The Impact Benefit Agreement (IBA) is negotiated on the basis of the Social Impact Assessment Report (SIA Report).
The IBA is negotiated between:
The mineral resource company (applicant)
The municipality or municipalities, which according to the SIA Report, will be impacted by the mineral resource activities
Government of Greenland
The negotiations of the IBA begin at the end of the 8-week-long public consultation of the Draft SIA Report.
The IBA regulates the social impacts once the exploitation licence is granted. The IBA is divided into two main parts: a general part and a project-specific part (the appendices).
The general part of the IBA
The general part of the IBA document is non-negotiable, and frames the general objectives of the agreement. It addresses how cooperation between the parties will be organized and which areas will be included.
The project-specific part of the IBA: The appendices
The project-specific part of the IBA consists of set of appendices regulating specific impacts and benefits from the mineral resource project. Typically, the appendices cover topics such as:
- Mineral resource activities in Greenland (incl. processing of minerals)
- Greenlandic workers
- Training and educational initiatives
- Greenland Enterprises
- Monitoring and Evaluation Plan
The appendices address the coming year’s performance targets of the Parties, such as the use of Greenlandic workers and enterprises. These targets are negotiated based on the SIA Report, but are only enforced in the appendices of the IBA.
Based on annually monitoring and evaluation of the project’s performance, the commitments in the appendices can be updated from year to year per agreement between the IBA parties. The appendices are therefore dynamic working documents containing concrete and realistic commitments regarding the use of Greenlandic workers and enterprises. The Licensee and the subcontractors must live up to these commitments each year. The annual monitoring of the performance and possible updating of the commitments in the appendices ensure that the project evolves in accordance with the latest economic development of Greenland (e.g. labour force, labour market, industry structure etc.).
You can find more information in the SIA guidelines.