Chamber of Mines goes to city council seeking support

The NWT and Nunavut Chamber of Mines came to city council Monday asking the city to proclaim its support for the mineral industry. 

In his presentation, Tom Hoefer, the chamber's executive director, asked the city to show it supports key infrastructure investments in the NWT, including the Taltson-Snare hydro link, so the territory can provide cheaper power.

"We really need governments to help us catch up with that. It's meant to get us cheaper power so that we can compete," said Hoefer.

There is a downturn on exploration in the NWT, he said, and while several mines promise to come online in the future they won't make up for losses as Diavik closes in 2025. It employs around 1,200 workers.

There are 1,038 mine workers living in Yellowknife, said Hoefer.

The chamber is recommending a Yellowknife minerals plan and is asking the city to support industrial education in high schools and the future polytechnic university in the territory.

With the City of Calgary currently experiencing an economic slump, members of that city council backed a pro-pipeline rally in December.

Hoefer displayed a collage of other municipalities intervening to make public displays in support of economic and industrial interests.

But Coun. Shauna Morgan said she won't unequivocally support the interests of private industry in her role as an elected official.

If the chamber and city have interests that meet, Morgan said she would consider opportunities for partnership.

"I just can't say that I support the industry at any cost," she said.

Some studies show examples of mines in the North that have cost taxpayers more than they have given back in wages and other returns, both in term of public subsidy and environmental liability, said Morgan.

Coun. Niels Konge, however, agreed with Hoefer and stated his support for collaboration on areas of mutual interest and lobbying the territory on linking hydro power sites.

"As a city, we don't really control the regulatory board, land claims or have too much influence on any of those things," said Konge.

The city could jointly lobby the GNWT on the issue of power grid expansion, he said.

"Power is hurting the citizens of Yellowknife and hurting mining in the territory," said Konge.

The chamber of mines and the city could be allies in seeking "reasonable power rates" for citizens and industry, he said.

Coun. Steve Payne asked what the territory has done to drive exploration away.

Hoefer attributed the dismal forecast on new exploration on regulatory processes and interim land withdrawals, including those lands under negotiation with the Akaitcho Dene First Nations (ADFN) and lands included in the prospective Thaidene Nene National Park Reserve. 

The ADFN, the GNWT and the federal government have been formally negotiating an agreement-in-principle and final agreement since 2001. In 2007, Ottawa and the ADFN agreed on an interim land withdrawal of 62,000 square kilometres of land within its asserted traditional territory.

Mining companies are reluctant to explore and investors are starting to "walk away," said Hoefer.

In his presentation, Hoefer pointed to key investments that will support industry, including power lines to the diamond mines, the Tlicho all-season road and the construction of an all-season road into a vast piece of land where the diamond mines are located called the Slave Geological Province.

Utility rates affect residents, industry

In an earlier presentation, the NWT Public Utilities Board (PUB) explained its role as a watchdog regulating all companies providing energy to NWT customers. Both the Northwest Territories Power Corporation (NTPC) and Northland Utilities Limited are fully regulated. The remaining utilities are regulated on an application and complaint basis. 

The board acts as a watchdog for utility companies and will play a role as  power corp. replaces infrastructure, said PUB chairman Gordon Van Tighem, who is also a former mayor of Yellowknife 2000 to 2012.

Coun. Niels Konge said many Yellowknifers do not consider their power rates reasonable.

In November, power corpo. said it would not know the economic impact of repairs and upgrades on power rates until it assesses the damage to its Snare Forks hydroelectric facility where a bearing failed in October.

Konge said there is little incentive for utilities to motivate themselves to reduce operating costs.

The board regulates that ratepayers are safeguarded against "double dipping" after utility infrastructure has already been paid for, said Van Tighem.

Konge asked who was primarily responsible for rate increases over the past 12 years and if the city should direct its concerns to the power corporation. The bulk of increases come from the production, rather than distribution end, said Van Tighem.

Power corp. provides electricity in Yellowknife; Northland Utilities distributes it.

"That's your decision but you said it," said Van Tighem.

Coun. Steve Payne asked how much power corp. is allowed to glean "off the backs of citizens."

Payne is concerned the city is going to "regulate people right out of town," he said, adding that when monthly power bills exceed mortgage payments, "it's an issue."

The city's population is not large enough to support the utilities it requires, said Van Tighem.

Whether an expansion at Taltson would add supply in the coming years is a "question of economics" because utilities must balance supply and oversupply to effectively change costs, said Van Tighem.