Mary River Project Phase 2 Proposal Human Environment Technical Meetings April 8-10, 2019 Mary River Project Phase 2 Proposal Human Environment

Introduction & Overview Confidential

Valued Socio-economic Components Population Demographics Potential effects to community health and well-being Education and Training Potential effects on training and education needs, including training programs Livelihood and Employment Potential effects on labour force development, job creation, and business and contracting opportunities Economic Development and Self-Reliance Potential interactions with local economy Human Health and Well-Being Potential effects on community health, including substance abuse and family violence, as well as health, safety and security of workers on site

Valued Socio-economic Components continued Community Infrastructure and Public Services Potential effects on community and public services and infrastructure Contracting and Business Opportunities Potential creation of new business opportunities and new incomes generated through Project-related employment Culture, Resources and Land Use Potential interaction with culture, resources and land Additional infrastructure and intensity of Project activity at Milne Port Increased frequency of shipping, with larger ships and expanded shipping season Benefits, Royalty and Taxation Potential effects on benefits, royalty and taxation Governance and Leadership Potential changes in governance and leadership

Community Feedback A total of 725 comments or questions related to the Human Environment Benefits, Taxes and Royalties (60) Community Infrastructure and Public Services (34) Contracting and Business Opportunities (36) Culture, Resources and Land Use (85) Economic Development and Self Reliance (2) Education and Training (119) Governance and Leadership (48) Human Health and Well-Being (99) Livelihood and Employment (242)

IQ and Engagement Influence IQ has demonstrated the complex nature of Inuit livelihoods and the importance of both the wage (e.g. employment-based) and traditional economies (e.g. harvesting, land and marine use, consumption of country food) to current individual/community health and well-being Ongoing changes in Inuit society (e.g. the transition to a mixed/wage-based economy) have also been considered in how some Project effects may be experienced by Inuit IQ has informed Baffinland’s understanding of: traditional settlement and migration patterns dimensions and components of Inuit society traditional approaches to education and skill development family roles livelihood pursuits self-reliance strategies conceptualizations of health community well-being

IQ and Engagement Influence Winter shipping was originally contemplated as part of the Phase 2 Proposal but was removed as a result of IQ input and community feedback that revealed concerns with this approach and its potential effects on Inuit land use The Phase 2 Proposal shipping period was ultimately selected to avoid time periods of critical Inuit land use and harvesting activities IQ will be used to determine the location of pedestrian crossings of railroad based on travel routes IQ was used to determine species important for harvesting activities, land use information, and areas of cultural value

Summary of FEIS Results Confidential

Summary of Effects Assessment VEC/VSEC Characterization of Residual Effect (s) Significance Rating Economic Development and Self-Reliance Residual effects were not characterized for this VSEC because the assessment was integrative in nature, relying primarily on the conclusions of other VEC and VSEC residual effect assessments to understand the Phase 2 Proposal’s interactions on economic development and self-reliance. The overall direction of the Phase 2 Proposal’s effects on the economic development and self-reliance VSEC has been assessed, with a high level of confidence, to be positive. Significant (positive) Human Health and Well-Being The adverse residual effects of the Project on human health and well-being are predicted to be: Low to moderate in magnitude; Occurring within point-of-hire communities; Intermittent to continuous in frequency; Medium-term to long-term in duration; and Spontaneous. The probability of the adverse residual effects occurring is high for: Residual changes in parenting; and Residual effects of absence from the community during work rotations Not Significant Community Infrastructure and Public Services As adverse residual effect on competition for skilled workers is predicted from the creation of competition with local employers. This adverse residual effect is predicted to be: Moderate in magnitude; Intermittent in frequency; Short-term in duration; and Reversible. The probability of the residual effects occurring is high. In consideration of the information available and the results of ongoing monitoring related to community infrastructure and public services, there is a high level of confidence in the residual effects predictions. Not significant (adverse); Significant (positive) Confidential

Summary of Effects Assessment VEC/VSEC Characterization of Residual Effect (s) Significance Rating Contracting and Business Opportunities Overall, the residual effects of the Project on contracting and business opportunities are predicted to be: Positive in direction; Moderate to high in magnitude; Occurring within the LSA, RSA, and point-of-hire communities; Continuous in frequency; Medium-term in duration; and Spontaneous. The probability of the residual effects occurring is high. In consideration of the information available and the results of ongoing monitoring related to contracting and business opportunities, there is a high level of confidence in the residual effects predictions. Significant (positive) Culture, Resources, and Land Use The Phase 2 Proposal will result in adverse effects related to the loss of cultural resources, change in access to or availability of harvesting resources, and change in access to travel corridors and camps. Overall, the residual effects of the Project on culture, resources, and land use are predicted to be: Adverse in direction; Low to moderate in magnitude; Occurring generally within PDA and extending to areas within the LSA that may experience additional noise and dust; Infrequent, though in some cases continuous for effects related to access, throughout the life of the Project; and Reversible in nature with the exception of potential ground disturbance effects on cultural resources. There is generally a high probability of the residual effects occurring, except for: Residual effects on marine mammal harvesting, which have a moderate probability of occurring; and Residual effects on caribou harvesting, which have a low probability of occurring. In consideration of the information available and the results of ongoing monitoring , there is: A high level of confidence in the residual effects predictions related to increased ground disturbance, sensory disturbance at camps, and difficulty and safety relating to railway crossing; and A moderate level of confidence in the residual effects predictions for all other residual effects on culture, resources, and land use. Not Significant Benefits, Royalty an Taxation The Approved Project provides significant positive effects with respect to the benefits generated in Nunavut. The Phase 2 Proposal will provide an incremental increase to these already significant effects. Governance and Leadership In the FEIS, Governance and Leadership was addressed as a subject of note. The Phase 2 Proposal does not change the effects of the Project on Governance and Leadership. Since the FEIS, Baffinland and the QIA have negotiated an IIBA, a number of initiatives have been launched, and socio-economic monitoring has been ongoing. In line with the FEIS, the Project is considered to have a positive and significant effect on Governance and Leadership. Confidential

Data History - FEIS Socio-Economic Baseline Report (Appendix 4A) Quantitative socio-economic data/statistics Interviews with Project workers, family members, and supervisors Discussions with service-providers, community leaders, and residents Topic-specific workshops ‘Kajjuqtikkut’ Arctic Bay working group meeting Economic Impact Model (Appendix 4B) Land use report (Appendix 4C) Individual IQ interviews (Appendix 2B; TSD-05) Topic-specific IQ workshops (Appendix 2B; TSD-05) Individual working group meetings (Appendix 2B) ‘Kajjuqtikkut’ Arctic Bay working group meeting (Appendix 2B) Baffinland - QIA thematic workshop (Appendix 2B) Community and stakeholder engagement (Appendix 10F) Preliminary Archeological Mitigation Plan (Appendix 4D)

Updates Since FEIS Updated Socio-Economic Baseline Report (Appendix C to TSD-25) Updated Economic Impact Model (Appendix A to TSD-25) Worker Experience Report (Appendix E to TSD-25) Labour Market Analysis Report (TSD-26) 2013-2018 Socio-Economic Monitoring Reports Community and stakeholder engagement (FEIS Addendum for the Phase 2 Proposal TSD- 04) Community consultation database on Phase 2 Proposal Community workshops, 2015 – 2016 (FEIS Addendum for the Phase 2 Proposal TSD-03) Community workshops, 2019 – Ongoing (results not yet available) Narwhal harvest data (1993 to 2018) Bi-annual meetings with the Mittimatalik HTO on marine monitoring programs 2016 and 2018 Archaeology Field Programs 2013-2018 Archaeology Status Update Reports (submitted confidentially to GN-DCH)

Management Plans, Mitigation and Monitoring Confidential

Management Plans, Mitigation and Monitoring Socio-economic Example Updates (detailed updates available in commitment register) Human Resources Management Plan No significant updates IIBA No updates Q-Step Training Program Cultural Heritage Resource Protection Plan Update to reflect Baffinland’s commitment to provide the Government of Nunavut with an annual archaeology status report by February 28, in addition to the requirement for any licensed archaeologists on the project to provide an archaeology permit report by March 31 Inuit Human Resources Strategy Procedure Inuit Procurement and Contracting Strategy Socio-Economic Monitoring Program Environmental Protection Plan (EPP) Addition of safety features to increase the visibility of the railway crossings and increase safe use of the road

Information Request and Technical Comment Review Confidential

Information Requests

Technical Recommendations Summary Technical Recommendation Category Main Issues Recommendation IDs Summary of Response General  Adequacy of baseline data Use of IQ Monitoring thresholds and actions Benefits promotion/effect mitigation ‘Standalone’ assessment CIRNAC 14-15, QIA 37-39 Statement on data adequacy provided IQ report and details specific to TSD-25 provided Thresholds and actions to be discussed with QSEMC/SEMWG Updates on initiatives, commitments, and mitigation provided Current assessment is comprehensive, Phase 2 is an expansion of existing Project, new information and commitments included in TSD-25, other improvements occurring through review process Culture, Resources and Land Use Adequacy of IQ to assess land use effects Terrestrial travel, camps and harvesting Light, noise, emissions and visual disruption Inuit lifestyles and traditions QIA 3, 10, 12, 20-22; CIRNAC 15 CIRNAC 16 Disagreement with QIA’s assertion that available IQ is not adequate to support culture, resources and land use assessment; further discussion required. Detailed interaction summary for EIS Guidelines requirements provided Human Health and Well-Being Food security  QIA 08 Commitment to re-examine food security baseline and effects assessment, work with QSEMC/SEMWG on potential monitoring indicators, and review effectiveness of Wildlife Compensation Fund Confidential

Technical Recommendations Summary Technical Recommendation Category Main Issues Recommendation IDs Summary of Response Livelihood and Employment Inuit employment GN 28-30, ON 08 Updates on Inuit employment initiatives provided, including those related to women 2018 monitoring results presented, showing increased Inuit employment and training IIBA guides actions in this area (e.g. Employment Committee, Annual Work Plan, IHRS) and contains several implementation / enforcement provisions Education and Training Inuit training GN 29, QIA 32-36 Updates on Inuit training initiatives provided, including those related to women Training initiatives continue to be evaluated internally, through IIBA processes (e.g. Employment Committee), and through monitoring Construction phase training plan to be developed Governance and Leadership Inuit associations CIRNAC 16 Detailed interaction summary for EIS Guidelines requirements provided Confidential