Mining is the backbone of the Saskatchewan economy and its prospects are enormous. The province is internationally recognized as a leader in mining, a sector stimulating economic growth, job creation and spin-off activity in urban centres, rural areas and First Nations communities across the province.
One feature of globalization is an international appetite for Saskatchewan minerals. From gold to sand, coal to potash, and salt to uranium, mining is a major force propelling Saskatchewan prosperity and creating new opportunities for successful First Nations entrepreneurship.
Most non-First Nations Saskatchewan residents live in urban areas and have for some time. By contrast, reserve-based First Nations in the province live in environments often defined by minerals, literally under their feet. The paradox is that First Nations have been historically, and still are, largely excluded from development of these resources.
To speak of First Nations as being on the sidelines of mineral development (as well as agriculture, forestry, oil, gas, hydro, fishing and wind development) is accurate only in the sense that they are not participating in or benefiting proportionately from this activity. The irony is that in a booming provincial economy that is begging for workers - to the extent of actively recruiting and importing them - the reservoir of First Nations labour and skills still goes mostly untapped.
Matters, however, are starting to change. For the first time, there is a wealth of economic possibilities for First Nations in areas where previously they have been excluded and marginalized. Across the province, events are moving fast for First Nations entrepreneurs who are capitalizing on the continuing strength of the mining sector by taking control of their economic futures.
Nowhere in the province is this transition more evident than in the north, an economic pole attracting national and international business to traditional First Nations lands. Although uranium in northern Saskatchewan has been mined for more than half a century, over the past decade the industry has undergone unparalleled growth. Saskatchewan's Ministry of Energy and Resources indicates that the province currently accounts for 20 per cent of global uranium production.
The uranium export deal concluded by Prime Minister Stephen Harper on his February 2012 visit to China will only contribute to this growth. No group stands to benefit more from this deal than the Lac La Ronge Indian Band, which has been engaged in providing services to the uranium sector through its Kitsaki Development Corporation for decades.
In the southern part of the province, there is also a flurry of mining activity in the potash sector. Saskatchewan accounts for more than 30 per cent of world potash production and 45 per cent of the world potash trade. The three major players in the province (PotashCorp., Mosaic and Agrium) have over $100 billion in market assets and almost $10 billion annually in revenue.. Each, on paper, has committed to increasing First Nations engagement and procurement in their operations.
In potash, Saskatchewan First Nations not only participate in goods and service delivery, but have begun to assume an equity stake in the development of the resource, as indicated by the partnership agreement reached by the Kawacatoose First Nation and Native American Resource Partners (NARP) in early 2012. At the same time, the Muskowekwan First Nation agreed to sign an historic deal with Encanto Potash.
With this recent economic activity in mind, the potential reward from the mining pie for First Nations cannot be underestimated. The scale of the mining sector, its proven returns to date, in both revenue and employment, and the possibility for agreements with well-established industry partners are attractive features for First Nations.
First Nations investing in the future are doing so through a process that recognizes the value of their asset; the need for study, planning and exploring development options; the primacy of consensus building; and the opportunity that comes from entering into partnerships.
Notwithstanding bullish pros-pects, there are risks. Two features of the resource economy are that it is volatile and unpredictable. The one consistency of life of such an economy is that it is inconsistent. To First Nations, this reality is nothing new. From the early stages of the fur trade they were the engine of a volatile economy international in scale. As well, environmental risks accompanying development loom large. First Nations, who consider their lands sacred, can help lead the ongoing charge to implement sustainable and responsible practices.
Mining is one sector and Saskatchewan is one province; together they illustrate that big markets create big opportunities. Success is the prize, winning it the result of preparation; preparation is no guarantee of the prize, lack of preparation ensures failure. First Nations must undertake the development they want in light of their history, their experience, and their dreams.
Despite the emphasis here on natural resources, the essential resource remains First Nations people - old and young. Both are needed. Those who possess the wisdom and knowledge of the Elders and those who possess the skills required to succeed in the resource economy of the 21st century.
