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Human Rights Assessment
8. Human Rights and Communities – Full Finding
Key message
The Baffinland company will make a number of direct and indirect contributions to the Inuit communities through taxes, royalties, impact benefit payments and voluntary contributions to social programmes. These socio-economic contributions have the potential to make a very important positive contribution to human rights for more than a generation and to have a transformative effect on communities. However, it is very important that there is consultation, planning, coordination and monitoring by all stakeholders to ensure that the money is invested with a long-term strategy. From a human rights perspective, the predictable negative social impacts that mining communities experience should be addressed in a pro-active manner.
Overview
The first question for communities is about the taxes, royalties and other payments that Baffinland makes to governments and the Designated Inuit Organizations. The government should spend this money in a way that protect, respects and fulfils human rights. For example, government spending on medical clinics in the communities should enhance the right to health; and, contributions by the DIOs to training programmes should promote the right to education and the right to work. The key to understanding whether taxes, royalties and other payments are having positive impacts on human rights is the transparency of the different revenue flows from the Mary River mine.
One potential issue to monitor is the misalignment between the government departments that receive increased revenues from the mine and those that will have to address the predictable negative social impacts related to mining. For example, the government of Nunavut, the municipality of Iqaluit and the hamlet councils will be on the front-line for rising demands on local infrastructure and services, but will not receive the majority of the economic flows from the mine. Coordination and framework agreements between different levels of government, the DIOs and the communities are important to ensure that there is not a gap in funding to address negative human rights impacts.
The second question is about Baffinland’s direct contributions to communities. Baffinland has already made significant voluntary contributions in communities and it has pledged to make further contributions to local development funding initiatives. These initiatives can have important positive impacts on human rights. For example, providing computers for school children contributes to the right to education and enhances future opportunities for the right to work. Including beneficiaries in the on-going consultation about and monitoring of Baffinland’s voluntary contribution programs can maximize their results in terms of human rights.
Beyond its voluntary contributions, Baffinland must address the negative human rights impacts that are related to the mine’s operations. In the public hearing, the RCMP talked about some problems about crime, violence, alcohol and gambling that other northern mining communities have experienced. These problems can have negative impacts on the right to health and the right to security of the person. Other concerns expressed relate to potential negative impacts on the right to housing, the right to food, and the right to traditional livelihoods and culture. These social issues have many causes, but the responsibility to respect human rights implies that Baffinland should work with communities, governments and other stakeholders to proactively address them. These are the issues that should be prioritized by Baffinland’s development funding initiatives.
International Legal Standards
• Obligation of the State to promote economic, social and cultural rights.
o Using the maximum available resources
o Ensuring minimum levels of economic, social and cultural rights
o Avoiding deliberately retrogressive measures
o Ensuring non-discrimination and equality
o Allowing for participation, transparency and accountability
• The general responsibility for companies with respect to human rights is to "do no harm;" therefore some social investments may be viewed as 'mandatory' in the sense that they address the negative impacts of a company's operations.
• Other social investments may be viewed as 'mandatory' because they are part of a formal commitment that a company made with a community, government or financial institution in order to obtain consent and approval to the project.
• Other social investments may be viewed as 'voluntary' because they are not addressing negative impacts or formal commitments; however, these still represent an opportunity to enhance various international human rights.
• Universal Declaration of Human Rights, Articles 23, 25, 26
• International Covenant on Economic, Social and Cultural Rights, Articles 6, 11, 12, 13
• OECD Guidelines for Multilateral Enterprises, General Policies #1
• ICMM Sustainable Development Framework, Principle 9; ICMM Position Statement on
• Mining and Partnerships for Development; and ICMM Position Statement on Indigenous Peoples, Commitment #7
• UN Global Compact and UNIFEM Women’s Empowerment Principles #6
• UN Common Approach on Human-Rights Based Approaches to Development
• Indigenous peoples rights are focused on the ability of indigenous people to participate in the design, planning and implementation of development project that are supposed to benefit them. See UN DRIP, Article 32 and ILO 169, Article 15(2)
Economic contributions from Baffinland
• The mine’s economic contributions to the State have the potential to contribute positively to the fulfilment of a range of human rights. For the purpose of this assessment, the main international human rights standards are those associated with the State’s general obligation to progressively realize the economic, social, and cultural rights of its citizens. (International Covenant on Economic, Social and Cultural Rights)
• To the extent that Baffinland’s economic flows contribute to specific social programs or infrastructure projects, there may be an enhancement of a range of human rights, such as rights to water, health, or education.
• Employment and the associated improved income can provide for enhancement of human rights, specifically the right to work and an adequate standard of living.
• Furthermore, the company’s economic contributions are also part of providing indigenous peoples with benefits from the exploration and exploitation of mineral resources. Indigenous peoples are supposed to be consulted upon and participate in those benefits. (UNDRIP)
• There are fewer questions and indicators in the DIHR HRCA tool to assess the company’s compliance in this area, but the international standards and guidelines for companies include:
o Contributions to economic, social and environmental progress with a view to achieving sustainable development; (OECD Guidelines, General Policies 1, ICMM Principle 9)
o Contributions to the public finances of host countries by making timely payment of tax liabilities; (OECD Guidelines, Chapter X on Taxation)
o Payment of wages to local employees and contractors to enhance the economic, social and cultural rights of those individuals and their dependents, and also to provide an indirect benefit through spending in the community and contributions to public finances through taxation.
• The measures a company takes to combat corruption and promote transparency of its payments to governments are also important for supporting the human rights benefits and preventing injustice or impropriety. (ICMM, May 2009, Section 3.7; OECD Guidelines, Chapter VI on “Combating Bribery”; UN Global Compact, Principle 10; ICMM 2010, Principle 1; and GRI, SO2 to SO6).
Community investments by Baffinland
• Social investment and other development projects have the potential to enhance economic, social and cultural rights.
• They may also enhance civil and political rights through capacity-building that permits beneficiaries to develop the skills to participate more fully in democratic society.
