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November 16, 2005: Tahltan asked to approve mine plan

B.C.

Tahltan asked to approve mine plan

By Rod Link

Nov 16 2005

Terrace Standard

THE TAHLTAN ARE being asked to ratify a plan that will bring them jobs and investment based on the development of a multimillion dollar copper, gold and silver mine in their traditional territory.

Vancouver-based NovaGold Resources has committed itself to job training and hiring of Tahltan, to business opportunities for Tahltan companies and to financing a heritage trust fund in recognition of the social and other impacts coming from its proposed Galore Creek mine.

Ratification will take the form of a vote the end of this month after 13 information meetings are held in 11 communities, says Curtis Rattray, the chair of the Tahltan Central Council which put together the deal.

The draft agreement, worth millions to the Tahltan who live in and around Iskut, Dease Lake and Telegraph Creek north of here, has the blessing of the two Tahltan band councils and of the central council, he said.

"What we believe is new in the province for First Nations is the heritage trust fund. It’s quite common in other jurisdictions but we think it is a first of its kind in B.C. It’s precedent setting," said Rattray.

NovaGold will make payments based on the profitability of the mine to the Tahltan Heritage Trust Fund which the Tahltan will control.

The company is forecasting a mine life of at least 20 years with estimates of after-tax annual cash flow ranging from $200 million to $350 million in its first years of operation.

As many as 1,000 people will be needed to construct the mine and it could employ just over 500 people during its operating life.

As well, a variety of support services will be required, opening the way for more employment and business opportunities.

Rattray said the tentative agreement calls for NovaGold to train Tahltan and to identify gaps in education and skills that will need to be closed in order to secure employment.

Some of the workforce is anticipated to come from the existing Eskay Creek gold mine, also on Tahltan traditional territory, which is scheduled to close within the next 18 months.

NovaGold’s development schedule anticipates a construction start in mid-2007 with commercial production to begin in 2010 based on the completion of a final feasibility study and governmental environmental approval.

Rattray said there is no set number of jobs to be set aside for the Tahltan but that the company will give them preference when hiring.

"What we need to do is assess the skills and qualifications needed. We have four years before the mine is to open," said Rattray.

NovaGold Galore Creek project manager Carl Gagnier described the draft agreement as a win-win for his company and for the Tahltan.

"We’ve made a very large commitment to the Tahltan people through this agreement," said Gagnier. "There’s plenty of opportunity here for the Tahltan."

He said the formation of the heritage trust fund is NovaGold’s way of acknowledging its project will have social and other impacts on the Tahltan people.

"What we have tried to do here is put in place a legal document that formalizes and defines how we will work together," Gagnier added.

Rattray and Gagnier said one example of cooperation resulted in NovaGold changing its planned road access to connect the mine with Hwy37.

An earlier route proposal drew Tahltan worries about environmental impacts on fish-bearing waters and other issues. The new route calls for a much-narrower road and the construction of a pipeline to transport concentrate from the mine to Hwy37 for hauling.

The draft agreement was reached through what Rattray described as a new way for the Tahltan to make decisions. It was first crafted by negotiators, then presented to the Tahltan Central Council executive, which consists of Rattray as chair and the two chiefs of the two Tahltan bands in Telegraph Creek and in Iskut.

It was then passed to the councils of the two bands and to the central council board, which is made up of representatives of the 10 main Tahltan clans.

The current schedule of information meetings followed by ratification is meant to gain the involvement of as many Tahltan as possible, said Rattray.

This new process is also important to demonstrate the Tahltan Central Council’s position as being representative of the Tahltan people.

It has run into stiff opposition from a group of people who challenge its authority to make decisions because they say the elders are being ignored. The group occupied the offices of the Telegraph Creek band earlier this year.

Members of the group also blockaded road access to the Klappan area this summer so another resource company, Fortune Minerals, could not work on its anthracite coal licences.

Rattray said the Klappan area is drawing more attention because it is used more in modern times by the Tahltan than is NovaGold’s Galore Creek property.

"There’s more potential for acid rock drainage in the Klappan and not so much at Galore Creek," Rattray added.

So far, there has not been the level of opposition to NovaGold that has befallen Fortune Minerals.

Gagnier from NovaGold said that while he could not speak for other projects, his company has put a lot of work into its development.

"Any relationship is based on communication and we’ve worked very hard at that," said Gagnier. "We’ve heard concerns and we have listened to everyone."

Ratification of the agreement will be a crucial example of the "consult and accommodate" requirement ordered by the courts in how governments and industry deal with native people.

Court rulings have held that while native groups do not hold a veto on developments on their traditional territory, they must be included in decision making and that social, environmental and impacts on natives on must be taken into account.

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Terrace Standard

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