Minerals Industry Support for Bill C-47. Presentation to: e Standing Committee on Aboriginal Affairs and Northern Development

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Britney Shelton
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1 Minerals Industry Support for Bill C-47 Presentation to: e Standing Committee on Aboriginal Affairs and Northern Development

2 Introductions Nadim Kara, Senior Program Director, Prospectors and Developers Association Tom Hoefer, Executive Director, NWT & Nunavut Chamber of Mines We are here to support Bill C-47, with: Cover letter for NUPPAA and NWTSRBA More detailed written brief for NUPPAA Deck with some industry background

3 Mining s importance to the North Mining is the largest private sector contributor in the North Its direct contribution exceeds all other private sectors It also contributes to other sectors, eg, real estate, transportation and construction. Nunavut s one mine is already contributing ~ 15% of GDP NWT GDP (2009) Other 27% Public Admin 12% Real Estate 12% Mining 29% Transportation 7% Oil & Gas 4% Construction 9%

4 Mines create huge value NWT, Nunavut and Yukon Mining Production $2,500 $C Millions $2,000 $1,500 $1,000 NWT Nunavut Yukon $874 $779 $653 $682 $1,667 $2,112 $1,790 $1,638 $1,831 $2,123 $1,507 $2,045 $2,144 $500 $349 $385 $321 $272 $317 $414 $0 $35 $35 $4 $32 $35 $13 $ (p) Natural Resources Canada March 2012 World class diamond mines are a huge contributor to the NWT Nunavut s industry has the potential to match or exceed NWT

alue translates to huge community benefits

billion is Aboriginal Nunavut s gold mine

5 alue translates to huge community benefits From , diamond mines contributed: More than 17,000 person years northern employment Nearly 9,000 (more than 50%) Aboriginal Over $8.5 billion in northern business Nearly $4 billion is Aboriginal Nunavut s gold mine also making high contributions Mining is the largest employer of Aboriginal people

6 Huge Aboriginal business success iamonds helped create many new Aboriginal companies ati Services D Management Services Ltd. i Cho Logistics i Cho Landtran i Cho Cement i Cho Air enesoline Western Explosives etcon i Cho Explosives te Whii Ltd. te Whii Procon dexho Alliance ploration Medical Services tikmeot Cementation c De Gras Constructors ishi Khon SNC Lavalin Inc. orth Slave Logistics una Logistics curecheck c De Gras Constructors ishi Khon / SNC Lavalin Inc..T.B. Construction ouwa Whee Catering Det'on Cho DNX Det'on Cho Earth Energy Det'on Cho Foraco Det'on Cho Hazco Det'on Cho Nahanni Construction Det'on Cho New North Det'on Cho NUNA Det'on Cho Pure Earth Elements Environmental Solutions Det'on Cho Scarlet Security Det'on Cho Stantec Det'on Cho Training and Conference Centre Det on Cho Logistics Det on Cho Medic North Det on Cho Mining Supplies DICAN / ADG Kete Whii / Ledcor Kete Whii / Procon Trinity Helicopters Akaitcho Helicopters Dene-Emco Ltd. Denesoline/Aboriginal Engineering Ltd. Denesoline/Air Tindi Joint Venture Denesoline/Arcan Constructio Denesoline/De Beers Labour Contract Denesoline/Discovery Mining Services Logistics Expediting Denesoline/Deton Cho/Procon Denesoline/Deton Cho/Ledcor Denesoline/Dyno Nobel Denesoline/ESS Compass Denesoline/McCaw Drilling and Blasting Denesoline/Nuna Logistics Denesoline/Tlicho Logistics Lutsel K e Air Services

7 Corporate and Mining Taxes $700 $600 $500 $400 Diamond Mining Taxes Mining royalties NWT Corporate Taxes Federal Corporate Taxes $300 $200 $100 $ Source: GNWT ITI Economic Model

8 Various additional mining benefits Fuel & Property taxes paid to GNWT Tax Already paid Still to pay Total Fuel Taxes $ 77 million $ 68 million $145 million Property Taxes $123 million $260 million $383 million Total $200 million $328 million $528 million $34 million in Resource Royalty sharing with settled Aboriginal claimants since 2001 (devolution promises more) Claimant Group Gwich in Sahtu Tlicho Diamond Royalty share $ 11 million $ 10.8 million $12.8 million

9 Unfortunately mines don t last forever Current NWT and Nunavut mine lives Ekati Diavik Snap Lake Cantung adowbank Mining Operations

