Yellowknife — March 31, 2022
This would have been my first opportunity to attend this annual event.
I understand the scope of the conference has been expanded this year - beyond arctic oil and gas - to include the broader energy and resource potential of Canada’s North.
This wider focus is one more-closely matched to the true potential of today’s Northwest Territories and I am pleased to be able to offer some comments this morning.
Many of you are already well-versed about Canada’s North and the Northwest Territories. But even so, I am reasonably confident that is enough happening that everyone here will have learned something new whether about new developments or emerging opportunities either from one of our team members or from my remarks now.
The NWT is at an exciting moment where resource availability, technology, market demand and public and therefore political interest are all coming together.
Our government has been recognized globally for the socially and environmentally conscious management of our mining sector; and our partnership with Indigenous governments has set the bar in Canada, for meaningful participation, decision making and resource revenue sharing in the resource sector.
In the next few minutes, I want to briefly describe some of our resources, highlight 3 key projects and the processes used to achieve them, and conclude with some thoughts on why we are confident demand for the north’s opportunities will continue to grow over the immediate future.
Resources
We have a proud history – almost a century’s worth - of continuous mining. From a beginning in base metals like zinc, lead, and gold; in the 1990s we became the birthplace of ethically sourced diamonds. Today, the breadth of our mineral potential is expanding even further thanks to the presence of so-called green economy metals such as rare earth elements, lithium, nickel, and cobalt needed to meet the demand of clean technologies.
The wealth of NWT’s natural resources is, of course, not limited to minerals. We are also home to some of the world’s largest reserves of natural gas and oil, both onshore and offshore. Norman Wells is home to Canada’s longest operating oil field. And on the Arctic coast, we have incredible, proven reserves of natural gas. In total, an estimated 16.2 trillion cubic feet of conventional natural gas, and 1.2 billion barrels of conventional oil in discovered resources – and lots more considered unconventional resources or to be defined.
On the mineral resource side, the federal government has identified 31 minerals that it believes will position Canada as a leading supplier of critical minerals. Many of these minerals are present in the NWT.
As companies and countries around the world move to secure and develop supplies of critical and strategic minerals, we are working to develop a Critical Minerals Action Plan to leverage this growing international demand for NWT resources in order to open the door for more critical minerals projects.
Looking more broadly at the north as a place of innovation, we have become world leaders in areas like permafrost research, ice road construction, satellite technology and the use of biomass to produce heat.
The three projects I want to highlight demonstrate that the NWT is a jurisdiction that values and supports an approach to economic growth that is innovative and inclusive.
First, the Tłı̨chǫ Highway which opened to the public on November 30, 2021.
It is a $400 million dollar; 97 km all-season highway west of Yellowknife that has opened a resource-rich corner of the Tlicho region to future exploration and other economic activities while connecting the small community of Whatì to the NWT’s highway grid.
The highway is also a key enabler for the NICO critical minerals project being advanced by Fortune Minerals and will provide the means for cobalt concentrate to be trucked to the railway head in Hay River and then on to Alberta for processing.
The highway is notable because it is the first time, in the NWT, that an Indigenous government has taken an equity role in a major construction project; this thanks to a private sector partnership between Kiewit Canada Development Corp. and the Tlicho government in the form of the North Star Infrastructure consortium.
The highway is an example of how infrastructure in an NWT Indigenous territory can, not only be completed by resident companies but leveraged to build ownership, capacity and strength in a region and its businesses. With a total population of only 3,000 citizens in the Tlicho region, the project employed 276 individuals and created over ten thousand hours of training for Tłı̨chǫ citizens.
Not only was this infrastructure project ground-breaking, it was award-winning. IT is one of five projects recognized in 2019 by the Canadian Council of Public-Private Partnerships and won gold in the National Awards for Innovation and Excellence in Public-Private Partnerships.
As we look to the future, our infrastructure deficit is large and the tax base with which we can address this deficit is not. Strategic investments in three major projects, the Mackenzie Valley Highway, the Slave Geological Province Corridor, and the Taltson Hydro Expansion have been prioritized by the Government of the Northwest Territories for completion. All three have the potential to transform the economic future of the NWT but to be certain, each will require an approach to financing that looks to partnerships with all levels of government from NWT-based Indigenous governments as well as the Federal government and the private sector as well.
Second, In June of last year, the NWT mining sector celebrated the opening of production at Canada's first rare earth mining project: Nechalacho.
Owned by Vital Metals Ltd. of Australia and its subsidiary, Cheetah Resources Corp., the project mined 5,000 tonnes of rare earths lasts summer, shipping it by barge to Hay River to be transported south to Saskatchewan for processing.
The project features an agreement with Det’on Cho Nahanni Construction Corporation, owned by the Yellowknives Dene First Nation to provide mining services. It is the first project in the country in which an Indigenous group has been contracted to extract minerals in its own territory.
