Relationship Building With Aboriginal Communities Will Come Into Focus For Resource Players

The Supreme Court of Canada (SCC) has released two recent seminal decisions that will significantly impact resource development projects where Aboriginal interests might be affected. As M&A activity in the infrastructure, oil and gas and mining sectors unfolds in 2015, we expect buyers of and investors in Canadian targets involved in resource development to pay increasing attention to whether appropriate consultation and accommodation have occurred with local Aboriginal communities, particularly those with existing or potential title claims.

While the practical effect of these decisions will principally be driven by the circumstances of each resource development project, we anticipate due diligence reviews in the transaction process to become more focused on ascertaining potential risks and liabilities associated with possible infringement on Aboriginal title.