Canadian Mining Journal


REVENUE: MAC supports sharing of mining royalties between the Crown and aboriginal communities

OTTAWA – The Mining Association of Canada (MAC) and its member companies have issued a position statement communicating its support for a principled, open and transparent approach to government resource revenue sharing between the Crown and aboriginal communities that are primarily affected by a specific resource project.

Government resource revenue sharing is understood as a sharing of resource royalties paid by industry to governments with Aboriginal communities. It is not an additional tax or royalty imposed on the industry.

As detailed in the position statement, MAC believes that government resource revenue sharing can provide aboriginal communities with greater opportunities to participate in the mineral exploration and mining industry, and could significantly contribute to the elimination of socio-economic disparities between aboriginal and non-aboriginal Canadians. Moreover, by enhancing and clarifying Aboriginal benefits, these arrangements can result in increased certainty for commercial access to land and resource development.

“We view government resource revenue sharing as one of several important ways to increase the benefits of mining to aboriginal communities, and are pleased to voice our support,” stated Pierre Gratton, MAC president and CEO.

In practice, government resource revenue sharing models should be developed collaboratively between respective provincial or territorial governments and aboriginal communities. It should be applicable to new mines and to new major expansions of an existing development.

There are currently 265 active agreements between mining companies and aboriginal communities across Canada, as well as numerous joint ventures, collaborative planning efforts, and extensive training and employment initiatives.

Download the MAC Position Statement on Government Resource Revenue Sharing between the Crown and Aboriginal Communities.

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