parnautit - nunavut

Nunavu t

A foundation for the futureMineral Exploration and Mining Strategy

ParnautitDepartment of

Economic Development & Transportation

Table of ContentsMessage from the Premier 2

Message from the Minister 3

Executive Summary 5

Introduction 7

GUIDING PRINCIPLES FOR THE STRATEGY 9

STRATEGY FOUNDATION 11

STRATEGY TIMELINE 12

Pillar 1 – Judisdictional Framework 13

OBJECTIVE 1: LEGISLATION 15

OBJECTIVE 2: REGULATORY STRUCTURES 18

OBJECTIVE 3: GOVERNMENT POLICIES 21

OBJECTIVE 4: TAXATION 23

Pillar 2 – Community Benefits 25

OBJECTIVE 1: BUILD RELATIONSHIPS 25

OBJECTIVE 2: MAXIMIZE COMMUNITY BENEFITS 28

OBJECTIVE 3: MINIMIZE NEGATIVE SOCIAL IMPACTS 32

Pillar 3 – Infrastucture Development 33

OBJECTIVE 1: COMMUNITY AND REGIONAL INFRASTRUCTURE 33

OBJECTIVE 2: DEVELOP THE GEOLOGICAL AND TOPOGRAPHIC 38

INFORMATION INFRASTRUCTURE

Pillar 4 – Environmental Stewardship 41

OBJECTIVE 1: IMPROVED KNOWLEDGE BASE 41

OBJECTIVE 2: PROTECTION OF THE ENVIRONMENT 44

OBJECTIVE 3: PERMITTING, MONITORING AND ENFORCEMENT 47

Conclusion: Moving Forward 49

Appendix A: Action Matrix 51

Appendix B: Policy Statements 61

PILLAR 1: JURISDICTIONAL FRAMEWORK 61

PILLAR 2: COMMUNITY BENEFITS 61

PILLAR 3: INFRASTRUCTURE 62

PILLAR 4: ENVIRONMENTAL STEWARDSHIP 63

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Message fromthe PremierSince the formation of Nunavut in 1999, we have made significant investments inour human resources capacity and our economic infrastructure. With our publicservice base prepared we are now building a private sector market economy thatis open to investors.

Our territory is an increasingly attractive location for investment in naturalresource exploration and development. Since 1999 mineral explorationinvestment has increased five-fold and Nunavut is now the northern leader inexploration investment. As a result of investor interest we now have our firstoperating diamond mine and two gold projects in the permitting stage. We arealso seeing growing interest in our known deposits of uranium, silver, nickel,copper, iron ore and coloured gemstones.

Along with the vast and largely untapped mineral potential Nunavut also has oiland gas. It’s estimated that we have up to 15 per cent of Canada’s totalpetroleum reserves. With changing market conditions we look forward to

renewed exploration and development.

We are preparing for growth today. We have Canada’slowest personal income tax rates, no sales or capital tax,and our small business and corporate taxes are amongthe lowest in the country. We also offer a performancebased fuel tax rebate for off road economic developmentactivity. Along with ensuring that you are not overtaxedwe are also making sure that you are not overregulated.Our government is reviewing our business regulationsand making recommendations on streamlining oreliminating regulatory barriers to business development.

We have a wealth of resources, a growing economy,breathtaking landscapes and a unique culture to sharewith the rest of the world. I welcome you to come north

and discover the vastness and potential of our land, the depths of our untappedriches and the legacy of our culture.

Premier Paul Okalik

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Message fromthe MinisterOn behalf of the Government of Nunavut, I am pleased to introduce Parnautit:the Nunavut Mineral Exploration and Mining Strategy.

Building a strong and sustainable economy in Nunavut is a fundamental objectiveof our government. Fostering a robust exploration and mining industry is acentral part of that plan. Nunavut is a vast territory, with a rich and variedgeological history. Its natural resource potential remains largely unexplored anduntapped, presenting an unrivalled opportunity for interested investors, miningcompanies and our citizens alike.

As legislative and regulatory responsibilities transfer from a federal to a territorialmandate, we have the opportunity to craft a jurisdictional framework particular to Nunavut.

We strongly encourage community engagement throughout the mining cycle, sothat Nunavummiut may participate and contribute fully. As a government we are

committed to a broad range of educational and publicoutreach initiatives to support this. We recognize theneed for infrastructure development in Nunavut (bothphysical and knowledge-based infrastructure), andsupport a collaborative approach with industry,particularly where proposed construction may havebenefit beyond the mining operation itself.

As we move forward with development we must retain a balanced and sustainable approach to development.The Mining Strategy charts a plan of action to draftappropriate policy and implement progressive,supporting programs to help us achieve our objectives.

To Nunavummiut, mining companies and investors, the message and spirit of Parnautit is clear: We will be

prepared for the arrival of a new era of mining development in our land.

Welcome to Nunavut.

Honourable David SimailakMinister of Economic Development & Transportation

NunavutMineralExploration and Mining Strategy

The Mineral Exploration and Mining Strategy is the plan of the Government

of Nunavut to create opportunities for the future self-reliance of Nunavut

and Nunavummiut through the sustainable development of our mineral

resources. It is intended to guide that development in the period leading

up to the devolution of management responsibilities for lands and

resources from the federal government.

The goal of the strategy is: “To create the conditions for a strong and sustainableminerals industry that contributes to a high and sustainable quality of life for allNunavummiut.”

The Mineral Exploration and Mining Strategyis built on the Government’s visioncontained in Pinasuaqtavut and on InuitQaujimajatuqangit. The Strategy restssecurely on the following four Pillars. ThesePillars are the frameworks for the Policiesand Action Plans of the Strategy, whichdetermine how we will actively engageNunavummiut in the mineral explorationand mining industry.

Pillar 1 – JurisdictionalFrameworkWe must put a solid foundation of soundlegislation, regulations, and policies in placeto facilitate the development of a mining industry that will achieve our vision.

Pillar 2 – Community BenefitsWe need to find the strategies and initiatives that will build on ourstrengths and allow our people and communities to become fullparticipants with a true sense of ownership in our minerals economy.

Executive Summary

Parnautit A foundation for the future

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Pillars 3 - Infrastructure Development We must take advantage of opportunities to improve and build our infrastructureso that developments in one sector of our economy provide broad benefitsthroughout other economic sectors.

Pillar 4 – Environmental StewardshipAt all times we must recognize the importance of protecting our environment andensuring that the environmental effects of mining are always minimized and thatthe industry earns respect and acknowledgement as being a guardian of a cleanand healthy environment.

Within these Pillars there are 16 policy positions and 22 action items. The policypositions will establish a clear policy framework for the Government of Nunavut’ssupport for mineral exploration and mining. The action items will prepareNunavut to ensure the mining industry provides substantive and sustainablebenefits to the territory and that negative impacts are minimized.

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Introduction

In 2001, the Government of Nunavut (GN) in partnership with Nunavut

Tunngavik Incorporated (NTI) and Indian and Northern Affairs Canada

(INAC) completed a review of the future economic outlook for Nunavut.

In 2003, in a cooperative initiative with the federal government, Nunavut

Tunngavik Incorporated and a number of

other Nunavut-based organizations, the

Nunavut Economic Strategy set out a vision

for Nunavut’s economic future. That vision

effectively focused all economic issues on

the much broader issue of quality of life for

Nunavummiut. The strategy states: “We

believe that Nunavummiut need strong

community and territorial economies to

attain the goal of a high and sustainable

quality of life.”

Following the Nunavut Economic Strategy’s goal,the Nunavut Mineral Exploration and Mining Strategy’s goal is:

“To create the conditions for a strong and sustainable minerals industry that contributes

to a high and sustainable quality of life for all Nunavummiut.”

The mandate to develop and implement this Strategy is set out in Pinasuaqtavut:2004 – 2009 (the guiding document for this term of the government), wherethe Government of Nunavut sets out to- “Develop Nunavut’s economy,private sector and job market by aggressively implementing theNunavut Economic Development Strategy’s focus on mining...”While Pinasuaqtavut also identifies other important sectors of

1 P I N A S U A Q TAV U T : 2 0 0 4 - 2 0 0 9

Our Commitment to Building Nunavut̓s Future

Working to improve the health, prosperity, and self-reliance of Nunavummiut

PINASUAQTAVUT2004–2009

Nunavut’s economy, like the Nunavut Economic Outlook it recognizes the keyrole for the mining sector in providing the opportunities for high levels ofemployment and economic activity that will lead to substantial social andeconomic benefits in every Nunavut community.

The building of a foundation for development in Nunavut was started in 1993with the signing of the Nunavut Land Claims Agreement (NLCA). This set out theroles of Inuit organizations, and the federal and territorial governments. It alsoestablished Institutions of Public Government to allow for the co-management ofland, water and wildlife between Inuit organizations and government.

The NLCA also granted Inuit fee simple title to over 356,000 square kilometres ofland representing over 17% of Nunavut. Included within this is 38,000 squarekilometres of land, on which Inuit have been granted the rights to all sub-surfaceminerals.

