QIA recently completed its renegotiation of the Mary River IIBA. A renegotiation of the IIBA is set to take place every three-years. The IIBA can also be renegotiated at other times if both QIA and Baffinland Iron Mines Corp. agree. This renegotiation focused on the experiences of the first five years of the IIBA.

Before starting the IIBA renegotiation QIA:

• conducted a community tour
• an internal assessment of how the IIBA was working to date
• consulted the Executive Committee and Board

What was the focus of the renegotiation sessions?

Making improvement to the following areas of the IIBA;

• Training and Education
• Employment and Contracting
• Social and Cultural
• Implementation, Monitoring and Enforcement

QIA’s goals and achievements for the Mary River IIBA renegotiation

QIA’s Goals for Training and Education:

• Accessible training and education opportunities
  • Availability of training programs in Inuktitut to encourage more participation.
• Training for higher-level jobs such as management, electricians and mechanics.
• Greater QIA involvement in training and employment at the Mary River project to support access to opportunities and benefits for Inuit.

What was achieved in Training and Education?

• A regional training centre in Pond Inlet – $10 million toward its design and construction
  • This training centre will be developed by QIA and Baffinland along with the community of Pond Inlet and the Nunavut Arctic College.
• Expansion of the Inuit training budget.
  • $2.25 million per year (2018-2021)
  • $1.5 million on the delivery of training to Inuit (2021-2031)
  • Delivering the Work Ready Program (three times per year by Baffinland)
    • Trainings provided in Igloolik, Sanirajak, Arctic Bay, Pond Inlet and Clyde River
    • All Inuit who enter training will be hired as Baffinland employees
      • Medical assessments will not be used as a barrier to enrollment

QIA’s Goals for Employment:

• Prioritization of equitable Inuit employment
  • Inuit want good jobs at the mine and an increase in the Inuit employment rate
  • More information on the jobs available through outreach materials and career fairs
  • Many Inuit feel there are too many barriers to employment at the mines

What was achieved in Training and Education?

• Four permanent site based Inuit Human Resource Advisors (hired by Baffinland)
  • These staff will provide direct support to Inuit employees, including Inuit working for contractors at Milne Inlet and Mary River
• An Inuit recruiter (hired, trained by Baffinland)
  • This position will be based in Nunavut and will focus on Inuit in Nunavut
• Continuation of QIA’s Inuit labour pool database, Tuttarvik
  • To link Inuit interested in training and jobs to employers and training opportunities.
• Inuit from ALL Baffin communities will be given priority for hiring.
  • This includes ensuring that all transportation and accommodation costs are covered by Baffinland at no net cost to the employee.
• All seasonal and short-term employment opportunities will be advertised and offered to Inuit.
• Community information sessions on employment and training opportunities
  • The sessions will focus upon Igloolik, Sanirajak, Arctic Bay, Pond Inlet, Clyde River and Iqaluit (every three months hosted by Baffinland)
    • Efforts will be made to also visit all communities within the region.
  • A formal skill equivalency process
    • This will allow the work and life experiences of Inuit to be assessed based on the opportunities and experiences they gained in Nunavut.
  • An Inuit Internship Program (run by Baffinland for 10 years)
    • Offered to four Inuit on an annual basis,
    • Two of the positions in non-traditional mining fields such as Human Resources or Finance
  • A formal orientation (provided by Baffinland to all Inuit employees)
    • Including an introduction to the Employee Handbook, mandatory training, introduction to the Inuit Human Resource Advisors and an eight-week formal check-in.
  • Career path planning (provided by Baffinland)
    • To support any Inuk who wishes to increase their skills and/or move to another position
  • A focus on Inuit retention
    • Including conducting exit interviews and assessing the feedback received from Inuit employees.
  • Revised Minimum Inuit Employment Goals
    • These new goals will be designed around specific job categories and skill sets.
    • This will allow for more detailed planning related to employment and training opportunities for Inuit.
  • Overall Inuit Employment Target of 50%
    • Baffinland and QIA have agreed on this target
    • This target is in addition to the annual Minimum Inuit Employment Goal.
    • The Inuit Employment Target will be revisited in 10-years time.

QIA’s Goals for Social and Cultural:

• Inuit traditions benefits and protection
  • Inuit want money for social programs and traditional activities

What was achieved in Social and Cultural?

• Enabling Fund ($400,000/year for 10 years)
  • This is money for a gas program for Inuit in Pond Inlet
  • To allow more accessible travel to Inuit in the area
• Theses funds are in addition to the already existing Wildlife Compensation Fund which provides $750,000 to Inuit harvesters if an incident of loss or damage occurs related to the mine (provided by Baffinland)

QIA’s Goals for Implementation, Monitoring and Enforcement:

• Resources to enable Inuit to monitor impact of the mine
  • Inuit want resources to carry out monitoring projects

What was achieved in Implementation, Monitoring and Enforcement?

• Project Monitoring Fund ($200,000/year for 10 years)
  • This is money is specific for the community of Pond Inlet and is to support the community run independent monitoring projects related to the impacts of the Mary River Project
  • Projects will be run and developed by the five impacted communities
• Marine Equipment Program ($300,000/vessel)
  • Every three years Baffinland will purchase and transfer ownership of a research vessel to Pond Inlet, Arctic Bay, Clyde River, Igloolik and Sanirajak
  • The goal is that within 12-years each community will have received a research vessel
• Enhanced Royalty Agreement
  • The existing royalty agreement under the IIBA has been modified to ensure a more stable flow of royalty payments to QIA.
  • The changes to the agreement mean that starting in 2019 QIA will begin to receive payments based upon actual sales of iron ore.
  • If the royalty payment to QIA from the sale of iron ore is not greater than $5M then QIA will still receive Advanced Payments.
  • The royalty rate and the limit for Advanced Payments remain the same.