rotary open A wootn2372 a " & Records Operations Ovo Government of Canada Gouvernement du Canada a Privy Council Office Bureau du Conseil privé oma Ottawa, Canada 8 01 27 KIA 0A3 # CRET SECRET Gestion des documents SUN.07 2016 MEMORANDUM FOR MICHAEL WER, ¢.c.: Serge Dupont RING OF FIRE OVERVIEW AND UPDATE (Information Only) SUMMARY ° The Ring of Fire (RoF) represents an economic development opportunity of national and provincial significance and a catalyst for change in the economy and quality of life for neighboring First Nations communities. The remote region and existing socio-economic issues in the First Nations communities, however, pose challenges for transportation, communications, energy and community infrastructure and for First Nations community health and capacity for full participation in forthcoming economic development. |° _ RoF is an Ontario priority and their request for support in the form of a $1 billion infrastructure commitment from the federal government has recently been re-confirmed, though no project-based proposals have been submitted, * The federal response to RoF will require coordination and a whole-of- government approach with the identification of leads and articulation of a tailored strategy. Beyond how federal efforts should be coordinated is the need to identify priorities for federal/provincial collaboration and determine whether the focus and strategic vision ~ regional economic development in Northern Ontario that is supported by long-term investments in enabling infrastructure, sustained by a trained workforce, and that contributes to healthy ‘communities ~ is specific to RoF or should be extended to all of northern. Ontario, Background Overview and status of current development * The RoF is a cfescent-shaped belt of chromite, nickel and base metal deposits in a remote area of the James Bay lowlands 450 km northeast of Thunder Bay. With the value of the resources having been estimated as high as $60 billion, the RoF has been regarded since 2011 by both the federal and Ontario governments as an economic development opportunity of national and provincial significance i Canada er“2s SECRET and as a catalyst for change in the economy and quality of life for the First Nations communities. A map showing the area of the RoF is attached at Tab A. Nine Matawa First Nations communities share the traditional territory of the proposed mineral exploration and development area. These communities include highly vulnerable communities whose socio-economic, health and housing crises have persisted in recent years. Others such as Attawapiskat and Kashechewan are downriver and would be affected by the environmental effects of development. ‘A downturn in the commodities cycle, and First Nations opposition to development prior to meaningful consultation and quality of life improvements for their communities, along with the infrastructure challenges described below, has resulted in limited development to date. An underground nickel mine, concentrator and on-site tailings storage project called the Eagles Nest mine, operated by Noront Resources, is proceeding through federal and provincial environmental assessment review, with plans to begin operation by 2020 Government of Canada’s commitment to RoF The RoF implicates several federal departments and agencies with responsibilities for economic development, infrastructure, Indigenous relations, energy, environmental assessment, and health, among others. The federal government has made investments related to skills development, community health, and local economic development planning and capacity building. In the last five years, more than $54.5 million in federal funding has been approved to support 152 projects, aimed mainly at building the capacity in Indigenous communities. ‘Ontario is bringing renewed pressure on the federal government for support for Ring of Fire. On May 30, Ontario Premier Wynne wrote to the Prime Minister (Tab B) to request that the federal government match funds in the amount of $1 billion from the National Infrastructure Component of the New Building Canada Fund for infrastructure development. On May 26, Michael Gravelle, Ontario Minister of Northern Development and Mines (MNDM), met with Minister Bains in Thunder Bay and expressed hope that Minister Bains would act in the capacity of federal lead, given his responsibility for FedNor and the regional significance of the RoF. Key Challenges — Infrastructure (One of the primary challenges for development in the region is the lack of regional infrastructure for transportation (road link), communications (broadband) and energy (grid connection) To that end, FedNor and MNDM have co-funded an all-season road feasibility study to examine connecting four Matawa communities and a nickel mining 000002-3- SECRET project to the provincial road system; the study is due to be completed this month. Minister Gravelle confirmed with Minister Bains the province's intention to advance the next phase of technical work for the road project in 2016 with a target for commencing construction by early 2018, and their hope that the federal government will cost-share the next phase of technical work FedNor and MMDM have also been working together with the Matawa Tribal Council on a business case for fibre-optic connection of remote Matawa communities. The estimated capital cost is between $35 and $45 million. Budget 2016 commitments for broadband and for First Nations infrastructure might be considered to support this initiative. As well, Federal-Provincial Working Groups of senior officials are overseeing the development of a business case to connect 21 remote communities to the provincial electrical grid to reduce