by Tom Hoefer, executive director of the NWT & Nunavut Chamber of Mines
ItSA国际影视传媒檚 virtually impossible to shift the opinions of someone who opposes mining, but to those with an open mind, let me provide some feedback to Bob BromleySA国际影视传媒檚 critique of my recent guest comment.
In regards to his statement on, SA国际影视传媒�... the steep cost of mine site clean-ups to taxpayers,SA国际影视传媒� nobody wants another Giant, a historical mine with no reclamation security. Thankfully, times and rules have changed. TodaySA国际影视传媒檚 modern mines provide hundreds of millions of dollars in security to ensure reclamation at no cost to taxpayers should a bankruptcy occur.
SA国际影视传媒�... most mine employees reside ... outside the NWT.SA国际影视传媒� ThatSA国际影视传媒檚 true. Approximately 52 per cent live in the south. Attracting more Northerners into mining careers can help turn this around. To help, our chamber has launched a miningnorthworks.com website. Check it out! Perhaps now MLA OSA国际影视传媒橰eilly and Mr. Bromley can help us rally for earth sciences in the school curriculum and the polytechnic.
SA国际影视传媒淪A国际影视传媒� leading researchers have termed our resource revenue and royalty rates as being charitable." Sadly, the leading researcher MLA OSA国际影视传媒橰eilly quoted overlooked $38 million of DiavikSA国际影视传媒檚 royalties in his analysis. However, he correctly observed that the mine's high cost of building winter roads and generating expensive diesel power SA国际影视传媒渟hrinks royalty and corporate income tax payments.SA国际影视传媒�
This leads one to conclude that government investment in the road through the Slave Geological Province Corridor and Taltson hydropower will help increase royalties. ThatSA国际影视传媒檚 one reason we support the GNWT in advancing this infrastructure.
SA国际影视传媒淪A国际影视传媒� that all the infrastructure mentioned was largely paid for by taxpayer subsidies.SA国际影视传媒� History doesnSA国际影视传媒檛 bear this out. Government paying for infrastructure is an investment, like the bank paying for your house. ItSA国际影视传媒檚 not a subsidy since you pay the bank back over time. Pine Point is a good example. Over its life, the mine paid off the governmentSA国际影视传媒檚 costs of the Taltson hydropower facility, and even the railway. Both are still serving Northerners long after the mine closed. Thank mining for helping make them possible.
Blaming mining for SA国际影视传媒渁 failure to diversify our Northern economySA国际影视传媒� is a stretch. Government has, and continues to try to diversify the economy, today with farming, fishing, furs and tourism. Any failures to diversify the economy are more likely the high costs of doing business in the North, something our industry also suffers from.
When Mr. Bromley blames mining for creating SA国际影视传媒渁 vulnerable economy susceptible to the volatile commodities market,SA国际影视传媒� he ignores the fact that even a diversified economy with farming, fishing, tourism, and trapping is also susceptible to the markets.
Frankly, ISA国际影视传媒檓 gobsmacked when Mr. Bromley and MLA OSA国际影视传媒橰eilly blithely observe that vice taxes from alcohol and tobacco are higher than mining royalties. I hope that they are focusing their attention on helping reduce those taxes.
Finally, while ISA国际影视传媒檓 not a petroleum expert, when Mr. Bromley criticizes the governmentSA国际影视传媒檚 intent to develop natural gas because SA国际影视传媒淪A国际影视传媒� most of our natural gas today derives from fracking,SA国际影视传媒� I would observe that the natural gas the premier and Inuvialuit are promoting is not fracked gas, rather it is conventional gas from the rich Beaufort Delta fields. With greenhouse gas emissions lower than coal or even diesel, this conventional gas could help arrest climate change.
I know I cannot change someoneSA国际影视传媒檚 entrenched opposition to mining, but I can try to provide correct information to those looking to make informed decisions. That is my job.
There are over 1,000 mine workers living in Yellowknife, and many businesses that rely on mining. Many are MLA OSA国际影视传媒橰eillySA国际影视传媒檚 constituents. ISA国际影视传媒檓 sure they are hoping he looks after their needs when he speaks about the future of mining. I suspect other candidates will.
