North of 60 Mining News - The mining newspaper for Alaska and Canada's North

The Government of Northwest Territories has adopted a new mineral development strategy as it prepares for the advent of devolution in 2014.

The strategy, released Nov. 19, establishes a comprehensive plan aimed at ensuring long-term growth of a robust and sustainable mining industry the northern territory that will create jobs and economic opportunities for its residents.

Strengthening and diversifying the NWT economy was identified as a priority of the territory's 17th Legislative Assembly, and officials have worked since January 2013 to achieve a key element of this priority - a socially responsible and environmentally sustainable mineral development strategy.

"Mines don't last forever, and fewer than 1 in 1,000 exploration projects will result in a producing mine. The average time to find a mine is 10 to 15 years from discovery to production. Fostering a vibrant minerals exploration industry is essential to sustaining our industry and the economic prosperity it provides," NWT officials wrote in explaining the need for the strategy.

"The NWT has excellent potential for new mineral discoveries by virtue of its large land area, favorable geology, and large tracts of relatively unexplored lands. But despite its excellent mineral potential, the NWT currently lags behind other Canadian jurisdictions in exploration investment. While the NWT landmass constitutes 13.5 percent of Canada, the territory's total exploration expenditures have declined over the past five years to less than three percent of the Canadian total," they continued.

The contrast with Nunavut and Yukon is striking: Nunavut has attracted about four times as much exploration investment as the NWT, and Yukon Territory about twice as much. Further, current NWT expenditures are largely for advanced exploration projects and deposit appraisal, with very few grassroots projects underway. This drop in grassroots exploration activity has provided a serious warning about the investment climate for exploration in the NWT and is a key factor in developing the strategy, NWT officials say.

The Canadian government, meanwhile, is preparing to hand over the reins for making resource-development decisions to the territorial government by the target date of April 1.

Aboriginal Affairs and Northern Development Minister Bernard Valcourt introduced Bill C-15, the Northwest Territories Devolution Act, in the House of Commons Dec. 3. The bill, a product of the Northwest Territories Lands and Resources Devolution Agreement signed June 25, aims to deliver on the Harper Government's pledge to give the people of the North a greater say in their own affairs.

The legislation is a response to calls from territorial governments, Aboriginal groups and industry to place decision-making in the hands of Northerners, who view devolution as the means to usher in a new era of prosperity and independence for the NWT.

"Our Government has made the Northern Strategy a priority and today's historic tabling of the Northwest Territories Devolution Act is another example of our commitment to improving and devolving northern governance," Valcourt said in advancing the bill. "With this legislation, we are giving Northerners greater control over their lands and resources, while unlocking the economic potential of the region, and ensuring that the Northwest Territories remains an attractive place to live, work and invest."

GNWT Premier Bob McLeod said, "Devolution is an historic step in the political and economic development of the Northwest Territories. It has been a long-term priority for the people and Legislative Assembly of the NWT and will help ensure NWT residents benefit from the responsible development of the North's great resource potential. Devolution will help transform the Northwest Territories economy and create jobs and opportunities for our residents and all Canadians, especially if it is supported by an efficient and effective regulatory system that promotes investment, while ensuring resource development occurs sustainably."

McLeod said devolution of lands and resources brings a clear need for the Government of Northwest Territories to prepare for its new responsibilities, which include control of the minerals industry, and with it, a significant contribution to the economic future of the NWT.

Strategizing mineral development

NWT Minister of Industry, Tourism and Investment David Ramsay officially launched the territory's mineral development strategy Nov. 20 during the 41st Yellowknife Geoscience Forum.

"Restoring a positive investment climate is important if we are to discover new deposits and establish new mines to sustain and grow our economy," Ramsay told participants in the forum. "The NWT Mineral Development Strategy will ensure our mineral resources continue to be developed in a way that benefits NWT residents, ensures development is sustainable, and upholds our commitment to protect the environment."

The strategy is also designed to address weaknesses in the territory's investment climate and restore its competitive edge.

"Restoring a positive investment climate in the NWT is critical if we are to discover new deposits and establish new mines to replace our existing diamond mines as they move past the mid-point of their operating lives," he said in an introduction the mineral strategy.

"We are serious about addressing our investment challenges and unlocking our mineral potential. We intend to ensure responsible, sustainable development of the territory, one that encourages continued economic growth of the mining and exploration industry," Ramsay added.