• Social development programs are also a primary mechanism for delivering on UN Declaration on Indigenous Peoples Rights requirement that indigenous peoples participate in benefits of the exploration and exploitation of mineral resources on their lands.
• To the extent that social investment programmes prioritize health, education, economic development and micro-financing, the main international human rights standards relevant to this assessment are:
o Right to health;
o Right to education; and
o Right to work and an adequate standard of living.
• More broadly, social investment projects contribute to the rights of indigenous peoples to participate in the benefits of the exploitation of natural resources pertaining to their land.
• Relevant international standards and good practice guidance for a company’s contributions to social investment projects include:
o Contributions to economic, social and environ- mental progress with a view to achieving sustain- able development;42
o Opportunities for culturally appropriate development benefits through a process of free, prior and informed consultation and the informed participation of the affected communities of indigenous peoples;43
o Developing an understanding of the social and economic contribution of the project, including an analysis of the barriers that might weaken this contribution;44 and
o Actively supporting partnerships or collaborations with other stakeholder groups, with the aim of ensuring the project’s full potential socio-economic contribution is realized.45
Programs to mitigate negative social or economic impacts funded by Baffinland
• The corporate responsibility to respect human rights requires companies to “do no harm” and to address all the negative impacts that arise from their operations. (Protect, Respect and Remedy, paragraph 24 and 25)
• Potentially, the full range of internationally-recognized human rights is at risk from a company’s activities. The priority areas of risk and potential for negative impact for the Mary River mine are identified in the other sections of the assessment.
• In some cases, addressing negative impacts requires Baffinland to refrain from undertaking actions, notably in relation to civil and political rights (e.g. refrain from calling upon public security forces to address the risk of negative impact on the right to security of the per- son or freedom of association). In the area of economic, social and cultural rights, the primary mechanism for Montana to address the potential negative impacts of its operations is through social investments and development programs.
• There is also an obligation in the UNDRIP to provide compensation to indigenous peoples for any damages sustained as a result of mineral exploitation, as part of indigenous peoples right to participate in the development benefits of exploration and exploitation of natural resources.
• Furthermore, commitments to mitigate negative social and environmental impacts were also included in the FEIS as well as the NIRB report. As commitments and conditions are closely related to respecting human rights, these confer additional responsibilities for Baffinland from the point of view the “Protect, Respect and Remedy” framework (paragraph 24) as well as for compliance with the regulatory requirements of the project.
• This is reinforced by relevant industry standards and good practice guidance for addressing social and environmental impacts of projects. (IFC, 2006, Performance Standard 1, paras. 13-16, Performance Standard 7, para. 8; ICMM, 2010b, Principle 3; ICMM, May 2009, 3)
Canadian Legal Standards
• Apart from the contractual commitments undertaken in agreements with Designated Inuit Organization (e.g. IIBAs) or with NGOs to deliver social programs, there is no legal requirement for companies to make direct social investments in Canada. Nonetheless, social investments and corporate donations are encouraged through income tax measures and as part of many company's CSR strategies.
• In Nunavut, there is an obligation to negotiate an IIBA as part of the NLCA
• The s. 35 duty to consult and accommodate can require investments in measures that mitigate negative impacts.
• NIRB mandate for the Mary River Project includes socio-economic impacts
o N.B. the provisions in s. 24 of Bill C-47: “The Board is not authorized to establish, in the exercise of its powers or the performance of its duties, requirements relating to socio-economic benefits.”
• Obligation to pay various levels of taxes and royalties which may have an indirect impact on social and economic rights, depending on how these revenues are spent by governments and DIOs.
Mining Association of Canada, “Towards Sustainable Mining”
• TSM does not contain any performance measures related to contributions to sustainable development; however, recent MOU with PWYP Canada seeks to develop a reporting framework that includes comparable information about resource contributions of the Canadian mining industry. (Further discussed in section on transparency)
ICMM
• ICMM Sustainable Development Framework, Principle #9: “Contribute to the social, economic and institutional development of the communities in which we operate.”
• ICMM Position Statement, “Partnership for Development” (January 2010), that includes a number of recognition statements and commitments.
• ICMM, “Human rights, social development and the mining and metals sector” (June 2012)
o The links between human rights, social development and the mining and metals sector
o Recommendations for government and industry
• ICMM, “The role of mining in national economies” (October 2012)
o Table 4: Main components of production value
• Operating expenditures
• Salaries and wages
• Capital expenditures
• Taxes
• Financing Costs
• Profit for shareholders
o Finding #5: “Even in countries where mining and metals play a major role, there can be large discrepancies in the benefits that accrue at the national level and the benefits at the local level.”
Company policies and commitments
Arcelor Mittal
(http://www.arcelormittal.com/corp/corporate-responsibility/communities)
At ArcelorMittal, we recognise that investing in a country goes beyond just running successful steel or mining operations. It involves engaging with and contributing to the development of local communities.
Education
In the field of education, we recognise our responsibility to share our technical expertise and build up the local skills base. This is why we invest in local training and education programmes, as well as building our own research and development centres. For example, we built specialist facilities for the Karaganda Metallurgical Institute in Kazakhstan, a specialist institution that has trained some of ArcelorMittal’s most senior technical specialists.
Health
Health is a fundamental entitlement of every human being, and improving health facilities is at the core of our communities work. From Ukraine to Senegal, we have built new medical centres and polyclinics for employees, their families and the wider community.
Community Development
At the heart of most communities are good family homes. In Ukraine, ArcelorMittal Kryviy Rih has provided its employees with free housing. There are further plans to build three more residential buildings in the city.
Arcelor External Stakeholder Engagement Procedure
1. Purpose
The ArcelorMittal External Stakeholder Engagement Procedure defines the minimum requirements for engaging with external stakeholders for all Company operations and subsidiaries. It is mandatory, and is to be reported at unit and corporate level as part of ArcelorMittal’s commitment to transparent reporting.
