Supreme Court Rules in Favor of Nunatsiavut Government on Voisey’s Bay Royalties

The Supreme Court of Newfoundland and Labrador has decided in favor of the Nunatsiavut Government following a legal dispute with the Government of Newfoundland and Labrador over royalties from the Voisey’s Bay nickel project.

The Nunatsiavut Government filed a Statement of Claim with the Supreme Court in May 2016, arguing against the Government of Newfoundland and Labrador, that expenses incurred by Vale (the owner of the Voisey’s Bay mine) related to the Long Harbour processing plant on the island of Newfoundland, should not be taken into account in the calculation of revenue paid to the Nunatsiavut Government under the Labrador Inuit Land Claims Agreement.

The Nunatsiavut Government also argued that Inuit should be entitled to five (5) percent of payments Vale made to the Government of Newfoundland and Labrador in exchange for amendments to the Voisey’s Bay Development Agreement which permitted the company to export nickel concentrate outside of the province for processing in order to allow it to fully commission its Long Harbour facility.

As well, the Nunatsiavut Government argued that the Government of Newfoundland and Labrador failed to discharge its duty to consult and its fudiciary duty in relation to payments from Vale, under the terms of the Labrador Inuit Land Claims Agreement and in accordance with the common law principles developed by the Supreme Court of Canada in Haida Nation.

“We are pleased with this decision today, as it reaffirms what we have been saying for years that the Government of Newfoundland and Labrador willfully violated the Labrador Inuit Land Claims Agreement for failing to consult with the Nunatsiavut Government prior to granting amendments to the Voisey’s Bay Development Agreement,” says Finance, Human Resources and Information Technology Minister Tony Andersen. “Those amendments basically cheated Labrador Inuit out of millions of dollars of revenue, and strained relations between our two governments. With today’s decision, we are hopeful we can put this all behind us and work towards a renewed relationship with the Government of Newfoundland and Labrador.”

For more information you can check out the news release on Nunatsiavut.com.

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