it grows, it also reaps the rewards of investing in mining, oil, gas, exploration and infrastructure projects,” he said. “The fund would then pay out for aboriginal people who reach retirement age or, if needs be, perhaps earlier. It would be open to all First Nations communities.”

“I’ve taken the concept to the First Nations I’m involved with and, in turn, they’ve discussed it with other First Nations. I also discussed the model at a recent aboriginal lands and resources forum held in Ottawa. The response so far has been good,” he said.

“An aboriginal fund would mean an additional stream of investment in the building of resource or infrastructure projects across the country for the national benefit,” he added. “For the rest the world, it will show Canada has taken a giant stride towards forming a constructive, just and lasting relationship with the peoples of the land.”

As the new dynamic in aboriginal relations and mining sector is put into place, and as more forward-thinking measures are voiced, there is confidence that a unique opportunity for reconciliation is starting to crystallise.

“There’s a growing awareness among the First Nations and aboriginal peoples across Canada that we now have an opportunity to repair many of the things that have been wrong in our past,” Fontaine said.

“It’s a chance to make amends for the previous kinds of treatment the First Nations received not just from the government but also from the corporate sector,” he added. “If we do things right today, then the entire country will benefit tomorrow.”