Nunavik Nickel Agreement

The agreement was the first impact and charitable agreement signed in Canada between a mining company and an indigenous group. Canadian royalties have agreed to increase the percentage of profits paid to Makivvik and municipalities if the price of nickel has remained higher than $12 per pound, down from about $7.50. In 2007, mining began as the source of the Restor-Action Nunavik Fund (FRAN), a fund designed to restore abandoned mining exploration areas in Nunavik for several decades. In October 2007, the Kativik Regional Government (KRG), makivik Corporation, the Ministry of Natural Resources (MNR) and FRAN signed a contribution agreement that initiated rehabilitation efforts at all sites that, thanks to the expertise acquired through pilot projects, required significant work. “You have to understand that this was one of the first agreements of its kind negotiated in North America, perhaps even in the world,” Keatainak said. The Nunavik nickel mine is 22 miles from Xstrata Nickel`s Raglan nickel mine and is in “one of the most inhospitable places in the world,” its president John Caldbick said in a recent interview. At a Chinese-owned mine in Nunavik, giant ice-class ships will soon cross the Hudson Strait to bring nickel, copper, platinum and palladium to European markets. These barriers included serious financial difficulties, unforeseen problems with the construction of the port and reception facilities along the Hudson Strait, delays in an agreement with Xstrata on parts of Donaldson Airport, and a series of disputes after Jien Canada Mining Ltd. took ownership of the Canadian royalties. From deception Bay, the company plans to ship the concentrate nine months a year from next August, as part of an agreement to supply nickel to Russia`s Norilsk Nickel in Finland, which in 2007 bought a $25 million stake in the project.

Nunavik officials sign the Raglan agreement fev.28, 1995 in Kuujjuaq. The agreement was the first impact agreement signed in Canada between a mining company and an indigenous group. (PHOTO COURTESY OF RAGLAN MINE) The Raglan mine was commissioned in December 1997 and is located near the New Quebec Crater (Pingualuit National Park) and the municipalities of Salluit and Kangiqsujuaq. The property extends for nearly 70 km, from east to west, and consists of a series of mainly producing nickel and copper deposits. When negotiations for the agreement began, the people of Salluit had only one project to compare it: the asbestos mine that was operated in the 1970s near the commune.