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TTHENAAGO/NAHANNI BUTTE - Canadian Zinc and the Nahanni Butte Dene Band have reached a memorandum of understanding about the Prairie Creek Mine.

Nahanni Butte, the closest community to Canadian Zinc's Prairie Creek Mine (pictured) has signed a memorandum of understanding with Canadian Zinc. - NNSL file photo

The band council approved the memorandum of understanding or MOU during the last week of October. This is the third MOU that Canadian Zinc has signed this year.

In July, an understanding was signed with Parks Canada and more recently one was made with the Liidlii Kue First Nation on Oct. 16.

The MOUs with the two bands are similar but not identical, said John Kearney, the chairman of Canadian Zinc.

While the memorandum with Liidlii Kue First Nation focuses on business opportunities the understanding with the Nahanii Butte Dene Band has a greater emphasis on communication, Kearney said.

"One of our primary objectives in MOUs is to establish lines of communication," he said.

Canadian Zinc wants to hear about aspirations, concerns and solutions communities have. The company feels discussions, as opposed to regulatory or legal processes, are a better way to deal with any issues that may arise, he said.

As part of the understanding the band has agreed to maintain close communication links with Canadian Zinc as well as participate in good faith in current and pending environmental assessments and regulatory processes.

It is also designed to show the benefits the community will receive from the mine project, said Kearney. In the document, Canadian Zinc has agreed to apply best efforts to employ band members and assist the community so it benefits from business opportunities related to the mine.

In return, Nahanni Butte has agreed not to oppose in principle mining operations at Prairie Creek.

Agreement between the two parties isn't legally binding and it doesn't extinguish any rights, said Kearney. In time, Canadian Zinc would like to sign Impact Benefits Agreements with bands and the memorandums provide a basis for subsequent negotiations, he said.

"We have to take it in stages," said Kearney.

Nahanni Butte and Fort Simpson aren't the only communities Canadian Zinc is in communication with.

The company has had discussions with Wrigley and other communities including Fort Liard, said Kearney. Canadian Zinc is also interested in having an overall discussion with Dehcho First Nations.

In a press release, the Nahanni Butte Dene Band said the MOU is consistent with the band's current approach to the proposed mining operation. The approach includes carrying out traditional knowledge assessments of the mine operation, engaging fully in mine-related environmental assessments and regulatory processes and planning economic development before entering negotiations for an impact benefit agreement.

Chief Fred Tesou didn't respond to calls asking for further comment by press time.