First Nation agreement reaffirms Indigenous veto power in B.C.

Premier David Eby’s government recently signed an agreement with the Simpcw First Nation establishing approval conditions for Yellowhead, a proposed copper mine in central British Columbia—effectively granting Simpcw veto power over the project. While the government touted the agreement as a Declaration on the Rights of Indigenous Peoples Act (DRIPA) success story, in reality it’s just another example of how the law adds barriers to investment in B.C.

DRIPA, adopted in 2019, requires the provincial government to take “all measures necessary” to align its laws with the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP), which says that Indigenous peoples have the right to use, own, develop and control lands, territories and resources that they traditionally used or occupied—and to give or withhold “free, prior and informed consent” to activities on those lands.

Concerns that DRIPA grants Indigenous groups an effective veto over large swaths of land, and any economic activity or development on such land, are not theoretical.

Last year, for instance, the B.C. Court of Appeal found the province’s mineral-claims framework, which allowed for claims prior to Indigenous consultation, was inconsistent with DRIPA. The Simpcw agreement for the proposed Yellowhead mine, which the government claims could generate nearly $1 billion annually in economic activity and create 2,445 jobs, means the project cannot proceed without the First Nation’s consent—again, confirming veto power is now part of B.C.’s policy framework. The government’s news release affirms the agreement was guided by DRIPA “while recognizing Simpcw’s consent and a provincial environmental assessment certificate are required for the project to proceed.”

In short, DRIPA has made future economic development in B.C. more complicated, costly and uncertain.

Take the mining sector. As implied by the B.C. Court of Appeal ruling, exploration for mineral deposits requires Indigenous consent, intensifying concerns about the requirements for securing exploration rights, the duration of the process, and its associated costs. In practical terms, it makes the rules, timelines and costs for potential investors and entrepreneurs less predictable, particularly in areas with multiple First Nations and overlapping land claims. Simply put, B.C.’s new framework has made an already high-cost venture, namely trying to develop a mine, markedly more risky and uncertain.

A number of business leaders warned that DRIPA discourages mining investment in the province. And less investment means fewer new or expanded mining projects and the jobs that accompany them. And critically, mining ranks among the country’s largest employers of Indigenous people. Again, this is just one sector of the economy impacted by DRIPA.

The B.C. urgently needs to restore stability and clarity around property rights—economic development cannot be subject to Indigenous veto. To start reducing the uncertainty that deters investment, Premier Eby must repeal DRIPA.