Since that time Inuit organizations have been building their capacity to managethe lands and resources under their control. In 1999 when Nunavut was created,Indian and Northern Affairs Canada began to build its capacity to manage theprovincial-type responsibilities for land and resource management on Crownlands. In December of 2004, the Prime Minister and the Premier of Nunavut

announced the time line for the devolution of land andresource management from the federal government tothe territorial government. The announcement lookedat concluding a final agreement by December 2008with final implementation to follow.

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Guiding Principles for the StrategyNunavut is well positioned for government and Inuit organizations to worktogether to identify the priorities of Nunavummiut in the development of theminerals sector of our economy. The NunavutMineral Exploration and Mining Strategy builds onNunavut Tunngavik Incorporated’s mining policyand looks to establish a vision where Inuit, thefederal government and the Government ofNunavut can work in partnership to implement thegoals set out in this Strategy for the benefit of allNunavummiut.

A strong and sustainable mining industry will haveoperating mines throughout the territory providingemployment and business opportunities. This willrequire a high level of exploration activity resultingin new mineral discoveries and developments with new mines coming into production as oldermines are closed and reclaimed. Key features of thevision are:

• Provides long term social and economic benefits to Nunavummiut• Contributes to Nunavut’s economic goals• Works to protect the environment and minimize impacts• Is attractive to investors

Inuit Qaujimajatuqangit (IQ), or Inuit traditional knowledge and societal values,forms the basis of all GN policy. The following IQ principles identified inPinasuaqtavut were used to guide the development of the Mineral Exploration andMining Strategy, and must be kept in mind throughout its implementation.

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Inuuqatigiitsiarniq Respect others, relationships and care for people;

Tunnganarniq Foster good spirit by being open, welcoming andinclusive;

Pijitsirniq Respect and provide for community, family andindividuals;

Aajiiqatigiingniq Have regard for the Inuit way of decision-making;employ discussion and build understanding;

Pilimmaksarnik Enable knowledge and skills to be passed on throughobservation and practice;

Piliriqatigiingniq Ensure people collaboratively work together for acommon purpose;

Qanuqtuurunnarniq Encourage people to be resourceful and work tosolve problems;

Avatimik Kamattiarniq In all things have respect for the environment andensure it is protected.

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Strategy FoundationIn order to draft and implement a Mineral Exploration and Mining Strategy that is consistent with Pinasuaqtavut and Inuit Qaujimajatuqangit as well as with theGovernment’s Vision and fundamental commitments to Nunavummiut, theStrategy must rest securely on the following four Pillars.

These Pillars are the frameworks for the Policies and Action Plans of the Strategy,which determine how we will actively engage Nunavummiut in the mineralexploration and mining industry.

• Pillar 1 – We must put a solid foundation of sound legislation, regulations, andpolicies in place to facilitate the development of a mining industry that willachieve our vision.

• Pillar 2 – We need to develop the strategies and initiatives that will build on ourstrengths and allow our people and communities to become full participantswith a true sense of ownership in our minerals economy.

• Pillar 3 – We must take advantage ofopportunities to improve and build ourinfrastructure so that developments in onesector of our economy provide broadbenefits throughout other economic sectors.

• Pillar 4 – At all times we must recognize theimportance of protecting our environmentand ensuring that the environmental effects of mining are always minimized and that the industry earns respect andacknowledgement as being a guardian of aclean and healthy environment.

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Strategy TimelineThis strategy is intended to prepare Nunavut in the period leading up to the final implementation of a devolution agreement on the transfer of managementresponsibilities for land and resources. While the purpose, vision, and policies arelong term, the actions will focus on issues that the GN needs to address over thenext three to five years as we move toward more involvement and control of thekey drivers of our economy.

Some of the key Actions will require specific planning and the commitment ofnew resources. These Actions will be further defined in an implementationdocument that will follow.

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Pillar 1 Jurisdictional Framework

The final report on the Mining, Minerals and Sustainable Development

Project1 identified poor governance as a significant contributor to

problems associated with the mining industry. The proper governance

structures are a prerequisite for Nunavut achieving its vision for the

minerals sector.

The governance of the mining industry in Nunavut largely rests with the federalgovernment who, through Indian and Northern Affairs Canada, is managing theProvincial-type jurisdictional responsibilities for Nunavut until those responsibilitiesare devolved to the Government of Nunavut.

One of the key principles of good governance is the requirement that decisionsbe made as close as possible to the people those decisions will affect. Devolutionwill be a significant step toward improving governance in Nunavut.

The mandate for Indian and Northern Affairs Canada is contained in the Act thatcreated the department in 1966. The Act sets out the responsibility of the Ministerto manage the resources of the territories for the people of the territories. Clause4(b) states that the resources belong to the territories and the Act implies thatthey are to be managed in a trustee relationship by the federal department.

Further clarity was provided in a letter from the Prime Minister to the Minister ofMines and Technical Surveys, who was responsible for other federal lands andresources. The Prime Minister wrote:

“The Department of Northern Affairs is in reality, operating with regard to the northern territories in essentially a ‘trust’ relationship

in regard to the northern territories…”

1 International Institute for Environmentand Development, 2002; BreakingNew Ground – Report on the Mining, Minerals and SustainableDevelopment Project.

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In December of 2004, the federal government moved on its commitment totransfer management of resources to the territorial government:

“In addition, consistent with its commitment to the devolution of provincial-typeresponsibilities to northern governments, the Government of Canada will, within a

year, begin devolution negotiations with Nunavut. The Government of Canada and the Government of Nunavut would like to reach an agreement on devolution asquickly as possible, and have set a goal of reaching a final agreement by December

2008.” (News release December 14, 2004; First Ministers Partner on Northern Strategy”)

The Government of Nunavut is committed to reviewing the existing jurisdictionalframework in partnership with NTI and INAC and taking a leadership role inaddressing key issues in preparation for devolution.

Objective 1: LegislationEnsure Nunavut has modern legislation that supports our vision for thedevelopment of the minerals sector and protection of our environment.

The first part of ensuring that the jurisdictional framework supports theGovernment of Nunavut’s vision is making sure that a foundation of modernlegislation is in place. This legislation provides the legal framework for howmineral exploration and mining activities will be managed and gives guidance toindustry and government.

Legislation Flowing from the Nunavut Land Claims AgreementThe Nunavut Land Claims Agreement provides a strong framework for thedevelopment of resource management legislation that is grounded in communityengagement. The NLCA created five land and resource management institutions:

• Nunavut Surface Rights Tribunal (NSRT)• Nunavut Planning Commission (NPC)• Nunavut Impact Review Board (NIRB)• Nunavut Water Board (NWB)• Nunavut Wildlife Management Board (NWMB)

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The Surface Rights Tribunal was created six months after the ratification of theland claim with the other institutions being created two years after ratification.

While the NLCA provides the framework for the structure and operation of theboards, it was intended that legislation formalizing the establishment andfunction of the boards would follow. In 2002, the Nunavut Waters and NunavutSurface Rights Tribunal Act was passed formally establishing the Nunavut WaterBoard and the Surface Rights Tribunal.

In June of 2002, the process was begun to complete the establishment legislationfor the Nunavut Impact Review Board and the Nunavut Planning Commission.

A working group of officials led by INAC was created; this group also included theGovernment of Nunavut, Nunavut Tunngavik Incorporated, and representativesfrom the Nunavut Planning Commission and the Nunavut Impact Review Board.The first draft of this legislation is still being developed.

The Government of Nunavut will continue to workwith INAC and NTI, in close consultation with theNunavut Planning Commission and the NunavutImpact Review Board to complete establishmentlegislation on a high priority basis.

Development of aNunavut Mines ActIn Nunavut and the NorthwestTerritories mineral exploration andmining is regulated under theTerritorial Lands Act. This legislationregulates Crown interest in lands, andunder the Canada Mining Regulations,Crown interests in mineral resources.

The Act only regulates mineralexploration and mining activity to theextent it impacts Crown lands. The

Action 1-1Legislation

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Act was originally passed in 1952 and since then most other jurisdictions in theworld have moved to laws of general application for the management andregulation of mineral exploration and mining activity.

The lack of modern legislation creates a regulatory gap where mineral explorationand mining activity is regulated differently on Crown land, versus Commissioner’sland, Inuit owned lands, or private lands.

The Government of Nunavut will work with INAC, NTI,and the Regional Inuit Associations (RIAs) on thedevelopment of a Mines Act of general application forNunavut.

Development of a Nunavut Mineral Tenure Act and Electronic Map StakingUnder the Territorial Lands Act the staking and recording of mineral claims inNunavut is regulated by the Canada Mining Regulations. These regulations werenever well suited to Nunavut’s vast, remote and treeless expanses. Ground stakingof mineral tenure is an expensive, uncertain, and unnecessary process foracquiring mineral tenure. The process diverts resources away from productiveexploration.

Many jurisdictions have moved to some form of electronic map staking. The keyadvantages of this are: legal certainty, timeliness, safety, efficiency, and reductionof environmental impact.

The Government of Nunavut will work with INAC, NTI,and the Regional Inuit Associations on the developmentof a modern Mineral Tenure Act for Nunavut that willincorporate electronic map staking.

Action 1-2Nunavut Mines Act

Action 1-3Mineral Tenure Act for Nunavut

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Objective 2: Regulatory StructuresEstablish and support regulatory structures that are effective in ensuringprotection of the environment, and build positive cooperative relationshipsbetween government, industry, and communities.

