Canadian Mining Journal January 2016

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A TOUGH JOURNEY A CLOSE LOOK AT FIRST NATIONS & MINING RELATIONS CMJJan2016Cover.indd 1

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Building a stronger future—together We are proud to partner with Aboriginal communities and companies to develop innovative outreach and engagement programs across Canada. By working together, we can build sustainable solutions for our clients in the mining and metals, energy and infrastructure sectors.

To learn more about how Aboriginal communities and Hatch are partnering to create positive change, visit hatch.ca.

E N G I N E E R I N G • C O N S U LT I N G • P R O J E C T D E L I V E R Y • T E C H N O L O G I E S • O P E R AT I O N A L P E R F O R M A N C E

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CANADIAN Mining Journal

JANUARY 2016 VOL. 137, NO. 1

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FEATURES FIRST NATIONS AND MINING RELATIONS 8 THE ENVIRONMENT

Concern for “The Environment” is one of the many things that both the First Nations and the Canadian Mining Industry have in common.

10 FIRST NATIONS MINER Indigenous Junior Miner takes aggressive leap into ownership of NWT mining company.

16 PARTNERING HELPS SAVE FISHERIES B.C. mining company partners with five Indigenous communities to help protect aquatic environment near mine.

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20 INDIGENOUS ROAD BUILDERS PROVIDE VITAL LINK First Nations company keeps vital road into Ontario diamond mine safe and open year round.

22 INDIGENOUS WOMEN ASK QUESTIONS It’s been a year since the Native Women’s Association of Canada was formed, and during that time, they’ve taken a serious look at job opportunities in the mining industry.

24 THE MINING ASSOCIATION OF CANADA’S PERSPECTIVE

MAC President and CEO Pierre Gratton addresses the Canadian Aboriginal Minerals Association’s 23rd Annual Conference in Vancouver and “Mining and Indigenous Peoples: Canada’s Future.”

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COAST-TO-COAST-TO-COAST REVIEW 27 MINERAL EXPLORATION & DEVELOPMENT IN THE WEST An overview of activities on the west coast of Canada provided by the Association of Mineral Exploration British Columbia (AME BC).

28 MINERAL EXPLORATION & DEVELOPMENT IN THE EAST

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An overview of activities on the east coast of Canada provided by the Department of Natural Resources, Government of Newfoundland and Labrador.

DEPARTMENTS 5 EDITORIAL Like most January issues of magazines, the editorials focus on the year ahead and Canadian Mining Journal is no exception. This month Editor Russ Noble talks about the sad situation the mining industry is in but goes one step further to talk about The Environment too, and how it’s being equally challenged by these tough times.

6 LAW James Clare, a Partner with the Toronto-based law firm of Bennett Jones, looks at the TSX Venture Exchange’s response to the commodities slump.

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7 FIRST NATIONS A regular column by First Nations of Ontario.

8 CSR & MINING A regular column by Michael Torrance, a lawyer in Norton Rose Fulbright’s Toronto office, on Corporate Social Responsibility.

34 UNEARTHING TRENDS Bruce Sprague, a Partner and EY’s Canadian Mining & Metals Leader, Vancouver, looks at First Nations’ women as an untapped resource and possible solution to Canada’s skilled labour shortage.

JANUARY 2016

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A TOUGH JOURNEY A CLOSE LOOK AT FIRST NATIONS & MINING RELATIONS

ABOUT THE COVER

This month’s cover photo of Mark Amarok, Chesterfield Inlet, Nunavut

by Dave Brosha Photography, Long Creek PEI. Coming in February Canadian Mining Journal features Mining in Ontario, plus its PDAC Issue.

For More Information

Please visit www.canadianminingjournal.com for regular updates on what's happening with Canadian mining companies and their personnel both here and abroad. A digital version of the magazine is also available at www.digital.canadianminingjournal.com

CANADIAN MINING JOURNAL

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CANADIAN Mining Journal

EDITORIAL

January 2016 Vol. 137 — No. 1 38 Lesmill Rd. Unit 2, Toronto, Ontario M3B 2T5 Tel. (416) 510-6789 Fax (416) 447-7658 www.canadianminingjournal.com

Editor Russell B. Noble 416-510-6742 rnoble@canadianminingjournal.com Field Editor Marilyn Scales 613-270-0213 mscales@canadianminingjournal.com Production Manager Jessica Jubb Circulation Manager Cindi Holder 416-510-6789, ext. 43544 cholder@glacierbizinfo.com Publisher & Sales Robert Seagraves 416-510-6891 rseagraves@canadianminingjournal.com Sales Western Canada, Western U.S.A. and Quebec Joelle Glasroth 416-510-5104 jglasroth@canadianminingjournal.com Toll Free Canada & U.S.A.: 1-888-502-3456 ext 2 or 43734 Group Publisher Anthony Vaccaro

Established 1882 Canadian Mining Journal provides articles and information of practical

use to those who work in the technical, administrative and supervisory aspects of exploration, mining and processing in the Canadian mineral exploration and mining industry. Canadian Mining Journal (ISSN 0008-4492) is published 10 times a year by BIG L.P. Mining.

BIG is located at 38 Lesmill Rd., Unit 2. Toronto, ON, M3B 2T5.

Phone (416) 510-6891.

Legal deposit: National Library, Ottawa. Printed in Canada. All rights reserved. The contents of this magazine are protected by copyright and may be used only for your personal non-commercial purposes. All other rights are reserved and commercial use is prohibited. To make use of any of this material you must first obtain the permission of the owner of the copyright. For further information please contact Russell Noble at 416-510-6742.

Subscriptions — Canada: $47.95 per year; $76.95 for two years.

USA: US$60.95 per year. Foreign: US$72.95 per year. Single copies: Canada $10; USA and foreign: US$10. Canadian subscribers must add HST and Provincial tax where necessary. HST registration # 809744071RT001.

From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us via one of the following methods: Phone: 1-888-502-3456 ext 2; Fax: 416-447-7658; E-mail: cholder@glacierbizinfo.com Mail to: Cindi Holder, BIG Mining LP, 38 Lesmill Rd, Unit 2, Toronto. ON, M3B 2T5.

We acknowledge the financial support of the Government of Canada through the Canada Magazine Fund toward our editorial costs.

JANUARY 2016

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By Russell Noble

“No work” is the least of our worries

N

ow that we’re heading into what forecasters say will be another dismal year, it’s hard to get excited about the months ahead knowing we’re going to continue hearing more about layoffs, care and maintenance, and worst of all, outright closures.

After the past couple of years of what the industry has experienced, the words “They Shoot Horses, Don’t They?” the title of Horace McCoy’s 1935 novel, and later of a 1969 movie by the same name starring Jane Fonda, pretty much describes the ‘put me out of my misery’ feeling that many in the mining industry are feeling.

But, like all doom-and-gloom stories, there’s usually something good to say and thankfully, and somewhat surprisingly, that’s where the theme of this issue: “First Nations and the Canadian Mining Industry” comes in with a ‘positive’ message that’s encouraging for almost all miners.

As both sides of the fence have known for years, the words “First Nations” and “Mining” haven’t necessarily homogenized to make for a creamy-smooth feeling towards the use of lands and the extraction of the minerals they contain.

In fact, it’s safe to say that it’s been an oil-and-water relationship for centuries, but like I just said, things are looking a little more positive thanks to the recent emergence and understanding that there’s far more at stake than territorial lands and their contents.

The Environment is something that almost everyone now agrees is far more important than quibbling over boundaries and minerals because, as witnessed at the recent World Climate Summit in Paris, France, where even the United States, Russia and China agreed on climate-change issues, Mother Nature has been beaten to her knees because of emissions from the industrialized world.

And, admit it or not, the resources industry is partly to blame for the mess of the world.

But to get back to my point of First Nations and Mining Industry relations, the recent federal election and the subsequent meeting of Prime Minister Trudeau with the Assembly of First Nations, was a decade-late meeting that at least showed that the federal government was about to listen to the “canaries of the coal mine,” as First Nations communities were described at a recent conference in Vancouver because, “they’re out there to warn.”

Those phrases were used during one of the presentations at the Canadian Aboriginal Minerals Association’s three-day conference where more than 500 delegates from across the country heard speakers from First Nations and mining companies alike, talk about a number of things, and in almost every case, The Environment was mentioned.

It was a common thread throughout the Conference, and regardless of who was speaking, the message was clear; it’s time to clean up our act.

And the “our” was collective, and not directed at any one group because as everyone in the room agreed, the issue at hand (The Environment) was far more important than territorial rights and mining privileges.

As I quoted at the outset, “They Shoot Horses, Don’t They?” and unless everyone pulls together, and that certainly means First Nations and the Mining Industry, then the forecasters I mentioned earlier will be predicting dismal times far beyond the coming year. CMJ

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LAW

TSXV response to commodities slump

By James Clare

I

n 2015, Canada’s junior stock exchange, the TSX Venture Exchange sunk to levels that a few years ago would have been inconceivable. This drop, caused primarily by the sustained slump in commodities, led the S&P/TSX Venture Composite Index to sink below 500 points for the first time since the TMX group bought the Canadian Venture Exchange in 2001. The low point represents a 29% drop from where the TSXV started at the beginning of 2015 and a staggering 85% drop from its peak in 2007.

A primary cause of the exchange’s poor performance has been the extremely challenging market conditions facing extractive resource issuers. At present, more than 70% of the companies listed on the exchange operate within the mining or energy sector. After a two plus year depression in mining equities, combined with weak prices for most metals, as well as well as hydrocarbon products, junior resource issuers have fallen out of favour with investors.

