The world economy may continue to be shaky, but Nunavut has the resources to ensure continued growth. Nunavut is not only rich in mineral and renewable resources, it also has a young population eager to learn new skills and turn the territory into a significant exporter of mineral commodities.
Interest in Nunavut as a destination for mineral explorers remains strong in 2011, reflected by higher levels of spending from last year, and growing interest in advanced projects by major companies. With the increased level of activity and the addition of new projects, actual year-end expenditures are likely to exceed the C$322 million forecast estimated by Natural Resources Canada early in 2011.
Major mining companies from around the world are focusing on Nunavut’s mineral potential. Earlier this year we welcomed the world’s largest steel producer, ArcelorMittal, to the territory. The Luxembourg-based company bought 70 percent of the Mary River iron ore project on Northern Baffin Island. Nunavut Iron Ore Acquisitions owns the rest of the project.
Mary River is among the largest undeveloped iron deposits in the world. ArcelorMittal is working on a draft environmental impact statement in support of its proposed development of the deposit. Mary River has the potential to operate for 40-plus years. This means at least two generations of workers can be employed there. The stability of this project will contribute to sustained economic growth in Nunavut. ArcelorMittal also has the financial means to bring this multibillion-dollar project into production. Under the present plan, pre-construction could begin as early as next summer.
In the Kivalliq region of Nunavut, one of the leading gold producers in the world, Agnico-Eagle Mines, is advancing its Meadowbank gold mine. The mine is in its second year of operation. In August Prime Minister Stephen Harper visited the mine site, which employs about 600 people - almost half of them Inuit from Nunavut. I’ve also been there on a number of occasions. Agnico-Eagle also owns the Meliadine gold project near Rankin Inlet. Since acquiring the project last year, the gold producer has ramped up delineation work on the known deposits. With an announced budget of C$65 million, the company’s plans include 95,000 meters of drilling, an underground bulk sample, camp expansion, and other site improvements during 2011.
Uranium is also an important potential commodity in the Kivalliq region. AREVA Resources Canada resumed work in late May at its Kiggavik uranium project near Baker Lake. Kiggavik is the most advanced uranium project in the territory. A draft environmental impact statement is expected from the company by the end of this year. If the project is approved, construction may begin at Kiggavik by about 2017.
Over in the western Kitikmeot region, Newmont Mining Corp. is moving closer to opening a gold mine. It is planning to develop the entire Hope Bay greenstone belt in stages. This project holds significant potential, and I’m looking forward to Newmont developing its first mine in Nunavut. The company announced a budget of C$300 million for surface and underground exploration at Doris North, including 90,000 meters of drilling, mine development, and infrastructure construction.
Sabina Gold & Silver Corp. also has been active in the western-most region of Nunavut. This summer it agreed to sell its silver-rich Hackett River copper-zinc project and the surrounding Wishbone claims with base metal potential to Xstrata Zinc Canada. Sabina retained the nearby Back River gold project, which has since become the main focus of its exploration work. MMG Resources Inc. (MMG) announced the sale of the former-operating Lupin gold mine and the Ulu gold deposit to Elgin Mining in a move to concentrate efforts on its large base metal deposits (Izok Lake and High Lake).
Mining and exploration companies are active in Nunavut. They are buying, selling, exploring and mining. The territory has attracted increased interest in 2011, with multinational involvement from investors and operators, as well as an influx of new companies and projects. These companies are exploring for a diverse set of commodities all over the territory, and there still remain large areas which are underexplored. New mapping is proving the mineral richness of Nunavut, showing that our territory has great potential for discovery success. The number of projects advancing through the regulatory process suggests that Nunavut’s mineral production will increase substantially in the coming years.
