What’s changed in the north

My return to the Chamber of Mines after 15 years offers me the opportunity to see what has and hasn’t changed in northern Canada. If there is one thing that I am more certain of than ever, it is the growing recognition that the North needs mineral development.

In looking at change, let’s look first at what hasn’t.

The odds of discovery still remain high. With over half a dozen geological provinces, the NWT and Nunavut’s breadth of mineral deposit potential is great. Being under-explored further increases the probability of success.

The North remains remote but as one third of Canada, admittedly it’s tough to make a dent in infrastructure. Given industry’s horsepower, it will remain an important driver and contributor to infrastructure for some time to come.

On the people side, northerners need jobs and business opportunities more than ever for community well-being and to strengthen the economy. A babyboom is driving Nunavut’s need, but in both Territories, communities continue to have lower education, lower employment and higher social problems than in southern Canada.

About 10 years ago, an important era of northern gold and zinc mining came to an end when six mines closed within the space of about five years. Thankfully, two determined Canadian geologists – Fipke and Blusson – spared the NWT’s economy when their exploration success launched a significant new diamond mining industry. In 10 years, the mines have contributed a whopping $11 billion to the economy. Most importantly, the Ekati, Diavik and Snap Lake diamond mines set high standards for community inclusion creating $8 billion in northern and Aboriginal business, and more than 15,000 person years of northern employment, half of which is Aboriginal.

Similarly, community benefits are flowing from Nunavut’s new Meadowbank gold mine, which will soon also generate royalties for the Inuit.

Northern mines’ significant Aboriginal contributions are linked to the most profound change affecting the future of our industry in northern Canada, the assertion of Aboriginal rights.

Arising from Canada’s formal recognition in 1982 through Section 35 of the Canadian Constitution, Aboriginal rights today are gaining momentum, strength and clarity through ongoing negotiation and settlement of land claims, changes to legislation, and court actions that change common law.

Land claims drove the creation of a whole new Nunavut territory, and in both territories have brought resource management closer to home. Today developers must not only submit their projects for scrutiny and approval to regional boards, they must demonstrate local value through benefit agreements negotiated with local communities.

In Nunavut, with its single land claim, the transition has been relatively smooth. There is solid investor certainty, resulting in record levels of investment. Despite its location, to investors: Nunavut is hot!

In the NWT, on the other hand, multiple land claims – settled and unsettled – have created complexity in its permitting processes and legislation. Investor certainty has decreased, not helped by recent Aboriginal court cases.

Nevertheless, in looking forward, a betting man would say “prepare for more investment and industry growth.”

Communities across the North do need meaningful opportunities for their people. Industry, in partnership with government and community organizations, is admirably demonstrating it can do it. As a result, Aboriginal people are training to become miners, and are creating new mining businesses. By increasing their stake, communities are becoming important industry participants, subject to its risks and rewards.

Adding to the momentum, the Federal Government has launched an aggressive regulatory improvement initiative, built a new regional economic development agency to support opportunities, and a new project management office to help overcome hurdles. Add in some creative and cooperative industry/community partnerships, and my bets are that we will see certainty and investment increase across the North.

With strong markets, all the ingredients are there for a winning formula, one in which communities, industry, and government benefit from the sustainable development of northern resources.

It’s a change many of us have been hoping for.