Government of Nunavut

1. Government of Nunavut Presentation to the Newmont Hope Bay Project Mineral Development Advisory Group October 26-28, 2010

2. Department of Finance Roles and Responsibilities

3. Four main taxes apply 1 • 12% corporate rate • No mining-specific taxes or credits Income Tax 2 • 2% of employment earnings • Normally deducted from paycheques Payroll Tax • 1.0 - 11.4¢ per litre by fuel type • Levied on imported fuel as well as fuel purchased in Nunavut • Fuel-Tax Rebate Program available 3 Fuel Tax 4 • 9.76 mills (0.976%) on assessed value of property Property Tax

4. Companies must sign a DPA with the GN before obtaining a rebate ! www.finance.gov.nu.ca GN offers fuel-tax rebate • Any Nunavut-registered company may be eligible annually for a rebate on taxes paid for fuel used in: • Licensed prospecting • Mine development • Mineral extraction • Mine reclamation • Fuel for which taxes were paid must have been either: • Purchased in Nunavut • Imported in accordance with Petroleum Products Tax Act

5. Companies must register with GN Finance for payroll tax ! Taxation Sector: 1-800-316-3324 Training tax credit in development • Any large company physically operating in Nunavut may be eligible for a refundable income-tax credit of up to $50,000 annually for: • Onsite training • Offsite training • Distance training • Training programs must be: • Pre-approved by GN Finance • Relevant to the employee’s current or future job duties

6. Finance has further responsibilities • If there is intention to lease Commissioner’s Land: • GN Community and Government Services consults with GN Finance on financial-security provisions • If there is intention to negotiate a DPA: • GN Economic Development and Transportation consults with GN Finance on DPA provisions • GN Finance participates in monitoring compliance to determine eligibility for fuel-tax rebate • If there is intention to make tobacco products available (e.g. at a company store): • GN Finance issues licenses and collects tobacco taxes • If there is intention to make liquor products available (e.g. at a licensed company cafeteria): • GN Finance issues import permits and conducts inspections

7. Department of Economic Development and Transportation Roles and Responsibilities

8. Development Partnership Agreements • An instrument that the GN can use to engage major project proponents in programs of mutual benefit – the GN can offer direction on plans of development or monitoring that can be beneficial to Nunavummiut during or after the life of a project. • Ensures that maximum benefits from economic development initiatives accrue to Nunavut residents, businesses, and communities. • Results-oriented with clearly defined outcomes and measurable benefits • Nunavut Mining Strategy: The Government of Nunavut encourages companies proposing mining developments in Nunavut to negotiate a Development Partnership Agreement (DPA).

9. A DPA focuses on 5 strategic areas: • Infrastructure Development • Education and Training • Local Employment • Business Development • Community Development • Through a DPA, the GN can work with industry to coordinate: • Infrastructure development through shared facilities or transfer of ownership • Training programs and community business development initiatives • Socio-economic monitoring and mitigation

10. Negotiating a DPA: • Between the project proponent and the GN, led by the Department of Economic Development and Transportation • Process can commence once a project has been referred to an Environmental Review. • Proponents can express formal interest after the project has been referred to a Part 5 or Part 6 review by NIRB - This initiates the process. • Negotiations can occur during the development of the Environmental Impact Statement (EIS). • ED&T recommends that proponents initiate negotiations as early as possible in order to discuss potential DPA provisions that can compliment their EIS. • A DPA can be signed once a Project Certificate is issued.

11. Negotiating a DPA is voluntary • Proponents must sign a DPA and submit annual reports to claim the Territorial Fuel Tax Rebate • A DPA provides proponents with a means of engaging the GN in planning infrastructure and reducing reclamation costs should the facilities be deemed an asset to the territory after mine operations. • A DPA is not intended to duplicate Inuit Impact and Benefit Agreements, but rather compliment them. • The GN currently has one DPA in place, with Agnico-Eagle

12. Socio-Economic Monitoring • Socio-Economic Monitoring Committees (SEMC) coordinate the required monitoring responsibilities and programs contained within any terms or conditions issued by NIRB. • Regional SEMCs were established in 2007 through collaboration with the GN and INAC and endorsed by NIRB to replace project certificate requirements for project-specific monitoring programs. • Advantages of a Regional approach: • Efficient way of bringing stakeholders to the table to discuss issues • Ensures consistency of socio-economic monitoring in the territory • Improves the monitoring of cumulative effects by major project activity • Added value of community involvement

13. ED&T has been the GN lead on the regional SEMCs • The ED&T Regional Directors of Community Operations have been acting Chairs of their respective regional committee. • SEMC members include the GN, INAC, Project Proponents, Inuit Organizations, and Communities

