Agnico Eagle’s IIBA talks with Inuit org reach an impasse

Ben Angoshadluk, 23, stands at the entrance of the ramp that leads to Meliadine’s underground pit this past summer. (PHOTO BY SARAH ROGERS)

Agnico Eagle Mines Ltd. has asked the federal government to intervene and provide compulsory arbitration in its talks with the Kivalliq Inuit Association on an Inuit impacts and benefits agreement for the proposed Meliadine gold project.

Agnico Eagle said Oct. 24 that it has asked Aboriginal Affairs and Northern Development Canada to appoint an arbitrator to help the two parties reach a deal on the financial compensation component of the IIBA, as well as with “preference points” for Inuit contractors.

The outstanding IIBA issues would be settled through compulsory arbitration, which means the federal government would impose a settlement.

Article 26, part 3, of the Nunavut Land Claims Agreement explains that negotiation and arbitration must be related to the nature, scale and cost of the project, as well as it direct and indirect impacts on Inuit, without placing an excessive burden on the project owner.

Since IIBA talks began in January 2012, representatives from KIA and Agnico Eagle have held 15 negotiation sessions, along with a number of working group meetings.

The latest of those sessions was held in Rankin Inlet earlier this month, “where progress was achieved and agreements reached on several remaining issues,” said a release issued jointly by KIA and Agnico Eagle Oct. 24.

“However, Agnico Eagle and the KIA have been unable to reach agreement on all aspects of the IIBA.”

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 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.