Agnico Eagle, KIA return to discussions over Meliadine

Meliadine’s main exploration camp building houses dormitories and offices for its 90 employees. (FILE PHOTO)

Agnico Eagle Mines Ltd. says it is back at the table with the Kivalliq Inuit Association in hopes of hammering out an Inuit Impact and Benefits Agreement for the company’s Meliadine gold project.

The news of revived talks come two weeks after Agnico Eagle had asked Aboriginal Affairs and Northern Development Canada to appoint an arbitrator to help the two parties reach a deal.

After more than a dozen negotiating sessions over the last two years, progress had been made, mine owners said Oct. 24, “however, Agnico Eagle and the KIA have been unable to reach agreement on all aspects of the IIBA.”

The two sides apparently reached an impasse on the financial compensation component of the IIBA, as well as with “preference points” for Inuit contractors.

In the case of compulsory arbitration, the federal government would have the ultimate authority to impose a settlement.

But according to a Nov. 7 Agnico Eagle news release, the company and KIA are once again engaged in discussions and “attempting to schedule further meetings.”

“As a result of these continuing negotiations and in the spirit of trying to arrive at a mutual agreement, Agnico Eagle has asked the Federal Minister of Aboriginal Affairs and Northern Development that the appointment of an arbitrator requested on October 24th be postponed until February 2, 2015,” Agnico Eagle said in the release.

Since IIBA talks began in January 2012, representatives from KIA and Agnico Eagle have held at least 16 negotiation sessions, along with a number of working group meetings.

The Nunavut Impact Review Board recommended Oct. 10 that the federal government approve Agnico Eagle’s proposed Meliadine gold mine, subject to 127 terms and conditions.

But without an IIBA, the Meliadine project cannot receive its project certificate to move forward.

If the project goes ahead, Meliadine would be the territory’s second gold mine, after Agnico Eagle’s Meadowbank mine near Baker Lake.

Agnico Eagle has said Meliadine, located about 25 kms north of Rankin Inlet, could produce 400,000 ounces of gold per year over its 13-year lifespan, which hopes to run from about 2018 to 2030, and possibly longer.