First Nations CEO discusses loans program at Toronto conference

By Sam Laskaris

TORONTO – First Nations are playing a significant role for various mineral exploration and mining projects in their territories.

Kristan Straub, a member of Henvey Inlet and French River No. 13 First Nation, offered his views on this issue at the Prospectors & Developers Association of Canada (PDAC) conference held in Toronto.

Straub, who is the president and CEO of the Canada Indigenous Loan Guarantee Corporation (CILGC), was a panellist at the PDAC conference held Mar. 1-4.

He spoke at a session titled Financial innovations for equity partnerships: Federal and provincial loan guarantees as a catalyst for Indigenous-led development and Canada’s trade future.

Straub provided details on what proponents are doing correctly when it comes to the initial setup of deals.

“I think the first place the proponent is getting right is coming with an established, trusting relationship with Indigenous partners,” he said. “The projects that we see that come forward, where that relationship exists, it’s a much easier process. And I think it’s much easier because the relationship is already there.”

Straub also said groups need to have a sound fundamental business plan and support behind it.

“The loan guarantee program is there to serve and to work with the Indigenous groups and for us to understand what it is that they’re trying to see is the outcome,” he said. “And there are certain things that we can work within that deal to meet either what the Indigenous groups are expecting out of it, what stage the project is at and when the loan guarantee starts.”

The CILGC was established in December of 2024. It announced its first federal deal last July. That loan guarantee covered $400 million of a $736 million investment by 38 First Nations in British Columbia to have a 12.5 per cent ownership stake in Enbridge’s Westcoast pipeline system.

“Yes, we only have one deal announced,” Straub said. “But we have worked on many other ones. And hopefully very soon we’ll hear about some of what those other deals are that have been announced both with provinces and outside of the provinces.”

The Enbridge project included a pipe that had been in the ground for decades. Thus, it was deemed an existing operating asset as opposed to a greenfield project.

Straub was asked what lessons could be garnered from that deal and applied to other mining projects.

“There are some assets that are active out there right now,” he said. “So, I wouldn’t say that mining is only on that greenfield sector. But I do also recognize that we do have a mandate and there’s a tremendous opportunity to handle the critical minerals.”

Straub also said there has been some adaptability for the loan program since its inception.

“Our program was launched with some specific objectives for the first $5 million,” he said. “And from First Nations and Indigenous groups I had a lot of feedback that the loan guarantee program wasn’t broad enough at that time. And the current government listened and it came back, both expanded the dollars, the wallet for the portfolio, but also expanded what the loan guarantees can go for.”

This expansion allowed more for broad-risk categories. And that is why Straub said there is plenty of action occurring in terms of projects that are taking place and will be formally announced in the near future.

Straub said CILGC officials, as long as they’re engaged early, are available to accompany Indigenous parties on their business journeys. He stressed companies also have a crucial role to play, including the creation of relationships with Indigenous communities.

“It takes both of those parties to do that, to map out what that looks like today,” Straub said.