After the new and returning MLAs recently spent the day having roundtable sessions with 10 NGOs, they enjoyed an evening tete-a-tete with representatives from the mining sector, a privilege that likely none of the NGOs could afford or were offered.
Less than two weeks later comes the announcement that the Nechalacho mine operated by Vital Metals out of Australia had made a deal that essentially sold our rare earth minerals to Shenghe Resources in China. The deal gives Shenghe a 9.9 per cent stake in the mine located 100 km from Yellowknife, though the Chinese company has expressed its intent to eventually become the main shareholder.
This from a country that has the worst environmental protection record in the world and at a time when rare earth minerals are badly needed for a green-based movement into the future right here at home.
The result then is that China ends up selling our product back to us at who-knows-what price. It’s mind boggling.
So dangerous is this sale that it not only endangers the integrity and sovereignty of the North, it threatens the sovereignty of the entire country. We’ve been sold out to an unfriendly country at a time when foreign relationships are at their most fragile.
It is not enough to ask what were the people who negotiated this deal, including senior bureaucrats, thinking as it becomes clear they weren’t thinking at all. Their urgency to enhance their own pocketbooks and bank accounts has put Canada’s future at risk.
Vital Metals had earlier stated that one of its intended goals was to break China’s growing stranglehold on this market. A change in senior level staff last spring changed all that.
It is small wonder then that Bill Braden, a former MLA who worked on media relations with the mine, said he felt betrayed. In an interview with Cabin Radio, he said Vital Metals’ earlier intention was to provide a much needed commodity to local markets and work with Indigenous governments to negotiate a fiscal relationship amenable to all. With that change in leadership last spring, the company looked for the highest bidder — China — with no consultation.
Whoever suggests that the mines are on our side and concerned about our welfare needs to think again, which this deal clearly shows. This is why the private meetings between the newly-elected MLAs and mining personnel is distasteful and an indicator that nothing has changed. Premier R.J. Simpson and Industry, Tourism and Investment Minister Caitlin Cleveland will be put to the test of how strong they are and if they are prepared to stand up to business and bureaucrats to protect the safety and well being of Northerners.
True colours are being exposed.
Some headlines suggested that the sale came as a surprise and indeed, the announcement came just as the newbies took office. That was unscrupulous at best and most of those taking up new positions looked like deer caught in the headlights. It was abusive behaviour at best. But people in the know argue these negotiations had gone on for months and that the civil servants working on the file failed to keep our elected people and, thus us, briefed.
The only people, then, that it surprised were the politicians who needed to be informed of and involved in the discussions, and of course, we the people, even though those dealings greatly affect our lives.
If there was ever a call to reign in some of our senior civil servants who over stepped their boundaries, this was it. A diplomatic knuckle-rap will not do — someone needs to be held accountable.
Fortunately, this may not be the done deal that the Chinese/Australian company think it is. Because of the threat it poses to national security, Ottawa has been alerted. In addition to conversations between territorial ministers and Ottawa, other MPs have called for Canada’s industry minister to review the situation. Let’s hope NWT MP Michael McLeod is one of those.
Ottawa has been asked to review mine sales before and has reversed them, which has happened in Nunavut. We hope for the sake of Canadian sovereignty, a reversal will be true in this case, too.
Let’s not be so naive as to the industry’s intentions in future. It’s clear that the almighty dollar is the bottom line. We might like to think the industry wants what is best for us but as this situation proved, its main concern is for itself.