The closure of all three diamond mines by 2030 — along with the unfortunate coincidental completion of oil production at Norman Wells — means major contributions to our economy will shrink, there will be fewer jobs, there will be less disposable income, and governments will have less revenue.
How bad can it be? The economic analysis, Eyes Wide Open, indicates annual losses of 1,880 jobs, $246 million in labour income, and over 20 per cent of government income.
Yet, there is a huge and growing need for mining.
The world is entering the greatest energy transition since oil was discovered but this time to alternative energies to help address climate change. This requires huge growth in the supply of what are called critical minerals, minerals with the ability to reduce use of fossil fuels for energy.
The NWT, as luck would have it, has 23 of Canada’s 31 critical minerals, and this represents a significant opportunity for us to develop new mines to offset future diamond mine closures.
We are not alone in this thinking. In recent months, we have engaged with representatives from Argentina, Taiwan, India, the Indo-Pacific region, and Germany. They are not here looking for fur and diamonds or tourism opportunities. They are seeking secure and reliable sources of critical minerals to help themselves and the world to address climate change challenges.
However, the investment climate for exploration and mining in the NWT needs improving. The just-released Fraser Institute Annual Survey of Mining Companies has reminded us of this again.
When Eyes Wide Open tells us that our $2 billion diamond industry is putting us at economic risk, and with the world hungry for critical minerals to help with climate change, it demands strong and quick action. It will take alignment and it will take strategy; and it will take leadership from all quarters of our territories.
We cannot afford to miss this critical global need for critical minerals. We are all being affected by climate change and collectively, we must also be part of the solution. Simultaneously, that will strengthen our economy, employment, business and tax revenues.
Our legislative assembly must take the lead, and quickly, to work with its Indigenous and federal government partners, with regulatory boards and with industry to decisively identify what needs to be fixed. Collectively, we can then advance the actions to turn this worrisome situation around.
Our chamber had the opportunity to meet with the assembly’s standing committee on economic development earlier this month, and we have put those recommendations forward.
As a representative of our minerals industry, our chamber is ready, willing and able to help. There are many Northerners and businesses who are relying on all of us to succeed.