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Akaitcho leaders say BHP offering a raw deal

Richard Gleeson
Northern News Services

Yellowknife (Oct 02/00) - Akaitcho territory leaders hope to get something they believe is rightfully theirs -- a share of the profits flowing from the Ekati mine.

Expansion facts

- BHP is proposing to develop three new kimberlite pipes, named Beartooth, Sable and Pidgeon

- if approved, the development of the pipes would extend the life of the mine by three years, to 2014

- the Mackenzie Valley Environmental Impact Review Board will be making a decision on BHP's application by Christmas

- the board will make one of four recommendations: that the expansion proceed, that the expansion to proceed, that it can proceed with conditions, that it be studied further by a independent panel

- the minister of the Department of Indian Affairs and Northern Development makes the final decision




"We want some royalties coming to us because you guys are making millions on our land," said Lutsel k'e band councillor Antoine Michel.

Michel was one of five Lutsel K'e band members who travelled to Yellowknife last Tuesday to speak to the proposed expansion of BHP Ekati at a public meeting organized by the Mackenzie Valley Environmental Impact Review Board.

The board is reviewing reviewing an application by BHP to mine three new kimberlite pipes.

Akaitcho leaders from Dettah and Ndilo also called on BHP to negotiate a new impact benefits agreement.

Under a 1996 impact benefits agreement, the four Akaitcho communities -- Ndilo, Dettah, Fort Resolution and Lutsel K'e -- receive $1 million each year to help deal with the social and environmental impacts of the mine.

"That's $250,000 for each community every year," said Michel. "That's peanuts. That's nothing compared to what they make."

BHP vice-president of operations Jim Excell said IBAs were never meant to provide aboriginal groups with a share of mining profits.

"The story gets twisted around, that it is a royalty of some kind. It isn't," Excell said. "The dollars passed on are to address potential impacts, not (for) compensation."

Asked if he would be willing to negotiate a new IBA for the three new pipes, Excell would say only, "we've got a disagreement and we've got to sort it out."

The IBA runs for the life of the mine and applies to the claim block. The three new pipes are on the same claim block and BHP contends no new agreement is required.

Dettah chief Richard Edjericon said the IBA was the result of a 60-day deadline the federal government gave Akaitcho leaders to come to an agreement with BHP.

"To me it was like they were putting a gun to my head 'whether you like it or not, there will be an agreement,'" said Edjericon.

He noted the $1 million amounts to less than half a per cent of BHP's annual revenue from the mine.