1. business and industrial
2. energy
3. coal

- NWT Exploration & Mining Prospects 2012 Presentation to NWT Chamber of Commerce AGM
Yellowknife – April 3, 2012
Discussion Items
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•
•
•
Industry update
Our challenges
Encouraging signs
How you can help
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Current NWT Mineral Production
CanTung
(tungsten)
Ekati
(diamonds)
Diavik
(diamonds)
Snap Lake
(diamonds)
Meadowbank
(gold)
3
Value of Mineral Production, 2011
NWT, Nunavut and Yukon Mining Production
$2,500
NWT
Nunavut
$2,000
$C Millions
$1,667
$2,045
$1,831
$1,790
Yukon
$2,144
$2,123
$2,112
$1,638
$1,507
$1,500
$1,000
$874
$779
$653
$500
$349
$682
$385
$321
$317
$272
$35
$35
$4
$32
$35
$13
$0
2003
2004
2005
2006
2007
2008
2009
$0
1999
2000
2001
2002
2010
$414
2011(p)
Natural Resources Canada – March 2012
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•
•
Diamonds are up by $40 million over last year, and tungsten is up by $55 million.
Benefits to date: 17,000+ person-years employment; $9+ billion northern business
Important that we take actions to help sustain and even grow this production. 4
Future of NWT Mines
Mine lives - years
1997
2000 2003
2006
2009 2012
2015 2018
2021
2024 2027
2030
Ekati
Diavik
Snap Lake
Cantung
• Find ways to sustain our mines
• Attract investment in new mines and exploration to sustain benefits
5
NWT: What’s “in the wings”
Courageous
(gold)
Howard’s Pass (YT)
(base metals)
NICO
(gold, cobalt, bismuth)
Prairie Creek
(base metals, silver)
Ormsby
(gold)
Nechalacho
(rare earths)
Pine Point
(base metals)
Gahcho Kue
(diamonds)
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6 New NWT Mining Opportunities
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
Prairie Creek
Gahcho Kue
Nechalacho
Tyhee
NICO
Pine Point
PROVISO: This data is taken from public information that represents best case scenarios. Actual project timing and opportunities
are subject to market prices & conditions, regulatory approvals and timing, investor approval, etc.
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•
•
NWT has 6 mining proposals advancing.
They are not slam dunks, but we are optimistic
Could help fill the void when diamond mines decline & close
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Total value of 6 proposed new NWT mines
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•
•
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Capital investment – about $1.8 billion
Annual operating expenditures – about $700 million
Jobs at peak – about 1,400
Total person years employment – more than 25,000
Total expenditures over life – more than $14 billion
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But, need for more exploration
Mining Project Name
(Operator)
Commodity
Expected
Production
Expected
Jobs
Expected Capital Costs
($C millions)
Yellowknife Gold Project
(Tyhee)
Gold
2014
238
$ 170
NICO
(Fortune)
Gold, Copper, Cobalt,
Bismuth
2013
150
$ 200
Thor Lake
(Avalon Rare Metals)
Rare Earth Metals
2014
200+
$ 228+313
Prairie Creek
(Canadian Zinc)
Silver, Zinc, Lead, Copper
2013-14
220
$ 60
Gahcho Kue
(De Beers, Mtn. Province)
Diamonds
2015
360
$650
Pine Point
(Tamerlane)
Zinc, Lead
2013
225
$ 135
TOTAL
1,400 jobs
$ 1.8 billion
EKATI mine
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•
Diamonds
1,229 jobs
If all 6 NWT projects become mines, the direct jobs will just equal
jobs at the Ekati mine. Five years after Ekati, Diavik is slated to close.
We need more exploration.
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Grassroots Exploration: building the future
Base metals,
diamonds
Base metals, silver
Gold
Copper
Copper,
gold
Gold
Gold
Diamonds
Copper, nickel,
cobalt
Lithium
Nickel
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We must attract more exploration
NWT, Nunavut and Yukon Mineral Exploration
$600
$500
NWT
Nunavut
Yukon
$C Millions
$400
$300
$200
$100
$0
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
NRCan March 2012
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Languishing NWT exploration investment (compare Yukon and NU).
Upside? We created this, therefore we can change this.
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The NWT Challenges
• Maturing industry – Ekati to close in 2019
– Requires many new mines to replace world class Ekati and Diavik
• Languishing exploration
• Regulatory complexity
– complex and outdated MVRMA; significant public concern sending
small grassroots projects to EA
• Access to land
– Protected Areas Strategy – $25m with no balancing Economic
Development strategy has helped conservation bias
• Aboriginal consultation & participation
– consultation requirements not clear, Akaitcho Exploration
Agreements, unsettled land claims
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Encouraging Signs
• 6 new mines proposed
• Small upturn in exploration investment
• Regulatory certainty – legislation being modernized
by Federal government
• GNWT Priority – NWT Mineral Development Strategy
• Aboriginal support
– Akaitcho MOU, Tli Cho’s Kwe Beh Working Group
– Pan Territorial Training Strategy
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How you can help
• You are all leaders who have influence
• Get to know your mining neighbours
– Think and work creatively with them
• Offer your support through:
– Chamber of Mines, Commerce, Construction Assoc.
– Your land claim organizations
– Government leaders and officials
• Strength in working together
– We can create our own Opportunities
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Why it matters
Courtesy Diavik Diamond Mines Inc.
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