Raglan’s Inuit royalty cash to go out in coupons

People in Kangiqsujuaq and Salluit will receive coupons instead of cash next year as part of their profit-sharing deal with Xstrata’s Raglan mine. (FILE PHOTO)

KANGIQSUALUJJUAQ — Individual royalty payments from Xstrata’s Raglan nickel mine will arrive in residents’ mailboxes this year as coupons rather than cheques, Makivik Corp. executives announced at their annual meeting in Kangiqsualujjuaq this week.

The transfer of more than $8 million from Xstrata will go first to Inuit land claim beneficiaries in Salluit and Kangiqsujuaq — the villages closest to the mine — and then to beneficiaries in the rest of Nunavik.

But this year people won’t get cash.

The $8 million windfall will be divided up in coupons for exchange at co-op stores, Northern stores or the Newviq’vi retail store in Kuujjuaq,

People in Salluit will get roughly $3.5 million in vouchers, while people in Kangiqsujuaq will get $2.5 million, with the remaining money going to the rest of the region.

Makivik, which manages the royalties fund, said the decision to switch to coupons was taken to make it “easier” for residents.

In 2008 and 2009, some people said Raglan profit-sharing money was a good thing because it paid to buy equipment for traditional activities or to pay off debts like rent arrears.

But the bonanza also encouraged many beneficiaries to head off to Montreal for wild shopping sprees.

In Salluit, many residents took the summer off, causing big labour shortages in the community.

And there was more drug trafficking and bootlegging, with an increase in the number of injuries and medevacs also rose.

For at least one man, Charlie Mark Savidjuk of Salluit, the profit-sharing money proved lethal in 2008.

Saviadjuk, 35, disappeared into Montreal, where he is said to have started using crack cocaine. His body was later fished out of the St. Lawrence River.

Some delegates at the organization’s annual general meeting argued that Nunavimmiut need the Raglan profit-sharing money to pay their rent.

But they learned the vouchers can be used at local co-ops to pay items such as personal accounts, childcare fees and Air Inuit payments.

The profit-sharing on $8 million, up slightly from the $7.7 million transfer last year, will be distributed this fall.

Any beneficiary resident at least 18 years of age by April 1, 2010 is eligible to receive the coupons.

Profit-sharing from Xstrata’s nickel mine has meant millions of dollars for residents of Salluit and Kangiqsujuaq in recent years.

The Raglan Agreement, the Inuit impact and benefits deal for the nickel mine, gave $23 million to the two communities closest to the mine, out of a total of $32.5 million handed over to Makivik Corp. in 2007.