reliance on diesel. ‘Ontario recently communicated that it would establish a $75 million Community Benefits Fund for the Matawa First Nations to support infrastructure development and socio-economic programming on reserve. Ontario will request matching funds from the federal government for this initiative, While Ontario has asked for $1 billion in matching infrastructure funds for regional infrastructure, to date, ‘Ontario has not presented a formal funding proposal to Infrastructure Canada to detail projects under this amount. Key challenges - indigenous community services, weliness, and capacity/readiness The Matawa First Nations communities are small and remote, lack adequate ‘community infrastructure and services on-reserve, experience significant health crises and currently lack skills capacity to fully participate in RoF economic development. Six of nine Matawa First Nations are under boil water advisories, housing needs are unacceptably high, and there are significant gaps in health outcomes. At the provincial level, Ontario and nine Matawa First Nations signed a Regional Framework Agreement in March 2014 to negotiate a’process for regional development and decision-making. Areas under negotiation include resource revenue-sharing, regional Infrastructure, environmental review and monitoring, and community benefits. However, the Matawa First Nations overall position on development has been that meaningful progress on improving quality of life for their communities is required before progress can be made in regional infrastructure and resource development. In addition to the proposed Community Benefits Fund, the province is also planning to provide $50 million to the Matawa First Nations for wellness and social programming. While matching funding has not been requested, the province will seek opportunities for collaboration in this regard, At the community level, federal efforts are focused on initiatives to promote community health and well-being; advance the readiness of communities to 000003.69(1K9)0: 0) s.20(110) -4- SECRET engage in discussions; and develop the labour market. Major specific investments have included: - Employment and Social Development Canada provided $7.7 million for training through the Ring of Fire Aboriginal Training Alliance; ~ FedNor provided $4.4 million to Nishnawbe Aski Development Fund for skills training and business development for First Nation communities; - Health Canada approved $3.1 million over the last three years to assist Matawa communities address prescription drug abuse issues; and Indigenous and Northern Affairs Canada (INAC) allocated more than $13.8 million for community capacity building and mining readiness through the Strategic Partnership Initiative (SPI), Project. This project will test a whole-of-government approach to community development with three remote Matawa communities. Chiefs presented their priorities to Associate Deputy Ministers in February 2016; they included housing, water, education, and health. Government of Canada support for environmental assessment and sustainable resource extraction The Canadian Environmental Assessment Agency has provided $190,000 to Indigenous groups to participate in activities related to the environmental assessment of Noront's proposed Eagle's Nest mine. Four Matawa First Nations received funding. The province of Ontario is working with Natural Resources ‘Canada (NRCan) to clarify First Nations participation in the environmental assessment process pertaining to the Eagles Nest development. In 2015, NRCan launched a five-year, Chromite Mines to Market initiative to advance the technological R&D required to bring chromite resources to the market in a responsible manner while maximizing the value and benefits from Canadian mineral deposits. PCO Comment 000004“Se SECRET ° To better position Indigenous communities, businesses and individuals to benefit from major resource developments in the RoF, continuing federal leadership will be required to coordinate information-sharing, communications and program investments across federal departments and to organize and guide federal efforts to address critical areas of development. ° The Government's commitment to renewed engagement with Indigenous Peoples and Budget 2016 investments for First Nations communities provide an ‘opportunity to align federal and provincial priorities on Indigenous engagement and community development in the region to address key challenges. ° Going forward, federal/provincial collaboration will encompass investments ina number of complex priorities; they include: ~ Regional Infrastructure (transportation, telecommunications connectivity, electrification); Community infrastructure and resilience (drinking water and waste treatment, housing, health, addiction); - Community readiness (wellbeing, employment and training, business and economic development, financial and project management capacity); and - Regional economic development (mineral development, ecotourism). ° _ Ameeting of Associate Deputy Ministers, led by INAC, was held on May 31 to begin to consider crucial questions for discussion: how the federal government should come together to articulate and implement a vision with Ontario, what outcomes of a federal/provincial meeting on RoF might be, and whether the area of focus for federal/provincial collaboration should be focused solely on RoF or broadened to a strategy that responds to needs across northern Ontario. . Next steps in the coming weeks will be for senior officials from relevant departments to identify priorities for federal action, articulate desired outcomes and develop a workplan for coordinating federal efforts towards engaging the province using a