• QIA releases public version of Mary River IIBA

    uploaded by: Cara Di Staulo

    canal: DID News

    Royalty rate still not disclosed, few agreement details not included in plain language version

    The Qikiqtani Inuit Association released the public version of the Mary River Project Inuit Impacts Benefit Agreement Dec. 6 — an agreement that sets out the working relationship between Nunavut Inuit and the Baffinland Iron Mines Corporation.

    “It is QIA’s wish to share theIIBA openly,” said QIA president Okalik Eegeesiak in a Dec. 6 release. “We believe this will provide an opportunity to strengthen our implementation efforts.”

    The agreement would likely direct millions of dollars into QIA’s coffers after the mine moves into commercial production. The deal also came with a signing bonus.

    But most of the financial arrangements contained in the IIBA remain confidential, including royalty rates and land lease payments, although QIA said “amounts received as a result of the project will be reported at each annual general meeting.”

    The full impact and benefits agreement provides few details that aren’t already included in the plain language guide that was first released this past September, when QIA officially signed the deal with Baffinland.

    The agreement lays out how royalities will be paid to QIA: quarterly, beginning with the first quarter after commercial production begins at the mine.

    The royalty payment is defined as “the net sales revenue for a period multiplied by the royalty percentage.”

    However, the royalty rate is no disclosed.

    Those payments can be re-negotiated after 30 years, or once 1 billion tonnes of iron ore have been mined.

    As part of the IIBA, an implementation budget will be created along with several funds, which include:

    • business capacity and start-up fund — $250,000 per year paid by BIMC until commercial production begins;

    • Ilagiiktunut Nunalinnullu Pivalliajutisait Kiinaujat Fund (a fund to offset negative social or cultural impacts created by the project and to help distribute benefits) — $750,000 per year paid by BIMC and QIA equally for the first six years;

    • education and training fund — $1 million for the first two years the IIBA is in effect, paid by BIMC;

    • scholarship fund — $25,000 each year paid by BIMC;

    • workplace orientation programs; and,

    • money to pay the costs associated with implementation of any rights, obligation or requirements of the IIBA.

    An executive committee will be established to oversee implementation of the IIBA, made up three senior representatives from the QIA and another three from Baffinland.

    That committee will meet four times a year, and will be tasked with coming up with the minimum Inuit employment goal at the mine; reviewing a list of training and education opportunities for Nunavummiut and looking at contract award issues.

    Both the executive committee and a separate management committee respond to the need for any dispute resolution.

    They’ll also hire two IIBA coordinators, along with Inuit monitors, an elder in residence, a QIA employment and training coordinator and environment monitors.

    Baffinland is in the process of building an iron mine at Mary River in northern Baffin Island that start by producing 3.5 million tonnes of iron ore a year.



    as of December 10, 2013:

    #1. Posted by Tommy on December 09, 2013

    Too bad only handful of people will actually benefit from this deal - not necessarily the beneficiaries - funny how NTI just increased the annual wages distributed to QIA, now signing bonuses and withheld info from those that serves - this is all wrong right from the get go

    #2. Posted by InukShook on December 09, 2013

    I know several beneficiaries and long time Nunavut residents who applied directly with Bafinland for jobs they are qualified for and been rejected or ignored. Meanwhile the 737 charter jet is flying up form St Catherines Ontario is full of non-Inuit workers. The Inuoit from Pond, Clude, Igloolik etc are only working in menial jobs. Just like Nanisivik and Cornwallis Island, majority of wqorkers will be from the south.

    #3. Posted by Richard on December 09, 2013

    Here is what I see is causing the problem with these so called agreements. Three representative from QIA and three from Baffin Island. Why is the company involved with the process that determines where or how the money is distributed and spent? It seems that all over the North, companies are coming up with hair brain ideals that serve very little good or meets very few priorities in our communities. These so called funds must be managed by the people it was meant for. No exceptions.

    #4. Posted by pissed off on December 09, 2013

    I agree with no 1 and 2 
    But don’t forget that the jet flying these people is   “”“” Owned by an Inuit Company”“”
    Or so they say!
    What a joke!!!

    #5. Posted by Olympic Trip Success on December 09, 2013

    How is this “openly” when facts are withheld?

    Did the lure of signing bonus get serious thinking put into the back pocket for the pressure of instant bonus “loss” to take over thinking?

    For 30 years royalties are locked in at, who knows what rate, because they cannot be re- negotiated. When it’s hush hush it doesn’t sound like one side got a good deal. Does that mean the royalties in 20 years, 2033 are still at 2013 rate? Or do the royalties increase over the years, covering inflation/cost of living?

    Why isn’t QIA talking with the facts? Are we people like the polar bears, wildlife getting next to nothing, only covered for the first 2 or 5 years of the 30 years mine? Will ITK be barking for the bears in Nunavut and people or saying shhh it’s our backyard.?

    Giving the free Olympic trip seems to of been an outrageously successful strategy.