Seventy per cent of the Nechalacho workforce last summer was Indigenous, and 85 per cent were NWT residents. 162 NWT businesses played a role in supporting the mine’s 2021 season. 90 per cent of procurement was from NWT sources. Eighty-five per cent was Indigenous.
The successful debut of the Nechelacho mine sets the stage for work on the larger multigenerational Tardiff deposit planned for 2024. The Tardiff deposit will more than double Indigenous and Northern employment and business opportunities and provide opportunities for Indigenous ownership.
It sends a signal that Canada is indeed a serious player in the international drive toward a sustainable, reliable, responsibly mined source of critical rare earth elements independent of China and also of Russia.
Third, I would like to highlight the Inuvialuit Energy Security Project which is being advanced by the Inuvialuit Petroleum Corporation.
The project is set to tap the M-18 natural gas well that exists in the Inuvialuit Settlement Region near the Arctic coast; and to build a plant that will convert the gas into Liquefied Natural Gas, or LNG, and synthetic diesel for distribution by road to homes and businesses in Inuvik and Tuktoyaktuk.
The Inuvialuit of the Beaufort Delta have talked for many years about capturing the trillions of cubic feet of gas in their settlement area to displace imported diesel fuel with a reliable, less costly, and local energy alternative.
As of this month, this project is almost through the regulatory process. I’m pleased that IRC Chair Duane Smith has been able to join us here Calgary. And while I know that there is a lot of work left to do, I would like to congratulate him publicly for the progress that has been made.
Those of you that are familiar with the NWT will know that the people of the Mackenzie Delta have a different perspective on developing LNG for market. From their vantage point on top of the world, the gas that exists in the Delta is closer to the Asian marketplace than most people know.
From the Mackenzie River Delta, it is just over 3,800 nautical miles through the Beaufort Sea and Bering Strait to Tokyo, Japan. That’s 500 nautical miles closer than the route from Vancouver to Tokyo; and well over 1,300 nautical miles closer than it is from the Yamal Peninsula to Tokyo, from where Russia supplies LNG by ship to East Asian markets.
If you want to talk about the potential of an energy project in the Mackenzie Delta, consider this.
With today’s advanced, commercialized, and safe Arctic shipping and other marine technologies and changing ice conditions, the NWT could supply the Asia-Pacific market with billions of tons of LNG two days earlier than any existing source - and it would not involve laying thousands of kilometres of pipe.
Growth potential
Colleagues, I have highlighted three projects this afternoon that exemplify the investment and partnership opportunities that exist in the NWT today. I can assure you that there are more.
The federal government is promoting a “green-restart” as the central plank of its platform for recovery from the CPOVID 19 pandemic. The NWT and its investment partners are ready to be a full participant in this recovery strategy.
As the world’s post-pandemic reality becomes clearer, global investment discussions are intensifying around projects with strong Environmental, Social, and Governance performance and returns. Once again, I believe the Northwest Territories is well-positioned and ahead of the curve.
What we have learned and experienced, since our first diamond mine opened over 25 years ago, has placed us on the leading edge of these trending practices and requirements in Canada.
The NWT model is at the forefront of Indigenous participation in mining, exploration, and development in Canada - and likely globally. We are leading the way with resource royalty sharing, socio-economic and benefit agreements, regulatory co-management, and collaborative legislation development.
Northern and Indigenous businesses and companies have evolved and grown to service the NWT’s three world-class diamond mines providing jobs, business opportunities, education, and training.
But it is much more than that. This made-in-the-NWT service sector, and the mines and projects they support reflect the Indigenous cultural values of our communities – and, in doing so, are working to build and strengthening the social fabric of our territory.
In the North, perhaps more than anywhere, a collaborative model for resource development has emerged. We have and continue to build relationships in our territory that result in the support and acceptance of major infrastructure and resource projects.
This degree of social license is grounded in a made-in-the-NWT regulatory regime that takes into account many of the issues important to the local population like environmental protection, traditional knowledge and Indigenous rights. This simply doesn’t exist elsewhere in Canada - and arguably creates the very definition of a secured investment.
Frankly, besides our incredible resources, it is what sets us apart from global competitors, and what makes the NWT a unique place to invest and do business.
Over 25 years ago, we set a new standard in diamond mining and exploration - guaranteeing certified diamonds, mined, cut, and polished in Canada’s North. In the coming years, we envision setting our jurisdiction apart again – as one that provides investor confidence for environmental, social, and governance considerations.
The NWT is more than just open for business. We are ready to do business better, with an eye on the future both in terms of global demand for particular resources but also the expectation for meaningful social licence. We look forward to discussing and pursuing opportunities for investment and growth with those investors and visionaries that are ready to work and partner with us.
Thank you for your time, this morning.