TSXV White Paper The TSXV, conscious of the market realities facing its issuers, and with the aim of attracting new investment, conducted a lengthy consultation process with clients and stakeholders. These consultations focused on identifying new initiatives to respond to realities facing its listed issuers and other market participants in light of the sluggish capital market conditions. The outcome of the consultations was a White Paper, issued on December 17, 2015. It contains proposed broad based reforms to various TSXV rules, policies and strategies aimed at fostering renewed interest in the exchange and its services. The full text can be found at: https://www.tsx.com/resource/en/1252.

The recommendations of the White Paper were synthesized into a three-pronged strategic reform program. The first and second prongs of this program are particularly relevant for current and potential resource based issuers.

Cost of compliance The first prong of the program focuses on reducing the cost of compliance, a primary area of concern for most resource issuers.

The White Paper proposes a number of rule changes including: s eliminating the general requirement for sponsorship of new issuers undertaking a reverse takeover (RTO), change of 6|

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business (COB) or other business combination s narrowing the application of shareholder approval requirements for inactive issuers undertaking an RTO or COB s implementing a director and officer “NEXUS-type” status certification program to reduce or eliminate ongoing requirements for certain individuals s extending the shelf life of on-file personal information forms for directors and officers from three to five years eliminating escrow requirements that overlap with similar requirements of the Canadian Securities Administrators s implementing an automated system for transaction filing and accelerating response times to speed up overall transaction processing

Attracting new capital The second prong of the White Paper’s strategic reform program focuses on attracting new and more diverse capital to the TSXV. The initiatives proposed under this prong are less technical and less defined than those proposed under the first prong, but include commitments to undertake active and ongoing promotion of TSXV-listed issuers through roadshow presentations to fund managers, retail investors, investment advisors and banks and research analysts; instituting an ongoing streaming summary service of available public offerings; and introducing a new market making program to be administered by the exchange.

TSXV seeking feedback While the exchange has committed to implementing the above listed reforms under an “aggressive timeline,” prior to doing so it plans to host a series of town hall meetings where it will entertain feedback on the strategy and proposed initiatives. In the coming months, existing issuers and other interested parties who may be impacted by these reforms should carefully monitor the developments, and provide feedback as appropriate.

Whether these initiatives will be successful in achieving their intended results remains to be seen, but given the extremely challenging market environment for resource issuers, the proposed reforms should be implemented efficiently and effectively to reduce the headwinds facing junior issuers. CMJ JAMES CLARE is a partner with Bennett Jones in Toronto.

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FIRST NATIONS

Mining must include Truth & Reconciliation

By Ontario Regional Chief Isadore Day, Wiindawtegowinini

T

he Truth and Reconciliation Commission’s six-volume, 2.3-million-word final report was issued on December 15, 2015. It not only contains stories from survivors of residential schools, but a set of 10 guiding principles and 94 recommendations or Calls to Action.

While the federal, provincial and territorial governments must act upon the majority of the 94 recommendations, there are also recommendations for all sectors of society, including the churches, media, arts, academia, and industry.

For example, the churches now have less than 90 days before issuing a joint statement by March 31, 2016, on how they will implement the spiritual and religious components of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP).

The churches must also reject the concepts – such as “terra nullis” and the Doctrine of Discovery -- used by the church and state to assert sovereignty over Indigenous peoples and their lands.

However, I must point out that First Nations do not expect industry to atone for the sins of the past. But we do, however, expect to be treated as equals, and as the rightful owners of the land.

Mining companies in Canada must recognize and acknowledge the era of Reconciliation as common place in all of its dealings with First Nations as it relates to mining exploration, development, extraction and remediation. This also includes training and educating management and staff on First Nation history, culture, human rights, and anti-racism.

Here are some key points to consider: s The Truth and Reconciliation process is becoming an institution in Canada that will inspire and influence positive approaches to relationships between Canada and its First Peoples. s Implementing the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) and respecting Treaties is a major focus within the TRC Calls for Action. s Business and industry in all Canadian sectors are being prompted by the TRC Report to become aware of the report and make efforts to build bridges. This will close the divide between First Nations and Industry that was created as a JANUARY 2016

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result of ignorance of history of Canada’s Indian Residential School past. s First Nations deep connection to the land is evident in language, culture, and world view – this is a key focus in many of the calls for action. s The respect and responsibilities that First Nation peoples have for the land is an important element to the process of Reconciliation that is now being recognized by federal jurisdiction. As noted in the 2015 Speech from the Throne, the environmental assessment process will soon become formalized, adding First Nations to the decision-making process as it pertains to the protection of the environment. s Benefits to First Nations regarding mining development are also a key factor in reconciliation. The era of sealing a deal solely with an IBA, (Impact Benefit Agreement) is a thing of the past. First Nations seek to take on their roles as governments, beneficiaries and providers for their people. s The ‘Reconciliation Lens’ can be a way for industry to create stronger relations, avoid conflicts, build strong business partnerships and help achieve collective prosperity with First Nations.

In conclusion, here are four key messages that sum up the outcomes from acting upon Reconciliation and forming a new relationship with our Peoples.

1. Reconciliation can be a benefit to building strong mining partnerships with First Nations; 2. Reconciliation as a policy approach for mining companies will expedite relationship-building beyond most conflicts that arise out of resisting First Nation history and Cultural competence; 3. The cost benefit to a Reconciliation approach in the mining industry is invaluable; 4. Reconciliation in Canadian mining can cultivate a social consciousness that could define the industry as a 21st century legacy maker.

I look forward to continued dialogue with the mining industry as we work together on making 2016 a breakthrough year for positive change. Together, we will build a better, more inclusive Canada for our children, and future generations. CMJ CANADIAN MINING JOURNAL

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THE

ENVIRO N THE WORLD AGREES: ENOUGH IS ENOUGH

Photo: Thinkstock.com

By Russell Noble

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FIRST NATIONS and MINING

O NMENT Mother Nature can’t take it much longer

E

ver since John Cabot landed in Newfoundland in 1497 and started trekking westward into the unknown, exploration and later development has left its mark on The Environment.

In fact, it’s left more than a mark; it’s scarred the earth forever thanks to an unquenchable thirst for discovery, but like it or not, the world wouldn’t be what it is today if not for yesterday’s adventurers.

Regardless of how appreciative we are to John Cabot and The Vikings before him, Mother Nature has taken the brunt of their quests through the loss of trees, the displacement of wildlife, polluted waterways and often the disappearance of fish, and most recently in the news, air quality because of toxic emissions resulting in climate changes.

In just over 500 years, the world has gone from pristine to polluted, and it wasn’t until recently when the “World Leaders Unanimously Agreed” at the United Nations’ Climate Summit in Paris, France, that everyone became more aware of the fact that the world has had enough; it can’t take any more.

And that’s when The Environment started receiving the worldwide attention it deserves.

“And, it’s about time,” says The Assembly of First Nations of

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Canada, and the 634 bands it represent across the country, because that’s what indigenous people from coast-to-coast-coast want most… a clean, safe, and bountiful place to live and work.

As one delegate attending the 23rd Annual Canadian Aboriginal Minerals Association’s meeting in Vancouver said late last year: “We’re the canaries in the coal mines, we’re out there to warn.”

Philosophical, yes, straightforward, no question, but moreover, it was a sincere and insightful message that Federal Indigenous Affairs Minister Carolyn Bennett later echoed by saying, “There is every evidence Canada’s Aboriginal Peoples are indeed on the front lines of climate change.”

As already mentioned, concern for the well being of The Environment is a centuries-old topic for discussion, and when you look at the photo on these pages, it’s hard to understand how mankind can do what it’s doing to endanger such perfection.

But it is, and doing so at such an alarming rate that no matter what the 197 world leaders agreed to in Paris last year, scenes like this are being threatened around the world every day, and unless we take The Environment seriously, future generations will have only photographic images of the ‘Way We Were.’

Thankfully, both the First Nations and the Canadian Mining Industry are two groups working on improving the ‘Way We Are’ so that future generations don’t have to look back on reference material to see how things used to be.

Stories on the following pages take a closer look at First Nations and Mining Relations and how they’re working in harmony and in the best interest of everyone, and everything involved. CMJ

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BOLD & BRAVE

NWT INDIGENOUS JUNIOR MINER ANTES UP IN ITS AGGRESSIVE LEAP INTO OWNERSHIP IN MINING ECONOMY

By Northern Correspondent Bill Braden

T

wo years ago, the Dene of the NWT boldly jumped into the dragon’s jaw and launched their own mining company.

The targets: significant polymetallic potential near Great Bear Lake, and diamonds near the Ekati and Snap Lake mines.

The vision: be more than a source of labour and supplier of services to other miners. They want to be

their own stand-alone producer, among the first in Canada to pursue indigenous mine ownership.

Wait a minute. Aren’t First Nations usually railing against resource development, the constant thorn in mining’s side? And in the face of NWT’s gnarly record as a high-risk mining environment with dwindling exploration and labyrinthine regulations, what is driving a home-grown indigenous company to do this in the first place?

Aerial photo of the mill and camp at Terra Silver Mine, abandoned near the south shore of Great Bear Lake since 1985. Photo courtesy of DEMCo. LP.

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FIRST NATIONS and MINING

Darrell Beaulieu, CEO of DEMCo LP, and this year’s winner of the Skookum Jim Award from PDAC for outstanding achievement and contribution to mining by an aboriginal group or individual.

“The main thing is people want to participate and take ownership. It’s coming from the simple statements that have been made at the Dene Nation assemblies for years,” says Darrell Beaulieu, the President and CEO of Denendeh Investments Incorporated (DII) and its latest venture, DEMCo Ltd. “No one ever said we are against business or development. We said we want to be participants in development, meaningful participants.”

To a considerable extent, that has indeed been the case in the NWT. Beaulieu points to the prosperous partnerships among more than 60 NWT indigenous businesses and diamond giants De Beers, Dominion and Rio Tinto.

