Question Period Note: Baffinland Iron Mines’ Mary River Phase 2 Project

About

Reference number:
NA-2022-QP-0010
Date received:
Jun 23, 2022
Organization:
Crown-Indigenous Relations and Northern Affairs Canada
Name of Minister:
Vandal, Dan (Hon.)
Title of Minister:
Minister of Northern Affairs

Suggested Response:

• Following an extensive Phase 2 proposal review, wherein Nunavummiut had significant opportunity to participate, the Review Board has recommended the project not proceed at this time.
• Our Government supports strong, sustainable northern resource development that creates opportunity and respects the environment. We also trust in northern co-management frameworks; as has been evidenced in this case, the process allows for a broad range of interests to be considered.
• My colleagues and I will now review the Board’s recommendations and issue a decision based on due diligence and an assessment of whether the duty to consult has been met.

Background:

N/A

Additional Information:

If pressed on the consultation/review process
• The Government of Canada relies upon the Nunavut Impact Review Board’s assessment process to assist in discharging the Crown’s duty to consult owed to potentially affected Indigenous groups.
• The Nunavut Impact Review Board’s process is robust and provides the opportunity for affected Indigenous Peoples to express their views and any concerns with respect to potential project-related impacts.
• The Government of Canada will consult with affected designated Inuit organizations on the Board’s recent recommendations before the Ministers make a decision.

If pressed on the Espoo Convention
• Canada appreciates that Baffinland has provided information to Greenland, and has received submissions from Greenland’s consultation process, which will be considered by Ministers in the decision phase.
• Canada will work to fully meet its multilateral obligations under the Espoo Convention.

If pressed on participant funding
• Since 2018, the Department, through the Northern Participant Funding Program, has approved financial support to 13 organizations involved in the Phase 2 review, with a total funding amount of $2,098,452.
• The funding provided was contingent upon multiple factors, including the Program’s recipient funding cap, program eligibility requirements, and distribution of the annual program budget across all major impact assessments in the three territories.
• This funding has helped ensure the meaningful participation of North Baffin Inuit and other interested parties in the Phase 2 review.

If pressed on direct benefits to Sanirajak
• We are aware that Baffinland has announced approximately $42.9 million in total value of contracts awarded to Inuit firms based in Sanirajak since 2018.
• While parts of the Inuit Impact Benefit Agreement have been made public, it is still a private contract between the Qikiqtani Inuit Association and Baffinland, and is also subject to the accepted rules of confidentiality.
• The Department has input into many aspects of the regulatory process related to Mary River. However, the Qikiqtani Inuit Association is responsible for ensuring compliance and enforcement of the Inuit Impact Benefit Agreement.
• We are aware of the follow-up information that Arctic Co-operatives issued to clarify the situation regarding the contracting, however federal government has no involvement in the tracking of these funds.

If pressed on meetings during the decision phase
• As specified in my mandate letter, I am accountable to Parliament for the performance of my responsibilities and additionally the Open and Accountable Government outlines the standards of conduct expected of Ministers.

• I must ensure that my Ministerial duties are conducted in a way that respects the integrity of the decision-making process, and is open, transparent, fair and in a manner that would bear the closest public scrutiny.

• During this decision phase, parties wanting to share their opinions on the Board’s recommendation should contact the President of the Canadian Northern Economic Development Agency.

If pressed on the production limits
• The Government of Canada has responded to Baffinland regarding their request for clarification from responsible Minsters on the production limits under the Mary River Project Certificate.

• The letter communicated that I do not have the authority under the Nunavut Agreement to direct the Nunavut Impact Review Board to modify terms and conditions and suggested that Baffinland send their request to the Board.

• I am aware that Baffinland has requested an amendment to two terms and conditions from the Nunavut Impact Review Board. It is now the Board’s responsibility to establish the process.

• For further information about the reconsideration process, I encourage you to contact the Nunavut Impact Review Board.

If pressed on the request for an emergency order
• Baffinland has requested a Ministerial Emergency Certification under the Nunavut Planning and Project Assessment Act.

• Baffinland recently asked the Nunavut Impact Review Board to amend their Project Certificate, to increase the amount of iron ore allowed to be transported and shipped.

• The co-management processes established through the Nunavut Agreement and developed with Inuit and territorial partners provide certainty for all.