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Nak'azdli still seeking revenue sharing on Mount Milligan mine

As construction of the $1.3-billion Mount Milligan gold and copper mine gets into full swing, the Nak'azdli First Nation is trying to negotiate an increase in a revenue-sharing offer from the B.C. government for the project.

As construction of the $1.3-billion Mount Milligan gold and copper mine gets into full swing, the Nak'azdli First Nation is trying to negotiate an increase in a revenue-sharing offer from the B.C. government for the project.

The province earlier reached an agreement with the McLeod Lake Indian Band which had been largely supportive of the mine, but the Nak'azdli had fought the province with court action, saying they hadn't been properly consulted.

Although the Nak'azdli continues to have environmental concerns, the First Nation had a change of heart earlier this year and entered into discussion with the province on revenue sharing, backed up with meetings in the community to discuss the province's offer.

Nak'azdli chief Fred Sam, and other representatives of the First Nation, were in Victoria Friday to meet with senior government officials.

"We're having that meeting to see if we can work on the percentage - see what they come back to us with," said Sam by phone.

Sam said they are pleased with employment that some Nak'azdli have already secured at the mine construction site, but are also looking for long-term benefits.

The B.C. Liberal government authorized its provincial negotiators at the end of 2008 to include revenue sharing with First Nations on new mining projects.

The province, however, has stipulated the Nak'azdli would have to drop their law suit.

The revenue-sharing agreements are not insignificant.

The province estimated its revenue-sharing agreement with the McLeod Lake Indian Band would provide $35 million to $40 million during the 15-year life of the mine.

Another revenue sharing agreement was signed with two First Nations in the Kamloops area, expected to provide up to $30 million to the Tk'emlups and Skeetchestn during the 12-year life of the mine.

Nechako Lakes Liberal MLA John Rustad has welcomed the Nak'azdli's decision to work towards a revenue sharing agreement.

"I'm glad they have decided to work with the project; obviously the project is going ahead anyway," said Rustad, whose riding west of Prince George includes the mine project.

He acknowledged there was a sticking point on price, but said he was hopeful there would be benefits not only for the McLeod Lake band but for the Nak'azdli as well.

Thompson Creek Metals' Mount Milligan mine is well under construction. About 60 per cent of a 90-kilometre power line has been completed, and construction crews are already working on the tailings dam, which has reached a height of 30 metres and is holding back water.

A large construction camp has been completed, and the company is about to start pouring concrete foundations for the mine production facilities.

About 350 people are working on the mine site, 145 kilometres northwest of Prince George. At its peak, the construction crew will reach about 700.

When the mine starts production in 2013, it will employ 350 full-time workers.

The mine, which is providing the first new industrial jobs in north-central B.C. in more than a decade, is expected to operate for 22 years or more, longer than the original 15-year estimate, according to Thompson Creek Metals.