COMMENTARY — Partnerships at Musselwhite

The Musselwhite mine of Placer Dome and TVX Gold is situated on traditional lands of North Caribou Lake First Nations in a remote area of northern Ontario. Negotiation of the Musselwhite agreement began in 1989 between the various levels of government, the mining companies and four First Nations communities. A 5-year agreement was signed in 1992, and it took effect when construction was announced in 1996. The mine officially opened in July 1997.

A major challenge facing the companies in their effort to develop the site was the number of First Nations groups affected by the project, and their complex inter-relationships and interests. Of chief concern to the First Nations was the use of a large area of traditional land. The ancestral traditions and values, maintained through the practices of hunting, trapping, fishing and other subsistence activities are highly revered by many in the community, as is the environment that sustains them.

The development of a wage economy was also a major issue in the negotiations. Social and economic conditions in the area are severe, with unemployment hovering around 80 to 90%. The communities are small (about 400 to 700 people) and so sustain a low level of economic activity. While there was some appreciation of the benefits, as well of the skills and demands, of a wage economy, the advent of industrial activity was considered by many to be a threat to their environment, resources, culture and community.

More than 30 separate interests were represented at the negotiating table when the process began. Eventually, various agreements were concluded, including the Musselwhite General Agreement, which was entered into by all parties. The agreement covers five areas of concern, including: n Environmental issues, with downstream water quality being of particular importance — Notable in this section are requirements that First Nations representatives be informed and included (beyond what is required by government) in the decision-making process regarding environmental issues at the mine.

n Cultural and heritage issues — The Musselwhite site was mapped to show precise locations of the religious, cultural and subsistence resource areas noted by First Nations representatives, including graves and other spiritual sites, trapping, fishing, hunting and berry-picking areas, together with accords for how these areas will be treated, reclaimed or left undisturbed.

n Jobs or job opportunities — The agreement spells out the minimal acceptable level of employment of First Nations people by the company.

Specifically, members of the four signatory communities are to comprise 25% of the mine’s workforce. In addition, various kinds of training assistance are to be provided to First Nations community members through the joint venture, tribal councils and provincial government.

n Business and other economic opportunities — The agreement commits the parties to making business opportunities available to the First Nations communities for their own administration, such as hiring community co-ordinators, sending representatives to quarterly meetings and attending working committee meetings at the mine site.

n First Nations administration — The agreement also provides essential funding to the First Nations communities for their own administration. such as hiring community coordinators, sending representatives to quarterly meetings and attending working committee meetings at the mine site.

Once environmental issues had been addressed to the satisfaction of the First Nations communities, they began to support the mine and focus on its potential economic value. The order of these priorities was a significant revelation for the companies.

Sensitivity to the real purpose of the agreement, on all sides, is an ongoing concern. But many employees and local contractors now know, either from reputation or experience, that they must adhere to the terms of the agreement to do business at Musselwhite. First Nations participants, including trainees, applicants and employees, recognize that the opportunities afforded them by the agreement exist inside the structure and rules of a wage economy. Both sides are beginning to realize that increased sensitivity to, and respect for, the other’s viewpoint is required.

— The preceding is an excerpt from the newsletter of the Ottawa-based International Council on Metals and the Environment.