VANCOUVER (miningweekly.com) – A lack of new mining projects in the development pipeline of Canada’s Northwest Territories (NT) is threatening to derail the region’s economic growth outlook, the latest ‘Territorial Outlook’ by The Conference Board of Canada (CBoC) has found.
The independent Ottawa-headquartered think tank points out that the NT has a “more muted” outlook compared with its counterparts, as fewer developments in mining and declining diamond output are expected to weigh on economic prospects.
In contrast, the board expects the Yukon and Nunavut Territories of Canada to benefit from new mining investment in next two years, giving the respective domestic economies a much-needed kick-start.
The CBoC’s ‘Territorial Outlook’ has forecasted the NT’s real gross domestic product growth (GDP) to fall 2.9% in 2018. This development is set against a backdrop of all three currently producing NT diamond mines facing declining production profiles and complete closure by 2035, bar any new discoveries.
The board expects that the two metals mines scheduled to be completed in the NT during the early 2020s will not be enough to remedy the lack of new mine development investment announced to date.