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Aboriginal Mining Guide
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Table of Contents
INTRODUCTION
THE CONTENTS IN SUMMARY
A SHORT HISTORY OF SEPAs
A SHORT HISTORY OF JOINT VENTURES
CASE STUDIES
Case Study #1: Northwest Territories Diamond Mines
THE NEGOTIATION
THE DEAL
THE RESULTS
SUMMARY OF BENEFITS TO-DATE
POSTSCRIPT
ENDNOTES
Case Study #2: The Raglan Mine
THE NEGOTIATION
THE DEAL
RESULTS
SUMMARY OF BENEFITS TO DATE
CHALLENGES
POSTSCRIPT
ENDNOTES
Case Study #3: Brewery Creek
THE NEGOTIATION
THE DEALMAKER
THE DEAL
THE RESULTS
SUMMARY OF BENEFITS TO DATE
ENDNOTES
Case Study #4: Voisey’s Bay Mine
THE NEGOTIATION
THE DEAL
THE RESULTS
SUMMARY OF BENEFITS TO DATE
ENDNOTES
Case Study #5: Keno Hill Silver District
THE NEGOTIATION
THE DEAL
RESULTS
SUMMARY OF BENEFITS TO DATE
POSTSCRIPT
ENDNOTES
Module 1 Putting Communities First
THE CAPITAL PERSPECTIVE
THE BIG BUSINESS PERSPECTIVE
THE SMALL BUSINESS PERSPECTIVE
THE INDUSTRIAL RECRUITMENT PERSPECTIVE
THE COMMUNITY ECONOMIC DEVELOPMENT (CED) PERSPECTIVE
4 STRATEGIC ISSUES
STRATEGIC ISSUE #1: VISION
STRATEGIC ISSUE #2: BENEFITS
STRATEGIC ISSUE #3: USE OF PROFITS
STRATEGIC ISSUE #4: PARTNERS
Module 2 Mining Basics
THE FIVE STAGES OF MINING
STAGE 1: EXPLORATION
STAGE 2: FEASIBILITY AND PLANNING
STAGE 3: CONSTRUCTION
STAGE 4: MINE OPERATION
STAGE 5: MINE CLOSURE AND RECLAMATION
MINING IMPACTS
ENDNOTES
Module 3 Getting the Most Out of Leverage
POLITICAL ACTION, THE COURTS, AND NEGOTIATION
7 IMPORTANT COURT DECISIONS
THE ART OF NEGOTIATING AGREEMENTS THAT WORK
ENDNOTES
Module 4 Doing Your Homework
HOMEWORK #1: DETERMINE YOUR LONG TERM INTERESTS
HOMEWORK #2: WHAT BENEFITS DO YOU BRING TO THE NEGOTIATING TABLE
HOMEWORK #3: BENEFITS TO GAIN FROM A DEAL
HOMEWORK #4: ASSESS THE MINING COMPANY
HOMEWORK #5: DESIGN A STRATEGY
HOMEWORK #6: ASSEMBLE A NEGOTIATING TEAM
COVERING THE COSTS OF NEGOTIATION
OPENING THE NEGOTIATIONS
ESTABLISH THE AGENDA
ENDNOTES
Module 5 Negotiating Benefits Agreements
1. INTRODUCTORY PROVISIONS
2. EMPLOYMENT AND TRAINING
3. ECONOMIC DEVELOPMENT OPPORTUNITIES
4. SOCIAL, CULTURAL AND COMMUNITY SUPPORT
5. FINANCIAL PROVISIONS AND EQUITY PARTICIPATION
6. ENVIRONMENTAL PROTECTION AND CULTURAL RESOURCES
7. OTHER SUBSTANTIVE AND PROCEDURAL PROVISIONS
ENDNOTES
Module 6 Negotiating Joint Ventures
WHAT IS A JOINT VENTURE?