Once the foundation of modern legislation is in place the regulatory structuresand any required regulations that implement the legislation need to be clearlyestablished, defined, and supported. In addition to the key regulatory structuresthere are a significant number of other regulations that apply to mineralexploration.

Development of Regulations under the Nunavut Waters ActIn 2002, the Nunavut Waters andNunavut Surface Rights Tribunal Act waspassed. Under that legislation theregulations from the Northwest TerritoriesWater Act were adopted as a stopgapmeasure until new regulations could bedeveloped and implemented.

The Nunavut Water Board requestedthat the lower threshold for activity notrequiring a water licence be exemptedfrom the regulations. The lack of athreshold for activity that does notrequire a water licence places anadministrative burden on the board anddelays activities that are well below thethreshold of concern.

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The Government of Nunavut will request that INAC begin aprocess for developing Nunavut-specific water regulationsunder the Nunavut Water and Nunavut Surface RightsTribunal Act. The regulations will have appropriatethresholds to ensure that water use is efficiently andeffectively regulated.

Regulatory Entry PointThe Nunavut Land Claims Agreement envisioned a one-window process where allproject proposals would be sent to the Nunavut Planning Commission to bechecked for conformity with the local land useplan, and to assess whether there might beconcerns with respect to cumulative effects.Implementation of this one-window systemwould expedite the regulatory process inNunavut.

All project proposals can be submittedelectronically to the Nunavut PlanningCommission who will check for conformity withthe local land use plan, assess cumulativeimpacts, and determine whether the project mayrequire an environmental assessment andtherefore must go to the Nunavut Impact ReviewBoard for screening.

The Government of Nunavut supports the establishmentof the Nunavut Planning Commission as a one-windowentry point into the permitting process for mineralexploration and mining in Nunavut.

Action 1-4Nunavut Water Regulations

Policy Statement 1-1One-window Entry Point

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Regulatory ReviewConcerns have been raised with regards to the complicated and slow regulatoryand permitting processes for all activities ranging from government and academicresearch, to small-scale mineral exploration programs, to major developmentprojects. This is compounded by challenges faced by permitting authorities andregulatory boards in building and maintaining staff capacity. This was raised as anissue that could impact mineral activity and economic development.

The Government of Nunavut will commission anindependent review of the permitting and regulatorystructures in the territory.

Following an independent review, the Governmentof Nunavut will facilitate a workshop in partnershipwith the federal government, Nunavut TunngavikIncorporated, the three Regional Inuit Associations,Nunavut Planning Commission, Nunavut ImpactReview Board, and the Nunavut Water Board. Thiswill provide a forum for the discussion of the reviewcarried out in Action 1-5.

Action 1-5 Review of

Permitting and Regulatory Structures

Action 1-6 Workshop on

Permitting and Regulation

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Objective 3: Government PoliciesEnsure Government of Nunavut has clear policy positions on all critical issues.

Beyond areas that require legislation and regulation, there are critical areas ofimportance to meet the vision for this sector that require clear statements ofpolicy from the Government of Nunavut.

Establishment of Land Use Planning Policies Objectives and Goals (NLCA; 11.4.1(a))Under the Nunavut Land Claims Agreement a major responsibility of the NunavutPlanning Commission is to establish broad planning policies, objectives and goalsin consultation with government. This responsibility comes before theresponsibility to create land use plans.

A common outcome of formal land use planning processes in other jurisdictionshas been the creation of access restriction areas for mineral exploration andmining. While it is recognized that access restrictions may be appropriate in orderto meet important conservation or land use goals, in some cases exploration anddevelopment have been restricted over large areas without a substantiation ofneed or evidence that mineral exploration and mining would be in conflict withconservation or other land uses. These restrictions unnecessarily eliminate thepotential benefit the territory may derive from the mineral wealth in the area.

The Government of Nunavut will require a review andassessment to determine whether a proposed landaccess restriction is warranted. The GN will endeavour toensure the goals of the proposed land access restrictionare achieved while minimizing the impact onundiscovered mineral resources. The review andassessment will take into account GN goals, legislation,policies and programs relating to conservation, land-use planning, wildlife management and parks. Thisreview and impact assessment will be requiredbefore a land access restriction is created.

Policy Statement 1-2Land Access Restrictions

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As future policies and strategies around protected areas and land accessrestrictions are developed, the concept of integrated land management allowingmultiple land use activities will act as a guide for these processes.

Development of a Government of Nunavut Policy onUranium Exploration and MiningSince 2003, the price of uranium has steadily climbed to levels not seen in almost30 years. This price movement has generated a great deal of interest in uraniumexploration throughout the world. Nunavut is known to be very prospective foruranium, and exploration companies are anxious to test their uranium depositmodels, and ultimately to develop a uranium mining industry in the territory.

Uranium related issues were last discussed in the 1980s, when the people of BakerLake opted to oppose the development of the nearby Kiggavik uranium project.Technology relating to the peaceful uses of uranium, environmental stewardship,and mining health and safety has advanced significantly in the past 20 years. It istimely, therefore, that the GN reopen the discussion of uranium issues andestablish a policy that reflects the up-to-date and informed views ofNunavummiut.

The Government of Nunavut will participate withNTI and INAC in an education and awareness-building project to inform Nunavut residents aboutthe issues related to the exploration anddevelopment of uranium.

The GN will also conduct consultations to hear theviews of Nunavummiut and other stakeholders onthese issues.

Following that, the Government of Nunavut willdevelop a uranium policy, which will take intoaccount the views of all stakeholders.

Action 1-7 Uranium Policy

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Objective 4: TaxationEnsure Nunavut has a fair and equitable industry taxation regime that doesnot damage our competitive position.

Review of Territorial Taxes on Mineral Exploration and MiningCompared to other jurisdictions in Canada and most jurisdictions in the worldNunavut is a high-cost area for mineral exploration and development. The lack ofknowledge about the geology of the territory, the lack of a road network, and thechallenging climate combine to increase project costs and planning timelines.

Recognizing the high-cost environment and high-risk nature of exploration anddevelopment, industry requested that the territorial tax structure be reviewed toensure it is fair and equitable.

The Government of Nunavut undertook this review exercise in late 2005 resultingin an announcement in the 2006 budget of a rebate of territorial taxes on fuel formineral exploration and mining.

The Government of Nunavut will complete the review ofall territorial taxes that are applied to mineralexploration and mining.

Action 1-8 Taxation Review

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Develop meaningful relationships between communities, the minerals

industry and government to ensure that mineral exploration and mining

create sustainable economic and social benefits for Nunavummiut

The mineral exploration and mining industries have the potential to contributesignificant and sustainable benefits to Nunavummiut,including infrastructure, jobs, education, skills, careerdevelopment and local business opportunities.

Economic development, however, also has the potential fornegative socio-economic impacts, which could includewealth mismanagement, loss of traditional lifestyle, andincreased stress on already struggling community socialinfrastructure.

It is essential that strong and functional relationshipsbetween developers, government and communities beestablished to manage impacts and maximize benefits, andto ensure that the development of Nunavut’s mineralresources is beneficial to all Nunavummiut.

Objective 1: Build RelationshipsBuild trustworthy relationships between impactedcommunities, industry and government.

Community consultation is essential for the creation of strong relationshipsbetween developers, government and communities. When such relationshipsare in place, local people become more engaged in the decision-makingprocess, and the resolution of issues is simplified. Mining projectsbecome an accepted part of the community and investor risk isreduced.

Pillar 2 Community Benefits

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Legal requirements for consultation by industry andgovernments have been clarified through decisions by theSupreme Court of Canada. The Nunavut Land ClaimsAgreement also contains provisions related to consultation, asdoes the NTI Mining Policy, and Pinasuaqtavut 2004-2009.

While effective consultation is required and each party hasobligations, there is often a poor understanding or a lack ofwill or capacity to meet the obligations. It is contingent upongovernment to ensure that both government and industrycarry out meaningful consultations.

The GN will consult with communities, NunavutTunngavik Incorporated, and the appropriateRegional Inuit Association where land managementand resource development activities may haveimpacts. The GN will ensure that communityconcerns are considered in the assessment of mineraldevelopment projects.

The GN will develop Community ConsultationGuidelines to promote and facilitate dialogue andunderstanding between communities, Inuitorganizations, government and the mineralsindustry.

The GN will continue to conduct generalconsultations in communities to raise awareness andknowledge on environmental and socio-economiceffects of mineral development.

Policy Statement 2-1Community

Consultation

Action 2-1Community

Consultation Guidelines

Action 2-2Awareness Building

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Project Operations Stage ~ Production Duration

Jericho diamond Producing Mine 2006 – 2014

Hope Bay (Doris N) gold Deposit appraisal; EIS 2007 – 2009+

Meadowbank gold Deposit appraisal; EIS 2008 – 2015+

High Lake base metals Deposit appraisal; Feasibility (pre-EIS) 2009 – 2020+

The GN will support the Nunavut Mining Symposium asa forum for building investor confidence and improvingrelations between communities, Inuit organizations, the minerals industry, and government.

The GN encourages mineral exploration and miningcompanies to carry out appropriate, project-specificconsultations with affected communities beforefieldwork begins and regularly throughout the project’sduration.