whole-of-government approach. We will keep you apprised of new developments as this work moves forward. a sn ’ Sfephén Lucas Attach its . . GrahanDemers/Tanguylpe Well badd ey gos ¢ Ass VG anche. ‘w cdine be ote Rain Ragesae Location of the ten Ring of Fire Belt : in Emplacement de la ceinture Hf i du Cercle de feu ‘Geinture u Cercle deeu LEGENDILEGENDE Fiect Nation Communitos! Reserve Cand Communaites des Premiéres nations/ tomes de reson ‘+ Municipalities Municipates Far Nonh Boundary! mates du Grone Nora + Raiiroads/Chemins de fer — RoadsRoutes 100 __ 200 400 600m Se Brae hints Bevconccman as tons Ses Mines 00007000008AGISSOUSE Ea “The Praia of Ont La preite minitre de Ontario Lagi Btn, Gunes Pate Ec starsrbie lati, Cust’ Pad Sonn Oras NOAA nate ‘el (omy Maat May 30, 2016 The Right Honourable Justin Trudeau Prime Minister Government of Qanada Office ofthe Prime Minister 80 Wellington Street Ottawa, Ontario ~ KA 082, ! Dear Re fer Trudeat 1am writing to confirrh my government's cormitment fo working collaboratively with yout government to address both short-term immediate responses to orises like the-one wet are dealing with in Attawapiskat, ang to ‘outline areas where there is an opportunity to address long-term strictural challenges that stand in the way of improving the quailty of life in Indigenous communities. This commitment to closing the gap in education, housing, child anid family services, health care and employment clearly supports reconciliation between Indigenous and non-Indigenous people. Reconciliation is more intportant than ever given thé findings dnd recomitiendati¢tis from Truth and Reconciliation Commission of Cariada published last year, ‘Socio-economic coniltions are parfiaylarly conceming in remate First Nation. comirtifities in notthetn Ontatio, A-corresporiding Sense of hopelessness and ‘powerlessness has become prevalent, especially aitiong youth, The recent suicide crisis in Attawapiskat First Nation is a clear reminder of the utgent need to addréss these issues immediately. Health and Well-being Ontario hais cotnmitted to add/ess the urgent tiealth Care needs jn remote First Nations commirities and will be making immediate investments to health services and community supports ‘000008‘Our governments need to be ready to work together to quickly mobilize support in the facé of potential future orises. | propose that our govetments work with First Nation communitigs to develop an action plan for responding to social emergencies, The action Blan should include a fofrnal First Nation-Ontario-Canada protocol reflecting the roles, responsibilities, and anticipated actions of our governments in responding to social fies in remote First Nation ootnmunities. Gomintunity and Sédcial Infrastritoture | want to acknawledge the recent commitments by the federal government key determinants of health, including infrastructure such as.clean water, housing, remote electrification end roads, We are looking to your government to invest in the infrastructure and services that are required, of-reseive, to address community needs. Specifically, officials from Ontario, working with Indigenaus partners, want to sit dawn with your officials to scope out investments in on-feserve mental health, addictions and healing beritres, pursing stations, modemizing equipment, cultural and community facilities for children, youth ‘and families, sustained broadband corinectivity and housinig supports for Serilors, |. Ontario's developing expertise with models of community hubs could be leveraged to explore efficient and effective ways to struéture these types of infrastructure and the services and programs within them. Qniatio is dlls maving ahead with the developrent ofa multi-year plan for refotm of the broader income security system. Our approach must also include a dedicated and substantive dialague with Indigenous partners. Future trlateral discussions respecting the Indian Welfare Agreement are paft of a broader discussion about how the right supports an be delivered in the right way f0 achieve thé goals of Indigenous communities. Wes look forward fo your government's participation in these diseuesions. Housing ‘The 2016 Federal Budget arthouricad $554.8 million over two years to address urgent hotising leeds onsreserve. Ontario is comimitted to supporting access to housing for Indigenous families: we have dedicated §44:1 milion of the over $800 million contribution of the federal-provincial funding partnership Investment in Affordable, Housing to Indigenous households living off reserve. Further, as part of.our Lonig-Term Affordable Housing Strategy Update, we are working with Indigenous, partners to devélop ant ndigerious Housing Strategy. gees 0010Given its responsibilities on-reserve, we are looking to the federal government to provide ‘adequate funding to respond to the housing needs faced by First Nations. Ontario urges the federal government to take action immediately in First Nation communities in northern Ontario to provide much needed accommodation options for community members and professional service workers. Ontario is prepared to help connect expertise within the broader housing sector in Ontario to work with your government to support the impact of your investments. Connecting Remote Communities to the Grid ‘There are many remote communities in the province that rely on diesel generation to meet their electricity needs. Ontatio has identified the connection of up to 24 of these communities to the provincial electricity grid as a priority. The benefits to these ‘communities of replacing dirty diesel generation with cleaner grid-connection include reduced health risks from pollution, improved quality of life, reduced risk