VANCOUVER (miningweekly.com) – TSX- and ASX-listed Champion Iron has signed an impact benefit agreement (IBA) with the Innu of Takuaikan Uashat mak Mani-utenam (ITUM) First Nation, confirming local support for the Bloom Lake iron mine, located near Fermont, Quebec.

The IBA is a life-of-mine agreement providing for real participation in the mine by ensuring training, jobs and contract opportunities, and guarantees that the ITUM will receive fair and equitable financial and socioeconomic benefits. According to the First Nation, the latest accord represents a significant improvement over the initial one, signed in 2008, regarding environmental protection measures and ITUM's monitoring of it.

Signed on Wednesday, the IBA also contains provisions recognising and supporting the culture, traditions and values of the ITUM, including recognition of their "bond with the natural environment".

"The rule for us is clear: if a company wants to develop our natural resources, it has to respect our rights as the inheritors of our territory - our Nitassinan. Some companies persist in not respecting our rights, while others, such as Champion Iron, act as responsible, law-abiding corporate citizens, respectful of First Nations' rights. The partnership with Champion Iron is a positive example of collaboration between First Nations and industry and this approach must influence other businesses on our traditional lands," stated Chief Mike Mckenzie in a press release.

“The successful conclusion of the IBA further strengthens Champion and [subsidiary] Quebec Iron Ore’s positive working relationship with the ITUM and we look forward to a beneficial future for all parties as Bloom Lake enters into its next phase, having recently completed a positive feasibility study. The signing of the IBA is a major milestone and a significant step towards the Bloom Lake restart,” Champion president and CEO Michael O’Keeffe added in a separate statement.

Champion in February published the results of a feasibility study on Bloom Lake, demonstrating a financially viable and competitive project in current global markets.

Compliant mineral reserves have been estimated at 411.7-million tonnes grading 30% iron, and the operation is forecast to generate more than $15-billion in revenue over the next 20 years. Champion believes Bloom Lake has the potential to be one of the region’s most important long-life iron-ore mines and a significant contributor to the local and national economies.