Grays Bay Road & Port Project: Overview and Current Status A - - PowerPoint PPT Presentation
Grays Bay Road & Port Project: Overview and Current Status A Presentation at: Cordilleran Round-Up January 25th, 2017 Meeting Objectives To introduce the Project to interested parties Overview & background Introduction of
Overview and Current Status
A Presentation at: Cordilleran Round-Up
January 25th, 2017
– Overview & background – Introduction of the Project team – Approach to development and operation
process and likely next steps
Project Description and Overview
under the terms of an MOU signed July 2016
– KIA’s developer role is managed by its wholly-owned subsidiary, Nunavut Resources Corporation – The KIA and GN have jointly applied to the Federal Government for $365 million in funding for this project
from the GN
Project includes a 227 km all-
weather trunk road from a port at Grays Bay to the Jericho Mine site (yellow line)
Trunk road will connect to
Yellowknife and the Ekati and Diavik diamond mines via Tibbett-to-Contwoyto Lake Winter Road (turquoise line)
Current thinking is to ultimately
include an additional all-weather portion from Jericho to diamond mines at Lac de Gras (red line)
Discussions are ongoing with GNWT Part of broader working group
Mine developments will be
responsible for developing their own spur roads (Indigo line to MMG’s Izok Lake ore deposit)
KIA might be able to help facilitate
port in the central/western Arctic
and expansion of tank farm, laydown areas and/or warehouses for use by industrial and commercial parties including MMG
shoreline, sheltering islands, relatively early ice free season
Formal cooperation between GN, KIA and MMG more than 60 years
in the making
Independent efforts to develop ‘world class’ Izok Lake ore body
have converged at a point of mutual and collective benefit
KIA’s business model for third party financing of infrastructure
development a catalyst in the face of:
GN’s limited financial capacity
GN given comfort by KIA’s newfound ability to access federal government infrastructure funds
MMG’s project feasibility challenge due to infrastructure development costs
Government of Nunavut:
Jim Stevens, ADM Economic Development & Transportation
Kitikmeot Inuit Association / Nunavut Resources Corporation:
Charlie Evalik, Chair Nunavut Resources Corporation Scott Northey, Chief Operating Officer Nunavut Resources Corporation Patrick Duxbury, Northern & Regulatory Affairs Advisor
Tetratech EBA:
Andrew Mitchell
Nunami Stantec:
Erica Bonhomme
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when the Nunavut Land Claim Agreement (“Nunavut Agreement”) was given Royal Assent
NLCA in the Kitikmeot Region living in five communities – Cambridge Bay, Kugluktuk, Gjoa Haven, Kugaaruk and Taloyoak
Kitikmeot Inuit Association: Overview
To manage Kitikmeot Inuit lands and resources, to protect and promote the social, cultural, political, environmental and economic well-being of Kitikmeot Inuit
member board of directors:
the Kitikmeot communities
region-wide
Board Members and Officers on Executive Committee
Kitikmeot Inuit Association: Governance
Kitikmeot Beneficiaries
Five Directors elected from each Kitikmeot Community Four Directors elected from the Kitikmeot Region as Officers
KIA nine-member Board
KIA is directly responsible for
the management of surface rights associated with 106,360 km2 of Inuit Owned Lands (IOL) in the Kitikmeot region
During the NLCA negotiations,
many IOL parcels were selected on the basis of geologic potential
KIA has a keen economic
interest in the successful exploration and development
Kitikmeot Inuit Association: Land Management
since 2010:
NRC has spent past 7 years executing business model so Inuit can
participate economically in the development and operation of essential regional infrastructure
Includes roads, ports, broadband networks, regional airstrips,
power plants
Positioning Inuit Beneficiary organizations to apply for funding
from Federal Government infrastructure funds and capital markets
Kitikmeot Inuit Association: Capacity for Proponency
NRC’s role as infrastructure developer is managed by Scott
Northey:
Served on the Board of NRC since 2010 and COO since 2012 Worked on Bay Street for 21 years (1987 – 2008) Head of TD Securities Project Finance team (2004 – 2008) Legacy of structuring innovation with no failed mandates Deh Cho Bridge: $165mm Real Return Bond (2008) Confederation Bridge: $323mm Toll Revenue-backed bond (1997) UMH Hydro: $195mm bond for OPG hydro project (Closed in 2009) Executed Advisory assignments for Provincial PPP Agencies and invited to
join the initial board of PPPCanada
Kitikmeot Inuit Association: Capacity for Proponency