2. Contents
A. Scope and objectives
The ArcelorMittal External Stakeholder Engagement Procedure provides guidelines for establishing and maintaining good relationships with local stakeholders including residents, nongovernmental organisations, local authorities, customers, suppliers, academia and other institutions.
This Procedure does not apply to engaging with ArcelorMittal employees, contractors, sub-contractors or Trade Unions, which is covered by the ArcelorMittal Employee Relations Policy.
External stakeholder engagement at ArcelorMittal has three objectives:
• To earn the trust and respect of our external stakeholders.
• Demonstrate active and visible leadership in stakeholder engagement.
• To build and protect our brand, reputation and safeguard our license to operate.
B. Minimum requirements
Each operating subsidiary must meet the following requirements.
i) Legal obligations
In implementing this Procedure, each site must comply with all applicable local laws and regulations on stakeholder engagement and community consultation, which must be incorporated into the basic design of a stakeholder engagement programme.
ii) Stakeholder identification, analysis and engagement
Develop an understanding of the Company’s stakeholders and their concerns, including those stakeholders who may be vulnerable because of their age, race, ethnicity, gender, status
in the community or any other defining factor.
Undertake regular, at least quarterly, stakeholder and issue prioritisation and integrate the information into Company decision-making processes.
Have a dedicated, regular and inclusive programme for engaging stakeholders in a culturally appropriate manner through informal and formal events.
iii) Information disclosure
Disseminate Company information in a format and language(s) that is accessible to stakeholders.
Devise and publish an annual Stakeholder Engagement Plan.
Publish an annual overview of the stakeholder engagement activity, through a local Corporate Responsibility report, website, stakeholder engagement plan or newsletter.
Publish regular summaries of outcomes of stakeholder meetings, in a locally appropriate format.
iv) Grievance mechanism
- Establish an accessible grievance mechanism to handle complaints on Company activity in a systematic way and ensure that stakeholders are made aware of it and how it works.
- Ensure that the complainant, or other persons associated with the complaint can seek redress with a guarantee of protection from harassment, prosecution or any other form of reprisal or retaliation,
v) Management functions
Include stakeholder engagement in the Company’s formal management structure with the appropriate human and financial resources, including at least one person to coordinate
activities.
Record details of stakeholder engagement activity and prepare documentation for audit reviews.
Report to the CEO and the management board regularly on the activity.
Submit the annual Stakeholder Engagement Plan to the Group Corporate Responsibility Team.
Review the external stakeholder engagement activity annually.
Arcelor Mittal Human Rights Policy
Scope:
Local communities: We seek to respect human rights and to develop an understanding of the cultures, customs and values that prevail in our local communities by developing an inclusive and open dialogue with the people affected by our operations. The ArcelorMittal Community Engagement Standard requires us to conduct an open and inclusive dialogue with local
communities, including engaging with often under-represented groups such as women and Indigenous Peoples.
Specific Provisions:
Local Communities
Avoiding Involuntary Resettlements ArcelorMittal seeks to avoid involuntary resettlements. In situations where it is unavoidable, we commit to comply with the national government’s or regional authorities’ guidelines on resettlement and rehabilitation and also act in line with
international human rights norms on this subject.
Respecting Indigenous Peoples’ Rights ArcelorMittal respects the rights of Indigenous Peoples as defined by applicable national and emerging international standards.
Adopting Proportionate Security Arrangements ArcelorMittal aims to ensure that the provision of security to our operations and our engagement with public and private security
forces is consistent with the laws of the relevant country and relevant international standards and guidelines, such as the Voluntary Principles on Security and Human Rights. We will adapt
our security arrangements to balance the need for safety while respecting human rights.
Developing practices for Land and Water use ArcelorMittal works towards understanding and applying sound practices for land and water use consistent with emerging
international practices while respecting human rights, and in support of our Environment Policy.
Arcelor Mittal – Corporate Social Responsibility Report 2011
(http://www.arcelormittal.com/corp/news-and-media/publications-and-reports/cr-report2011)
Community engagement: Wherever we operate, we aim to contribute to the development of strong and sustainable communities. We conduct local assessments to define the key areas for engagement that help us to assign our resources and identify new issues for management. Our relationship with communities is important to us. We have a detailed external stakeholder engagement procedure (updated in January 2012), previously called the ArcelorMittal community engagement standard, that we expect all our sites to follow. Every major production site must identify their key stakeholders, their main issues of concern, and then devise a plan to engage with them. Each major operation must also set up a grievance mechanism, so that local people can raise concerns, and be confident that they will be addressed. (p39)
Human rights in the community: Four of the 12 policy aspects covered by the ArcelorMittal human rights policy relate to our communities – ranging from topics such as access to land and water to resettlement. ArcelorMittal seeks to avoid involuntary resettlements. In situations where it is unavoidable, we commit to comply with the national or relevant regional authorities’ guidelines on resettlement and compensation and also act in line with international human rights norms. All resettlement activity is preceded by stakeholder consultation, to understand and inform how it could be done in a manner that would best benefit those affected and offer them a better quality of life as a result.
Our human rights policy asserts our commitment to respect Indigenous Peoples’ Rights. Currently our engagement centres around the Baffinland Project in the Arctic in Northern Canada, where we are preparing for a future mining project. The policy also requires us to develop practices for land and water use in reference to human rights concerns. Thus we aim to include human rights elements in our future environmental and social action plans wherever possible (p40).
ArcelorMittal Foundation: The ArcelorMittal Foundation was set up in 2007 to be a channel for the company’s community investment activities. It concentrates its work on the communities across the world where ArcelorMittal has a major presence, with the aim of making a positive contribution to the social and economic development of the areas around our operating sites (p40-42).
Baffinland sustainability policy
(http://www.baffinland.com.vs2.korax.net/wp-content/themes/baffinland/images/SDPolicy%2011-09-09.pdf)
3.0 Investing in our communities
We respect human rights and the dignity of others. We honour and respect the unique culture, values and traditions of the Inuit people.
We contribute to the social, cultural and economic development of sustainable communities adjacent to our operations.