of diese! spills, improved community infrastructure, long-term economic development benefits and regional employment and skills development. The Ontario Ministry of Energy is already engaging with officials at Indigenous and Northem Affairs Canada (INAC) to discuss a cost-sharing arrangement for this vital project, and | hope that our governments can reach an agreement by fall of this year {0 propel this project forward to construction and avoid project delays. am also encouraged by discussions with INAC that indicate that the connection of Pikengikum First Nation to the electricity grid Is a priority for your government. ‘There are also four remote First Nations communities for which it is not economically viable to connect to the grid, but Onterio remains committed to reducing their diesel ‘use by working with these communities to develop innovative, renewable energy solutions to power their development, Ontario has bean doing a lot on this front, including funding for renewable generation and microgrid solutions, but federal support is stil required to reach final, solutions. One specific opportunity is Whitesand First Nation where an innovative wood pellet plant and combined heat and power facilty is being proposed to help provide renewable energy and economic development for the community. Through the Independent Electricity System Operator, we are in the midst of negotiating a Power Purchase Agreement fo support the project but the project would benefit from federal support to make ita reality. We look forward to the federal government's commitment and cooperation in helping remote communities in Ontario to end their dependence on diesel, a commitment that was included in the Vancouver Declaration, Ald 00%Child and Family Services improving outcomes for Indigencus children and youth, including those in care, is an important priority for our government. Through the co-developed Ontario Indigenous. Children and Youth Strategy Ontario and indigenous partners are working together to improve outcomes and edvance the well-being of First Nations, Métis, Inuit, and urban Indigenoys children and youth across th provirice through tHe recognition of jurisdiction and control We acknowledge the federal government's early response to the recent decision of the ‘Canadian Hurhan Rights Tribunal, and its commitment t6 reform federal funding for First Nations child and family services ang expand its narrow definition of Jofdan’s Principle. Reconciliation in child and family services will come from Canada working with Ontario and First Nations fo transform an oul-dated funding mechanism and to ensure that we are prioritizing substantive equality in outcomes for Indigenous children and youth. Early Years and Education { was encouraged to sée the federal government's 2016 budget commit $100 milion in new funding towards on reserve early learning and child care and $23.4 milion for renovations of existirig early learning facilities, particularly given that less than half of First Nations have aocess to licensed child care in their communities, The fetieral tboMmitmelt ta substaritial Investments in First Nations elémentary and secondary ‘eduoation on reserve, inoluding education infrastructure, is also’ cause for optimism. In audition to the over $27 million Ontario provides annually for on reserve child care ‘and child aiid family programs, our goverment recently announced an additional invastmant of $25 millon over three years fo expand access to child and family programs on reserve-as part of our governmentsuide response to the Truth and! Reconciliation Commission's calls to action. We 100k forward to engatiing with your fficials and our First Nations partners on early years and child care priorities, including funding and infrastrticture needs in order to expand access to child care and child and family programs in First Nations communities. ‘While on-resetve education is a federal responsibtty, Ontario remains committed to offering expertise to the federal government and First Nations to help improve the quality of education for Indigenous learners. We. look forward to. exploring opportunities o.imprave the alignment of our education programs dnd services, and to better support ‘students as they transition between First Nation/tederally operated schools andl provincially funded scticals, AB 000012Drinking Water | applaud Canada’s commitment to eliminate boll water advisories in five years and that the 2016 federal budget has committed some §2 bllon over five years for on-teserve water and wastewater infrastructure across Canada in order to meet this ambitious timeline. As 50 per cant of the drinking water advisories in Canada are located in Ontario First Nation communities and 48 per cent of the population affected has been under a drinking water advisory for more than 10 years, we need to ensure that the funding announced by the federal government is allocated appropriately given the situation for Ontario First Nations. | believe that our personal leadership is required to ensure sustained momentum, and :we can share our comprehensive action plan for improving First Nations drinking water. The Province has offered its technical assistance in several areas, including on-site ‘assessments of current water assets, systems feasibility and design, operator training ‘and certification, and source protection watershed planning. | am supportive of this work ‘and look forward to achieving real progress in this area in partnership with First Netions and the Government of Canada. (Our goa! should be to establish a feasible plan over the next five years that would annually see the number of boil water advisories reduced in Ontario, and include tools for