Impact Benefit Agreement (IBA)
Impact Benefit Agreements
In Greenland an Impact Benefit Agreement (IBA) is negotiated on the basis of the Social Impact Assessment Report (SIA Report). In Greenland there are the following three parties to the Impact Benefit Agreement:
- The Mineral Resource Company.
- 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 will begin by the end of the 8-week-long public consultation of the Draft SIA Report.
The IBA is the document in Greenland which post-permitting regulates the social impacts. The IBA in Greenland is divided into two main parts: a general part and a project-specific part of the IBA (the appendices)
The general part of the IBA
The general part of the IBA document frames the general objectives of the agreement and is as a starting point non-negotiable. The general part of the IBA addresses among others 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. The appendices mainly regulate specific impacts and benefits from the specific mineral resource project. Typically, the appendices cover topics such as:
- Mineral resource activities in Greenland (incl. processing of Minerals)
- Greenland workers
- Training and educational initiatives
- Greenland Enterprises
- Monitoring and Evaluation Plan
The appendices address the coming year’s performance targets of the Parties. The appendices will include targets for use of Greenland Workers, Greenland Enterprises etc. Initially, the targets of the appendices are negotiated on the basis of the targets, which the applicant has set in the SIA Report, which has been approved by the government. In other words it is the commitments agreed upon in the appendices of the IBA, which specify the extent to which the project has to use Greenland Workers, Greenland Enterprises etc.
Based on annually monitoring and evaluation of the project’s performance, the commitments in the appendices can be updated from year to year in agreement between the parties to the IBA. The appendices are therefore considered dynamic working documents containing concrete and realistic commitments with regard to use of Greenland workers and Greenland Enterprises, which have to be reached each year by the Licensee and the subcontractors. The procedure of annually monitoring the preformance and possible updating of the commitments in the appendices ensures that the project can evolve in accordance with the latest economic development of Greenland (e.g. labour force, labour market, industry structure etc.)
The Ministry of Industry, Labour, Trade and Energy
Imaneq 1A 301
Phone: + 299 345 000