Julio Mejia and Elmira Aliakbari are analysts at the Fraser InstituteIn a recent decision, the Supreme Court of British Columbia granted “Aboriginal title” — essentially, the right of indigenous people to own their ancestral land — in Richmond, BC, where private businesses and farmers already hold title. The landmark case, which is under appeal, will discourage badly needed investment in the province’s struggling economy. According to the ruling, Cowichan Tribes and other First Nations hold title over land they once used as a fishing village before British colonization. By casting doubt on who actually owns the land, the ruling severely undermines the legal certainty investors rely on, likely deepening the decline of investment in BC's energy and mining sectors.In 2023 (the latest year of confirmed data), investment in BC’s mining, oil, and gas sector totalled $7.7 billion, which was 24% below the record $10.2 billion reached in 2011 (inflation-adjusted). And in the mining sector alone, from 2023 to 2025, investment dropped from $2.54 billion to a projected $2.06 billion — a 19% decline. This decline in investment in BC comes at a time when global demand for energy and mining is on the rise..ALBERS: A pivot away from national media.The last thing BC needs is more uncertainty over property rights and land ownership. In fact, according to a 2024 survey of mining investors, 76% of respondents said uncertainty over disputed land claims in BC deterred investment — the top policy concern among respondents for the province. And that was before this month’s “Aboriginal title” court decision. A 2023 survey of oil and gas investors showed similar results, with 83% of respondents raising the same concern. Clearly, improving predictability and certainty regarding land rights is essential to restore investor confidence in the province.Unfortunately, the provincial government has contributed to the problem. In 2024, Premier David Eby unilaterally froze existing mining exploration permits, requiring prospectors and mining developers to negotiate with indigenous groups before resuming operations. .Earlier this year, the Eby government introduced a new “staking” rule, which forces miners to consult with First Nations to assess how their exploration claims might impact indigenous “culture, spirituality, environment, and economy.” These measures increased uncertainty for investment, especially in regions with multiple First Nations communities.Finally, rather than benefiting indigenous people, these decisions—and the uncertainty they create — will ultimately hurt them. Reduced investment in the energy and mining sectors leads to fewer development projects and fewer jobs. These industries are not only among the largest employers of indigenous peoples but also generate broader economic benefits for their communities. .PINDER: The unfortunate values of Mark Carney.According to the latest data from iTotem Analytics, an indigenous-owned data science firm in BC, from 2018 to 2021, BC’s natural gas industry spent roughly $540 million buying from approximately 100 indigenous-affiliated businesses in the province. More broadly, in 2024, the oil, gas, and mining sectors contributed $11.8 billion to the province’s economic output, supporting nearly 32,000 direct jobs and paying wages significantly above the average.The recent BC Supreme Court ruling, combined with onerous policies from the provincial government, has made the province less attractive to business and investment, particularly in key sectors such as energy and mining. Far from advancing indigenous prosperity, introducing uncertainty over property rights hurts all British Columbians, including First Nations.Julio Mejia and Elmira Aliakbari are analysts at the Fraser Institute