14. Doris North socio-economic monitoring: • Condition 28 of the Doris North Gold Mine Project Certificate states that a Hope Bay Belt SEMC shall be formed. • The SEMC is to include the same membership as the Kitikmeot regional SEMC and must engage with the affected communities. • The company has proposed to establish the Doris North Socio-Economic Monitoring Program in compliance with the NIRB project certificate. • The GN continues to support a single regional SEMC approach as the practical way to meet project certificate requirements in an efficient and consistent manner • However, we recognize that the existing Doris North Project specific socio-economic monitoring program will allow the proponent to fulfill the requirements of the project certificate with the support of the Kitikmeot Inuit Association. • The GN anticipates that the project-specific socio-economic program will eventually be incorporated into the regional SEMC. • The GN has been collecting socio-economic information for the regional SEMCs for over a year, and will be able to provide this information to the Doris North SEMP.

15. Nunavut Mine Training Roundtable • Established by ED&T, the Department of Education and Nunavut Arctic College, with participation from industry, Inuit Organizations, INAC, and Human Resources and Skills Development Canada (HRSDC) • Goal: Establish a Nunavut-wide organization to coordinate mine training • Identify needs, priorities • Secure funding for training programs • Review training project proposals and make recommendations to the GN for allocating the Training Fund

16. Objectives: • Provide Nunavummiut with training opportunities that lead to jobs in the mining industry • Coordinate training programs to reduce costs and maximize participation • Present a united voice for Nunavut and lobby for funding from other sources • Encourage and support the development of training infrastructure in Nunavut

17. Industry Participation: • Roundtable members determine when to invite an industry member to participate • Generally: • Prospecting/Early Exploration – Representation at the Roundtable is by the Chamber of Mines • Advanced Exploration and Development - Some companies will be invited to sit on the Roundtable while others will be kept informed about the Roundtable’s purpose and activities – Early involvement by providing info about training needs and employment opportunities. • Operation -These companies should be sitting members of the Mine Training Roundtable. • Reclamation - Companies are expected to continue participating as Roundtable members. • Agnico-Eagle, Baffinland, Newmont, and AREVA have all joined the table as industry members

18. Department of Environment (DOE) Roles and Responsibilities

19. Overview • Role of DOE in Environmental Assessment • DOE Interests • Legislative Expectations

20. Roles and Responsibilities • Protection • Promotion • Sustainable Use

21. Summary of DOE Interests

22. DOE Interests

23. Wildlife Wildlife Act Section 117 (1): No person shall conduct research on wildlife or collect wildlife specimens for research without a license authorizing it. Section 73(1): No person shall, unless authorized by a permit, engage in any activity, other than harvesting, that is likely to result in a significant disturbance to a substantial number of wildlife

24. Wildlife

25. DOE Interests

26. Environmental Protection • Environmental Protection Act • Section 5: No person shall discharge or permit the discharge of a contaminant into the environment land land land

27. Environmental Protection CCME Canada-Wide Standards (CWS) • Dioxins and Furans • Mercury Emissions • Particulate Matter and Ozone • Petroleum Hydrocarbons (PHC) in Soil • Environmental Protection Act • Section 5: No person shall discharge or permit the discharge of a contaminant into the environment land land land

28. DOE Interests

29. Legislation & Regulations • Spill Contingency Planning and Reporting Regulations • Contingency Planning and Spill Reporting in Nunavut: A Guide to the New Regulations • Guideline for Dust Suppression • Guideline for the General Management of Hazardous Waste in Nunavut • Guideline for Air Quality - Sulphur Dioxide & Suspended Particulates • Guideline for the Management of Waste Antifreeze • Guideline for the Management of Waste Batteries • Guideline for the Management of Waste Paint • Guideline for the Management of Waste Solvents • Disposal Guidelines for Fluorescent Lamp Tubes (Policy) land land land

30. DOE Interests

31. Monitoring Terrestrial Wildlife Monitoring Programs • Ensures that the proponent is accountable for predicted impacts • Provides concrete evidence of environmental outcomes • Allows for the transition from theory (predictions) to understanding • Results from these programs contribute to better environmental management L and

32. DOE Interests

33. Climate Change • Incorporation into Project Designs • Greenhouse Gas Emissions & Ozone- ..Depleting Substances • Land • land land land

34. A Summary of DOE Interests

35. Department of Culture Language Elders and Youth (CLEY) Roles and Responsibilities

36. CLEY Roles and Responsibilities • Nunavut Act (Nunavut Archaeological and Palaeontological Sites Regulations), • Historical Resources Act • Nunavut Land Claims Agreement (Article 33)

