< PreviousResource Map of Northern Canada Mines currently in production OperationOperatorCommodityFacilities 1 MintoCapstone Mining CorporaƟonCopper, gold, silverOpen-pit/concentrator 2 WolverineYukon Zinc CorporaƟonZinc, silver, copper, lead, goldUnderground/concentrator 3CanTungNorth American Tungsten CorporaƟon Ltd.Tungsten mineUnderground/concentrator 4 Snap LakeDe Beers Canada Inc.Diamond mineUnderground/plant 5 EkaƟDominion Diamond CorporaƟonDiamond mineUnderground/plant 6DiavikDiavik Diamond Mines Inc.Diamond mineUnderground/plant 7 MeadowbankAgnico Eagle Mines Ltd.Gold mineOpen-pit/concentrator BUILDING UP THE NORTH 10 Summer 2015 / www.canadianminingmagazine.comCanadian Mining Magazine 11BUILDING UP THE NORTHCanadian Mining Magazine 13 K nown for its long winters, polar bears and midnight sun, the North is considered to be Canada’s last true fronƟer. It en- compasses approximately 3.5 million desolate square kilo- meters, which is nearly 40 per cent of the country’s total land mass, yet only has 0.3 per cent of the naƟonal populaƟon. The North is finding itself increasingly thrust onto the world stage for many reasons, including its esƟmated vast untapped min- eral and petroleum resources. Global climate change and state-of-the-art mining technologies are conƟnuously working in concert to open up the North’s poten- Ɵal bounty and, because of this, the North has become a hot but- ton issue in terms of naƟonal sovereignty as several arcƟc naƟons posture to claim ownership of the North Pole and thereby stress the importance of maintaining a northern presence. However, knowing there may be an abundance of minerals north of 60 and reaching this mineral wealth are two very different things. Canada’s northern territories lie far from the populated belt of communiƟes hugging the naƟon’s southern border and, as such, experience challenges specific to their relaƟve isolaƟon. A recent industry study Ɵtled Levelling the Playing Field reveals that costs of mineral exploraƟon and mining in Canada’s far north- ern regions are many Ɵmes more expensive than in the more ac- cessible south. With a lack of roads, ports, power grids and nearby communi- Ɵes, Canada’s remote northern mines need to invest heavily into this essenƟal—but expensive—infrastructure themselves. This puts the northern minerals industry at a disadvantage compared to its southern counterparts, thus the need to level the playing field. In this region, with less economic diversificaƟon, mining re- mains a key element of the North’s economy, exceeding $3.4 bil- lion in mining input and employing approximately 16,000 workers as of 2011. In the three territories combined, the mining industry accounts for nearly 15 per cent of the total employment opportu- niƟes available. Expanding in the North By Paul Adair An aerial view of the Diavik Diamond Mine. Photo courtesy of Rio Tinto Diamonds.14 Summer 2015 / www.canadianminingmagazine.com “Unlike other jurisdicƟons where econom- ic opƟons are more plenƟful, mining provides Canada’s north a major economic advantage,” says Tom Hoefer, execuƟve director at the NWT & Nunavut Chamber of Mines. “This is no surprise when you consider that our harsh condiƟons and remoteness limit the opportuniƟes that people take for granted in southern Canada. If we are ever to wean our- selves from government dependence and be- come more self-reliant, we will need to sustain and grow the minerals industry.” Northwest Territories Diamonds have become a game-chang- ing resource for the Northwest Territories. As a centre of North American diamond pro- ducƟon, the Northwest Territories has quickly grown to become the third most valuable pro- ducer of diamonds in the world. Currently, diamond mining in the North- west Territories generates over 3,000 direct jobs, of which around half go to local resi- dents. Northern spending by the three dia- mond mines is approximately $600 million ev- ery year and, over the past decade, the mining industry has spent over $10 billion within the local business economy. Rio Tinto has been producing diamonds in the Northwest Territories for over a decade at its Diavik Diamond Mine operaƟon. Located deep in the remote sub-arcƟc tundra, 300 kilo- metres north of Yellowknife, Diavik experienc- es first-hand many of the infrastructure hur- dles common to working in the North, such as lack of all-season