Labrador Innu reach agreement with governments on Muskrat Falls

The Innu of Labrador withdraw their lawsuit against Ottawa and the Government of Newfoundland and Labrador over the recent $ 5.2 billion refinancing agreement for the Muskrat Falls hydroelectric project.

A joint statement released Wednesday by the federal and provincial governments and the Innu Nation indicates that the parties have reached an agreement and that the Indigenous peoples of Labrador are withdrawing their lawsuit and their request for an injunction against the agreement.

The federal and provincial governments have agreed to consult with the Innu on any financial restructuring of hydroelectric projects on the lower Churchill River in Labrador, the statement read.

The Innu had announced in August that they were filing a lawsuit, saying they had not been involved in the deal to refinance the struggling Muskrat Falls hydroelectric project. The deal was announced in July by the Prime Minister Justin trudeau and Premier Andrew Furey.

The $ 5.2 billion deal aims to help the provincial government finance this massive hydroelectric project, the cost of which has nearly doubled to $ 13.1 billion. Many were concerned that Newfoundland consumers would face significant price hikes to offset cost overruns.

Construction of the Muskrat Falls dam flooded Innu lands and now threatens to increase methylmercury levels in Indigenous hunting and fishing grounds downstream of the infrastructure.

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