Business Partnerships
HOW WILL THE SEPA SUPPORT KASKA ECONOMIC DEVELOPMENT?
The SEPA supports Kaska to develop large, profitable, and sustainable corporations that employ Kaska members and generate revenues for Kaska programs. The SEPA includes commitment from Selwyn Chihong to set aside large portions of the mine-servicing businesses for Kaska-Selwyn Chihong joint-venture (JV) companies only. All of the services related to trucking and hauling of mine concentrates and catering and camp support will be set aside for Kaska-Selwyn Chihong JV corporations. The SEPA also provides an opportunity for Kaska to partner with Selwyn Chihong in investing in a Liquefied Natural Gas (LNG) plant that will sell LNG to the mine and other customers in the region. Profits from each of these JV businesses would be shared with Kaska.
SELWYN CHIHONG COMMITS TO PARTNERING WITH KASKA TO BUILD COMPANIES THAT WILL:
- Operate profitably on market principles and produce a reasonable return on investment.
- Provide high standards of service and professionalism.
- Be flexible to meet changing Project requirements.
- Be managed by the Selwyn Chihong in the beginning, but transferred to Kaska over time.
Selwyn Chihong will lend the money to Kaska for them to buy shares in the JV companies. In the beginning, a portion of the Kaska profits will be used to repay the loan. Once the loan is repaid then 100% of the Kaska share of the profits will be paid to the Kaska.
TOGETHER, SELWYN CHIHONG AND KASKA WILL BUILD THREE COMPANIES:
Liquefied Natural Gas (LNG) Investment Company
- Investment in the development of a liquefaction facility that will provide LNG to the Project:
- A qualified LNG company will be found to own, operate and manage the facility.
- Excess LNG will be sold on the open market by the company that owns, operates and manages the facility.
Hauling and Warehousing Company
- Provision of transportation and warehousing services associated with the supply of the mine and the concentrate haul through Watson Lake to Stewart. This company will:
- Own the concentrate haul trailers.
- Own a significant portion of the trucks but opportunities for individuals and small firms will be provided.
- Own the warehouse, garage, equipment and facilities.
- Look to provide services to other customers.
At the end of the Project, Selwyn Chihong will give its shares of this company to Kaska.
Camp Support Company
- A business providing camp services to the Project. The company will:
- Own the camp facilities.
- Provide the administration, logistics and staff to deliver services including lodging and catering services.
- Look to provide services to other customers
At the end of the Project, Selwyn Chihong will give its shares of this company to Kaska.