road access and power generaƟon. Companies working a remote sub-arcƟc lo- caƟon need to develop and embrace emerg- ing technologies to help ensure success in this unforgiving environment and also need to strive to become leaders in cold climate tech- nologies to remain compeƟƟve in the global marketplace. As an example, Diavik’s wind farm—oper- aƟng at a 98 per cent availability—has allowed it to reduce its carbon footprint in the region, reduce diesel use by five million litres annually, met their target of providing 10 per cent of its power needs and has proven that renewable energy works in a remote sub-arcƟc locaƟon. “We are extremely remote and off-grid and the lack of infrastructure means our costs are significantly higher than other juris- dicƟons,” says Marc Cameron, president of Diavik Diamond Mines Inc. “We work within these challenges but we must always look for ways to be innovaƟve. Being a successful operator today requires you to conƟnually look for more efficient ways to operate. You cannot simply stand sƟll; you must always be looking forward and anƟcipaƟng those future challenges for your business.” The ability to count on reliable, year-round road access would make a tremendous differ- ence for mining in the North and could poten- Ɵally generate development in smaller proj- ects that would otherwise be unfeasible. Cur- rently, the Northwest Territory’s diamond mines must build seasonal ice roads to keep their mines operaƟng. The annual cost is ap- proximately $20 million. As such, the Northwest Territories’ mining sector could more easily sustain and grow its industry if governments were to aid in provid- ing transportaƟon or were to use financial pol- icies to help offset the higher costs related to the territory’s remoteness; thereby reducing the inflated costs of mining. Alongside a lack of reliable road infrastruc- ture, mines are also expected to supply their own power generaƟon. As energy is well- known to be one of the largest costs for the Canadian Mining Magazine 15 mining industry, access to an electrical grid would be a massive boon for the industry. “We are hopeful that governments will be able to help,” says Hoefer. “Our industry would then be even more successful at creaƟng com- munity benefits with the addiƟon of regional infrastructure that can help us reduce our cost of business and to put us on a more level play- ing field with other jurisdicƟons.” An addiƟonal test for mining compa- nies in the North is accessing a skilled labour base from such a small and widely distribut- ed populaƟon base. With educaƟonal levels falling below the naƟonal average, skilled la- bour must, in large part, be flown in from oth- er provinces. More effort must be made in aƩracƟng greater numbers of local residents into the mining industry as a career choice to help en- sure that more of the economic benefits re- main in the North. To help overcome the skilled labour chal- lenge, the diamond mines in the North have fostered relaƟonships with the NWT Mine Training Society, governments and aborig- inal communiƟes to focus on training and employment. Mining in the Northwest Territories has created significant benefits for communiƟes, parƟcularly aboriginal communiƟes. But in addiƟon to now being the largest private sec- tor employer of indigenous people, the mines have created a brand new aboriginal mining service and supply industry. Then it did nearly $5 billion in business with that industry. Mining has also helped facilitate support training programs for approximately 2,000 ab- original residents. It is because of this high-lev- el of engagement with First NaƟons that a re- cent study by PR Associates highlighted that the Northwest Territories, as well as Nunavut, have ranked at the top in the mining industry for aboriginal approval raƟngs. While land claims over much of the North- west Territories have been seƩled, some sƟll need to be negoƟated. The approval raƟng, as reported by PR Associates, among aboriginal groups in the North will be sure to benefit as the land claim process moves forward. This will help address outstanding land access issues and ease investor uncertain- ty—two of the cornerstones of resource development. The Northwest Territories currently has a supporƟve government in place that appears to understand the vital role mining plays for the economic well-being