Case Study #1: Northwest Territories Diamond Mines
Lutsel K’e Dene (LKD) First Nation is located on the east arm of the Great Slave Lake, Northwest Territories, 200 km from Yellowknife.1 Of the 700 members, about 400 live in the community. There is a shortage of houses and the cost of living is high. The community is isolated and there are few good jobs to be had. The education system is considered poor.
Three other Dene peoples also live in the lands around Great Slave Lake, known as Akaitcho territory: Dettah, Ndilo, and Deninu Kue. They are known as the Akaitcho Treaty 8 First Nations. None of them has a settled land claim. (See map.2) They do have an Interim Measures AgreementAgreement: any explicit, signed document that is negotiated and includes mutual concessions or limitations placed on both sides. Examples are Negotiation AgreementsNegotiation Agreement: an early agreement in the mining process, likely to occur in the Exploration StageExploration Stage: the whole range of activity from searching for and developing mineralMineral: A naturally-occurring, homogeneous substance that has a definite chemical composition and (usually) a crystalline structure. deposits., which would outline the basis of the relationship between the Aboriginal group and the mining company and how the relationship will evolve if the mine moves forward. , Exploration Cooperation Benefit Agreements, Socio-Economic Participation AgreementsSocio-Economic Participation Agreements (SEPAs): private, confidential contracts between Aboriginal communities and resource developers, like mining companies. SEPAs specify how the communities that will be affected by the development of a resource will also benefit from that development. Many SEPAs include terms about the employment and training of Aboriginal people, compensationCompensation: something (such as money) given or received as payment or reparation (as for a service or loss or injury). payments, protection of the environment, and profit-sharing. SEPAs are often called Impact Benefits Agreements (IBAs) and Cooperation Benefit Agreements (CBAs), and other names. The Aboriginal Mining Guide calls them all SEPAs.., however. That gives them some influence in who receives land-use permitsPermits: legally-binding permissions that govern activities that may occur during exploration or mine operation, like quarrying, use or impact on water, building of transmission lines, etc. and water licensesLicenses: documents that must be obtained in order to apply for or carry out certain activities. in the Northwest Territories.
LKD has had intense experience with three diamond mines - Ekati, Diavik, and Snap Lake. During the years 1996 through 2007, LKD and its neighbour First Nations negotiated with three different mining companies.
Ekati, owned by BHP Billiton, is Canada’s first diamond mine. Ekati produces about 3% of the world’s rough diamonds by weight, and 6% by value. Mining began at Ekati in October 1998. The diamonds are mined underground and from an open pit. Ekati is expected to close in 2023.
Diavik Diamond Mine, owned by Rio Tinto, is located 100 km southeast of Ekati. Diavik’s Environmental AssessmentEnvironmental Assessment: a written report, compiled prior to a production decision that examines the effects that proposed mining activities will have on the natural surroundings. began in 1999 and mining began in January 2003. Diavik is expected to close in 2020.
Snap Lake is located south of both Ekati and Diavik. It is the first diamond mine in Canada that is wholly underground. De Beers bought the mine in 2000 and received permits to build and operate the mine in 2004. Mining began there in early 2008. It is expected to close in 2029.
Mining companies have been making more and more requests to work on LKD First Nation traditional territory. Junior companiesJunior Company: a mining company that has no mining operations. It must rely almost entirely on the capitalCapital: cash, property, equipment, services, and contracts or leases. markets to finance its exploration activities. have also been actively exploring the area for a long time. They often apply for new exploration permits. The community frequently has opposed the applications.