Effective consultation with communities makes basic business sense, and eventhough encouraged and regulated by government, the costs are not recognizedas an eligible exploration expense under the Investment Tax Credit forExploration. Companies cannot, therefore, use money raised through flow-through shares for consultations, nor can they gain credit for consultations inassessment reporting.

The GN endorses changes to the Mineral TenureAssessment Credit and Canadian Exploration Expensededuction under the Investment Tax Credit forExploration to recognize community consultation as a legitimate exploration expense.

Action 2-3Nunavut Mining Symposium

Policy Statement 2-2Industry Consultations

with Communities

Policy Statement 2-3Tenure and Tax Credit

for Consultation

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Objective 2: Maximize Community BenefitsIdentify and maximize economic and social benefits to communitiesimpacted by minerals industry activity.

At present, Nunavut’s minerals industryconsists of the Jericho diamond mine as well asa significant but variable number of mineralexploration projects every field season.

It is likely that three projects currently in thepermitting process will become mines in thenear future, and several other projects have thepotential to become mines over the next tenyears. The now-closed Lupin, Polaris andNanisivik mines are in their reclamation andmonitoring phase, which will proceed for thenext two to five years.

In order for Nunavummiut to take advantageof the employment and business opportunitiesfrom these projects, government and industrywill need to work together with Inuitorganizations and communities to develop andcoordinate effective education and trainingprograms.

Government and the minerals industry can help provide Nunavummiut with thetools to be self-reliant in today’s society:

Employment and Human Development OpportunitiesOptimistically, 1500 new mine-related jobs could be created in Nunavut over thenext 10 years. This would employ 12% of the territory’s workforce.

Modern mining operations are much less labour intensive than in the past. Themajority of jobs fall within the trades and equipment operator occupationsrequiring skills-specific training and certification. The remaining occupations areeither entry-level positions, requiring at least a Grade 10 education (although a

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high school diploma is usually preferred), or engineering and managementoccupations requiring professional college or university education.

Mine sites commonly offer on-site training programsfor apprenticeship positions as well as upgrading andadvancing in a diverse range of roles. Pre-tradestraining, or education upgrading may be required.Exploration camps offer very limited on-site trainingfor anything beyond entry-level positions.Government-supported prospector development andfield assistant programs can provide Nunavummiutwith the basic skills for employment with explorationcompanies.

The public education system provides a criticalfoundation for Nunavummiut in the knowledge, skillsand attitudes needed to be responsible, productiveand self-reliant citizens. The Department of Education is developing “made-in-Nunavut” curricula and teacher resources within the principles of InuitQaujimajatuqangit. New curricula include earth sciences and sustainable resourcedevelopment, which will help develop an appreciation for, and an understandingof, the importance of these subjects at an early age.

The GN will continue to develop public schoolcurriculum and resources, and deliver teacher workshopsin earth sciences and mining within the context of InuitQaujimajatuqangit.

The Department of Education and Nunavut Arctic College (NAC) play a leadingrole in providing adult education services in Nunavut. The recently released draftAdult Learning Strategy sets out a new plan for adult education and training in theterritory over the next 20 years, with some significant proposed changes to theadult education system in Nunavut. This will be facilitated by the creation of thetrades’ training school in Rankin Inlet that was announced in February 2006.

Action 2-4Earth Science and

Mining in Public Schools

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The Department of Economic Development &Transportation (EDT) will implement the multi-partyNunavut Mine Training Initiative to workcooperatively with the Department of Education’sAdult Learning Strategy. The Mine Training Initiativefocuses on addressing the labour force gap thatexists in the minerals industry in Nunavut. TheInitiative will bring industry across the territorytogether with Regional Inuit Organizations, trainingand education organizations, and funding agenciesto develop and deliver targeted training to addressshort and medium term human resource needs.

Nunavut Arctic College, in conjunction with EDT,Education, and Kivalliq Partners in Development has delivered a pilot project ofthe Mineral Exploration Field Assistant Course.

The GN will implement the Nunavut Mine TrainingInitiative to facilitate and coordinate trainingopportunities between industry, government, Inuitorganizations, training organizations and fundingagencies.

The Nunavut Arctic College, in conjunction with EDT,Education, and Regional training organizations willcontinue to deliver the Mineral Exploration FieldAssistant Course on a “demand” basis in targetedcommunities, to help meet the growing mineralsindustry labour force demands and maximiseemployment opportunities for Nunavummiut

Local Business Development OpportunitiesLocal businesses can benefit from the minerals industry by offering supplies andservices. Government can support this by encouraging industry to have their linesof business go through local communities, and to ensure that business supportprograms recognize the opportunities and challenges businesses face in providingsupplies and services to the mining sector.

Action 2-5Mine Training

Initiative

Action 2-6Mineral Exploration

Field Assistant Course

31



Also, economically viable, down-stream, value-added, secondary industries mayflow from mining operations at the local level. Such operations may include theprocessing (sorting, grading, cutting and polishing) of Nunavut produceddiamonds and a jewellery industry using Nunavut gold, diamonds and sapphires.

The GN will assess and encourage the development ofeconomically viable, value-added industries that mayflow from mining operations.

Independent community-based prospectors are the grassroots of the mineralexploration and mining industry. The Nunavut Prospector Development Programwas developed in 1999 to train, encourage and support individuals incommunities to become independent prospectors.

The GN will continue to deliver the Nunavut ProspectorDevelopment Program, through the IntroductoryProspector Course and Nunavut Prospector AssistanceProgram, which supports individual prospectors indiscovering and developing new mineral occurrences.

Community Economic Development Plans are developed by communities toguide and direct economic development within the community. These plansidentify business opportunities and local initiatives to promote and develop thecommunity.

Major development projects can make existing Community EconomicDevelopment Plans obsolete. This can create anxiety at the community level thateconomic impacts on the community will not be strategically guided and that thecommunity may feel they are losing control of their development.

The GN will work with communities to update theirCommunity Economic Development Plans toaccommodate and maximize opportunities frommajor development.

Policy Statement 2-4Value-added Industries

Action 2-7Nunavut Prospector

Development Program

Action 2-8Community Economic

Development Plans

32

Objective 3: Minimize Negative Social ImpactsMinimize and mitigate potentially negative social impacts associated withminerals industry activity.

Mineral development, particularly large-scale mining operations, has the potentialto have negative social impacts along with the significant social benefits.

The stage of development of a mineral project generally determines the effects onnearby communities. The mineral exploration stage has relatively low economicdevelopment impact on communities but is critical since it is often the initialencounter between communities and companies.

The construction phase of operation is relatively briefbut may have the greatest impact in the short-termwith long-term implications. It offers a boom in jobsbut it also has the potential to cause considerablephysical and social disturbance, opening up remoteareas through the development of infrastructure andstimulating migration to the area.

The production phase of an operation has thelongest-term impacts, creating jobs and infrastructurebut also potentially negative and unforeseen socialimpacts.

The GN will assist in providing information for socio-economic monitoring related to mineraldevelopment.

Action 2-10Socio-economic

Monitoring

33



Nunavut’s infrastructure in every area is far behind any other part of

Canada. The lack of a road network, ports and harbours, paved runways,

geology maps, and topographic maps make exploration and mineral

development in Nunavut much more expensive and at a higher risk than

in other Canadian jurisdictions.

Throughout Canadian history the expansion ofphysical infrastructure into remote areas has oftenbeen led by the mining industry. Mineral wealth hasfunded the construction of towns, airports, roads,and hydroelectric and marine facilities. Nunavut’sfuture is not expected to be significantly different.

Objective 1: Community and Regional Infrastructure Build partnerships with mine developers, federal government, Inuitorganizations, communities and others to leverage funding to build long-term and sustainable, territorial, regional, and community infrastructures.

Communities as Hubs to Mineral Development ActivityWhere possible exploration companies should base their activities from within aNunavut community to help stimulate long-term economic development in thatcommunity.

For this to make economic and practical sense for the companies, acertain level of basic infrastructure such as hotel accommodations, fuelstorage facilities, charter aircraft availability, etc. must first be in place.

Pillar 3 Infrastructure Development

34

Paradoxically, without some existing infrastructure, companies will not want tobase their work from a community, and without company activity, infrastructurewill be slow to develop. While government or communities could invest ininfrastructure to attract exploration companies, it must be remembered thatexploration programs are brief and transitory. It may not make sense, therefore,to build infrastructure that will primarily be used by exploration companies.

Unlike exploration, mines are stable and long-term developments for whichpermanent infrastructure must be built. Communities can obtain significantbenefits if a mining company uses the community as a base from which it sourcesgoods and services, and through which it directs all traffic into and out of themine site.

Once a mine makes a decision to use a community as a base, and criticalinfrastructure is put in place, the community may then become a viable hub forother activities, including mining, exploration, transportation, tourism and othereconomic pursuits.

The GN expects companies involved in mineralexploration and mining to use a Nunavut communityas a logistical centre for their operations.

Supporting Development of Sustainable InfrastructureMining operations cannot be established withoutfirst having some basic infrastructure in place.Power supplies, roads, ports and airports are allcritical parts of a mine’s development.Infrastructure developed in support of mines,however, can also have benefits beyond those inthe mine plan.

