Kasabonika trap lines source of diamonds: DeBeers exploring region, partnership creates jobs for natives.

Northern Ontario Business 

Preliminary exploration by De Beers in the Kasabonika region, approximately 400 kilometres west of Attawapiskat, has sparked partnerships with the local First Nation's community.

Kasabonika First Nation's people are joining with the international diamond company in the search for kimberlites on their traditional lands 100 kilometres north of Pickle Lake.

Ministry of Northern Development and Mines has indicated "there is an indication there is high potential of kimberilte in the area," says Eno H. Anderson, deputy chief responsible for resource and economic development for Kasabonika First Nation.

An estimated 40 sites have been staked and drilling is expected to begin next winter, Anderson says.

When De Beers first took an interest in the area the First Nations community developed a business plan ensuring economic development and education for their people. During the exploration stages the community has provided accommodations, food, supplies, transportation and labour toward the project.

"We have become suppliers," Anderson adds. "We are capturing a lot of (business opportunities)."

Early into the exploration development, Anderson and his colleagues realized it was difficult to access chief and council for land development. So they initiated a planning board consisting of all the head trappers.

"(The planning board) provides us with recommendations (for the land), but we still ask the people (for direction). We get their support."

Exploration is being conducted in five of the nine trap lines in the area. De Beers is financially reimbursing the trappers whose lines will be affected by the research. The money is being channeled into a youth harvesters program where young Aboriginals from the nine trap-line areas are being trained in diamond exploration.

"We share the compensation money around," Anderson says. "Even the trap line (people) who are not affected (by exploration), they still get the benefits (from the young harvestor's program) because in the future there might different trap lines being explored and then we expect (the people who own those trap lines) to (share the wealth)."

Young Natives are being trained in exploration research, which is an indication the program has been successful, he says.

"They develop the land skills," Anderson explains. "They can work for exploration companies after that."

In fact, there are three men from the community who are now employed with De Beers.

Distributing the wealth and knowledge is an integral component in the progression of the community. One needs to look at what is best for the community in the long term, he says.

"If there is activity in the area, do what you can to capture the resources."

Working with funding agencies has helped the Kasabonika First Nation grow thus far.

"They are so supportive of our initiatives."

In a couple of years the partners should know whether the traditional land hosts diamonds, and if it does, both parties will sit and discuss the impact benefit agreements.

That is when they will need a person like Brian Davey. Davey consults with First Nation community-based organizations and corporate Canada for joint ventures. Raising capital for business initiatives is another service First Nation Equity provides.

Typically Davey, of First Nation Equity, seeks out "pension funds, venture capital firms and Canadian and American banks" for funding.

Although he cannot disclose names of ongoing negotiating partners, he is working on joint ventures with private companies and First Nation's organizations in the northwest.

"We are working to bring (the First Nations) into a consortium with three other public utilities (Sudbury, Cochrane and Sault Ste. Marie) to acquire a telephone company," Davey says.

Another joint venture between a major diamond drilling company and northwestern First Nations is also continuing.

"First Nations are interested in partnering with (a mining company) to take advantage of the drilling opportunities that are happening in northwestern Ontario," Davey says.

This kind of collaboration has many opportunities, Davey explains. Non-Aboriginal companies are finding it beneficial to partner with First Nation communities.

"You can use First Nation's influence to take advantage of contracts from Placer Dome, De Beers, and from large resource developments in Ontario," Davey says. "(Companies) try to get the edge by partnering up with First Nations, particularly the resource industry."

In fact some companies are interested in setting up hydro power generators and wind energy stations in Northern Ontario.

"Large engineering and construction finns are seeking partnerships with First Nations that are near hydro sites."

Possible ventures are timely since Ontario will have a shortfall of power that will need to be met soon, Davey says.

First Nations people also have major influence in developing transmission lines that connect remote sites in Northern Ontario.

A myriad of opportunities await companies and First Nations communities in years to come, Davey says and "that is what is keeping me in business."

Davey, who has an office location in Toronto, has decided to open another office in Thunder Bay.

"There is a fair amount of action in the northwest," Davey says.

Before going into business for himself, Davey was the deputy grand chief for Nishnawbe-Aski Nation (NAN) from 1991 to 1997. NAN represents 50 First Nation communities. In 1997, he became chief executive officer of a non-profit organization called the Economic Renewal Secretariat, which facilitates partnerships.

"Thereafter I became my own company," Davey says.

Coupled with his previous experience, and now two-and-a-half years in business, Davey has witnessed both sides come to the table with trust issues.

"But once they see the benefits of working together and educating each other on the value system of the industry and also the value system of where First Nations come from, the trust issue becomes a non-issue."