Impact Benefit Agreement (IBA)

Impact Benefit Agreements

In Greenland an Impact Benefit Agreement (IBA) is negotiated on the basis of the Social Impact Assessment Report (SIA Report). In Greenland there are the following three parties to the Impact Benefit Agreement:

  1. The mineral resource company
  2. The municipality or municipalities, which according to the SIA Report will be impacted by the mineral resource activities
  3. Government of Greenland

The negotiations of the IBA will begin by the end of the 8-week-long public consultation of the Draft SIA Report.

The IBA is the document in Greenland which post-permitting regulates the social impacts. The IBA in Greenland is divided into two main parts: a general part and a project-specific part of the IBA (the appendices)

The general part of the IBA

The general part of the IBA document frames the general objectives of the agreement and is as a starting point non-negotiable. The general part of the IBA addresses among others how cooperation between the parties will be organized and which areas will be included.

The project-specific part of the IBA: The appendices

The project-specific part of the IBA consists of set of appendices. The appendices mainly regulate specific impacts and benefits from the specific mineral resource project. Typically, the appendices cover topics such as:

  • Mineral resource activities in Greenland (incl. processing of minerals)
  • Greenland workers
  • Training and educational initiatives
  • Greenland Enterprises
  • Monitoring and Evaluation Plan

The appendices address the coming year’s performance targets of the Parties. The appendices will include targets for use of Greenland Workers, Greenland Enterprises etc. Initially, the targets of the appendices are negotiated on the basis of the targets, which the applicant has set in the SIA Report, which has been approved by the government. In other words it is the commitments agreed upon in the appendices of the IBA, which specify the extent to which the project has to use Greenland Workers, Greenland Enterprises etc.

Based on annually monitoring and evaluation of the project’s performance, the commitments in the appendices can be updated from year to year in agreement between the parties to the IBA. The appendices are therefore considered dynamic working documents containing concrete and realistic commitments with regard to use of Greenland workers and Greenland Enterprises, which have to be reached each year by the Licensee and the subcontractors. The procedure of annually monitoring the preformance and possible updating of the commitments in the appendices ensures that the project can evolve in accordance with the latest economic development of Greenland (e.g. labour force, labour market, industry structure etc.)

Further information:

Please see The Guidelines on the process and preparation of the SIA report for mineral projects

or contact

The Ministry of Mineral Resources and Labour
Imaneq 1A 201 
Postboks 930 
3900 Nuuk
Phone: + 299 34 68 00