Noront Resources

https://fundingportal.com/blog/qp-briefing-bob-rae-ontario-ottawa-not-stepped-plate-ring-fire/?platform=hootsuite

The former Ontario premier, who is the lead negotiator for the Matawa First Nations, says negotiations with the government “are continuing and from my perspective, we’re making progress.”

Former Ontario premier Bob Rae says the provincial and federal governments have yet to really start putting their money where their mouth is on the Ring of Fire and its nearby First Nations.

Rae, now a senior partner at law firm Olthuis Kleer Townshend LLP, is the lead negotiator for the Matawa First Nations group on the Ring of Fire. In a recent interview with QP Briefing, a still-optimistic Rae said both levels of government have put just “a bit” of funding into the mining region and its neighbouring communities.

“But neither one of them has … stepped up to the plate in the way in which we would like them to,” Rae said. “We’re still discussing how that can be done. I think it’s a dialogue that is really important to get things right. It’s really about making sure that we’ve got a willingness to act. And I think on the basis of the meetings that we’ve had … that willingness is clearly there.”

Premier Kathleen Wynne‘s Liberal government has a longstanding promise on the books to invest $1 billion into infrastructure for the Ring of Fire, which is located approximately 540 kilometres northeast of Thunder Bay. That money has yet to be spent, and the Ontario Liberals have long held out hope that the federal government would match that investment.

But the partnership has yet to materialize. The region also merited a single mention in the Wynne government’s throne speech last September, a vow to “continue to work with First Nations and other partners to move forward with greater access to the Ring of Fire and remote First Nation communities.”

The volatility of mineral prices has helped bog down development of the Ring of Fire, which has been estimated to hold $60 billion in chromite and other materials, as well as the potential to boost economic development in Northern Ontario. Those estimates, though, have been questioned recently, and media reports have suggested the federal government’s interest in the region may have waned.

Rae said the province’s interest hasn’t cooled, but that the federal Liberal government is definitely the more aloof of the two. “We’re trying to attract their attention in terms of infrastructure and broadband [Internet access],” he said. “And there are obviously clear implications for the federal government’s reconciliation agenda.”

At the provincial level, talks between the government and First Nations have been unfolding gradually since a regional framework agreement was struck in 2014. The framework is meant to guide further negotiations, in which former Supreme Court justice Frank Iacobucci represents the province. Rae said he didn’t want to predict how long it would take for a new agreement to be struck.

“We’ve agreed not to bargain in public, but I think it’s fair to say that following the regional framework agreement, there’s a focus on conditions in the communities and what can be done, what the province can do to contribute to improving them,” Rae said. “A lot of people talk about the Ring of Fire as a mineral development, and from our perspective it’s really about the communities that are there, the people that live there, and how do we ensure that these projects actually improve the quality of life, improve the prospects for better education and better health care, and ensure that the First Nations have control over or are able to participate directly in how these developments evolve – that these are not things that simply happen to them, but they’re things that they have a say in controlling. ”

In the private sector, Noront Resources Ltd., the biggest remaining player in the Ring of Fire, sent out an update Tuesday warning progress on a joint infrastructure plan between it, the province, the federal government and First Nations may be slower in coming to fruition than earlier anticipated. The company does, however, claim the Ontario government is eyeing 2018 as a start date for construction (a provincial byelection slated to be held this year in Sault Ste. Marie may also re-stoke interest in the project).

Following another throne-speech promise, the Liberal government set up Ring of Fire Infrastructure Development Corp. in 2014 to bring in other partners and work out the necessary details to build roads and other needed transportation networks. However, no other partners have joined the province in the corporation – NDP MPP Michael Mantha once said that “besides four bureaucrats sitting at a table playing euchre by themselves, we see nothing.”

In the meantime, Noront has been pushing for east-west road access to the Ring of Fire (one of its competitors has flirted with the idea of Chinese-funded rail link). The company has also touted its multi-metal Eagle’s Nest mine as a good starting project for the area, but it has been slow going, with the environmental assessment terms of reference for the project only approved by the province in June 2015. No new developments have been announced since that date.

“Although progress is being made, this process intersects with discussions between the province and the Matawa Tribal Council at the Regional Framework Table that are taking longer than anticipated and that have the potential to delay the provincial government’s stated goal of having shovels in the ground by 2018,” said the mining company in a release. “The timing for development of the company’s Eagle’s Nest mine is tied to the delivery of the shared access all-season road, as previously stated.”

Noront said it would start meetings this month with the Neskantaga First Nation (a Matawa member), as well as focus on working with two other communities.

Rae said the focus for him and the chiefs is that these projects are being proposed on traditional First Nation territory.

“They are in the heart of territory that has not been developed before, and it’s really important to get the relationship right, and it’s very important to get the processes right so that we don’t have a repeat of mistakes that have been made in the past,” he said. “First Nations have been left on the margins of development in our history in Ontario, and the chiefs have been very clear that they don’t want that to happen again. People are not opposed to development, but they’re very insistent that it has to be done in a way that’s respectful of the need for a new partnership. That I think is at the heart of the discussion.”

In addition to the Crown’s duty to consult with First Nations on mining projects, Rae said there is also a spotlight on the conditions in the nearby communities and how their situation can be improved. That includes, he said, resolving the question of how First Nations would be involved in any environmental assessment process. Also to be resolved are discussions about transportation infrastructure, broadband access, revenue sharing and jurisdiction.

“But the dialogue has been very constructive. The negotiations are continuing and from my perspective, we’re making progress.”

UPDATE: The following is a statement from Ontario Northern Development and Mines Minister Michael Gravelle:

“Ontario is working hard to lay important groundwork to drive smart, sustainable and collaborative development in the Ring of Fire. Leading development in an area of the province that has never seen development before is a complex undertaking. As we move forward, Ontario must be mindful of important aspects that impact proposed projects: market conditions, discussions with First Nations, and the need for the Government of Canada to partner with us on this project of national significance. We are working to strike a balance between environmental protection, resource development and socio-economic benefits for communities and all Ontarians. Currently, Ontario’s focus is to see progress on negotiations with Matawa member First Nations, transportation infrastructure, and community readiness. Ontario is also working with the federal government on planning and work on the ground in the Ring of Fire.

Investing in transportation infrastructure is vital. Ontario is actively doing the work necessary to move forward on infrastructure decisions in close collaboration with our key partners. We continue to work with communities on next steps on community access roads. And work on upgrading existing provincial highways that would serve as connectors for communities and industry began last year. To realize the potential of the Ring of Fire, people need to get in to work, and products need to get out to the global market. It is important that we make progress on decisions pertaining to proposed infrastructure corridors and that is why the Ontario government has committed up to $1 billion for strategic infrastructure in the Ring of Fire.

Our number one priority is to grow the economy and create jobs. Moving forward on the Ring of Fire is key and we’re actively doing the work necessary with Matawa First Nation communities, the federal government, and with industry partners to drive progress in the region.”