The Tibbitt to Contwoyto Winter Road Joint Venture partners spend about $22 million annually to build the ice road to the diamond mines. The GNWT is now looking at developing a 150-kilometre section of the road into a permanent all weather route. - photo courtesy of the Tibbitt to Contwoyto Winter Road Joint Venture |
Proposal to extend all-season road
Finance minister says debt ceiling needs to be raised to pay for route to diamond mines
John McFadden
Northern News Services
Published Wednesday, February 4, 2015
SOMBA K'E/YELLOWKNIFE
Any plan to turn the first 150 kilometres of the 400-kilometre Tibbitt to Contwoyto winter road to the Ekati, Diavik and Snap Lake diamond mines into an all-season road would be contingent on whether the territorial government gets an increase in its debt ceiling.
That's according to Finance Minister Michael Miltenberger.
"This is a project similar to the Mackenzie Valley Highway ... that we see as pieces of critical economic infrastructure that we
would need to invest in," he said. The road is not in this year's capital budget, he said, which he is set to deliver Thursday when the legislative assembly reconvenes.
"The reason why we need our borrowing limit bumped up is so that we can make critical infrastructure investments."
The Government of the Northwest Territories applied to increase its borrowing limit from the current $800 million to $1.8 billion more than a year ago. The answer to the $1 billion question had been expected last spring, but was delayed by the resignation of former federal finance minister Jim Flaherty.
Making the road navigable year round would directly benefit the diamond mines, said Miltenberger, but would also be a critical transportation link in the North.
He said it could be the first leg on a road that could potentially link Yellowknife north to Bathurst Inlet, Nunavut. Miltenberger estimates the cost of turning the first leg of the road into an all-season road would cost about $300 million. He thinks construction on it would begin in three to four years and added his early rough estimation on extending the road to the Nunavut border would cost about $300 million more.
"We've had preliminary discussions with Nunavut and the federal government would be greatly interested in that type of nation building infrastructure," he said.
Miltenberger said that the toughest piece of the road to build would be from the Ingram Trail north to MacKay Lake.
"It's the most difficult path with lots of water, but the going after that would be not quite as difficult."
One of the challenges in making an ice road into an all-weather road is finding a route around the lakes. Trucks currently use ice crossings when the ice is thick enough to do so.
Miltenberger said officials are looking at two potential routes around the lakes that would keep vehicles on the ground and take ice crossings out of the equation.
"Back in 2006, when we had an unseasonably warm winter, the winter roads went out early and the mines spent about $100 million to fly in their critical supplies."
The proposed road would be a great asset to the mines, said Miltenberger, and eliminate the logistical and financial challenges they would face if the winter road had to be closed early.
The idea of an all season road to the diamond mines has been on his radar for about 18 months after a meeting with Dominion Diamonds head Robert Gannicott.
The CEO expressed his concern about the mines having to spend about $22 million every year to build and maintain a road that melts every spring.
Miltenberger said Gannicott seemed very interested in working with the territorial government on this project.
"There is an interest and we are having discussions as we look at the business case and the technical case and routes as well as our borrowing limit."
He said the diamond mines would still have to use the winter road until the new one is built. But Miltenberger expects that they would contribute to this project from the money they save but not having to contribute to the winter road construction every year.
Miltenberger said that NWT residents need not worry about their tax dollars going to help the already profitable diamond mines.
An all-season road would extend the life of the mines, something he said everyone in the NWT should be able to get behind.
"That's about 1,200 jobs and $400 million a year per mine. The mines contribute about $1.7 billion a year, or almost half the NWT's gross domestic product which is a benefit to every man, woman and child in the NWT."
Miltenberger said that the road would also benefit hunters and the has the potential to attract tourists as well.