Policy 3-1Hub Communities

35



A mine access road, for example, can also provide improved access from a nearbycommunity to fishing and hunting areas. Improved port facilities can also be ofbenefit to the community. It is to Nunavut’s benefit if, wherever possible, mineinfrastructure is located in or passes through a community.

If proposed infrastructure benefits a community or Nunavummiut in general aswell as the mining company, it may be sound policy that a partnership betweengovernment and the company be formed to develop it. While partnering with amining company may be an excellent way to leverage development dollars, thiswill only be the case if the proposed infrastructure fits with the government’sstrategic goals and where economic and environmental risk and ownership areappropriately addressed.

Both communities and mines benefit when resources can be combined toproduce infrastructure improvements which are mutually desirable. Roads,airports, ports and energy storage and generation capacity are all essential to amining operation and to a community. Existing government plans can bereviewed and adapted to respond to both community need and developmentrequirements. Proponents need to demonstrate a well developed dialogue whichaddresses these potential partnerships.

Where risk and opportunity permit, the Government ofNunavut and its Territorial Corporations will leverage theinvestment of private infrastructure required to supportmineral develop, to support, partner or assist in buildinginfrastructure that will have permanent benefits forNunavut.

One of the areas of highest impact and highest potential for collaboration is in thedevelopment and use of energy resources and facilities. Mining developmentshave a high demand for both fossil fuels and electrical energy. In Nunavut,government agencies play a significant role in the delivery of these commodities.

Policy 3-2Sustainable Infrastructure

36

The resources of existing community operations may facilitate exploration work atthe early stages, but may be taxed by strong demand as a project grows.Ultimately energy facilities represent environmental and economic risk andopportunity for both the community and the proponent and should be viewed asan opportunity for common value.

The Government of Nunavut encourages companiesadvancing mining developments in Nunavut to beginat an early stage to review and address energy risksand options with both Qulliq Energy Corporation(electrical generation) and the Petroleum ProductsDivision (fossil fuel use and storage) in order todevelop good projections of need and to anticipatepotential areas of common investment andinfrastructure advantage.

For Nunavut communities to gain maximum benefit in infrastructuredevelopment, the government must clearly define its infrastructure goals, andthen must encourage industry partners to find ways in which the goals of theproponent and those of Nunavummiut can be met by working cooperatively.

The Government of Nunavut encourages companiesproposing mining developments in Nunavut tonegotiate a Development Partnership Agreementwith the GN, and anticipates that all developers,whether or not such an agreement has beendeveloped, will demonstrate a clear understandingof community opportunities and a thorough reviewof partnership options as part of their impactreviews.

Policy Statement 3-3Energy Infrastructure

Policy Statement 3-4Development

Partnership Agreements

37



Development Partnership Agreements will set out ways the company and the GN can agree to work together to promote the socio-economic well-being ofNunavummiut in affected communities. The agreements should address suchareas as the policy statement on hub communities, energy and infrastructuredevelopment, Socio-Economic Monitoring Committees, education and training,recognizing that each development will provide unique opportunities, risks andoptions.

Companies entering into a Development PartnershipAgreement will be permitted to apply to the GN for arebate of the Fuel Tax paid on all mine or explorationrelated fuel purchases.

Alternate Uses of Closed MinesOver the past four years Nunavut has seen theclosure of the three mines that were developed in thelate 1970s and early 1980s. Among government,Inuit organizations and the public there was muchdiscussion on possible future use of the mineinfrastructure.

While innovative alternatives for closed mines may seem attractive and evenappear economically feasible, any environmental liabilities at the site would beinherited by the new operators.

With the need for the development of community infrastructure it is difficult toconsider the use of public funds to build and support infrastructure at a remote site.

The GN will continue to require that all mine sites befully rehabilitated after mines are closed. Alternate useswill only be considered once liability issues have beenaddressed, and a sound business case outlining thealternate use, obligations, and impacts is completed with an associated socio-economic impact.

Policy Statement 3-5Alternate Uses of Closed Mines

38

Objective 2: Develop the Geological andTopographic Information InfrastructureDevelop and improve availability of territorial geoscience, geomatics andother data to attract investment in mineral exploration and mining.

Geoscience FundingOf the many criteria that are taken into account by exploration and miningcompanies when deciding where to invest, the availability and accessibility ofinformation is of paramount importance.

The more information that is readily available before an investment decision ismade, the more comfortable investors will be in reaching their decisions.

Quality geoscience is the basis from which exploration ideas are generated.Exploration ideas, in turn, interest and excite investors who are the driving forcein the exploration industry. Without geoscience, ideas founder and investors look

elsewhere for places to invest their high-risk dollars.

It is estimated that every dollar invested in geoscience generatesa minimum of $5 in exploration investment. The explorationinvestment then leads to the discovery of new mineral resourcesworth many times the investment (R.B. Boulton and Associates,1999).

Nunavut lags behind other Canadian jurisdictions in theamount and quality of public information. Particularly criticalfrom the point of view of investors in exploration in Nunavut, isthe need to improve the geoscience and geomatics databases inthe territory.

39



A study presented to Mines Ministers in 1999 estimated the cost to complete thefirst pass of regional 1:250,000 scale bedrock mapping at $69 million dollars. Thisdid not include the costs of regional geophysics, geochemistry, and surficialmapping that are commonly conducted at the same time.

At the Mines Ministers meeting in 2004, all jurisdictions including the federalgovernment endorsed the Cooperative Geological Mapping Strategies initiative.The federal commitment to the initiative remains unfunded.

The GN will commit to long term funding for theCanada-Nunavut Geoscience Office (C-NGO) beyond thecurrent 2008 agreement, and will continue to work withthe federal government for increased federalgovernment funding.

Accessibility of InformationThe second aspect of this objective is the accessibility of information. Geosciencedata, exploration assessment reports, data on environmental baseline monitoring,demographics, climate, etc. do exist, but are not always easily accessible to thepublic. Information that is inaccessible is effectively worthless.

New technology and new expectations have resulted in the need to change datadistribution allowing for free and accessible information available over theInternet.

The federal government, territorial departments, Nunavut Tunngavik, and theRegional Inuit Associations are working to improve access to information theyhold.

The needs of industry and the public would be best served by a cooperativeapproach in which access to all information is centralized and easy to operate.

Action 3-1Geoscience Funding

40

The GN recognizes the need for improvement of theterritory’s databases of public information (includinggeoscience and geomatics), for mineral industry use,and for the data to have easy public accessibility.

The GN will develop partnerships with INAC, NTI,NPC, C-NGO and other relevant agencies to digitizeGN and other Nunavut data to make all publicinformation relating to Nunavut free and accessiblethrough the Internet. This data will then beavailable for Nunavut interested investorsworldwide.

Policy Statement 3-6Comprehensive and Accessible

Information Database

Action 3-2Public Access to Geospatial Data

41



Nunavut consists of 20% of Canada’s land mass and more than half of its

coastline. This land is sparsely populated, with 25 communities widely

spread throughout the territory. This vast arctic region is largely

untouched by human development, and remains one of Canada’s most

sensitive and pristine environments.

The relationship Nunavummiut have withthis untouched natural world is somethingthat defines us as a people, and anyproposed activity that significantly affects thesensitive ecological balance will not be wellreceived.

Nunavut is also host to vast known andpotential mineral wealth, and Nunavummiutare well aware of opportunities this wealthcan provide.

This section of the strategy sets out policiesand actions that will help the territory gainthe maximum benefit from its resources,while ensuring that environmental impactsresulting from exploration and miningindustry activity are minimized andmitigated.

Objective 1: Improved Knowledge BaseImproved collection and dissemination of environmental scientificand Inuit Qaujimajatuqangit baseline data will facilitate land useplanning, permitting, and environmental monitoring andenforcement.

Pillar 4 Environmental Stewardship

42

Publicly Funded Research“Institutions of Public Government assess development impacts,

but are dependant for their effectiveness on the knowledge available and have limited resources. Important knowledge gaps exist in areas such as wildlife

population, habitat health, integration of formal scientific knowledge and InuitQaujimajatuqangit, and the assessment of cumulative impacts.”

Nunavut Economic Development Strategy, 2003, p. 34

“In developing our economy, our challenge will be to build our knowledge of the land in order to support protection of our environment

and appropriate development of its resources.” Nunavut Economic Development Strategy, 2003, p. 30

A serious issue that frustrates discussions on land use planning and developmentat all levels is the lack of reliable, comprehensive and up-to-date data onecosystems in Nunavut. It is difficult to predict, measure or mitigate impacts onecosystem components that are not well understood.

All decision-making related to environmental protection suffers from thisinadequate scientific and Inuit Qaujimajatuqangit data, and from the fact thatwhatever data exists is often not easily available to the public.

The collection of Inuit Qaujimajatuqangit can be controversial. Inuit and theirorganizations have treated traditional knowledge as being proprietary, and not forpublic record. When developing an initiative, which allows for public access toinformation, one must be aware of and sensitive to this fact.

The GN recognizes the importance of continuingresearch into all aspects of Nunavut’s naturalenvironment to help ensure that future decisions arebased on the best possible information. This includesthe capturing, where appropriate, of InuitQaujimajatuqangit through baseline studies oftraditional uses for land.

