With nearly nine months until Ottawa’s powers are scheduled to transfer to the Nunavut government, industry figures say it represents an opportunity for Nunavut residents to pursue their own path in mining development.
By April 1, the transfer of powers – the transfer of responsibilities from the federal government to Nunavut – is scheduled to be completed. Iqaluit will manage its lands, waters and resources. Yukon and the Northwest Territories devolved power in 2003 and 2014, respectively.
“The Government of Nunavut has seen significant industry interest in devolution, with stakeholders viewing the territorial government as a local and potentially more accessible partner,” Stephen Mansell, chief delegation negotiator at Nunavut’s Department of Executive and Government Affairs, said in an email response to questions.
“At the same time, the industry has stressed the importance of a smooth transition that avoids disruption to existing operations.”
$1.4 billion mining economy
The predominantly Inuit region is also Canada’s largest by land area and hosts vast mineral resources, four producing mines and dozens of exploration projects. While most of its mines and exploration sites are difficult to access due to limited infrastructure, mining contributed $1.45 billion to the provincial economy in 2025, or 35% of GDP, according to Statistics Canada.
The Government of Nunavut and the Inuit rights organization Nunavut Tunngavik Inc. signed the agreement. (NTI) and the federal government on the Nunavut Land and Resource Devolution Agreement in 2024. Since then, the three bodies have been preparing to transfer land, water and resource management powers to Iqaluit.
After the agreement comes into effect next April, Nunavut will issue mineral claims on Crown lands and manage mineral tenure. It will also receive revenue from mining royalties, land leasing and Crown land development.
Ottawa would still have jurisdiction over fisheries, migratory birds, navigable waters and other federal issues that could affect mine development.
The Narrow Path of Kings
While the territory is entitled to more royalties, many of Nunavut’s major mining operations and some of its most potential mining areas are on Inuit-owned land, and royalties actually go to Inuit organizations rather than the federal government. The rest of the lands are crown lands.
All of Nunavut’s producing mines — including Agnico Eagle’s (NYSE, TSX: AEM) Meadowbank-Amaruq and Meliadine mines, B2Gold’s (TSX: BTO, NYSE-A: BTG) Goose mines and the Mary River iron mine in Baffinland — are located wholly or partly on Inuit-owned land. Agnico declined to comment for this story.
“No royalty amounts or distributions will change in Nunavut until new mines are found, permitted and produced on Crown land rather than Inuit-owned land,” said Paul Hebert, CEO of the Northwest and Nunavut Chamber of Mines.
Yukon caution
But royalties may not be the path to quick cash that many think, and Yukon stands as an example, warns Ken Coates, a distinguished fellow at the Macdonald-Laurier Institute and professor of Indigenous governance at the University of Yukon.
Achieving a royalty windfall requires large producing mines linked to infrastructure and a royalty policy that captures the appropriate value from mining. Yukon has a good road network, and its alluvial gold mines generated $400 million in revenue in 2025, according to Yukon Geological Survey data. However, the Yukon government received only about $39,000 due to the low alluvial royalty rate of 37.5 cents per ounce, which is also not in line with the price of gold.
Nunavut drafting its own mining laws is essential to putting its own stamp on the legislation, Coates said.
“They have such an integrated approach to legislative development in Nunavut,” he said. “(It must) be proactive in getting the support of the communities behind the Nunavut model of resource development, and this must also be done with well-represented resource companies.”
Infrastructure
Coates said mine development could stimulate the construction of new roads, help lower the cost of living and provide skills training opportunities.
“So the government of Nunavut can capture the benefits of all those non-revenue opportunities that come with resource activity.” With Ottawa poised to play a less prominent role after the devolution, miners and explorers are keen to see how decision-making regarding projects changes and whether they are likely to move faster.
Successful authorization will depend more on regional capacity, staffing and coordination within the government than on the transfer of powers per se, Hebert said.
“Nunavummiut is expected to benefit the most from devolution, as it creates the potential for more local decision-making and economic opportunities.”
Permits
Baffinland, for its part, expects the transfer of authority to enhance project decision-making in Nunavut, spokesman Peter Ackman said.
“The most significant change expected is that the Government of Nunavut will become the final decision maker regarding certain project approvals that currently rest with the federal government.”
B2Gold was unable to comment on the details of the authorization but said the company supports the authorization process.
“This important work will ensure that Nunavummiut benefits from the ability to make decisions about land, development and resource management in Nunavut,” said spokeswoman Cherie Degere. Meanwhile, Iqaluit is focusing on drafting “mirror” legislation that mimics the territory’s own federal laws.
“This approach ensures that licences, permits, approvals and regulatory processes continue uninterrupted when the devolution takes effect,” Mansell said.
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