Canadian Manufacturing

Northwest Territories, aboriginal groups to share resource royalties

Premier Bob McLeod said sides will "work together very much like the European Union model"

February 28, 2014  by The Canadian Press

YELLOWKNIFE—The Northwest Territories has signed a deal to share resource royalties with aboriginal governments, saying it’s the first jurisdiction in Canada to do so.

“We’re going to work very co-operatively and collaboratively with the aboriginal governments,” Premier Bob McLeod said.

The deal involves the territorial government and five aboriginal groups.

Negotiations are underway with another two groups to bring them on board.


A number of aboriginal governments exist in the Northwest Territories and other land claims are under negotiation.

Those governments have significant powers over their own land and water.

Sharing the wealth produced from them was a big part of Ottawa’s recent agreement to grant the territory province-like powers.

That deal guarantees the territory’s aboriginal governments will get up to 25 per cent of all the its royalty revenue.

The territorial budget earlier this month predicted that amount will be about $15-million this year.

The resource deal also creates a council for co-operation between the territorial and aboriginal governments on resource and land management.

“We’ll work together very much like the European Union model,” said McLeod. “Each of the different governments will have authority and responsibility over their own lands, so together we’ll manage the whole territory.”

Resource royalty sharing has been on the wish list for many aboriginal groups in Canada—especially in Alberta, where it has long been sought by First Nations in the oilsands region.

Print this page

Related Stories