The Musselwhite gold deposit in northwestern Ontario is on land belonging to First Nations. Dealing with the development concerns of First Nations created an additional challenge for Placer Dome beyond the usual acquisition of regulatory permits.
Building a mine on this land would affect a number of First Nations communities, chief among which is the North Caribou Lake First Nation, 50 km to the northwest. The proposed mine would impinge upon traditional activities such as hunting, fishing and trapping, as well as disrupting various sites of spiritual and cultural significance.
About 90 km southwest of the project is the community of Cat Lake. This community had participated in the Golden Patricia mining project, near Pickle Lake, in the early 1990s and wanted to play a role in Musselwhite’s development.
The communities of Wunnumin Lake and Kingfisher Lake are 45 km northeast of, and downstream from, Musselwhite. They were concerned about water quality and other environmental issues. These two groups also had traditional hunting and gathering activities close to the proposed mine.
These four communities, together with their respective First Nations councils, Placer Dome, TVX Gold and the federal and provincial governments, began developing an agreement that would allow the First Nations to participate in the economic benefits of Musselwhite. However, there were a few bumps in the road.
One of challenges associated with creating such an agreement involved understanding First Nations culture. Historical relationships between First Nations and various levels of government created an attitude of mistrust toward non-native cultures. Placer Dome was working on a definite time line whereas the First Nation culture was not driven by similar deadlines. First Nations required much consultation within their communities and only when consensus was reached did they move forward.
The First Nations were also concerned with the influences of “white” culture. For example, they were concerned that the all-weather road into the area might provide access to drugs and alcohol.
Meanwhile, First Nations had limited knowledge of the mining industry, and most of this knowledge was based on outdated information. Placer had to educate them about modern mining methods and how these methods would affect the natural environment. This knowledge enabled First Nations to make informed decisions and curb false perceptions of the industry.
From the company’s perspective, there was a need to understand the importance of traditional knowledge held by First Nations people. Their intimate relationship with nature and their thoughtfulness on environmental issues helped the company modify its environmental approaches. Incorporating this knowledge into Musselwhite’s environmental policy and programs demonstrated that Placer Dome valued their knowledge and contributions.
Workshops were held to provide First Nation members with a background to the potential environmental impact of mining and the company’s proposed programs for monitoring and protection. The First Nation members, in turn, provided traditional insight regarding the ecological patterns of the area and participated in establishing the scope of the company’s environmental programs and studies.
An environmental working committee was established between company personnel and members of the First Nations.
Employment proved problematic. A new mine requires skilled miners and operators to get things up and running as quickly as possible. It was therefore necessary to hire experienced workers, most of whom were non-natives, and this naturally reduced the number of jobs available to First Nations. This quickly became an issue and had to be addressed through a series of accelerated training programs.
By 1992, the Musselwhite Agreement had been developed and signed, though it was not put into effect until February 1996, when mine construction began. The agreement recognized issues of importance to all parties and included training and employment opportunities for signatory First Nations and their affiliates, as well as the businesses that serviced the mining camp. The agreement also recognized traditional economic activities, such as hunting and trapping, by allowing traditional leave for First Nations employees.
Working committees were developed to act as a forum for information exchange between Placer Dome and First Nations. Funds were provided so that the communities and their respective First Nations councils could attend these meetings and review technical reports.
The agreement also called for:
– funding for projects, such as hockey arenas and water and sewer installations;
– the prohibition of drugs and alcohol on the site;
– protection of spiritual and culturally significant areas in and around the mine property; and
– compensation for trappers to cover economic losses due to mine disturbances.
During construction, Placer quickly realized that introducing First Nations to a modern, industrial work site was not an immediate process. Many of the First Nation employees were not accustomed to structured work schedules, and many of the First Nations contractors servicing the mine site did not have a solid business background. The company modified its approach to help the First Nations adjust and allow personnel to develop an understanding of First Nations culture. To aid in this effort, we hired two full-time native employment co-ordinators to recruit First Nations employees. They helped encourage community members to seek employment and assisted First Nations employees in adjusting to an industrial work site by explaining the mining business to the community at large.
Furthermore, some First Nations employees were provided with apprenticeship training programs in electrical, welding and mechanical trades.
At the same time, non-native employees attended cultural diversity training to gain a greater understanding of native history and culture.
The signatory groups were able to observe, first-hand, Placer Dome’s values and its way of doing business. They became confident that environmental issues were being well-managed and realized the economic advantages of such an approach. This greater trust and understanding was evident during the negotiation and signing of the new Musselwhite Agreement. (The original agreement expired in February 2001; discussions regarding the new agreement began in 1999.)
A significant aspect of the negotiations was the limited involvement of the federal and provincial governments. This, in itself, represented a major shift in thinking for the First Nations in dealing with a large corporation. It demonstrated that trust and respect between the First Nations and Placer Dome had grown. They were less afraid of losing their rights by entering into a business relationship without government agencies representing their interests.
The new Musselwhite Agreement was signed in November 2001. Its significance is threefold:
– The agreement is intended for the life of the mine, and will end on cessation of gold production.
– It represents an unfettered business strategy. Under the original agreement, mill throughput was limited to 3,300 tonnes per day. This cap is no longer in place. The mine is now operating at 3,650 tonnes per day and is scheduled to increase to 4,000 tonnes. First Nations also support exploration on the Musselwhite claim block and surrounding area.
-A revenue-sharing program has been developed based on gold production and gold price.
The notion that mining companies can run economically, while being socially and environmentally conscious, is important. And although mining is not sustainable, the relationships with non-industrial groups affected by mining are. For Musselwhite, this means continued environmental stewardship, assisting First Nations communities with socio-economic development, and fostering relationships built on mutual trust and respect.
— The preceding is from a speech given by Colin Seely, general manager of the Musselwhite gold mine, at the recent convention of the Prospectors & Develop
ers Association of Canada.
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