Policy Statement 4-1Research

Encouraging and Retaining Industry Funded ResearchThe collection of environmental baseline data is an essential part of anyexploration program. The costs of carrying out this data collection is, however,not recognized as a legitimate exploration expense, neither by the Canada Mining Regulations nor by the Canada Revenue Agency.

Not only does this fail to recognize that these activities are important, but, sincethe Canadian Mining Regulations do not provide assessment credit for the work,there is no reporting required and the data is often lost. Only the roughly 1 in2000 exploration projects that reach the environmental assessment stage reporton their environmental baseline work.

The GN endorses changes to the Mineral TenureAssessment Credit and Canadian Exploration Expensededuction under the Investment Tax Credit forExploration which will recognize environmental baselinedata collection as a legitimate exploration expense.

Government and Industry Research PartnershipsGovernment and industry have a shared interest inensuring that decisions on mineral development inNunavut are based on the best possibleinformation. Research into the environmentalimpacts of mining practices provides a means ofimproving management and mitigationmethodologies. It is important that governmentand industry work to develop research partnershipsas a means of better understanding and moreeffectively addressing environmental impacts,including wider regional and cumulativedevelopment impacts.

Policy Statement 4-2Tenure and Tax Credit for

Environmental Baseline Data Collection

43



44

The GN will encourage industry, where appropriateand practicable, to undertake on-site environmentalresearch as a part of their project and to participatein partnerships on wider regional and cumulativeimpact research relevant to their project.

The GN will consider changes to existing taxationregimes as a means to create financial incentives forenvironmental research, partnership development orother related initiatives.

Public Accessibility to DataAs with geological data and assessment reports (see section 3), environmentaldata that exists but is not easily available, is effectively worthless.

A comprehensive, easy to use, publicly accessible portal for public information,including environmental baseline data would be a significant first step toimproving the understanding of Nunavut’s ecosystems, and to improvingdecision-making related to environmental protection.

This issue is addressed in Action 3-2.

Objective 2: Protection of the EnvironmentMineral resource development will not compromise the territory’senvironment and, where possible, can be compatible with protection ofcritical and sensitive ecosystems.

Environmental SustainabilityNunavut is known to host a number of significant mineral deposits. The nearly 2million square kilometres of the territory are, by modern standards, virtuallyunexplored, and it is almost certain that new mineral discoveries will be made inthe future. It is argued that Nunavut’s future economic viability, and theimprovement of the quality of life of Nunavummiut, will depend on thedevelopment of these known and yet to be discovered resources.

Policy Statement 4-3 Environmental

Research and Partnerships

Action 4-1 Environmental

Research and Partnerships

Nunavut’s arctic environment is fragile, however, andNunavummiut will not tolerate development that hasunacceptable environmental impacts.

Inevitably, the push towards development of mineralresources and the need for environmental protection willcreate conflicts.

The Nunavut Impact Review Board and the otherInstitutions of Public Governance (IPGs) are required toexamine issues, encourage dialogue and discussion, and determine ifenvironmental risks are managed or mitigated in a project proposal.

Ultimately, NIRB must make the difficult recommendation as to whether or not adevelopment should proceed; the ultimate decision rests with the federalMinister.

In the cases where the proponent is unable to show thatenvironmental impacts of a mining project can bemanaged or mitigated, the GN will not permit mineraldevelopment.

Encouraging High Standards of Environmental Practice Mineral exploration and mining companies know that society now demands thatthey adhere to high environmental standards. The success of a project is nowmeasured not only by the quality of a discovery, or the profit a mine generates,but also by the abilities of management to achieve and maintain the “sociallicence” to operate.

To gain this social licence, companies must conduct their business in a way thatengages communities, guarantees the health and safety of employees, andminimizes the operation’s environmental impact. The industry as a whole canonly maintain its social licence over the long term by treating their projectas a “temporary use of the land”, and fully rehabilitating the site forother uses after mining or exploration is complete.

Policy Statement 4-4 Environmental Sustainability

45



46

The approval of mineral projects in Nunavut will bebased on the premise of sustainability by providingfor the future use of the land or water after thecessation of exploration or mining. The GN requiresthat proponents use good environmental andengineering practices that are appropriate to arcticconditions.

Particularly at the exploration stage, companies that strive for “bestenvironmental practice” in project management may have difficulty indetermining what this best practice entails. While there are environmentalmanagement guidelines for explorers, these do not focus on the uniquechallenges of exploring in the arctic. A set of environmental guidelines for arcticexploration would not only assist explorers in achieving responsible projectmanagement, but it would also give regulators and Nunavut residents a standardby which to measure a company’s performance.

The GN will work in partnership with the federalgovernment, the Nunavut Planning Commission, theland and resource boards and Inuit organizationstowards the preparation of a guide to goodenvironmental practices for mineral exploration,mining, and reclamation in Nunavut.

Policy Statement 4-5 Temporary

Use of the Land

Action 4-2Guide to Good Environmental

Practices

Objective 3: Permitting, Monitoring and Enforcement Allocation of resources for project permitting, as well as monitoring andenforcement of permit conditions, will work towards achieving the goal ofenvironmental protection.

Inspection, Monitoring and Regulatory EnforcementWell-conceived and implemented environmental protection policies are essentialif the goal of sustainable development is to be achieved. Governments mustprioritize resources to areas where they are most required and will be mosteffective.

Appropriate use of resources would see a simplified process for issuing permits formineral exploration, with a greater emphasis being allocated to inspections thatwill ensure conformity with permit conditions and contribute to environmentalprotection.

In order for environmental protection goals to be achieved, it is essential thatcompanies be inspected to ensure compliance with the conditions of theirpermits. While government departments and designated Inuit organizationsconduct inspections, there has been no broad assessment of the effectiveness ofthe inspection, monitoring and regulatory enforcement processes.

The Government of Nunavut (GN) will work withthe Department of Environment (DOE), Executiveand Inter-governmental Affairs (EIA), Indian andNorthern Affairs Canada (INAC), Worker’sCompensation Board (WCB), Department ofFisheries and Oceans (DFO), NaturalResources Canada (NRCan), Health Canada(HC) and the Regional Inuit Associations(RIAs) to conduct a thorough audit ofinspection, monitoring and enforcementrelated to mineral exploration andmining.

Action 4-3 Audit of Inspection,

Monitoring and Regulatory Enforcement

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48

Security BondingBefore being allowed to proceed with construction, companies proposing thedevelopment of a mine are required to prepare plans for mine closure andremediation of the site at the end of the mine life. Companies are also required topost a reclamation bond which will cover the cost of reclaiming the site, andwhich represents a significant up-front cost. Companies do not normally disputetheir obligation to reclaim mine sites, but disputes do arise over the amount thatmust be held in bond.

For example, companies will argue that they can fully reclaim a site for a certainamount of money, but this does not necessarily cover the event where theproponent becomes insolvent and a third party must be retained to do the work,at what may be a higher cost.

The federal government currently administers security bonding. After devolution,however, the GN will assume this responsibility.

After devolution, the GN will require that sufficientsecurity be posted so that the impact of anexploration or mining development can be fullyreclaimed by a party other than the proponent atany stage of the development.

Policy Statement 4-6Security Bonding

Conclusion Moving Forward

Nunavut has great potential for mineral development. The exploration

and development of our mineral resources will create direct opportunities

for people and businesses. The policies established in the strategy create

an immediate foundation that will guide the development of these

opportunities. The actions will be implemented over the next year. This

will involve building partnerships with

Nunavut Tunngavik Incorporated, the

federal government, Regional Inuit

Associations, the Institutions of Public

Government, communities, and

industry.

Parnautit is focused on building asustainable mining industry for the future.To realize the goal of a high and sustainablequality of life for all Nunavummiut there is much work to be done in other areasbut the sustainable development of our mineral resources will make the otherareas easier to address as we develop a strong economy throughout Nunavut.

Some of the key Actions contained in Parnautit will require specific planning andthe commitment of new resources. These Actions will be further defined in animplementation document that will follow.

49



Appendix A Action Matrix

• First draft expected Fall, 2006

• Project completion FY 08/09

• Consultations in FY 06/07

• Draft Bill, FY 07/08• Legislation passed

in FY 08/09

• Consultations, FY 06/07

• Draft Bill, FY 07/08• Legislation passed,

FY 08/09

• Internal resources,already allocated.



• Federal Act in place• Stable legal basis and enhanced functioning

of the NPC and NIRB, resulting inclarification of the regulatory processes,smoother and more timely processes, andimproved certainty of process

• Consultations carried out• Nunavut Mines Act drafted• Nunavut Mines Act passed into law• Modern legislation that is recognised

as supporting sustainable development• Improved regulatory certainty and a more

favourable climate for investment in mineral exploration

• Increased exploration expenditures in Nunavut

• Consultations carried out • Nunavut Mines Act passed into law • Number of mineral claims staked• Improved investor confidence and increased

exploration expenditures in Nunavut

PILLAR ACTION TIMELINE RESOURCES SUCCESS INDICATORS(output indicators and, in italics, outcomes)

Action 1-1LegislationThe Government of Nunavut willcontinue to work with INAC andNTI, in close consultation with theNPC and NIRB to completeestablishment legislation on a highpriority basis.

Action 1-2Nunavut Mines ActThe Government of Nunavut willwork with INAC, NTI, and the RIAson the development of a Mines Actof general application for Nunavut.

