In recent decades, the nexus between companies and aboriginal communities has transformed and continues to evolve, as relationships have been built and aboriginal communities have a more active role in mineral development.

These changes were accelerated by legal, political, and social shifts, including the inclusion and protection of aboriginal rights in Canada's Constitution and subsequent aboriginal rights jurisprudence, more socially minded industry actors, formalized relationships through company-community agreements, and strengthened capacity of aboriginal communities to participate in project development and the mineral sector at large.

All of these elements have paved the way toward a balanced, mutually beneficial environment. The minerals industry has a long history of building strong relationships and partnerships, and generating economic opportunities for aboriginal communities within the context of a challenging and evolving landscape, characterized by historical legacies, land tenure disputes, poor socio-economic conditions in many communities, and complex crown-aboriginal relations.

While some of industry's advancements were precipitated by legal and policy changes, the nature and scope of these actions have extended beyond meeting legal requirements. Industry recognizes that it is critical to develop and maintain robust, open, and trusting relationships with aboriginal communities affected by, or with an interest in, mineral exploration and mining activities.

Companies engage with affected communities in order to share information and work together on issues related to environmental mitigation and cultural protection, as well as those related to benefits and opportunities.

The minerals industry encourages efforts to facilitate the full participation of aboriginal people in the economic opportunities generated by mineral development. These opportunities exist throughout the mineral development sequence from exploration to mine development and closure. They differ in scope and breadth, depending on the stage of the project, the state of the market, and the type of project.

The industry supports participation through training, business development, local procurement, employment, and financial arrangements. In addition, the minerals industry often makes social investments through different initiatives and partnerships that improve quality of life in aboriginal communities and support participation in the resource economy.

As a result of its efforts, the industry has become the largest private sector employer on a proportional basis of aboriginal people in Canada. One great example is New Gold's project in British Columbia, where 25% of the employees are aboriginal. Similar numbers exist for the company's exploration project northwest of Fort Frances in northwestern Ontario. Furthermore, more than 50% of the workforce of the diamond mines in the Northwest Territories is aboriginal. Overall, aboriginal employment in the mining and mineral processing industry increased by 12% from 2007 to 2015.

A key mechanism through which economic opportunities have been created is company-community agreements. There has been a significant number of agreements signed between mineral companies and aboriginal communities, with nearly 500 agreements signed since 1974. The majority, 376, have been signed within the last decade. These agreements are generally voluntary, and they are increasingly recognized internationally as a leading practice.

Each agreement is unique. The content of agreements varies depending on a number of factors, particularly with the type and stage of a project, as well as the potential impacts of a project on communities. Company-community agreements contain provisions related to employment, preferential contracting and joint ventures, capacity funding, environmental measures and monitoring, traditional land use and knowledge provisions, training programs, shares and warrant opportunities, infrastructure opportunities, financial provisions, confidentiality clauses, and dispute resolutions and implementation mechanisms.

Agreements have generated numerous benefits for affected communities. Goldcorp's Musselwhite project in Ontario, for example, supports training and capacity building, procures millions of dollars a year in goods and services from aboriginal businesses, such as Windigo Catering, and has a nearly 25% aboriginal workforce.

Cameco Corporation in Saskatchewan has become Canada's largest industrial employer of aboriginal people and it strongly supports business development. More than 70% of the services Cameco uses at its operations in the region are procured from aboriginal-owned companies in northern Saskatchewan, amounting to more than three billion dollars' worth of business over the past decade.

Agreements and the benefits they provide are truly a testament to the strength of commitment by the industry to developing mutually beneficial partnerships and to the interest of many communities in the economic development opportunities generated by the minerals sector.

I also want to briefly mention that governments in Canada have made a contribution to the shifting landscape. This has largely been driven by the legal framework and policy decisions, including the protection of aboriginal and treaty rights through the duty-to-consult framework, the settlement of land claims, the government resource revenue-sharing mechanisms, and the inclusion of aboriginal people in permitting procedures and environmental assessments.

While we may have a lot to celebrate, challenges still remain. Mineral companies in aboriginal communities in Canada continue to encounter a number of challenges in their engagement with one another but also independently as a result of other factors. These issues can impact the ability to develop successful projects and are a barrier to fully realizing and maximizing fully mutual benefits.

PDAC conducted national round tables and some of the key challenges identified include the following: awareness gaps between companies and communities; skill gaps and capacity issues in communities; crown-aboriginal legacy issues; socio-economic conditions; health, education, and social issues; land tenure uncertainties; jurisdictional issues and unsettled land claims; government resource revenue sharing; resource benefit sharing; and the duty-to-consult challenges across Canada.

As the landscape is ever-evolving, where do we go from here? Industry must continue to engage and work with communities, generate partnerships, and provide benefits to communities. It is also critical that governments refine duty-to-consult processes and address some key issues, including identifying impacted communities, consultation costs, delegation to proponents, and adequacy.

Efforts to improve crown consultation will lead to increased involvement of aboriginal communities in the decision-making process and will generate more certainty and efficiency for industry. We encourage governments to focus on improving socio-economic conditions for aboriginal communities, because a number of barriers such as poverty, poor housing conditions, and educational and essential skills gaps limit the ability for members of the community to participate in the mineral industry in a more meaningful manner. Improvements in these areas can be achieved through foundational social investments that contribute to improved health and educational outcomes for aboriginal communities, targeted funds for skilled training, and entrepreneurs to assist aboriginal people in securing employment and seizing business-development opportunities.

In addition, we recommend improved government resource revenue-sharing mechanisms through which federal-provincial-territorial governments share a portion of the revenues generated by mining with the impact that aboriginal communities can contribute to enhancing aboriginal participation in the sector.

In conclusion, PDAC is supportive of the government's commitment to renew its relationship with aboriginal people and to promote economic development and job creation. The industry strongly believes that collaborative efforts by all parties—government, industry, and aboriginal communities— will lead to stable, positive business environments for mineral exploration and development, maximize benefits for all parties, and enhance aboriginal participation in the mineral and metals industry.

Thank you, meegwetch, for the opportunity to speak with you today.

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