EDITORIAL — One step closer

Ronald Irwin, minister of Indian Affairs and Northern Development, said it best: “I can’t see a downside, if we do it properly.”

We agree with the minister’s view that the Northwest Territories diamond project will add plenty of sparkle to Canada’s economy and, at the same time, serve as a model for resource development in environmentally sensitive areas subject to native land claims.

The minister’s remarks were made the day the federal government announced it had accepted the recommendations of the environmental assessment review panel with respect to the project. As a result, the project’s owners can proceed with work required to obtain permits and licences for the construction and operation of this country’s first diamond mine.

The panel reviewing the mining proposal had previously recommended it be allowed to move forward, subject to 29 recommendations. The government accepted the panel’s report, though final approval by cabinet will be subject to satisfactory progress being made in two areas: the environmental agreement with government, and impact benefit agreements with aboriginal groups affected by the project. Work to resolve other issues, such as land claims and a regional environmental study, will be ongoing.

While work remains to be done, the owners of the diamond project are clearly jubilant. So are most residents of the Northwest Territories, for whom the economic benefits will be considerable.

Unemployment is high in the north, and the diamond project will bring high-paying jobs — 830 during the operational phase, plus an estimated 640 indirect jobs. Moreover, the region will benefit from the purchase of goods and services by the mine, as well as from tax and royalty revenues paid to the federal and territorial governments.

BHP estimates that of the jobs filled by northerners, half will be held by aboriginal people. This is expected to result in a 10% drop in the unemployment rate in aboriginal communities in the Northwest Territories, to 30% from 40%.

The project is also expected to increase Canada’s gross domestic product by $6.2 billion over the projected 25-year life of the mine, and this may be extended as new discoveries are found.

Diamond mining will affect only a fraction of a percentage of the total land mass of the Territories. But its economic importance will be immense, which is important, given that the federal government has been steadily reducing its transfers to the region.

This reduction is felt keenly, as government has been the mainstay of the Northwest Territories’ economy for the past 25 years. In recent years, the federal government, through a formula financing agreement, provided 80% of the territorial revenue of $1.2 billion per year. Last year, those transfer payments were reduced by $60 million per year, and more cuts have taken place since then. Northerners know they must look to the private sector to boost their economic prospects. They know that government can no longer meet their needs and satisfy their aspirations.

The diamond project offers northerners increased self-sufficiency. Over time, this should lead to increased self-determination. That does not mean northerners advocate a mine at any cost. We, too, are aware of the need to ensure that the mine is built and operated to the highest environmental standards. We also believe that northerners and aboriginals should share in the mine’s economic benefits.

But, unlike the naysayers, we believe it can — and will — be done.