Grassroots effort threatens Canadian mining
Until this year Canada has, since 2006-07, claimed the top jurisdiction in the Annual Fraser Survey of Mining, largely for its reputation for low-risk resource development. Finland claimed the top spot this year (ME, March 5, 2013) and things could get worse.
An aboriginal protest movement called Idle No More that’s often compared with Occupy Wall Street swept across Canada with the help social media. Protesters blocked roads and rail lines, and staged big rallies in the country’s largest cities to press a sweeping human rights and economic development agenda, reported Reuters.
Mining companies are also in the movement’s sights as aboriginal bands seek to renegotiate old agreements and seize more control over mining developments, whether they are on lands designated as native reserves or not.
The movement has come to the attention of the mining industry and many companies that participated in the Fraser Survey said they were concerned about land claims in Canada.
“I would say one of the big things that is weighing on mining investment in Canada right now is First Nations issues,” said Ewan Downie, chief executive of Premier Gold Mines, which owns numerous projects in northern Ontario.
Current rules oblige mining companies to consult with aboriginal communities as part of the permitting process and, in many cases, agree on compensation if a development infringes on native rights.
But Idle No More, energized by a corps of young, educated and media-savvy activists, appears much less willing to accommodate the mining industry than native leaders have been in the past.
Among its more visible actions, Idle No More protesters cut off access to one of HudBay Mineral’s gold-copper-zinc mine for several hours in early March, demanding talks with the company on an ownership stake in the C$794 million (511.2 million lbs) project, which has started limited production.
Protestors also blockaded a diamond mine in northern Ontario in a push for jobs and cash.
First Nation opposition has already slowed or derailed at least a half dozen energy and mining projects in British Columbia, and environmentalists are increasingly partnering with aboriginal people in an effort to halt projects.
It’s not just new developments that are at risk as the Idle No More movement gains traction.
With isolated communities increasingly turning to social media to share information with others, even companies that already have agreements with local aboriginals could find themselves facing demands for better deals.
“Not all aboriginal communities have been able to enter into the same quality or types of arrangement,” said Blake Langill, Toronto mining leader at global accounting firm Ernst & Young. “So that sharing of the information will be very powerful. It will give them some food for thought as they engage in discussion with the mining companies.”
But it’s not all gloom and doom when miners and First Nations meet. For every project where there is conflict, there are also aboriginal bands that have used mining investment to create economic opportunity for their communities.
At Goldcorp Inc’s Musselwhite gold mine in northern Ontario, five First Nation communities have banded together to create a catering company serving the mine, along with a distribution company that delivers goods across the region.
