Two Indigenous communities in central B.C. will receive shares of provincial mineral tax revenue collected from the planned Blackwater Gold Mine project south of Vanderhoof.
Under benefit agreements reached with the provincial government, the Lhoosk'uz Dené Nation and Ulkatcho First Nation could reap as much as $217 million over the life of the mine, with the revenue shared equally between the two.
"First Nations should share in the wealth from natural resource projects in their territory, and agreements like this one create a true partnership for economic development in the territory," Indigenous Relations and Reconciliation Minister Scott Fraser said in a news release.
"When Indigenous communities are partners in the economy, we can build a stronger B.C. that includes everyone, creating opportunities for Indigenous peoples, B.C. businesses, communities and families everywhere."
The project, owned by New Gold Inc., will be an open-pit gold and silver mine on 4,400 hectares, about 110 kilometres southwest of Vanderhoof. New Gold expects the mine to operate for 17 years and total mineral tax revenue over that time is currently estimated at $722 million.
In 2019, it was issued federal and provincial environmental assessment certificates but must still go through the mine permitting phase. When it will enter that process remains unknown, New Gold community relations advisor Val Erickson said in an email to the Citizen.
"Before entering into the mine permitting phase, New Gold will continue to evaluate project sizing and processing options for Blackwater with the objective of unlocking additional value for the project from a financing and strategic perspective," Erickson said.
As it stands, the claim has been expected to yield about 60,000 tonnes of ore per day with a net annual production of 22 million tonnes per year during the 17 years the mine is expected to last.
Constructing the mine is to take about two years and cost $129 million. That phase is expected to create 2,436 person years of direct employment and once operating, it's expected to support 396 full-time jobs per year and contribute $258 million to B.C.'s GDP annually.
The agreements with the two First Nations also commit to developing a process for engagement on future permitting associated with the mine. The agreement also commits to collaborative work to develop a process for engagement on future permitting associated with the mine.
Lhoosk’uz Dené Nation has 243 members and is located 173 kilometres west of Quesnel and the Ulkatcho First Nation has 1,062 members and is located 100 kilometres east of Bella Coola. Both are members of the Southern Dakelh Nation Alliance and the Carrier Chilcotin Tribal Council.
