GNWT and Canadian Zinc Sign Socio-Economic Agreement

News Releases

August 22, 2011 - The Government of the Northwest Territories (GNWT) and Canadian Zinc Inc. today signed a Socio Economic Agreement (SEA) for the proposed Prairie Creek Mine in the Dehcho Region.

The agreement formalizes commitments by Canadian Zinc with respect to employment, training, business opportunities and other related benefits for Northwest Territories (NWT) residents. It also details measures to monitor and adapt to possible socio-economic impacts related to the proposed project.

“The signing of this Agreement reflects the commitment of both parties to ensure that the development of northern resources occurs in a manner that is sensitive to social and cultural considerations and is economically sustainable,” said Minister of Industry, Tourism and Investment, Bob McLeod. “The signing of this Socio-Economic Agreement is a significant step in moving the process forward towards bringing the Prairie Creek Mine into operation, and that will translate into economic opportunities for Dehcho residents.”

The GNWT has long supported the advancement of non-renewable resource development that respects the principles of conservation and is carried out in a manner that ensures benefits from northern development accrue to both the residents and economy of the NWT.

“Canadian Zinc is very pleased to have signed this landmark agreement with the GNWT. The Prairie Creek silver/zinc/lead mine has the potential to provide significant direct and indirect employment benefits and business opportunities to the NWT and in particular to the Dehcho Region. We are committed to developing and operating the Project in a manner that contributes to the social, economic and cultural well-being of the Northwest Territories and, in particular, the residents and communities in the region”, stated John Kearney, Chairman and CEO of Canadian Zinc Corporation and the President of the Northwest Territories and Nunavut Chamber of Mines.

Highlights of the SEA include:

• 18 ongoing training positions;
• The establishment of a Socio-Economic Advisory Committee with members from the GNWT, Canadian Zinc and local Aboriginal governments;
• Confirmation of Canadian Zinc's employment and procurement commitments for the life of the project;
• For project employees living in any of the NWT’s communities, the SEA also includes a commitment to cover the costs of travel to and from employee pick-up points.

“This is an excellent opportunity for Northerners to benefit from meaningful jobs and training, particularly in the Dehcho,” said Minister of Education, Culture and Employment, Jackson Lafferty. “We have worked hard to ensure any business opening its doors in the NWT makes provision for creating and developing opportunities for northerners. I commend Canadian Zinc for their commitment to northerners and look forward to many job opportunities becoming available as a result of this project.”

“There is vast potential in the Nahendeh for a sustainable future” said Nahendeh MLA Kevin Menicoche,” This agreement is an important signal that the people of the Nahendeh are taking control of their future and ensuring that economic benefits will go directly to the community level”
The signed SEA will be posted online at: http://www.iti.gov.nt.ca/publications/.

For more information, please contact:

Alayna Ward
Manager, Public Affairs/Communications
Industry, Tourism and Investment
Government of the Northwest Territories
Tel: (867) 920-8696

Jacqueline McKinnon
Manager, Public Affairs
Education, Culture and Employment
Government of the Northwest Territories
Tel: (867) 920-6222

Steve Dawson
Vice President, Corporate Development
Canadian Zinc Corporation
Tel: (416) 203-1418

 

Fact File:


Prairie Creek Mine Socio-Economic Agreement (SEA)

The Prairie Creek Mine SEA was negotiated to capture the commitments Canadian Zinc Corporation (CZN) made during the environmental assessment of its proposed mine, to clarify their interpretation, and to provide certainty with regard to those commitments.
 
The SEA addresses:


  • employment and training, as well as business opportunities;

  • cultural well-being and traditional economies;

  • measures to protect health; and

  • social wellness and community sustainability.

    •  


The SEA will:


  • confirm the priority of the members of the Aboriginal organizations that are nearest to the mine and of the NWT-based businesses of those organizations;

  • ensure that CZN covers the cost of transportation to the mine's pick-up points from every community in the NWT;

  • ensure follow-through on the commitments that CZN made during its environmental assessment and provide for ongoing collaboration between CZN and the GNWT; and

  • provide for public reporting and for local participation and recommendations.

    •  

The SEA recognizes the importance of hiring, training, and advancement to members of the Aboriginal organizations nearest the mine, to Aboriginal residents of the NWT, and to NWT residents.

The SEA also recognizes the importance of procurement opportunities for Aboriginal-owned businesses nearest the mine and for all NWT businesses.



GNWT SOCIO-ECONOMIC AGREEMENTS

Q:        What is a Socio-Economic Agreement?

A:        When an environmental assessment takes place for a major resource development, the GNWT asks for follow-up programs to be put in place in the form of Socio-Economic Agreements (SEA). The Department of Industry, Tourism and Investment (ITI) is responsible for negotiating these agreements on behalf of the GNWT.

The Department also oversees the implementation of these Agreements and coordinates GNWT efforts under each Agreement, while monitoring how well each company carries out its respective responsibilities.

During the environmental assessment, the developer describes how its project may affect the social and cultural environment.  It is common for a company to describe the job and business opportunities its project will bring, and also to describe the steps it will take to help make this happen.  These are the company’s commitments.

A Socio-Economic Agreement captures those commitments.  It also outlines the ways in which the developer and government will work together to maximize project opportunities for NWT residents.

Q:        What is the difference between an IBA and a SEA?  

A:        An IBA is a private contract between a developer and an Aboriginal organization. IBAs are not tied directly to the environmental assessment process.  The topics covered by an IBA reflect beneficiaries’ interests and priorities. A SEA is a broader, public agreement that reflects the interests of the local community as well as NWT residents as a whole.

Q:        What SEAs are currently in place?

A:        The GNWT has entered into SEAs with BHP Billiton, Diavik Diamond Mines Inc.; De Beers Canada Inc.; the producers and operators of the Mackenzie Gas Project, and now Canadian Zinc Corporation (CZN).

Q:        What communities benefit from SEAs?

A:        SEAs recognize the priority of the groups closest to a project and also the importance of extending project opportunities as widely throughout the NWT as possible.  The communities closest to the proposed Prairie Creek Mine are Nahanni Butte and Fort Simpson, Fort Liard, Trout Lake and Jean Marie River, and the other communities in the Dehcho Region.

Q:        Does the GNWT benefit from the SEAs?

A:        No, SEAs do not directly benefit the GNWT. The GNWT works on behalf of the people of the NWT to oversee the implementation of these Agreements and coordinates government efforts under each Agreement. The GNWT also monitors how well each company carries out its respective responsibilities.