CHALLENGES AND RISKS FACING INDIGENOUS

1 Introduction

The Prospectors and Developers Association of Canada (PDAC) has prepared this report with the objective of fostering a deeper understanding among Indigenous communities and the general public of the exploration phase of the mineral development sequence. This phase is not well understood outside of the industry. The study also aims to help Indigenous communities prepare to take advantage of the economic opportunities that can arise from mineral exploration projects. Another important goal of the study is to educate exploration companies and other stakeholders about steps they can take to help ensure that Indigenous communities and Indigenous businesses can participate fruitfully in exploration projects. The study relies on an array of published studies as well as outreach to Indigenous communities and representatives of the exploration and mining industry, including businesses involved in the service and supply of exploration projects. The methodology is discussed in Section 2.

THE MINERAL EXPLORATION SEQUENCE – ACTIVITIES, TIMELINES, AND SPENDING

Section 3 identifies the principal activities that exploration companies and their suppliers and contractors undertake to search for, discover, and evaluate a mineral deposit. Compared to the capital and labour-intensive activities required to build and operate a mine, these activities are quite limited and account for only a small portion of the annual spending undertaken by the mineral development sector as a whole. Companies can help Indigenous communities prepare to take advantage of the relatively limited opportunities in exploration by engaging with communities early and regularly in order to help them understand the nature and timelines associated with mineral exploration.

ECONOMIC OPPORTUNITIES

Section 4 identifies key economic opportunities that Indigenous communities can pursue across the exploration sequence, and, based on an online survey and interviews conducted for this study, identifies the services that Indigenous-owned businesses are currently providing to advance exploration projects. Research shows, that, across the country, Indigenous-owned businesses, whether privately or community-owned, currently provide sophisticated region and nation-wide supply chain functions to support the sector, including logistics and expediting, sea-lift, aircraft and helicopter transportation services. In some cases, they also provide core exploration services to the sector through community-owned exploration companies. The amount of prior community experience with exploration and mining companies and the level of mineral development activity within a traditional territory is a crucial factor in a community-owned business' ability to participate in projects. Communities lacking that experience may find that they are only able to participate in limited ways.