We honour our commitments by being sensitive to local needs and priorities through engagement with local communities, governments, employees and the public. We work in active partnership to create a shared understanding of relevant social, economic and environmental issues, and take their views into consideration when making decisions.
Mary River FEIS commitments
Volume 4 – Human Environment
Revenues
Summary of revenues flowing to the territorial government
During the construction phase Project tax payments are estimated to total roughly $12.5 million per year. This represents approximately 1 % total territorial revenue from all sources. It is noted, though, that this early revenue stream will account for over 10 % or more of the territorial government’s “own-source” revenues of $89 million.
During operations, approximately $17 million per year will flow to the territorial government through property tax and taxes on inputs such as fuel and labour. Taxes on net corporate income (“profits”) earned in Nunavut will also be paid to the territory. This is currently taxed at a rate of 12 %.(FEIS, volume 4: 232)
Significance Determination
The beneficial effect of Project revenues flowing to the territorial government is assessed to be significant over the life of the Project. During operations, taxes paid on property and on inputs of fuel and labour are expected to total nearly 20 % of the territory’s “own-source” revenues. Taxes paid on corporate profits will contribute further revenues to the government. The magnitude of this corporate profits tax is not estimated given the uncertainty and variability caused by factors outside the control of Baffinland, such as iron ore prices, fuel costs, exchange rates and interest rates. (FEIS, volume 4: 232)
Impact statements (FEIS, volume 4: 240-242) – socio-economic
14.1.1 Summary of Impact Statements for VSECs (value socio-economic component)
Impact Statement for the Population and Demographics VSEC
The Project will have multiple residual effects on the Population Demographics VSEC (Section 2.0) for some of the communities in the North Baffin LSA. These will affect individuals, families and communities, and may include positive as well as negative directions. The dynamic nature of human and community interactions makes it difficult to predict the overall direction (positive or negative) and magnitude of such changes. Mitigation measures implemented by Baffinland aim to enhance the positive residual effects of the Project on this VSEC. Based on the best available understanding of the dynamics involved in these decisions, there is moderate confidence that negative residual effects will have no significant effect on Population Demographics.
Impact Statement for the Education and Training VSEC
The assessment of the Project’s residual effects on life skills and on education and skills, combined with a consideration of the subjects of note, concludes that the Project will have a significant positive effect on education and training. This effect is expected to be confined to the LSA and should have sustained benefits that will be felt beyond the termination of the Project. Given the mitigation measures committed to, as described in the HRMP (Appendix 10F-3), confidence in this assessment is high.
Impact Statement for the Livelihood and Employment VSEC
The Project is assessed to have no significant adverse residual effects on the Livelihood and Employment VSEC (Section 4.0). With successful implementation of planned mitigation, it is assessed to have significant beneficial effects on this valued component.
Impact Statement for the Economic Development and Self-Reliance VSEC
The overall direction of the effects of the Project on the Economic Development and Self-Reliance VSEC are assessed, with a high level of confidence, to be positive. Direct and indirect economic expansion associated with the Project will create new opportunities for employment and business across the RSA, and particularly within the LSA. The Project will enhance labour force capacity and may increase Inuit business capacity. The assessment of Project interactions on land and land use dimensions of this VSEC suggest that these effects will be multi-dimensional. No significant adverse effects on the underlying VECs are assessed. The integrated analysis of the combined effects of the Project does not lead to an assessment of adverse effects on harvesting. Considering the Project’s interactions with these multiple dimensions related to Economic Development and Self-Reliance, the residual effects of the Project are assessed to be positive and significant.
Impact Statement for the Human Health and Well-Being VSEC
The positive residual effects of the Project on the Human Health and Well-being VSEC (Section 6.0) are assessed to be significant. Improved income is a major factor in this assessment, as it will improve the well-being of most children whose parents work at the mine. Some negative residual effects are expected to occur in relation to the well-being of some children arising from absence of workers from the community. These effects are not expected to reach levels that would cause significant adverse impacts on the VSEC,however. The Project will have positive and negative residual effects on substance abuse, but these are not assessed to be significant.
Impact Statement for the Community Infrastructure and Public Services VSEC
The assessment of the Project’s residual effects on the Community Infrastructure and Public Services VSEC (Section 7.0), combined with a consideration of the subjects of note, leads to a conclusion that the Project will have a significant positive impact this valued component.
This conclusion is based on an assessment of no significant adverse residual effects on community infrastructure and services arising from competition for skilled workers, and on an assessment of significant labour force capacity development.
Impact Statement for the Contracting and Business Opportunities VSEC
The direction of the effects of the Project on the Contracting and Business Opportunities VSEC are assessed, with a high level of confidence, to be positive. Baffinland, through the IIBA, is committed to work closely with the QIA and will fund an initiative for capacity building that will be administered by the QIA. The company is also committed to an Inuit contracting policy adapted to the capacity of Inuit firms.
The successful implementation of these mitigation measures, and the active participation of individuals in these programs, will largely determine the significance of the Project’s residual effects on contracting and business opportunities. In light of the mitigation measures adopted by Baffinland, the residual effects are assessed to be positive and significant.
Impact Statement for the Cultural Resources VSEC
The Project will involve the avoidance, protection and mitigation of archaeological sites in accordance with an Archaeological Mitigation Plan approved by CLEY, and a protection plan to reduce the potential for unintentional destruction of archaeological sites. With the implementation of both the mitigation and protection plans, the Project is expected to have negligible residual effect on the disturbance or removal of archaeological sites, and on the cultural resources VSEC.
Impact Statement for the Resources and Land-use VSEC
The Project will interact with current land-use activities such as harvesting, travel and camping. Direct adverse residual effects on these activities are acknowledged. With planned mitigation described in the Key Indicator assessments these effects are predicted to be not significant. Concerns that Project effects on these Key Indicators along with other residual effects on relevant VECs and VSECs might combine to lead to adverse effects on Resources and Land-Use and on harvesting livelihoods were raised during the DEIS technical review. These concerns are addressed in detail in this Volume, Section 4.3. The integrated analysis of the combined effects of the Project does not lead to an assessment of adverse effects on harvesting. The interactions are expected to be complex and highly inter-twinned with other factors affecting harvesting in the LSA. The potential for beneficial outcomes is equally or more highly anticipated than the potential for negative effects. An analytical framework developed for this assessment is carried forward into the monitoring framework of this Volume, Section 15.0.