ensuring that such ciroursstanoes do not return. Addressing existing drinking water advisories was identified as one of the priorities for tilateral collaboration, and First Nations will need to be involved in setting specific targets. Violence Against Indigenous Women and Girls ‘Thank you for making a National Inquiry into Missing and Murdered indigenous Women and Girls one of your first actions upon taking office. You can be confident that Ontario will cooperate as the Inquiry process rolls out, ‘At the second National Roundtable on Missing and Murdered Indigenous Women and it's in February of this year, | signalled Ontario's commitment to continue to have a leadership role in the development of the pan-Canadian prevention and awareness campaign. | am counting on your support for the development and launch of such a campaign in November ofthis year. Economic Development Opportuntties ‘The Ring of Fire represents a significant regional economic development driver for First Nations communities and for northern Ontario, The Government of Ontario looks to the federal government to, at a minimum, match the.$1 billion the Province has committed ‘to the infrastructure for the Ring of Fire, Ontario has previously signalled that this request should be accommodated through the Natonal Infrastructure Component of the Building Canada Program. 6 000013To support all of this work, Ontario's Indigenous partners, including Political Territorial Organizations, need the capacity to engage with our governments. Your government needs to invest in creating that capacity to ensure the success of our shared ambitious agenda Remote Northem Airports Ontario's 29 remote northem airports are an essential ink for remote First Nations communities for health care, the delivery of goods such as fuel, food and drinking water, ‘and transportation to urban centres and other remote communities. Currerily, however, communities are not guaranteed services for medevae fights or other emergencies ‘outside of current limited operating hours. Approximately 63 per cent af the 2,500 air ambulance flights per year take place after-hours. To increase service levels, an estimated cost of $2.7 million is required ta adequately staff norther airports. In order to make progress on the list of proposed actions affached to this letter, | am asking that your government cortmit to a méetirig between cut responsible ministers and First Nations leadership within three months to discuss these urgent issues and live approach going forward. Ontario's Minister of Aboriginal Affairs, David Zimmer, will be following up with his federal counterparts at Indigenous and Northern ANfairs Canada and other federal departments with further details ‘Yours in partnershi Wo Kathieen Wynne Premier Enclosure ¢: The Honourable David Zimmer Minister of Aboriginal Affairs ‘The Honourable Carolyn Bennett Minister of Indigenous and Northem Affairs 00034Recommendations for Ontario/Canadalindigenous Partner Collaboration Ontario and Canada work with First Nations to develop a protocol for responding to social emergencies. Ontario, Canada and Indigenous partners identify required federal infrastructure investments in on-reserve mental health, addictions and healing centres, nursing stations, cultural and community facilities for children, youth and families, sustained broadband connectivity and housing supports for seniors. . Ontario, Canada and First Nations explore the use of community hub models to deliver efficient and effective services/programs on reserve. ‘Ontario, Canada and Indigenous partners enter into discussions respecting the Indian Welfare Agreement as part of a broader discussion about funding for health and social services in Indigenous communities. As part of this work, and reflecting the recent decision of the Canadian Human Rights Tribunal, develop a new funding relationship to advance the well-being of Indigenous children and youth in Ontario, based on the Ontario Indigenous Children and Youth Strategy co-developed by Ontario and Indigenous partners, The federal government should take immediate action to work collaboratively with First Nations in northern Ontario to provide adequate and affordable accommodation for community members and professional service workers. |. The Ontario Ministry of Energy and Indigenous and Northern Affairs Canada conclude a cost-sharing arrangement for the connection of up to 21 remote Northern Ontario First Nation communities to the provincial electricity grid by fall 2016. . Canada provide financial support to develop energy supply alternatives like renewable generation and microgrid solutions for four remote First Nations communities in northern Ontario for which it is not economically viable to connect to the grid. Ontario, Canada and Indigenous partners develop a plan to expand early years child and family programs on reserve, including increased federal investment in child care facilities. Ontario, Canada and First Nations improve the alignment of education programs and services to better support students as they transition between First Nation/federally operated schools and provincially funded schools. 00001510. Ontario, Canada and Indigenous partners establish and implement a feasible plan to annually reduce the number of boil water advisories in Ontario over the next five years, 11.Canada provide funding to support the launch of a pan-Canadian prevention and awareness campaign on violence against Indigenous women/girls by rae November 2016. 12. The federal government match the Government of Ontario's $1 billion commitment to fund infrastructure for the Ring of Fire. 13. Canada provide funding to Ontario on an annual basis in the amount of $2.7 million to support the hiring of 27 full-time employees, plus an additional 20 seasonal positions, to increase service levels at remote northern airports in Ontario. 