of the territory. In 2014, the federal government trans- ferred responsibility for lands and non-renew- able resources through devoluƟon to the ter- ritorial government, giving the Northwest Ter- ritories the ability to directly manage not only the land and water within the territory, but its mineral endowment, as well. “DevoluƟon has now taken place, transfer- ring the responsibility for mining, and oil and gas to the Northwest Territories government,” says Hoefer. “The government has created the first ever Northwest Territories Mineral Development Strategy and are taking steps to make the in- vestment climate more certain and aƩracƟve. As an example, a Mining IncenƟve Program is now in place for the first Ɵme, to help in at- tracƟng exploraƟon.” The strength of global markets will certain- ly help with future successes. The devoluƟon of responsibiliƟes for mining to local territorial governments brings the consequences of min- ing closer to home and is seen as a big step to- wards economic self-reliance. It is these tan- gible socio-economic benefits that will beƩer drive addiƟonal mining. It is a challenging Ɵme for the enƟre glob- al mining sector and this is no less different in Canada’s North. With mining being such a crit- ically important foundaƟon of the Northwest Territory’s economy, one can expect some changes in the coming years. Boding well for this, a number of projects are advancing, with new mines in process for the Northwest Territories and opportuniƟes to extend the lives of current mines. The Northwest Territories is close to seeing its fourth diamond mine, Gahcho Kué, which is currently under construcƟon, 300 kilometres northeast of Yellowknife. Gahcho Kué is slated to be the largest new diamond mine under de- velopment globally and holds the potenƟal to be one of Canada’s major high-grade and long- lived diamond mines. In addiƟon, the Prairie Creek base metal, NICO polymetallic, and Nechalacho rare earth deposits have all advanced significantly close to mine construcƟon decisions. Nunavut Nunavut is the largest of Canada’s three territories and is also its most northern, least populated and the naƟon’s newest, having formed in 1999. Nunavut is the least mapped region of Canada and remains the most heavily subsidized jurisdicƟon, receiv- ing the largest per capita government trans- fer payments and grants to help support its economy. Mining has become a cornerstone to the health of Nunavut’s economy as the territo- ry has fewer economic opƟons than its west- ern counterparts, lacking forestry, farming and manufacturing. With Nunavut’s large size and An aerial view of Meadowbank gold mine. Photo courtesy of Agnico Eagle.16 Summer 2015 / www.canadianminingmagazine.com geographical diversity, mining is also its key economic driver. Just as it is in the Northwest Territories, mining is the largest direct contributor to Nunavut’s jobs and development. Indirect- ly, it also contributes to other gross domes- Ɵc product (GDP) contributors, including real estate, construcƟon and transportaƟon infrastructure. As an example of the importance of mining to Nunavut, StaƟsƟcs Canada revised its data for the Nunavut GDP which placed the min- ing sector at 18 per cent for 2013. What is ex- traordinary is that this figure only represents producƟon from one mine, Meadowbank gold mine. It excludes the benefits of exploraƟon and construcƟon at the Mary River iron ore mine, which went into operaƟon last fall. Nor does this 18 per cent include explora- Ɵon expenditures which represent hun- dreds of millions of dollars per year. All-in-all, the mineral industry’s over- all impact to the benefit of Nunavut is ac- tually much larger than reported by StaƟs- Ɵcs Canada. “According to the Mining Industry Hu- man Resource Council, mining in Canada is projected to need 120,000 workers by 2024,” says Liz Kingston, general manager at the Nunavut office of the NWT & Nunavut Chamber of Mines. “Mining’s impact on employment al- ready has provided a huge benefit to Nun- avut, but this is a jurisdicƟon that is experi- encing a baby boom with few job opportu- niƟes in the communiƟes. It is a big problem facing Nunavut right now, but our industry holds great hope to assuage it.” However, in spite of the many posiƟves mining brings to Nunavut, the territory’s minerals industry is currently facing a num- ber of substanƟal