Impact Statement for the Cultural Well-being VSEC
The Project will affect Inuit culture and its development through interactions with Inuit cultural values. To a large degree, these interactions will be positive. The opportunities for productive livelihoods based on self-reliance and sharing of resources, learning and sharing experience through supervisory and role-model functions, and for monitoring the environment are all relevant and supportive of these values. This conclusion that productive employment is aligned with Inuit culture in the contemporary context is something that has also been expressed by Elders during community consultations.
It is acknowledged, however, that culture has many facets. Different perspectives on industrial development and its effects on culture have been heard during community engagement. Some individuals have deep concerns about the effect of on-going economic development and expansion of the wage economy on Inuit culture. What may be a positive cultural effect for some—access to a job that enables one to provide for family and relatives—may be a negative cultural effect for someone else. For these reasons, Project effects on culture are considered to be diverse in their directions—neither positive nor negative. No significant impact is assessed.
Impact Statement for the Benefits, Royalty, and Taxation VSEC
Through its contributions made under the IIBA, as well as payments of royalty, rents, and taxes, the Project will have a significant beneficial effect on the Benefits, Royalties, and Taxation VSEC (Section 12.0). The Project is also expected to reduce social entitlement program expenditures while modestly increasing demands for discretionary social spending.
Impact Statement for the Government and Leadership VSEC
The Project is considered to fit well with the strategic priorities identified for both the RSA and the communities of the North Baffin LSA. An effective governance regime will be in place with the signing of an IIBA and, through partnership with the Q-SEMC, Baffinland will contribute to socio-economic monitoring important to the region’s leadership. Therefore, the Project is considered to have a positive and significant effect on the Government and Leadership VSEC (Section 13.0).
14.1.2 Summary of Project Effects on Key Indicators
See: Table 4-14.1 presents a summary of the impact statements for each of the key indicators associated with the socio-economic VSECs (p243 -245)
Socio-Economic Monitoring Framework
Section 15.0 (volume 4 FEIS, p246)
This monitoring framework is designed to address how Baffinland’s Mary River Project will be monitored to assess socio-economic effects and to support management decisions. The framework also addresses how Project monitoring will fit in with public monitoring activities and how it can contribute to advancing understanding of socio-economic processes in Nunavut.
The framework has been prepared through a collaborative process involving BIM, QIA, GN, and AANDC participants. This included two informal meetings with these agencies in Iqaluit during October and November, 2011, along with two working sessions with the QIA socio-economic advisor in Edmonton and Ottawa. This collaboration has been helpful in the development of this framework. Baffinland is, of course, solely responsible for the final product included in this FEIS.
Baffinland recognises that collaboration in monitoring is necessary given the multiple sources of influence over socio-economic changes taking place across the territory. The expectation is that a collaborative approach to socio-economic monitoring will continue as the Project proceeds.
The Mary River project socio-economic monitoring plan is designed specifically to address the following monitoring functions arising from internal and external needs for data:
• Monitor Inuit participation and IIBA implementation
• Provide data on indicators that affect Project performance
• Support community, regional and territorial monitoring initiatives
• Support Baffinland’s management system and adaptive processes
• Contribute to understanding of socio-economic processes
• Support compliance monitoring
Section 16.0 - Conclusions
The Mary River Project represents important and significant socio-economic benefits to Nunavut. These benefits will apply at the level of North Baffin communities, the Baffin Region, and to the territory overall. These effects are expected to arise primarily from employment of local residents as well as the training and education benefits associated with these employment opportunities. Increased human health and well-being, associated with the benefits of meaningful employment, increased self-reliance, and a reduction in poverty levels is anticipated. Other beneficial effects will arise from the Project’s tax payments to government and from resource royalty and IIBA payments to Inuit organizations. Beneficial effects are also expected to arise from procurement of goods and services from Inuit and northern businesses and from the associated capacity building within the business sector, both locally and on a regional level. These benefits represent value both in their short-term contribution of income to households, enterprises, and organizations as well as over the long term through their positive contribution to the capacity of individuals, businesses, and organisations.
An important consideration addressed in this Volume has been the question of the Project’s interactions and overall effects on Inuit hunters. The outcome of the Project on harvesting and land-use activities will arise from the combined interactions of the Project on a wide range of factors that influence these activities. This includes effects on marine and terrestrial wildlife as well as effects on the human environment through interactions ranging from household income, rotational work, ability to travel across ice and land due to the Project’s rail and shipping components. These effects have been considered throughout the FEIS and are summarized in this Volume. The potential for beneficial outcomes on harvesting activities overall is equally or more highly anticipated than the potential for overall negative outcomes. However, the range of interactions and the diversity of individual engagement in these activities mean that a wide diversity of responses will be experienced. Baffinland has heard the concerns raised by community residents and agencies, and acknowledges that some disruption will be caused by the Project. The detour around Steensby Inlet caused by the ship track is a specific example of the sort of disruption that is anticipated. The Company has committed to on-going Inuit engagement and collaborative monitoring around this issue.
The benefits represented by the Project will not come without a cost. In particular, the fly-in/fly-out lifestyle can be challenging for many families and children. Mitigation to support workers and their families will not remove the fact that workers will be away from their community for half the time. For families that succeed in adapting to this lifestyle the rewards may be considerable in a financial sense and from the increased mental well-being that often comes with economic self-reliance and meaningful work. Additionally, increases in income will allow individuals to purchase expensive equipment for the pursuit of traditional activities such as hunting. Having two weeks off the job to spend with family and in other pursuits such as going out on the land, may be an added benefit. For those for whom the fly-in/fly-out lifestyle does not work so well, the hope is that local economic development stimulated by the Project will generate employment opportunities in the community. The reality is that such effects will require considerable planning and coordination amongst community leaders and territorial partners.
