Economic future looks positive
New report cites Mary River project for growth
Karen K. Ho
Northern News Services
Monday, July 27, 2015
NUNAVUT
The territory's economy is primed for growth in the upcoming year due to mining projects and infrastructure spending, according to a new report from the Conference Board of Canada on the economic forecast of all three territories.
Premier Peter Taptuna, centre, and principal secretary Ed Picco, right, visit Baffinland's Mary River iron mine. The Conference Board of Canada said the project is one of the major items boosting the territory's economy. - NNSL file photo |
Marie Christine Bernard, the board's associate director of territorial forecast services, said that Baffinland's Mary River project is one of the major items helping fuel the territory's growth.
"Compared to the other two territories, that large investment is really helping the (economic) outlook considerably," she said, adding the first shipments of ore will also provide additional boosts to the economy this year.
However, she acknowledged that many of the staff working at the mining projects are also fly-in, fly-out. Of the territory's total workforce of 15,000 people, Bernard said approximately 2,000 live outside of Nunavut.
Other significant projects include Agnico Eagle's Meadowbank gold mine, the Meliadine mine, the multi-year $300-million upgrades to the Iqaluit airport, a new $40 million aquatic centre as well as the $143-million Canadian High Arctic Research Station in Cambridge Bay, slated to continue construction until 2017.
The report said Nunavut's GDP is expected to grow this year by 3.8 per cent, the highest rate in the country. But growth will be affected next year following the end of construction of the $740 million early revenue phase of the Mary River project.
The report also stated that the territory is expected to have a fiscal surplus of almost $23 million in 2015-2016. This, along the recent expressed intention by Ottawa to raise the territory's borrowing limit from $400 million to $650 million, "could lead to further infrastructure projects," the report said.
According to the conference board, the territory's fishing industry is expected to continue to have double-digit growth through the end of the decade following a 16 per cent increase in 2014 and a 14 per cent increase in 2015.
Ultimately, even with the high costs of operating mines in the territory, Bernard said that natural resources are still its greatest competitive advantage.
"It's just the economics of making it work right now, prices are low and it's hard to obtain financing," she said. "But that can change rapidly as well. We'll have to watch closely."
