Critical Minerals to Open New Chapter in NWT Mining

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June 14, 2022

Gold, base metals and diamonds have long been the lifeblood of mining in the Northwest Territories.  

But, as companies and countries around the world move to secure supplies of critical and strategic minerals, doors are opening for NWT projects such as Nechalacho, NICO, Pine Point and Prairie Creek – and a whole new chapter is beginning to unfold in the territory’s storied mining legacy.

This article is included in the Unlocking Our Potential Newsletter – being made available to delegates, this week at PDAC 2022 - the world’s premier mineral exploration and mining convention in Toronto.  You can download our June 2022 edition here

As the Government of Canada takes steps to develop a Critical Minerals Strategy, over half of the 31 minerals already considered critical to domestic, industry, national security and emissions reduction can already be found within the Northwest Territories.

According to the International Energy Agency, the total market size of critical minerals needed for the green energy transition could grow almost seven times between 2020 and 2030.

And the NWT’s Minister of Industry, Tourism and Investment, Caroline Wawzonek says this creates new space for small-scale domestic mining.  Given the current post-pandemic and geopolitical climate, she sees this as an opportunity to diversify the NWT’s mining portfolio with minerals like zinc, lithium, copper and rare earths.

“We have an opportunity to add to our rich and long-standing mining story, she told delegates at last November’s Yellowknife Geoscience Forum.

“We are not looking past gold or diamonds, or any other metals that have brought us to where we are today. Instead, we want to build on the history of exploration, proven geoscience and mining success that has been realized so that we can take our mineral resources potential to the next level.”  

Like Canada, the Northwest Territories is now developing an action plan to promote the NWT’s deposits of critical minerals and to increase exploration and geological work.

Last fall, the Department of Industry, Tourism and Investment brought together industry, academia and Indigenous governments to workshop how critical minerals can be responsibly leveraged as a commodity.

In the legislature, policy is being modernized and regulations for a new Mineral Resources Act and the Public Land Act will help to bring certainty and clarity to the regulatory systems that govern land use. Meanwhile, investments continue to address the territory’s infrastructure deficit.

On November 30, 2021, the Tłı̨chǫ Highway opened providing new access to a resource-rich corner of the Tlicho region for future exploration. And, while competition for investors is fierce in the international mining industry, the Northwest Territories is well placed not only to become a supplier of critical minerals, but to be a leader in how they are resourced in an environmentally and socially responsible way.

The NWT model, with resource royalty-sharing, socio-economic and benefit agreements, regulatory co-management and collaborative legislation development, is at the forefront of Indigenous participation in mining, exploration and development in Canada - and likely globally.

Perhaps more than anywhere, the NWT understands the relationship between resource development and socio-economic wellbeing.  It’s what sets it apart from global competitors — and what makes the territory a great place to invest and do business.