Feds, Yukon gov’t team to fund improved roads to mines

The Yukon mining community got some good news on Sept. 2 with the announcement by the federal and Yukon governments that they would jointly fund a $360-million program dubbed the Yukon Resource Gateway project to improve access to mineral projects in the territory.

The governments say the initiative is designed to “improve road access in two mineral-rich areas: the Dawson Range in central Yukon and the Nahanni Range Road in southeastern Yukon,” and it will encompass the upgrading of over 650 km of roads, and the building or replacement of numerous bridges, culverts and stream crossings.

In the Dawson Range, four public road systems will be upgraded, while improvement to the Nahanni Range Road will include upgrades from its junction with the Campbell Highway to the border between Yukon and the Northwest Territories.

Prime Minister Justin Trudeau joined Yukon Premier Sandy Silver and Yukon Member of Parliament Larry Bagnell in Whitehorse to make the funding announcement, during Trudeau’s first trip to the territory as prime minister.

The Prime Minister said in a prepared statement that “modern infrastructure is key to developing and properly managing the incredible natural resources we have at our fingertips. By providing easier access to important resources across Yukon, the Yukon Resource Gateway Project will help create good, middle-class jobs, promote long-term economic prosperity and support a strong, sustainable North.

“This is a big announcement and I’m excited about the impact it’s going to have in the coming months and coming years,” Trudeau said at the event, describing the project as “an investment in Yukon’s people.”

Premier Silver added that Resource Gateway is “one of the most significant projects ever undertaken in this territory and will have an incredibly positive impact on the Yukon economy … With this commitment, we will continue working with First Nations to complete the project agreements. First Nation agreement is essential to the continuation of the project and we look forward to working in partnership with them on this milestone development.”

The federal government has committed to spend up to $247.3 million on the Yukon Resource Gateway project, with the Yukon government contributing up to $112.8 million once project agreements are struck with affected First Nations, and environmental and socioeconomic reviews are completed.

As a source of funds, the federal government will tap into its New Building Canada Fund — specifically the National Infrastructure Component. The Canadian government has earmarked more than $180 billion to be spent over 12 years in public transit projects, green infrastructure, social infrastructure, trade and transportation routes, and Canada’s rural and northern communities.

The government says more than $10.1 billion of this funding will support trade and transportation projects, including $5 billion available for investment through the newly established Canada Infrastructure Bank, and that another $4 billion of this funding will support infrastructure improvements in indigenous communities.

The two Yukon mining projects that will be most impacted by the new road spending are Goldcorp’s Coffee gold project and Western Copper and Gold’s Casino copper-gold project. The Mining Association of Canada lauded the funding announcement and noted that the two projects will “contribute billions in new investment in the territory, and will create thousands of direct and indirect jobs.”

During an interview with Matthew Keevil on the Northern Miner podcast, Yukon Mining Alliance chair and president and CEO of Western Copper and Gold Paul West-Sells noted that the Yukon Resource Gateway project had been in the works for at least two years, and that quite a bit of detail has been gathered in terms of costing on the proposed road work, and letters of support were required and obtained from local First Nations.

“My understanding is the next step is to ratify the agreements between the three levels of government — federal, territorial and First Nations — on the specific roads,” West-Sells said. “Once those are complete, the funding is released … then it’s about permitting, and then we’ll be able to turn over some dirt.”