Between 1996 and 2011, $4.2 billion or 33 per cent of their northern spend was with indigenous companies and almost 9500 person years of employment were filled by indigenous workers in that period, about 25 per cent of the total labour quantum.

But he wanted to go beyond the jobs and service/supply deals, and take the ambitious jump to the equity level. The current slump in mining activity, and eroding values on existing properties, gave momentum to Beaulieu’s plan to create DEMCo in the spring of 2013.

“So the timing to pick up properties and/or junior mining companies is upon us,” said DII’s website at the time.

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Noel Michel of Lutsel K’e takes a break during a prospecting trip near Great Bear Lake.

Photo courtesy of DEMCo. LP.

It continued on a note of high optimism: “The silver lining to present and initiate a Denendeh exploration and mining company at this time may help create momentum for fundamental change in First Nation participation in resource development in the Northwest Territories and Canada.”

The soft-spoken Beaulieu, 58, is an Akaitcho Dene born and raised in Yellowknife who has earned numerous accolades for his leadership. The most recent is the 2016 Skookum Jim Award from the Prospectors and Developers Association of Canada, acknowledging significant achievement and contribution to mining by an indigenous group or individual.

He’s is no stranger to indigenous and northern corporate governance. He’s a three-time Chief of the Yellowknives First Nation, and has held directorships with Northland Utilities, the NWT Business Development and Investment Corporation, and numerous industry associations.

And he’s no stranger to mining either, as one of his first jobs was with Noranda Exploration doing EM surveys, mapping, prospecting, claim staking and general exploration work.

Beaulieu has been an influential advocate for Dene investment through the parent group, Denendeh Investments Limited Partnership, an alliance of 27 First Nations communities across the NWT. It boasts a diverse portfolio including oil and gas drilling services, electric utilities, communications, real estate, and now exploration and eventually mining.

Optimistic Start To get DEMCo set up, Beaulieu hired Yellowknife prospector 12 |

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Trevor Teed into the shop as exploration vice president. Teed brought with him a hunch he’d been plugging away at for almost two decades: the potential for a new discovery in the Camsell River region southeast of Great Bear Lake, directly under four historic silver producers that operated from the 1960s to 1985. ”I suggested to him that the potential for IOCG (iron oxidecopper-gold) is what attracted me to it, not silver,” says Teed.

“Darrell agreed, and despite the initial doubt of two of our three contract geologists, our initial thoughts have been proven and there is IOCG at Camsell River.”

“First it was kind of a desktop job,” says Beaulieu. “The data was all over the place. We had to go to the United Sates, Alberta, BC, the Geoscience office here in Yellowknife, personal homes, and at site too. ... it was amazing where all the data ended up after 30 years.”

They resampled thousands of metres of decades-old core at site (that saved millions of exploration dollars). The results, first disclosed in late 2014, proved out their early optimism.

“Back in the 70s they were only looking for silver. We looked at the core and did some more prospecting, and we found that hey, there’s a lot of gold there. What’s more, after our first field season, was confirmation there’s a huge magnetic body there also. It looks like we have an IOCG deposit.”

Beaulieu is too savvy to get excited at this point, but polymetalic IOCG deposits (Australia’s mammoth Olympic Dam is one) can be truly massive. The discovery of the zone, estimated roughly at some seven by 16 kilometres in size, was first announced in late 2014.

Teed says he had taken his hunch to other miners, but credits Beaulieu with the vision and the belief to carry it forward. His investigation so far has uncovered an extensive magnetic zone under the old silver digs.

“It is a significant event. I think that when the rest of Canada catches up to what we have, we’re going to see significant exploration again in the areas,” predicts Teed.

That significance is backed up by mapping and geophysical

DEMCo Exploration Vice-president Trevor Teed, CEO Darrell Beaulieu, and COO Margaret Gorman. billbradenphoto

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Yellowknife-born Trevor Teed, prospector and DEMCo VP of Exploration, at the Camsell River properties.

Photo courtesy of DEMCo LP.

work carried out by the Geological Survey of Canada, and the NWT Geological Survey over the past decade.

Geologist Scott Cairns, Manager of Bedrock Mapping and Mineral Deposits at the NTGS’s Yellowknife office, says the historic production of silver and uranium is indicative of larger polymetallic IOCG deposits in the Great Bear magmatic zone.

“They are definitely in a high mineral potential area there,” says Cairns, adding that DEMCo’s claims are at the north end of that zone, while Fortune Mineral’s NICO project, about 200km to the south, is on its southern edge.

Cairns says federal GSC geologists have recently completed a large study of alterations that can help identify IOCGs. “So there’s an enormous volume of work of geophysical characterisations, ways to track down where these potentially valuable deposits might be hidden,” he says.

DEMCo’s IOCG discovery has not sparked any new rush of interest in the region. But on a territory-wide basis, says Cairns, the number of inquiries, website and office visits to his library, and data bases, has been spiking in the past few months.

“I think what we’re seeing is that while it’s difficult to fund boots-on-the-ground exploration, companies are doing their homework right now and will be using that when conditions improve.”

In The Game As of late December 2015, DEMCo was fully engaged in planning the 2016 field program, which Beaulieu hopes will include airborne geophysical work as well as more ground sampling.

They will spin off another subsidiary, Camsell River Minerals Ltd., to carry the project.

But, just like any other junior, the team will be out there looking for private cash during one of the metal market’s deepest and most prolonged slumps.

And predictably, that’s not the only hurdle. The claim block is within an overlapping boundary of both the Tlicho and Sahtu land claim regions.

Among the available resources combed over by DEMCo were these teetering core racks, some dating back decades.

Photo courtesy of DEMCo LP.

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The four old mines on the claim block are among dozens across the NWT deemed for rehabilitation by the federal government. There is an existing airstrip, but land access would largely be on the historic Denison Ice Road from Behchoko, first opened in the 1960s, but dormant for 30 years.

Yet another layer is working with the NWT Government, as it gets used to managing the mines portfolio after its transfer from Ottawa to the NWT in April of 2013.

And, because DEMCo’s parent corporation is governed by an alliance of all NWT’s First Nations - and it’s their money that’s at risk - Beaulieu also has to satisfy a board that isn’t all that familiar with being on the investor side of the mining equation.

Was it a hard sell to get his board on side in the first place?

No, says Beaulieu, pointing to DII’s investment of about $2 million in cash and time to date. “The hard sell is going to be finding the money to add value without diluting too much.”

He says he’ll be walking the floors at the Vancouver Cordilleran Roundup and Toronto’s PDAC in 2016, promoting DEMCo. The Camsell project is where DEMCo is now fully focused, but it is also invested in the NWT’s prolific diamond fields.

In the Lac de Gras region east of the Ekati diamond mine, the Fin claim block hosts known diamondiferous kimberlites, while the Jen block has six known geophysical targets that have not yet been drilled.

The Jaedenz block, sandwiched between the Gahcho Kue and Snap Lake mines, was explored and drilled by both De Beers and Winspear in the 1990s.

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Ground-level (above) and aerial (opposite page) of mill and camp at Terra Silver Mine near Great Bear Lake.

No work was done during the 2015 season, and the company has not yet announced whether it will commit anything this year.

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Does being an Aboriginal-owned venture mean DEMCo will get a better reception from investors, or an easier ride through the North’s rocky regulatory regime?

“We haven’t really pushed it,” says Beaulieu. “We’re focussed on doing our own thing for now. It takes time to grasp and understand what is it you have? [We’re asking] the same type of questions that any junior asks, wearing the same boots, same gloves. We know it’s a high-risk business, but it’s a high reward too. Whoever is in there has really got to manage, and you’ve got to be able to sustain your own neck. In terms of the regulatory regime, that is an independent process, we respect it and expect to be treated like everyone else.”

In a February, 2015, interview with the business magazine Corporate Knights, he did allow that having the Dene communities at his own board table gives him a home-court advantage.

“I think community engagement is our competitive edge. And that edge is available because we are a Northern Dene-owned comWWW.CANADIANMININGJOURNAL.COM

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FIRST NATIONS and MINING

pany. And we’re operating in a territory where indigenous people have a significant influence on our activity,” he said.

Don Bubar, as President and CEO of Avalon Rare Metals Inc., and in previous roles with the PDAC, is a passionate advocate for indigenous inclusion in Canada’s mining sector. He believes that future mineral exploration in northern Canada will be led by indigenous businesses.

“It is natural that this participation would progress from a passive one as a service provider to a more active one as an owner of a mineral development business with title to active projects. Darrell Beaulieu and DEMCo are providing the leadership for the Dene Nation in going down this path,” said Bubar in an email.

“Part of the challenge the industry faces is simply creating more public awareness of the importance of the industry to the northern economy, especially for aboriginal communities. Eco-activists have been successful in demonizing the industry in the North. DEMCo has a key role to play in changing the perception that mineral exploration and development creates only unwanted environmental impacts, without creating significant economic benefits for northerners.” CMJ JANUARY 2016

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A WINNING PARTNERSHIP COMMUNITY EFFORT HELPS SOLVE FISHWAY PROBLEM

By Russell Noble

Shannon Haizimsque, Chief Operating Officer of the Yinka Dene Economic Limited Partnership, the commercial business arm of the Wet’suwet’en First Nations at the Huckleberry Mine site. Adjacent photo shows a series of steps lined with geotextiles and anchored with rock fill as part of the mine’s Fish Compensation Plan.

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FIRST NATIONS and MINING HUCKLEBERRY MINE

A

lmost everybody associates the name “Huckleberry” with Mark Twain’s Huckleberry Finn and his comrade Tom Sawyer, but in the mining community, Huckleberry is also the name of a Canadian mine that has been in production in northwestern British Columbia

since October 1997.

