Nunavut’s Mining Industry
in the National Context
Elizabeth Kingston
Nunavut Trade Show
October 2014
Key Messages
• Exploration & mining are the foundation
of Nunavut’s economy
• Nunavut has been a great story of
success
• Exploration spending has suffered a
significant decline
• Investment needed to grow
opportunities in our greatest
economic strength (mining)
and our greatest territorial strength
(people)
2
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.
3
Mining is the largest private sector contributor
in Nunavut
• One mine in Nunavut
already makes largest
private sector economic
contribution
• And does not include
exploration
• Mining also contributes to
other sectors, e.g. real
estate, transportation and
construction
NUNAVUT GDP (2012)
Other
22%
Mining
25%
Health
5%
Education
7%
Public Admin
20%
Construction
10%
Real Estate
11%
4
Grassroots Exploration
$500
$450
438.5
NWT
410.3
$400
Nunavut
$350
Yukon
335.3
B.C.
C$ millions
$300
255.7
$250
238.9
238.8
213
$200
$150
$100
166.7
107.2
70.7
$50
180.3
154.4
163.8
159
128.3
116.2
67.2
52.7
42.5
18.4
24.9
30.1
65.1
31.4
$0
2009
2010
2011
2012
2013
2014
5
Advanced Exploration (Deposit Appraisal)
$400
NWT
Nunavut
Yukon
B.C.
$350
$300
336.2
323.8
273.1
C$ millions
$250
206.6
$200
209.5
200.4
$150
135.6
$100
80.4
111.2
102.3
83.8
76
$50
50.5
25.7
20.2
40.7
29
51.3
59.9
52.9
22.7
38.2
40.1
32.6
$0
2009
2010
2011
2012
2013
2014
6
Mining production is significant
NWT, Nunavut and Yukon Mining Production
$2,500
NWT
Nunavut
Yukon
$1,500
$1,000
$500
)
20
13
(p
20
12
20
11
20
10
20
09
20
08
20
07
20
06
20
05
20
04
20
03
20
02
20
01
20
00
$0
19
99
$C Millions
$2,000
Natural Resources Canada – March 2014
Nunavut – Meadowbank gold production increases
7
Falling Nunavut Exploration is a Cause for Concern
Exploration & Deposit Appraisal Expenditures
$600
$500
$C Millions
$400
NWT
Nunavut
Yukon
$300
$200
$100
$0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
NRCan – March 2014
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.
•
2013 figures are final estimates; 2014 figures are revised spending intentions as of March 2014.
8
Nunavut Exploration Share
(Uses March 2013 numbers)
Nunavut as % of Total Canadian Mineral Exploration
% of Total Canadian Spending
25
20
15
10
5
Note: “NU only” statistics begin after Nunavut was created in 1998
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
NRCan – March 2013
•
Nunavut is witnessing a decline against other Canadian jurisdictions.
9
A level playing field for Nunavut miners?
• Remote sites require airstrips and camps to support
mobile workforce.
Airstrip and camp at Meadowbank gold mine
10
Our industry creates significant benefits
Potential New Nunavut Mine Jobs
(construction + operations)
Number of Workers
• 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
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037
* Mining Industry Human Resource Council, 2014
11
Growing Inuit Businesses Opportunities & Benefits
Selection of Inuit companies supporting the mining
& exploration industry in Nunavut
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Peter’s Expediting
Jago Services
Qillaq Innovations
Toromont Arctic
Kitnuna
Kivalliq Expediting &
Storage
Oomilik Enterprises
Akhaliak Consulting
Kitikmeot Blasting Services
Kitikmeot Caterers Ltd.
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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
12
Training & Education Builds Futures
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Mining Matters / Actua
Kivalliq Mine Training Society
Arviat Diamond Driller/Welding
Nunavut Arctic College / Trades School
Agnico Eagle / Baffinland Initiatives
Government of Nunavut “Sivumut Abluqta”
Government of Canada
– Northern ABE Program
– Canada Job Fund
13
• In 2013,
•
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32 active projects
5 advanced
•
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12 Gold
7 Base Metals
4 Uranium
3 Diamonds
5 Iron
1 Coal
•
Several properties
multi-commodity
14
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
• Add your voice and influence
15