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Gold/Mining/Energy : Inco-Voisey Bay Nickel [ T.N.V] -- Ignore unavailable to you. Want to Upgrade?


To: Terry J. Crebs who wrote (97)11/8/1997 11:13:00 AM
From: Winer  Respond to of 1615
 
FYI (For those who do not know, bear in mind the Inuit and Innu are two seperate Native groups):

Date: Fri, 7 Nov 1997
Labrador Regional News 6 Nov/97 Newsclips

CBC Radio Regional News - Thursday, November 6, 1997 AM NEWS


Premier Tobin says an impact and benefits agreement for the Voisey's Bay project is the next stage in the settlement of Inuit land claims.

Yesterday the province unveiled proposals which could provide the basis for a land claims deal. They include a requirement for impact benefit agreements or I-B-A's for major projects in Labrador. Tobin says that when the LIA gets done briefing its members on the settlement proposals, it should start talking to INCO about a Voisey's Bay I-B-A. He says good progress on that could translate into progress on a final agreement. Tobin expects Inuit land claims to be settled early next year if not by the end of this year.
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Yesterday's announcement on land claims is getting good reviews in the Happy Valley Goose Bay area. The province, Ottawa and the Labrador Inuit have reached an agreement that could lead to a land claim settlement.

When Premier Tobin unveiled the details of the deal yesterday in St. John's, some Labrador business people and local government officials were in the audience.

Fred Armstrong has more.

ARMSTRONG REPORT:

Harry Baikie is the mayor of Happy Valley Goose Bay.

He's delighted to see any Labrador land claim proposal come so far that Inuit, Ottawa, and the province, are all in agreement.

BAIKIE CLIP:

"we've lobbied over the years for a settlement and this is a big step forward."

John Fleet of the Labrador North Chamber of commerce says the announcement is good economic news, for the Inuit themselves and all of Labrador.

FLEET CLIP:

"the opportunities this represents when you think of the money that will pour in to help- them become self sufficient to run their own industries, it's good for them, it's good for all of Labrador it's a positive step."

But Harry Baikie says even before any economic benefits arrives, the mood of labrador is being changed for the better,

BAIKIE CLIP:

"I think the optimism is good, people are going to be optimistic about this and we look forward to them selling this to their membership and moving forward."

Premier Brian Tobin is also optimistic. He's predicting an agreement in principle on a land claim settlement, hopefully by the new year.

Fred Armstroing CBC News St. John's.
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Land claim unveiled 11/6/97 (By RYAN CLEARY, The Evening Telegram)

Premier Brian Tobin speaks to the media after announcing a land claim agreement in principle with the Inuit of Labrador. Inuit will take control of a five per cent chunk of Labrador and receive $255 million from Ottawa under the terms of a framework deal that could lead to a land claims settlement, Premier Brian Tobin revealed Wednesday.

The deal also includes a royalty sharing arrangement with the Newfoundland government, guarantees of fishing and hunting rights and sets in stone self-government guidelines.

"In all, I feel we've reached a fair deal, one which I believe is as good, in fact I believe it's better, than any other land claim settlement in place in Canada today," Premier Brian Tobin told reporters in St. John's.

It's hoped the so-called negotiator's text, which the Inuit officially ratified Tuesday, will lead to a land claims agreement-in-principle before year's end.

Under the deal, Inuit will be given direct ownership of 6,100 square miles of Labrador, about five per cent of the 117,000-square mile total.

Boundaries for the Inuit territory, which is to be known as Labrador Inuit Land, have yet to be finalized but they're expected to encompass areas around existing aboriginal settlements.

Inuit will also manage, along with the Newfoundland government, a further 21,900 square miles to be known as the Labrador Settlement Area.

The land will remain under control of the Crown but preferential hunting and fishing rights will be given to the Inuit. Further, 3,000 square miles within the settlement area will be set aside for the creation of Torngat Mountains National Park.

