It's Mining Week in the NWT! “The Good of Mining” is a series highlighting the important relationship that NWT residents have with the NWT’s mining sector.
The scope of mining and exploration projects is staggering.
From the first strike of a pick hammer, to the construction of a commercial mine; and to the ongoing maintenance of a safe and vibrant operating environment — an incredible amount of goods and services are needed to ensure a successful mining operation.
What does this mean for the Northwest Territories? With NWT mines, come NWT business opportunities.
Targeting Local Benefits
In the Northwest Territories, the Government of the Northwest Territories takes a lead role in making sure companies fill their procurement needs in the North.
Through Socio-Economic Agreements — negotiated and signed with the territorial government, mining companies agree to targets for the local procurement of goods and services, employment and other measures that accrue benefits to NWT residents.
Northern Procurement
NWT diamond mines have been willing and cooperative partners in this approach. You can see it in the numbers.
- $505 million: the total spent by mines on NWT business in 2021.
- $16.9 billion: the total spent by mines on NWT business since 1996.
- 70%: the proportion of procurement by NWT mines which was spent with NWT companies.
Indigenous Business Opportunities
The impacts have been significant – especially for Indigenous-owned businesses:
- $7.5 billion: the total spent by diamond mines on NWT Indigenous businesses since 1996.
- $306 million: the total spent by NWT’s diamond mines on NWT Indigenous businesses in 2021 alone
- ~31%: the proportion of procurement by NWT’s diamond mines spent specifically with northern Indigenous businesses.
Thanks, in large part, to the mining industry’s commitment to northern procurement, Indigenous companies are on the rise and play a pivotal role in almost every area of businesses and industry – providing significant opportunities for investment - and driving the development of a skilled and vibrant northern workforce.
It means trucks on-the-road, contractors swinging hammers, cooks staffing camp kitchens and more. Most importantly, it means good jobs for northerners raising families, purchasing homes and building good lives here in the NWT.
Environmental, Social, Governance
But it’s more than that…
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.
It has placed the NWT on the leading edge of conversations around Environmental, Social, and Governance, or ESG, performance which, alongside financial factors, are strongly influencing today’s investment decision-makers.
Environmental, Social, Governance (ESG) in NWT
This is what really sets us apart from global competitors — and what makes the territory an attractive place to invest and do business