NEWS RELEASE: MAC issues statement on Government Resource Revenue Sharing – Sharing of mining royalties between the Crown and Aboriginal communities

OTTAWA, Feb. 1, 2016 /CNW/ – The Mining Association of Canada (MAC) and its member companies have issued a position statement communicating its support for a principled, open and transparent approach to government resource revenue sharing between the Crown and Aboriginal communities that are primarily affected by a specific resource project.

“With this statement, MAC’s members, comprising some of the largest mining companies in Canada, are voicing their collective support for greater participation of Aboriginal people, communities, businesses and governments in the mining industry. We believe that government resource revenue sharing is one of many important ways that we can achieve that,” stated Pierre Gratton, President and CEO, MAC.

Government resource revenue sharing is understood as a sharing of resource royalties paid by industry to governments with Aboriginal communities. It is not an additional tax or royalty imposed on the industry.

As detailed in the position statement, MAC believes that government resource revenue sharing can provide Aboriginal communities with greater opportunities to participate in the mineral exploration and mining industry, and could significantly contribute to the elimination of socio-economic disparities between Aboriginal and non-Aboriginal Canadians. Moreover, by enhancing and clarifying Aboriginal benefits, these arrangements can result in increased certainty for commercial access to land and resource development.

“In recent years, we have seen several provinces and territories establish government resource revenue sharing models, and others are moving in that direction in response to calls from the Aboriginal community. We view government resource revenue sharing as one of several important ways to increase the benefits of mining to Aboriginal communities, and are pleased to voice our support,” stated Gratton.

In practice, government resource revenue sharing models should be developed collaboratively between respective provincial or territorial governments and Aboriginal communities. It should be applicable to new mines and to new major expansions of an existing development.

MAC believes that government resource revenue sharing complements other initiatives between mining companies and communities, usually committed to as part of Impact Benefit Agreements and other agreements. There are currently 265 active agreements between mining companies and Aboriginal communities across Canada, as well as numerous joint ventures, collaborative planning efforts, and extensive training and employment initiatives. “These serve as a testament to the ongoing development of progressive relationships between mining companies and Aboriginal communities,” stated Gratton.

Download the MAC Position Statement on Government Resource Revenue Sharing between the Crown and Aboriginal Communities.

About MAC

The Mining Association of Canada is the national organization for the Canadian mining industry. Its members account for most of Canada’s production of base and precious metals, uranium, diamonds, metallurgical coal, mined oil sands and industrial minerals and are actively engaged in mineral exploration, mining, smelting, refining and semi-fabrication. Please visit www.mining.ca.

SOURCE Mining Association of Canada (MAC)

For further information: Jessica Draker, (613) 233-9392 x225 or [email protected]; Johanne Senécal, (613) 233-9392 x325 or [email protected]

RELATED LINKS
http://www.mining.ca

The Mining Association of Canada’s Position Statement on Government Resource Revenue Sharing between the Crown and Aboriginal Communities

PREAMBLE

Whereas Canada is a resource rich country and its mining industry contributes greatly to its economic strength, including $57 billion to Canada’s gross domestic product in 2014;

Whereas the current and future development of mineral and metal resources offers great opportunities to Aboriginal communities;

Whereas the Mining Association of Canada (MAC) and its members recognize that building respectful and sustainable relationships with local Aboriginal communities is essential to successful and responsible mining project development and operations;

Whereas the two hundred and sixty five currently active agreements between mining companies and Aboriginal communities across Canada, numerous joint ventures, collaborative planning efforts, and extensive training and employment initiatives demonstrate the ongoing development of progressive relationships between mining companies and Aboriginal communities;

Whereas Section 35 (1) of the Constitution Act (1982), Section 35 (1) protects Aboriginal and treaty rights of Aboriginal peoples in Canada;

Whereas the Assembly of First Nations and Aboriginal Affairs and Northern Development Canada Working Group on Natural Resource Development Report Advancing Positive, Impactful Change (February 2015) calls for a national approach to government resource revenue sharing to ensure that the benefits flowing to individual First Nations are more consistent in nature across Canada;

Whereas governments have the authority to set royalty and tax rates at levels deemed appropriate in their jurisdictions, some provinces and territories have adopted varied models of resource revenue sharing in an effort to build new relationships with First Nations founded on mutual respect, recognition and reconciliation, and to support Aboriginal people’s participation in regional economic development projects and social progress;

Whereas MAC and its members welcome greater participation of Aboriginal people, communities, businesses and governments in the mining sector.

GUIDING PRINCIPLES

MAC is supportive of a principled, open and transparent approach to government resource revenue sharing between the Crown and Aboriginal communities.

Government resource revenue sharing is understood as a sharing of resource royalties paid by industry to governments with Aboriginal communities. It is not an additional tax or royalty imposed on the industry.

POSITION STATEMENT

MAC believes that:

• Government resource revenue sharing provides Aboriginal communities with greater opportunities to participate in the mineral exploration and mining industry and could significantly contribute to the elimination of socioeconomic disparities between Aboriginal and non-Aboriginal Canadians;

• Government resource revenue sharing, by enhancing and clarifying Aboriginal benefits, can result in increased certainty for commercial access to land and resource development;

• Government resource revenue sharing may provide an important basis for the accommodation of Aboriginal communities’ interests;

• Government resource revenue sharing should primarily benefit those Aboriginal communities affected by the specific resource development with residual benefits accruing to other Aboriginal communities in the region;

• Government resource revenue sharing should derive from a collaboratively developed formula with government and Aboriginal communities and should be applicable to new mines and to new major expansions of an existing development;

• The mining industry is willing to share its global experience with government resource revenue sharing with federal, provincial, territorial and Aboriginal governments;

• Government resource revenue sharing should consider, including but not limited to, the following: the economic impact of the project, the strength of claim of individual communities and the number of Aboriginal communities asserting rights in the development zone, the population of the impacted Aboriginal community(ies), the future development potential of the area and the degree of impact on specific communities; and

• Government resource revenue sharing is distinct from the conclusion of mutually acceptable impact benefits or other types of cooperation agreements signed between Aboriginal communities and project proponents.

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