KIA seeks input on royalty fund during regional tour
Consultation sessions aim to build plan for spending money received from mining companies
April Hudson
Northern News Services
Wednesday, August 2, 2017
KIVALLIQ
As the Kivalliq Inuit Association (KIA) embarks on a seven-community tour, president David Ningeongan says the association hopes to establish a plan for future funds received from mining royalties.
The tour, which began in Whale Cove on Aug. 1, is part of a three-phase tour. The second phase will happen in February 2018 and the third will happen the following August, with KIA aiming to pass a bylaw for a royalty fund at its 2018 annual general meeting.
Ningeongan said the current tour is to gather suggestions for programming and priorities.
"(We're) getting ideas from people in the communities on what priorities they want to see for their communities, what programs they want to see and how we can focus on enhancing programs with the funding that will be coming from mineral royalties," he said.
"We want to make sure that we invest those funds so it can grow. We are hoping with the support of the communities that we only take four per cent of the investment coming in annually so we can do priorities and programs."
From that four per cent, 10 per cent would be set aside as an education fund. Out of the remaining 90 per cent, half would be divided between the communities and half would go to community beneficiaries.
Currently, KIA does not have a dedicated education fund, although it does offer scholarships.
Ningeongan said establishing an education fund is the "key" to the future of the Kivalliq region and would benefit future generations.
"Once those scholarships have gone, we don't have anything earmarked for any education in the future," he explained.
"We want to make sure we always have an education fund to keep our students supported financially."
If the association receives support from the communities, Ningeongan said they will be renewing newsletters they used to distribute in the past, which would include reports on investments and how much each community spends annually from the fund.
"One, we become more transparent, and two, everybody understands where the money is going," he said.
The association is currently sitting on approximately $17 million.
It recently received a total of $3.6 million in royalties from the Meadowbank mine near Baker Lake.
Ningeongan said with royalties coming in from Meliadine mine near Rankin Inlet and Whale Tail mine north of the Meadowbank project, it's important the association develop a plan for handling those funds.
KIA received a $3 million milestone payment on Meliadine, and will receive 1.2 per cent net smelter royalties. If the Whale Tail project is approved, KIA will receive 1.4 per cent net smelter royalties on top of the $3.5 million they've received as a milestone payment and $3 million for a community initiative fund.
"We've never had a plan on how those funds should be spent," Ningeongan said.
He added he is hoping KIA receives the support it needs to establish the fund.
"It just makes sense for us to communicate with the communities so they are the ones that focus on what their future is going to be," he said.
"We want to be there for them, so they're the ones that tell us what they want and then we can plan it so we can achieve those priorities on their behalf."