000016Goverment Canada Gouvererent du Cnada PmyCoucl Ofce Bureau du Consel pt SECRET 2016-FPTR-00114 InfoXpress: 1750203 Feu Michael Wernick bate: Subject Objet Memorandum for Michael Wernick RING OF FIRE OVERVIEW AND UPDATE. From From: Patrick Tanguy — Vi Stephen Luca: 219) ee Sarees, Information Votre Signature For Decision Material for the P.M. Pour Decision Documents pour le P.M. TONSULTATION ‘CONSULTATION se OTHER PCO / AUTRE BCP. OTHER /AUTRE Year alie 8 SOP 2 ERDP INAC LSM INFC comms MOG Leg. Couns. Dem. Ref FapP sat coooooo REMARKS REMARQUES: c.c.: Serge Dupont DISTRIBUTION 8 Bont aso — een ty 1 Les Linklater Cle 2 ee end 1G Matthew Mendelsohn DRAFTING OFFICER REDACTEUR : GreharvDemers/Fanguylpe Canada we, dn85, Records Operations []x+F] Government at canada Gouvemement dy Canada _ Privy Council Office Bureau du Conseil privé 8 NOV 15 208 Ottawa, Canada Qe 4 eee SECRET _ Gestion des documents MEMORANDUM FOR MICHAEL WERNICK JON. 07 2016 ©.c.: Serge Dupont RING OF FIRE OVERVIEW AND UPDATE (Information Only) SUMMARY ‘The Ring of Fire (RoF) represents an economic development opportunity of national and provincial significance and a catalyst for change in the economy and quality of life for neighboring First Nations communities. The remote region and existing socio-economic issues in the First Nations communities, however, pose challenges for transportation; communications, energy and community infrastructure and for First Nations community health and capacity for full participation in forthcoming economic development. RoF is an Ontario priority and their request for support in the form of a $1 billion infrastructure commitment from the federal government has recently been re-confirmed, though no project-based proposals have been submitted. The federal response to RoF will require coordination and a whole-of- government approach with the identification of leads and articulation of a tailored strategy. Beyond how federal efforts should be coordinated is the need to identify priorities for federal/provincial collaboration and determine whether the focus and strategic vision — regional economic development in Northern Ontario that is supported by long-term investments in enabling infrastructure, sustained by a trained workforce, and that contributes to healthy communities ~ is specific to RoF or should be extended to all of northern Ontario, Background Overview and status of current development \* The RoF is a ctescent-shaped belt of chromite, nickel and base metal deposits in a remote area of the James Bay lowlands 450 km northeast of Thunder Bay. With the value of the resources having been estimated as high as $60 billion, the RoF has been regarded since 2011 by both the federal and Ontario governments as an economic development opportunity of national and provincial significance cK ‘No00042371 Canada oe xSECRET and as a catalyst for change in the economy and quality of life for the First Nations communities. A map showing the area of the RoF is attached at Tab A. Nine Matawa First Nations communities share the traditional territory of the proposed mineral exploration and development area. These communities include highly vulnerable communities whose socio-economic, health and housing crises have persisted in recent years. Others such as Attawapiskat and Kashechewan are downriver and would be affected by the environmental effects of development. A downturn in the commodities cycle, and First Nations opposition to development prior to meaningful consultation and quality of life improvements for their communities, along with the infrastructure challenges described below, has resulted in limited development to date. An underground nickel mine, concentrator and on-site tailings storage project called the Eagles Nest mine, operated by Noront Resources, is proceeding through federal and provincial environmental assessment review, with plans to begin operation by 2020. Government of Canada’s commitment to RoF The RoF implicates several federal departments and agencies with responsibilities for economic development, infrastructure, Indigenous relations, energy, environmental assessment, and health, among others. The federal government has made investments related to skills development, community health, and local economic development planning and capacity building. In the last five years, more than $54.5 million in federal funding has been approved to. support 152 projects, aimed mainly at building the capacity in Indigenous communities. Ontario is bringing renewed pressure on the federal government for support for Ring of Fire. On May 30, Ontario Premier Wynne wrote to the Prime Minister (Tab B) to request that the federal government match funds in the amount of $1 billion from the National Infrastructure Component of the New Building Canada Fund for infrastructure development. On May 26, Michael Gravelle, Ontario Minister of Northern Development and Mines (MNDM), met with Minister Bains in Thunder Bay and expressed hope that Minister Bains would act in the capacity of federal lead, given his responsibility for FedNor and the regional significance of the RoF. Key Challenges ~ Infrastructure One of the primary challenges for development in the region is the lack of regional infrastructure for transportation (road link), communications (broadband) and energy (grid connection). To that end, FedNor and MNDM have co-funded an all-season road feasibility study to examine connecting four Matawa communities and a nickel mining 00001873+ SECRET project to the provincial road system; the study