investment challenges, as is much of the world. Nunavut is now seeing less exploraƟon money than it did in previous years as oth- er jurisdicƟons compete for fewer dollars, resulƟng in many projects—such as MMG Resources’ Izok Corridor (base metal) proj- ect—curtailing future exploraƟon. “Deposit appraisal spending is trending down globally and, for Canada, the govern- ment forecasts a drop of over three per cent and, unfortunately, Nunavut will not be im- mune to this reality,” says Kingston. “As well, Nunavut is also seeing a lack of grassroots exploraƟon but, hopefully, its rich and diverse geology will help the indus- try rebound in the near future.” The federal government is working along- side territorial governments to aƩract invest- ment through regulatory improvements and support for infrastructure planning, geosci- ence investment, training development and tax incenƟves, but more needs to be done. “We are conƟnuing to work with our government partners to help our industry, and all the players involved, develop and progress,” says Kingston. “We would also like to see the comple- Ɵon of a Nunavut-wide land use plan; one that recognizes the importance of clear and appropriate designated areas which allow for mixed-use and economic development opportuniƟes.” Last year’s opening of the new Baffin- land iron mine will contribute significant- ly to Nunavut’s economy and having sever- al projects advancing through the approval processes bodes well for the near term. The Meliadine, Back River and Hope Bay gold projects and Kiggavik uranium proj- ect are advancing towards producƟon de- cisions. And a number of developing proj- ects, including Three Bluffs (gold), Angilak Canadian Mining Magazine 17 (uranium), Roche Bay (iron), and Chidliak (diamonds), are inching towards the feasi- bility stage and environmental permiƫng processes. “But for long-term sustainability of the mining industry, the drop in early stage explo- raƟon over the past few years is worrisome as its success influence what mines could be built 10 years from now,” says Kingston. “We need to be careful not to become complacent, nor assume advancing proj- ects are slam dunks. The world is a complex place and issues like Chinese spending cuts and wars in the Ukraine and Middle East can influence commodity prices; witness gold and oil over the past year. Other wild cards like reduced investor confidence adds to the challenge.” Having said that, Nunavut’s mining in- dustry is well aware that markets, both na- Ɵonal and global, operate in an ebb and flow, and while the territory is in a current low, it is only a maƩer of Ɵme unƟl the cy- cle improves. The only quesƟon is how long it will take? The Yukon The Yukon has more experience than many jurisdicƟons with the boom and bust nature of the mining industry as it plays a prominent role in its formaƟve history. In 1896, the Klondike Gold Rush encouraged the territory’s populaƟon to explode from approximately 5,000 to well over 30,000 within two short years. Then, in 1899, the rush was over as quickly as it began, when stampeders look- ing to make a quick fortune heard word of gold off the sandy beaches of Nome, Alaska. In 2011, with global markets white-hot, it seemed as though the second-coming of the Klondike Gold Rush was occurring. There was an incredible surge in grass-roots exploraƟon happening on the ground and as much as $300 million being spent to further develop the future of the mining sector in the territory. Then, just last year, the Yukon’s mining sector only saw approximately $80 million in exploraƟon spending. “We have certainly all felt the global downturn,” says Samson Hartland, execu- Ɵve director of Yukon Chamber of Mines. “But this year, there seems to be a sense when speaking to those in the industry that we are bouncing along the boƩom and that we are on the verge of a turnaround. So, was last year the boƩom? We don’t know but we sure hope so.” Wellgreen PlaƟnum Ltd., Selwyn Chi- hong Mining, Kaminak Gold CorporaƟon, and Capstone Mining CorporaƟon’s Min- to Mine (the Yukon’s only mine presently in operaƟon) all have a number of advanced exploraƟon projects on the books, which would indicate there is a basis for opƟmism in anƟcipaƟng increased exploraƟon spend- ing this year over last. “The Yukon and Canada’s North are sort of the canaries in the mineshaŌ, for lack of