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Aboriginal Affairs

SCI has a broad pedigree in aboriginal activity, including

  • Impacts & Benefits Agreements
  • Benchmarking
  • Negotiation & Consulting

IBA’s

inukshukIBAs are Negotiated agreements between a company and an Aboriginal Group (or First Nations), community or any other stakeholder group in which consideration flows from each party. In Canada, the necessity to negotiate an IBA is becoming standard practice, particularly when the resource project being developed is located within recognized land claim areas or asserted traditional aboriginal territories.

IBAs do not have “standard” terms and conditions since IBAs tend to be highly customized/negotiated agreements i.e. details are heavily influenced by specific circumstances and preferences of each project and Aboriginal Group(s) involved. They do however have similarities in terms of topics covered (eg. employment, contracting, environmental, financial payment) but substantial differences in negotiated terms. The details of most IBAs remain confidential.

As IBAs are negotiated commercial agreements they should be mutually beneficial. That is the company should ensure that it receives project certainty through:

  • support for a project moving forward ;
  • unobstructed access to property including the quiet enjoyment of the property;
  • support for permits and other applications; and,
  • facilitation of financing, bankable feasibility, etc.

The aboriginal group should receive benefits through:

  • — terms relating to the environment; and
  • forms of economic/social benefit (employment and contracting opportunities, financial payment etc.).

An IBA should be a comprehensive document that covers all consideration to be provided on both sides. Parties should strive to make obligations clear, unambiguous, closed (i.e. not open ended). Agreements should be structured to minimize risk of confusion, misinterpretation or dispute (and maximize the efficiency of the IBA’s implementation). Fundamental to an IBA is that company’s operations not be negatively impacted by its terms.

Benchmarking

Strategic Concepts, Inc. maintains a comprehensive data base of contemporary and historical IBAs. We provide early advice on benchmarking many of the business, employment and financial terms and conditions as well as representations and warranties found in articles and schedules affecting IBAs across a spectrum of industries. Continued participation in the IBA process is provided through consultation, negotiations and the initial drafting of agreements including Exploration Agreements, Protocol Agreements and Final IBAs.

SCI maintains a database of IBA benchmarks from a range of projects across Canada. We can provide you with metrics and a broad understanding of project economics, economic impact analysis and scenario comparisons.

Negotiations

SCI can assist your project with negotations. We have broad experience in facilitating and managing aboriginal negotiations.