10 dvanced projects could become new mines Selwyn ase metals) Izok (base metals) Courageous (gold) Hackett River (base metals) High Lake (base metals) Ulu (gold) Hope Bay (gold) Mary River (iron) Roche Bay (iron) NICO (gold,cobalt, bismuth) Prairie Creek (base metals, silver) YK Gold (gold) Pine Point (base metals) Nechalacho (rare earths) Gahcho Kue (diamonds) Lupin (gold) Kiggavik (uranium) Jericho (diamonds) Back River (gold) Committee Bay (gold) Meliadine (gold) Chidliak (diamonds)

11 Not slam dunks, but good potential for new mines Jericho ok & High Lake pin & Ulu Gold Hope Bay Back River Hackett Kiggavik Meliadine Mary River Roche Bay Gahcho Kue NICO Pine Point Nechalacho llowknife Gold Prairie Creek Nunavut Projects NWT Projects

12 NWT exploration is not what it could be $600 NWT, Nunavut and Yukon Mineral Exploration $C Millions $500 $400 $300 $200 NWT Nunavut Yukon $100 $ NRCan November 2012 NWT languishing should have similar investment levels as NU and Yukon. In the face of strong global boom, our actions created a bust in the NWT.

13 Canadian Share of Exploration NWT & NU as % of Total Canadian Mineral Exploration % of Total Canadian Spending Nunavut NWT NRCan November 2012 Legislative uncertainty in the NWT has created Investment decline. We need to take actions to create a real turnaround.

14 Industry support for Bill C-47 We support the enactment of the NWTSRBA Provides a court of last resort to help deal with land use conflicts Important to fulfil land claim obligations Readies legislative framework for devolution We support the enactment of NUPPAA with six amendments

15 Amending NUPPAA will add balance Economic Social Environmental The Sustainable Development Triangle

16 NUPPAA: Timelines Timelines and Timeframes: We strongly support establishing an environmental and socio-economic review & assessment process of 24 months Good for investment, and supports Nunavut s unique logistical challenges with seasonal windows of opportunity for construction Further refinements can be made to various open ended timelines, eg, clauses 92(4), 110, 112(9), 120(8) & 131. Recommend: further review of timelines in order to verify that they will consistently achieve the federal government s objective of not more than 24 months to complete reviews

17 UPPAA: Schedule 3 Exemptions Incomplete chedule 3 Classes of Works and Undertakings Exempt from creening Schedule 12-1 of the Nunavut Land Claims Agreement authorizes NIRB and the Minister to agree on additional classes of activities and projects that are exempt from screening If the Minister and NIRB have made any agreements of this kind, Schedule 3 should list the exempted works and activities It is important for Schedule 3 to be populated in the final version of the Act so that potential exemptions are clearly set out Recommend: Schedule 3 be completed and included in the final version of NUPPAA ultimately proclaimed into law.

18 Minor Variances: NUPPAA: Minor Variances Minor variances provide a flexible and adaptive approach to projects that, strictly speaking, may not entirely conform GOOD HOWEVER, process for dealing with minor variances is quite complex Recommend Commission be authorized to grant or deny minor variances. Recommend: NUPPAA be amended by deleting subsections 81(3), 81(4) & 81(5) and renumbering subsection 81(6) as subsection 81(3).

19 NUPPAA: Offences Offences under Land Use Plans: Inappropriate, unnecessary and unorthodox to create offences under land use plans Offences also not contemplated by the Nunavut Land Claims Agreement. Offences are more appropriate under the permits issued by regulators, permits that require compliance Recommend: NUPPAA be amended by deleting subsection 48(4) along with the references to that provision in subsection 69(1) and paragraph 74(f).

20 NUPPAA: Grandfathering Retroactive Application of New or Amended Land Use Plans: Billion dollar mine investments are captive to their mineral deposits, and cannot move if rules are changed Current NUPPAA has complex, ambiguous & potentially contradictory wording on grandfathering Recommend: NUPPAA clearly provide that new or amended land use plans do not apply to licences, permits or other authorizations required for projects after their original submission or approval; or where projects have been suspended or works will be rebuilt within a period of less than five years after their original approval.

21 NUPPAA: 5-Year Review Recommend 5-year Review While we strive for perfection, it is virtually inevitable that further refinements and adjustments will be necessary. 5-Year Review currently underway under the Yukon Environmental and Socio-economic Assessment Act Could have resolved MVRMA challenges sooner Recommend: NUPPAA be amended to provide that the legislation must undergo a comprehensive review initiated 5 years after proclaimed into force.

22 Conclusion Mining is the North s economic advantage Mining is creating significant community benefits We must sustain and grow these benefits NUPPAA and NWTSRBA can add to a stronger, more certain, and beneficial minerals industry for northerners and Canada

23 Why it matters Courtesy Diavik Diamond Mines Inc.

Mining the North. Prospects North 2013 Conference Tom Hoefer: September 10, Key Messages

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