Labrador's Innu Nation drops lawsuit, injunction application over Muskrat Falls

Innu Grand Chief Etienne Rich (Innu Nation), left, Deputy Grand Chief Mary Ann Nui (Innu Nation) and Chief Eugene Hart (Sheshatshiu Innu First Nation) outside the Supreme Court bof Newfoundland and Labrador in St John's after filing lawsuits against the Governments of Canada and Newfoundland and Labrador over Muskrat Falls rate mitigation agreement August 10th, 2021. THE CANADIAN PRESS/HO - Innu Nation, Greg Locke

Labrador's Innu Nation is ending its legal actions against Ottawa and the Newfoundland and Labrador government over a recent $5.2-billion refinancing deal for a troubled hydroelectricity project.

A joint statement issued Wednesday by the federal and provincial governments and the Innu Nation says the parties have reached an agreement and the Labrador First Nations group will retract its lawsuit and its application for an injunction against the deal.

It says the federal and provincial governments have agreed to consult the Innu Nation about any financial restructuring of hydroelectric projects on the Lower Churchill River in Labrador.

The Innu Nation announced it had launched a suit in August, saying it was left out of the refinancing deal for Muskrat Falls announced in July by Prime Minister Justin Trudeau and Premier Andrew Furey.

The $5.2-billion deal was aimed at helping the province pay for the massive hydroelectricity project that has nearly doubled in cost to $13.1 billion.

The project has flooded Innu lands and threatens to increase methylmercury levels on downstream Indigenous hunting and fishing grounds.

This report by The Canadian Press was first published Sept. 30, 2021.