Done deal for Whale Tail
KIA strives for balance between environment, economic growth
Darrell Greer
Northern News Services
Wednesday, June 28, 2017
QAMANITTUAQ/BAKER LAKE
The Kivalliq Inuit Association and Agnico Eagle Mines dotted their I's, crossed their T's, and hammered out an Inuit Impact Benefit Agreement for the mining company's Whale Tail gold deposit, located about 50 kilometers north of the Meadowbank gold mine.
Dominique Girard, Agnico Eagle Mines vice-president of Nunavut operations, left, and company president Ammar Al-Joundi, sign the Inuit Impact Benefits Agreement for the Whale Tail gold deposit on the land near Baker Lake with Kivalliq Inuit Association president David Ningeongan and vice-president Raymond Nigeocheak in Baker Lake on June 15. - photo courtesy of Gabe Karlik |
The IIBA saw a $6.5-million payment go to the Kivalliq Inuit, which included $3 million paid to a community initiative fund on June 15.
The agreement, signed June 15 in Baker Lake, also provides the association with 1.4 per cent of net gold production, plus $3.6 million for annual training programs and a preference point system to Nunavut Tunngavik Inc. registered companies.
An additional $1 million in training investment will be provided if Inuit employment goals are not met.
The association can look at renegotiating the Whale tail benefit agreement every three years.
Agnico plans to begin open-pit operations at Whale Tail in 2019, with ore from the deposit being milled at the Meadowbank mine.
The company expects to spend $1.2 billion U.S. developing the Whale Tail and Meliadine (near Rankin Inlet) projects during the next three years.
When both Whale Tail and Meliadine are in production, they will generate about $66 million per year to Kivalliq communities in payroll, with an additional $500 million per year going towards goods-and-services contracts.
The Whale Tail and Meliadine deposits are expected to extend operations at Meadowbank by 14 years.
Kivalliq Inuit Association (KIA) president David Ningeongan said it's always of paramount importance to balance protection of the environment with the promotion of economic development.
He said it was a relief to finally come to agreement with Agnico and get the Inuit Impact Benefit Agreement (IIBA) signed.
"We negotiated the Whale Tail IIBA for several months and, before that, we renegotiated the IIBA for the Meadowbank project, so, we basically worked back-to-back on two agreements," said Ningeongan.
"We did our best to enhance the previous agreement we had for Meadowbank, and managed to negotiate significant improvements, overall, with the Whale Tail agreement, which included a $3 million community-initiative fund which we didn't have in the previous agreement.
"There were some tense moments during the negotiations when we just couldn't agree on some issues, with us (KIA) wanting more and them (Agnico) wanting less, so we both had to compromise to reach a deal.
"There were moments when we had to leave each-other alone, clear our heads, get back on track and get the agreement done."
Ningeongan said Kivalliqmiut do a lot of traditional harvesting, and the KIA always wants to ensure the region's wildlife habitat is not negatively impacted during any stage of economic development, especially in areas such as calving grounds.
He said opinions tend to be very strong in the region when it comes to protecting wildlife and habitat.
From what he's seen and heard over the years, some people in the region don't necessarily look at how much employment the projects actually create in the territory, he said.
"You have to look at that side of the equation while striving to maintain a balance and appreciate how many Inuit are employed at the mines, how much opportunity is created for Inuit-owned businesses and the training opportunities that are involved.
"Not everyone is meant to be a miner but we still have to support harvesters in the communities, make sure we're looking after poverty reduction and helping to stimulate economic growth.
"It's about being very sensitive to both so that you can create more Inuit employment through the mining projects, while, at the same time, making sure you don't have negative impacts on wildlife."
Ningeongan said if he had to rate the Whale Tail IIBA on a scale of 10, he'd place it at a seven.
He said you always want more benefits coming in and, although the Whale Tail IIBA is the best in Nunavut so far, it can still be enhanced in the future.
"The development of the Whale Tale deposit and the 14-years added onto the Meadowbank project is all great news," said Ningeongan.
"It's going to create more employment for beneficiaries in Baker Lake and across Nunavut."
