TORONTO (miningweekly.com) – New revenue-sharing agreements will enable four First Nations in the Bulkley-Nechako area of British Columbia to benefit from the expansion of TSX-listed Imperial Metals’ Huckleberry copper mine.
Economic and community development agreements (ECDAs) would enable the Cheslatta Carrier First Nation, the Nee-Tahi-Buhn Band, the Skin Tyee Nation and the Wet’suwet’en First Nation to receive a share of mineral tax revenues collected by the province from the expansion of the Huckleberry mine, located 123 km south-west of Houston.
“These agreements will not only bring social and economic benefits to the four First Nations, but the entire Bulkley-Nechako region. Reaching non-treaty agreements with First Nations is an important component of our government’s BC Jobs Plan, and I'm proud that today we surpass our goal of ten new agreements by 2015. They ensure First Nations have the opportunity to participate in the economy, while giving industry the certainty to invest in our province,” provincial Aboriginal Relations and Reconciliation Minister John Rustad said.
ECDAs are agreements between British Columbia and First Nations for sharing the direct mineral tax revenue on new mines and major mine expansions.
The first ECDA was signed in 2010 for New Gold’s New Afton mine and the provincial government has subsequently inked a further ten mining revenue-sharing agreements that would bring benefits to First Nations communities, while also helping to create certainty for the mining industry.
To date, province has shared more than C$12-million in mineral tax revenues as a result of ECDAs with First Nations in whose traditional territories mines are located.
The latest agreements represent the eleventh, twelfth, thirteenth, and fourteenth ECDAs that the province had reached to ensure First Nations benefit from mining activities within their traditional territory.
Since June last year, under the BC Jobs Plan, the four ECDAs brought the total of non-treaty agreements aimed at supporting existing jobs and creating new jobs through expanding existing mines and establishing new mines, to 31.
Significantly, the new ECDAs brought the total of non-treaty agreements to 13, exceeding the provincial government’s commitment to attain ten new non-treaty agreements with First Nations by 2015.
“We are pleased to have concluded this agreement with the province. For generations, Cheslatta have watched the exploitation of their mineral resources and were never allowed a share of the benefits. This arrangement will allow the Cheslatta community to be part of the process and receive a portion of the royalties collected from the Huckleberry mine operations,” Cheslatta Carrier First Nation chief Richard Peters said.
Originally slated to close in 2014, Huckleberry Mines received a permit amendment in December 2011, extending the life of the mine to about 2021. The extension sustains close to 230 full-time and 30 part-time positions and would generate about 50 new positions.
With workers living in Burns Lake, Smithers, Houston, Granisle and Telkwa, the payroll contributes about C$20-million to local economies. With 50% owned by Imperial Metals and 50% owned by the Japan Group comprised of Mitsubishi Materials Corporation, Dowa Mining Co and Furukawa, the openpit copper and molybdenum mine has operated since 1997 and its workforce currently includes 17% First Nations members.