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NORTHWEST TERRITORIES/NUNAVUT
The NWT and Nunavut Chamber of Mines and the Akaitcho Dene First Nations signed a memorandum of understanding on July 8, in what both groups are hoping will mark a watershed in the often contentious relationship between mining companies and the First Nations owners of NWT land.

Akaitcho Dene First Nations representatives and NWT and Nunavut Chamber of Mines executive director Tom Hoefer signed a memorandum of understanding on July 8, the first MOU the chamber has formed with a First Nations group. From left, Ndilo Chief Ted Tsetta of Yellowknives Dene First Nation, Dettah Chief Edward Sangris of Yellowknives Dene First Nation, Hoefer, Chief Antoine Michel of Lutsel K'e Dene First Nation, and Chief Louis Balsillie of Fort Resolution Dene First Nation. - photo courtesy of the NWT and Nunavut Chamber of Mines

The pact's aim is to promote responsible mineral exploration and development in the Akaitcho territory, while allaying increasing industry frustration over unclear Akaitcho region exploration rules, according to Tom Hoefer, the chamber's executive director.

"Investors get gun shy," Hoefer said.

"They say, 'We just don't even know what the rules are anymore.'"

As a result, investment in the Akaitcho region has been dropping, Hoefer said, while Nunavut and the Yukon are booming, hitting record levels of exploration and mining.

"Their exploration is rocketing forward and the NWT is dropping," he said.

The Akaitcho government currently requires companies to sign an exploration agreement with a number of requirements that are outside the law, Hoefer said.

Akaitcho adviser Stephen Ellis says the existing agreement, which numerous companies have signed over the past three years, is not a legal requirement but "certainly is in (the exploration companies') best business interests."

"The Akaitcho have been very firm with protecting their interests," Ellis said. "There is general dissatisfaction with the Mackenzie Valley Resource Management Act," he added, referring to the federal regulations exploration companies must follow by law. "In order to ensure (Akaitcho) interests are protected, we want assurance from companies themselves.

"Numerous companies have been signing (the Akaitcho exploration agreement) and had fairly smooth operations. Those refusing to sign have had difficult relations with First Nations."

The main objective of the MOU between the Akaitcho and the chamber is to form a committee that will strike a new mutually-satisfactory exploration agreement that the chamber will endorse to its members.

"This is a really positive step and the industry should be commended," Ellis said, noting it was the Akaitcho that initiated the idea due to a "fair amount of resource development that has gone on in their territories without due consideration of First Nations' interests.

"Finally the industry has agreed they need to sit down with the First Nations," Ellis said. "They realize that they are operating in First Nations' territories and informed consent by dealing directly with First Nations is really a positive sign. The Akaitcho Dene are quite heartened by that."

A deadline of January 2012 has been set to have the new exploration agreement template negotiated by the Akaitcho-chamber committee.

This is the first memorandum of understanding the chamber has formed with a First Nations group, Hoefer said.

"We are very hopeful that this can make a difference."

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