Rio Tinto Alcan wins Supreme Court appeal over major BC Hydro power deal

OTTAWA - Rio Tinto Alcan has won a Supreme Court of Canada appeal over a major power deal with British Columbia Hydro, prompting a tribal council representing eight First Nations to consider suing for damages.

The Carrier Sekani Tribal Council had complained that the provincial utilities commission, which approved the deal, had a duty to consult natives before making its decision.

The tribal council represents First Nations west of Prince George, B.C., and is concerned about the impact the agreement might have on fish in the Nechako River.

The Supreme Court granted Rio Tinto Alcan's appeal, saying that the Sekani's rights were not adversely affected by the deal, and as a result were not entitled to consultations.

The power deal gives BC Hydro long-term access to a portion of the electricity produced at Alcan's Kemano generating station near Kitimat, where the company has a major aluminum smelter.

In a release from Montreal, Rio Tinto Alcan welcomed the high court ruling.

"Rio Tinto Alcan acknowledges the Supreme Court of Canada's decision and is grateful to have it behind us so that we can continue to focus on taking positive steps forward with all First Nations and stakeholder relationships in our operating area," said Paul Henning, the aluminum miner's vice-president of B.C. operations.

The high court's decision overturned a ruling by the B.C. Court of Appeal in February 2009.

Thursday's written decision said the issue now is not consultation about the further development of the resource, "but negotiation about compensation for its alteration without having properly consulted in the past."

Terry Teegee, vice-chief of the tribal council, said the ruling has encouraged First Nations to sue Alcan for damages.

"We're disappointed with the decision but really it opens the doors for damages for First Nations, particularly our First Nations that are affected by the dam," he said.

Three of eight First Nations are in the Nechako River basin and will be directly affected by the deal, he said.

All eight band chiefs will meet on Monday to discuss compensation.

"What we were trying to do was get more consultation in the way the dam operates," Teegee said. "In particular because it affects the flow of the Nechako River, which has a salmon species we depend on which also has the white sturgeon, which is listed as a species at risk."

Rio Tinto Alcan, the former Alcan Ltd., is a unit of Rio Tinto Group, one of the world's biggest miners. The group is headquartered in the UK, combining Rio Tinto plc, a London and NYSE-listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange.

Rio Tinto produces aluminum, copper, diamonds, coal, uranium, gold, industrial minerals and iron ore from mines and mills in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa.