Benefit agreements with N.W.T. mines need stronger language, enforcement mechanisms, report finds

Is the Northwest Territories maximizing its benefits from existing resource extraction?

One report says not quite.

A recent review looking at socio-economic agreements between the Government of the Northwest Territories and the three active diamond mines — Diavik, Ekati and Gahcho Kué — found "best efforts" are being made to advance goals of the agreements but the documents need updating to maximize benefits. 

Socio-economic agreements were introduced in the N.W.T. as a way to leverage economic opportunities for residents, communities and businesses from resource extraction but have a history of being criticized in the territory — from concerns that they're unenforceable to calls for bigger demands and criticism that targets in them go unmet.

The agreements analyzed in the review include one signed with Ekati in 1996), Diavik in 1999 and Gahcho Kue in 2013. 

The report passed along 12 recommendations including redesign the program, using stronger language, addressing the impacts of mine closures, increasing the involvement of impacted communities and targeting education and training. 

Former Finance minister, Michael Miltenberger, who is familiar with socio-economic agreements in the territory, looked over the report and said most of the recommendations make sense, even as the mines are nearing the end of their lifespans.

"After 30 years, we're still talking vaguely about using stronger language, basic things like including an implementation plan … after 30 years, it's good to come to that. It's a bit late in the game, but I guess it's never too late," Miltenberger said. 

Should ITI take the lead?

It is important to make sure these agreements encompass all benefits possible, said Karen Hamre, a volunteer with local social justice coalition Alternatives North. 

Concerns voiced by Hamre reflected in the report include ensuring compliance of the agreements, lack of enforcement mechanisms and how the department of Industry, Tourism and Investment (ITI) takes the lead on the agreements, which is addressed in recommendation nine — ensure greater collaboration between GNWT departments.

"ITI clearly has expertise related to mining, but in terms of benefits to the community they're about benefits retention, so it would seem more appropriate that Education, Cultural and Employment would be more the lead agency on this with ITI as a resource with mining expertise," Hamre said. 

After looking over the report, Hamre said "things need to be done to ensure that benefits are going to the community." 

Report not a full picture

While Miltenberger agrees the recommendations are good, he wishes statistics were shared in the report to get a better understanding.

"I think the recommendations are good, it's just that they don't give you anything to really sink your teeth into," he said, noting there should also be a lot to celebrate with the socio-economic agreements.

"There were hundreds of contracts worth hundreds of millions of dollars in the last 30 years with dollars that stayed in the North because of [impact benefit agreements] and socio-economic agreements."

Ekati, Diavik and Gahcho Kue post annual reports of how each mine is meeting its own respective agreement that shares how much it gives in community contributions and how many people from the Northwest Territories are employed.

Ekati spokesperson Lorena Charest said the company works hard at implementing strategies of the current agreement but noted success in meeting objectives can be "challenging for numerous reasons."

"It is critical that all parties work together to increase economic and employment opportunities for local and Indigenous communities," Charest wrote in an emailed statement.

What now?

The report was released the same time the N.W.T. government is reviewing its Mineral Resources Act — a document designed to set out a framework for mineral prospecting, exploration, development and production in the territory. 

Two of the recommendations in the report address the new act, suggesting regulations be included to mitigate  mining impacts, while socio-economic agreements focus on benefits retention. 

The report was tabled in the legislative assembly last Friday. 

Nobody from ITI responded to a request for comment.

Hamre, of Alternatives North, said however the government moves forward, one thing is clear. 

"To get better benefits, we need to do a better job."