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Collaborative Mining Development: Lessons

from Canada

Dr. Thomas GuntonDirector of Resource & Environmental

Planning ProgramSimon Fraser University

WWW.CIRDI.CA

a coalition of

The University of British Columbia

Simon Fraser University

École Polytechnique de Montréal

With financial support of the Government of Canada through Department 

of Foreign Affairs, Trade and Development

Outline

1. Mining Industry in Canada

2. Approval Process

3. Impact Benefit Agreements

4. Two Case Studies

5. Lessons from Canada

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Mining in Canada

o 800 mines

o 20% of exports

o 400,000 employment

o $ 50 billion 

o 40% of world mining development

Mining Significant

Approval Process

Legal License by government

Social License by community

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Legal License

Environmental Impact Assessment Approval1. Are there significant adverse effects 

No: Project ApprovedYes: go to step 2

2. Can they be JustifiedYes:  Project Approved (conditions)No:   Project Rejected

Decision Maker: Government based on recommendations  from Scientific Panel

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Legal/Social License

1. Aboriginal Title Exists

no development without Aboriginal approval unless “compelling national interest” (Supreme Court of Canada 2014)

2. Aboriginal Title Claimed (not proven)

developer must consult and accommodate needs of First Nations (Supreme Court of Canada 2014)

Social License

No legal requirement 

Support necessary for project success and approval

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Impact Benefit Agreements

o Mechanism for Achieving Aboriginal Approval 

o IBA is a contract between mining company and Aboriginal Community that gives Aboriginal consent subject to company commitments

o Currently 200+ agreements in Canada

Steps in IBA

1. Notification of Interest in Development

2. Submission of Project Description 

3. Community Review of Project

4. Decision (reject, defer, negotiate IBA)

5. Interim Agreement for Negotiation

6. Community Capacity Building (funding etc)

7. Negotiate IBA

8. Implement IBA

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IBA Components

Type of Support

1. Business Support 

2. Financial Payments 

3. Social Infrastructure

4. Employment/Training

5. Environmental  

6. Joint Monitoring

7. Enforcement

How

Purchasing/seed capital

royalties

funds

Targets % of employment

regulations

Committee Reports

penalties

IBA ComponentsType of Support How

Business Support Purchasing/seed capital

Financial Payments royalties

Social Infrastructure funds

Employment/Training Targets % of employment

Environmental Mitigation regulations

Joint Monitoring Committee Reports

Enforcement penalties

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Case Study: Diavik Diamond Mine

Project Overview

Rio Tinto

1992 exploration

2001 construction

2003 operation

1100 employees

$100 million in diamond production

remote location in Northern Canada

Diavik Diamond Mine

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Diavik Diamond Mine Joint Management

o Socio/Economic Monitoring Agreement

o Environmental Monitoring Agreement

o Aboriginal Partnership Agreement

o Creation of Joint Management Boards (Aboriginal, Company, Government) to Oversee Project Development 

Diavik Diamond Mine IBA

Employment/Training 50% Regional

25% Aboriginal

Business Development 25% Aboriginal

Community Support  $ 5 mill/year

Environmental Mitigation (wind)

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Case Study: Prosperity Mine

Project Overview

Owner: Taseko Mines

Type: Copper Mine

Cost: $1 billion 

Employment: 400 direct, 1100 total

Proposed Prosperity Mine

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Prosperity Mine Process: EIA

1. Submits Application: 20082. BC Approves  2010 

Significant adverse effects justified by benefits

3. Canada rejects 2010Significant adverse effects to Aboriginal and wildlife

4. Company submits revised project 20125. Canada rejects 2013

Still significant adverse effects to aboriginal and wildlife

6. Company takes government to court 2013

Summary 

Diavik Mine

o Collaboration

o Negotiates IBA 

o Project is Success

o Free, prior, informed consent

Model of how to develop mine

Prosperity Mine

o No Collaboration

o No IBA 

o Project Rejected

Model of how not to develop mining

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Collaboration

Aboriginal Protest

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Keys to Success

1. Aboriginal Capacity/Unity2. Developed IBA framework 

Legislation, policy

3. Commitment of all parties4. Clear objectives/targets

% hiring  vs “best efforts

5. Strong Aboriginal Legal Rights6. Joint Management Committees7. Regular Public Monitoring8. Penalties and Dispute Resolution

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