B.C. First Nation can veto proposed coal mine as part of unique deal with developer

A coal company and a British Columbia First Nation have struck a rare deal to give the community the power to veto a proposed mining project, which could set a precedent for how natural resources projects are developed in Canada.

NWP Coal Canada and the Yaq̓it ʔa·knuqⱡi'it (YQT), also known as the Tobacco Plains Indian Band, describe the agreement as one of a kind and say it will give the First Nation the power to act as a "regulator and reviewer" of the company's proposed $400-million Crown Mountain coal mine near Elkford, in the southeast part of the province.

The mine would produce coking coal, which is predominantly used for making steel. The project was first proposed in 2010, and construction could begin in 2025. Federal and provincial regulators are currently reviewing the possible environmental impacts of the project.

For the mine to proceed, the project will not only need federal and provincial approval, but it will now require the YQT's permission.

"For too long, Indigenous nations have not been brought to the table in decision-making directly affecting our rights and interests," YQT Chief Heidi Gravelle said in a statement.

"We look forward to working with NWP and the regulators as we exercise our full seat at the table as a decision-maker in our own territories."

Natural resources companies are required to consult Indigenous communities about large-scale development projects, but this deal could be ground-breaking as it gives the local community veto power to completely reject the proposal.

"Industry often acts as if Indigenous peoples having a veto is terrifying, and what we think is if they are the ancestral title holders, if they are the people with the most rights in the area, we should be treating them like a government," said Dave Baines, director of project development with NWP Coal Canada.

"Yes, it's scary, but we're brave enough to say we think we can earn your 'yes,' and we're going to work with you to get that 'yes.'"

The relationship between industry and Indigenous communities has evolved in recent decades. Companies often strike benefit agreements that can provide jobs, training, contracts and housing to a community, among other measures.

Baines, who has previously worked in the oilpatch, described in an interview with CBC News how those benefit agreements are similar to buying a First Nation's support, since compensation is given only if the First Nation provides its backing.

He said companies are basically asking the community to "bury their concerns."

Baines described how Indigenous consultation in the past was usually summarized in the last chapter of a regulatory application about a new project and would say "we talked to them."

The agreement with YQT is different, he said, since "we're inviting them to the table and saying we want you at that table, we want your input, we want you to say yes or no."