The B.C. Liberal government signed a deal with two First Nations bands Tuesday to share millions in tax revenues when the New Afton mine begins production in 2012.

The deal could be a template for the rest of the province, with more such agreements in the offing.

Cabinet ministers and First Nations leaders gathered at an arbour on the Tk’emlups Indian Band reserve for a signing ceremony.

Randy Hawes, Minister of State for Mining, estimated the 37.5 per cent share of taxes will equal $2.5 million a year, split equally between the Tk’emlups and Skeetchestn Indian Bands.

The deal is expected to provide $30 million over the 12-year life of the copper-gold mine on Kamloops’ western boundary. It is the first of its kind in Canada to share royalties from a hard rock mine. The province has signed royalty sharing deals with First Nations for oil and gas.

“This is a historic event,” said Tk’emlups Indian Band chief Shane Gottfriedson, noting it comes on the eve of the 100-year anniversary of the Sir Wilfred Laurier Memorial, an important historical event for Shuswap First Nations.

The agreement took several years to work out and comes after an earlier deal with New Afton owner New Gold Inc. that provides jobs for members of the two bands.

Gottfriedson said negotiations were difficult. Late in 2008, the bands asked then-national chief Phil Fontaine to help talks when they came to a stalemate. Premier Gordon Campbell was also involved.

The deal is expected to be the first of a series in B.C. The province is set to announce a similar agreement for the McLeod Lake Indian Band, in northern B.C, which is nearby the Mount Milligan mine under development.

Hawes said the province is willing to cut First Nations a share of its tax revenues from mines in their locales, providing they are new or significantly upgraded.

That will include Highland Valley Copper and Copper Mountain at Princeton.

In return for the sharing agreements in traditional territory of local bands, Hawes said the province and industry receive certainty of tenure.

“Uncertainty is a killer for investment, particularly offshore.”

Pierre Gratton, president of the Mining Association of B.C., welcomed the tax sharing deal. He said B.C. is showing leadership internationally by cutting First Nations a share of taxation.

“Over the past 15 or 20 years the mining industry and experts have talked about the benefits of sharing. No jurisdiction has done what’s being done in B.C.”

Hawes said neither the percentage nor the amount of money will be a template for other mines and First Nations. Each will be worked out individually.

Gottfriedson and Rick Denault, chief of the Skeetchestn band, said money will go to economic development, health and education for band members.

cfortems@kamloopsnews.ca