Resource Royalties

Resource Royalties Distribution and Community Development

Project Leader:  Thierry Rodon, Professor at Université Laval and Northern Sustainable Development Research Chair (Thierry.Rodon@pol.ulaval.ca)

Research Team:

Juliette Bastide, Masters Student, Laval University (graduation 2016)
Rémy Darith-Chhem, Masters Student, Laval University (graduation 2016)
Ève Marsan, Masters Student, Laval University
Laurence Lefebvre, Masters Student, Laval University (graduation 2016)

Isabel Lemus-Lauzon, research professional
Aude Therrien, research professional

Partners:
This project originates in the priorities identified during the first meeting of the Knowledge Network on Environmental Impact Assessment and the Social Impacts of Mining in the Canadian Eastern Arctic, a SSHRC partnership development grant led by Thierry Rodon.  Many Inuit and Cree communities and organizations are partners in this network:

  • Makivik Corporation
  • NANA Corporation
  • Kingfisher Lake First Nation
  • Kativik Regional Government
  • Nunavut Tunngavik Inc. (NTI)
  • Qikiqtani Inuit Association (QIA)
  • The Government of Nunavut
  • The Government of Nunatsiavut
  • The Grand Council of the Cree of Eeyou Istchee / Cree Regional Administration (GCC(EI)/CRA)
  • Cree Board of Health and Social Services of James Bay (CBHSSJB)

Fall 2013 to Fall 2016

Project Completed (Fall 2016). A paper will be submitted for publication in the Northern Review. Several reports, papers, publications, and posters have been produced as a part of this project. They are listed below under “publications.”

(click on image to zoom in)

Thierry - Research Report

Update: October 2016

As part of the ReSDA workshop held in Ottawa in October 26-28, 2016, Dr. Thierry Rodon, Isabel Lemus-Lauzon, and Jean-Marc Séguin provided an update of the research. You can view the powerpoint presentation or read the abstract provided that summarizes the status of the project.

Update: October 2015

As part of the ReSDA workshop held in Kuujjuaq on October 21-23, 2015, Dr. Thierry Rodon provided an update of the research. You can view the powerpoint presentation.

Update: July 2015

As there were few online surveys completed, researchers are instead conducting phone interviews. They are selecting case studies at the moment, one will be Red Dog Mine (Alaska), one will be Uashat mak Mani-Utenam (Quebec) and there will be one more in Northern Ontario. They are working closely with Makivik and Innu Takuaikan Ushat mak Mani Utenam.

 

Resource Royalties Distribution and Community Development (NWT research license details at http://data.nwtresearch.com/Scientific/15458

SummIqaluit Oct 2013 compressed for webary
The negotiation of Impact Benefit Agreements (IBAs) between resource development companies and Aboriginal communities often include provisions for the payments of royalties and/or profit shares. These  IBA provisions illustrate the challenges around finding the best way to distribute  resource royalties in communities. These payments are generally meant to be distributed back to communities. However, there are no uniform ways to distribute them. They may be distributed directly to individuals or used for community projects. In fact, not much is known about the modes of distribution used to share these payments and their impacts on local communities. What are the social and economic impacts of various modes of distribution? Are there modes that can better mitigate the impacts of a non-renewable development on Aboriginal communities? Are some modes of distribution better/worse at giving the capacity to communities to benefit from this wealth? We do not have answers to these questions.
This research project will attempt to bridge this knowledge gap by achieving the following three objectives:

  1. Making a list of various methods used by Aboriginal communities and organisations to distribute royalties and profit shares paid by resource companies;
  2. Identifying the characteristics of each modes of distributions, their qualities and flaws;
  3. Identifying the most sustainable practices and those that allow communities to benefit economically and socially from the royalties.

Our overall objectives is to make the data and analysis available to communities so that those who are expecting royalties and profit shares from resource companies will be able to make enlightened decisions by knowing what are the different modes of distribution available to them.

Research Purpose
This research project relates to one of the main ReSDA’s theme: Sustainable Communities. It actually stems from priorities identified by many Inuit and Cree communities during the first meeting of the Knowledge Network on Environmental Impact Assessment and the Social Impacts of Mining in the Canadian Eastern Arctic, a SSHRC partnership development grand, led by Thierry Rodon and supported by Makivik Corporation, Nunavut Tunngavik Inc. (NTI), Qikiqtani Inuit Association (QIA), the Grand Council of the Cree of Eeyou Istchee (GCC), the Cree Health Board, the Kativik Regional Government (KRG) and the Governments of Nunavut and Nunatsiavut. It will identify the most sustainable practices and those that allow communities to benefit economically and socially from the royalties and profit shares. This project also relates to ReSDA broader objective, which is to get a better understanding of how Northern communities can get a larger share of the benefits of resource development. By identifying what are the different modes of distribution of royalties, this project will provide the knowledge to many communities and organizations to increase their capacity to benefit from resource development.

