Emergence of Differential Social License: A Case of Impact and Benefit Agreements in Nunavut, Canada

"Impact and Benefit Agreements (IBAs) are intended to be a negotiated agreement between an industrial proponent and a community, local or regional citizens’ organization. Although the elements have grown over the past two decades from a simple agreement to exceedingly complex legal frameworks, the intention remains the same: to outline the roles and responsibilities of the two stakeholders and the natural resource development on their lands beyond environmental assessment. These agreements were born out of comprehensive indigenous land claims and have become the cornerstone of community engagement today in most indigenous nations. In the case of mixed communities, those that have beneficiaries of land claims and those who are not, social acceptance remains uneven and reflective of an unequal distribution of decision-making power (political ecology). This Differential Social License can cause conflict and a breakdown of the societal fabric that binds communities of diverse populations, resulting in inequality, fictitious wealth generation and failure of infrastructure. This paper presents a case study of how the development of Differential Social License developed in the Hamlet of Cambridge Bay, Nunavut as a result of an IBA negotiated between Tahera Diamond Corp. and the Kitikmeot Inuit Organisation in 2004 for the Jericho Diamond Mine.Introduction / Background Social license (social license to operate or SLO) has become an essential part of the social governance ‘toolkit’ demanded by mining stakeholders in today’s world. Stakeholders are now insistent that companies operate more closely under the tenets of sustainable development and provide for an increased level of community participation. Social license is not simply a matter of communicating with a community, to earn its consent for or acceptance of a project. It requires that we engage with the individuals and organisations who ally themselves with communities, or who sometimes side with dissident factions of a community. SLO is a process associated with and informed by political ecology or the recognition that unequal decision-making power exists amongst stakeholders."