2022_SEA_Program_Review.pdf

The Government of the Northwest Territories (GNWT) has a responsibility to ensure benefits from the extraction of natural resources are provided to residents of the NWT. In the GNWT’s Mandate for the 19th Legislative Assembly, the Department of Industry, Tourism, and Investment (ITI) is tasked with leading the adoption of a benefit retention approach to economic development; meaning that decisions regarding economic development are based on ensuring NWT residents and businesses benefit to the greatest extent possible.

Socio-Economic Agreements (SEAs) were introduced as a means for the GNWT and the mining industry to collaboratively leverage economic opportunities for residents, communities, and businesses from planned diamond mining while balancing local concerns about potential adverse effects that this activity might have on individuals, families, and communities.

Over time, SEAs have provided a means to measure and monitor these socio-economic impacts. They address a wide range of subjects including:

Employment and business opportunities; Training and education; Cultural well-being and traditional economy; Community, family, and individual well-being; The overall effect on governance; and Sustainable development.

SEAs are negotiated between the GNWT and individual mining companies (proponents). They capture the obligations and commitments of both parties; documenting their commitments to support capacity building and economic opportunities, complete required monitoring, and work to mitigate negative socio-economic effects.

SEAs cover all phases of a resource extraction project from pre-construction, through operation, to closure. Proponents and the GNWT are each responsible for reporting on the status of their commitments. 

On behalf of the GNWT, ITI coordinates and oversees the negotiation and ongoing implementation of these agreements. The Department of Education, Culture and Employment (ECE) and the Department of Health and Social Services (HSS) are also signatories to the SEAs and have roles in establishing, monitoring, and fulfilling GNWT commitments related to their mandates.

In the pursuit of adopting a benefit retention approach through SEAs the goals set out in the mandate commitment are to:

Maximize benefits from development while maintaining competitiveness; Increase the success in meeting SEA objectives under SEAs; and Increase opportunities for equity participation with local and Indigenous governments in economic development projects.

As an element of this work, ITI commissioned a review of its nearly-30 years of SEA implementation and performance in order to evaluate the GNWT’s overall
approach to Socio-Economic Agreements and the extent to which they have, or can continue to, meet their objectives.

The review was conducted by DPRA Canada (DPRA) in consultation and with guidance from: the Manager, Socio-Economics (ITI); a GNWT SEA Working Group comprised of representatives from the GNWT’s ITI, HSS, ECE, and Finance departments; and a Technical Advisory Panel (TAP) composed of representatives from Indigenous Governments and Indigenous Organizations.

The review centred on the NWT’s SEAs with three active diamond mines – Ekati, Diavik and Gahcho Kué; employing multiple methods of data collection and
analysis and focussing on four priority areas using these key questions:

Effectiveness: Have the SEAs achieved their intended outcomes? Relevance: Are the current SEA indicators the most relevant way to document performance against desired outcomes and areas for improvement? Administration: Are SEAs the most appropriate mechanism through which to garner socioeconomic benefits from large projects? Sustainability: Are benefits sustained after the life of the project? What are the net benefits over time?

The Agreements reviewed in the evaluation report include:
• Ekati Diamond Mine: Arctic Canadian Diamond Company, signed October 19961;
• Diavik Diamond Mines: Rio Tinto, signed January 1999, amended January 2015; and
• Gahcho Kué Diamond Mine: DeBeers, signed June 2013.

Overall, review findings highlighted that parties to the SEAs have made best efforts to advance the goals of their agreements as well as their spirit and intent. The review, however, also suggests that opportunities exist to update individual agreements and the SEA program as a whole in order to retain even more benefits for NWT communities and businesses.

Evidence-based recommendations are provided for consideration by the GNWT; most notably in the following areas:

Redesign the existing SEA Program to incorporate explicit goals, objectives, outcomes, a program logic model, and a performance measurement and evaluation framework. Improve communication, collaboration and relationship building among the parties, in particular between the GNWT, the mines, and Indigenous Governments and Indigenous Organizations, through more regular data reporting and a greater willingness to share information relevant to the SEA objectives. Create an adequately funded and supported Advisory Committee as a component of each SEA to ensure meaningful input from all parties, as well as ongoing support and guidance for monitoring and mitigation efforts. Rely on the Mineral Resources Act and related regulations to enhance compliance with commitments and improve enforcement. Create targets for SEA commitments that are specific, measurable, relevant, and time based (e.g. focused on a specific mine phase) so participants can work towards clear goals and gauge success at key points in the project lifecycle. Signatories should determine capacity required during the lifetime of the project (e.g., confirmed and committed training and education and training opportunities) and be aware of current and potential capacity available across the territory (e.g., employable residents within communities located close to mine sites). Review implementation of existing mine supports/ programs that were created to address identified challenges (e.g., progression plans, science, technology, engineering, and math (STEM) programming, internal/external recruiters). Continue creation of plans, strategies, and policies that focus on: improving health and well-being in communities; improving education, training, skills development; maintaining cultural identity; addressing local procurement opportunities; and targeting recruitment policies. Require that SEAs include a focus on postclosure (i.e., remediation) and development of transferable skills.