The NWT Difference - Five lessons about Indigenous engagement that we can share

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January 19, 2018

The NWT is well-known for its mineral potential; less so, for nurturing world-leading Indigenous participation and engagement in its mining and natural resource industries.

It’s not a point to take lightly. In today’s investment environment, natural resource development requires the social license to operate - the need to gain and maintain the support of the people and stakeholders that live in in the area of impact and influence of any project. 

It requires processes and approaches that build, earn and maintain trust.  In Canada’s Northwest Territories, where the social, economic, and political fabric is deeply influenced by Indigenous cultures and traditions, this work is well underway.  In fact, in today’s political context, the NWT is one of the few jurisdictions in which the much-discussed reconciliation is already working.

(Photo courtesy of Diavik Diamond Mines Inc. features Urban Hide Tanning Initiative in Yellowknife).

Here are five ways the NWT is fostering the support of its Indigenous people in the natural resource industry.

  1. Commitment to settle land claims — The Government of the Northwest Territories has placed a priority on settling land claims in a way few other jurisdictions across Canada have.  In fact, a majority of the territory’s land claims have already been settled – and are already providing Indigenous entities the opportunity to be full and supportive partners of resource development projects. The territory’s governments understand and respect the fact that remaining land claims must be completed to truly move forward. They recognize the benefits which will come from this; greater certainty for investors, and - for Indigenous governments - the land and financial resources necessary to participate in responsible resource development.
  1. Resource revenue sharing — In a landmark agreement, the territorial government shares 25% of royalties from mineral development in the NWT with Indigenous governments who have settled their land claims.  This is one of the richest revenue-sharing agreements in Canada with over $6 million shared to date with signatories. Partner governments also form the territory’s Intergovernmental Council giving them a forum for discussing and sharing information about land and resource management on public and settlement lands. With the opportunity to inform decision making and the financial incentive to benefit from successful projects, Indigenous governments are anxious to welcome new projects.
  1. Maximizing benefits for Indigenous Northerners - Ensuring that all NWT residents have the opportunity to participate in and benefit from resource development in the North is a priority. The NWT government’s commitment to negotiating socio economic agreements with developers and support for the creation of impact benefit agreements has meant that northern and Indigenous businesses have received more than $13.5 billion in direct contracting with the NWT’s three diamond mines since 1996. NWT residents have benefited from more than 25,000 person years of employment in the same period.
  1. A robust, resident Indigenous business community — Thanks to the foresight and shrewd investments of Indigenous governments, dozens of northern and Indigenous-owned companies, development corporations and joint ventures have taken root and grown thanks to land-claim settlements and the opportunities  presented to them to by the NWT’s mining, oil and gas and construction sectors.  Beyond being an affordable, knowledgeable and robust resource of homegrown expertise, these businesses are major employers and contributors to the NWT’s smaller Indigenous communities – and represent to NWT residents the benefits responsible mineral development can bring.
  1. Representative Public Government — The NWT is a fully-realized, highly integrated society where Indigenous and non-Indigenous representatives make decisions for the territory together.  More than half of Members of the governing Legislative Assembly and the government’s Executive Council (Cabinet) — including the Premier — are Indigenous.  It is reflective of the degree to which Indigenous peoples participate in public government and decision-making for the whole territory.  As a representative of all NWT residents, the government is committed to ensuring that residents enjoy the advantages of living in a strong and prosperous territory benefiting from the development of our world-class resources.