Selwyn Chihong mining proposes royalties, jobs for Kaska

AChinese-owned mining company looking to develop a large zinc-lead deposit that straddles the Yukon/NWT border is working on a socio-economic participation agreement with Kaska First Nation communities.

Selwyn Chihong Mining Ltd. hopes to operate an open pit mine for more than 10years within the traditional territory of the Kaska First Nations.

The proposed agreement with the Kaska would be a binding contract that, among other things, would provide employment and business opportunities. Members of the Kaska communities will be asked to vote on the agreement Nov.30.

According to details made public by Selwyn Chihong, the financial end of the deal would mean "once the cost of building the mine has been paid back, Kaska will receive payments based on profits of the project."

Five different Kaska communities would be part of the deal. The Ross River Dena Council would receive40 per cent of payments under the agreementand theLiard First Nation would receive30 per cent. Kwadacha, Dease River First Nation and Daylu Dena Council would each receive 10 per cent of the payments.

The money would go to trust accounts managed separately from the band councils. It would then be up to each community to decidehow to usethat money.

The deal also promisesjobs for Kaska membersintrucking, hauling, catering and camp support.

"The socio-economic partnership agreement also provides an opportunity for Kaska to partner with Selwyn Chihong in investing in a Liquefied Natural Gas (LNG) plant that will sell LNG to the mine and other customers in the region," according to acompanystatement.

There are also provisions for awarding contracts to Kaska businesses.

For mining company contracts worth less than$150,000, priority will be given to pre-qualified Kaska businesses. If there are no qualified businesses, thosecontracts may be sole-sourced, or put out for invited tenders.