A.1. The First Nations Commercial and Industrial Development Act (2006) (FNCIDA) is a First Nation led initiative. It is federal legislation that was developed to address existing regulatory uncertainty for major commercial and industrial development on reserve lands.
FNCIDA allows the federal government to produce regulations for complex commercial and industrial development projects on reserves. The Act essentially provides for the adoption of regulations on reserve that are compatible with those off reserve. This compatibility with existing provincial regulations increases certainty for the public and developers while minimizing costs.
A.2. Regulations are made under FNCIDA only at the request of a First Nation.
A First Nation requests the enactment of regulations under the Act to address regulatory barriers that are preventing them from proceeding with an on-reserve large-scale commercial or industrial project. In order for the Act to be applied, a First Nation needs to identify a regulatory gap, find a commercial or industrial proponent, and confirm provincial engagement.
A.3. First Potash Ventures is a joint venture between Encanto Resources Ltd. and Muskowekwan Resources Ltd. First Potash Ventures is proposing the development of a potash mine on the Muskowekwan First Nation.
A.4. As per the First Potash Ventures project description submitted to the Canadian Environmental Assessment Agency, detailed engineering/procurement and construction is estimated to begin by Q3 2014 and to be completed by Q4 2016; the mine is expected to be commissioned in 2017.
A.5. As During the mine construction phase, it is anticipated that 1,000 jobs will be created for members of the Muskowekwan First Nation, as well as residents of the surrounding communities. In addition to the employment and training opportunities, this project is expected to generate economic benefits for local and area businesses through the purchase of goods and services.
Once the mine is fully operational, it is anticipated that up to 500 employees will be needed for operation and maintenance. The mine is projected to produce up to 2.8 million tonnes of potash annually for an estimated 50 years. Throughout this period, the Muskowekwan First Nation will earn tens of millions annually.
