THE DEAL

The Raglan Agreement has five principal benefits:

1. It awards priority of employment to qualified Inuit residing in Salluit and Kangiqsujuaq, in the region as a whole, and to other Nunavik Inuit.
2. It awards priority in contracts to competitive Inuit enterprises for work required during the mine’s operating phase.
3. It makes compensation and profit-sharing payments to the benefit of Salluit, Kangiqsujuaq, and Nunavik region inhabitants.
4. It establishes the Raglan Committee with one member from each of Salluit, Kangiqsujuaq, and Makivik, and three from Falconbridge. The task of this permanent committee is to oversee implementationImplementation: the carrying out or execution of an agreement, decision, or plan. of the agreement and to review any major environmental issues that may arise.
5. It establishes procedures for 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. the environment beyond regulatory requirements. The results of this monitoring are to be regularly reported to the Raglan Committee.

Additional highlights of the agreement are:

• A joint committee to oversee training programs.
• An overall compensation package estimated at $60-$100 million over the life of the project. A Guaranteed First Allocation of $10 million is to be paid over the first 15 years of the project (and continue thereafter at $800,000 per year until the end of the project). A Guaranteed Second Allocation of $4,125,000 is to be paid over the first 15 years of the project (and continue thereafter at $275,000 per year to the end of the project.) A Profit Sharing Allocation is to commence in the sixth or seventh year of operation, and will pay the Aboriginal signatoriesSignatory: any person or organization who has signed as a signatory to a document or agreement. 4.5% of Annual Operating Cash FlowAnnual Operating Cash Flow: a measure of a company's financial health. Equals cash receipts minus cash expenditures over a given period of time; or equivalently, net profit plus amounts charged off for depreciation, depletion, and amortization..
• Additional Payments of $50,000 made to Makivik every year for ten years.
• A representative of Makivik appointed to the mine's Board of Directors.
• Detailed projections of the mine’s development are to be submitted. Deviation from the mine’s original specifications will trigger re-negotiation of the agreement.
• The mine’s development may require relocation of Inuit camps and equipment. In that case, separate discussions are to address the necessary compensation or remediation.
• Any party may still claim compensation for damages caused by toxic substancesToxic Substances: poisonous matter (either man-made or natural) which causes sickness, disease and/or death to plants or animals. that result from the mine operations.
• There is a dispute resolutionDispute Resolution: a process by which two or more parties may discuss their disagreements and come to decisions about how to proceed. process to follow, if the parties cannot resolve a dispute by negotiation.