Is the NWT Really OPEN FOR BUSINESS? Presentation to GNWT Executive Council

Transcription

1 Is the NWT Really OPEN FOR BUSINESS? Presentation to GNWT Executive Council Roundup Meeting, Vancouver January 24, 2017

2 Why it s important: Mines create huge value 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 $1,659 $1,882 $1,791 $C Millions $1,500 $1,000 $653 $682 $779 $874 $1,507 $614 $629 $636 $567 $500 $349 $385 $321 $272 $317 $427 $0 $35 $35 $4 $32 $35 $13 $0 Natural Resources Canada March Diamond value dropped $66 million will fall further with Snap Lake closure Mining is largest private sector contributor to the NWT economy 2

3 We all celebrated much deserved success! Game changing efforts & benefits Over 1,500 trained Northern jobs over 24,000 py s; 50% Aboriginal $12 billion plus in Northern business $5 billion with Aboriginal businesses Significant taxes & royalties Over $100 million to communities A business worthy of sustaining! 3

4 But Mines don t last forever Current NWT Mine Lives (years) Ekati Jay in permitting Diavik Snap Lake? Gahcho Kué? Cantung? Ekati in permitting to add 10+ years life, but smaller mine Diavik firm closure in 7 years We gained Gahcho Kue, but we lost Cantung & Snap Lake 4

5 And not all mines are equal, eg, Jobs 2,000 Mine Employment 1,800 1,600 1,400 1,200 # of Jobs 1, Ekati (current) Diavik Ekati (Jay only) Gahcho Kué NICO Prairie Creek Nechalacho Future mines are smaller & deliver lower government revenues & community benefits Not just Jobs, but Northern & Aboriginal business spending will fall too Many small mines needed to replace impact of just 1 diamond mine We need to find more new mines 5

6 NWT Exploration is not healthy Mineral Exploration Expenditures (millions) $600 $500 $400 $300 NWT Nunavut Yukon Canada $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $200 $1,500 $100 $1,000 $500 $ $0 NRCan September 2016 (Canada data on right) NWT investment out of step with Nunavut, Yukon, Canada, and World NWT missed $1 billion in exploration investment compared to Nunavut and Yukon NWT is a high cost jurisdiction that is perceived to be hostile to mineral investment 6

7 IF the market is turning around, then Diamond market still fragile are we positioned to take advantage of rising commodity prices & capital markets? 7

8 Is the NWT really open for business? Actions needed Actions needed taken Department Infrastructure Investment Complete Tlicho Road funding & construction DOT Slave Province road concept start with all-weather portages Reduce cost pressures Say NO! to regulatory cost recovery ENR Exempt small projects from EA Don t increase quarry rents Reduce costs of New NWT Air Quality Reg s Alternative to northern Carbon Tax Exempt miners from Yellowknife Airport Improvement tax DOT ENR, DAAIR Maximize Access to Land Settle Aboriginal Land Claims remove interim withdrawals DAAIR Advance land use planning maximize land access Limit protections under NWT Conservation Network Planning Address Ottawa demand to protect at least 17% Release the mineral potential land around Thaidene Nene park Support Explorers Double MIP (Mining Incentive Program) ITI Extend the 150% assessment credit ITI Increase Public Awareness, ECE incorporate Mining Matters into Curriculum ECE Support for mining Launch Public Awareness Program ITI, ECE, ENR Support Chamber Public Awareness Project ITI Regional (Aboriginal) Mineral Development Strategies ITI Prospector & mine training funding ITI, ECE Market NWT to investors Unlocking Our Potential messaging ITI Aboriginal participation at conferences ITI, DAAIR Market NWT to Northerners Be vocal in your support for mining All Lands ENR ENR DOT Lands ENR Exec ENR Legend: Red is bad for investment. Green is good and can even be enhanced. Yellow is somewhere between, eg, a commitment or a work in progress for which we don t know the progress, or it s partially done but not concluded, or we need GNWT to help advance with Canada. 8

9 Our #1 Issue: Winning hearts and minds Industry is here at the invitation of governments to do what you cannot do Bring our money and expertise to turn your resources into responsible development, meaningful jobs, northern business, and significant taxes and royalties Industry will continue to have problems in sustaining YOUR needs unless we get more support GNWT must communicate the importance of mining to their constituents Need strong alignment between GNWT, Aboriginal Governments and Communities in support of a strong resource sector for their collective benefit Aboriginal governments must be encouraged to participate Industry and governments need a strong Public Awareness campaign We must start this now if we are to avoid a significant economic setback the signs are already there 9