37. CLEY Roles and Responsibilities • Ensures that proponent has a professional archaeologist survey all areas of proposed ground disturbance well in advance of development plans and that archaeological resources are inventoried and impacts are assessed and mitigation plans proposed • Reviews proponent’s proposed mitigation and management plans and ensure they are appropriate • Reviews traditional knowledge and Inuit Qaujimajatuqangit components of the EIS through Tuutarviit and/or IQK

38. Department of Health and Social Services (H&SS) Roles and Responsibilities

39. H&SS: Roles and Responsibilities • Public Health Act and Regulations • Act Sec.14-18 • Camp Sanitation Regulations • Public Sewage System Regulations • Water System Regulations • Communicable Disease Regulation • Eating of Drinking Places Regulations

40. H&SS: Roles and Responsibilities • Emergency Medical Aid Act • Hospital Insurance and H&SS Administration Act • Child and Family Services Act

41. Department of Community and Government Services (CGS) Roles and Responsibilities

42. CGS: Roles and Responsibilities • Regulatory Responsibilities • Protective Services • Code compliance • Building, fire, mechanical, electrical, etc. • Fuel storage facilities • Commissioner’s Land Administration • Administering Commissioner’s Land in accord with the Commissioner’s Land Act and the Nunavut Land Claims Agreement • Land use permits, leases, quarries

43. CGS: Roles and Responsibilities • Regulatory Responsibilities (continued) • Community Land Use Planning • Approval of community plans and development • Community Development • By fostering self-reliance through initiatives like training • that develop the capacity of communities to operate • their own services such as water delivery, solid waste • sites, municipal administration.

44. CGS: Roles and Responsibilities • Community Infrastructure Delivery • Capital Planning and Project Management • Water Wastewater Systems • Territorial Government and Hamlet Buildings • Design and Construction of Building Infrastructure( Health Centres, Schools, Community Halls, Fire Halls, Maintenance Garages, Offices etc.) • Airport Buildings • Aggregate Resources • Municipal Solid Waste Facilities • Constructing Breakwaters, Roads, Bridges, Docks

45. CGS: Roles and Responsibilities • Advisory Roles • Community Development • Administrative and financial capacity • Municipal Services • Increased demands from development • Petroleum Products • Managing fuel resources in communities and airports • Technical Services • Advice for infrastructure projects • Capital Planning; provide Technical advice; Technical evaluations on infrastructure.

46. Department of Education Roles and Responsibilities

47. Education: Roles and Responsibilities Primary Relevant Roles and Authorities • Apprenticeship, Trade and Occupations Act and Regulations • Certification for tradespersons • Accreditation of programs and sites • Bi-lateral Agreements with the Government of Canada to fund training programs • Labour Market Agreement (LMA) • Labour Market Development Agreement (LMDA) (for Employment Insurance (EI) eligible clients only • Forum of Labour Market Ministers • discussion on labour market issues for provinces, territories and the federal government • Nunavut Adult Learning Strategy • The vision and plan for adult education in Nunavut

48. Education: Roles and Responsibilities Department of Education Services • Service delivery through regional offices in • Cambridge Bay (1.800.661.0845) • Rankin Inlet (1.800.953.8516) • Pangnirtung (1.800.567.1514) • Career Development officers in many communities • Services include: • Training programs • Career development • Labour market assistance • Income support • Apprenticeship support • Manager of Labour Market Programs (1.867.975.5648)

49. Contacts Department of Finance Anthony Speca, A/Director, Fiscal Policy PH: (867) 975-6813 Daniel Young, A/Manager, Taxation PH: (867) 975-6851 Department of Economic Development and Transportation Dianne Lapierre, Manager Environmental Assessment and Regulation PH: (867) 975-7803 Kitikmeot Regional Office PH867) 982-7442 John Hawkins, Director, Transportation PH: (867) 975-7826 Department of Environment: Dee Karadag, Territorial Environmental Assessment Coordinator/Scientist PH: (867) 975-7732 Allison Loder, Environmental Assessment Analyst PH: (867) 975- 7733 Department of Culture, Language, Elders and Youth Julie Ross, Chief Archaeologist PH: (867) 934-2040 Department of Health and Social Services Peter Workman, Environmental Health Consultant PH: (867) 975-5764 Department of Community and Government Services Shane Slifka, Regional Project Manager PH (867) 983-4141 Department of Education Brad Chambers, Director, Policy and Planning PH: (867) 975-5606 Brenda Jancke, Director, Career and Early Childhood Services PH: (867) 983-4030 Department of Executive and Intergovernmental Affairs Marie Duchaine, Avatiliriniq Coordinator PH: (867) 975-6026