COMMENTARY — Poised for growth

The author, David Lovell, is the mayor of Yellowknife, N.W.T. He has written the following article at the request of Keep Mining In Canada, a grassroots campaign designed to increase awareness of the importance of mining in this country.

Next month, Yellowknife will host the Mines Ministers Conference and I will have the privilege of speaking with provincial, territorial and federal politicians about one of the most exciting economic developments this part of Canada has seen for decades — the proposed BHP diamond mine.

The impact this mine will have on the people and economy of the North will be enormous. The mine will employ an estimated 1,000 people during construction, and an average of 830 during operation. By itself, this project has the potential to reduce the territorial unemployment rate by 3%.

Among aboriginal communities, the unemployment rate could drop as much as 10%. The project, in its exploration phase, has already had a significant impact on local economies. To date, BHP has spent more than $50 million in the North. Of that, $20 million has gone to aboriginal-owned or co-owned companies. The mine, with a projected lifespan of 25 years, will contribute $2.5 billion to the gross domestic product of the Northwest Territories and $6.2 billion to the national GDP.

Any economy, such as that of the Northwest Territories, which depends largely on government spending to provide employment and economic opportunity will sooner or later self-destruct. The BHP and other new mining projects provide the basis for a positive future for the Territories. Competitive northern companies will have the opportunity to provide goods and services, and graduates from our schools and colleges will be able to obtain work locally instead of having to seek employment in the south.

After two years of environmental baseline work and three years of community consultation, the federally appointed Environmental Assessment Review Process (EARP) has recommended the BHP project be approved. Final approval must come from the federal Cabinet.

The project, if approved, will be a major boost to the Northwest Territories and to Canada. As Natural Resources Canada has said: “This proposal has the potential to create a considerable amount of beneficial economic activity in the Northwest Territories and in Canada [as a whole]. If approved, it will have a long life (25 years), and its success could lead to additional, sustainable and environmentally acceptable mine development in Canada’s North.”

>From my perspective as mayor of Yellowknife, this project will give our city a healthy increase in employment, prosperity and long-term economic stability. And it will send a clear message to potential investors in Canadian mining that Canada is open for business.