Monday, March 31, 2008

Advice to Exploration Managers

We can expect some spirited discussions as Chiefs debate the future of
bilateral discussions with Ontario (the Northern Table) and how to
respond to the jailing of the KI 6.

What all need to recognize is that the KI struggle help clarify the
legal obligations of the Crown at the early exploration stage. Not that
they are particularly clear.

What is crystal clear is that Ontario's Mining legislation and free
entry have been dealt a fatal blow and there is no simple regulatory
band aid that the province can apply to reconcile the complete failure
of the Act when it comes to First Nation consultation, accommodation
and consent.

The Mining Act is simply unconstitutional.

So far, the bureaucrats have relied on the willingness of companies to
step up to the plate and negotiate deals at the early exploration
stage.

The companies have been bamboozled into carrying water for the Crown
who have a non-delegable( say that while chewing gum) duty to consult.

But what happens when First Nations simply say no to the deal.
"Were not ready."
"We need to plan for our future." Or "Not here. These are culturally
and ecologically sensitive lands where mining doesn't make sense."
Or "Not until our land claim is resolved with Canada and Ontario."

All very reasonable positions and common positions.

If I were an investor or an exploration manager calculating the
political risks of exploration in the Far North I'd simply say not now,
too risky.

Mongolia is starting to look good.

So you exploration managers out there, maybe up in the CVRD Inco tower,
or maybe all you folks who are pouring money into the McFaulds Lake
area play, read over the decisions in the KI/ Platinex case and tell
me: do you really want to spend that money in Ontario?

I don't see Noront announcing any deals with the First Nations. Maybe
they are caught in swamp of overlapping First Nation territories and
unresolved land claims.

Maybe the folks in Webequie weren't impressed with a few free Ipods.

Isn't the law firm that represented KI negotiating these deals at
mcFaulds ?I hear they are in league with Greenpeace. Reminds me of a
joke.
What's the difference between an aboriginal law firm and terrorists?
You can negotiate with terrorists.

Tell me exploration managers: do the MNDM bureaucrats inspire a lot of
confidence? Find out the names of the bright lights that negotiated
with KI. Back to "getting to yes" for them. Hope they are not on your
"file".