The federal government is examining how it might provide help for the North's largest private employer SA国际影视传媒� the mining sector.
photo courtesy of Agnico Eagle
SA国际影视传媒淲e want to make sure that the industry is healthy so that people who live in the North can continue to work at the mines and raise their families in the North,SA国际影视传媒� said Northern Affairs Minister Dan Vandal, who met with representatives of the mining industry last week. SA国际影视传媒淚'm working with the minister of Nature Resources, Seamus O'Regan, on the issue. Let's face it, they are a huge employer in the North.SA国际影视传媒�
The industry is reeling due to many SA国际影视传媒渃osts pressuresSA国际影视传媒� from the Covid-19 pandemic and an injection of financial aid is needed, according to Tom Hoefer, executive director of the NWT and Nunavut Chamber of Mines.
Production at the mines has fallen, meaning declining revenues, he noted, adding that the NWT's Ekati diamond mine is on temporary care and maintenance status so it's not producing at all.
SA国际影视传媒淔or diamonds, (it's a) double whammy because diamond markets are even worse now under Covid effects, meaning less diamond revenues,SA国际影视传媒� Hoefer said. SA国际影视传媒淩emember, NWT was (the) third largest global producer of diamonds so this will have big effects.SA国际影视传媒�
Southern workers, who make up a large portion of the workforce at Northern mines, are being flown in at greater expense on chartered planes because of commercial flight restrictions during the pandemic.
Testing of employees for the virus and paying Nunavut workers to stay home to reduce risk of spread are among other new costs.
Some mining companies are slashing capital projects to rein in expenditures, Hoefer said.
SA国际影视传媒淗ow will they make this up in future?SA国际影视传媒� he asked. SA国际影视传媒淚n addition, as they cut these capital projects, they cut project income for Northern and Indigenous businesses that were going to do the work, passing on the revenue pain to those companies who also feel government Covid measures are not helping with this lost revenue.SA国际影视传媒�
He also pointed out that operating costs in the North are already inflated compared to the south -- the pandemic has only exacerbated that factor.
SA国际影视传媒淭he minerals industry is going to need a lot of help coming out of this healthy at the other end of Covid,SA国际影视传媒� Hoefer predicted.
Deborah Harron-Thomson, manager of communications, marketing and stakeholder relations for Baffinland Iron Mines, acknowledged that Baffinland is SA国际影视传媒渁ctively seeking government support to help offset the additional costs we are incurring as a result of Covid-19 and related mitigation measures,SA国际影视传媒� but on Tuesday she wouldn't specify what aid exactly the company has requested.