Huckleberry Mines Ltd. is an active open-pit copper/molybdenum mine located approximately 100km south of Houston, B.C.. Production rates (in 2014) were 34 million pounds of copper, 2,202 ounces of gold, and 183,218 ounces of silver and, like many mines today, it’s owned by a consortium of companies under one name, Huckleberry Mines Ltd (HML) of Vancouver.

The mine is owned and operated by Huckleberry Mines Ltd., which in turn is owned 50 per cent by Imperial Metals Corporation of Vancouver, and 50 per cent by a Japanese consortium including Mitsubishi Materials Corporation, Dowa Mining Co. Ltd., and Furukawa Co.

Partnering with First Nations Since 2013, Huckleberry Mines Ltd. has signed communication & partnership agreements with five separate First Nations organizations: Wet’suwet’en First Nation, Cheslatta Carrier Nation, Office of Wet’suwet’en, Nee Tahi Buhn Indian Band, and Skin Tyee Nation.

Marke Wong, Manager of Environmental & Community Affairs for Huckleberry Mines Ltd. says, “These types of agreements have been instrumental in the success of Huckleberry Mine. Because of the open dialogue with Indigenous communities we have generated better understanding among all parties; and this has increased First Nations access to economic opportunities such as job training, employment and service contracts, and has provided Huckleberry with dedicated community partners and a strong reliable work force and able contractors.”

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Aerial photo of Huckleberry Mine located between Huckleberry Mountain and Tahtsa Reach.

For example, Wong says Huckleberry works directly with the economic development arm of its partners to provide training, jobs and developing on-call labour contracts, including the Yinka Dene Economic Development Limited Partnership (YLP), (Wet’suwet’en First Nation); the Nootsenay Enterprises, (Cheslatta Carrier Nation); the Hunust’ ot en Investment Corp (Nee Tahi Buhn Indian Band); and the Skin Tyee Nation.

He says, that in 2014 and 2015, the company spent more than 1200 hours of on-the-job training to students and interns from the Wet’suwet’en and Cheslatta Carrier First Nations who recently graduated from the Northwest Community College’s School of Exploration and Mining, Environmental Monitoring Assistant Program (EMAP) and other programs.

In keeping with Huckleberry’s involvement with the community, the company also supports the College of New Caledonia’s Mineral Processing Assistants Course by providing instructors, on-site mill tours, and job opportunities at the mine. Several member of the Nee Tahi Buhn Indian Band have been working as on-call positions as environmental monitors and confined space guards in the mill. Huckleberry staff regularly respond to community requests to attend, speak and sponsor community events such as career days, annual meetings, mine tours and traditional community gatherings.

“Developing successful mining arrangements with Indigenous people isn’t only about technical astuteness, it’s about relationships, reconciliation and the balancing of interests” says Wong.

It’s obvious from these brief examples that Huckleberry Mines Ltd. is taking its work with the First Nations seriously, but it’s more than that.

Mike Robertson, Chief Policy Advisor, Cheslatta Carrier Nation says, “In 2005, the Cheslatta Carrier Nation challenged the mine of its commitment to sound environmental management. During the subsequent 10 years, Huckleberry management and staff committed to engage our people directly in planning and implementing a progressive reclamation program of old mining zone areas and in the development of new zones.

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Just like the re-vegetated dams and tailings sites, our environmental relationship has blossomed too.”

Chief Rene Skin, Skin Tyee Nation added, “Marke Wong of Huckleberry Mines has participated in our Nation’s annual gatherings including community open houses and cultural camps. He’s engaged directly with our youth and elders for the past two years.

He has been diligent in keeping us informed of changes to the on-going miner operation and opportunities for our people.”

Managing Impacts and Restoring the Land Like all mining, there’s a certain impact to the natural environment, and following the closure of a mine, there are permanent changes to the landscape. The Huckleberry Mine is no exception.

Conventional drilling, blasting, loading and hauling using a combination of electric drills and shovels, diesel hydraulic excavators, and both 100 and 150-ton diesel-powered haul trucks are used to process approximately 17,000 tonnes of ore a day.

Milling is accomplished by grinding the ore in a 9.75m diameter SAG mill and then through two ball mills. The resulting slurry is processed by flotation to produce a concentrate of 27 per cent copper that is subsequently shipped by truck to the port at Stewart for storage and shipment to Japan.

Tailings from the milling process is discharged into a tailings management facility; and supernatant water is discharged to the aquatic environment through a pipeline to a submersed outfall and diffuser located in Tahtsa Reach, part of a man-made hydropower reservoir developed in the 1950s. All water discharged falls within their provincial and federal permit limits.

With this comes noise, dust, and all of the other factors associated with mining but, as mentioned earlier, Huckleberry Mines Ltd. is aware of the situation and addresses them through its Environment and Community Affairs Program, which includes a Fish Habitat Compensation Program.

And, it’s because of its efforts in this area, that Huckleberry Mines Ltd recently received the 2014 B.C. Metal Mine Reclamation Award from the B.C. Technical Research Committee WWW.CANADIANMININGJOURNAL.COM

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FIRST NATIONS and MINING HUCKLEBERRY MINE

on Reclamation (BCTRCR), and the Mining Association of B.C. (MABC) in recognition for outstanding practices in its fish habitat restoration program; a program that actually increased the available fish habitat in the area of the mine; as well as its successful relationship building efforts with First Nations.

Even before the mine was built, the company recognized that its mine’s footprint could have an impact on the available fisheries habitat in the area. In particular, “Creek 4,” a known fish-bearing stream was expected to be impacted; and so a plan was made to conduct some habitat enhancements in the area.

Fisheries surveys conducted by Hatfield Consultants of North Vancouver identified nearby “Creek M” which at the time, was not a fish-bearing stream due to a naturally occurring barrier to fish –i.e. a steep gradient reach that stopped any fish from reaching a headwater pond.

Huckleberry Mine’s plan involved constructing a series of steps or weirs lined with geotextiles and anchored with rock fill. These works were constructed by a team from Cariboo Divers from designs prepared by Hatfield Consultants.

Subsequent fish surveys conducted between 2001 and 2011 showed initial success and that adult rainbow trout were present in the headwater pond and juveniles were present in the lower reaches.

However, subsequent surveys conducted between 2008 and 2011 indicated that the juvenile fish numbers decreased to record lows in 2011. The decline in fish numbers was attributed to failure of the weirs in the lower and middle fishways, causing juveniles to become stranded in isolated pools, and precluding adults from reaching the preferred spawning habitat between the lower and middle fishways.

When initial monitoring of the remediated area in 2013 and 2014 was conducted, Environmental Monitoring Assistants from the Yinka Dene Economic Limited Partnership and the Nootsenay Enterprises Ltd. were called to assist in the evaluation of the stability of the constructed works as well as presence of fish, and the structural integrity of the fishways have remained intact through high-flow periods, with no erosion or undermining of the weir structures.

Material for Huckleberry Mine’s step-building program being delivered to the site by helicopter.

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Cody Reid, Deputy Chief & Environmental Coordinator, Nee Tahi Buhn Indian Band said, “The design, construction monitoring and maintenance of the Creek M fishway has led to an overall net increase in fish habitat in the area surrounding the mine in Tahtsa Reach.”

And David Belford, Mineral and Natural Resources Liaison Officer, Wet’suwet’en added,” The HML Environmental team, and participating consultants, are to be commended on their proactive approach to reclaiming the fish habitat and to increasing that habitat within the mine foot.”

During the 2013 fish survey, 39 rainbow trout were captured, the largest number of fish observed since 2008. These observations were made even while construction of the middle reach fishways was ongoing.

Marke Wong says that Huckleberry’s plans are to continue monitoring to confirm the effectiveness of the restoration work, including hydraulic functioning, physical stability and structural integrity, fish distribution and net gain.

From the operation of a mine in the mountains, to the refurbishing of a fishway in a local waterway, Huckleberry Mines Ltd., continues to show its appreciation and respect for the environment and the First Nations communities it works with in British Columbia.

Perhaps the most important message for industry is that the example set by Huckleberry Mine and its First Nation community partners demonstrates that when parties begin to have meaningful dialogue, and understanding develops on both sides, then the path to cooperation and partnership is open.

In the case of Huckleberry Mine, this has led to the development of partnerships that have helped it expand its operations; and have help provide support during tough economic times.

The nomination of Huckleberry Mines Ltd. for the 2014 BC Metal Mine Reclamation Award came from its First Nation Partners because, as Chief Karen Ogen said, “Our partnership with Huckleberry Mines has made a big difference in our small community. Since the 2013 partnership agreement was signed, our people have benefitted from jobs, training and business opportunities. Our experience with Huckleberry has been very positive and we have greatly appreciated Huckleberry’s efforts to engage with our community and to work with our business arm, the Yinka Dene Economic Partnership. The Wet’suwet’en First Nation is very pleased to nominate Huckleberry Mines for this award.”

And lastly, Mike Robertson added, “ The Cheslatta Carrier Nation has been a successful Huckleberry Mines Limited contractor on a number of projects including a tailings dam. We have our members employed by Huckleberry Mines, and we maintain regular contact with its staff and management on all aspects of operations. We support the nomination because we are confident they will continue and enhance their innovative and progressive practices of returning the land to a near natural, self-sustaining state.” CMJ CANADIAN MINING JOURNAL

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ROAD to REWARDS FIRST NATIONS COMPANY PROVIDES VITAL ROADBUILDING SERVICES TO REMOTE COMMUNITIES Staff Report

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K

imesskanemenow is a Cree word that means, “This is our Road,” a fitting name for the winter road management company that is owned and operated by four northern First Nations; Attawapiskat, Fort Albany, Kashechewan, and Moose Cree.