is due to be completed this month. Minister Gravelle confirmed with Minister Bains the province's intention to advance the next phase of technical work for the road project in 2016 with a target for commencing construction by early 2018, and their hope that the federal government will cost-share the next phase of technical work. FedNor and MMDM have also been working together with the Matawa Tribal Council on a business case for fibre-optic connection of remote Matawa communities. The estimated capital cost is between $35 and $45 million. Budget 2016 commitments for broadband and for First Nations infrastructure might be considered to support this initiative. As well, Federal-Provincial Working Groups of senior officials are overseeing the development of a business case to connect 21 remote communities to the provincial electrical grid to reduce reliance on diesel. Ontario recently communicated that it would establish a $75 million Community Benefits Fund for the Matawa First Nations to support infrastructure development and socio-economic programming on reserve. Ontario will request matching funds from the federal government for this initiative. While Ontario has asked for $1 billion in matching infrastructure funds for regional infrastructure, to date, Ontario has not presented a formal funding proposal to Infrastructure Canada to detail projects under this amount. Key challenges - Indigenous community services, wellness, and capacity/readiness ‘The Matawa First Nations communities are small and remote, lack adequate ‘community infrastructure and services on-reserve, experience significant health crises and currently lack skills capacity to fully participate in RoF economic development. Six of nine Matawa First Nations are under boil water advisories, housing needs are unacceptably high, and there are significant gaps in health outcomes, ‘At the provincial level, Ontario and nine Matawa First Nations signed a Regional Framework Agreement in March 2014 to negotiate a process for regional development and decision-making, Areas under negotiation include resource revenue-sharing, regional Infrastructure, environmental review and monitoring, and community benefits. However, the Matawa First Nations overall position on development has been that meaningful progress on improving quality of life for their communities is required before progress can be made in regional infrastructure and resource development. In addition to the proposed Community Benefits Fund, the province is also planning to provide $50 million to the Matawa First Nations for wellness and social programming. While matching funding has not been requested, the province will seek opportunities for collaboration in this regard. At the community level, federal efforts are focused on initiatives to promote community health and well-being; advance the readiness of communities to 000020SECRET engage in discussions; and develop the labour market. Major specific investments have included - Employment and Social Development Canada provided $7.7 million for training through the Ring of Fire Aboriginal Training Alliance; ~ FedNor provided $4.4 million to Nishnawbe Aski Development Fund for skills training and business development for First Nation communities; ~ Health Canada approved $3.1 million over the last three years to assist Matawa communities address prescription drug abuse issues; and Indigenous and Northern Affairs Canada (INAC) allocated more than $13.8 million for community capacity building and mining readiness through the Strategic Partnership Initiative (SPI), 5.60(109)0: ) Project. This project will test a whole-of-government approach to community development with three remote Matawa communities. Chiefs presented their priorities to Associate Deputy Ministers in February 2016; they included housing, water, education, and health. Government of Canada support for environmental assessment and sustainable resource extraction ° The Canadian Environmental Assessment Agency has provided $190,000 to Indigenous groups to participate in activities related to the environmental assessment of Noront's proposed Eagle's Nest mine. Four Matawa First Nations received funding. The province of Ontario is working with Natural Resources Canada (NRCan) to clarify First Nations participation in the environmental assessment process pertaining to the Eagles Nest development ® In.2015, NRCan launched a five-year, Chromite Mines to Market initiative to advance the technological R&D required to bring chromite resources to the market in a responsible manner while maximizing the value and benefits from Canadian mineral deposits. PCO Comment 5.24(4)0) 000215.1910) SECRET To better position Indigenous communities, businesses and individuals to benefit from major resource developments in the RoF, continuing federal leadership will be required to coordinate information-sharing, communications and program investments across federal departments and to organize and guide federal efforts to address critical areas of development. The Government's commitment to renewed engagement with Indigenous Peoples and Budget 2016 investments for First Nations communities provide an opportunity to align federal and provincial priorities on Indigenous engagement and community development in the region to address key challenges. Going forward, federal/provincial collaboration will encompass investments in a number of complex priorities; they include: - Regional Infrastructure (transportation, telecommunications connectivity, electrification); ~ Community infrastructure and resilience (drinking water and waste treatment, housing, health, addiction); = Community readiness (wellbeing, employment and training, business and