Action 1-3Mineral Tenure Act for NunavutThe Government of Nunavut willwork with INAC, NTI, and the RIAson the development of a modernMineral Tenure Actfor Nunavut thatwill incorporate electronic mapstaking.

Pillar 1JurisdictionalFramework

51



52


Action 1-4Nunavut WaterRegulationsThe Government of Nunavut willrequest that INAC begin a processfor developing Nunavut-specificwater regulations under theNunavut Water and Surface RightsTribunal Act. The regulations willhave appropriate thresholds toensure that water use is efficientlyand effectively regulated.

Action 1-5 Review of Permitting andRegulatory StructuresThe Government of Nunavut willcommission an independent reviewof the permitting and regulatorystructures in the territory.

Action 1-6Workshop on Permittingand RegulationFollowing an independent reviewthe Government of Nunavut willfacilitate a workshop in partnershipwith the federal government, NTI,RIAs, NPC, NIRB, and the NWB.

• Request from GN toINAC, FY 06/07

• Consultations, FY 07/08

• Regulations drafted, FY 07/08

• Regulations established, FY 08/09

• Issue RF, Fall 2006• Final report, March 2007

• Hold workshop, Spring 2007


• $75,000 Contract.

• $25,000 Contract.

• Consultations carried out• Regulations drafted• Regulations established• Improved efficiency of water use

permitting—as indicated by the median andmean number of days needed to obtain awater use permit

• Appropriate water use and care of waterresources

• Completion of permitting and regulatory review

• A clearer understanding of Nunavut’sregulatory and permitting processes

• High quality documentation to support theAction 1-6 workshop

• Identification of any areas of regulatory orprocess bottlenecks or duplication

• Completion of workshop• Level of attendance at the workshop• Improved drafting of legislation and

regulations• More informed participation in regulatory

and permitting processes• Improved advice provided to project

proponents• Mandate and commitment to address areas

of inefficiency• Improved permitting and regulatory

processes

Pillar 1


Action 1-7Uranium PolicyThe Government of Nunavut willparticipate with NTI and INAC in aneducation and awareness-buildingproject to animate discussionamongst Nunavut residents aboutissues related to the exploration anddevelopment of uranium.

The GN will also conductwidespread consultations to hearthe views of Nunavummiut andother stakeholders on these issues.

The Government of Nunavut willthen develop a uranium policy,which will take into account theviews of all stakeholders.

Action 1-8Taxation ReviewThe Government of Nunavut willcomplete the review of all territorialtaxes that are applied to mineralexploration and mining.

• Consultations,Winter/Spring 2007

• Draft policy, Fall 2007• Consultation on policy,

Winter 2008• Final policy to Cabinet,

Spring 2008

• Review, Spring 2007

• $100,000 forconsultation over two years.

• Internal resources, already allocated.

• Completion of consultations• Draft uranium policy available for

consultation• Acceptance of policy by Cabinet

and by NTI• Unambiguous GN position on uranium of

use both to investors and Nunavummiutrelated to uranium exploration anddevelopment

• Review document outlining relevant taxesin Nunavut; comparison of these withtaxes in other jurisdictions; analysis of theimpacts of the tax regime on mining andmine-related business, and presentation ofalternative tax regimes

• Mining exploration and developmentexpenditures continue to grow in Nunavut

• Nunavut’s ranking in industry surveys

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Pillar 1

54


Action 2-1Community ConsultationGuidelinesThe GN will develop CommunityConsultation Guidelines to promoteand facilitate dialogue andunderstanding betweencommunities, Inuit organizations,government and the mineralsindustry.

Action 2-2Awareness BuildingThe GN will continue to conductgeneral consultations incommunities to raise awareness andthe level of knowledge of theenvironmental and socio-economiceffects of mineral development.

Action 2-3Nunavut MiningSymposiumThe GN will support the NunavutMining Symposium as a forum forbuilding investor confidence andimproving relations betweencommunities, Inuit organizations,the minerals industry, andgovernment.

• Issue RFP, Spring 2007

• Receive final guidelinesdocument, Winter 2007

• Review and produceguidelines, Spring 2007

• Release guidelines to the public, Winter 2008

• Compile materials forpresentation to DeputyMinisters’ Committee, March 2007

• Carry out communitypresentations, on-going

• Enter into partnership,November 2006

• $100,000 Contract overtwo years.


• $50,000 per year,ongoing.

• Completion of consultation guidelines• Positive feedback from stakeholders on the

usefulness and effectiveness of the document• High level and quality of participation in

public consultations and hearings• Effective and efficient community

consultation processes

• DMEEL materials prepared and presented• Reports of presentations to communities• Improved awareness of mining issues in

communities, as indicated by the level andquality of participation in publicconsultations and hearings

• More effective and efficient communityconsultations by industry and IPGs, asindicated by the cost and duration of theseprocesses

• Formal partnership between GN andNunavut Mining Symposium

• A more stable and effective Nunavut MiningSymposium that builds investor confidenceand community understanding

Pillar 2CommunityBenefits


Action 2-4Earth Science and Miningin Public SchoolsThe GN will continue to developpublic school curriculum andresources, and deliver teacherworkshops in earth sciences andmining within the context of InuitQaujimajatuqangit.

Action 2-5Mine Training InitiativeThe GN will implement theNunavut Mine Training Initiative tofacilitate and coordinate trainingopportunities between industry,government, Inuit organizations,training organizations and fundingagencies.

• Hiring of Grade 7-9curriculum writer forgeology modules, Fall, 2006

• Pilot of Grade 7-9geology modules. Fall, 2007

• Implementation ofGrade 7-9 geologymodules, Fall, 2008

• Mine TrainingCoordinator, Fall 2006

• Nunavut Mine TrainingCommittee established,Winter 2006/07

• Nunavut Mine TrainingFund established, April 2007

• Internal resources, alreadyallocated.

• $75,000 for MineTraining Coordinator inFY 06/07, then $150,000per year.

• $200,000 for NunavutMine Training Fund: peryear, starting in FY2007/08, ongoing.

• New curriculum available and being usedby schools

• Level of satisfaction related to curriculumamongst teachers and students

• Earth sciences-related teacher resourcesdeveloped

• Earth sciences and mining workshopsdelivered for teachers

• Improved understanding amongst studentsand graduates of earth science concepts,and of career and livelihood optionsavailable to them in geology and mining

• Number of students moving on to trades andacademic earth sciences programs

• Closer ties between interested stakeholderswho can support—through funding and in-kind contributions—Nunavut-wide sciencecamps with a strong mining component thatsupplements the classroom courses

• Human Resource Strategies generated foreach new and functioning miningoperation in Nunavut

• A Pilot Project, based on a formalAgreement, underway for the placementof Nunavummiut at a mining operation

• EDT will have established a liaison,through Community EconomicDevelopment Organisations (CEDOs), withlocal businesses in communities impactedby mining opportunities to identify andsupport potential providers of goods andservices to the mining and relatedoperations

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Pillar 2

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Action 2-6Mineral ExplorationField Assistant CourseThe Nunavut Arctic College, inconjunction with EDT, Education,and Kivalliq Partners inDevelopment, has delivered apilot of the Mineral ExplorationField Assistant’s Course throughArctic College. This course willcontinue to be delivered on a“demand” basis in targetedcommunities, to help meet thegrowing minerals industry labourforce demands and maximizeemployment opportunities forNunavummiut.

• The course is on NACscalendar of courses,and is ready fordelivery in 2007

• Third party funding isarranged by NunavutArctic College withEducation and theapplicable regional Inuittraining organisation(CEDO).

• Human Resources Strategies in operationwith all active mining industry companiesthroughout Nunavut

• Increased numbers of Nunavummiuttaking and successfully passing pre-tradesand other training programs

• Number of participants in, and graduatesfrom, post secondary education and skillstraining related to the mining sector

• Number of Inuit-owned and Nunavut smallbusinesses providing goods and services tothe mining sector

• Nunavummiut and Inuit progressively fillingincreasingly higher levels of skilled positionsand are forming the “core” of Nunavut’smining workforce

• Number of courses delivered• Number of students enrolled• Number of enrolled students who

successfully complete the course• Increased Nunavummiut participation in the

exploration industry• Increased opportunities for advancement for

those already participating• Increased community awareness of the

minerals industry• Increased interest in education

Pillar 2


Action 2-7Nunavut ProspectorDevelopment ProgramThe GN will continue to deliver theNunavut Prospector DevelopmentProgram, through the IntroductoryProspector Course and NunavutProspector Assistance Program,which supports individualprospectors in discovering &developing new mineraloccurrences.

Action 2-8Community EconomicDevelopment PlansThe GN will work withcommunities to update theirCommunity EconomicDevelopment Plans toaccommodate and maximizeopportunities from majordevelopment.

• Nunavut ProspectorDevelopment Programwill continue until 2010

• Ongoing, dependingon developmentactivity: Target is toinitiate CED planmodification withinthree months of a NIRB response to aproponent’s ProjectDescription


• Internal staffresources andcontribution fundsalready in place.