Methodology
In its initial stage, the project will start with a literature survey that will identify everything that is known about the distribution of royalties and profit shares in aboriginal communities in Canada, but also abroad (i.e. Australia, New Caledonia, South-America, etc.). This literature survey will cover IBAs, the distribution of royalties and the impacts of this distribution in local communities. The survey will focus on the science literature, but also on southern and northern media who have reported news about this topic. A survey about the modes of distribution will then be prepared and sent to communities and resources companies. The survey will be sent by email, but a follow up will be made over the phone to insure a good participation and collaboration. Following the survey, two case studies will be chosen with participants and document further with interviews to illustrate the argumentation of the report. The student working on the project will travel to both locations for a period of three weeks where he or she will work with a local aboriginal researcher. They will work together to make interviews to document both case studies. The choice of case studies still has to be determined, but potential cases include: Raglan (Nunavik), Éléonore (Eeyou Istchee), Meadowbank (Nunavut) and Diavik (NWT). The choice of the case studies will be decided in close consultation with our aboriginal partners through the Mining Knowledge Network. Finally, an analysis will be produced and shared in a report, communications and journal article.

Timeline:  Fall 2013 to Spring 2015
The project will start with the literature review during the fall of 2013 and early winter 2014. During that period, the elaboration of the survey and the preparation of ethics approval at Université Laval and research license in the North (Yukon, NWT and Nunavut) will also be made. The survey will be sent in the winter 2014. Follow up phone calls will be made shortly after. Fieldwork in the locations chosen to make the two case studies will be made between March and September 2014. During the fall of 2014, the analysis will be produced, communications made in several conferences (see below) and a journal article written. The final report will be published in the winter or early spring 2015.

Publications

ReSDA related projects (ongoing research)

  • MinErAL: Knowledge Network on Mining Encounters and Indigenous Sustainable Livelihoods. SSHRC, 2016-2021. PI: Thierry Rodon
  • Knowledge network on environment impact assessment and the social impacts of mining in the Canadian Eastern Arctic and Subarctic (Eeyou Istchee, Nunavik and Nunavut) is funded by SSHRC (2013-16) with a partnership with governments (Nunavut and Kativik Regional Government) and aboriginal organisations in Nunavut (NTI, QIA), Nunavik (Makivik) and Eeyou Istchee (Grand Council of the Cree, Cree Health Board)
  • Mines and communities: understanding the impacts of mining development on indigenous northern communities. FRQ-NT, 2014-2018. PI: Thierry Rodon
  • Mining Economies, Mining Families: Extractive Industries and Human Development in the Eastern Subarctic. ArcticNet, 2015-2018. PI: Stephan Schott

ReSDA related projects (completed)

  •  Social impacts of mines in the Arctic, Ministère des Ressources Naturelles du Québec. 2010-2012.
  • Social impacts of Raglan in Salluit and Kangiqsujuaq, Ministère des Ressources Naturelles du Québec. 2012-2014.

Papers

  • Rodon T. Institutional Development and Resource Development: The Case of Canada’s Arctic Indigenous Peoples. ICASS IX conference, Umea, Sweden, June 2017.
  • Lemus-Lauzon I, Rodon T. Mining and harvesting, Resource Development and the Mixed economy in Nunavik. ICASS IX conference, Umea, Sweden, June 2017.
  • Rodon T. Institutional Capacity and Resource Development: The Case of Canada’s Indigenous Peoples. REXSAC Scientific Meeting, Copenhagen, March 14, 2017.
  • Rodon, T, Lemus-Lauzon L, Séguin J-M. Resource Royalties Distribution and Community Development : case studies from Nunavik, northern Ontario and Alaska. ReSDA workshop, Ottawa, October 2016.
  • Rodon, T. Social acceptability and consent: the role of environmental assessments and Impact and Benefit Agreements. 2015 Kuujjuaq Mining Workshop. Kuujjuaq, Quebec, April 28, 2015.
  • Rodon, T. The Social and Economical Impacts of Mines on Inuit Communities. Kuujjuaq Mining Symposium, Kuujjuaq, April 10, 2013.
  • Rodon, T. The paradoxes of development in Inuit Nunangat. Arctic Dialogue 2013: Arctic in a Global Perspective, Bodø, Norway, March 21, 2013.
  • Rodon, T Aboriginal Communities and Mining Development in Northern Canada: Issues and Research Gaps. Second Annual ReSDA Research workshop “Bridging Gaps in Knowledge”, Whitehorse, Nov. 21-23, 2012.
  • Rodon, T. Mieux comprendre les impacts sociaux des mines sur les communautés autochtones du Nunavik et d’Eeyou Istchee, un aperçu des enjeux juridiques, politiques et sociaux. Québec Mines, Québec, Nov. 18, 2012.
  • Rodon, T. Social Impact of Mining on Northern Aboriginal Communities. 2nd Annual Cree Nation Mining Conference “From Many Voices to a Common Vision”, Montréal, Oct. 21, 2012.
  • Rodon, T. Toward Sustainable Nunavik Communities: Challenges and Opportunities. The Far North: Economic Opportunities, Environmental Challenges and Scientific Exploration au Canada Forum, salon IFAT, Munich, Allemagne, May, 9, 2012.

