Vital Metals has gone silent on the North Slave M茅tis Alliance (NSMA).

The Australian firm owns and operates a portion of NWTSA国际影视传媒檚 Nechalacho rare earths mine, and lists NSMA as a community stakeholder for the project on its website.

However, communication between the two parties has ceased since Vital sold a 9.9-percent ownership stake SA国际影视传媒� and all the resource it has extracted from the mine to date SA国际影视传媒� to a subsidiary of Chinese rare earths company Shenghe Resources last year.

SA国际影视传媒淯ntil last spring, NechalachoSA国际影视传媒檚 leadership always went the extra mile to ensure transparent engagement and maximize Indigenous contracts, jobs and training,SA国际影视传媒� NSMA President Marc Whitford said. SA国际影视传媒淲e would hear from them often SA国际影视传媒� sometimes, just a call or a coffee; other times, a site visit or formal meeting. We were never surprised.

SA国际影视传媒淪ince the changes in VitalSA国际影视传媒檚 board and management, we have not yet heard from Vital,SA国际影视传媒� he added, revealing that NSMA learned about the changes to VitalSA国际影视传媒檚 operations SA国际影视传媒渢hrough the media.SA国际影视传媒�

VitalSA国际影视传媒檚 deal with Shenghe Resources was the final development in a turbulent 2023 for the company, which also saw it terminate plans for a processing plant in Saskatoon after spending almost $20 million on its construction. On Jan. 18, Regina radio station CJME reported that Vital Metals was in the process of liquidating those Saskatchewan-based assets.

Before its deal with Shenghe Resources, which is partially owned by the Chinese government, the homepage of VitalSA国际影视传媒檚 website proclaimed that the company aimed to SA国际影视传媒渂ecome the lowest cost producer of mixed rare earth oxide outside of China.SA国际影视传媒� The website still includes links to multiple news articles that positioned a Vital-owned Nechalacho as an alternative to ChinaSA国际影视传媒檚 rare earthSA国际影视传媒檚 sector.

Whitford called VitalSA国际影视传媒檚 decision to share ownership with Shenghe SA国际影视传媒渁 shift in focus from Canada, friends and allies to foreign entities.SA国际影视传媒�

SA国际影视传媒淔ormer CEOs Don Bubar and Geoff Atkins had a vision that we, as impacted Indigenous groups, would own significant equity in the project and participate on the board of directors,SA国际影视传媒� he said. SA国际影视传媒淲e were always told our Indigenous support would allow the NWT to supply Canada, its friends and allies with critical minerals to enable the green economy and address climate change. We were assured minerals from the NWT would be treated with the highest ESGI (environmental, social, governance and Indigenous) standards from mine to market.

SA国际影视传媒淭he NSMA hopes that whoever controls Nechalacho will keep the original vision alive for the good of the NWT and our country.SA国际影视传媒�

Bare minimum not enough

Whitford is not alone in his sentiment that Vital Metals has failed to properly engage with its Indigenous stakeholders, which also includes the Tlicho Government, Deninu Kue First Nation, Lutsel KSA国际影视传媒檈 First Nation, and Yellowknives Dene First Nation (YKDFN).

Kieron Testart, the MLA for Range Lake and a former director of economic development for YKDFN, shares that opinion, contending that he has SA国际影视传媒済reat concernsSA国际影视传媒� about VitalSA国际影视传媒檚 recent changes.

Having parted ways with YKDFN to return to public office, Testart said he could not speak on the First NationSA国际影视传媒檚 behalf, but admitted that, as far as heSA国际影视传媒檚 concerned, the memorandum of understanding between the Australian company and the Indigenous group SA国际影视传媒渉asnSA国际影视传媒檛 been honoured.SA国际影视传媒�

SA国际影视传媒淲eSA国际影视传媒檙e moving into an era of free, prior and informed consent with First Nations around what happens on their land and traditional territory,SA国际影视传媒� he said. SA国际影视传媒淚s it appropriate for a company to abruptly change their tactics and make unilateral decisions without providing consent and consultation with their First Nations partners there?

SA国际影视传媒淭he bare minimum isnSA国际影视传媒檛 enough,SA国际影视传媒� he continued. SA国际影视传媒淲e need to do more, and doing more is making sure that when you sell a First Nation on a project that involves local jobs for local people, and a supply chain that supports CanadaSA国际影视传媒檚 international interests, and then you abruptly shelve that supply chain and sell to a company controlled by Chinese interest that has nothing to do with the original proposal, you have an obligation to explain that.

SA国际影视传媒淵ou probably have an obligation to explain it to everyone in the Northwest Territories, but in particular, the First Nations of whom your project is a guest on their land,SA国际影视传媒� he said.

A larger problem

Testart called VitalSA国际影视传媒檚 recent failure to communicate with impacted Indigenous groups one of SA国际影视传媒渢wo big issuesSA国际影视传媒� surrounding its operations at Nechalacho.

The other issue, he said, is that the NWT can seemingly SA国际影视传媒渙nly get development in our minerals industry from state-owned firms in China, and not from North American companies that are friends and allies.SA国际影视传媒�

The solution to that issue, he contends, is SA国际影视传媒渕aking the Northwest Territories the most attractive place to invest,SA国际影视传媒� and the responsibility for that is largely outside VitalSA国际影视传媒檚 hands.

SA国际影视传媒淲e have world-class resources, but we donSA国际影视传媒檛 have a world-class investment plan,SA国际影视传媒� he said. SA国际影视传媒淲e canSA国际影视传媒檛 just sit back and expect our resources to speak for themselves.

SA国际影视传媒淲e need to champion our industry as the best place to do business in Canada, and thatSA国际影视传媒檚 going to take a bunch of work,SA国际影视传媒� he added. SA国际影视传媒淲e need to make the Northwest Territories be most attractive place for investment from our friends and allies as possible, so we donSA国际影视传媒檛 have to rely on unfriendly foreign actors like Russia and China to back up our projects.SA国际影视传媒�

More silence from Vital

Vital was contacted for comment about its deal with Shenghe Resources, which has been a source of significant controversy among NWT residents and in the media in recent months.

Geordie Mark, who was appointed as the companySA国际影视传媒檚 managing director and CEO just prior to the announcement of the Shenghe deal last October, agreed to SA国际影视传媒渉ave a lookSA国际影视传媒� at some questions about the companySA国际影视传媒檚 current situation, but did not respond to any of SA国际影视传媒SA国际影视传媒檚 nine questions prior to publication deadline, which he was made aware of in advance.

Despite the companySA国际影视传媒檚 silence on its controversial deal with a partially state-owned Chinese company, Testart believes there is still hope for Vital MetalsSA国际影视传媒� operations at Nechalacho.

SA国际影视传媒淭his [deal with Shenghe] is not a controlling interest in the project SA国际影视传媒� yet,SA国际影视传媒� he said. SA国际影视传媒淚f we can make the Northwest Territories a place that people are rushing to invest in, then Vital should be able to find other resources.

SA国际影视传媒淚f we can make sure that those investments are working for Canada, and for the Yellowknives Dene, for the Tlicho, for the NSMA, for all Indigenous people, then it will be a win. So the positive news is, we can say, we donSA国际影视传媒檛 want this to happen again, and weSA国际影视传媒檙e going to take serious and swift action to ensure it doesnSA国际影视传媒檛.SA国际影视传媒