A study released Dec. 17 by the Conference Board of Canada said the natural resources sector provides the strongest potential for Northern Canada’s future economic development.
The report, Mapping the Economic Potential of Canada's North, was released by the board's Centre for the North and is intended to provide a launch pad for further inquiry into the future economic development potential of the North.
“The economic potential of Northern Canada is highly dependent on its mining and oil and gas resources,” said Len Coad, director of Environment, Energy and Technology Policy at the Conference Board of Canada. “These primary industries also drive growth in other sectors of Northern economies, including communication, electricity and transportation infrastructure, and commercial services. They can contribute to the prosperity of Northern communities by providing jobs and supporting local businesses.”
The report said potential opportunities exist in every Northern region, although there are some emerging hot spots, particularly in the Yukon, Nunavut, and Northern Ontario.
“Northern Canada has a long history of mining and the future looks bright. Even in 2009—the worst year for mining in recent history—the industry contributed $6.5 billion to the Canadian economy in real terms and continued to export a diverse variety of resources,” said Coad. “Private companies have spent billions of dollars exploring and appraising the North, and several projects have garnered considerable excitement from exploration companies and local communities alike. That said, mining also has a significant environmental impact, which must be especially well-understood and managed properly in the North.”
Ontario and Quebec have long histories of diverse mining operations. The Ring of Fire could make Northern Ontario a big player in chromite mining, while large amounts of exploration expenditures will flow into Quebec. Labrador will see a boost in iron ore production from several mines.
This report argues that both project proponents and the respective governing agencies must ensure that mine development is both environmentally responsible and delivers economic rewards to residents, benefits to local governments, and returns to investors and operators.
In Northern Saskatchewan, there is strong potential for expanded uranium mining and new mining of gold deposits. Northern British Columbia has a variety of metal mines and a new transmission line will enable several mines to begin production in the Northwest. Northern Manitoba will open at least two new metal mines in the near future.
The challenges and constraints which could impede mining growth in the North include supply constraints; an absence of skilled labour; remoteness of potential mining sites; substantial infrastructure costs to build roads, railways, airstrips, or ports; long lead times required to bring new properties to full production; and changes in the demand for each commodity.
.jpeg;w=120;h=80;mode=crop)