economic development, financial and project management capacity); and = Regional economic development (mineral development, ecotourism), ‘A meeting of Associate Deputy Ministers, led by INAC, was held on May 31 to begin to consider crucial questions for discussion: how the federal government should come together to articulate and implement a vision with Ontario, what outcomes of a federal/provincial meeting on RoF might be, and whether the area of focus for federal/provincial collaboration should be focused solely on RoF or broadened to a strategy that responds to needs across northern Ontario. Next steps in the coming weeks will be for senior officials from relevant departments to identify priorities for federal action, articulate desired outcomes and develop a workplan for coordinating federal efforts towards engaging the province using a whole-of-government approach. We will keep you apprised of new developments as this work moves forward. ===) ‘Sfephén Lucas Attachments ¥ : ‘ Graham/Demers/Tanguyipc Welk bold 2 an gs ¢ the Pa ere ‘ws elunee S) bed cle I Qari a000028aw Location of the are Ring of Fire Belt ep as se Emplacement a de la ceinture ow du Cercle de feu Ring of Fite 8 ot vayoe va eget ae : = ree, SG eat iment Cee Ss peintleen™ HE ioe ra “Timmins. we Sault ? Sie one aes LEGENDILEGENDE sydoury arabs Fist Nation Communities i % 1 Retene tang d orth Bay 4 Cemminsutes des Premieres nations/ we mw teres de rezone > - al + Muripatiesntunicipaltes — Fecwoth sound Cmte eu Grane Nora , Rairoads/Chemins de fer RoadeiRoutes “4 2100 200 400 e00Km 2 a ria hinaie cs Beeloprnc os NaS es Mos 00002400025ea ‘The Premier of OntatT6 iv hip, Cer Pa a arn One MTA ore May 30, 2016 ‘The Right Honourable Justin Trudeau Prime Minister Government of Ganada Offios ofthe Prime Minister 80 Wellington Street Ottawa, Ontario 4 KIA 0A2 ee ( Dear Rét lihister Trudeau: La premiée ministre de 'Cntrio Eeiae de rssorbise gilts, aueen's Pak “ore (Onto) MTA TAS J am writing to confirh my government's coftimitifient fo working collaboratively with your goveininent to address both shor-farm immediate responses fo erises lke the one we are dealing with in Attawapiskat, ane to outline areas where there is An opportunity to address long-term sirctural chaifengesthat stand in the way of irproving the-quality of life in Indigenous communities. ‘This commitment fo closing the gap in education, housing, child avid farilly services, health care arid employment clearly. supporls tscondiiation betvesn Indigencus arid ‘non-indigenous people, Rectnciliation is mere intortant than ever given the findings dnd recommendations from Truth and Reconciliation Commission of Canada published last year, ‘Socio-economic conditions are particularly vonceming in remote Fret Nation comhimufities in notthern Ontario. A conesponding Senge of hopelessness and powerlessness has become prevalent, espedaliy airiong yout, The recent Suicide crisis in Attawapiskat First Nation isa clear temifder ef the urgent need to addiéss these issues immediately. Health and Well-being Ghiatio hats corhmnitied to address the urgent trealth caré Agetis in remote First Nations: comminities and will be making immediate investments to health sefvices and community supports‘Gur govarrments need to be ready to work together to quickly mobilize support in the face of potential fulure ciises. | propose that our gavermments work with First Nation ‘communities to develop an action plan for responding to social emergencies, The action plan should inolude a fortha! First Nation-Ontatio-Canaida protocol reflecting the rales, responsibilities, and anticipated actions of our governments in responding to sosial tises in remote Firsi Nation commurities. ‘Comintinity and Social Infrastrizoture | want to aoknawledge the recent commitments by the fédéral govetnment to invest in key detemminants of health, including infrastmmeture such as cleah water, housing, remote electrification and roads, We are looking fo your government to invest in the infrastructure and services that are required, an-reserve, to address community needs. Specifically, officials from Ontario, working with Indigenous partners, want to sit dawn with your officials to-scope out investments in on-feserve mental health, addictions and healing veritres, nursing stations, modemizing equipment, cultural and community facilities for children, youth dnd families, Sustained broadband connectivity and housing supports for Seniors. Ontario's developing expertise with models of community hubs cul be leveraged to explore efficient and effective ways to structure these types of Infrastructure and the seIviges and programs within ther. Ontario is also moving ahead with the developient of a multi-year plan for reforth of the broader income segurity system, Our approach must also include a dedicated and substantive dialogue with Indigenous parthefs. Future tflateral discussions respecting the Indian Welfare Agreement ate part of @ broader discussion about How the right supports Gan be deliveréd in thé right way to achieve ths goals of Indigenous communities. We look forward fo.your government's partisipation in these discussions. Housing The.2018 Federal Budget annouriesd $654.8 million over two years to address urgent hoUsitig ri¢eds on:reserve. Ontario Is comtritted to supporting access to housing for Indigenous families; we have dedicated $44:1 million of the over $800 million coftribution of the federal-provincial funding partnership Investment in Affordable Housing {6 Indigenous houssheids living off feserve. Further, ag part of our Long-Term Affordable Housing Strategy Update, we are working with Indigenous partners to develop ani Indigenous Housing Strategy. ‘000027