Cost Analysis of Community Benefit Agreements for Developers

This research article investigates the costs associated with community benefit agreements (CBAs) for private project developers, focusing specifically on the Mary River Inuit Impact and Benefit Agreement (IIBA). The study aims to fill a gap in existing literature by estimating the financial implications of CBAs on developers, particularly in the context of the Mary River Iron Mine. Through a case study analysis, the authors evaluate the cost of the IIBA for Baffinland Iron Mines Corporation and assess its impact on the mine's economic viability. The findings suggest that the costs incurred from the IIBA are relatively low compared to the total cash costs of the project and have a marginal effect on its overall economic feasibility. Additionally, the study compares the lifetime costs of the IIBA to potential costs arising from conflicts, indicating that the costs of conflict may be comparable to those of the IIBA. The research contributes to a better understanding of the financial dynamics between project developers and local communities in resource governance.