The NWT economy is in a state of transition. Our three existing diamond mines have each announced closure dates. Although considerable mineral exploration is currently underway across the NWT, it will most likely be five to ten years before we see a large scale mine at production.
In 2022, royalties from resource extraction was approximately 4% of GNWT revenues. The greatest impact of mine closures will be felt by diamond mine employees and NWT companies that support the mining industry. In 2022, the NWT’s three diamond mines spent nearly $755 million with NWT-based businesses and employed over 2600 people. It is worth noting that over half of diamond mine employees do not reside in the NWT.
So what will replace the economic gap
left by the diamond mines?
As highlighted throughout my platform, I believe the best way to support the northern economy is to increase our housing stock and our pool of skilled labour.
The Remediation Economy
Environmental remediation work across the NWT is expected to generate 700 full-time jobs per year for approximately 15 years, with annual spending estimated at $291 million.1 Much of this work will be located at Giant Mine in Yellowknife.
Housing
Every community across the NWT is in need of housing. Now is the time to train northerners to rebuild our housing stock. Both the territorial and federal government are committed to housing investment but a shortage of skilled labour poses a significant obstacle. The current cost estimate for public housing ‘priority repairs’ is $38 million. The projected 20-year Deficit for public housing across the NWT is over $1 billion.
The Conservation Economy
The federal government recently committed 100 million dollars to protect sensitive ecosystems across the NWT. This funding is expected to be matched by private donors to create ‘Project Finance for Permanence’. The intent of the program is for Indigenous Governments to be compensated for land stewardship.2
Untap the Potential of Local Economies and Northern Innovation
Support economic activity that is low carbon and scaled to northern expertise: housing, healing, green energy, food production (agriculture, fishing, etc), trapping, the arts, the knowledge economy, climate research, cold weather testing, on-the-land education, and tourism.
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