"Our board of directors has just experienced one of the most difficult yet important decision-making processes in the 25-year history of our organization," said William Barbour, president of the Labrador Inuit Association.

Under the royalty arrangement, Inuit will receive three per cent of the province's mineral and mining tax on the Voisey's Bay nickel project.

Exactly how much that will mean to the Inuit won't be known until the province tables new mining tax legislation, which Tobin said may not happen for months.

The Inuit will be paid 25 per cent of provincial royalties from future developments on land they control.

As for mining projects on the 21,900-square mile settlement area, the Inuit will be entitled to half of the first $2 million in royalties taken in by the provincial government, plus five per cent of additional royalties.

However, there will be a cap on the amount in provincial royalties paid to the Inuit. The per capita annual income of Labrador Inuit stands at $7,900. Once that figure hits the Canadian average of $17,000 a year, provincial royalty flow will be cut off.

The Inuit will continue to receive payments from so-called impact benefits agreements to be hammered out with companies such as Inco, owners of the Voisey's Bay find.

Those agreements, which will deal with issues such as employment and revenue-sharing, will be mandatory within Inuit-controlled lands but necessary in the settlement area only when project costs pass $40 million.

Ottawa's contribution to the deal is $255 million =97 $140 million in cash, the rest through social and economic development agreements. Fishing access is also guaranteed.

A marine area of 17,000 square miles extending out to a 12-mile limit will be set aside for commercial opportunities. The Inuit will be given preference for all new commercial fishing licences based on the principles of adjacency and historical attachment.

Ottawa will keep management authority over the marine territory. In terms of priorities, the Inuit will place second to conservation. Non-Inuit with existing licences won't lose their licences or access to the resource.

"We now have, and this is vital, a clear and certain set of rules which govern future economic development in northern Labrador," Tobin said. The final component of the deal is self-government. Inuit will be guaranteed political control over the communities of Nain, Hopedale, Makkovik, Postville and Rigolet.

Details of the land claims deal were welcomed in most quarters, from the province's largest fishermen's union to boards of trade.

"It sends out a terrifically positive message," said John Fleet, president of the Labrador North Chamber of Commerce.

"This is a giant step forward in our estimation. It restores some investor confidence," he said.

Wally Anderson, Labrador Liberal MHA and an Inuit himself, said he was confident a sound land claims deal will be reached.

"The people of my district believe that we have a chance to make a better living for ourselves and our children," he said.

"Today will go down in history as the day when we became a part of the beautiful province of Newfoundland and Labrador."
------------------------------

Innu Nation buoyed by deal, but cautious 11/6/97
By GARY HEBBARD
The Evening Telegram


The Innu Nation has agreed to discussions that could fast-track their land claims talks in Labrador.

The announcement was made jointly Wednesday by Premier Brian Tobin and Innu Nation president Katie Rich in a scrum with reporters outside the premier's Confederation Building office.

Hours earlier, the Labrador Inuit Association announced acceptance of a framework deal that could lead to a settlement of their land claims.

"I don't think we can expect to turn the world upside down," said Tobin of the Innu talks.

"I think what's important is both principals and our respective negotiating teams indicating our desire to accelerate in a way that's constructive to the negotiations. I think that's an important step forward."

Rich agreed, but was quick to add that the Innu will not be stampeded just because the other major aboriginal group in the province appears to be forging ahead.

"One of my concerns was that the negotiations will be done to satisfy the Innu people and I think that the premier understands the position of the Innu Nation," she said.

"The negotiations and consultations for the Innu will be done (with the understanding) that the future of our children and our grandchildren depends on what we negotiate today."

Rich said she has yet to see the LIA agreement and wants to study it carefully before she makes any comment on whether it could serve as a model the Innu could work with or if there will be concerns about overlapping claims.

"I think to speed up the negotiations is a good idea but we have to take our time in what we negotiate at the table," she said.

Tobin said his government accepts that LIA and Innu claims are two separate matters and understands that the Innu need time to analyse the LIA settlement.

