What happens when a mining-based economy runs out of mines? The Northwest Territories risks finding out the hard way but the reason won’t be a lack of mineral resources. For too long, investors have been discouraged from backing territorial exploration.
That’s the message the NWT and Nunavut Chamber of Mines delivered to the legislative assembly in Yellowknife last month. Now the industry group awaits a response, one backed with action, as the newly elected government prepares for its four-year term.
The territory’s three mines, all diamond operations, have passed peak production, facing closures over the coming decade. The NWT hosts only a few advanced projects, none comparing in potential economic clout with the big three. The problem contrasts with the NWT’s two northern neighbours, where the industry continues to thrive.
Projections released in July by the Conference Board of Canada call for Nunavut to lead the country in annual economic expansion, with an average 4.6% up to 2025. “Mining will be the main driver of growth, as Agnico Eagle prepares to bring its Meliadine mine and Amaruq satellite deposit into operation, and Sabina works on its Back River project.”
Yukon “will also experience a boom, with growth of 4.6% this year and 6.2% in 2019,” again thanks to mining. But the NWT faces decline: “Two new metal mines should help offset some of the losses for the mining sector, but not until after 2020,” the Board stated.
For the rest of this article: http://resourceclips.com/2019/11/08/northern-challenge/