    #6. Posted by Tommy on December 09, 2013

    This deal no longer serves the Inuit Interests, only the few Interested Inuit.  Okalik likely has generous pay as Prez from QIA and now a Signing Bonus from BaffinLand?  Why is QIA so secretive? There is no competetion directly with this deal - all sole sourcing done by Baffinland to keep the costs from over inflation and pure profits from pure extracted iron.  The true cost of this pure Iron is sure profit all around - so why all the secrecy

    #7. Posted by Truth on December 10, 2013

    And the rich get richer, especially execs on these orgs! Where’s money to help me with food? Freight ? Hunting? Like usual these orgs that are supposed to protect OUR birthright just look out for themselves. I am sure the prez made her best frind the MP happy and the can both look forward to board positions with the corp and living down south permanently in the future

    #8. Posted by Pilipuusi on December 10, 2013

    Everything else aside, QIA is a private Corporation legally owned by the Inuit of the Qikiqtani region. It is not a publicly owned corportation. As a regular beneficiary in the community I feel isolated from the decision makers as much as any other beneficiary. But if you bring you NTI card and insist on seeing something only meant for beneficiaries, I bet you would get a lot more information than a non-beneficiary.

    The key word here is ‘beneficiary’. If you live here and are not a beneficiary - get over it.

    #9. Posted by Observer on December 10, 2013

    Uninformed quote from #5 “Or do the royalties increase over the years, covering inflation/cost of living?”

    If you read the article it says the royalty is a fixed percentage of Baffinland’s net sales revenue. Sales revenue, not profit. So this means it does not matter if Baffinland makes a profit. The more iron ore they sell the more royalty cash will flow into QIA. The value of the sales revenue will go up and down with the price of iron and it will go up and down with the rate of production at the mine. If Baffinland goes ahead with a future railway and port and 12 month shipping, the QIA royalties will quadruple and maybe more.

    If the royalty percentage rate were known it would be pretty easy to come up with a ballpark figure for total royalty revenues every year. Problem is, probably 95 per cent of Baffin beneficiaries are too uneducated to understand this kind of information anyway.

    This of course will make it easier for all the thieves inside the Inuit corporations to grab huge amounts of cash for themselves. Bring on the Baffin kleptocrats!

    #10. Posted by Laughing Out Loud on December 10, 2013

    Its funny reading the comments, they are all the same. The question is. Did the beneficiaries actually think they would benefit from the trip to the Olympics? Sounds to me that Harry, Okalik and Levi just got GOLD.
    If you don’t stand up for yourselves you will get taken advantage off by the Gold diggers.
    Don’t be so GD naive. That’s why you have the right to vote and denounce the wrongs against you.
    It is sad that there isn’t a Mandela amongst you.

    Congratulations to Baffinland let the bottom line grow..Big corporations know how to make money..


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    uploaded date: 10-12-2013

  • 3m 51s

    Gamaillie Qiluqisaq, NIRB Community Roundtable, July 20, 2012, Iqaluit, 3:51 English version

    uploaded by: derekman88

    canal: My Father's Land

    Gamaillie Qiluqisaq, NIRB Community Roundtable, July 20, 2012, Iqaluit, 3:51 English version, asks why mining royalties only flow to NTI and Inuit organizations or governments but not directly to the impacted communities like Pond Inlet. NOTE Audio Mute first 54 seconds, advance to 54:00 to hear English translation.

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    uploaded date: 29-11-2012

  • IMPORTANT NEWS – New talks of land and resource devolution

    uploaded by: samcc

    canal: My Father's Land

    DID News Alert “Nunavut’s lands and natural resources rightfully belong to Nunavummiut to develop and protect…reclaiming the ability to make decisions about how our lands and resources are managed is the next chapter in building self-reliance.” These are Nunavut Premier Eva Aariak’s words concerning her government’s interest in renewing talks with the federal government on devolution. At the moment, all royalties from land resources in Nunavut go directly to the federal government, who then decides how much to give back to the territory. For the Nunavut government this is no longer acceptable. The two other territories, Yukon and N.W.T., have made agreements with the federal government that allow them to receive direct royalties from resource development just like the Canadian provinces. These territories receive royalties that are 50% of their expenditures on resource development. So for example, in 2010 the N.W.T. spent $1.2 billion on land resources, so they received $60 million in royalties. For many people this is still inadequate, but it is at least a start in the right direction.

    The situation is complicated in Nunavut because of the NLCA, and a devolution deal with Ottawa would have to be consistent with the terms of the NLCA. Some private organizations like Nunavut Tunngavik Inc. have already started receiving royalties, see link here:, and NTI predicts these royalties be in the hundreds of millions. But where that money will be invested does not seem to be certain.

    There were talks of devolution in 2007, but they stopped when the federal government judged that the administrative staff of the Nunavut government was unprepared and not trained enough to manage a transfer of land resource rights. Aariak says that this is no longer the case, and that there is a large number of Inuit who are competent and well trained for management positions. Also, if Ottawa is so concerned with the management capacity in Nunavut, perhaps it should help create programs that would train Nunavummiut for such positions. This is something Aariak says the federal government has promised to do.

    Here are links to some recent articles on devolution (pdf files of the articles are to your left under 'attached files')

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    uploaded date: 25-05-2012