NUNAVUT
The chamber of mines and the government of Nunavut have different ideas of how well the mining sector is being promoted.

Tom Hoefer, executive director of the NWT & Nunavut Chamber of Mines, says Nunavut has high mining potential. He just hopes the government can promote that fact to investors. - Stewart Burnett/NNSL Photo

Nunavut fell from 11th to 25th worldwide in the Fraser Institute's annual survey of mining companies released last week.

The survey assesses how mineral endowments and public policy affect exploration investment worldwide.

Complaints listed for Nunavut included regulatory hurdles, compulsory labour hire of indigenous population and lack of infrastructure.

"I was surprised to see the way their geological potential had fallen, because I've always portrayed it as being equally as potentially rich as the Northwest Territories," said Tom Hoefer, executive director with the NWT & Nunavut Chamber of Mines. "We're both large, we both have varied geology and we're under explored."

He thinks it's a perception issue.

"This is a perception survey, so people aren't getting messages about what Nunavut's got to offer," he said.

One of the reasons for that, said Hoefer, is the Nunavut government has "gone quiet" in the last few years.

Nunavut had a mineral development strategy put in place in 2007 that ran for five years, and Hoefer claims the government hasn't done anything to rejuvenate it.

That counters what Bernie MacIsaac, assistant deputy minister of economic development with Nunavut's department of economic development and transportation, thinks.

"It might be a little dated," admitted MacIsaac about the government's mineral development strategy.

He said the government's Sivumut Abluqta mandate talks about responsible resource development.

"We're updating our own mineral development strategy to align with that mandate," said MacIsaac. "There's a lot of common ground there already."

He named the Industry Government Oversight Committee and an internal working group for investor confidence as ways the government is working to support the mining sector.

"There are a number of these efforts that acknowledge this is a collective issue and we should all be dealing with it," said MacIsaac.

He said that the market dictates a lot of the investment climate.

"Maybe there are better places in the world to invest when times are tough," said MacIsaac. "But when times are good, the mineral potential of Nunavut ranks very highly."

Hoefer said companies trying to raise money in the marketplace could be scared off of Nunavut by reading a survey like the Fraser Institute's.

"If investors have read these kinds of surveys, they might be a little bit reluctant to part with their money because they get nervous when they read that," said Hoefer. "That's one of the reasons you want to be out there marketing all the time."

MacIsaac said one of the major roles the government can play is setting the tone.

"I think through our new mandate, we're setting the right tone," he said. "We're encouraging responsible development but the development has to be for the benefit of the territory, the people and the communities within the territory."

Asked if the term "responsible development" might scare off some investors, MacIsaac said so be it.

"What we mean by responsible development is that the environment is respected, the hopes and aspirations and the wishes of people in the communities are respected," he said. "If people don't want to respect the environment or that scares them off ... they're probably better off to invest elsewhere."

In 1998, Nunavut had only $30 million in exploration activity. That number bounced as high as $500 million and the government is currently projecting $240 million for 2015.

"That ain't chicken feed," said MacIsaac. "I think we've made steady progress over the years in promoting Nunavut as a place to invest and I think we're starting to see the results of that."