Resource deal a ‘model’ for First Nations
‘Overwhelming backing’ for project
CALGARY • A British renewable energy company and three Métis communities in Alberta signed a groundbreaking agreement Friday to commercialize mature forests.
Under the deal between Active Energy Group PLC, an international supplier of industrial wood chips, timber products and forestry management services, and the forest owners — the Alberta Métis settlements of Peavine, Paddle Prairie and East Prairie — much of the waste timber would be turned into biomass for electricity generation.
Grand Chief Ronald Derrickson of the Westbank First Nation in British Columbia, who will chair the joint venture and brought the parties together, said the deal is a model of the type of natural resource development favoured by Canada’s aboriginals.
“What I am trying to do is set a precedent, set an example,” Chief Derrickson said in an interview.
“I am trying to teach the native people that if they have the asset, they don’t need some white guy — and I hate to use that term — to come and tell them how it’s done.
We had our public meetings a number of times. There is a lot of concern both ways
They need to be able to make their own decisions.”
The deal will give the Métis an equitable share in the economic development of their forests and brings long-term economic growth, employment and stability to their commun- ities and their peoples, he said.
The venture involves the right to commercialize more than 100,000 hectares of mature forests — primarily standing hardwood like aspen and poplar, and softwood like spruce, pine and fir — using sustainable logging practices.
The 2,000- to 2,500-member Métis settlements and Active Energy will each hold a 45% equity interest, with the remaining portion held by Chief Derrickson.
The independent businessman, a land developer and successful international entrepreneur, said he plans to donate much of his profits to a legal fund to help fight for native rights.
Iner Gauchier, chairman of the Peavine Métis Settlement, said the joint venture will generate more jobs than the communities will be able to fill and gives them decision-making authority as well as profits that will be invested in social programs.
“We had our public meetings a number of times,” he said. “There is a lot of concerns both ways. And there was overwhelming backing because there is a lot of poverty within our communities.”
Richard Spinks, chief executive of Active Energy, said the agreement gives the Metis a “better place at the table in Canadian economics.”
The timber earmarked for biomass will be used to provide electricity to the communities as well as meet Alberta’s electricity needs. The best quality logs will be sold.
The venture will be allowed to enter into sub-leases with third parties for periods of about 200 years to allow for long-term economic development for the Métis peoples, in collaboration with international investors and commercial partners.