Mining & Infrastructure in the Kitikmeot Making the Most of Opportunities
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1 Mining & Infrastructure in the Kitikmeot Making the Most of Opportunities Tom Hoefer, Kitikmeot Trade Show Cambridge Bay, February 15, 2011
2 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
3 Compare: NWT Diamond Mines 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
4 Diamonds now hugely important to NWT $2,500 NWT, Nunavut and Yukon Mining Production $C Millions $2,000 $1,500 $1,000 NWT Nunavut Yukon $500 $ The contribution of diamond mining to the NWT economy is significant. 4
5 Kitikmeot mining what is possible Jericho Izok High Lake Lupin & Ulu Gold Doris North Hope Bay Goose Hackett NOTE: PROJECTIONS ARE SUBJECT TO CHANGE. 5
6 Job opportunities 3,500 Hackett # of Jobs 3,000 2,500 2,000 1,500 Goose Hope Bay Doris North Lupin & Ulu Gold High Lake Izok Jericho 1, Challenge: Diamonds achieved about 60% northern employment and 32% Aboriginal employment. What could the Kitikmeot do? 6
7 Business opportunities $C in millions $1,200 $1,000 $800 $600 $400 Hackett Goose Hope Bay Doris North Lupin & Ulu Gold High Lake Izok Jericho $200 $ Challenge: Diamonds achieved 70% northern purchasing and half Aboriginal. What could the Kitikmeot do? 7
8 Cheaper shipping opportunities New east / west shipping adds capacity, reduces costs to mines and to communities too. 8
9 600 km of roads & port opportunities What other opportunities can this offer? Construction, maintenance, operations? 9
10 Communications opportunities Diamond mines partnered with NWTel for reliable communications capacity 54km Microwave towers now extend half way from Yellowknife to the coast Could Kitikmeot mines partner, and link in? 63km 55km 68km Courageous Lake 54km 42km Ekati Diavik AND benefit communities? 62km Mackay Lake 22km Brown Lake Paterson Lake Prelude Lake Snap Lake Yellowknife 10
11 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
12 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
13 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
14 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
15 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
16 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
17 Koana Photo credit: Diavik Diamond Mine 17
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