Yukon First Nations Do Business with the Mining Sector
By: Government of Yukon
Published:Jan 25, 2010
You’d be hard-pressed to find a new mining development in Yukon that doesn’t involve First Nations, in one way or another. Most of them have settled land claim and self government agreements and have established development corporations ready to set up partnerships and agreements with companies developing Yukon’s mineral resources. Some First Nations have already developed strategic economic development plans and others are still in the works. But there’s no doubt that First Nation involvement is the wave of the future and presents unique opportunities and challenges for both mineral exploration and development companies and the First Nations themselves.
The Liard First Nation Development Corporation (LFNDC) is one example of a First Nation company that did take the time to build a strategic economic development plan, and that initial work seems to have paid off. “We’re working together with a number of mining companies,” says Alex Morrison, LFNDC General Manager. “Our biggest success to date has been our involvement in the construction of a new mine at the Wolverine deposit in southeast Yukon.” The mine, owned by Yukon Zinc, is expected to open in mid-2010. Yukon Zinc has signed a socio-economic participation agreement with the Ross River Dena Council, on behalf of the Kaska Nation, which also includes Liard First Nation. Implementation of the agreement is being coordinated by the Ross River Dena Council.
“Under the terms of the agreement, we’ve set up contracts and joint-ventured with companies working on various aspects of the project, including construction, road work, catering, site security and first aid,” says Morrison.
Yukon Zinc figures show that a significant number of their workers are local and First Nation people. In July 2009, 80 out of 200 on-site positions were filled by First Nation members and Yukoners, with the majority of those being Kaska people. Overall, the company estimates its workforce at about 30 percent Kaska during 2008 and 2009. Those positions include heavy equipment operators, site services and maintenance, environmental technicians, kitchen and cleaning services and administration.
“Our agreement with the First Nation covers a wide variety of areas, such as jobs, training, scholarships and joint ventures,” says Raymond Mah, Yukon Zinc Chief Operating Officer. “We’re very committed to continuing the established relationship we have with the Kaska Nation.”
“Our development corporations are still relatively young,” says Morrison. “Joint ventures with more established companies give us instant capacity and help us ensure we have Kaska, First Nation and Yukon people working onsite. It also gives us the chance to develop in-house capacity and build businesses for future developments. We’re growing up and participating in Yukon’s economy, which is good for First Nations, other businesses and the Yukon in general.”
Similar relationships have developed at the copper-gold Minto Mine in west-central Yukon. Owned by Minto Explorations and its parent company Capstone Mining, the Minto Mine began commercial production in October 2007.
“We have a cooperation agreement with the Selkirk First Nation, which has a number of provisions that relate to fiscal benefits, employment and contracting,” says Stephen Quin, Capstone President and Chief Operating Officer. “About 20 to 25 percent of our employees on site are members of the Selkirk First Nation and another 10 percent are from other First Nations. It’s a benefit for us to have a stable local workforce.”
The Minto Mine has also entered into direct contracts with Selkirk First Nation members and local residents to provide goods and services such as bus service, equipment and road maintenance. In addition, it has contracts with other companies which have set up partnerships or other arrangements with the Selkirk First Nation to carry out aspects of mine operations such as catering and fuel supply. “We aim to facilitate these arrangements but we’re not directly involved in their negotiation,” says Quin. “Through our tendering process, we strongly encourage contractors to find ways to work together with First Nations.” First Nation involvement is then one of the aspects considered when bids are assessed.
“Our mine has only been operating for a couple of years, so it’s very early in our relationship with the First Nation,” says Quin. “It has definitely been a learning experience for both parties. There is a strong interest from First Nations in developing both employment and business opportunities. From our company’s perspective, as a good corporate citizen, we want to ensure that benefits flow to the local community and that we leave a positive legacy behind of sustainable business capacity.”
“The Minto Mine is also somewhat different compared to other Yukon projects, in that it is located on Category A land,” notes Quin. “That means the Selkirk First Nation owns both the surface and mineral rights, with our prior existing rights grandfathered under the land claim agreements.”
One of the ways that local capacity is being developed is through the Yukon Mine Training Association (YMTA), a partnership between Yukon First Nations and mining and resource companies. It provides training and education to prepare First Nations people and other Yukoners for work in the mining sector. “The YMTA has been a great success,” says Quin. “We’re involved in it through a whole range of avenues that improve the involvement of First Nations in our operations and related activities.”
Another First Nation that has begun to establish itself in the Yukon mining sector is the First Nation of Na-Cho Nyak Dun (FNNND). It has signed exploration cooperation agreements with Alexco Resource Corporation and StrataGold/Victoria Gold Corporation, which commit the parties to working together in good faith. Like other Yukon First Nations, FNNND is looking for business relationships that will last decades and bring long-term benefits.
Yukon government will soon release a new document aimed at guiding resource companies through effective and appropriate engagement with First Nations and communities. This document, scheduled to be released early 2010, will help companies develop and maintain strong relationships with Yukon First Nation’s governments, citizens and communities. For more information about this toolkit, contact the Department of Economic Development at (867) 667-8853.
