
At the end of last year, Canada launched a $1 billion initiative to promote “economic reconciliation” with the country’s so-called First Nations. The federal government’s Indigenous Loan Guarantee Program – allocating C$10 billion (US$7 billion) – seeks to help indigenous communities obtain ownership rights in major projects, from renewable energy to mining and infrastructure.
Through the Canadian Indigenous Loan Guarantee Corporation (CILGC), these communities can now access affordable financing to invest in projects that directly impact their lands, transforming them from bystanders to active partners in decision-making.
The legacy of colonialism is still very strong for Indigenous people in Canada. Centuries of displacement, land loss, and discrimination have created deep social and economic inequalities, leaving many communities with higher poverty rates, limited access to education and health care, and difficulties obtaining financing from banks. The Canadian government’s proposed “economic reconciliation” is part of a broader national effort to address these injustices.
Political scientist Neil Tomlinson of Metropolitan University in Toronto points out that previous projects were often imposed with little or no consultation with Indigenous people. “The courts have already recognized the government’s duty to consult First Nations, but partnership goes beyond that. It’s about sharing benefits, not just talking,” he explains.
This shift is particularly evident in the mining sector. The First Nations Megaprojects Coalition (FNMPC), representing more than 170 communities, has become a central voice advocating for governance, transparency and environmental responsibility in Indigenous-led development. His message is clear: First Nations are not against natural resource projects. They just want it done on their own terms, while respecting the land and community values.
“Environmental stewardship is at the core of everything we do,” says Mark Podlaslie, CEO of FNMPC. Speaking at the Responsible Mining Leadership Forum in London, Ontario, he highlighted the Mi’kmaq people’s concept of “two-eyed vision” (etuaptmumk), which combines indigenous and Western perspectives to balance science and ancestral knowledge. “There are ways to build projects that respect both,” he said.
Of the 470 major natural resource projects under construction or planned over the next ten years – worth an estimated $370 billion – many are located on indigenous lands. This has forced large corporations and the government to realize that First Nations consent is no longer optional.
After repeated defeats in the courts, they concluded that the best path was to engage local communities through fair participation and decision-making power. Thus the success of Canada’s economic strategy increasingly depends on the participation of Indigenous peoples.
Companies like Vale Base Metals (VBM), manager of Vale’s metals-to-energy business, are recognizing this new reality. Such partnerships “reflect the importance of collaboration, mutual learning and building trust between industry and First Nations,” VBM said in a statement. According to the company, business is strengthened with the participation of indigenous people, which helps shape new forms of cooperation and responsibility in the mining sector.
However, as Assembly of First Nations (AFN) National Chief Cindy Woodhouse explained via local media APTN, many communities still lack basic infrastructure such as roads, housing and energy, making participation in large projects a challenge. AFN also warned that the loan guarantee program may not fully take into account the high risks of mining, which often requires years and significant investments before returns are achieved.
“Reconciliation through economics is not without tensions,” warns Tomlinson, noting that measuring the costs and benefits of development is complex and often generates disagreement within First Nations communities.