Their company, Kimesskanemenow Corporation, (also known as K Corp) was founded in 2001, and for the past 15 years, has been responsible for building and maintaining the Western James Bay Winter Road (JBWR), which starts in Moosonee and travels 312km up the western coast of James Bay, connecting the communities of Fort Albany and Kashechewan, and eventually ending at the Attawapiskat First Nation.

The road is a lifeline to the remote areas in the James Bay Lowlands of Northern Ontario and without it, existing and future development of this part of the country would not be possible.

In fact, it’s thanks to the road that K Corp helped build that companies like De Beers Canada are in the north.

As most people know, De Beers Canada made international headlines when it built the Victor Mine in 2006, (the first diamond mine in Ontario at a cost of about $1 billion) approximately 90km west of the coastal community of Attawapiskat First Nation.

Since the open-pit mine began production in 2008, with an annual tonne processing capacity of about 2.7 million tonnes, and an annual carat production capacity of 600,000 carats, it has proven to be a key to Northern Ontario development and its communities.

With an estimated mine life to 2018, the Victor Mine’s energy and equipment needs will continue for at least two more years and, according to K Corp, cannot be met without the JBWR. Air transport is prohibitively expensive, so the winter road is considered by far the most affordable way to supply the remote mine with the necessary 450 loads of cargo, and 10 to 11 million litres of diesel fuel that it consumes each year.

But the Victor Mine is not the only site that requires a reliable supply of goods and services. Similar transportation challenges also face other remote northern First Nations communities that need to truck goods and fuel via seasonal winter roads.

With the exception of Moose Cree First Nation, which has a railway line to Cochrane, air travel is the only transportation available year-round for the three other First Nations, which for most community residents is prohibitively expensive.

Thanks again to the JBWR, it provides a critical socio-economic tie between the communities as well as a significant source of employment, and to keep relationship going, Kimesskanemenow Corporation and De Beers Canada have entered into a productive partnership.

In 2004, the two parties signed a Winter Road Agreement, which was re-negotiated in 2014. Under the agreement, De Beers pays the bulk of the costs of the road’s construction and maintenance costs, while the balance of the costs are provided by the Provincial and Federal governments.

Kimesskanemenow Corporation is guided by three central priorities: Building capacity in its communities, ensuring that its JANUARY 2016

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Thanks to the efforts of K Corp, the Western James Bay Winter Road provides access to the remote areas of Northern Ontario.

member communities receive maximum benefits, and maintenance of traditional culture, which naturally includes environmental protection.

The company also ensures that money from building and maintaining the road stays in the hands of local First Nation members.

To do this, the road is constructed and maintained entirely by local community members, either as direct employees or through local contractors. This has required developing capacity, which the company has done through training and education programs.

The practical effect of these guiding principals is that during the winter months, roughly 200 individuals work on the road, helping ensure that the road brings economic benefits to individuals, families, and communities.

For many, seasonal employment gained through constructing and maintaining the winter road is the only consistently available work in the community. Furthermore, dividends from the company go back to the hands of the communities to be used as they see fit.

Finally, Kimesskanemenow Corporation donates to community-based initiatives that will benefit the communities, with each of the four communities allotted an annual amount.

Reflecting the corporation’s central values, the money is used to fund initiatives that benefit youth, the environment, or maintain traditional ways of living.

One example of the programs that the corporation helps fund is CreeFest, a celebration of Cree culture that is held annually in the Mushkegowuk communities.

The company also funds the Edward W. Chilton scholarship at Northern College in honour of the late Ed Chilton, the company’s first president. The scholarship is awarded to community members to further their education.

K Corp’s list of smaller grants, available online, include many community and cultural programs that maintain the vitality of all these communities.

Kimesskanemenow Corporation maintains an important piece of infrastructure that benefits the communities and allows for the ongoing operation of the Victor Diamond Mine. As a cooperative venture, the corporation has proven itself to be invaluable to both the communities and the mining company. CMJ CANADIAN MINING JOURNAL

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Beverly Blanchard, (standing), of the Native Women’s Association of Canada, addresses delegates attending a forum in Ottawa entitled: Bridging the Gap: Aboriginal Women and Resource Development.

WHERE WE STAND SERIOUS QUESTIONS DESERVE SOME SERIOUS ANSWERS

I

t’s been just over a year since the Native Women’s Association of Canada (NWAC) received funding from Aboriginal Affairs and Northern Development Canada (AANDC) to identify and ask questions about the barriers indigenous women face, and secondly, to get direct and honest answers as to what are the realistic opportunities for them in the mining industry.

Basically, as the headline says, they want to know where they stand insofar as their positions within the mining industry are concerned.

The questions NWAC put on the table at a recent forum in Ottawa entitled, Bridging the Gap: Aboriginal Women and Resource Development, dealt with two perspectives; the first looked into resource development corporations and sought to understand what these corporations knew about aboriginal women, and the second was from aboriginal women and how they viewed the mining industry with regards to economic development and employment opportunities.

The forum was attended by an impressive gathering of female indigenous leaders and representatives from the resource development sector. A full list of the participants is featured in the adjacent box.

The intent of the engagement/discussion session was to initiate a constructive dialogue amongst the participants with the overall goal of: s increasing the labour market participation of indigenous women in the resource development sector; s ensuring indigenous women’s voices are heard in the development of these projects; s sharing of information on the industry; and 22 |

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Staff Report

s discussing the various opportunities and barriers facing indigenous women who wish to work in the industry.

A DISTINGUISHED PANEL OF WOMEN ATTEND OTTAWA FORUM Siobhan Dooley Hatch Engineering Grant Goddard New Gold Inc. (Rainy River Project) Karina Kesserwan Kesserwan (Law – Strategy – Solutions) Stacey Jack New Gold Inc. (Rainy River Project) Christopher Lefebvre Aramark Canada Mireille Pilotte New Millennium Iron Rachel Pineault Detour Gold Corporation Kate Rafter Employment and Social Development Canada Louise Reid-Schloen Hydro Ottawa Jamie Saulnier Running Deer Resources Nancy Veal Resolute Forest Products Marilyn Capreol Shawanaga First Nation Pamela Eyles BC Native Women’s Association Susan Forth Shawanaga First Nation Elize Hartley Ontario Native Women’s Association Marian Horne Yukon Aboriginal Women’s Council Noreen McAteer Alberta Aboriginal Women’s Society Verna Polson Quebec Native Women Inc. Tori-Lynn Wanotch Saskatchewan Aboriginal Women’s Circle Corp.

Beverly Blanchard Native Women’s Association of Canada Sydney Ducharme Native Women’s Association of Canada Claudette Dumont-Smith Native Women’s Association of Canada Dan Peters Native Women’s Association of Canada Merv McLeod McLeod-Wood Associates Inc. Nancy Wood McLeod-Wood Associates Inc.

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INDIGENOUS WOMEN and MINING

It was noted during the forum that one of the various initiatives that NWAC has been involved in is the Aboriginal Skills and Employment Strategy (ASETS), a project funded by Employment and Social Development Canada (ESDC), that focuses primarily on indigenous women and provides funds for education and training, job support, and targeted wage subsidies (TWS) to assist employers in hiring indigenous women.

An overview of indigenous women was given with the intent of pointing out that the term Indigenous covers First Nations, Metis and Inuit. Coupled with the terminology, there is also a significant lack of understanding about where indigenous women are located in Canada.

Although 52 per cent of the indigenous population in Canada is women, much of the attention focuses upon indigenous women who live on First Nations reserves. There is, however, a significant portion of the population who reside in urban centres.

In fact, 70 per cent of the indigenous population in Canada now live in urban centres.

With the interaction between the indigenous communities and resource development industries primarily focused on reserves, there may be a significant portion of the indigenous female population that is not being considered for employment

and/or economic opportunities.

For example, when impact benefit agreements (IBAs) are completed, they tend to be locally focused and may not consider indigenous women that do not reside in the community or indigenous individuals who are not members of the particular community.

From the indigenous women’s perspective at the forum, it was noted that indigenous women’s opinions on the resource development sector were varied and divergent. Like most things in life, there were some women who are in favour of the mining industry, and there are some who are against it.

Many who are against the sector perceived it to be counter to the traditional role of indigenous women as water-keepers and caretakers of Mother Earth, but on the other hand, research found that there was also a significant percentage of indigenous women who were ambivalent towards the industry.

Due to length and detail of the forum (from which this article is based) the information has been drastically reduced to fit the space.

For complete details and a copy of the full Bridging the Gap: Aboriginal Women and Resource Development Report, please contact Beverly Blanchard, Strategic Policy, Partnership and Planning, NWAC, Ottawa. bblanchard@nwac.ca CMJ

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MINING AND INDIGENOUS PEOPLES. CANADA’S FUTURE

Photo: Tracey Sanders Photography

By Pierre Gratton

Delegates attending the 23rd Annual Conference of the Canadian Aboriginal Minerals Association in Vancouver listen to talks during the three-day event.

A

s probably many of you know, times are tough right now. Commodity prices are slumping across the board, affected by an overall slowing global economy that is being felt throughout Canada.

But, even during a stubborn downturn in global demand for many minerals and metals, it’s no time to get down on mining because mining never goes away.

Minerals and metals are the very foundation of virtually all of the goods we depend on in our daily lives. The world will continue to need mining, and Canada can, and should continue to be an important place where mining happens.

A Look at Market Conditions So, first, how bad is the market?

Global economic growth has been volatile in recent years.

Every time the Bank of Canada, the IMF, World Bank or others make growth projections, it seems they amend them a few months later and always downwards. With few exceptions, the global economy is not doing well at all.

The key economy for the mining sector is China, which today consumes almost 50 per cent of the world’s minerals and metals. And China’s growth rate has been slowing, along with growth rates in other emerging markets, like Brazil, Mexico and several Asian and African countries, that are also falling.

