Unearthing Nunavut s Resources The Size of the Prize Presentation to the Nunavut Mining Symposium. Elizabeth Kingston April 16, 2015

Transcription

1 Unearthing Nunavut s Resources The Size of the Prize Presentation to the Nunavut Mining Symposium Elizabeth Kingston April 16, 2015

2 Overview Today s active and growing mining industry Our place in the world identifying the key opportunities and benefits before us Uncovering exploration trends in the future where are we going? Active mineral potential including gold, base metals, uranium, and diamonds Challenges and solutions in a turbulent marketplace 2

3 Role of the Chamber of Mines in Nunavut Monitor Nunavut developments and issues relevant to industry Provide information to industry, Nunavummiut and others on exploration and mining in Nunavut Provide input to government on policy and legislation Community outreach Establishment of Nunavut office

4 The North: how do we compare? 1/3 of Canada Less than 75k residents Arctic conditions & climate Virtually undeveloped with little infrastructure High costs Least mapped region of Canada Most heavily subsidized region of Canada Economic options are few & community opportunities are needed Non-renewable resources are the economic advantage Area of NWT + Nunavut = Norway, Sweden, Finland, Denmark, France, Germany, Poland, Spain, Portugal, Italy combined. 4

5 Mining is the largest private sector contributor in Nunavut One mine in Nunavut already makes largest private sector economic contribution And this does not include exploration Exploration and mining also contribute to other sectors, e.g. real estate, transportation and construction Health 5% Education 7% NUNAVUT GDP (2013) Other 25% Public Admin 22% Mining 18% Real Estate 11% Construction 12% 5

6 Our industry creates significant benefits Mining is the largest employer of Aboriginal people Mining in Canada is projected to need 120,000 workers by 2024 * Nunavut Mining Jobs needed at peak (overlap) over 8000 Total person years employment nearly 100,000 Number of Workers Potential New Nunavut Mine Jobs (construction + operations) 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, * Mining Industry Human Resource Council,

7 We re doing pretty well compared to Canada Nunavut has the highest Aboriginal approval rating for mining in Canada Why? Because of high Aboriginal participation Aboriginal Canadians and Their Support for the Mining Industry: The Reality, Challenges and Solutions: PR Associates, 2014: 7

8 Mining helping Inuit businesses grow Selection of Inuit companies now able to support the mining & exploration industry in Nunavut Peter s Expediting Jago Services Qillaq Innovations Toromont Arctic Kitnuna Kivalliq Expediting & Storage Oomilik Enterprises Akhaliak Consulting Kitikmeot Blasting Services Kitikmeot Caterers Ltd. Baker Lake Contracting & Supply Forest North Aviation & Logistics Eskimo Point Lumber & Supply M & T Enterprises Kiluk Ltd. Kusugak Consulting Qikiqtani Industry Ltd. Nuna Group of Companies Kitikmeot Cementation Mining & Development Medic North Nunavut 8

9 Value of Mineral Production, 2014(p) NWT, Nunavut and Yukon Mining Production $2,500 $2,000 NWT Nunavut Yukon $1,667 $2,112 $1,790 $1,638 $1,831 $2,123 $2,045 $2,140 $1,725 $1, $1,886 $C Millions $1,500 $1,000 $653 $682 $779 $874 $1,507 $614 $ $642 $500 $349 $385 $321 $272 $317 $427 $ $35 $35 $4 $32 $35 $13 $ (p) Natural Resources Canada March 2015 NRCan March

10 Northern Canada Mineral Exploration Exploration & Deposit Appraisal Expenditures $600 $C Millions $500 $400 $300 $200 $100 $0 NWT Nunavut Yukon NRCan March 2015 Notes: Expenditures reported include on-mine-site and off-mine-site activities, field work, overhead costs, engineering, economic and pre- or production feasibility studies, environment, and land access costs figures are final estimates; 2014 figures are revised spending intentions as of March

11 Northern Canada Mineral Exploration Nunavut Exploration vs Deposit Appraisal $C millions $600 $500 $400 $300 $200 $100 $0 NU Appraisal NU Exploration $200.4 $209.5 $286.4 $102.3 $136.7 $335.3 $80.4 $213.0 $61.2 $146.2 $154.4 $107.2 $120.9 $ Source: Natural Resources Canada, January 2015 Revised Intentions spending to Sept 2014 See: 11

12 Nunavut Exploration Share Nunavut as % of Total Canadian Mineral Exploration 20 % of Total Canadian Spending NRCan March

13 Northern Canada Mineral Exploration By Commodity Sought in 2015 NWT & Nunavut Exploration by Commodity Sought 2015 $160 $C millions $140 $120 $100 $80 $60 $126.5 Nunavut NWT $40 $24.0 $20 $0 $30.0 $3.1 $3.8 $8.3 $8.2 $12.5 $1.5 Base Metals Precious Metals Iron Uranium Diamonds Other Source: Natural Resources Canada 13

14 In 2014, 35 active projects 4 advanced 13 Gold 8 Base Metals 5 Uranium 7 Diamonds 1 Iron 1 Nickel Several properties multi-commodity 14

15 What can we do together Some thoughts Important to tell the world that NUNAVUT enthusiastically welcomes mining and exploration investment Publicize/revise/ implement Nunavut Mining Strategy Responsible mineral development is critical for the economic well-being of Nunavut To create the conditions for a strong and sustainable minerals industry that contributes to a high and sustainable quality of life for all Nunavummiut (p. 7) Nunavut s future economic viability, and the improvement of the quality of life for Nunavummiut will depend on the development of these known and yet to be discovered (mineral) resources (p. 44) March,

16 Other opportunities for collaboration Important to address costs and certainty Lobby for Regulatory Improvements Champion exploration & mining incentives and limit cost burdens on exploration activity Create certainty of land access through a completed land use plan Bring NUPPAA into force Important to message and market Nunavut 16

17 Conclusion Mining is the North s economic strength We have very high mineral potential We have world class mines and world class opportunities Actions are underway to support investment certainty and strengthen our number one industry Providing infrastructure to support mining will help communities Success requires partnership and public support of our industry 17