Twice I sent emails to the Ontario Government (specially Michael Bryant) asking questions on this issue because I felt it might be at the root of this problem. Seems where there's smoke there's fire.

Snug

The Northern Miner, 5/22/2008

Platinex, Natives, blame province for land disputes

Platinex (PTX-V) is suing the Government of Ontario for more than $70 million, claiming the government didn't fulfill its duty to consult with a First Nation group before granting it exploration permits near Big Trout Lake, Ont.

As a result, a land access dispute between the Kitchenuhmaykoosib Inninuwug (KI) First Nation community and Platinex has stretched on for nine years now.

KI is firmly against any exploration activity on its land. Six KI members were sent to prison in March for contempt of court after refusing to negotiate further with Platinex. KI claims that the cost of 18 months of litigation left the community unable to appeal the last court order, which granted Platinex access to the disputed area.

Platinex claims it has lost millions of dollars because it has not been able to gain access to the land it leased. President and CEO James Trusler felt the company had no other choice but to file a lawsuit against the government.

"Our exhaustive efforts in consultation with KI over nine years have been rejected by KI despite landmark Supreme Court rulings which have determined that a First Nation does not have a veto," Trusler said in a statement. "Our court ordered access to the mining claims has not been enforced."

Under the Ontario Mining Act, all crown land, including land subject to Aboriginal title claims are open for staking, exploration and mining without any consultation or permitting required.

The provincial Liberals have said they are committed to changing the 100-year-old act to include proper consultation with First Nations. In fact, a 2004 Supreme Court of Canada ruling said that First Nations must be consulted before development occurs; the Ontario Liberal government agrees but both the government and the courts say this means that consultation means offering information and discussing how projects should proceed.

Many First Nations groups don't believe that is consultation; saying there needs to be the possibility that no exploration will occur.

Ontario First Nations have asked the government for a moratorium on exploration on land that doesn't have their approval.

Ontario's regional chief, Angus Toulouse, with the Assembly of First Nations, says changing the mining act should be a top priority of the government, otherwise, worse conflicts could result.

In April, Robert Lovelace, leader of the Ardoc Algonquin First Nation, was sentenced to six months in prison for refusing to follow a court order to stop blockading Frontenac Venture's uranium exploration property near Sharbot Lake, Ont.

KI has proposed the creation of joint panel to examine the disputes and make recommendations for preventing similar disputes in the future.