The one major exception is India, whose growth is around 7.5 per cent and, with its 1.3 billion people, is seen as the next China in terms of minerals and metals consumption as the country begins to rapidly industrialize.

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A Bedrock of the Canadian Economy Even in a slump, mining’s contribution to Canada is enormous.

Despite some job losses at some operations, mining and mineral processing are directly employing more than 375,000 Canadians, including well over 10,000 Indigenous Canadians, paying the highest average industrial wage in the country.

Mining remains proportionally the largest employer of indigenous Canadians.

Mining accounts for roughly 20 per cent of the overall value of Canadian exports, valued at nearly $90 billion.

Nationally, we pay an average of $3.8 billion annually in corporate taxes and royalties to federal, provincial and territorial governments.

Mining companies are also paying significant royalties to indigenous communities across the country, indirectly through government resource revenue sharing and, in some cases, directly.

We’re also supporting the second largest mining-supply sector in the world. More than 3,700 companies provide a wide spectrum of services to the Canadian mining industry, with an increasing number of these being indigenous-owned businesses.

A major challenge facing mining in Canada’s north today is its lack of infrastructure. The north is our industry’s future, but the territories and the northern parts of our provinces lack critical infrastructure—roads, electricity, ports, railways—to service mines and get products to market.

This lack of infrastructure is felt by communities, many of them indigenous, located in the north.

According to the Mining Association of Canada’s (MAC) WWW.CANADIANMININGJOURNAL.COM

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Today, there are more than 250 agreements between mining companies and indigenous communities across the country. It is decidedly rare that projects proceed without impact benefit or other such agreements concluded.

These agreements, which have matured with time and experience, provide significant local benefits and assurances, including: *Commitments on business procurement and, often, assistance in setting up or enabling aboriginal-owned companies to take advantage of the business opportunities mines provide. *Agreements with respect to the incorporation of traditional knowledge in mine planning and environmental monitoring and oversight. *Support for skills training and mentoring. *Direct economic or financial benefits.

Some of these agreements are transforming communities in very significant ways.

Newgold’s New Afton project in Kamloops is one such example. The diamond mines in the NWT are others, as is Voisey’s Bay. We are seeing high levels of indigenous participation, as high as 60 per cent in the case of Voisey’s Bay, increasing levels of post-secondary education, and significantly improved economic and social outcomes.

Nonetheless, it is undeniable that the negotiation of these agreements takes time. Trust must be built between the parties, and indigenous communities rightly want to understand the nature of the physical and environmental impacts of the proposed mine prior to it proceeding.

Mining Association of Canada President and CEO Pierre Gratton addresses delegates in Vancouver at the 23rd Annual Conference of the Canadian Aboriginal Minerals Association.

Photo by Tracey Sanders Photography.

Photo: Tracey Sanders Photography

research, it costs about 2 to 2.5 times as much to build and operate a gold and base metal mine in northern Canada, off grid, than in the south.

We should be looking at ways to level the playing field in the north where infrastructure is lacking. Canada needs a strategic collaboration involving industry and governments, federal, provincial, territorial and Indigenous, to get this nation-building infrastructure in place.

This can be done by increasing government investment in new infrastructure, or by using the tax system to offset some of the costs incurred by companies for infrastructure components that also provide a broader public good.

Additionally, there is the issue of indigenous rights and title and how this affects the project certainty.

Much is made of how the constitutionally protected rights of indigenous peoples to be consulted and, if necessary, accommodated for activities on traditional indigenous territories affects project timelines and certainty.

Connected to this is the concept of social license, which in general terms defines the support earned by proponents to proceed with and operate their project.

The big question that gets raised these days is whether indigenous communities have a right to veto developments projects?

That is a very complex issue.

The Supreme Court of Canada, in its recent decision on the Tsilhqot’in First Nation’s claim, recognized indigenous title, a first in Canadian law.

It also provided clear guidance on the criteria needed to demonstrate title, and on the rights and obligations that flow from that, in the process also identifying where title was found not to exist.

It is a significant decision that provides us all with much more clarity going forward.

But back to the question of the veto.

The Court clearly recognizes that, in some circumstances, the right to title can be limited by the Crown. So, there is no absolute veto under Canadian law, even in the case where title has been proven.

But, for the Crown to place limits on indigenous title, it has to demonstrate both a compelling public interest for the project as well as ensure that future indigenous generations will not be deprived from the benefit of the land were the project to go ahead – a very significant test.

At its core, the decision continues a balancing act between empowering, and limiting the authority of both indigenous peoples and governments. The Court was very wise.

So what does this mean for proponents?

There is the law, and then there is reality. No proponent wants, or should want to build a project that is unwelcome or opposed by local communities. This is, quite frankly, an unsustainable option and one best avoided. And, most communities are open to the opportunities mining brings, and increasingly so.

Let’s look at reality in a different way.

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Aerial view of Capstone’s massive Minto Mine in Yukon.

Because the mine is situated on land owned by the Selkirk First Nation, 100 per cent of the royalties accrue to the First Nations development corporation and the Selkirk First Nations citizens.

Building and maintaining trust is ongoing; engagement has to be systematic and continuous, embedded in corporate practices and culture. We have to be open about what we do and involve indigenous peoples in parts of our business that matter to them, and offer training that supports such involvement.

Aboriginal communities should also invest in acquiring knowledge of the mining business. Many now have; those that don’t, can reach out and learn from others.

Second, communities should set out their expectations clearly, so that proponents may understand them. Such expectations can be with respect to how consultation is to be conducted, the social and environmental values that must be respected, and expectations for participation in benefits.

Investing in new business endeavours to service and supply the mine and other activities in the region, is also wise.

In October, a new federal government was elected promising reconciliation with indigenous peoples.

I say, “about time.”

It’s about time the federal government settled the many unresolved land claims across this country. Land claims, when they have been settled, create healthier conditions that make doing business easier, make partnerships easier to form and make them more enduring.

The new government has promised to accelerate the modern treaty process, to which I say again, “about time.”

It’s about time all governments recognized that royalty revenues should be shared with indigenous communities.

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opment and will send a profound recognition of who has inhabited the land for millennia, and who will be there when the mines, and the mining companies are gone.

It’s about time governments took a consistent, coordinated approach to its consultation and accommodation obligations.

Government employees should also receive training in consultation.

It’s about time governments invested as they should in education and training for indigenous peoples so that they may fully participate in the economy and bring hope and opportunity for their children.

The new government has promised significant increases in education funding and said they will increase funding for indigenous skills training by $50 million per year. This is good news.

While the mining sector and indigenous peoples in Canada have made great progress together over the past few decades, it is neither right, nor prudent, for governments to sit back and only engage when environmental assessments or permitting obligations compel them to.

Canada’s mining sector, while going through difficult times at present, remains strong and has a bright future, but it is not a future to be taken for granted. CMJ PIERRE GRATTON is President and CEO of the Mining Association of Canada. This article is based on portions of a speech Mr. Gratton gave at the recent Canadian Aboriginal Minerals Association’s 23rd Annual Conference in Vancouver. For a full copy of Mr. Gratton’s speech, pleased contact MAC. WWW.CANADIANMININGJOURNAL.COM

2016-01-12 10:54 AM

COASTAL ROUNDUP

A Message from the AME/BC David McLelland

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Gavin C. Dirom

By David McLelland, Chair of the Board of Directors, AME BC and Gavin C. Dirom, President & Chief Executive Officer, AME BC

he year 2015 was a critical time for the Association for Mineral Exploration British Columbia (AME BC) to champion the investment, exploration and mineral development potential of BC. AME BC believes that it is possible to have both a strong mineral exploration and development industry, and a sustainable, healthy environment.

Globally, the mineral exploration and development industry has been experiencing a significant downturn, and BC, and the rest of Canada are not immune to this reality. Despite the challenges this presents, the industry (much of it based in BC), continues to make enormous contributions to the social and economic well-being of British Columbians and fellow Canadians.

Generally, BC has attracted a gradually larger share of Canadian mineral exploration investment over the past few years, and has held its own on a global scale. However, provincial and federal government policies and First Nation perspectives regarding natural resource development, and access to mineral lands, need to be better aligned to help ensure that BC continues to attract investment in mineral exploration and development.

Sustained investment in exploration is the only path to successfully discovering and developing new mineable deposits that are so vital to our quality of life in BC, and Canada, as a whole.

The mineral exploration and development industry is central to BC’s export-driven economy, spurring positive regional socio-economic activity, providing thousands of family sustaining jobs, producing the commodities that we need, use and consume every day and contributing hundreds of millions of dollars every year to support education and health care.

Such contributions should not be taken for granted. Despite the current downturn, policy-makers must take concrete steps now to position the industry for future success.

The first major event of 2015 for AME BC was our annual Mineral Exploration Roundup conference, and the Association was able to claim credit for Premier Christy Clark’s announcement to exempt exploration activities from permit fees, and the announcement of $6.3 million in increased funding for the province’s Mines and Minerals Division to support permitting and inspections.

The provincial mining flow-through share program was also extended through the end of 2015.

On a national scale, there was a commitment by the federal government in March to extend the eligibility of Canadian exploration expenses to include environmental studies and community consultation expenses; however, a timeline for the implementation of this measure is still uncertain as of December 2015.

As per AME BC’s Strategic Plan, aboriginal relations and

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engagement continues to be a top priority area for our membership. AME BC hosted the third annual Gathering Place at the Mineral Exploration Roundup 2015 conference, and the Aboriginal Engagement Guidebook released in January 2014 was updated and reprinted in May 2015 by popular demand.

AME BC continues its work to strengthen relationships with aboriginal communities, leaders, and organizations. Specifically, AME BC has taken the lead and engaged in very positive and mutually respectful discussions with representatives from the BC First Nations Energy and Mining Council (BC FNEMC).

