Doug Ashbury
Northern News Services

NNSL (Sep 22/99) - With the way now cleared for Con Mine owner Miramar Mining Corp. to buy Giant Mine, the full effect of a total shutdown at Giant will be at least temporarily averted.

Employees surveyed As part of the report, 179 Giant Mine employees were surveyed Sept. 13-16. - 80 per cent of those surveyed said if they lost their job a Giant, they would leave town. - 95 per cent said they would sell their homes. - 100 per cent said they depended on the income from Giant Mine.

Under its plan to fold Giant's operations with Con, Miramar has said it could rehire up to 50 of Giant mine's 280 workers. But even these jobs may be lost as Giant's reserves are down to a year.

In an effort to show the role Giant Mine plays in the city's economy, the union representing its workers released a Socioeconomic Impact Study of Giant Mine Closure Monday.

Yellowknife would be hit with "dramatic, severe and startling" effects if Giant Mine were to close, according to the study released Monday by Canadian Autoworkers Local 2304.

Complete Giant shutdown translates into a $699,605 municipal and school tax loss for the City of Yellowknife. As well as these corporate tax losses, there would be declines in personal tax revenue. As of Sept. 1, the city is owed $1.6 million in company tax arrears ($1.5 million in municipal and school taxes plus penalties).

If the 110 Giant Mine employees who own homes left town, the City would lose $230,890 in annual tax revenue.

And Yellowknife's two school boards would see their revenues shrink by a total of $984,226.

As for the city's business community, the numbers are even more startling.

The direct economic impact on Yk is about $34.5 million and Giant Mine's estimated $14.6 million of labour spending generates an additional $7.6 million in labour income throughout Yellowknife will be lost, according to the report.

Because of spinoffs, the report says Yellowknife's total GDP from Giant totals $38.3 million.

Labour income, which includes direct, indirect and induced, is $22.2 million.

As well as the effects on Yellowknife, the report also lists the territorial and federal effects. By 2003, the GNWT would lose $13 million in revenue annually while the federal government would lose $5.7 million annually.

In 1997-98, Giant Mine meant $4.7 million in revenue for the NWT Power Corp. This compares with $20.5 million in revenue from the rest of the city of Yk.

The report suggests closing Giant could "possibly force a rate increase."