Historic ruling enables Selkirk First Nation to take a major step toward becoming the first to fully own a mine in Canada.

In a historic first for Indigenous resource development, Selkirk First Nation (SFN) has secured court approval to acquire the Minto copper-gold mine in the Yukon, a move that could lead to the first fully Indigenous-owned mining operation in Canada.

Located on Selkirk First Nation's traditional territory, approximately 250 kilometers (155 miles) north of Whitehorse, Minto Mine spans roughly 165 square kilometers (63.7 square miles) within the Yukon's Carmacks Copper Belt, a region known for its copper-gold porphyry deposits.

Yukon Government

Discovered in the mid-1970s, Minto operated both open-pit and underground mines, producing more than 500 million pounds of copper alongside significant amounts of gold and silver over a 16-year period from 2007 until its closure in 2023.

Despite its output and potential, Minto Mine was acquired by Minto Metals Corp. in 2019 when previous operator, Capstone Mining Corp., placed the mine on care and maintenance in 2018 due to economic challenges, including low copper prices and high operating costs.

Following its acquisition of the mine, Minto Metals ramped up operations with the goal of extending the mine's lifespan and boosting production. The company undertook significant exploration activities, completing drill programs aimed at expanding known mineralization and increasing reserves and, by 2022, Minto Metals had drilled over 28,000 meters, reporting impressive copper, gold, and silver grades from new discoveries.

During its tenure, the company produced approximately 55.5 million lb of copper in just two years. However, despite substantial exploration and production efforts and the rising demand for copper, financial pressures and water management challenges led the company to cease operations at the mine in May 2023.

Following the closure, the Yukon government placed the mine under the management of PricewaterhouseCoopers (PwC), which was appointed to oversee the site and seek potential buyers. After more than a year of unsuccessful efforts to find a buyer, negotiations for Minto's acquisition took a decisive turn.

On Sept. 5, the Yukon Supreme Court approved the sale of the mine's assets to Selkirk First Nation.

"We have always pushed for the environmental integrity of the Minto mine site, but we will now be positioned for more command and control of the site which opens up many possibilities in the future for Selkirk people, including the potential of exploration and reopening [the mine]," said Selkirk First Nation Chief Sharon Nelson to CBC News, who also called the court's decision a "monumental step for Selkirk People."

This ruling finalized the first stage of a two-part sale process, with the initial phase transferring ownership of Minto's physical assets – buildings, vehicles, generators, machinery, equipment, and the mill – to SFN.

"The Government of Yukon is pleased to see negotiations with Selkirk First Nation move forward to support the purchase of Minto mine assets," said Laura Seeley, communications advisor for the Yukon government, in an email to CIM Magazine.

Despite numerous attempts to find a buyer for Minto Mine, previous bids fell short due to the complexity of addressing the site's long-term viability. According to PwC, earlier offers failed to address critical issues such as the feasibility of restarting mining operations, conducting necessary reclamation work, or ensuring the financial security required for the mine's environmental obligations.

These factors deterred earlier attempts until the SFN offer emerged with a more comprehensive plan, addressing these critical concerns and outlining a clear path forward for the site.

A report filed by the receiver in late August detailed the specifics of SFN's offer, which includes plans to complete drilling and exploration within the year to determine whether restarting the mine is feasible; its intention to address the security payments necessary for any potential restart, ensuring compliance with both environmental and financial obligations; and a commitment to not interfere with the Yukon government's ongoing reclamation activities.

The First Nation's ultimate goal, according to an emailed statement to CBC News, is to prevent permanent closure of the mine site.

Further elaborating on the acquisition, the First Nation emphasized that it aims to "keep a foot in the door for potential exploration which economically, could significantly benefit our community, as well as the broader Yukon region, by creating jobs, training opportunities, and business contracts," the statement reads. "With SFN as owners of the assets, we can strive for economic growth in all future activities while prioritizing the environment as guided by our traditional laws and practices."

While the exact cost remains sealed by the court, PwC noted that SFN's offer was "almost double" what could have been raised in a live auction, reflecting both the financial strength and determination of the First Nation to secure the mine.

However, while SFN now holds control of the mine's physical infrastructure, the completion of the acquisition remains contingent on the second phase. This critical stage depends on obtaining essential mineral claims, leases, and permits, which are subject to approval from regulatory authorities, the Yukon government, and the insurer overseeing the mine's reclamation bond.

Only once these approvals are secured will SFN be able to fully utilize the site.

Yukon Supreme Court Justice Suzanne Duncan signed off on the initial sale of all facilities at the mine, as well as granted SFN exclusivity to negotiate the intangible assets for the second transaction.

The First Nation and the territorial government have been given until the end of the month to negotiate the exact terms of the second stage, with the possibility of obtaining an extension.

"The Yukon government will continue to prioritize opportunities for the involvement of Yukon First Nations in economic opportunities associated with mining activities," the government said in an emailed statement to CBC. "This court decision offers significant opportunities for Selkirk First Nation and we look forward to the benefits that this could bring to the First Nation, the region, and the broader territory."