Agnico Eagle backs project to slash diesel use in Nunavut mining

Nukik and Agnico Eagle Mines have signed a memorandum of understanding (MOU) to advance the Kivalliq hydro-fibre link (KHFL) project. This infrastructure initiative aims to bring clean energy and high-speed internet to Nunavut's Kivalliq region, with significant implications for the mining industry.

The KHFL project will connect Nunavut to Manitoba's hydroelectric and fiber-optic networks, creating a backbone for economic growth in the region. For the mining sector, this development promises to replace diesel dependency with clean energy, potentially reducing operational costs and environmental impact.

"The Kivalliq Hydro-Fibre Link represents more than just infrastructure — it is a pathway to economic self-determination, clean energy, and lasting prosperity for Kivallirmiut," Kono Tattuinee, president of the Kivalliq Inuit Association and majority owner of Nukik Corporation, said.

The partnership between Nukik Corporation and Agnico Eagle Mines, a major player in Nunavut's mining industry, underscores the project's significance for the sector.

"The KHFL project has the potential to deliver clean, renewable power to communities and businesses, while removing barriers to expanding energy capacity to meet the needs of a growing mining industry and a broader northern economy," Agnico Eagle's president and CEO, Ammar Al-Joundi, stated.

Currently, the Kivalliq region consumes approximately 138 million liters of diesel annually. The KHFL project aims to drastically reduce this reliance on imported fuel, offering a more sustainable and cost-effective energy solution for mining operations in the area.

"The KHFL will drastically reduce diesel consumption, enable clean economic growth, and attract new investment by establishing strategic and multi-purpose infrastructure that is Canadian-built, domestically owned, and Inuit-led," Anne-Raphaelle Audouin, CEO of Nukik Corporation, highlighted the project's broader impacts.

The MOU outlines plans for technical studies, commercial discussions, and capacity-building initiatives to support the KHFL project's development. This collaboration between an Inuit-owned corporation and a major mining company represents a significant step towards sustainable mining practices and economic development in Nunavut's Kivalliq region.

For the mining industry, the KHFL project promises to address key challenges of operating in remote northern locations, potentially opening up new opportunities for exploration and development while aligning with growing demands for sustainable resource extraction.