Canadian Royalties signs impact/benefits agreement with local Inuit

Canadian Royalties (CZZ-T, CRYAF-O) is one step closer to development for its Nunavik Nickel project in Northern Quebec now that it has signed an impact and benefits agreement with 15 communities and the Makivik Corporation, a non-profit that gives legal representation to Inuit people.

The agreement serves as a formal commitment by Canadian Royalties to ensure fair distribution of economic benefits from the project for the duration of the mine life.

It also ensures Inuit participation in the project through hiring and contracting locally in preference to regional Inuit supplier services. The company will also implement training programs for local job seekers.

Grant Arnold, Canadian Royalites’ vice-president of exploration, says the agreement is important and paves the way for the company going forward.

“These things aren’t easy many people are unfamiliar with these issues, many see (IBA agreements) as an aside,” Arnold says. “This is a partnership with the communities they have to be on side.”

Arnold says the company has been meeting with members of the different communities to get their input about the project.

Many people were concerned about upsetting the environment, migration patterns for animals and taking over areas where people usually hunt, says Lukasy Pilurtuut, president of the Kangiqsujuaq Landholding Corporation.

“The main concern was the environmental impact on the migration of caribou,” Pilurtuut says, noting the open pit mine that Canadian Royalties plans to build.

“A lot would prefer underground but the potential of the ore is not deep enough,” he says.

Pilurtuut also says people were concerned about increased shipping traffic at the port on Deception Bay where Xstrata (XSRAF-O, XTA-L) has been shipping ore for the last 10 years from its Raglan nickel-copper mine. How the extra noise would affect seal and baluga whale hunting in the bay was the main worry.

Xstrata’s existence in Nunavik has been helpful for both Canadian Royalites and the local people in signing this agreement

“People are more aware of the impact of a mining operation,” Arnold says. “And on the flipside, we’ve learned from Xstrata’s experience.”

One example is the dust created by trucks shipping ore, which can get on fish meat hanging to dry.

Arnold says this issue has been addressed by wetting the road when it’s dry and using a certain kind of asphalt.

Something that Canadian Royalties is doing differently than Xstrata is tailings storage. The company plans to produce paste tailings which will be sealed in a lined tailings cell. When it’s full, it will be covered and permanently sealed; much different than Xstrata’s traditional tailings pile.

“It’s a big mountain that we can see,” says Pilurtuut of Xstrata’s tailings pile.

However that doesn’t bother Pilurtuut personally.

“I would prefer to see it,” he says.

Pilurtuut says the economic benefit from the Nunavik Nickel project is welcomed.

“We are very happy about the jobs,” he says, noting the training programs in heavy equipment operating, carpentry and prospecting.

Canadian Royalties plans to employ about 300 people during the construction phase and about 270 when the mine is in full production.

Arnold says it’s difficult to say at this point, but he expects there will be about 80 to 90 positions ensured for local people. Examples of Inuit employment include heavy equipment operators, using the local Inuit Air service and a local catering company to feed mine staff.

Arnold says there are some skilled positions such as a mill operator, that require specialized diplomas which few Inuit have.

“For those positions you need people with diplomas,” he says. “That’s not easy because of the high drop out rate.”

Arnold says the company and the Quebec government will be encouraging that local people seek out further training in places like Val d’Or.