In fact, AME BC signed a memorandum of understanding with the BC FNEMC in July 2015. AME BC also maintains strong business relationships with the Industry Council for Aboriginal Business.

In September, AME BC signed a memorandum of understanding with the Association of Professional Engineers and Geoscientists of BC (APEGBC), formally building ties between two century-old organizations with a commitment to increase the prestige and esteem of professional geoscience and engineering in the province.

AME BC also continued to sponsor the work of regional exploration groups throughout the province in building awareness of mineral exploration among the public. For the first time, it also sponsored prospector training in the First Nation community of Tsay Keh Dene to a very enthusiastic and receptive audience.

In November, following engagement with officials from both the State of Alaska and Government of BC, AME BC supported a memorandum of understanding signed between the two jurisdictions to enhance communication and access to information between jurisdictions without the need for federal intervention or an International Joint Commission.

In light of these successes, however, AME BC members faced continual challenges, both real and perceived, in accessing the land base to conduct mineral exploration and development.

Evolving land access and use decisions and restrictions along the central and north coast, and in the Northwest, south Chilcotin, areas southeast of Prince George, and the south Okanagan were a focus of committee and staff efforts through the year.

Although AME BC has had successes in communicating the value of minerals as a hidden resource with government officials and communities, the provincial government lacks a coordinated approach to planning, communicating and implementing decisions affecting the mineral land base.

In 2016, AME BC will continue championing the need for access to the land with the provincial government to provide certainty for its members. CMJ CANADIAN MINING JOURNAL

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Vale’s nickel processing plant.

TIMING is EVERYTHING R&D PROVIDES MINING INDUSTRY WITH A MUCH-NEEDED BOOST

By Phil Saunders

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ewfoundland and Labrador is one of the foremost producers of iron and nickel in Canada, ranking second in production of both metals among Canadian jurisdictions in 2014. It also produces, or has significant resources of a wide range of other commodities; including copper, zinc, gold, uranium, rare earths, granophile metals, industrial minerals and others.

With such world-class resources, diverse geology, and considerable exploration upside, it clearly represents an excellent mineral investment destination in a stable, development-friendly jurisdiction.

Here’s a look at some of the projects that support that statement.

Mining and Processing Developments During the first half of 2015, Vale Newfoundland and Labrador Limited (VNL) produced 29,000 tonnes of nickel, 13,400 tonnes of copper, and 495 tonnes of cobalt from its Voisey’s Bay Mine in Labrador. In August, the provincial government announced that underground mining at Voisey’s Bay had been sanctioned by VNL’s parent company, Vale.

Construction is projected to start in 2016 with ore production beginning in 2020.

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In July of 2014, VNL achieved a major milestone at its Long Harbour hydromet processing plant with the production of its first nickel. The facility is currently processing a combination of imported, low-impurity nickel matte and concentrate from Voisey’s Bay, while construction work continues elsewhere onsite.

The plant will process only Voisey’s Bay high-grade concentrate.

The Iron Ore Company of Canada (IOC) has been producing iron ore at the Carol Lake project in western Labrador since the 1960s. Total shipments (pellets + concentrate) for 2015 are expected to be about 17 million tonnes. The new Wabush 3 iron-ore deposit has cleared environmental assessment; however development has been delayed due to the weak outlook for iron ore markets.

Rambler Metals & Mining plc operates the Ming copper - gold mine near Baie Verte in northeast Newfoundland. The company produced a positive prefeasibility study relating to integration of the Lower Footwall Zone mineral resource into the life-of-mine plan for the operation. The plan would extend the projected mine life to 21 years, while optimizing the mining and milling processes. Year-end (July 31) results for fiscal 2015 show production of 4,733 tonnes of copper metal, 5,335 ounces of gold, and 39,706 ounces of silver from 17,309 dry tonnes of concentrate.

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Rambler also announced a definitive agreement with Thundermin Resources Inc. whereby Thundermin will amalgamate with a wholly-owned subsidiary of Rambler. This enables Rambler to add the Little Deer and Whalesback copper resources to its portfolio.

Anaconda Mining Inc. announced new resource calculations for its Pine Cove gold mine and Stog’er Tight gold deposit near Baie Verte. The latest figures indicate total gold resources in all categories of about 129,000 ounces at Pine Cove, and about 50,000 ounces at Stog’er Tight.

The company sold 15,821 ounces of gold in fiscal 2015 (to May 31).

Tata Steel Minerals Canada Limited (TSMC), a joint venture between Tata Steel of India and New Millennium Iron Corp., operates a high-grade iron-ore mine in the Menihek area of northwestern Labrador. TSMC shipped its first load of iron in September 2013; shipments in 2015 (to September 15) were 1.4 million tonnes.

Annual capacity from 2016 onward is expected to be 6 million tonnes.

Teck Resources Limited’s Duck Pond Operations officially closed on June 30th. The mine started producing copper and zinc concentrates in 2007 and exhausted the mineral reserves over an eight-year mine life, as originally planned. Rehabilitation of the mine site has started and will be completed by 2018 followed by a period of monitoring.

Continuing economic uncertainty and depressed metal markets have affected other mining operations in the province. Both the Beaver Brook Antimony Mine, and Labrador Iron Mines operations have been placed on care and maintenance, and Cliffs Natural Resources’ Scully iron mine has officially closed.

Exploration Highlights Marathon Gold Corp. is exploring for gold on its extensive holdings in central Newfoundland. The company completed initial open-pit and underground resource estimates for the Marathon and Sprite deposits, and an updated open-pit and underground resource estimate for the Victory Deposit. With these new esti-

Anaconda’s Pine Cove Mine.

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Voisey Bay open pit mine

mates, the total measured and indicated gold resource for the Valentine gold camp is about 1,060,100 ounces at a grade of 2.20 g/t, with an additional inferred resource of 200,000 ounces at a grade of 2.83 g/t.

Marathon continued its prospecting, trenching and drilling activities in 2015, focused on the Marathon, Sprite and Victory areas, and succeeded in expanding known zones of mineralization in all areas.

Benton Resources Inc. received encouraging results from a trenching program on its Cape Ray Project in southwest Newfoundland, a joint venture with Nordmin Engineering. The new data will be incorporated into the NI 43-101 compliant resource base in preparation for an upcoming Preliminary Economic Assessment to be completed by Nordmin. Along the trend to the northeast, Benton conducted an initial drill program on its Staghorn Property, recently optioned from Metals Creek Resources Corp. The program was designed to test several gold showings, geochemical and geophysical anomalies.

In Newfoundland’s central volcanic belt, Canadian Zinc Corp. reported additional high-grade intercepts from drilling on its Lemarchant Zn-Pb-Cu-Au-Ag deposit, a part of the Tally Pond Project. In the historic, very high-grade Buchans Mining Camp, Minco plc intersected narrow intervals of high-grade base metals (Zn-Pb-Cu-Au-Ag) in the “Ore Clast Zone”, which occurs at depth beneath the previous workings. Further work is planned on both projects.

On the Baie Verte Peninsula in northeast Newfoundland, Anaconda initiated a new exploration program designed to help extend the mine life of its Point Rousse Project to over 10 years, at the current production rate. Anaconda plans to conduct additional drilling at Pine Cove and trenching at Stog’er Tight, as well as continuing ongoing exploration at other deposits and prospects within trucking distance of the Pine Cove mill.

Puddle Pond Resources Inc. recently completed another round of drilling on its Heritage Project in southern Newfoundland. The objective was to further explore a large (4.5 by 1.5 km) zone of epithermal-style alteration that locally hosts bonanza grades of gold and silver.

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Innovation, Research and Development A positive new development in the province’s mining sector in recent years is the injection of significant R&D funding into the sector from both provincial and federal governments. This is in addition to direct funding provided to companies and prospectors under the province’s Mineral Incentive Program.

Substantial investments have been made in a variety of R&D projects and

initiatives ranging from innovative exploration methods to advanced mineral processing technology. Some recent examples of government investment in major projects include: s Canadian Zinc Corporation and Buchans Minerals Corporation have agreed to jointly undertake a research program, partially funded by Research & Development Corporation of Newfoundland and Labrador (RDC), on their respective Cu-Pb-

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Zn-Ag-Au deposits in central Newfoundland.

The objective of the research is to determine the technical and economic viability of developing the companies’ key deposits into producing operations by utilizing a central milling facility. All of the deposits are within trucking distance of the recently closed Duck Pond Cu-Zn Mine. RDC will contribute $535,000 to the project. s Search Minerals Inc. has announced it will receive research and development funding totaling $1,250,000 from RDC and from the Atlantic Canada Opportunities Agency. The funding is to assist in the construction and operation of a pilot plant for the testing of Search’s metallurgical process, which is designed for large-scale production of a mixed rare-earth oxide suitable for further separation by a refinery. Initial feed for the test will be a 7 tonne sample extracted from the high-grade core of the Foxtrot rareearth element deposit, located on the southeast coast of Labrador. s Rambler Mining & Metals plc has also partnered with RDC in recent years on a project, investigating the potential for pre‐concentrating mineralized material from the Lower Footwall Zone of the company’s Ming Mine through dense media separation. This could significantly reduce material handling requirements and potentially enable the use of Rambler’s Nugget Pond mill in lieu of building a new stand‐ alone copper concentrator. RDC has invested $1,000,000 in the project.

RDC has also invested in a number of earlier stage exploration projects in Newfoundland and Labrador with industry partners, and has funded university-based research in mineralizing processes and exploration techniques through the Department of Earth Sciences at Memorial University in St. John’s.

Mining Industry NL and RDC will host a Mining Innovation Symposium on February 11, 2016 at the Holiday Inn, St. John’s. This one-day event will focus on the increasingly important role that research, development and innovation play in growing the mineral industry in Newfoundland and Labrador. CMJ

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PHIL SAUNDERS, P. GEO., is Mineral Exploration Consultant, Department of Natural Resources, Government of Newfoundland and Labrador, St. John’s.