a bet- ter term, when it comes to gauging the health of Canada’s mining sector,” says Hartland. “We are very small jurisdicƟons and the impacts of any market changes are more readily recognized; not just through data but through anecdotal evidence. You go out to the grocery store and you talk to folks and it’s really not hard to see how things are changing.” Located on the west coast of Canada and neighbouring Alaska, the Yukon has a nat- ural strategic and compeƟƟve advantage when compared to the other two northern territories in terms of infrastructure. The Yu- kon has phenomenal access to port either in Stewart, B.C. or across the United State’s border in Skagway, Alaska. The Yukon has also developed a large number of paved roadways into mineral- ogical occurrences which further establish- es the territory as a place to do business for the mining industry. Knowing the importance power has for the Yukon’s mining industry, the territori- al government is working towards improv- ing electric capacity and, perhaps, tying into BriƟsh Columbia or Alaska’s grid to beƩer meet current and future demand. In addi- Ɵon, there have been numerous steps taken in developing liquid natural gas (LNG) in the Yukon as an alternaƟve source of energy for the mining sector. “LNG policy and LNG tank faciliƟes have all, just recently, been completed and we are now starƟng to see B-trains of LNG being transported to the Yukon,” says Hartland. “When we look at energy and we look at power, there are a lot of opportuniƟes be- ing considered to overcome what has been, historically, one of the Yukon’s development shortcomings. This is perhaps the best part of going through economic downƟme. That we are able to make improvements so that we are prepared for when the upƟck begins again and, also, to posiƟon ourselves to be aƩracƟve and compeƟƟve as a jurisdicƟon to invest in.” M Drilling at Wellgreen PlaƟnum’s Wellgreen project. Photo courtesy of Wellgreen PlaƟnum.Canadian Mining Magazine 19 FeatureA cross Canada, mining companies are up to some really interesƟng things, and not just in the ground. Many companies are puƫng Ɵme and money into helping their surrounding communiƟes. Here are just a few of the interesƟng projects that Canadian companies have been involved with. Mining for Change By Meg Crane Noront sponsors DAREarts’ First Roots Program Since 2010, Noront Resources has sponsored DAREarts’ First Roots program. DAREarts helps aboriginal youth learn about the arts and develop skills to help them face life challenges with confidence and courage. The program introduces parƟcipants to many disciplines, including theatre, art, film, dance, photography and fashion. In 2012, Noront realized it was not help- ing the program reach its full potenƟal with just financially support and became a part- ner. Company staff now donate Ɵme to give support to children interested in mining, ge- ology, acƟng, videography and more. In 2012, it helped youth create a video about the impact of the Ring of Fire on their community, which was entered into the So You Think You Know Mining? contest. M Baffinland fills a food bank In December 2014, employees at Baffinland’s Mary River mine in Nunavut were sponsored to shave their heads. They did not de- cide immediately where to send the money, they just knew they wanted to help people in the area. “In early April, Tununiq IkajuqƟit (Pond Inlet Food Bank) was chosen. We understand that communi- Ɵes in the far north can endure hard Ɵmes and someƟmes it is diffi- cult to reach out for help, especially with food,” says the mine’s site services accommodaƟon superintendent, Jimmy Puk. Their efforts brought the food bank $6,430 and a laptop. Goldcorp Inc. promotes life-skills for aboriginal youth Through a partnership with the Ontario government’s Ministry of Aboriginal Affairs and Right to Play, Goldcorp is helping more than 1,000 aboriginal children and youth develop leadership skills. With support from Goldcorp, the PromoƟng Life-skills in Aboriginal Youth (PLAY) program has expanded to 57 First NaƟons and urban aborig- inal communiƟes across Ontario and Manitoba. PLAY is designed to develop young leaders within the community and empower them to succeed and create posiƟve change. PLAY parƟcipants ready to get to work!A Baffinland employee working the razor to raise funds for the Pond Inlet Food Bank.Next >