Voisey`s Bay Development Agreement
The development agreement included the construction of a cottage in Long Harbour, on the island of Newfoundland, to process ore from Voisey`s Bay in the interior of the province. Under existing mining tax legislation, the developer could deduct the costs of the cabin after construction. The amendment to the development agreements also led the province to obtain substantial payments from the developer to compensate for delays in the construction of the cabin, which was not concluded until ten years after the contract came into force. These payments were not shared with the Inuit. The treaty is a constitutionally protected agreement with a modern land claim between Labrador Inuit (now represented by the Nunatsiavut government), the province and Canada. After decades of negotiations, the treaty came into force in December 2005. Approximately 500 people support mining in Voisey`s Bay, about 51% of whom are Aboriginal. Vale is currently conducting a detailed engineering study to support the development of an underground mine. Subject to Council approval, construction would begin around 2016 and be completed in 2019. We estimate that an additional 400 people will be employed in the mine and concentrator when the bottom mines begin. Impact and charitable agreements (IBA) are typical when a major project is proposed for development on traditional surfaces.
ACCORDS are formal and written agreements that help to address the predicted effects of industrial development on traditional lands and to ensure economic benefits to neighbouring Aboriginal communities affected by this development. IAAs vary widely in scope and complexity, depending on the scope and nature of the project and the issues identified by the parties involved in the negotiations. However, most agreements deal with issues such as: the Court of Justice also ordered that Inuit be entitled to an assessment of damages for improper inferences from Long Harbour, breach of trust obligation and breach of consultation obligation, and that Inuit be entitled to 5% of payments made by the developer pursuant to the development agreements.  Vale successfully negotiated ibAs with the Nunatsiavut Government and Innu Nation, which led to a mutually beneficial relationship that maximized benefits for the Innu and Inuit of Labrador and minimized negative outcomes. Although the details of the agreements are confidential, they provide specific business, employment and training opportunities for members of the Innu Nation government and Nunatsiavut, which are related to the mining and development hub component.