About the NRC
In 2009, the Kitikmeot Inuit Association (KIA) set out to explore the potential opportunities that might be derived from the formation of an Inuit-owned resources corporation that could work with, and invest in, major, regional-scale, non-renewable resource developments in Nunavut. The formation of the Nunavut Resources Corporation (NRC) was initially championed by the KIA, which, in turn, successfully obtained co-operative support from other parties. In March 2010, the Nunavut Resource Corporation was registered and incorporated in Nunavut and Alberta.
The basic principle behind the Nunavut Resources Corporation (NRC) was to create a new, unique vehicle to diversify and develop the economy of Nunavut by attracting investment capital to the region. The NRC is intended to work in concert with government and private sector partners to facilitate the development and growth of Nunavut’s non-renewable resources sector. Similar approaches to Aboriginal equity investments have been pioneered across Canada, through vehicles such as the Aboriginal Pipeline Group and others associated with major project developments. Several major Canadian financial institutions have recognized both the potential and the need for such investment options and many have developed capital and trust investment/management programs tailored to meet these needs.
Capital secured by the NRC is intended to be invested by way of the two following strategies:
- Direct equity investments into resource companies that are actively developing regional, non-renewable resource opportunities in Nunavut; and/or
- Indirect investments into non-renewable resource projects through the development of key support infrastructure, such as roads or communication systems, that can generate significant revenues through means such as user fees or lease-back arrangements.
The NRC Vision
The Nunavut Resource Corporation will achieve direct or indirect Inuit equity participation in major resource developments in Nunavut. By doing so, the NRC will:
- Provide Inuit with opportunities to own and manage the natural resources of Nunavut
- Create a more stable local and territorial economic future through the development of a capital investment base
- Enhance business, employment and training opportunities for Nunavummiut
- Provide a basis for senior Canadian financial and investment managers to work together with Inuit
- Provide an Inuit voice at the senior corporate level
- Influence the pace and nature of development in Nunavut
Advantages of the NRC Model
- Direct, or indirect equity participation by Inuit in resource developments enhances the capital position and economic situation for Nunavut
- Strategic investments in infrastructure and equity changes the corporate Risk/Benefit equation
- Inuit equity investment at a time of low valuation enhances leverage in the invested projects
- The NRC concept helps to secure a more stable economic future for Nunavut’s growing population through:
- Expanded resource ownership
- Enhanced infrastructure
- Employment, training and business opportunities