Revenue sharing models are under discussion for the Ring of Fire and NAN territory.
“There are various revenue sharing models that are being examined, in fact as we talk there are discussions taking place between Ontario and First Nation organizations and individual First Nations on revenue resource sharing models,” said Nishnawbe Aski Nation Deputy Grand Chief Les Louttit during his keynote address at the 2nd Annual Ontario Mining Forum, held June 19 at the Valhalla Inn in Thunder Bay.
Louttit cited profit sharing and giving First Nations a stake in ownership of the mining companies as examples of what First Nations might be looking for.
“In the very near future we will be making a proposal to the government to consider, particularly in terms of the Ring of Fire,” Louttit said. “Those options may include equity interests in mining companies — that’s been done before. But what has not been successfully done to a large degree is profit sharing.”
Rick Bartolucci, minister of Northern Development and Mines, told the same forum that Ontario is committed to discussing resource revenue sharing with First Nation communities.
The minister noted that resource revenue sharing and social, economic and community supports were among the key issues addressed in the June 12 signing of a Memorandum of Cooperation between Ontario and Webequie. He said the government is continuing to discuss those issues with Marten Falls, and that Ontario wants to have similar discussions with Neskantaga and other First Nations.
Louttit said all the communities within NAN should receive benefits from any projects within NAN territory, not just the communities directly impacted.
“How we do that is going to be a major challenge, but it is imminent and it has to happen,” Louttit said. “We don’t want to see continued poverty among some First Nations while others reap the benefits. There is nothing wrong with reaping the benefits of development, but the principle of sharing has to take place.”
Louttit said the principle of sharing lands and resources is a key element that led to the signing of Treaty 9 and Treaty 5.
The deputy grand chief said community infrastructure needs have to be identified by individual communities and then included in any agreements between First Nations and resource companies.
Louttit brought up the example of Attawapiskat, which declared a state of emergency last winter due to inadequate accommodations for community members as families, Elders and babies were living in tents with no water, no sewage and no electricity.
“As you all know in the past year there has been a lot of publicity on how this community still suffers from a lack of infrastructure, a lack of housing even though a few hundred kilometres to the west is a wealth of diamonds on their traditional territory,” Louttit said, noting the De Beers Canada Victor Mine.
Louttit also brought up possible environmental impacts from mineral resource development.
“There will be significant environmental and ecological impacts from the chromite mine itself,” Louttit said about the proposed Cliffs mine in the Ring of Fire area. “We are going to need, as First Nations, an environmental regime that provides the highest levels of mitigation and prevention of major catastrophes.”
Louttit pointed out that requests by the Matawa communities for a Joint Review Panel environmental assessment review process of the two proposed mines has not happened.
“In fact, the (federal) government is trying to fast-track legislation to limit the time in which environmental assessments and processes will be dealt with,” Louttit said.
In Bartolucci’s view, First Nation and Metis communities are poised to reap benefits from development of the Ring of Fire.
He cited 1,200 direct jobs that could be created by the Cliffs project, as well as construction of a transportation corridor employing 300 people per year.
In the long term Bartolucci said 5,000 direct and indirect jobs across Ontario could come from the Cliffs chromite project.
Bartolucci said the provincial government is also looking to develop a tripartite model of engagement involving First Nations, the province of Ontario and the federal government, noting that Premier Dalton McGuinty and Prime Minister Stephen Harper met to discuss the Ring of Fire issue last month.
“We proposed discussions with the federal government, which could include but are not limited to social, economic and community development, regional infrastructure support including transmission, local road access and broadband needs,” Bartolucci said.