Corporate Canada insists that partnering with First Nations on new natural resources projects will bring prosperity to Indigenous communities and address the country’s long history of colonialism.
But there is also a simpler and more transactional reason that companies have for years embraced the idea of so-called “economic reconciliation”. When a natural resources project is able to bring on an Indigenous partner, it speeds up approval times and reduces political and regulatory risk.
That’s according to representatives of mining and fossil fuel companies who spoke candidly about the economic benefits of Indigenous partnerships during a recent economic reconciliation conference in Ottawa.
“I think a lot of mining companies would love nations to take equity ownership in their projects, especially early stage ones, because it helps de-risk the project,” said Sharon G. K. Singh, a lawyer and co-head of McMillan LLP’s Indigenous and Environment practices, according to audio obtained by DeSmog from the event.
When asked who benefits from the lower risk in this situation, Singh replied that she didn’t have time to provide a lengthy response, but that “one needs to be clear on what we mean by participation before one can answer for whom does it de-risk for.”
