First Nation mulls further action after Saskatchewan approves diamond mine

A Saskatchewan First Nation says it is considering its options after the provincial government granted environmental approval for a proposed $1.4-billion diamond mine in the adjacent Fort a la Corne forest east of Prince Albert.

Saskatchewan’s environment minister, meanwhile, says he is confident the government did its due diligence during the environmental approval for Star Diamond Corp.’s proposal — the longest such process in provincial history.

“We believe that duty to consult has been fulfilled. Doesn’t mean that everybody’s going to be happy with the outcome, but we’ve followed the process. It’s been a very extensive and comprehensive process,” Environment Minister Dustin Duncan said.

Four years after receiving Star Diamond’s final environmental impact statement, the provincial government on Thursday removed the largest hurdle facing the Saskatoon-based company by issuing its approval.

Hours later, James Smith Cree Nation issued a statement condemning the province’s consultation efforts and the expected impacts of the project, saying “there will be no mine until our peoples’ interests are satisfied.”

“Shoving this mine down our throat will not work,” James Smith Cree Nation Chief Wally Burns said in a statement.

A request to interview Burns was declined.

Winston McLean, a consultant hired to speak for the First Nation, said “several” options are being reviewed. He declined to elaborate on what those options are.

Asked about the First Nation’s concerns, Duncan said he is confident the government met its policy and legal obligations by making the environmental approval contingent on multiple “accommodations” for communities affected by the proposed development.

Those accommodations include reserving a portion of the forest for band members’ use, community and environmental stewardship programs and a requirement that Star Diamond fund programs to the tune of $161,250 for each year of the mine’s life.

The First Nation is also expected to be offered an agreement for “training, jobs and business opportunities” should the project proceed.

While resource revenue sharing, which James Smith Cree Nation has previously demanded, is off the table, Duncan said the accommodations offered to the First Nation are the “most significant” of any such process in provincial history.

“There may be a disagreement ... in terms of what the expectations of what some communities may be in terms of what the accommodations should look like and what we actually have to try to achieve in terms of those accommodations,” Duncan said.

James Smith Cree Nation has previously compared the proposal to the federally-owned Trans Mountain pipeline expansion, work on which stalled after a federal court ruled Ottawa did not properly consult affected First Nations.

Duncan said the province has fulfilled its duty-to-consult obligations during the “complex” environmental approval process, and is prepared for — though not necessarily expecting — legal action.

“I think we’ve done all that we can do, so therefore I think it’s time to move it to the next step,” he said.

In a statement, Star Diamond Corp. said the provincial government’s “thorough” environmental assessment process, which included “in-depth consultations,” fulfilled its duty to consult responsibly.

“The mine will be constructed and operated in an environmentallyand socially-responsible manner such that positive effects are enhanced ... and negative effects are minimized to the greatest extent possible,” the statement read.

Sheldon Reinhart, who lives in Swift Current and bought his first shares in Star Diamond, then known as Shore Gold Inc., 14 years ago after finding the company during a class project, said he was “very excited” by the news.

“It’s great for the province, and it’s great for the shareholders that have stuck with it for as long as they have,” Reinhart said, referring to Star Diamond’s expectation that the mine will return $6 billion in taxes and royalties over its 34-year lifespan.