The Department of ITI has released the 2022 Engagement on Resource Royalties What We Heard Report.
Public and targeted engagements were completed from February 3 - July 29, 2022, for input from NWT residents, industry, nongovernmental organizations (NGOs) and other stakeholders on the development of regulations governing resource royalties in the NWT.
The report provides excerpts and meeting notes capturing the responses to public engagement questions and topic areas. To shape the public discussion and development of the NWT’s resource royalty regime, the engagement focused on four core questions:
- Are NWT royalty regulations providing a fair share of the profit?
- Are NWT royalty regulations contributing to a stable and competitive investment environment in the NWT?
- Is the utility of NWT royalty regulations being maximized?
- Are there other ways to realize benefits for the NWT using royalties?
The report provides excerpts and meeting notes capturing the responses to public engagement questions and topic areas.
In addition to these questions, the engagement explored other areas of interest including:
- Transparency & Confidentiality
- Mine Project Definition (Ring Fencing)
- Current Profit Regime Royalty Rate Structure
- Royalty Calculation Point / Saleable Product Point
- Commencement of Production
- Allowable Costs over the Life of Mine
- Royalty Reporting Requirements and the
- Audit process
The full review of the royalty regime was prompted by the development of the NWT Mineral Resources Act (MRA). From the beginning of the MRA’s development, it was agreed that a fulsome review of the NWT’s royalty regime would be part of this process.
The MRA is the first-ever legislation governing mineral resources drafted in the NWT. Since Northern leaders of the Intergovernmental Council (IGC) are currently developing the Mining Regulations needed to bring the MRA into force, there was a recognition that it is the right time to update the royalty regime that will be used under the Act.
Related: Public Engagement for the Mineral Resources Act - Regulations Policy Intentions is open until January 31st, 2023
The next steps in for reviewing the royalty regime will be take the input and feedback received and develop policy options. These options will be tested with financial models to develop recommendations. Review by an independent third party will take place to check the methods used and conclusions before any new regulations governing royalties are drafted. Once drafted, there will be a more formal engagement process – including Aboriginal Consultation under the NWT’s Section 35 requirements.