• Continued interest in the IntroductoryProspectors course

• Continued full subscription in theProspectors Assistance Program

• Increased involvement of Nunavummiut ingrass roots prospecting

• Prospect discoveries by Nunavummiut andoptioning to exploration companies

• Increased employment of NunavutProspector Development Programparticipants in the exploration industry

• Number of revised Community EconomicDevelopment (CED) plans withmodifications specific to emerging miningopportunities

• Plans include measurable outcomes to beachieved

• Activities implemented at the communitylevel to address the opportunities andchallenges presented by emerging projects

• Achievement of the measurable outcomesidentified in the CED plans

• Improved partnerships between government,industry, and hamlets

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Action 2-9Socio-economicMonitoringThe GN will assist in providinginformation to facilitate socio-economic monitoring related tomineral development.

Action 3-1Geoscience Funding The GN will commit to long termfunding for the Canada-NunavutGeoscience Office beyond thecurrent 2008 agreement, and willcontinue to work with the federalgovernment for increased federalgovernment funding.

• Initiate GN socio-economic datacoordination during FY 2006/07, then on going

• New agreement inplace, April, 2007

• $150,000 for PY requiredfrom FY 07/08 onwardfor inter-departmentaldata consolidation.

• Internal staff resources,in place.

• Contribution funding inplace for three years

• Identified set of indicators and datasources

• Data available in a useable format• Improved understanding of socio-economic

baseline conditions during environmentalimpact assessment processes

• Improved efficiency of socio-economic datacollection

• Improved comparability between projectswith respect to socio-economic interactionssince the same data will be used

• Completion of a new geoscienceagreement

• Stable funding for geoscience in Nunavut• Increase in exploration activity in areas

targeted for geoscience research

Pillar 3InfrastructureDevelopment


Pillar 2


Action 3-2Public Access toGeospatial Data The GN will develop partnershipwith INAC, NTI, NPC, C-NGO andother relevant agencies to digitizeGN and other Nunavut data tomake all public information relatingto Nunavut free and accessiblethrough the Internet. This data willthen be available for Nunavutinterested investors, worldwide.

Action 4-1Government – IndustryResearch PartnershipsThe GN will consider changes toexisting taxation regimes as a meansto create financial incentives forresearch, partnership developmentor other related initiatives.

• Partnership established with INAC, NTI,and NPC

• Protocols and platform agreed on andproject initiated

• GIS Technician hired• Free and accessible public access to all

public geospatial data and relatedinformation

• Increased access to Nunavut geospatial dataas indicated by number of hits on websiteplatform

• The number and magnitude ofenvironmental research partnershipsundertaken between mining companiesand the GN

• Value of environmental tax incentivesutilised by industry

• A greater body of knowledge is created withrespect to the understanding of mining andenvironmental impacts in the North

• Mining companies in Nunavut becomeleaders in environmental “best practices”

Pillar 4EnvironmentalStewardship

• Hire a GIS technicianand developpartnership, Winter 2006/07

• Develop protocols for what materials will be digitized, Summer 2007/08

• Begin scanning, FY 07/08

• Tax system review, Spring 2007

• $35,000 in FY 06/07,then $150,000 per yearto hire a GIS technician.

• Internal staff resources,already allocated.

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Action 4-2Guide to GoodEnvironmental PracticesThe GN will work in partnershipwith the federal government, IPGsand Inuit organizations towards thepreparation of a guide to goodenvironmental practices for mineralexploration, mining, andreclamation in Nunavut.

Action 4-3 Audit of Inspection,Monitoring andRegulatory EnforcementThe GN will work with INAC, WCB,DFO, NRCan, HC and the RIAs toconduct a thorough audit ofinspection, monitoring andenforcement related to mineralexploration and mining.

• Completion of a Good EnvironmentalPractices Guide.

• Improved environmental protection asindicated by: reduced number of wildlifeencounters at exploration and miningprojects; reduction in spills; improvedinspectors’ reports; improved annual andmonthly reports

• Completion of permitting and regulatoryreview report

• Improved inspection, monitoring andenforcement systems

• Increased awareness among governmentdepartments, Non-governmentOrganizations (NGOs), and ultimately thepublic, of the need and role of inspection andmonitoring in ensuring the sustainabledevelopment of the territory’s naturalresources

• Improved ability on the part of the GN tounderstand inspection and monitoring issuesthat will fall to the GN upon devolution

• Establish internalworking group, Winter 2007

• Issue RFP, Winter 2007• Award contract,

Spring 2007• Release final guide,

Winter 2009

• Award Contract, Winter 2006

• Final report, FY end 2006/07

• Internal staff resources,already allocated.

• $60,000 contract.

• $30,000 contract.


Pillar 4

Appendix B Policy Statements

Pillar 1: Jurisdictional Framework

Policy 1-1One-window Entry PointThe Government of Nunavut supports the establishmentof the Nunavut Planning Commission as a one-windowentry point into the permitting process for mineralexploration and mining in Nunavut.

Policy Statement 1-2Land Access RestrictionsThe Government of Nunavut will require a review and assessment to determinewhether a proposed land access restriction is warranted. The GN will endeavourto ensure the goals of the proposed land access restriction are achieved whileminimizing the impact on undiscovered mineral resources. The review andassessment will take into account GN goals, legislation, policies and programsrelating to conservation, land-use planning, wildlife management and parks. Thisreview and impact assessment will be required before a land access restriction iscreated.

Pillar 2:Community Benefits

Policy 2-1Community ConsultationThe GN will consult with communities, Nunavut Tunngavik Incorporated, and theappropriate Regional Inuit Association where land management and resourcedevelopment activities may have impacts. The GN will ensure that communityconcerns are considered in the assessment of mineral development projects.

Policy 2-2Industry Consultations with CommunitiesThe GN encourages mineral exploration and mining companies to carryout appropriate, project-specific consultations with affectedcommunities before fieldwork begins and regularly throughout theproject duration.

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Policy 2-3Tenure and Tax Credit for ConsultationThe GN endorses changes to the Mineral Tenure Assessment Credit and CanadianExploration Expense deduction under the Investment Tax Credit for Exploration torecognize community consultation as a legitimate exploration expense.

Policy 2-4Value-added IndustriesThe GN will assess and encourage the development of economically viable, value-added industries that may flow from mining operations.

Pillar 3:Infrastructure

Policy 3-1Hub CommunitiesThe GN expects companies involved in mineral exploration and mining to use aNunavut community as a logistical centre for their operations.

Policy 3-2 Sustainable InfrastructureWhere possible the Government of Nunavut will leverage the investment ofprivate infrastructure being constructed to support mineral develop, to buildinfrastructure that will have permanent benefits for Nunavut.

Policy 3-3Energy InfrastructureThe Government of Nunavut encourages companiesadvancing mining developments in Nunavut to begin at anearly stage to address energy risks and options with bothQulliq Energy Corporation (electrical generation) and thePetroleum Products Division (fossil fuel use and storage) inorder to develop good projections of need and toanticipate potential areas of common investment andinfrastructure advantage.

Policy 3-4Development Partnership Agreements The Government of Nunavut encourages companies proposing miningdevelopments in Nunavut to negotiate a Development PartnershipAgreement with the GN, and anticipates that all developers, whetheror not such an agreement has been developed, will demonstrate aclear understanding of community opportunities and a thoroughreview of partnership options as part of their impact reviews.

Policy 3-5Alternate Uses of Closed Mines The GN will continue to require that all mine sites be fullyrehabilitated after the mine is closed. Alternate uses will only beconsidered once liability issues have been addressed, and a soundbusiness case outlining the alternate use, obligations, and impacts iscompleted with an associated socio-economic impact.

Policy 3-6Comprehensive and Accessible Information DatabaseThe GN recognizes the need for improvement of the territory’s databases ofpublic information (including geoscience and geomatics) for mineral industry use,and for the data to have easy public accessibility.

Pillar 4: Environmental Stewardship

Policy 4-1 Research The GN recognizes the importance of continuing research into all aspects ofNunavut’s natural environment to help ensure that future decisions are based onthe best possible information. This includes the documenting, where appropriate,of Inuit Qaujimajatuqangit through baseline studies of traditional uses for land.

Policy 4-2Tenure and Tax Credit for Environmental Baseline Data CollectionThe GN endorses changes to the Mineral Tenure Assessment Credit andCanadian Exploration Expense deduction under the Investment TaxCredit for Exploration, which will recognize environmental baseline datacollection as a legitimate exploration expense.

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Policy 4-3Environmental Research and PartnershipsThe GN will encourage industry, where appropriate and practicable, to undertakeon-site environmental research as a part of their project and to participate inpartnerships on wider regional and cumulative impact research relevant to theirproject.

Policy 4-4Environmental SustainabilityIn the cases where the proponent is unable to show that environmental impactsof a mining project can be managed or mitigated, the GN will not permit mineraldevelopment.

Policy 4-5Temporary Use of the Land The approval of mineral projects in Nunavut will be basedon the premise of sustainability by providing for the futureuse of the land or water after the cessation of explorationor mining. The GN requires that proponents use goodenvironmental and engineering practices that areappropriate to arctic conditions.

Policy 4-6Security Bonding After devolution, the GN will require that sufficient securitybe posted so that the impact of an exploration or miningdevelopment can be fully reclaimed by a party other thanthe proponent at any stage of the development.

N U N A V U T

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C A N A D A

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