Other potential costs of the Project may arise from the increased affordability of illegal substances, potentially leading to greater substance abuse and lost opportunities. The possibility that some young adults may choose work over school completion has also been noted as a potential negative outcome. In both these situations, the Project is expected to alter the playing field for individuals faced with these decisions. With this Project in place, the rewards will be substantially increased (from what they are under baseline conditions) for many of those who overcome addictions or who gain education. Simply introducing new opportunities for education, training and employment may have major beneficial effects on the outlook for the future for many young people. These cost-benefit effects, however, rely on a sufficient number of individuals succeeding and being seen to succeed, in these areas of opportunity. This includes success in gaining life skills and maintaining employment, success in job promotions and career advancement, and success in business development related to the Project. In all these areas, early, recognizable success will act as a catalyst to encourage others to succeed.
Given the importance of on-going mitigation and partnership activities, monitoring of Project outcomes and changes generally taking place in the socio-economic environment will be critically important to support effective management response. Maintaining close communication with residents and local leaders through on-going stakeholder engagement will be key to detecting successes and failures so that they can be built upon or addressed, as appropriate. Gathering Project-generated data and participation in collaborative efforts to track broader socio-economic indicators will be useful in discussions with local leaders and others with community perspectives.
Human Resource Management Plan (Appendice 10F-3)
Section 11.0 – Support for communities (HRMP, p29)
Baffinland recognize that while the Project presents Inuit communities with substantial opportunities, it is also likely to create social and cultural impacts and stresses on these communities, including families and individuals. Because of the long duration of the Project needs and opportunities will evolve.
Mitigating existing and potential impacts, promoting community well being, and developing long-term individual and community capacity is a shared responsibility of Baffinland, the QIA and the Government of Nunavut. Baffinland will cooperate in efforts to address this challenge.
The communities must be engaged in the development and implementation of strategies to build the capacity necessary to enable communities to deal with existing and potential impacts and to maximize benefits from the Project and to sustain those benefits beyond the life of the Project.
It is very difficult to measure and predict social and cultural impacts in advance of construction and operations. Baffinland will thus make proactive efforts to address impacts and to capitalize on benefits as they are identified over time. Efforts to address existing and potential social and cultural impacts must include capacity building and the well being of individuals, families and communities to sustain a productive workforce and build good relations with Inuit and Inuit communities.
Baffinland’s contributions to capacity building and long-term social development include its commitments to employment, training, contracting, and subcontracting. These provisions do not impose any responsibility on Baffinland to assume the role of government or responsibility for social services and infrastructure.
Section11.1. Ilagiiktunut Nunalinnullu Pivalliajutisait Kiinaujat (INPK fund)
To provide the required community support and capacity building, Baffinland will contribute to Ilagiiktunut Nunalinnullu Pivalliajutisait Kiinaujat (INPK) (administerd by the QIA). The terms of Baffinland’s participation in this fund are established by the signed IIBA. The INPK fund has the following objectives:
• creating opportunities for capacity building and synergy with existing capacity in the communities
• ensuring equity and fair distribution of impacts and benefits within and between communities and across generations
• maintaining consistency with community development goals
• ameliorating social and cultural consequences if a proposed mitigation or enhancement is unsuccessful or in the event that unanticipated impacts emerge
• promoting mutual understanding and learning
• ensuring transparency and accountability
Activities supported by the fund could include, but are not limited to:
• participation in community projects
• youth and Elder programs
• hunter support activities
• family and community-wide activities and programs
• cultural learning and revitalization programs
• social support programs for families and individuals
• individual and family financial planning
• educational incentives
• counselling and healing programs
• seed funding or operational funding for local charities and social organizations
Archaeological Mitigation Plan
Appendix 4D - Preliminary Archeological Mitigation Plan
NIRB conditions and recommendations
Term and Condition No. 129 – Population Demographics – Qikiqtaaluk Socio-Economic Monitoring Committee
Term or Condition: The Proponent is strongly encouraged to engage in the work of the Qikiqtaaluk Socio-Economic Monitoring Committee along with other agencies and affected communities, and it should endeavour to identify areas of mutual interest and priorities for inclusion into a collaborative monitoring framework that includes socio-economic priorities related to the Project, communities, and the North Baffin region as a whole.
Term and Condition no: 130 – Population Demographics – Project-specific monitoring
Term or Condition: The Proponent should consider establishing and coordinating with smaller socio-economic working groups to meet Project specific monitoring throughout the life of the Project.
Term and condition no 131: Population Demographics – Monitoring demographic changes
Term or Condition: The Qikiqtaaluk Socio-Economic Monitoring Committee is encouraged to engage in the monitoring of demographic changes including the movement of people into and out of the North Baffin communities and the territory as a whole. This information may be used in conjunction with monitoring data obtained by the Proponent from recent hires and/or out-going employees in order to assess the potential effect the Project has on migration
Term and condition no 132: Population Demographics – Training programs
Term or condition: The Proponent is encouraged to partner with other agencies such as Hamlet organizations in the North Baffin region, the Municipal Training Organization, and the Government of Nunavut in order to adapt pre-existing, or to develop new programs which encourage Inuit to continue living in their home communities while seeking ongoing and progressive training and development. Programs may include driver training programs offered within Hamlets, providing upgraded equipment to communities for use in municipal works, providing incentives for small businesses to remain operating out of their community of origin, or supplementing existing recreational facilities and programming in North Baffin communities.
Term and condition no 133: Population Demographics – Monitoring demographic changes
Term or condition: The Proponent is encouraged to work with the Qikiqtaaluk Socio-Economic Monitoring Committee and in collaboration with the Government of Nunavut’s Department of Health and Social Services, the Nunavut Housing Corporation and other relevant stakeholders, design and implement a voluntary survey to be completed by its employees on an annual basis in order to identify changes of address, housing status (i.e. public/social, privately owned/rented, government, etc.), and migration intentions while respecting confidentiality of all persons involved. The survey should be designed in collaboration with the Government of Nunavut’s Department of Health and Social Services, the Nunavut Housing Corporation and other relevant stakeholders. Non-confidential results of the survey are to be reported to the Government of Nunavut and the NIRB.