Developed in partnership with the NWT and Nunavut Chamber of Mines using a consultative approach, the Mineral Development Strategy is the product of a year process that began with a discussion paper in January 2013 that outlined the main issues the strategy must address. Following this, a stakeholder engagement panel was appointed to collect the views of a broad range of stakeholders and Aboriginal groups and to make recommendations based on this information. The panel released its report in June 2013, which became the foundation for this Mineral Strategy.

The recommendations outlined in the panel's report guide both the Mineral Development Strategy and the annual implementation plans that will follow.

The strategy made 38 specific recommendations in five key areas: Creating a competitive edge; establishing a new regulatory environment for the NWT; enhancing Aboriginal engagement and capacity; promoting sustainability; and enriching work-force development and public awareness.

Among the recommendations:

Position the Northwest Territories Geoscience Office as the principal source of public geoscience knowledge about the economy, land and resources of the Northwest Territories. With respect to mineral development, this will require, at a minimum, sufficient core funding for (a) a robust geoscience mapping program, (b) a state-of-the-art system to disseminate information over the Internet, and (c) adequate support for mineral rights administration.

Institute a Mining Incentive Program comprised of a revamped prospector's assistance grant scheme and mineral exploration tax credits. The MIP could be modeled on successful programs in other jurisdictions, but funding levels should take into account the intrinsically higher costs of doing exploration in the Northwest Territories. The costs associated with Aboriginal and community consultation should be considered as eligible exploration expenses for the purposes of the incentive program as well as for work requirements for assessment purposes.

Seize the opportunity afforded by devolution to begin a campaign to make it known that the investment climate in NWT is improving and the NWT will be "open for business". The campaign would be multi-faceted and include annual trade missions to key capital market centers, an outreach newsletter campaign from the Minister's office, and organization Fam/Orientation tours.

In the two to three-year immediate transition period following devolution, the GNWT should focus its attention and resources on administrative and organizational improvements that can be put into play without introducing legislative amendments. After this critical transition period, the GNWT should be experienced and well positioned to initiate the development of a new leading edge Mineral Resource Act.

Aboriginal governments should develop Engagement Roadmaps that clearly establish their expectations for engagement and the process by which it should occur. Although this work would be led by Aboriginal governments, the GNWT could play an important supporting role in providing financial and technical resources, and facilitating inter-governmental communication.

Aboriginal governments should consider establishing an NWT Aboriginal Mining Council. Such a group would promote consensus and allow Aboriginal people to speak with a stronger voice on important exploration and mining issues.

Given the importance attached to the completion of Land Use Plans, the GNWT should take advantage of its increased responsibilities following devolution to expedite the planning process. This could include planning for those areas where it has jurisdiction (e.g., on Crown lands in the Tlicho settlement area) and providing technical or financial support to Aboriginal governments to advance their own planning initiatives.

Following devolution, the GNWT must ensure inspections and monitoring of mineral development and mine operations are undertaken in a timely and fully transparent manner.

The GNWT should take the lead role to identify the current and future minerals labor force needs and the available northern work force in all NWT communities. This could build on the 2011 labor market assessment undertaken by the Regional Training Partnership in the South Slave, North Slave and Dehcho regions.

Industry, public and Aboriginal governments must continue to press the federal government to fund the Pan-Territorial Northern Mineral Workforce Development Strategy and, of course, follow through on their own commitments to the plan.

Training opportunities should be made more available across the NWT by increasing the participation of Aboriginal governments in the Mine Training Society.

The GNWT should re-introduce the Prospector Training Program. This could be delivered by Aurora College.

Initiatives due in 2014

GNWT officials said a number of initiatives are underway that will have a direct impact on the future of mineral development activity. For example, the finalization of Aboriginal land claims over much of the NWT has already established increased clarity with respect to roles and responsibilities related to land ownership, land access, and the structure and operation of licensing authorities. Ongoing successful negotiations of the remaining claims are expected, and will provide additional clarity for residents, governments, and industry.

The mineral development strategy also includes information about the roles the NWT mining industry, Aboriginal groups and local governments and communities will play in revitalizing the industry and encouraging new investment.

"This strategy is an important step forward for mining in the NWT," said Brooke Clements, president of the NWT & Nunavut Chamber of Mines. "We are establishing a strong foundation that will position us well for a strong and vibrant mineral exploration and development sector in the NWT for many years to come."

An implementation plan is under development that will outline detailed actions that the government will undertake to ensure that the goals of the mineral development strategy are realized.

The plan is expected to be released in early 2014.