Photo by: Reuters
TORONTO (miningweekly.com) – Canadian project developer Seabridge Gold this week entered into a comprehensive benefits agreement with the Nisga'a Nation regarding its $5.3-billion KSM copper/gold project, located in north-west British Columbia.
The agreement established a long-term cooperative relationship between Seabridge and the Nisga'a Nation under which the local residents undertook to support developing the project, participate in economic benefits from the project and provide ongoing advice.
Under the agreement that was six years in the making, Seabridge committed to provide jobs and contracting opportunities at the KSM project, education and training, financial payments and a framework for working together on ongoing development matters. The inclusive agreement also addressed the Nisga'a Nation's concerns regarding the potential environmental and social impacts of the KSM project.
“This formal expression of support from the Nisga'a Nation is a major step forward for KSM. As the only treaty nation involved in the KSM environmental assessment process, the Nisga'a's views carry considerable weight. This agreement validates Seabridge's open, transparent and flexible approach to working with the Nisga'a Nation and First Nations generally on development of the KSM project,” Seabridge chairperson and CEO Rudi Fronk said on Tuesday.
As a result of the agreement, the Nisga'a Nation would provide letters in support of the KSM project to British Columbian and Canadian regulators, as well as potential investors in Seabridge or the project, while also ensuring mutual cooperation on completing the operational permitting process for the project.
Seabridge would also make certain financial payments upon achieving certain project milestones and yearly production payments based on a percentage of the net profits, with the net profits payable normalising after the project had recovered its capital costs.
The agreement that would be effective throughout the life of the mine, also ensured strong commitments to education and training for Nisga'a citizens so that they would be better able to take advantage of the economic benefits that the KSM project offered.
The document also provided a framework for the Nisga'a Nation and Seabridge to work together to achieve employment targets and to ensure Nisga'a businesses would have preferred access to contracting opportunities and ensuring a mutual response to social impacts, which Nisga'a villages may experience as a result of the project.
“We respect the emphasis by Nisga'a Nation leadership on protecting the environmental, social and cultural heritage of all Nisga'a citizens while ensuring that they also enjoy business and employment opportunities. This agreement creates a genuine partnership between Seabridge and the Nisga'a Nation that will last for decades and we look forward to working with them to advance our mutual objectives,” Fronk said.
The KSM project is one of the largest undeveloped gold projects in the world. Proven and probable reserves total 38.2-million ounces of gold and 9.9-billion pounds of copper.