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Aboriginal development corp. has big

Editor’s Note: The two-day Learning Together 2006 Conference, hosted by the Missanabie Cree First Nation and sponsored by FedNor, Industry Canada, the Northern Ontario Heritage Fund, SAMSSA and the City of Greater Sudbury, was to act as a first invit

Editor’s Note: The two-day Learning Together 2006 Conference, hosted by the Missanabie Cree First Nation and sponsored by FedNor, Industry Canada, the Northern Ontario Heritage Fund, SAMSSA and the City of Greater Sudbury, was to act as a first invitation from First Nations to mining industry companies looking for Aboriginal partnerships.

By CRAIG GILBERT

Greater Sudbury - After years of running a one-task operation, the proponents of the Pasico Development Corp. are looking to diversify and bring wealth and employment opportunities to First Nations in the Far North.

Now being administered by the Mushkegowuk Council of First Nations, a consortium of seven remote communities, Pasico was launched in 1992 and for 10 years managed a winter road in the Far North.

“It wasn’t developed to its full potential,” Missanabie Cree First Nation Chief Glenn Nolan said. “They eventually lost the contract (for the road) and it just stopped working. But we believe we can do something with Pasico.”

Nolan made the comment in a workshop during the first-ever Learning Together Conference, an event designed to act as an invitation from First Nations to the mining industry. Held at the Radisson Hotel in Greater Sudbury Feb. 22-23, its aim was to build relationships between mining and exploration companies and First Nation communities. The Pasico workshop was attended by about 15 delegates.

In order for Pasico to work, proponents had to convince the chiefs of the seven First Nations that make up the Mushkegowuk Council that it wouldn’t cost them a cent. Management of Pasico, and the costs thereof, is left up to the Missinabie Cree First Nation.

The idea was posed in December, but there have been no meetings since, according to Nolan.
The Mushkegowuk Council of Chiefs and its Regional Council represents the Mushkegowuk Cree communities on the James Bay Coast and within their southern traditional inland boundaries, representing over 10,000 people.

The plan today basically is to leverage their First Nation status, involve a partner that can offer the technical expertise and manpower to get the project done, and go after government contracts that have a certain amount of tender value set aside for Native groups.

Nolan envisions Pasico Transportation, for goods and people, Pasico Construction and Pasico MCL (Mid Canada Line) as companies that could be created under the development corporation’s umbrella.

“These partners will profit, but the downside is they’ll have to share with us,” says Nolan. “The guarantee is we’ll get the contract.”

The big target in Nolan’s mind is the Mid Canada Line, a series of early detection radar stations built by the federal government during the Cold War. Many of the stations, now cesspools for industrial pollution, rest on traditional Aboriginal lands. He says the government will be tendering contracts for their cleanup in the coming months.

“It’s a specialized process, but the Ministry of Natural Resources likes the idea of us being involved.”

Nolan estimates the work, which would take upwards of five years, could cost between $65 million and $90 million.

“If we get the contract, most of that would go back to the communities.”

Going to the bank for funding for the heavy equipment needed to do the job would be a lot easier with a contract in-hand, Nolan says.

“The contract has value to it,” he explains. “That’s what we did with our forestry contracts.”

He was referring to a landmark agreement with Tembec from 2005. One of its byproducts was discounted building supplies for the communities involved, which make the lives of a lot of people a little easier. The 30-per-cent discount basically covers the cost of transportation, which is always a concern in the Far North, he says.

Also of concern is hiring a qualified business development officer.

Such a position can command upwards of $150,000 per year. Without that kind of incoming revenue yet, a member of the crowd noted that until something is started, it would be tough to hire someone full-time.

“That’s our problem,” Nolan replied. “It will take three to five years to realize any true benefits.

Pasico travel only takes a slice, which is not enough to start a new business venture. We’re behind the 8-ball.”

The company is already growing so quickly that there is no time to do the business startup in-house. So they need to hire someone. See above for the other end of this vicious cycle.

“We’re trying to structure the business on a co-op model that gives rebates, but we have to sustain it. We can’t give all of the revenue back to the communities.”

According to Nolan, one of the major strengths of Pasico is simply numbers. If Pasico can get several First Nation enterprises together and pool applications for capital and operating funding, approvals may come quicker and with less hassle than if each project were to apply individually.

“The idea is to keep the dollars local and not let them bleed out of the communities. We could take that model and mirror it to any project with any First Nation or community.”

Other intentions of the venture include bringing more revenues into remote Northern communities, increasing the level of training taking place among Aboriginals, building capacity of expertise within Northern communities with an eye to creating some spin-off development.


www.mushkegowuk.ca
www.learning-together.ca