Mining & Infrastructure in the Kitikmeot – Making the Most of Opportunities – Tom Hoefer, Kitikmeot Trade Show Cambridge Bay, February 15, 2011
Kitikmeot opportunities – what’s possible • 8 mining projects in next 10 years • 3 distinct ports & more than 600 km of all weather roads • Training & jobs • Business opp’s • New revenues • Community benefits 102 km Meadowbank road 2
Compare: NWT Diamond Mines 19 95 1998 20 01 2 004 200 7 2 010 201 3 20 16 2 019 20 22 2 025 202 8 Ekati Diavik Snap Lake • 3 diamond mines in 10 years • Significant benefits achieved (to date) – 13,000 person years of northern employment – half Aboriginal – $8 billion in northern business, half Aboriginal – $ millions in scholarships, IBAs, community donations & contributions, – plus significant taxes and royalties 3
Diamonds now hugely important to NWT NWT, Nunavut and Yukon Mining Production $2,500 NWT Nunavut $2,000 Yukon $C Millions $1,500 $1,000 $500 $0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 • The contribution of diamond mining to the NWT economy is significant. 4
Kitikmeot mining – what is possible 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 Jericho Izok High Lake Lupin & Ulu Gold Doris North Hope Bay Goose Hackett • NOTE: PROJECTIONS ARE SUBJECT TO CHANGE. 5
Job opportunities 3,500 Hackett Goose 3,000 Hope Bay Doris North 2,500 Lupin & Ulu Gold High Lake 2,000 # of Jobs Izok Jericho 1,500 1,000 500 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 • Challenge: Diamonds achieved about 60% northern employment and 32% Aboriginal employment. What 6 could the Kitikmeot do?
Business opportunities $1,200 Hackett Goose $1,000 Hope Bay Doris North Lupin & Ulu Gold High Lake $800 Izok illions Jericho in m $600 $C $400 $200 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 • Challenge: Diamonds achieved 70% northern purchasing and half Aboriginal. What could the Kitikmeot do? 7
Cheaper shipping opportunities • New east / west shipping adds capacity, reduces costs to mines and to communities too. 8
600 km of roads & port opportunities • What other opportunities can this offer? 9 Construction, maintenance, operations?
Communications opportunities • Diamond mines partnered with NWTel for reliable 54km communications capacity Ekati • Microwave towers now 68km 42km extend half way from Yellowknife to the coast 55km Courageous Lake Diavik • Could Kitikmeot mines partner, and link in? 63km 54km Mackay Lake • AND benefit communities? 62km Brown Lake 22km Paterson Lake Snap Lake Prelude Lake Yellowknife 10
Other opportunities • Various revenues – Government savings in reduced income support costs – Government revenues in income, corporate, fuel taxes, etc. – Royalties – government and Inuit • Community contributions – Scholarships – Donations & sponsorships 11
Tremendous opportunities … BUT • We must identify and address challenges – Markets favourable now, but can change – Regulatory capacity inadequate – Community readiness to maximize socio-economic opportunities – Community acceptance of development – Infrastructure hurdles 12
Strength in working together • To successfully develop 8 mining projects will require – Vision – Coordination – Cooperation not competition – Communication – Strengthened capacity – Human and financial resources • Stakeholder cooperation – Industry, GN, Canada, NTI, KIA, others 13
Recommend: Creation of Kitikmeot Mineral Development Partnership • 8 mines in 10 years is a huge task • Proposal: Create a Kitikmeot Mineral Development Partnership – Unique, regional development planning partnership – Senior level representation – Members: Industry, GN, Canada, NTI, KIA, others 14
Kitikmeot Mineral Development Agreement • Craft a Kitikmeot Mineral Development Agreement that will: – Confirm commitment and participation – Align and bind parties to clear, agreed upon objectives – Demonstrate trust to facilitate cooperation – Magnify power and influence greater than any one party’s – Demonstrate a powerhouse that can get the job done – Maximize positive outcomes for each party 15
Create legacy through partnership • By working together in a coordinated and cooperative approach EARLY, we can make the most of mining development opportunities in the Kitikmeot • We can create the best legacy – a future of healthy communities and a more self-reliant Nunavut 16
Koana Photo credit: Diavik Diamond Mine 17
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