Government also needs some time, he said, but he hopes to reach agreement to begin accelerated talks in 1998.

"We will be negotiating for our people and the only thing we have to keep in mind is that the needs of our people are more important than the needs of the mining companies," said Rich, referring to the Voisey's Bay nickel development.

But, she added, her gut feeling is that there is a positive atmosphere for discussions.

"It's quite obvious that when I received the phone call yesterday from the premier wanting to meet with me, it was a sign that he wants to move things ahead," she said.

Tobin agreed. But, he said, it needs careful preparation by all concerned and the process can't be rushed.

"I would think that in the new year, if we're all agreed, we could move to a faster track on this negotiation."

Could that mean a settlement to both Innu and LIA land claims by 1999?

"We'll see," said Tobin.
------------------------

Editorial. Inuit framework deal a start 11/6/97 (The Evening Telegram)

The framework deal with the Inuit is a sure sign that there is an end in sight to land claims negotiations with native people in Labrador. It is an historic event for the province and it is good news for the future of mineral development in Labrador

It also sends a positive message to the other major native group in Labrador, the Innu. Innu Nation president Katie Rich has already indicated they are receptive to fast-tracking land claims negotiations with the federal and provincial governments.

Now that the more populous Inuit have come to terms with the two levels of government, can the Innu be far behind? Perhaps not, but reaching an agreement with the Innu could be the more difficult of the two settlements.

While the details of the Inuit deal have yet to be finalized, the principles for agreement are in place. Under that framework the Inuit have various rights to a large part of Labrador. The first area is known as the "Inuit lands," 6,100 square miles of land over which they have direct control and exclusive harvesting rights.

The second, larger chunk of land is called the "settlement area" and the Inuit share control of it with the provincial government. Here, the Inuit will participate in the management of wildlife, fish, plants and environmental assessment, and will receive some harvesting rights. This second area also encompasses the proposed Torngat National Park, which has yet to be approved by the province.

Where developments occur on either portion of land, the Inuit will see both direct and indirect royalties start to flow to them. From the land they directly control, they receive three per cent of the province's resource royalties.

Since the new mining tax act has not been unveiled yet, it's not clear how much that percentage might actually amount to. The mineral tax legislation that will determine these royalties will probably remain under wraps until an agreement is reached with the Innu, despite promises that the legislation would finally be introduced during the fall session of the House of Assembly.

From the settlement land, the Inuit will also receive provincial royalties, but these will be capped once the per capita income of the Inuit reaches the level of the Canadian average. This is similar to equalization for have-not provinces: once the status of "have" is reached, the equalization is reduced.

The Inuit receive $255 million in cash and dedicated funds from the federal government, and presumably this will be used in part to provide programs and services usually provided by governments. While they have been guaranteed political control over the towns of Nain, Hopedale, Makkovik, Postville and Rigolet, it's not yet clear whether this is strictly municipal government or some sort of new regional government exercised by the Inuit.

While much remains unclear about the framework agreement, it is nevertheless a step in the right direction. Land claims have dragged on interminably in this province for more than 20 years, and it has taken the prospect of major mining developments to get this far this quickly. Development can't be all bad.



To: Terry J. Crebs who wrote (97)11/10/1997 1:06:00 PM
From: Cumbrian  Read Replies (1) | Respond to of 1615
 
INCO Indonesia is as good as shut down, cut backs to production due to the drought were noted in the 3rd quarter report. The short term future for nickle does not look good I would not be surprised to see a production shut down at the Ontario and Manitoba divisions. The delay of one year in the Voisey Bay development has given some other startups (some 7 of consequence) new life, indeed it appears that 3 of the seven may not have happened at all if the east coast time table had not been knocked back a year. I have seen some estimates of voisey bay putting INCO into the $9 per share profit area (this is of course in a perfect world) at even close to this level it looks like a good long term buy?
Geoff.