The new NWT Mineral Resources Act requires holders of mineral leases to enter into benefit agreements with Indigenous governments and organizations. While some of the details are yet to be provided through regulations, it is timely to consider key provisions of benefit agreements.
Benefit agreements provide an opportunity to increase Indigenous participation in economic opportunities created by mining. The nature of these agreements has evolved since 1995 with the signing of the first benefit agreement in Canada as Indigenous groups have improved their understanding of, and participation in, the mining industry. While there are typical components in benefit agreements, there are also different approaches depending on the goals of each party, the socio-economic conditions of the Indigenous community and the geologic uniqueness of the mineral deposit.
Drawing on over 15 years’ experience in Ontario and in Nunavut, this presentation will provide a typical outline of content of benefit agreements for mines, and will compare different approaches to several key provisions, including: training and employment, business procurement, financial arrangements, implementation, legal certainty and environmental.
This presentation will explore questions that arise during negotiations. What is the role of targets for employment compared to more flexible commitments? When might sole source commitments work compared to general procurement criteria and practices, or both? How do sharing revenues, sharing profits, fixed payments, and shares stack up as approaches to financial commitments? What is the value of including implementation tools in the agreement? Is there a downside? What are the implications of obtaining Indigenous “support” compared to “consent” for the mine? How can the agreement incorporate on going consultation, weight of Indigenous recommendations, and traditional knowledge?
This presentation will be of interest to Indigenous governments and organizations, mining companies and policy makers.