Term and condition no 143 - Livelihood and Employment – Employee family contact
Term or condition: The Proponent is encouraged to consider the use of both existing and innovative technologies (e.g. community radio station call-in shows, cell phones, video-conferencing, Skype, etc.) as a way to ensure Project employees are able to keep in contact with family and friends and to ward off the potential for feelings of homesickness and distance to impact on employee retention and family stability.
Term and condition no 148 - Economic Development and Self-Reliance, and Contracting and Business Opportunities – Food security
Term or condition: The Proponent is encouraged to undertake collaborative monitoring in conjunction with the Qikiqtaaluk Socio-Economic Monitoring Committee’s monitoring program which addresses Project harvesting interactions and food security and which includes broad indicators of dietary habits.
Term and condition no 149 - Economic Development and Self-Reliance, and Contracting and Business Opportunities – Impacts of temporary closure
Term or condition: Prior to the commencement of operations, the Proponent is required to undertake an analysis of the risk of temporary mine closure, giving consideration to how communities in the North Baffin region may be affected by temporary and permanent closure of the mine, including economic, social and cultural effects.
Term and condition no 150 - Economic Development and Self-Reliance, and Contracting and Business Opportunities – Impacts to visitors of Sirmilik National Park
Term or condition: The Proponent will ensure the following:
a. The Proponent will maintain, where possible, a minimum flying altitude of 2,000 feet over the park, except for approaches to land, take-off or for safety reasons.
b. The Proponent will ensure that certification of noise compliance is current, where compliance is applicable.
c. The Proponent is encouraged to provide Parks Canada with regular flight and shipping schedules that can be used to brief Park visitors.
d. The Proponent is strongly encouraged to provide due consideration to wilderness experience during its operations in the open water season, especially during the month of August which is typically a time of high use by sea kayakers.
Term and condition no 152 – Economic Development and Self-Reliance, and Contracting and Business Opportunities – IIBA contract requirements
Term or condition: The Qikiqtani Inuit Association is encouraged to provide the Board and the Qikiqtaaluk Socio-Economic Monitoring Committee with information regarding the effectiveness of any provisions within the Inuit Impact and Benefit Agreement which may require that larger contracts be broken down into smaller size in order that they are reasonably managed by smaller businesses in the North Baffin region, while respecting any confidential or priveliged information.
Term and condition no 154 - Human Health and Well-being – Indirect impacts to health and well-being
Term or condition: The Proponent shall work with the Government of Nunavut and the Qikiqtaaluk Socio-Economic Monitoring Committee to monitor potential indirect effects of the Project, including indicators such as the prevalence of substance abuse, gambling issues, family violence, marital problems, rates of sexually transmitted infections and other communicable diseases, rates of teenage pregnancy, high school completion rates, and others as deemed appropriate.
Term and condition no 156 –Human Health and Well-Being – Support initiatives
Term or condition: The Proponent is encouraged to assist with the provision and/or support of recreation programs and opportunities within the potentially affected communities in order to mitigate potential impacts of employees’ absences from home and community life.
Term and condition no 157 – Human Health and Well-Being – Counseling and treatment programs.
Term or condition: The Proponent should consider providing counseling and access to treatment programs for substance and gambling addictions as well as which address domestic, parenting, and marital issues that affect employees and/or their families.
Term and condition no 158 - Community Infrastructure and Public Services – Impacts to health services
Term or condition: The Proponent is encouraged to work with the Government of Nunavut and other parties as deemed relevant in order to develop a Human Health Working Group which addresses and establishes monitoring functions relating to pressures upon existing services and costs to the health and social services provided by the Government of Nunavut as such may be impacted by Project-related in-migration of employees, to both the North Baffin region in general, and to the City of Iqaluit in particular.
Term and condition no 159 - Community Infrastructure and Public Services – Impacts to infrastructure
Term or condition: The Proponent is encouraged to work with the Government of Nunavut to develop an effects monitoring program that captures increased Project-related pressures to community infrastructure in the Local Study Area communities, and to airport infrastructure in all point-of-hire communities and in Iqaluit.
Term and condition no 160 - Community Infrastructure and Public Services – Distribution of benefits
Term or condition: The Government of Nunavut and the Qikiqtani Inuit Association are encouraged to cooperate to ensure in a broad sense, that Project benefits are distributed across impacted communities and across various demographic groups within these communities in a manner that best offsets any Project-related impacts to infrastructure or services.
Term and condition no 161 - Community Infrastructure and Public Services – Policing
Term or condition: The Government of Nunavut should be prepared for any potential increased need for policing, and ensure that the Royal Canadian Mounted Police is prepared to handle ongoing Project-related demographic changes and subsequent crime prevention that may be needed as a result of the development, operation, and closure of the Project.
Term and condition no 162 - Culture, Resources and Land Use – Public consultation
Term or condition: The Proponent should make all reasonable efforts to engage Elders and community members of the North Baffin communities in order to have community level input into its monitoring programs and mitigative measures, to ensure that these programs and measures have been informed by traditional activities, cultural resources, and land use as such may be implicated or impacted by ongoing Project activities.
Term and condition no 163 - Culture, Resources and Land Use – Public consultation
Term or condition: The Proponent shall continue to engage and consult with the communities of the North Baffin region in order to ensure that Nunavummiut are kept informed about the Project activities, and more importantly, in order that the Proponent’s management and monitoring plans continue to evolve in an informed manner.
Term and condition no 164 – Socio-Economic Impacts – Shipping notification
Term or condition: The Proponent is required to provide notification to communities regarding scheduled ship transits throughout the regional study area, real-time data regarding ships in transit and any changes to the proposed shipping schedule.
