Tracking Latest News progress on NWT - on Northern Exploration Baffinland IBA Projects 2019

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photo courtesy of Agnico Eagle photo courtesy of the Department Infrastructure Residents gather in for a donation event sponsored by Agnico Eagle in June. The mining company gave away $1 million to aid literacy and firefighting. 2 November 18, 2019 November 18, 2019 3

NWT/NUNAVUT MINING How much more should mines give the North? Many factors to consider when assessing whether Northern mines are truly on solid ground

SKRWRFRXUWHV\RI'RPLQLRQ'LDPRQG0LQHV The Ekati diamond mine, 300 km northeast of Yellowknife, has been in production since 1998. Residents of the NWT are still waiting to hear whether owner Dominion Diamond Mines will proceed with the Jay project. by Derek Neary claims organization Nunavut Tunngavik Inc. (NTI) to assist in national miner has repeatedly referred to Nunavut as a "politic- 1RUWKHUQ1HZV6HUYLFHV housing. NTI takes in royalty payments from mining compan- ally attractive and stable jurisdiction with enormous geological NWT/Nunavut ies and has a trust fund approaching $2 billion. NTI's president potential" that has "the ability to generate strong gold produc- The North's mining industry has injected an enormous sum declined to discuss the matter when Nunavut News broached it. tion and cash flows over several decades." into the economies of the NWT and Nunavut. Netser has also made it clear that the mining industry must In the Baffin region, the Qikiqtani Inuit Association (QIA) There's no doubt about that. play a key role in the housing crisis, although he's stopped short extracted greater benefits from Baffinland Iron Mines through Notwithstanding, one area of debate remains whether the of imploring mining companies to construct new homes for the renegotiation of its Inuit Impact Benefit Agreement last year. mining companies should be doing more to aid and build the their Nunavummiut workforce. Yet chatter about the possibility Baffinland's CEO admitted that the QIA was "rightly frustrat- territories. of Agnico Eagle building houses has persisted for years in the ed" with a lack of progress over the years, but he said the Mary This year's edition of NWT and Nunavut Mining delves into Kivalliq. River mine – boasting a world-class, high-grade resource – was that issue with some input from Northern politicians and indus- Why not? Why shouldn't the mines assemble residences for "underwater" in its early years of operation due to depressed try representatives. Other leadership voices chose to remain their workers in Northern communities? In some respects, it iron prices. Baffinland is now banking heavily on phase two silent on the issue. seems completely justified to make such a demand. In other of its mine plan moving ahead to bring more robust earnings. It's a fascinating topic – one that many Northerners continue ways, one's left to wonder if the mines are well positioned to In the Kitikmeot, TMAC Resources' Doris North mine to discuss among themselves. The mining companies have make such commitments. recently reported its first quarterly profit – a modest one – after benefitted large numbers of us directly, or perhaps a family Agnico Eagle, which gave $1 million to organizations in being in production for a couple years. member: provided jobs, sponsored a sports team or a trip, Baker Lake and another $1 million to groups in Rankin Inlet The NWT's diamond mines have endured languishing financed scholarships, donated to a community agency or local earlier this year, revealed in correspondence to Environment diamond prices for a few years. In October, Bloomberg Press charitable cause. and Climate Change Canada in May that the company has yet reported that diamond sales for De Beers' global operations, The figures associated with this, and tied to Impact Benefit to recoup its expenditures for the Meadowbank gold mine. Part which includes Gahcho Kue in the NWT, had tumbled 39 per Agreements, are staggering: rising into the hundreds of millions of the reason for that is two writedowns equalling $1.2 billion cent from a year earlier. Dominion Diamond Mines still hasn't over the years, or even surpassing $1 billion in the case of Ekati, U.S., meaning that much of the market value of the mine has disclosed whether it will push ahead with the Jay project at the oldest of the North's operating mines. been lost over the past decade. Ekati, which could have implications on the extension of the Can we open the spigot even further? Despite that and high operating costs in the North, Agnico mine life. In Nunavut, where a housing shortage has long plagued the Eagle still invested another $1.2 billion to develop its new Can the North's mining industry afford to give more? territory, Housing Minister has called upon land Meliadine gold mine and Amaruq gold deposit. The multi- It may depend which side of the ore pit you're on.