KIA’s Model for Inuit Economic Participation in Developing the Grays Bay Road & Port Project
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KIA’s model Inuit economic participation based on
concepts and principles of public private partnerships (P3’s) that are well understood by investors and lenders in the Canadian marketplace
KIA’s model has been endorsed by PPPCanada staff and P3
Financial market participants
Including TD Securities and former senior mining executives
KIA’s model and its eligibility to apply for federal funding
recognized and supported by the Government of Nunavut as part of the GBRP application process
Business Model & Financing Plan: Overview
KIA would “own” the port and the road KIA would assume role of contracting counter-party Third party usage fees / toll revenues over and above
amounts required for O&M and offsetting GN’s debt
Monies flowing to KIA would be deposited in recently
constituted Kitikmeot Trust:
Disbursements controlled by Board of Trustees Trust distributions to support fund social/ cultural programs Would provide significant public benefit to Inuit of the Kitikmeot region
Business Model & Financing Plan: Role of KIA
Primary Objectives: Third party use will work around usage by anchor tenants
Status determined by extent and length of usage contract
Access will be managed from port site and potentially from
Jericho mine site
Promote usage via attractive costs relative to fly-in costs Encourage new business development eg. Community re-
supply
Charges will be based on distance travelled and
volumes/weight carried
Approach to Tolling/Usage
Current Status and Next Steps
The Grays Bay Road & Port Project is advanced from a
design perspective:
Result of $35mm+ investment by MMG under Data
Sharing Agreement
Project is not as advanced from a permitting and
regulatory perspective
Efforts to advance permitting/regulatory process
underway
JV between Nunami Stantec and Tetratech EB in place to
support permitting efforts
The GN and KIA intend to initiate NIRB review process in
respect of the Grays Bay Road & Port Project in spring 2017
Expect permitting and review process to take 2 - 3 years A working group has been established
MOU between GN and KIA in respect of task allocation
and funding is in place: Signed on Nunavut Day 2016
MOU between GN and MMG has been executed to
provide access to all work done by MMG to date on the Port and Road
Strong support for the GBRP Project from Kitikmeot communities
will be a major factor in NIRB’s review, and for strengthening the case for Federal Government funding
KIA-led community engagement tour took place in late November,
early December in the Kitikmeot region
All communities visited Public meetings held Focused meetings with hamlet councils, HTOs, High Schools,
Regulators and GN departments
Community support to date has been extremely favourable
Eastern Kitikmeot communities (Gjoa Haven, Taloyoak
and Kugaaruk) less affected by “hot-button” environmental issues
Very focused on jobs and training opportunities
Western communities (Kugluktuk and Cambridge Bay)
more concerned by certain hot-button issues
Major focus on jobs and training opportunities Overwhelming attendance at Kugluktuk community meeting –
very supportive
Some concerns voiced about impact to wildlife
Met with Tlicho Chiefs of NWT
Impacts on caribou the major concern Universal agreement to work together Recognize economic opportunities
Meetings with other NWT Indigenous groups anticipated in the
near future
Expressions of community support for the GBRP Project continue
to be received
Kitikmeot Inuit Association 2017 Annual General Meeting
resolution:Unanimously endorsed
Nunavut Tunngavik Inc. annual general meeting resolution:
Unanimously endorsed
Letters of support/resolutions volunteered and received:
Hamlet of Gjoa Haven Kugaaruk Hunters & Trappers Organization Hamlet of Kugluktuk Kugluktuk Hunters & Trappers Organization
KIA and GN have previously received letters of support
for the GBRP Project
A re-statement of this support, from a larger group
industrial stakeholder active in the project area could be helpful during this period when Federal budget deliberations are occurring
Future community engagement efforts are in the works
Next community meetings will include greater detail on project
components
Late winter, early spring
Targeting completion of Project Description by March 2017
Submission to Nunavut Impact Review Board formally initiates
review process
Will not be submitted unless likelihood of project development
has increased
Threshold is defined by announcement for funding from Federal
Government
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