The Supreme Court has ruled in favour of the Nunatsiavut Government in a dispute with the provincial government over royalties from the Voisey’s Bay nickel project.

In his decision, Supreme Court Justice Vikas Khaladkar declares that the calculations for royalties paid to Nunatsiavut Government should not reference costs accrued outside the Labrador Inuit Settlement Area—specifically referencing Vale’s Long Harbour refining facility.

Justice Khaladkar also ruled that the Nunatsiavut Government is entitled to a five per cent share of the funds received by the province as a result of amended agreements with the developers in 2013 and 2014. That includes five per cent of the Community Investment Fund negotiated in said amendments.

Khaladkar states that the province breached its duties to the Inuit by failing to advise them of a decline in mineral taxation revenues by locating the refining plant on the island. It also failed its duties by not consulting with the Nunatsiavut Government ahead of negotiations.

Minister Tony Andersen says the Nunatsiavut Government is pleased by the decision and says they are hopeful that they will now be able to work towards a renewed relationship with the provincial government.