Agnico, KIA pen third deal
KIA gets $6.5 million payment on signing for Whale Tail
Michele LeTourneau
Northern News Services
Monday, June 19, 2017
QAMANITTUAQ/BAKER LAKE
The Kivalliq Inuit Association (KIA) signed yet another Inuit Impact and Benefit Agreement (IIBA) with Agnico Eagle Mines Ltd. June 15, this one for the Whale Tail Project.
"KIA has strived to balance the need to protect the environment with the promotion of economic development," stated KIA president David Ningeongan.
"KIA has worked hard to ensure that the IIBA works for the benefit of Inuit in the Kivalliq region and is another step towards a better future for Inuit of Nunavut."
The proposed Whale Tail pit is located at Amaruq, 50 kms from Agnico's Meadowbank mine north of Baker Lake.
Previous agreements were signed for Meadowbank and Meliadine.
KIA gets a $6.5 million payment upon signing, with $3 million going towards a community initiative fund. Agnico Eagle will pay resource royalties and fees to KIA and Nunavut Tunngavik Inc. from the Whale Tail, Meadowbank and Meliadine projects. The Whale Tail project provides KIA with a 1.4 per cent net smelter return on production. The company is investing $3.6 million in annual training programs, with an additional $1 million investment in the event that 50 per cent Inuit employment is not reached. NTI-registered companies get preference points to enable Inuit-owned businesses to compete more effectively with southern businesses.
The agreement addresses protection of Inuit values, culture and language, and provides for enhanced access by Inuit to employment, training and business opportunities, as well as implementation and monitoring measures that will ensure these goals are achieved, according to the release.
"Our decision to invest in the Whale Tail and Meliadine projects solidifies Agnico Eagle's commitment to Nunavut as it will be a main contributor to this next phase of growth for the company," said Agnico president Ammar Al-Joundi.
"We are proud to partner with KIA in our continued growth in Nunavut and in developing strong, sustainable communities in the Kivalliq region. Only through combined partnership efforts will we achieve success and including our vision of seeing mines in Nunavut being operated and managed by Inuit."
Agnico expects to invest US$1.2 billion over the next three years to develop Whale Tail and Meliadine.
Whale Tail is currently with the Nunavut Impact Review Board undergoing a full environmental review.
"We need to have the IIBA completed as part of the (NIRB) process. We anticipate having NIRB approvals in 2018," said Agnico's Dale Coffin via e-mail.
The official signing took place in Baker Lake with executive members of KIA, representatives from Agnico's senior management team, and the community.
