The Northwest Territories and Nunavut Chamber of Mines says a sharp drop over the last year in the mineral sector was a bad hit to the NWT, and all levels of government need to help revive the industry.
The chamber was among the organizations that reacted to a report this week from the NWT Bureau of Statistics showing a 10.5 percent drop in gross domestic product (GDP) in 2020 SA国际影视传媒� the worst in Canada.
The report concluded that the mining and oil and gas sectors declined by 30.4 per cent year over year. The slump coincided with an overall $800 million drop in value of in the mineral sector between 2019 and 2020.
Covid-19, the closure of the Ekati diamond mine for most of 2020 and a fire at the Imperial Oil plant in Norman Wells were noted as contributors to the decline.
SA国际影视传媒淭hatSA国际影视传媒檚 an ugly, ugly fall,SA国际影视传媒� Tom Hoefer, the mining chamberSA国际影视传媒檚 executive director, said of the mineral sectorSA国际影视传媒檚 reported figures. SA国际影视传媒淎nd itSA国际影视传媒檚 not just a number. That translated into cancelled projects at mine sites, reduced employment, and that means less money in the communities.
SA国际影视传媒淭hatSA国际影视传媒檚 not the place that the NWT should want to be SA国际影视传媒� the worst in Canada. Not when we have such strong mineral potential, and so many residents and businesses relying on a strong minerals industry,SA国际影视传媒� said Hoefer.
The NWTSA国际影视传媒檚 last place result contrasted with its neighbouring Northern territories, who were the only jurisdictions in Canada to see growth last year. The Yukon came in at 5.2 per cent while NunavutSA国际影视传媒檚 GDP grew by 2.6 per cent.
Hoefer said the other two territories have done well to take advantage of emerging mineral markets; they support strong exploration, especially for gold and iron; and they create the conditions to establish new mines.
SA国际影视传媒淲hen you have new mines opening, and strong market prices, which gold and iron had, itSA国际影视传媒檚 to be expected,SA国际影视传媒� he said of their growth. SA国际影视传媒淭hey were lucky perhaps, with the strong market prices. Unfortunately, we canSA国际影视传媒檛 affect market prices, and when they go down, companies must weather the storm, and/or take steps to reduce costs.SA国际影视传媒�
But the outlook is not all bad for the NWT, according to Hoefer. He said the territory has potential to rebound in the future, both in traditional minerals that have been mined and in new and emerging critical mineral extraction thatSA国际影视传媒檚 growing in demand.
SA国际影视传媒淲e donSA国际影视传媒檛 want to turn our back on our stalwart minerals SA国际影视传媒� gold and diamonds SA国际影视传媒� and we need to encourage more exploration for them, as we still have untapped potential for both,SA国际影视传媒� he said. SA国际影视传媒淭he rising star right now are critical minerals SA国际影视传媒� critical to addressing climate change, to help with wind turbines, electric vehicles, solar panels and a host of other critical technologies.SA国际影视传媒�
Hoefer pointed out that the territory has four advanced projects in Prairie Creek, Pine Point, Nechalacho and NICO that are all promising in their own way.
SA国际影视传媒淣echalacho had a strong summer, becoming CanadaSA国际影视传媒檚 first rare earth element mine, and now we hope to see it grow to be a significant commercial producer of these,SA国际影视传媒� he said.
ItSA国际影视传媒檚 important with such critical minerals to develop a leadership position in the market and strive to take advantage of conditions when they are positive, Hoefer advised.
SA国际影视传媒淲e have a great opportunity emerging now in critical minerals, and it will be important that we move fast and seize a position, before other jurisdictions do,SA国际影视传媒� he said. SA国际影视传媒淭here might even be potential for CanTung to reopen as it produces another critical mineral, tungsten ore.SA国际影视传媒�
Although market conditions canSA国际影视传媒檛 be controlled, all levels of government should support the mineral sector by providing increased resources, training and jobs, and using wisely the tax flows and payments that governments receive, Hoefer contended.
The GNWT Department of Industry Tourism and Investment, the NWT Chamber of Commerce and MP Michael McLeodSA国际影视传媒檚 office did not respond to requests for comment on the GDP report on Nov. 10.