Term and condition no 165 - Socio-Economic Impacts – Emergency shelters
Term or condition: The Proponent is strongly encouraged to provide buildings along the rail line and Milne Inlet Tote Road for emergency shelter purposes, and shall make these available for all employees and any land users travelling through the Project area. In the event that these buildings cannot, for safety or other reasons be open to the public, the Proponent shall set up emergency shelters (e.g. seacans outfitted for survival purposes) every 1 kilometre along the rail line and Milne Inlet Tote Road. These shelters must be placed along Tote Road and rail routing prior to operation of either piece of infrastructure, and must be maintained for the duration of project activities, including the closure phase.
Term and condition no 166 – Socio-Economic Impacts – Public Consultation
Term or condition: The Proponent should ensure through its consultation efforts and public awareness campaigns that the public have access to shipping operations personnel for transits into and out of both Steensby Inlet port and Milne Inlet port either via telephone or internet contact, in order that any questions regarding ice conditions or ship movements that could assist ice users in preparing for travel may be answered by Project staff in a timely fashion.
Term and condition no 167 - Benefits, Royalty and Taxation – Partnership Agreements
Term or condition: The Proponent and the Government of Nunavut are strongly encouraged to, as soon as practical following the issuance of the Project Certificate, enter into discussions to negotiate a Development Partnership Agreement
Term and condition no 168 – Governance and Leadership – Monitoring program
Term or condition: The specific socioeconomic variables as set out in Section 8 of the Board’s Report, including data regarding population movement into and out of the North Baffin Communities and Nunavut as a whole, barriers to employment for women, project harvesting interactions and food security, and indirect Project effects such as substance abuse, gambling, rates of domestic violence, and education rates that are relevant to the Project, be included in the monitoring program adopted by the Qikiqtani Socio-Economic Monitoring Committee.
Term and condition no 169 - Governance and Leadership – Monitoring economic effects
Term or condition: The Proponent provide an annual monitoring summary to the NIRB on the monitoring data related to the regional and cumulative economic effects (positive and negative) associated with the Project and any proposed mitigation measures being considered necessary to mitigate the negative effects identified.
Baffinland commitments to issues raised by stakeholders (Final Hearing Report) (Appendix A)
Issue raised by Baffinland (July 23rd 2012): Baffinland is committed to participating in ongoing initiatives, including working with stakeholders, to address all issues related to the Mary River Project
Issue raised by Baffinland/ QIA (July 19th 2012): Baffinland is committed to establishing a working/ advisory group consisting of stakeholders of the Mary River Project to identify and address issues surrounding abandonment and restoration activities associated with the Mary River Project. The terms of reference, as well as information on all issues identified to be resolved by the working group, will be made available to the NIRB and interested persons for information and/or review purposes.
Issue raised by Baffinland (July 17th 2012): Baffinland is committed to participating in the Qikiqtani Socio-Economic Monitoring Committee (SEMC) working group to ensure that relevant effects of the Mary River Project are monitored.
Issue raised by Baffinland (July 16th 2012): Baffinland is committed to participating in formal, stakeholder working groups, such as terrestrial environment and marine environment working groups, as established within and/or outside of the scope of the IIBA, to gain input, insight, advice and oversight from stakeholders throughout the life of the project and to ensure that adaptive management principles are applied accordingly.
Issue raised by QIA (July 17th 2012): QIA is committed to explaining the contents of an IIBA for the Mary River Project to the GN once the IIBA has been finalized.
Issue raised by Baffinland (July 17th 2012): Baffinland is committed to contributing to overseeing the implementation of the IIBA including monitoring of the Project on a continuous basis to allow for ongoing Inuit input related to environmental and social impacts.
Issue raised by Baffinland (July 23rd 2012): Baffinland is committed to having Inuit Elders visit the Steensby site in 2012 to assist in identifying and ensuring that archaeological sites in the area not impacted by project activities.
Issue raised by NTI (July 17th 2012): Baffinland is committed to providing training to its employees regarding the protection of archeological resources within the project area.
Issue raised by NIRB (July 17th 2012): Baffinland is committed to implementing mitigation measures which offset the inconvenience and hardship created for Inuit hunters and travelers that have traditionally used the areas encompassed by the shipping route.
1. Analysis
• Government of Canada and Nunavut policies to develop the mining industry as a means of generating revenue and jobs: part of a policy objective that can support the realization of human rights, as
• Economic and social investment is an area where mining companies have the opportunity to enhance human rights. Furthermore, social investment plays a role in respecting indigenous peoples rights to participate in the benefits of the exploitation of natural resources on their lands. Commitments related to social investment serve as an incentive to obtain project approval from local communities. Increasingly, social investment is related to corporate social responsibility objectives. Given the corporate responsibility to “do no harm,” social investment also plays a critical role in ad- dressing a project’s negative impacts on human rights. Provision of targeted social investment plans is often required as a condition for permitting or financing, and become a company commitment for the project.
• Mines provide direct economic benefits in the form of employment, services, and contracting, in the course of carrying out their principal activities. These benefits enhance the right to just and favourable conditions of work for the employees and contractors, and provides opportunities to enhance the right to an adequate standard of living for those who receive direct economic benefits. Mines also contribute new revenue streams to governments as taxes and royalty payments; these economic contributions have only an indirect relationship to the fulfilment of human rights by the State, depending on how various levels of government use the additional resources.
• Increasingly, mining companies are also investing in social development and related programs in the zones where their operations are located. Social investment is normally intended to provide benefits to local populations; shortfalls in government capacity to provide basic services such as education or health care are often targeted, enhancing human rights in these areas.
• As such, social investment commitments may serve as an incentive from a mining company to obtain project acceptance from local communities, and plays a role in indigenous peoples rights to participate in the benefits of the exploitation of natural resources on their lands. Increasingly, social investment is a means for companies to fulfil corporate social responsibility objectives.
• Finally, social investment also plays a critical role in mitigating a project’s negative impacts. Provision of targeted social investment plans is often required before permitting and become a regulatory commitment.