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THE DEAL

The details of the Ekati IBA are confidential. It is known to have included annual compensationCompensation: something (such as money) given or received as payment or reparation (as for a service or loss or injury). payments of $250,000 for all four First Nations4 and terms for employment and business opportunities, training programs, and scholarships.5

Here are some of the important terms of the Ekati IBA:

  • QuotasQuota: the share that is due from, due to, or allocated to a person or group. for employment6
  • Annual cash payments7
  • Training and education programs8
  • Health and wellness programs, counselling and support programs9
  • numerous and challenging opportunities for community businesses10
  • Scholarships and funding for some cultural activities (for example, caribou hunts)11
  • BHP Billiton must pay for an Independent MonitoringMonitoring: the act of observing something and often keeping a record of it. People monitor mining activities or impactsImpacts: the effect or impression of one thing on another such as the impact of a mining project on the life of an Aboriginal community. in order to determine their effect on the land, resources, and communities. Agency to track how well the parties carry out the terms of the IBA12

The LKD in return had to agree that community members would not oppose future mine expansionExpansion: increasing the area or size of a mine or exploration area. Expansion may trigger a new environmental assessmentEnvironmental Assessment: a written report, compiled prior to a production decision that examines the effects that proposed mining activities will have on the natural surroundings.. or other activities by BHP Billiton on the claim block. By signing all the agreements LKD affirmed its support of the mine’s construction and operation, as approved by government.13

To LKD, this agreement was the beginning, not the end of negotiations with BHP Billiton. The IBA requires that the parties to the deal review it in five years. LKD leaders will use this review to renegotiate the aspects of the agreement that they are not happy with. Several clauses in the agreement (for example, those concerning compensation payments) are not renegotiable, however.14

Although its details may not be made public, the Diavik Participation Agreement is similar to the Ekati agreement. One difference is that the Diavik agreement orders that the mine’s entire workforce eventually come from the North.

Like the Ekati IBA, the Snap Lake IBA provides the LKD with benefits like training, education, employment, business opportunities, and compensation. It also sets a target of 40% local employment during the construction of the mine.