November 2010

In August 2010, British Columbia became the first province to share royalties collected from specific mining projects with First Nations. It remains to be seen whether B.C.'s new approach to royalty sharing will be a one-off or if it will set the pattern for other B.C. mines and Canadian provinces.

The government of British Columbia announced two separate agreements with First Nations to share a portion of provincial mining royalties derived from the production of mining projects currently under development. The first agreement, with the Stk'emlupsemc of the Secwepemc Nation, pertains to the New Afton Mine near Kamloops. The government announcement indicates the agreement will allocate approximately $30 million, just under one-third of the total provincial royalties anticipated to be collected over the expected 12-year life of the project. The New Afton Mine, a copper-gold project owned by New Gold Inc., is located at the site of a historic open pit mine and involves new underground operations. Construction is underway in anticipation of production commencing in 2012.

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