Elliott is president of Insightwest Research and Smith is senior policy fellow, JohnsonShoyama Graduate School of Public Policy, University of Regina. Elliott and Smith recently co-authored a report entitled The Future Starts Now - Economic Space For First Nations
One feature of globalization is an international appetite for Saskatchewan minerals. From gold to sand, coal to potash, and salt to uranium, mining is a major force propelling Saskatchewan prosperity and creating new opportunities for successful First Nations entrepreneurship.
Most non-First Nations Saskatchewan residents live in urban areas and have for some time. By contrast, reserve-based First Nations in the province live in environments often defined by minerals, literally under their feet. The paradox is that First Nations have been historically, and still are, largely excluded from development of these resources.
To speak of First Nations as being on the sidelines of mineral development (as well as agriculture, forestry, oil, gas, hydro, fishing and wind development) is accurate only in the sense that they are not participating in or benefiting proportionately from this activity. The irony is that in a booming provincial economy that is begging for workers - to the extent of actively recruiting and importing them - the reservoir of First Nations labour and skills still goes mostly untapped.
Matters, however, are starting to change. For the first time, there is a wealth of economic possibilities for First Nations in areas where previously they have been excluded and marginalized. Across the province, events are moving fast for First Nations entrepreneurs who are capitalizing on the continuing strength of the mining sector by taking control of their economic futures.
Nowhere in the province is this transition more evident than in the north, an economic pole attracting national and international business to traditional First Nations lands. Although uranium in northern Saskatchewan has been mined for more than half a century, over the past decade the industry has undergone unparalleled growth. Saskatchewan's Ministry of Energy and Resources indicates that the province currently accounts for 20 per cent of global uranium production.
The uranium export deal concluded by Prime Minister Stephen Harper on his February 2012 visit to China will only contribute to this growth. No group stands to benefit more from this deal than the Lac La Ronge Indian Band, which has been engaged in providing services to the uranium sector through its Kitsaki Development Corporation for decades.
In the southern part of the province, there is also a flurry of mining activity in the potash sector. Saskatchewan accounts for more than 30 per cent of world potash production and 45 per cent of the world potash trade. The three major players in the province (PotashCorp., Mosaic and Agrium) have over $100 billion in market assets and almost $10 billion annually in revenue.. Each, on paper, has committed to increasing First Nations engagement and procurement in their operations.
In potash, Saskatchewan First Nations not only participate in goods and service delivery, but have begun to assume an equity stake in the development of the resource, as indicated by the partnership agreement reached by the Kawacatoose First Nation and Native American Resource Partners (NARP) in early 2012. At the same time, the Muskowekwan First Nation agreed to sign an historic deal with Encanto Potash.
With this recent economic activity in mind, the potential reward from the mining pie for First Nations cannot be underestimated. The scale of the mining sector, its proven returns to date, in both revenue and employment, and the possibility for agreements with well-established industry partners are attractive features for First Nations.
First Nations investing in the future are doing so through a process that recognizes the value of their asset; the need for study, planning and exploring development options; the primacy of consensus building; and the opportunity that comes from entering into partnerships.
Notwithstanding bullish pros-pects, there are risks. Two features of the resource economy are that it is volatile and unpredictable. The one consistency of life of such an economy is that it is inconsistent. To First Nations, this reality is nothing new. From the early stages of the fur trade they were the engine of a volatile economy international in scale. As well, environmental risks accompanying development loom large. First Nations, who consider their lands sacred, can help lead the ongoing charge to implement sustainable and responsible practices.
Mining is one sector and Saskatchewan is one province; together they illustrate that big markets create big opportunities. Success is the prize, winning it the result of preparation; preparation is no guarantee of the prize, lack of preparation ensures failure. First Nations must undertake the development they want in light of their history, their experience, and their dreams.
Despite the emphasis here on natural resources, the essential resource remains First Nations people - old and young. Both are needed. Those who possess the wisdom and knowledge of the Elders and those who possess the skills required to succeed in the resource economy of the 21st century.
Elliott is president of Insightwest Research and Smith is senior policy fellow, JohnsonShoyama Graduate School of Public Policy, University of Regina. Elliott and Smith recently co-authored a report entitled The Future Starts Now - Economic Space For First Nations
