Skip to content

Why mining matters in Nunavut: empowering communities and shaping the future

Mining has been a cornerstone of Nunavut’s economy, driving employment, community development, and growth since 1999 and well before.

Mining has been a cornerstone of Nunavut’s economy: driving employment, community development and growth since 1999 and well before.

As the largest contributor to the territory’s private-sector economy, mining supports livelihoods for many Nunavummiut. Looking to the future, industry relies on the preparing of the next generation of Northerners to take up the mantle through targeted training and education. 

Mining in Nunavut is the single largest contributor to the economy, making up 46.7 per cent of the territory’s GDP in 2023. In 2023, mining companies spent $2.35 billion in Nunavut, with more than half directed toward local businesses. Over the past 16 years, mining companies have spent $17.5 billion in the territory, driving development in construction, transportation and services. 

This spending generates well-paying jobs, taxes, royalties and induces many other benefits, such as the growth of Nunavut businesses. Few industries provide such comprehensive benefits, making mining a vital engine for growth and stability in the North. 

The benefits of mining extend beyond economics. Through Inuit Impact and Benefit Agreements (IIBAs), companies ensure that communities near mine sites see tangible benefits in education, training and cultural preservation. These agreements aim to create partnerships that allow local communities to thrive alongside industry. 

Mining companies have also supported community initiatives, such as recreations facilities, food security, training partnerships and literacy, to name a few. These contributions play a key role in ensuring long-term socio-economic development in the North. 

Based on annual reports filed by operators, mining operations provided 6,685 person-years of employment in 2023, with Inuit workers making up 12 per cent of the mining workforce. While companies are constantly striving to increase Inuit participation, these jobs are making a difference with a payroll of $64.45 million going to Inuit employees last year. 

However, many mining jobs require specialized skills. To address this, Government of Nunavut’s Mine Training Strategy looks to build the skills Nunavummiut need to succeed in the modern mining workforce. Focused on trades, management and technology, the strategy builds pathways for Inuit and local residents to enter long-term, stable employment in the sector. 

As mining becomes more technologically advanced, with automation and sustainable practices on the rise, the demand for skilled workers is growing. Investing in workforce development is crucial to ensuring that Northern residents can fill these roles and benefit from the high-paying jobs the industry offers. 

The future success of mining in Nunavut depends on engaging the next generation. With an aging workforce and increasing global competition for skilled labour, it’s essential to introduce young Nunavummiut to the opportunities in the minerals sector. By engaging young people and providing them with the skills they need, the North can secure the future of mining and build a stronger, more resilient economy. This will ensure that the benefits of resource development continue to enrich communities and create lasting opportunities for Nunavut. 

Initiatives like mine tours and school partnerships are key to sparking interest. For example, the recent Agnico Eagle Meliadine mine tour for Rankin Inlet students during Mining Week gave young people a firsthand look at modern mining operations. These experiences help inspire students to pursue the training needed to join the workforce, building awareness of the diverse career paths mining offers. 

By investing in youth education and skills development, Nunavut can create a talent pipeline to sustain the mining industry as well as community needs for generations. More importantly, it ensures that the economic and social benefits of resource development stay within Nunavut. 

Mining matters in Nunavut because it supports economic growth, creates jobs and enhances community well-being. But the sector’s continued success hinges on preparing the next generation to step into its opportunities. Investing in training and workforce development today is essential to ensuring Nuanvut’s long-term prosperity. 

—Hudson Lester is the general manager, Nunavut, with the NWT and Nunavut Chamber of Mines