Publications

  • Rodon, T. (In Press) Institutional Capacity and Resource Development: The Case of Canada’s Indigenous Peoples. Canadian Journal of Development Studies.
  • Rodon, T. and Lévesque, F., 2015. Understanding the Social and Economic Impacts of Mining Development in Inuit Communities: Experiences with Past and Present Mines in Inuit Nunangat. Northern Review, (41).
  • Rodon, T., F. Lévesque and J. Blais. 2013. “De Rankin Inlet à Raglan, le développement minier et les communautés inuit”, Études/Inuit/Studies. 37(2).
  • Schott, S. and T. Rodon. 2013. « Towards a Sustainable Future for Nunavik » Polar Record. May 22.

Research Report

  • Kingfisher Lake First Nation: Case Study report. Prepared by Bastide J. Northern Sustainable Research Chair, Unpublished report, 2016.
  • Red Dog Mine Case Study on Resource Development Revenue and Employment. Prepared by Lemus-Lauzon I, Séguin J-M, Rodon T. Northern Sustainable Research Chair, Unpublished report, 2016.
  • Resource distribution strategies from Canadian IBA signatories. Prepared by Bastide J, Darith Chhem R, Rodon T, Lemus-Lauzon I. Northern Sustainable Research Chair, Unpublished report, 2016.
  • Resource revenues distribution and their impacts on IBA signatory communities: Literature Review. Prepared by Marsan È. Northern Sustainable Research Chair, Unpublished report, 2016
  • Descriptive analysis of the economic benefits of the Raglan mine for the communities of Salluit and Kangiqsujuaq. Prepared by Lefebvre L, Rodon T. Northern Sustainable Research Chair, Unpublished report, Lefebvre L, Rodon T. 2015.
  • Gap Analysis: Mining Development in Canada. Prepared by Josianne Grenier, Julien Keller, Thierry Rodon et Francis Lévesque for (ReSDA) Resource and Sustainable Development in the Arctic. Spring 2013.

Posters

  • Affiche – Mining Workshop 2017
    Croce F, Rodon T, Schott S, Belayneh A. Mining Economies, Mining Families: Extractive industries and Human Development in the Eastern Subarctic. Kuujjuaq Mining Workshop, 2017.
  • Affiche ACFAS 2017
    Lemus-Lauzon I, Rodon T. Activités minières et activités traditionnelles : Peut-on concilier le développement minier et l’économie mixte au Nunavik? Congrès de l’ACFAS, mai 2017

Symposium

  •  The symposium Développement minier et communautés inuit et cries : Comment rendre le développement minier plus durable dans le Nord? was organised during the 81st congress of the French Association Knowledge (ACFAS) on May 8th of 2013. It brought together representatives from many Inuit and Cree for organizations who came together to discuss how to make the development of mining projects more sustainable in Northern communities and how to allow Inuit and Cree communities to better mitigate the impacts of such development. Guests were: Josianne Grenier, Julien Keller and Jonathan Blais (students, Université Laval), Sarah Carriere (QIA) Jean-Sébastien Boutet (Gouvernment of Nunatsiavut, Labrador), Andy Baribeau (consultant, Grand Conseil des Cris), Anna Deffner (student, CNRS / CEFE), Markus Herrmann (professor Université Laval), Pierre Philie (Kativik Regional Government), and Thierry Rodon (professor, Université Laval).

For more information contact:
Thierry Rodon
Université Laval
Northern Sustainable Development Research Chair
(418) 656-2131 ext. 5244
E-mail: Thierry.Rodon@pol.ulaval.ca