Chamber urges focus on mining industry
Letter pushes for new government to create
mineral and petroleum resources department
Karen K. Ho
Northern News Services
Friday, December 18, 2015
NWT
The NWT and Nunavut Chamber of Mines is urging the territory's newest government to prioritize the minerals industry following the collapse of the Snap Lake and Cantung mines.
NWT and Nunavut Chamber of Mines president Gary Vivian, speaking at the organization's annual general meeting this year. The organization issued a news release on Dec. 15 calling on the new territorial government to prioritize the minerals industry. - NNSL file photo
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"We felt it was an opportune time to make comments about what really the industry brings to the NWT government, the federal government and everyone who lives here," said president Gary Vivian, citing the industry's 40 per cent contribution to the territory's gross domestic product.
In a news release issued on Dec. 15, both executive director Tom Hoefer and Vivian said its industry group was appealing to the members of the 18th Legislative Assembly to prioritize improving the territory's "investment climate."
"There are some things the government can do to the inherent problems that are keeping people away from here," Vivian said.
He doesn't believe the global economy is to blame for what happened to so many mining and exploration projects in the territory.
"There's still lots of exploration dollars being spent everywhere else but there are none being spent here," he said.
While resources like oil are projected to fall to as low as $30, he said that hasn't stopped work and projects from taking place in the Yukon and Nunavut.
"They're in the same economy the NWT is in," he said, "Why is there is five times the amount of money being spent in Nunavut compared to the NWT?"
"We need our new government to take appropriate steps to protect our minerals industry," Vivian wrote in the news release sent out on Dec. 15.
According to the Chamber, the mining industry has contributed as much as 50 per cent of the territory's gross domestic product; currently it provides 40 per cent.
Vivian called the closures of the Cantung and Snap Lake mines both huge blows to the territory's economy, worsening the situation caused by a seven-year decline in mineral exploration investment, which has also negatively affected exploration support businesses.
"Our business community is seeing job losses and decreased business spending while both our public and Aboriginal governments are seeing reduced revenues," he stated. "The NWT lost about $1 billion in investment opportunity compared to Yukon and Nunavut and we need to see some action to recover exploration investment to protect future mining."
In the Chamber's guide titled "Building Future Success," it said priority actions include:
- Investing in infrastructure to level the playing field with southern Canada.
- Decreasing regulatory costs by saying no to Ottawa's cost recovery proposal
- Addressing land access uncertainty by settling remaining land claims, advancing land use planning, and limiting the creation of unnecessary new protected areas.
- Reducing the high cost of living in the North and its effects to labour and service costs.
- Strengthening our Northern workforce through education and training.
Vivian said one of the largest deterrents to new investment in the territory is caused by "inherent problems" by unsettled land claims.
"As long as there is an interim land withdrawal, aboriginal or First Nation communities can put a stop to any permitting process by saying 'public concern'," Vivian said. "It's a huge issue. The playing table changes all the time."
At the Chamber's annual general meeting members expressed concerns about the Minister of Industry, Tourism and Trade also being responsible for developing smaller craft-based companies like Dene Fur Clouds. In their news release, Vivian and the Chamber also called on the new territorial government to create a new Department of Mineral and Petroleum Resources with its own minister.
"We need that kind of attention," Vivian said.