The mining sector is hoping ground-breaking revenue sharing agreements made this week between the province and First Nations will contribute to improving the mining investment climate in the province.
The government announced Wednesday a mining revenue sharing agreement between the government and the McLeod Lake Indian Band. It follows a similar type of agreement between Victoria and the Stk’emlupsemc of the Secwepemc Nation (SSN) where revenue from the mineral tax will be shared with local First Nations.
The agreement with the Stk’emlupsemc will see $30 million of the mining mineral tax distributed to them over the expected 12-year lifespan of the New Afton gold-silver-copper mine located 10 kilometres west of Kamloops once the mine opens in 2012.
Both agreements are among the first of their kind among the provinces.
Pierre Gratton, president and CEO of the Mining Association of BC, said in an interview Wednesday night, “I think it has the potential to significantly improve the investment climate for mining in B.C. and make it more attractive. It also sends a signal to other First Nations and paves the way for better trust and faith that they will get something from mining because, symbolically, [the agreements] recognize that what’s under the ground is on land they’ve traditionally occupied and they should share in the royalties.”
The latest agreements add to efforts the mining sector has made to share the wealth with local First Nations communities. Gratton noted, “Mining is one of the largest employers of First Nations in the country and it is growing at a rate of 25% a year, but there’s a lot more we can still do.”