SELECTING VENTURES & PARTNERS – THE THEORY
SELECTING VENTURES & PARTNERS – REAL LIFE
NEGOTIATING THE HEADS OF AGREEMENT
1. THE RECITALS
2. INCORPORATION AND OWNERSHIP STRUCTURE
3. SCOPE OF BUSINESS
4. COMMENCEMENT DATE
5. DIRECTORS AND OFFICERS
6. CAPITAL
7. EQUIPMENT
8. ALLOCATION OF PROFITS
9. MANAGEMENT & STAFFING
10. FINANCIAL REPORTING
11. SHAREHOLDER AGREEMENT
12. PURPOSE OF THE HEADS OF AGREEMENT
PROTECTIVE COVENANTS
BEYOND THE HEADS OF AGREEMENT
ISSUES IN JOINT VENTURE MANAGEMENT
JOINT VENTURES – ONE STRATEGY AMONG MANY
Module 7 Key Lessons
1. BUILD RELATIONSHIPS
2. KNOW YOUR LEVERAGE POINTS AND YOUR RIGHTS
3. WORK OUT YOUR VISION AND BE REALISTIC IN YOUR EXPECTATIONS
4. INVOLVE THE COMMUNITY IN DECISION-MAKING
5. BE A FULL PARTICIPANT IN AN AGREEMENT’S IMPLEMENTATION AS WELL AS ITS NEGOTIATION
6. DO NOT FINALIZE A SEPA NEGOTIATING STRATEGY “ON SPEC”
7. THE MINING SECTOR IS GETTING HARDER TO PREDICT, NOT EASIER
ENDNOTES
Appendices
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Aboriginal Mining Guide
Table of Contents
INTRODUCTION
THE CONTENTS IN SUMMARY
A SHORT HISTORY OF SEPAs
A SHORT HISTORY OF JOINT VENTURES
CASE STUDIES
Case Study #1: Northwest Territories Diamond Mines
THE NEGOTIATION
THE DEAL
THE RESULTS
SUMMARY OF BENEFITS TO-DATE
POSTSCRIPT
ENDNOTES
Case Study #2: The Raglan Mine
THE NEGOTIATION
THE DEAL
RESULTS
SUMMARY OF BENEFITS TO DATE
CHALLENGES
POSTSCRIPT
ENDNOTES
Case Study #3: Brewery Creek
THE NEGOTIATION
THE DEALMAKER
THE DEAL
THE RESULTS
SUMMARY OF BENEFITS TO DATE
ENDNOTES
Case Study #4: Voisey’s Bay Mine
THE NEGOTIATION
THE DEAL
THE RESULTS
SUMMARY OF BENEFITS TO DATE
ENDNOTES
Case Study #5: Keno Hill Silver District
THE NEGOTIATION
THE DEAL
RESULTS
SUMMARY OF BENEFITS TO DATE
POSTSCRIPT
ENDNOTES
Module 1 Putting Communities First
THE CAPITAL PERSPECTIVE
THE BIG BUSINESS PERSPECTIVE
THE SMALL BUSINESS PERSPECTIVE
THE INDUSTRIAL RECRUITMENT PERSPECTIVE
THE COMMUNITY ECONOMIC DEVELOPMENT (CED) PERSPECTIVE
4 STRATEGIC ISSUES
STRATEGIC ISSUE #1: VISION
STRATEGIC ISSUE #2: BENEFITS
STRATEGIC ISSUE #3: USE OF PROFITS
STRATEGIC ISSUE #4: PARTNERS
Module 2 Mining Basics
THE FIVE STAGES OF MINING
STAGE 1: EXPLORATION
STAGE 2: FEASIBILITY AND PLANNING
STAGE 3: CONSTRUCTION
STAGE 4: MINE OPERATION
STAGE 5: MINE CLOSURE AND RECLAMATION
MINING IMPACTS
ENDNOTES
Module 3 Getting the Most Out of Leverage
POLITICAL ACTION, THE COURTS, AND NEGOTIATION
7 IMPORTANT COURT DECISIONS
THE ART OF NEGOTIATING AGREEMENTS THAT WORK
ENDNOTES
Module 4 Doing Your Homework
HOMEWORK #1: DETERMINE YOUR LONG TERM INTERESTS
HOMEWORK #2: WHAT BENEFITS DO YOU BRING TO THE NEGOTIATING TABLE
HOMEWORK #3: BENEFITS TO GAIN FROM A DEAL
HOMEWORK #4: ASSESS THE MINING COMPANY
HOMEWORK #5: DESIGN A STRATEGY
HOMEWORK #6: ASSEMBLE A NEGOTIATING TEAM
COVERING THE COSTS OF NEGOTIATION
OPENING THE NEGOTIATIONS
ESTABLISH THE AGENDA
ENDNOTES
Module 5 Negotiating Benefits Agreements
1. INTRODUCTORY PROVISIONS
2. EMPLOYMENT AND TRAINING
3. ECONOMIC DEVELOPMENT OPPORTUNITIES
4. SOCIAL, CULTURAL AND COMMUNITY SUPPORT
5. FINANCIAL PROVISIONS AND EQUITY PARTICIPATION
6. ENVIRONMENTAL PROTECTION AND CULTURAL RESOURCES
7. OTHER SUBSTANTIVE AND PROCEDURAL PROVISIONS
ENDNOTES
Module 6 Negotiating Joint Ventures
WHAT IS A JOINT VENTURE?
SELECTING VENTURES & PARTNERS – THE THEORY
SELECTING VENTURES & PARTNERS – REAL LIFE
NEGOTIATING THE HEADS OF AGREEMENT
1. THE RECITALS
2. INCORPORATION AND OWNERSHIP STRUCTURE
3. SCOPE OF BUSINESS
4. COMMENCEMENT DATE
5. DIRECTORS AND OFFICERS
6. CAPITAL
7. EQUIPMENT
8. ALLOCATION OF PROFITS
9. MANAGEMENT & STAFFING
10. FINANCIAL REPORTING
11. SHAREHOLDER AGREEMENT
12. PURPOSE OF THE HEADS OF AGREEMENT
PROTECTIVE COVENANTS
BEYOND THE HEADS OF AGREEMENT
ISSUES IN JOINT VENTURE MANAGEMENT
JOINT VENTURES – ONE STRATEGY AMONG MANY
Module 7 Key Lessons
1. BUILD RELATIONSHIPS
2. KNOW YOUR LEVERAGE POINTS AND YOUR RIGHTS
3. WORK OUT YOUR VISION AND BE REALISTIC IN YOUR EXPECTATIONS
4. INVOLVE THE COMMUNITY IN DECISION-MAKING
5. BE A FULL PARTICIPANT IN AN AGREEMENT’S IMPLEMENTATION AS WELL AS ITS NEGOTIATION
6. DO NOT FINALIZE A SEPA NEGOTIATING STRATEGY “ON SPEC”
7. THE MINING SECTOR IS GETTING HARDER TO PREDICT, NOT EASIER
ENDNOTES
Appendices
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