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In the development of the Mineral Resources Act (MRA), there was a recognition that as new regulations to support the Act were being developed, the time was right for a full review of the royalty regime when it came to the Northwest Territories mineral resources sector.
Have Your Say
Send comments to the attention of “Mineral Resource Royalty Review” by email royalty_administration@gov.nt.ca by July 29, 2022, no later than 5:00 p.m.
Background
Royalties are paid by the owner of a mine to compensate a jurisdiction – in this case the NWT – for the natural resources that are being extracted. Prior to 2014 and Devolution, all the royalties for mineral production went to the federal government. Since the NWT was formally given the management and administration for its own lands and resources, the royalties are now shared between the Government of Canada, the Government of the Northwest Territories, and Indigenous governments and organizations in the NWT.
To shape the public discussion and development of the NWT’s resource royalty regime, the discussion paper and accompanying research paper strive to answer three questions:
Are NWT royalty regulations providing a fair share of the profit? What is a fair share? Should the overall revenue and benefit of resource development to the NWT be a consideration? This could include long term capital assets like infrastructure and training that will outlast the mining project itself.
Are NWT royalty regulations contributing to a stable and competitive investment environment in the NWT? Investors and proponents of major projects require clarity and certainty. Is the NWT regulatory system attractive to investors when compared to other Canadian and international jurisdictions?
Is the utility of NWT royalty regulations being maximized?
Are there other ways to realize benefits for the NWT using royalties? For example, could we leverage their value to increase employment, procurement or investments in infrastructure and environmental sustainability?
All elements of the royalty system (except for the resource revenue distribution formula) are open for discussion and a combination of concepts and elements may ultimately be employed to establish the NWT’s royalty system moving forward.
In addition to these questions, the review could also focus on other areas of interest including revisions to the tax structure, exploration incentives, and other best practices currently in use by other jurisdictions.
The next steps in the process will be take the input and feedback received and develop policy options. The implications in of these options will be tested with financial models to develop recommendations. These recommendations and the modelling will be reviewed by an independent third party will take place to check the methods used and conclusions before any new regulations governing royalties are drafted.
Once drafted, a more formal engagement process – including Aboriginal Consultation under the NWT’s Section 35 requirements will be initiated.
In the development of the Mineral Resources Act (MRA), there was a recognition that as new regulations to support the Act were being developed, the time was right for a full review of the royalty regime when it came to the Northwest Territories mineral resources sector.
Have Your Say
Send comments to the attention of “Mineral Resource Royalty Review” by email royalty_administration@gov.nt.ca by July 29, 2022, no later than 5:00 p.m.
Background
Royalties are paid by the owner of a mine to compensate a jurisdiction – in this case the NWT – for the natural resources that are being extracted. Prior to 2014 and Devolution, all the royalties for mineral production went to the federal government. Since the NWT was formally given the management and administration for its own lands and resources, the royalties are now shared between the Government of Canada, the Government of the Northwest Territories, and Indigenous governments and organizations in the NWT.
To shape the public discussion and development of the NWT’s resource royalty regime, the discussion paper and accompanying research paper strive to answer three questions:
Are NWT royalty regulations providing a fair share of the profit? What is a fair share? Should the overall revenue and benefit of resource development to the NWT be a consideration? This could include long term capital assets like infrastructure and training that will outlast the mining project itself.
Are NWT royalty regulations contributing to a stable and competitive investment environment in the NWT? Investors and proponents of major projects require clarity and certainty. Is the NWT regulatory system attractive to investors when compared to other Canadian and international jurisdictions?
Is the utility of NWT royalty regulations being maximized?
Are there other ways to realize benefits for the NWT using royalties? For example, could we leverage their value to increase employment, procurement or investments in infrastructure and environmental sustainability?
All elements of the royalty system (except for the resource revenue distribution formula) are open for discussion and a combination of concepts and elements may ultimately be employed to establish the NWT’s royalty system moving forward.
In addition to these questions, the review could also focus on other areas of interest including revisions to the tax structure, exploration incentives, and other best practices currently in use by other jurisdictions.
The next steps in the process will be take the input and feedback received and develop policy options. The implications in of these options will be tested with financial models to develop recommendations. These recommendations and the modelling will be reviewed by an independent third party will take place to check the methods used and conclusions before any new regulations governing royalties are drafted.
Once drafted, a more formal engagement process – including Aboriginal Consultation under the NWT’s Section 35 requirements will be initiated.
Status
Open
Review of Mineral Resources Royalties has finished this stage
Engagement feedback from February 22, 2022 to July 29, 2022
Under Review
Review of Mineral Resources Royalties has finished this stage
Completed
Review of Mineral Resources Royalties is currently at this stage
