Xstrata Nickel announced that it has presented a cheque in the amount of CAD 32.6 million to the Makivik Corporation, representing the local Inuit communities’ share of the profits generated in 2007 by the Raglan nickel mine operation located in the Nunavik Territory of Northern Quebec.
This yearly profit sharing is part of the Raglan Agreement, a comprehensive agreement signed on February 28th 1995 with Makivik and local Inuit communities. The agreement supports the harmonized relations and fostering of opportunities between Xstrata Nickel and local populations and their representatives in areas such as training, hiring of local businesses and environmental management.
Mr Pita Aatami president of Makivik Corporation said that “This year’s profit sharing will be again put to good use in developing economic and training opportunities, which will contribute to the well being of Inuit communities.”
Mr Ian Pearce CEO of Xstrata Nickel said that “The Raglan Agreement addresses a variety of areas, including preferential hiring of qualified local Inuit personnel and businesses, environmental protection and mitigation, procurement and profit-sharing measures. To date Xstrata Nickel has delivered Cdn$58.6 million back to the community. We are proud of our strong relationship with the local communities and remain committed to fostering effective engagement with all stakeholders.”
Xstrata Nickel’s Raglan mining camp was constructed at a cost of CAD 600 million and began production in 1997. In 2007, capital investments included CAD 48 million to refurbish existing wharf facilities and Cdn$50 million to expand accommodation facilities. Exploration results have confirmed Zone 5-8 as the largest mineralized zone in Raglan’s history, adding an estimated 4.5 million tonnes of inferred resources in 2007.
Raglan consists of three underground and one open pit nickel mines and a concentrator. Approximately 620 employees and 250 contractors work at Raglan. The mine site is linked by all weather roads to an airstrip at Donaldson and to ship loading facilities at Deception Bay.
