Conference Board: bright future for northern mining

The following is excerpted from the third chapter of the Conference Board of Canada’s report: Mapping the economic potential of Canada’s north. To view the full report visit www.conferenceboard.ca.

There are several well-developed and emerging mining regions in Canada’s north. Currently, there are three large, successful diamond mines in the Northwest Territories, which have created a billion dollar industry; and the Sudbury region in northern Ontario has provided the province with a lot of wealth and employment since the development of a mining settlement in the late 1800s.

In the future, we expect Yukon, Nunavut, northern Ontario, northern British Columbia, and northern Saskatchewan to see substantial growth in their metal and non-metallic mineral mining industries. They all hold large untapped resources that will experience high global demand over the long term.

Opening a single mine in a very remote area of the north has a major impact on local economies and people, compared with opening a mine in a more established mining region. Economic growth in Nunavut is expected to experience double-digit growth this year, thanks to the opening of the territory’s only mine, Meadowbank.

Industries that support mining development and operations, including construction, utilities, transportation, communications and lodging, are either developing or expanding. The local communities — Baker Lake in particular — will continue to experience strong economic and employment growth which can lead to an improvement in the quality of life for residents.

Global demand for Canada’s metal and non- metallic minerals is expected to be strong over the medium term. The global economic recovery is putting upward pressure on commodity prices, suddenly making mines in remote northern areas viable.

A few hot mining spots will emerge in the north. The “Ring of Fire” in northern Ontario will become a big player in chromite mining. Northern Saskatchewan will start producing several gold and uranium mines in the near future.

The three territories’ metal mining industries have begun an expansion; a number of mines are expected to begin production in the next 10 years. Northern British Columbia will benefit from a new transmission line to its northwestern corner, which will enable several mines to begin production. Northern Manitoba will host at least two new metal mines in the near future; Labrador will see a boost in iron ore production from several mines.

The remoteness of some mines will pose a challenge. The viability of many mines in Nunavut depends directly on transportation infrastructure.

Mineral development projects in the territory usually include building roads, railways, airstrips, and/or ports; these substantial costs can keep a resource deposit in the ground.

In northern British Columbia, the infrastructure concerns are primarily energy-related. The viability of large resource deposits in the northwest is dependent on ample, competitively priced power.

Development of mining resources in any area can be difficult, and Canada’s northern regions are no exception. There is much work required from both project proponents and the respective governing agencies in each region to ensure that mine development takes place in a manner that is environmentally responsible and provides economic rewards to residents, benefits to local governments, and also monetary benefits to project proponents. Northern Canada’s mining future is buoyed by the existence of a stable political environment and the existence of large resource deposits and potential. This, coupled with strong global demand and high mineral prices, will result in a strong mining future for northern Canada.