NNSL (Dec 21/98) - Loss of Giant and Con mines would suck hundreds of jobs out of the Western NWT, a new government publication says.

"Should both (Royal Oak's Giant mine and Miramar's Con mine) shut down completely, the city would suffer a severe economic contraction and likely experience a net loss of more than 1,000 people in 10 years, according to Resources Wildlife and Economic Development's recently released first issue of the Northwest Economic Monitor.

"If we lose both, we're in for a definite slowdown," RWED planning manager Dan Westman said.

Every job at Giant or Con generates another indirect job.

Losing 1,000 jobs represents about five per cent of the territorial capital's population.

This would do serious damage to the tax base.

And the city's already depressed real estate market, would sustain a major blow.

The threat of total mine closure will remain very real as long as the price of gold remains depressed, the report said.

Giant and Con are crucial to the economic health of Yellowknife, even after both mines' combined layoffs a year ago.

Each year, Giant and Con combine to pay about $59 million in direct wages.

The golden duo also generate an additional $14 million in indirect wages.

Throughout this year, the world price for an ounce of gold was below what it cost to produce an ounce of gold, RWED said.

From 1991 to 1996, gold has accounted for a whopping 40 to 50 per cent of the value of all NWT mineral production.