.

Home page

Text size

E-mail this page

SOMBA K'E/YELLOWKNIFE - Despite a recent spate of layoffs and job cuts in Yellowknife, Mayor Gord Van Tighem is staying positive.

"What's happening in the world is going to touch us," said Van Tighem. "Fortunately, it's been a very light touch so far."

Last week, De Beers Canada eliminated 128 jobs at its Snap Lake Diamond Mine; 13 of those jobs belonged to Yellowknifers. The company also expects another 90 contractor jobs to go.

De Beers was only the latest in a growing list of companies in the diamond and exploration industry to shed numbers in its work force.

Earlier this month Arslanian Cutting Works laid off five people. Arctic Sunwest Charters let go more than 20 staff the same week.

While the job cuts are no doubt a blow to the city's economy, Van Tighem asserted going forward is "a matter of focusing on areas where we can do something."

He used the recent board merger controversy as an example.

"First of all you have to identify what the problem is, not just jump up and identify the solution," he said. Then you ask "what is the problem that's developed here? And now how do we deal with it? And then step by step you work your way out of it," he said.

According to Van Tighem, the city is already stepping.

One major potential for job creation is the much-discussed fieldhouse facility, slated for construction over 2009 and 2010 next to the Multiplex.

"It's a way of having a fairly significant project here over the next year or so," said Van Tighem.

Another potentially big one is Avalon Rare Metals' Thor Lake project.

"They're looking at 400 (jobs) in the mine and 400 at a processing plant. We could be working quite diligently to have the processing plant here if it's deemed as something we want," said Van Tighem.

Ultimately, the mayor said, sailing through the recession is "a matter of making sure that we maintain our competitive edge as a community so (people) continue to stay here until things turn around and we get back to work in exploration."

Yellowknife could also benefit from expanding its exploration horizon, said Mike Vaydik, general manager of the NWT and Nunavut Chamber of Mines.

"I think the lesson here is we can't put all our eggs in the diamond basket," said Vaydik. "It would be a lot nicer if we had a more diversified industry here.

"Traditionally in times of questionable economy and concern about currencies, gold does very well. It would be nice if we had a few producing gold mines right now," he added.

Yellowknife has long relied on the territory's exploration industry, which has shrunk dramatically since the recession hit. As Van Tighem put it: "There's four of five active exploration projects, where as if you go back 10 years there was probably hundreds."

"Exploration companies are having very real difficulties in raising financing to undertake any projects here," Vaydik elaborated. "Unless a company has cash in the bank, or had cash in the bank before September, it's very unlikely that they're going to have funds to proceed with exploration programs."

But, like Van Tighem, Vaydik said there was no reason to paint a "too gloomy picture."

"Minerals are a cyclical industry," he said. "We'll just see how fast it can turn around."