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GNWT seeking $600 million to build mining momentum Industry minister wants to push full steam ahead on energy and mineral exploration infrastructure
Daron Letts
Northern News Services
Published Friday, August 30, 2013
SOMBA K'E/YELLOWKNIFE
The rush is on to build new infrastructure to encourage non-renewable resource extraction in the NWT, according to Industry, Tourism and Investment Minister David Ramsay and federal Natural Resources Minister Joe Oliver.
GNWT Industry, Tourism and Investment Minister David Ramsay, left, and Federal Natural Resource Minister Joe Oliver shake hands in the Explorer Hotel's Janvier Room at the close of the Energy and Mines Ministers' Conference on Aug. 27. - Daron Letts/NNSL photo |
The politicians closed the Energy and Mine Ministers' Conference at the Explorer Hotel on Tuesday by pledging to collaborate quickly to attract foreign investment in Northern exploration and diversify markets, both of which require more infrastructure.
"Natural resources are the foundation of our territorial economy and mining is its largest sector. But, we are not even close to realizing our full potential," Ramsay said. "In the NWT, our greatest challenge remains infrastructure. Our infrastructure is underdeveloped and, for most modes of energy transportation, we are very remote from markets."
Pressing infrastructure projects on Ramsay's agenda include the Mackenzie fibre optic link, Hydro-power projects, completion of the Inuvik-to-Tuktoyaktuk Highway and upgrades to roads, bridges and ports.
"It is imperative that these infrastructure investments happen in a timely fashion," Ramsay said. "We cannot lose our momentum or the opportunity to sustainably develop our resources."
Ramsay said he plans to approach Ottawa for $600 million in infrastructure funding over 10 years through the federal New Building Canada Fund.
"We're not sure what the funding relationship will be, whether it's 75/25 cost share dollars or 50/50, that's yet to be determined, but that will inject $600 million in spending on infrastructure projects," he said. "We're anxious to see if we can get some success with that. We're being ambitious, we're being aggressive, but we need to be."
The mining and oil and gas industries account for about a third of the territory's GDP. Three oil and gas fields are currently in production, with the Ikhil field in the Mackenzie Delta scaling production. As well, the territory's four active mines are scheduled to close between 2014 and 2028, with another seven potential mining projects in development.
"Worldwide demand for natural resources continues to grow and we are poised to meet that demand," Ramsay said. "The GNWT is steadily putting in place the elements of a plan for Northern prosperity, working with the federal government, regional aboriginal governments and our industry partners to do so."
His department plans to release the NWT Minerals Development Strategy early this fall.
The mining and energy sector represents 18 per cent of Canada's GDP, more than half of its exports, and 1.8 million jobs across the country, Oliver said.
"In other words, there is not a community or family anywhere in Canada that does not benefit in some significant way from energy and mining," he added. "That is precisely why federal, provincial and territorial governments work together so we can fully realize the potential of our natural resources for all of Canadians. The Energy and Mines Ministers Conference is part of this collaboration."
The conference, which ran from Saturday until Tuesday, brought 220 delegates to the city. Next year's conference is scheduled for Sudbury, Ont.
Non-renewable resources in the NWT by the numbers
- $768 million: Amount mining and mineral development contributed to the NWT economy in 2011.
- $500 million: Amount of that sum paid to NWT businesses.
- 3,000: Estimated number of workers employed in the NWT mining industry.
- 48: Percentage of NWT mining industry employees who are NWT residents.
- 33: Percentage of the territory's GDP contributed by the oil and gas industry in 2011.
- 35: Percentage of Canada's remaining marketable resources of natural gas located in the North.
- 37: Percentage of Canada's remaining marketable resources of light crude oil located in the North.
- $1.05 billion: Rise in the territory's GDP between 1999 and 2011 ($2.08 billion to $3.13 billion), largely due to mining, mainly diamonds, and oil and gas.
Producing mines and their projected end date
- Diavik - Rio Tinto, diamonds (2019)
- Ekati - BHP Billiton, diamonds (2023)
- Snap Lake - De Beers Canada, diamonds (2028)
- Cantung - North American Tungsten (2014)
Potential mine developments and their projected start dates
- Yellowknife Gold Project - Pine Point, gold (2015)
- NICO - Fortune Minerals, gold, copper, cobalt, bismuth (2015)
- Nechalacho - Avalon Rare Earth, rare earth metals (2015)
- Prairie Creek - Canadian Zinc (2015)
- Gahcho Kue - De Beers Canada/Mountain Province, diamonds (2015-16)
- Pine Point - Tamerlane, zinc, lead (2014)
- Courageous Lake - Seabridge, gold (2016-17)
Producing oil and gas fields
- Norman Wells oil field (central Mackenzie Valley) - produced 269.8 million barrels) over 22 years of production as of 2012
- Ikhil field (Mackenzie Delta) - produced 7.3 billion cubic feet of natural gas over 14 years of production as of 2012
- Cameron Hills field: (southwest of Hay River) - has produced 32.7 billion cubic feet of natural gas and 2.5 million barrels of oil over 11 years of production as of 2012.
Sources: Department of Investment, Tourism and Trade, Department of Environment and Natural Resources, NWT Bureau of Statistics, Aboriginal Affairs and Northern Development Canada
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