Sand mining company offers 5% of profits, up to $20M a year, to Manitoba First Nation
Sio Silica, a mining company based in Alberta, has recently offered the Brokenhead Ojibway Nation a five per cent share of profits from its proposed sand-extraction operation. This offer promises the Winnipeg-area First Nation $20 million in annual revenue once the project is operating at full capacity. The company’s plan to extract up to 33 million tonnes of high-grade silica from below the surface of southeastern Manitoba over 24 years was initially rejected by the NDP government in 2024. However, Sio Silica has been engaging in a series of meetings with Brokenhead members since last fall in a revised effort to obtain an environmental license for its operation.
In a presentation at Winnipeg’s Club Regent hotel, Sio Silica officials highlighted the significant financial benefits that the mining operations would bring to the First Nation. These benefits include employment, training, and educational opportunities for the community members. Chief executive officer Feisal Somji emphasized the importance of providing proper resources and education to ensure that everyone can benefit from the project.
Although the sand Sio Silica hopes to extract does not lie below Brokenhead’s reserve lands, the company is consulting with the First Nation as it is the closest community to the proposed extraction site. President Carla Devlin emphasized the need for First Nations to be at the table before approval, not after. She underscored the importance of partnership and economic reconciliation for Indigenous communities.
Brokenhead Chief Gordon Bluesky expressed the importance of ensuring that the community members understand the full scope of the proposed project on their territory. He stressed that any economic reconciliation must happen on their terms to benefit the well-being of the members.
While some Brokenhead members, like Taylor Galvin, have expressed concerns and opposition to the sand extraction proposal, others have been informed that the band has hired an official to work on an impact-benefit agreement with Sio Silica. Galvin raised questions about the sincerity of the company’s current efforts, especially considering the lack of consultation during the initial license application.
Sio Silica has revised its project as SiMBA and amended its plans to involve more gradual drilling. The company intends to file a new license application this year, aiming to address previous concerns raised by the Clean Environment Commission. The company’s president, Carla Devlin, has committed to engaging with Brokenhead and ensuring transparency in the process.
Critics of the silica mining project, such as Tangi Bell of Our Line In The Sand, have called the ongoing effort to obtain an environmental license “absurd.” Bell emphasized the need for public hearings and funding for participants to ensure transparency in the decision-making process.
As the discussions between Sio Silica and Brokenhead continue, it remains to be seen how the project will proceed and what the ultimate impact will be on the community and the environment. The importance of meaningful consultation, transparency, and partnership in resource development projects cannot be understated, especially when it comes to Indigenous communities and their lands.
