Revenue Sharing & First Nations

Op-Ed by Taseko President/CEO Russell Hallbauer:

Many readers likely will have read in the newspaper that the British Columbia Government has now signed 14 Economic Development Agreements with First Nations across the Province. These agreements commit the Provincial Government to share up to 37% of the BC Mineral tax from BC mining operations collected within First Nations traditional territories. Over the past four years $12 million has been shared with various First Nations. The most recent agreement was the one signed May 21, 2014 on the Huckleberry Mine, a few hundred miles from Williams Lake.

A similar agreement is presently being developed between the Government and those bands in close proximity to our Gibraltar Mine.

These agreements, over the next 25 years of Gibraltar’s life, will allow First Nation communities to benefit directly over and above employment and other opportunities, in the financial success of the Gibraltar Mine.

Taseko personnel were some of the earliest advocates of revenue sharing when the process began with Government and the Mining Association of British Columbia a number of years ago.

In that context everyone in the Cariboo should appreciate what a revenue sharing agreement on New Prosperity would mean to not only First Nations but to all the communities of the Cariboo. Over the life of the mine, it is expected that New Prosperity would generate (at projected long term metal prices) close to $500 million in BC Mineral tax. This would mean that First Nations, ie. those First Nations who sign on to such agreements, would receive roughly $185 million in direct payments over the course of the mine life when New Prosperity is built and operating, roughly $9 million per year. However, if the price of copper and gold were to return to $4.00 /lb and $1,500 /oz levels respectively and hold for the life of the mine, the mineral tax generated by New Prosperity would be nearly $1 billion meaning First Nation participants would receive $370 million or $18 million each year, $1.5 million per month.

What would that mean to many of the First Nation communities throughout the Cariboo in terms of support programs for mental health and wellbeing, enhancing community services of all kinds to help individuals deal with any number of social issues? How would those direct dollars help the youth of the communities to gain self-respect and a purpose in life? One need go no further than to see how Taseko’s relationship with the Williams Lake Indian Band has helped that community and the youth.

And on top of these projected payments to First Nations, jobs and opportunity will be created for all Native and Non-native people, importantly First Nations youth, like those presently being trained through AMTA, and like those from the Soda Creek Band, Alexandria, and the Williams Lake Band who work at Gibraltar.

It’s time for the First Nations leaders of the communities across the Cariboo to look to the future of their communities, and to what real leadership means, and that means embracing change for the betterment of all citizens – both Native and Non-native.

Taseko remains committed to addressing any and all environmental concerns on New Prosperity, operate it just like Gibraltar has operated for the past 40 years, and address impacts on Fish Lake to the satisfaction of our Local First Nation neighbors as well as the Federal Government.

We are open to dealing with all groups to develop a path forward in that process so that the entire Cariboo can share in the success of New Prosperity as so many are now sharing in the success at Gibraltar.