EDITORIAL PAGE — Mineral projects held hostage

“If the save-it-all green groups don’t get you, the native land claims will.” A cynical attitude, perhaps, but one that is becoming all too common among resource companies. Many are starting to worry aloud that if they do make a major discovery in certain parts of Canada, they could find themselves held hostage by some sort of land-use controversy.

The increasing uncertainty surrounding land use comes at a time when mining companies are being openly courted to explore and develop projects in just about every corner of the globe. All this leads to a push-pull situation which is not good news for Canada’s minerals industry, nor for the prospects of new discoveries which we desperately need to help reverse this country’s declining reserve base.

Take the recent case of two junior companies that pulled out of a $400,000 program of geophysics and diamond drilling in northwestern Ontario because an aboriginal group expressed concern about the possible impact the program might have on its traditional hunting and fishing activities. More than $1 million had already been spent, with encouraging results, on this prospect just 35 miles from the Placer Dome-TVX Musselwhite gold project being readied for production. The government did not approve the application to carry out further work, even though the companies argued that the environmental concerns of the natives were completely unfounded. The government’s handling of this case is worrisome because, in effect, it abdicated its responsibility to act in the best interests of the province as a whole. Mining is an important industry in Ontario, and the repercussions will be serious if native groups are perceived as having the power to put the brakes on mineral projects, for whatever reason, at any time. At the very least, the government needs to make its policies on these matters clear. It may be necessary to provide some framework for resolving disputes without putting mineral projects on hold. The potential for other projects to be stalled or abandoned is a serious matter, given that aboriginal land claims cover large portions of Canada, and given that many governments have adopted the policy of having native groups (and other stakeholders) “sign off” on all exploration activities taking place on land subject to these land claims.

Newfoundland Premier Clyde Wells appears to have a better grasp of the issue. He has made it clear that exploration work on a recent Labrador nickel-copper discovery could continue under provincial guidelines, notwithstanding unresolved aboriginal land claims over the discovery area.

Mining companies do not mind consulting with aboriginal groups about their exploration and development plans, and many progressive and productive alliances are being forged between companies and aboriginals. And for the most part, mining companies appear more than willing to work with native groups to ensure that they share in the jobs and economic benefits being generated by mineral projects. But disputes can arise, and when they do, governments should take a stand that reflects the economic reality of our times.

Nor should governments try to ensure the rights of any minority by sacrificing the rights of the majority. If there is a lesson to be learned by Canadian politicians in the next decade, this is probably it.