Kitchenuhmaykoosib Inninuwug First Nation wins battle to protect traditional lands against mining
Ontario press release
Ontario Resolves Litigation Dispute Over Big Trout Lake Property
McGuinty Government Reaches Agreement That Balances Company And Community Interests
December 14, 2009
Ontario has reached an agreement to settle litigation with Platinex Inc. that will provide greater certainty to the company and allow the Province to continue to build its relationship with Kitchenuhmaykoosib Inninuwug (KI) a First Nations community.
The Province of Ontario and Platinex Inc. have entered into an agreement to resolve the company’s litigation against Ontario and the Kitchenuhmaykoosib Inninuwug (KI) First Nation over the company’s Big Trout Lake Property. As part of the settlement, Platinex will drop its lawsuits against the Crown and KI, and surrender all its mining claims and leases at Big Trout Lake. In return Platinex will receive $5 million and a potential future royalty interest. The government will withdraw those lands from staking and mineral exploration.
This settlement will assist Platinex in moving forward with the exploration and development of its other mining properties in Ontario, and responds to the community’s past concerns.
QUOTES
“This is a unique situation, and I am pleased that we were able to reach a fair and reasonable negotiated settlement that will provide greater certainty to Platinex while allowing our government to continue working with KI to strengthen our relationship and to pursue future opportunities.”
- Michael Gravelle, Minister of Northern Development, Mines and Forestry.
QUICK FACTS
- Ontario will pay Platinex $5 million in return for dropping lawsuits against the Crown and KI. The company will also surrender its mining claims and leases near Big Trout Lake.
- Should the province, at its discretion, issue new mineral tenure on the lands in the next 25 years and a mine be developed, Platinex would be entitled to receive a royalty of 2.5 per cent of the mine revenues paid by the mine operator if a mine is developed. This kind of royalty is common industry practice.
- Ontario’s new Mining Act increases clarity around consultation requirements and will introduce a new vehicle for addressing disputes relating to Aboriginal issues.
- Ontario is the first Canadian jurisdiction to build a dispute resolution process for Aboriginal-related mining issues into its mining legislation.
Anne-Marie Flanagan, Minister’s Office, 416-327-0655
Christine Kaszycki, Assistant Deputy Minister, 705-670-5877
ontario.ca/north-news
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Platinex, Ontario, First Nation settle dispute
By: Liezel Hill -December 14, 2009
TORONTO (miningweekly.com) – A long-running dispute between a Canadian exploration company and local indigenous people has finally been resolved, with junior Platinex agreeing to walk away from its project in return for some cash, payment of costs incurred during the dispute, and a potential royalty if the mineral resource is developed in the future.
Platinex has sued both the government of Ontario and the Kitchenuhmaykoosib Inninuwug (KI) First Nation because it has not been able to access its Big Trout Lake property, which the KI claim as traditional territory.
However, Platinex will now relinquish its claims and drop lawsuits against Ontario and the First Nations in exchange for C$5-million plus the expenses incurred during the mediation process with the province, as well as a 2,5% net smelter royalty on the property, should a mine be built on the project in the future.
The government said separately that it will withdraw the lands from staking and mineral exploration.
Last year, six members of the KI received six-month sentences for failing to obey a court order to stay away from land where explorer Platinex had been granted rights, but which the community claimed as traditional aboriginal territory.
Platinex then announced in May 2008 it would claim C$70-million in damages, plus interest and costs, from the provincial government of Ontario, because the government awarded it concessions at Big Trout Lake, about 600 km north of Thunder Bay, but the company could not access the property because of the KI, which has been trying for years to prevent Platinex from drilling for platinum on the land.
The government was at fault because it did not fulfil its responsibilities to consult the KI before awarding the concessions, Platinex said at the time.
However, the firm has now agreed to cut its losses.
“It became apparent that the company was not going to be able to access the property,” Platinex CEO Jim Trusler said in a statement on Sunday.
“We can now focus on our other platinum-group elements and gold properties and the money will enable Platinex to execute its business plan.”
"This is a unique situation, and I am pleased that we were able to reach a fair and reasonable negotiated settlement that will provide greater certainty to Platinex while allowing our government to continue working with KI to strengthen our relationship and to pursue future opportunities,” Ontario Minister of Northern Development, Mines and Forestry Michael Gravelle said.
When the arrests made headlines last year, the KI-Platinex dispute became a rallying point for the fact that Ontario's century-old Mining Act did not address the need for mining and exploration companies to consult with First Nations before staking claims and beginning exploration work.
The province has since drawn up a new Mining Act , which increases clarity around consultation requirements and will introduce a new vehicle for addressing disputes relating to Aboriginal issues.
The Act includes strict new requirements for exploration companies to consult with First Nation communities, as well as plans to limit conflicts between mineral exploration companies and private landholders who do not hold the mineral rights on their properties.
The new legislation makes the province the first Canadian jurisdiction to build a dispute resolution process for Aboriginal-related mining issues into its mining legislation.