MLA says NTI uranium deal a conflict of interest

The Government of Nunavut should wade into impact and benefit talks with mining firms because Inuit organizations have put themselves into conflicts of interest and do not protect Inuit interests in such talks, Tununiq MLA James Arvaluk said May 28 in the legislative assembly.

Arvaluk, whose community of Pond Inlet sits on the doorstep of the massive Mary River iron ore project, said Inuit land-owning organizations “are only paying lip service to Inuit” when they negotiate with mining companies.

And Nunavut Tunngavik Inc.’s part-ownership of a uranium exploration firm called the Kivalliq Energy Corp. puts the organization in a conflict of interest, Arvaluk said.

“When will the Government of Nunavut start participating in these talks to protect the interests of the people of Nunavut?” Arvaluk asked Levinia Brown, the deputy premier.

Arvaluk also said it would be “dangerous” if the Qikiqtaaluk Corp. were to acquire an interest in the Mary River project similar to NTI’s ownership of a uranium firm.

“Can you tell the House, as the deputy premier, whom the people of Pond Inlet, Igloolik, Hall Beach, Clyde River, and Arctic Bay can turn to, to represent and protect their rights in regard to the mining and oil development, particularly when their own representatives in the Inuit organizations own an interest in these projects?” Arvaluk asked.

Brown replied that only Inuit organizations have the right to negotiate deals with mining companies.

But she said she shares Arvaluk’s feelings on the issue and believes that the GN should be “included at the table when agreements are being negotiated and be included in the discussions.”

Nunavut Tunngavik Inc. holds and manages Inuit-owned lands that include sub-surface rights. Regional groups such as the Qikiqtani Inuit Association manage Inuit-owned lands that carry surface rights only.

It’s Inuit organizations, not governments, that get royalties and lease payments for use of these lands. And the land claim agreement says it’s Inuit organizations, not communities or governments, that must negotiate impact and benefit deals with developers.

The QIA is negotiating an Inuit impact and benefit agreement with Baffinland Iron Mines Corp. for the Mary River project, but Arvaluk suggested that his constituents feel left out.

“All we can do is watch the events unfold as the mineral property is being developed right under our noses,” Arvaluk said.

He said he’s also worried about the agreement that NTI recently worked out with Kaminak Gold Corp. to create a new uranium firm called Kivalliq Energy Corp., in which NTI will hold an interest of about 25 per cent.

That’s because he fears that Inuit will lose out on royalty payments and other benefits.

“The announcement states that if they’re going to be taking part in the mining sector and own the company, they cannot collect the royalty. I think we understand that clearly right away,” Arvaluk said.

He said that’s another reason why the GN should enter IIBA negotiations.

Brown told Arvaluk that she would take his questions on notice and provide a further reply after doing more research on the issue.