How this northern Alberta First Nation used 'community capitalism' to raise living standards
Fort McKay First Nation (FMFN) is an Indigenous success story. Situated along the Athabasca River, north of Fort McMurray in Alberta, the community has raised living standards for its members through revenue generated by First Nation-owned companies.
According to a 2020 FMFN financial report, the community generates 97 per cent of their revenue from such companies, with an average gross annual revenue of $1.7 billion over the course of five years.
The First Nation, which has 900 band members of Dene and Cree heritage living on the reserve and abroad, has emerged as a leader in Indigenous economic development. A 2018 Fraser Institute report attributed this success to “community capitalism.”
FMFN’s involvement in the oil sands industry began in 1986 with the establishment of the Fort McKay Group of Companies, a 100 per cent First Nation-owned oil sands construction and services company. The First Nation oversees twelve companies through its wholly-owned holding company, Fort McKay Landing LP.
FMFN has navigated environmental impact assessments, profit-sharing agreements, and consultation processes. “We place great emphasis on ensuring that we are actively involved in the decision-making process, ensuring our land and resources are protected for future generations,” said FMFN Chief Raymond Powder.
National Post spoke to Powder about how the First Nation strikes a balance between business and culture and how they have used their profits to grow their community’s economy. This interview has been edited and condensed for clarity and length.
How did FMFN first get involved in the oil sands industry, and what have been the biggest milestones?
FMFN was historically a trapping and fishing community. As those industries declined, we saw the oil sands as an opportunity for transition and adaptation. Partnering with oil sands companies allowed us to shift to a new economic base, and through our involvement in extraction and refining operations, we created a steady revenue stream. Our biggest milestones include the formation of the Fort McKay Group of Companies, which has become a cornerstone for our community’s economic self-sufficiency. Additionally, partnerships with companies like Suncor and the East Tank Farm project, a joint venture with other Indigenous groups, have been integral in diversifying our economic base.
How do the revenues generated from the oil sands sector benefit Fort McKay residents?
The revenues from oil sands operations through Fort McKay Group of Companies have been reinvested back into our community. We’ve built schools, a wellness centre, and housing, improving living conditions and community services. We also focus on educational programs, employment training, and health services to provide our residents with the tools and resources they need to succeed. Our goal is to ensure that youth have access to both career opportunities in the oil sands sector and beyond.
How does FMFN ensure that young people have access to education and career opportunities?
We offer numerous initiatives that connect youth with education and career opportunities. These include trade shows, educational fairs and post-secondary support programs. While many community members work within the oil sands sector, we are actively working to ensure that our youth have the skills needed to pursue careers outside the industry as well. We are committed to fostering educational success, which, in turn, supports the community’s growth and development.
What’s the long-term vision for economic self-sufficiency, especially in light of oil production being finite?
We are focused on economic diversification and long-term financial sustainability. Through equity partnerships, like Thebacha (a partnership that saw FMFN and the Mikisew Cree First Nation acquire a 49 per cent equity position in a Suncor facility north of Fort McMurray) we have positioned ourselves to invest in ventures that will provide long-term returns. This includes renewable energy and other industries, allowing us to build wealth that supports future generations. Our long-term strategy also involves working closely with other Indigenous communities, such as those in the Athabasca region, to address shared economic and environmental challenges.
How does Fort McKay balance economic opportunity with environmental responsibility, especially when it comes to oil sands development?
At FMFN, balancing economic growth with environmental stewardship is vital. We work closely with oil sands companies to ensure high environmental standards and maintain our own internal monitoring systems for better transparency. We are committed to minimizing the environmental impact while providing jobs and economic opportunities for our community. The key to our success has been ensuring that economic benefits do not come at the expense of our environment.
Can you explain the significance of Moose Lake and the efforts to protect it?
Moose Lake holds deep cultural and spiritual significance for our community. It is a sacred area where we engage in traditional practices such as hunting and fishing. The area is threatened by industrial encroachment, and we have fought tirelessly to protect it. We’ve advocated for buffer zones and restrictions to ensure that Moose Lake remains pristine and that our future generations can continue practicing their traditional ways of life. The lake symbolizes our fight for land rights, cultural preservation, and environmental stewardship.
What are the next steps in strengthening Fort McKay’s land rights?
We are actively asserting our land rights and seeking greater autonomy in governance. Part of this includes addressing historical land agreements and ensuring that resources like oil sands are properly factored into our treaty agreements. Strengthening our sovereignty is a key priority, and we are working to ensure that our rights over land and resources are recognized and respected by provincial and federal governments.
How does FMFN collaborate with other Indigenous communities in the region?
Collaboration is central to our economic strategy. We work closely with neighbouring First Nations such as the Athabasca Chipewyan and Mikisew Cree to address shared economic, environmental, and political issues. This includes joint ventures with oil sands companies and collective efforts to protect our land and resources. By working together, we can ensure that all communities benefit from regional development and share resources to maximize our bargaining power.
Looking ahead, what are the biggest opportunities and challenges for Fort McKay First Nation in the next 10-20 years?
The biggest opportunities lie in diversifying our economy, building long-term financial sustainability, and continuing to strengthen our sovereignty. However, challenges such as fluctuating global markets, resource dependency, and environmental concerns remain. We are focused on overcoming these challenges through strategic investments, collaboration with other Indigenous communities, and continued investment in our people and education. Our vision is to ensure that FMFN remains a self-sustaining, thriving community for future generations.
This is the latest in a National Post series on How Canada Wins. Read earlier instalments here.
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