Northern economy set for growth
Nunavut awaits opening of Agnico-Eagles's Meadowbank gold mine, oil and gas industry in NWT waits upon pipeline as prices bounce back
Guy Quenneville
Northern News Services
The NWT and Nunavut may have suffered some financial blows over the past year, but there ís still an abundance of opportunity to be had as both territories brace for future projects that will stimulate economic growth and ensure top wages.
Aside from government spending and investment, the oil and gas and mining industries remain key drivers of the Northern economy.
The oil and gas industry continues to wait for the Joint Review Panel's decision on the Mackenzie Gas Project, which is now expected in December.
While much has been made of the delays of the JRP process, the project regained steam earlier this year.
In January, the federal government pledged $37.6 million from its 2009-2010 budget to fund environmental assessments and aboriginal consultations relating to the Mackenzie Gas Project, a sure sign that, despite the regulatory hurdles currently facing the project, it ís still very much a federal government priority.
Ottawa was also in talks with the companies behind the pipeline to invest in infrastructure and pre-construction costs associated with the project.
Though the price of oil took a tumble during the initial stages of the economic crisis, it has since been on the rise. During the week ending May 23, oil prices settled above $60 a barrel for the first time in six months.
Whenever the Mackenzie Gas Project comes to fruition, it will be a major employer during construction.
During the first season of pipeline construction, the peak field workforce is estimated to be between 6,500 and 7,000 people.
During operations, between 45 and 55 long-term employees will be required to keep the line running in various positions, including heavy equipment operators, truck drivers, bus drivers, engineers, camp managers and attendants, and more.
That ís not to mention all the goods and services the project will require from contractors (like fuel storage, logistics, equipment, accommodation, communication, drilling and well servicing, among others), and many companies, especially in the Beaufort Delta, have been gearing up for the opportunity.
In Nunavut, communities in the Kivalliq region are bracing for the early 2010 production start of Agnico-Eagle's Meadowbank gold mine, located 70 km north of Baker Lake.
The project has already generated unprecedented spending in the region.
Of the mine's $620 million cost, $450 million has been spent by February of this year.
Last summer, an average of 330 workers was on site on any given day. This summer, an average of 550 people will be working on the mine site. Agnico-Eagle is aiming for 15 to 20 per cent of contract jobs to be filled by Nunavummiut.
Around 500 people will be hired to work the mine when it's operational.
The property has probable gold reserves of 29.3 million tonnes and couldn't be coming online at a better time: gold prices jumped above US$950 an ounce in April.
Diamond production in the NWT continued to generate big money - $2.084 billion, to be precise - in 2008.
North American Tungsten's CanTung mine in the Deh Cho region added another $55.5 million.
In Nunavut, Tahera Diamond Corporation's Jericho diamond mine churned out diamonds worth $12.7 million. It closed in April but plans are in the works to reopen the mine with new owners.
The world economic crisis - besides forcing both Snap Lake and the Rio Tinto Diavik Diamond mine to plan production shutdowns this year - has also affected the pace of development of future mine projects.
Baffinland Iron Mines has cut back on staff this year for its proposed $4.1 billion Mary River iron ore mine, 160 km south of Pond Inlet, as it looks for a strategic funding partner. President Gord McCreary also would not confirm whether the project will commence construction in the summer of 2010 as originally planned.
Australia-based OZ Minerals, formerly Zinifex, is delaying the development of its two Nunavut base metal projects, High Lake and Izok Lake, due to the global economic crisis.
While exploration will proceed this year at Izok Lake, president Martin McFarlane indicated spending on the project would be tightened this year.
However, Fortune Minerals' NICO cobalt-gold-bismuth project, 80 kilometres north of Behchoko, has advanced to the environmental assessment process, which is conducted by Indian and Northern Affairs Canada.
Judging by data from Statistics Canada - which said 17 of Canadaís top 100 exploration projects by expenditures in 2008 were in Nunavut and the NWT - there could be a plethora of mine jobs awaiting those willing to take the initiative to undergo training.
In the NWT, the Mine Training Society has trained more than 472 people in programs ranging from environmental monitoring, mineral processing, underground mining and camp cooking.
According to the society, the NWT is going to require another 2,700 additional skilled workers by 2012.
On top of that, construction projects in both territories, both ongoing and yet-to-start - including the Deh Cho Bridge in Fort Simpson and the Clyde River Cultural School in Nunavut - will produce high-paying jobs that will attract both Northerners and those from the south.
According to Statistics Canada, on average, workers in the NWT construction industry earned $1,140 a week last year up $37 a week from 2007 and above the national average of $1,013.
So while the short-term future may look cloudy for several industries in the North, the long-term forecast looks to be full of opportunity.
- Updated June, 2009
News desk 
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