Path to the Arctic Doing Business in Nunavut A presentation by the Baffin Regional Chamber of Commerce

Our Objectives • To provide an understanding on how to navigate the

business culture in Nunavut with respect of the Land Claims Agreement.

• To give an overview of the major economic sectors that offer the most potential opportunities

Agenda • Introduction to Nunavut

• Unique factors that impact business development in the North • The Nunavut Economy • Major Players • Opportunities • Possible market entry strategies • Questions and Answers – throughout and will allow for

follow up afterwards

Things to Remember • Business in Nunavut is very different from doing business in

Southern Canada or around the world.

• The Nunavut Land Claim Agreement sets the stage for how business is done in Nunavut.

Nunavut – Our Land

Nunavut – Our Land • 1.9 million km² (750,000 sq. miles) • One fifth of Canada’s land mass • 25 communities in the Territory • Community populations range from 130 to 7740 • Iqaluit is the capital of Nunavut with the population of 7740 • Grise Fiord, the most northern community, has 24 hours of

daylight in June and 24 hours of darkness in December • Cost of living – 1.6X to 3X the cost of living in other parts of

Canada • Nutrition North is currently examining how to improve the

access to healthy food with lower prices.

Nunavut – Our Land

• Split into three regions • Kitikmeot Region • Kivalliq Region • Qikiqtaaluk Region

• Also known as Baffin Region

• Rich in untapped resources • Growing mining sector

• Lead, zinc, silver, diamonds, iron ore, and gold • Growing fisheries sector

• Fisheries and meat processing plants • A limited wage economy • Strong traditional economy • Arts and crafts industry • Federal transfer payments • Construction/infrastructure • Tourism

Nunavut – Our Land

Nunavut Land Claim Agreement • Inuit gave Canada rights of entry, access, land use • Government compensated Inuit for these rights and the

means of participating in economic opportunities • Provide Inuit with wildlife harvesting rights and rights to

participate in decision-making concerning wildlife harvesting • Encourage self-reliance and the cultural and social well-

being of Inuit.

Article 24 • The Nunavummi Nagminiqaqtuik Ikajuuti (NNI) Policy

• Requires GN and federal government procurement policies that favour qualified Inuit firms and Nunavut-owned firms over other businesses

• Commits governments to train Inuit firms, and to set up programs to increase Inuit job and business skills.

“The Department of Economic Development and Transportation (ED&T) has the obligation and mandate to promote economic development and increase opportunities for Nunavummiut to participate in traditional and growing global economies. ED&T will meet this obligation by working in partnership with other departments of the Nunavut Government and with agencies concerned with social and economic development.”

Article 26 Sets out the rules to be followed when a major

development project is planned for Nunavut

Birthright Corporations

Kitikmeot Region Kivalliq Region Qikiqtaaluk Region

(Baffin Region)

Nunavut Wide

Government of Nunavut

• Powers of the Nunavut Government are set out in the Nunavut Act

• It is a territory NOT a province: • No non-renewable resource revenues • Territorial laws can be over-ridden

• NOT an Aboriginal Self-Government, unlike the Gwichin, Inuvialuit and Nunatsiavut

• Laws are made by a 21 member elected Legislative Assembly, operated on consensus

Government of Nunavut DEPARTMENTS RELATED TO BUSINESS

• Community & Government Services • Economic Development & Transportation • Health • Family Services • Environment

AGENCIES • Nunavut Development Corporation • Nunavut Business Capital Corporation • Nunavut Housing Corporation • Qulliq Energy Corporation

Infrastructure • With no roads into Nunavut or between communities,

airports and marine facilities are the life blood of Nunavut

• Marine infrastructure under development • Iqaluit to have a deep water port by 2020 • Small craft harbours for communities are being examined

Retail • Arctic Co-Operatives Ltd. • The North West Company • Nunavut retail sales continue to climb

• 2013 - $353 Million • 29 Million increase to 2009’s retail sales

• Online shopping often has high shipping costs

Tourism • $30 Million – 2009 • $40 Million – 2011 • Forecasts of total revenues from the tourism sector from

2013 to 2018 estimate possible $49 million • Growing number of visitors from cruise ships • Still a major area for growth • Destination Nunavut

Commercial Fishery • Growth and maturing of Nunavut fishing industry • 4 primary offshore participants • From no vessels owned to six Inuit-owned offshore factory

freezer trawlers • Investing in infrastructure, fishing licenses, science and

research, and training • Increasing returns and benefits to local owners

Commercial Fishery • Turbot – increase in landed value from $35.4 Million to

$78.8 Million • Shrimp – increase in landed value from $12.1 Million to

$32.6 Million • Nunavut Fisheries Strategy is currently being developed • $7 million funding for research on new and developing

fisheries in the arctic announced in January 2015

Tendering Process • The Government of Nunavut has a continually updated list

of supplies and services

• Visit the website for the list of tenders, or check Nunatsiaq News

• Nunavuttenders.ca or nunatsiaqonline.ca

• 2013-2014 – the Government of Nunavut contributed $72 million to Nunavut’s municipalities in grants and contributions

Tendering Process

www.nunavuttenders.ca

Networking and Exploring Opportunities • Nunavut Trade Show – BRCC

• September, Iqaluit, NU – Yearly

• Northern Lights – BRCC, LNCC, Makivik • February, Ottawa, ON – Every two years

• Northern Perspectives – BRCC, KivCC, NACA • February, Winnipeg, MB – Every two years

• Northern Exposure – LNCC • January, St. John’s, NFLD – Yearly

• Expo Labrador – LNCC • June, Goose Bay, NFLD – Yearly

Thank you for your time!