Note: NRCan`s map shows the location of Aboriginal communities and provides specific information on the types of agreements signed between municipalities and mining companies. Impact-benefit agreements (IBAs) are an increasingly common tool in resource development. However, the effectiveness of IBAs in achieving community and development objectives can vary considerably depending on the negotiation process, the components of the IBA and the implementation and management of the IBA. This document provides a comprehensive framework of best practices for the development and management of IBAs from the perspective of affected communities, based on a synthesis of recommendations from the academic, industrial, governmental and non-governmental literature. Best practices are presented in a three-step model consisting of 10 general best practice criteria, 44 sub-criteria and 89 indicators. The criteria are presented in the form of a checklist that can be used to guide the negotiation, implementation and management of IBAs and to carry out ex-post evaluations of the IBA. While best practices have been developed from the perspective of affected communities to achieve better IBA outcomes, these best practices will also be useful for academics and others who wish to evaluate IBAs, as well as resource developers interested in negotiating effective IBAs with their community partners. IBAs are dynamic agreements, and the nature of the benefits contained in these contracts has evolved. For example, prior to 2005, IBAs focused primarily on benefits in terms of jobs, training and procurement opportunities. Since 2005, IBAs have increasingly focused on economic benefits such as royalties and direct payments.12 Economies that focus on exporting natural resources rather than production (a neotypical economy) tend to have special characteristics. These include being vulnerable to the boom-bust dynamics of commodity prices, controlled by large corporations outside the region, and not developing a diversified economy.
However, governments and institutions can intervene to capture a greater proportion of resource pensions on the ground. The authors suggest that Canada`s resource economy has shifted from a staple food to a neo-basic economy, with provincial and federal governments having less influence over large international corporations and Indigenous groups having more influence over the direction of resource development. In fact, IBAs are a mechanism that allows local indigenous communities to capture a greater proportion of resource rents resulting from resource exploitation. IBAs are private agreements in which indigenous governments exchange access to resources for employment opportunities for their members, financial transfers, business opportunities, and environmental protection. As a result, Indigenous communities often rely on IBAs to take control of the industry in their own communities. The purpose of this research is to analyze a case study on employment during the construction and operation phase of the nickel mine and voisey`s Bay concentrator in Labrador to better understand employment in a neo-solar economy. Vale is a company that owns the nickel mine, the Nunatsiavut government is the Inuit government in Labrador and the United Steel Workers (USW) is the union that represents the mine workers. The authors hope to understand how employment governance has changed in a neo-stable environment and what this means for workers in Labrador`s resource north. An IBA determines the benefits and support that First Nations will receive in exchange for project support and use of the traditional territory of first nations or the country in which the potential project is located. Potential benefits range from securing contracts and business opportunities to protecting the environment and supporting cultural and other community initiatives.
There is no standard form of IBA. While there are common elements, each IBA is tailored to the needs of First Nations and the circumstances of the project. IBAs are quickly becoming common business practices among potential developers. From an industry perspective, IBAs can provide security and support for development projects7. From the perspective of many Indigenous communities, IBAs can support local economic development opportunities and play a greater role in environmental protection and resource development. In addition, Aboriginal communities approach the negotiation of IBAs on the assumption that they have inherent rights to their traditional territory and should therefore participate in the employment and financial benefits of development projects on these lands.8 It is important to note that the financial benefits that the proponent or owner provides to First Nations must be detailed, practical and actionable. As mentioned above, each IBA is unique to the needs and necessities of the parties and the impact of the project. An IBA should be tailored to the specific circumstances and needs of the First Nations community involved, which should be weighed against the ability of the project advocate to deliver benefits. Ultimately, negotiating parties should use an IBA as a useful means of confirming that the First Nations Group is sufficiently consulted and adequately housed during the negotiation process.
While the Crown is responsible for advice, it is the responsibility of the project proponents to negotiate IBAs in order to make sufficient and individual arrangements. These resource development projects have the potential to create new social and economic development opportunities for Indigenous communities. Ensuring the support of affected Indigenous communities to pursue planned developments and encourage their meaningful participation in such projects will be an important part of realizing these potential benefits. Regardless of the individualities of each agreement, here are some “best practices” regarding the topics that an IBA should include. However, the interests of people in these communities in social benefits are also hampered by the IBA: in recent decades, IBAs have become increasingly prevalent and are considered common business practices by many project advocates. Although the main objective of IBAs is to compensate indigenous communities for the negative impact of development, indigenous groups have negotiated a variety of benefits to facilitate their participation in the resource development sector. These benefits have evolved and include not only employment and development opportunities for local businesses, but also royalties and direct payments. In addition, IBAs are seen by governments as evidence that Aboriginal and treaty rights have been taken into account.
In the future, the popularity and use of IBAs in resource development activities may be affected by new laws requiring the disclosure of IBA payments. The agreements were added to the database during support. The database has two main components. First, the agreements are recorded in the IBA`s database of IBA tax instruments. This document groups the agreements by sector and describes the financial provisions of each agreement. Relevant information, e.B. a link to the agreement, if available, the type of project, the date of signature, the locations of the project and the signatory community, as well as the population of the community will be indicated. Once the IBA agreement is added to the database, each tax instrument receives an index number and is registered in the IBA Fiscal Instruments database by instrument. This database records the type of instrument, the signatories, the title of the IBA, the type of project, the name of the instrument and the rate of the instrument. In addition, observations and, if so, whether the instrument is adjusted for inflation are recorded. Finally, agreements known to the researchers were included in the database. These included agreements between resource advocates and communities, such as the Peace River Agreement.
The nature of the benefits that fall within the scope of IBAs may also have an impact on the negotiation process. Many Aboriginal communities view resource development as a means of meeting the ongoing needs of the community, such as . B deficits in infrastructure and social services.29 In addition, investment in social services such as housing, family counselling and child care can offset the potentially negative effects of resource development on the community.30 However, IBAs tend to place more emphasis on economic benefits. such as employment and business development opportunities, instead of relying solely on benefits. Some project proponents have been reluctant to include benefits in IBAs because they are often seen as government responsibilities.31 Differences in parties` expectations of the content of an IBA can lead to lengthy negotiations. These delays can be particularly difficult when there is no clear recourse to negotiations that result in a stalemate.32 When considering a project that encompasses the traditional territory of First Nations, the negotiation of an IBA may take into account the parameters of the project, the commitment and responsibilities of both parties, and how First Nations will share the benefits of the operation. outline. IBAs often evolve from an initial “Memorandum of Understanding” and are developed into a final, legally binding agreement through consultation and negotiation between the proponent, First Nations and their respective legal counsel.
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