2010 Mining Explorers: Future offers promise for mining

Northwest Territories leaders favor mineral projects with win-win scenarios

Hon. Bob McLeod

Special to Mining News

The search for furs opened up the Northwest Territories more than 400 years ago, bringing explorers and traders to the North. In today’s economy, it’s the search for – and the development of – mineral resources that is the one of the main cogs in the NWT economy. It’s an industry that contributes more than C$1 billion annually to our economy and creates more than 2,000 direct jobs.

And while the past two years have been challenging for the mining industry everywhere due to the global economic crisis that has seen exploration companies curb spending, the Government of the Northwest Territories remains optimistic that the mining future in our territory is filled with promise.

That optimism springs from the knowledge that the NWT is endowed with a diversity of mineral resources — diamonds, lead, zinc, copper, tungsten, rare earths, gold, silver, platinum and more. With a land mass of more than 1.14-million square kilometers, and much of it still unexplored, there are large prizes to be won in the NWT.

Through my department — Industry, Tourism and Investment — the GNWT develops and implements strategies to attract mining investment in the NWT. We are also a source of information and expertise about existing and potential mineral resources in our territory.

The NWT has four operating mines; three of them are diamond mines that produce approximately 15 percent of the world’s rough diamonds. But there is potential for much more activity than that. In fact, there are at least nine projects that are in various stages of development and could become producing mines within the next decade.

Avalon Ventures’ Nechalacho rare earths project, Canadian Zinc’s Prairie Creek lead/zinc/silver project and the Gahcho Kué diamond project — a joint venture partnership between Mountain Province and De Beers — are just some of the NWT’s more promising prospects. Each potential mine represents valuable jobs and business opportunities for northerners.

However, that development cannot come at the cost of our environment. One of the goals of our government is to have an environment that will sustain present and future generations of NWT residents.

That means development must be responsible and it must be sustainable for our land and wildlife. Through our attendance at industry trade shows, and through building relationships with organizations like the NWT & Nunavut Chamber of Mines and with the companies operating mines and exploring in our territory, we work with industry to strike that balance between development and environmental protection.

Another one of our government’s main goals is to foster a diversified economy that provides all regions and communities with opportunities and choices.

Mining exploration and development assists us in creating that diversity. When a mine opens in our territory, the employment and business opportunities associated can have an effect in each of 33 communities. As a government, we are committed to projects that are win-win scenarios for both the industry and the people of the Northwest Territories.

We’re also committed to following through on opportunities from non-renewable resource developments. And we are doing that through negotiating socioeconomic agreements with the companies running our three diamond mines: Ekati, Diavik and Snap Lake.

Socioeconomic agreements reflect commitments and predictions made by mining companies for areas such as employing northerners and Aboriginal people at the mines and purchasing from northern and Aboriginal-owned companies.

These agreements are working, as evidenced by the fact that since 1996, the NWT’s diamond mines have resulted in 15,545 person years of employment for northern and Aboriginal residents and have surpassed more than C$8 billion (Canadian) in investment with northern and Aboriginal-owned companies.

The NWT does face some challenges as we strive to take full advantage of our mineral potential. Industry has made it clear our regulatory system could be improved, and we lack an adequate amount of infrastructure.

Our government is working on those challenges. We continue to call on the Canadian federal government to provide the resources to our regulatory boards. This will ensure northerners can continue to make decisions on development taking place in their backyards and that industry has certainty on timelines for decisions when they enter the regulatory process.

As for infrastructure, investments that will improve access to our mineral resources and bring down the cost of doing business in the NWT are important in attracting more industry interest in our resources. Our government recognizes this, and we continue to do all we can to improve our roads and our bridges and enhance our infrastructure to encourage mining development.

But we can’t do it alone. That is why we continue to push our federal government to invest in the NWT and its infrastructure and assist us in building roads, bridges and ports as well as advancing hydro development to increase access to our wealth of mineral resources and improve the investment climate in the NWT. We have the resources. We are ready to capitalize on our potential. With the proper support and investment in our territory, the GNWT believes it can realize that potential. Our government is committed to working with industry to have responsible development that not only benefits our residents but leads to a prosperous industry.

The Hon. Bob McLeod is minister of Industry, Tourism and Investment for the Government of the Northwest Territories.