WWW.CANADIANMININGJOURNAL.COM

2016-01-12 10:55 AM

FIRST NATIONS and MINING

GRADS ARE SET TO GO MINING STUDENTS ARE READY FOR WORK

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orthern College, located in Wahgoshig, Ont, in partnership with Wahgoshig First Nation, and Primero Mining Corp., recently held a celebration in Wahgoshig First Nation for the first of two groups of indigenous students to graduate from the Haileybury School of Mines Underground Hard Rock Miner Common Core program.

The program, with room for six students in each group, includes 12 weeks of training delivered by Northern College at Primero’s Black Fox Mine site, located just outside of Matheson, Ont. The modular training program covered areas of competency as listed in the MTCU Modular Training Standards Certification Program.

Participants also received an additional 10 days of soft skills and safety training to increase their marketability after the program. The graduates now have the basic knowledge and skills to become miners, working effectively and safely in the mining industry. The program is tuition free, thanks to funding provided by Ontario’s Aboriginal Economic Development Fund.

Daily transportation to and from the training site, as well as additional student support, was provided by Wahgoshig First Nation.

David Zimmer, Ontario’s Minister of Aboriginal Affairs, says, “When Aboriginal people prosper, all of Ontario prospers. That’s why we’re working to deliver results for Aboriginal communities through our Aboriginal Economic Development Fund. It’s going to take partnerships like the Wahgoshig Primero Northern College Training Initiative to the next level, JANUARY 2016

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creating jobs, training and business opportunities for Aboriginal communities.”

“We’re very excited to be working with Primero and Northern College to provide these opportunities for members of our community to take advantage of the significant industrial developments occurring in our area,” says Chief Dave Babin of Wahgoshig First Nation.

Graham Reid, Health, Safety & Environment, & Security Manager at Primero Mining Corp says, “This is an excellent example of how partnerships between First Nations, industry and training providers will lead to prosperity for our region.”

“We’re proud of the relationship we have established with Wahgoshig First Nation, and are happy to be expanding that relationship to include training opportunities.”

“By working together to develop a stronger workforce, we’re creating an environment where everyone involved will enjoy the benefits of our collective success.”

Samantha James, one of the graduates from the program says, “With my classmates and instructor, we’ve been able to produce ore tonnage from our own heading and we’ve installed ground support using a stoper, mucked out using a two-yard scoop, drilled on the face using a jackleg, and tied in and loaded our own blasts. With this training, our opportunities for employment are vast.”

“This program will help provide these graduates with the competitive advantage when applying for mine positions.” says Christine Heavens, Executive Director, Community, Business Development and Employment Services at Northern College CMJ CANADIAN MINING JOURNAL

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2016-01-12 10:56 AM

CSR MINING IN MY& MINE(D)

Tailings disaster highlights Risk Management role of CSR norms

By Michael Torrance

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here is a clear convergence of Corporate Social Responsibility (“CSR”) expectations and legal risk for Canadian miners operating abroad. A recent example of this can be found in the recent tailings dam breach at an iron-ore mine run by Samarco Mineração, in the Brazilian state of Minas Gerais. This incident highlights the risks, and risk mitigation opportunities, offered by good CSR practices.

The tailings dam breach resulted in numerous lost lives and homes in communities closely adjacent to the mine. The reputational impacts were immediately felt, with the parent companies quickly implementing a strong public relations campaign to address the disaster head on, albeit after some false starts. In terms of legal risk, an initial fine was levied by the Brazilian government of $66 million. Brazil’s environment Minister has stated that over $7 billion in damages will be sought against the company.

The local legal risk and reputational impacts are joined by risks for parent companies in their home jurisdictions. Recent cases in Canada and the United States suggest that claims could be raised not only in Brazil, but also in the home jurisdictions of parent companies. Across Canada, litigation has been brought in the last number of years seeking damages against Canadian parent companies for alleged harmful acts of their subsidiaries abroad.

The viability of these types of cases in Canada is yet to be determined. Nevertheless, they point to real legal risks which intersect with CSR practices of Canadian companies working abroad. In particular, a common theme across all of these cases has been that CSR standards have been used by Plaintiffs to set the standard of acceptable conduct of companies operating abroad. In other words, regardless of local legal requirements, Plaintiffs argue that the companies being sued should have followed CSR standards and that failure to do so amounts to a tort for which damages can be sought. CSR standards most often include those standards endorsed in the Government of Canada’s CSR Strategy for the Extractive Sector (“CSR Strategy”), in particular the IFC Performance Standards and Guiding Principles on Business and Human Rights.

Environment Health and Safety (EHS) is an area of CSR that many Canadian do quite well. But when faced with highly variant legal expectations in different global jurisdictions, it may be unclear what the appropriate standard is for EHS management.

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al risks, it would make sense for Canadian companies to ensure that whatever standards are being applied, that they meet or exceed the CSR standards endorsed in the Government of Canada’s CSR Strategy.

There are technical considerations that should be navigated with specialist experts in tailings management. There were various models to consider with special reference to the type of operation. Waste can be disposed of in open pits, as backfill in underground mines or disposed offshore and co-disposed with other waste streams. Quality control and oversight should be used post-design, especially during a mine’s construction and building phases. This includes inspections, maintenance and monitoring during construction and operations.

These and other aspects of the management of tailings are addressed in detail in the CSR standards endorsed by the Government of Canada. For example, the World Bank EHS Guidelines for the mining sector, which forms part of the IFC Performance Standards, necessitates regular inspections of tailings dams with response strategies where potential weaknesses are identified. As such, utilizing these standards as a baseline can be a good way to initiate and guide discussions around proper risk management, above and beyond local legal requirements.

In addition, CSR standards like the IFC Performance Standards can, if implemented, guide other related considerations that could affect overall project risk. For example, the IFC Performance Standards set clear requirements for community health safety and security, including development of emergency response plans and contingency planning for any communities that could be affected by a disaster, even one with a remote likelihood. The IFC Performance Standards also provide guidance on voluntary or involuntary resettlement of communities where necessary in light of mining activity. Whether through consultation and/or compensation, it may be necessary to implement strategies for resettlement for affected communities in some situations. Doing so could avoid health and safety risks affecting communities adjoining a mining operation and manage the human rights and other risks associated with resettlement.

As an added side benefit, these same standards will be applied by many financing banks in evaluating whether to invest in a project. So, in addition to managing legal and reputational risks, it can make good business sense. CMJ MICHAEL TORRANCE is a lawyer in Northern Rose Fulbright’s Toronto office.

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UNEARTHING TRENDS

First Nations women: an untapped resource

By Bruce Sprague

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e are staring down the barrel of a skilled labour shortage that could leave as many as 100, 000 Canadian mining jobs empty in the coming decade. It’s too late to sit back and hope someone else solves the problem. Mining companies need to find new talent and create inclusive working environments that people want to be in if they’re going to leverage the best talent– including those that are traditionally overlooked.

Two of those key talent pools that are worth building a strategy around: women and First Nations communities close to remote mine sites. Combine the two of them and it’s like finding gold when commodity prices are high!

Before you find solutions, you have to face the problems.

Why are women so under-represented in our sector? Because it’s an alpha male style culture; Uniforms, boots and mine sites themselves aren’t designed for women. There are no bathrooms underground. At first glance those things seem petty and inconsequential, but it sends strong message about who is welcome.

Companies need to attract a new type of worker by creating a place the target demographic wants to be. Start considering a culture change.

Engaging First Nations women deserves separate consideration because of the long, tumultuous relationship between aboriginal communities and industry. “Historically, First Nations people were economically excluded because of the Indian Act structure under the federal government,” says Kim Baird, Former Chief of the Tsawwassen First Nation and EY Consultant.

“Because of the Supreme Court’s recognition of aboriginal title, that’s changing. Proposed developments must now consider how a project might impact and benefit First Nations communities.”

Baird says an Aboriginal strategy for women needs to do four things: s Make it clear women are welcome s Capitalize on existing role models already in the industry by having a marketing campaign that shows First Nations women in the pictures, and tells their stories s Start recruiting at a young age s Show the positive impact women can have by contributing a meaningful income to their families 34 |

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So how do you change the culture?

This innovation can’t come from the HR department. A true culture shift has to start with and have the efforts of senior management. That’s because it also has to tie into the rest of the organization’s values and goals. There’s no doubt that strategy includes engaging local communities and First Nations, bringing the change full circle.

One utility company has a case study that others should use as a template. Wanting to capitalize on local talent, they prioritized engaging a First Nations community. Outreach efforts included going into schools and telling teens about potential careers. The students were also told what classes they would need in order to be ready for those opportunities. The outreach didn’t end there. The company did extensive follow-up and internships and, over the course of several years, managed to groom a new generation of linesmen. This strategy is still used today.

How do you maintain that shift over the longer term?

Once new employees are on board, you’re over the first hurdle.

The next one is to keep them there. As with any employee, women need to see a career path and have sponsors and mentors guiding them. By understanding and adapting to changing life stages, companies can start to build a workplace that women can see themselves long term.

The benefits of engaging more women in the mining industry go well beyond helping fill a labour shortage. Studies show women promote a more collaborative style of management and can be pivotal in gaining community and stakeholder trust.

Industry and networking groups need to see the benefits of a diverse and inclusive culture, and foster an environment that embraces it.

If need be, choose a location or region to start a program.

There will be critics who resist change. There will be questions about the increased costs of these new ideas. In the long run though, it’s more expensive to do nothing. CMJ Bruce Sprague, is a Partner and EY’s Canadian Mining & Metals Leader.

He is based in Vancouver.

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