NWT/NUNAVUT MINING 2019 1VCMJTIFE"OOVBMMZCZ/PSUIFSO/FXT4FSWJDFT-UEr"XBSE8JOOJOH/PSUIFSO/FXTQBQFS1VCMJTIFS Head Office: 5108-50th Street, Yellowknife, Northwest Territories STORIES BY 'HUHN1HDU\‡%XVLQHVV)HDWXUHV Proud Member: /85/VOBWVU$IBNCFSPG.JOFTr/85.JOJOH)FSJUBHF4PDJFUZ

BAFFIN BUREAU – KIVALLIQ BUREAU – SLAVE BUREAU – HAY RIVER NORTH SLAVE BUREAU – YELLOWKNIFE MACKENZIE DELTA BUREAU – INUVIK Ph: 867-979-5990 Fax: 867-979-6010 Ph: 867-645-3223 Fax: 867-645-3225 Ph: 867-874-2802 Fax: 867-874-2804 Ph: 867-873-4031 Fax: 867-873-8507 Ph: 867-777-4545 Fax: 867-777-4412 [email protected] [email protected] [email protected] [email protected] [email protected] 4 November 18, 2019

MINING NWT/NUNAVUT Mining benefits to the North climb into the hundreds of millions Impact Benefit Agreements, donations and scholarships add up; legacy projects could grow

by Derek Neary Association through a 12 per with the diamond mines in 1RUWKHUQ1HZV6HUYLFHV cent net profit interest roy- the barrenlands to the north. NWT/Nunavut alty for several years of the That money will be fun- The North's mining giants mine life. Inuit Impact Bene- nelled into cultural activities, have taken precious minerals fit Agreements for Meliadine infrastructure, mine employee and metals from the ground and Amaruq will keep the support programs, scholar- but leave an abundance of streams of money flowing ships and summer student cash in return. for governing Inuit organiza- programming. The question is how much tions. Agnico Eagle's royalties The Behchoko Sportsplex, is enough? and fees paid to the Kivalliq a 50,000-square-foot recrea- Gold miner Agnico Eagle Inuit Association and Nuna- tion facility that opened in made a splash in Rankin Inlet vut Tunngavik Incorporated 2017, was built with finan- in June with a $1-million – past and future – over 15 cial assistance from Domin- donation to enhance literacy years will add up to $450 ion Diamonds. The Tlicho and firefighting. In August, million, the mining company Government is developing a estimates. regional infrastructure strat- a similar event was held in SKRWRFRXUWHV\RI$JQLFR(DJOH Baker Lake, with another $1 Agnico Eagle also provides egy that will prioritize other Agnico Eagle handed out $1 million during an August celebration in Baker million handed out for food each Kivalliq hamlet with potential legacy projects. security, firefighting and funding to support commun- "There is always room for Lake to mark the opening of the Amaruq gold deposit. From left, Richard search and rescue. ity-based initiatives, and has growth. We hear about pro- Aksawnee representing Baker Lake's search and rescue; Dominique Girard, The endowments marked pots of money designated for grams invested in by mining Agnico Eagle's vice-president Nunavut; and Baker Lake MLA Simeon Mikkung- the opening of the Meliadine social and recreational activ- companies overseas, where wak cheer during the presentation of a cheque for $150,000 that was desig- gold mine and the Amaruq ities at the municipal level. they are investing in hospi- nated for search and rescue. gold deposit. Thousands of kilometres tals," reads a statement that The Meadowbank gold away in the Northwest Terri- the Tlicho Government sent to ernment and the GNWT, to structure needs planning." Heritage Building in Kugluk- mine, which produced more tories, the Tlicho Government NWT and Nunavut Mining. "It construct more infrastructure Dominion Diamond Mines tuk, another of its affected than three-million ounces of banked close to $5.5 mil- would be wonderful to see the in critical areas of infrastruc- CEO Shane Durgin noted communities. More commit- gold between 2010 and 2019, lion in 2019 from combined (mining) companies working, ture gaps – recognizing our that the diamond miner also ments are under consideration. Impact Benefit Agreements together with the Tlicho Gov- benefitted the Kivalliq Inuit needs based on our own infra- contributed towards the Ulu 3OHDVHVHH next page November 18, 2019 5

NWT/NUNAVUT MINING FACT FILE MEASURES OF GIVING

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Source: Diavik Diamond Mines Hoefer said. "When compan- Eagle CEO Sean Boyd stated ment is done strategically and help build community infra- ies work in the ever-changing that Agnico Eagle had not yet according to community pri- structure. Essentially, they ContinuedIURPSUHYLRXVSDJH cated for donations fluctuates markets, they have to adjust recovered its original invest- orities." created real hands-on training annually with the state of the their spending and investing ment in the Meadowbank gold The Kivalliq Inuit Asso- programs on real community "The company has also had diamond market and general continually." mine after eight years of oper- ciation declined comment for projects to create a win/win/ discussions with other com- business considerations being Iron, produced by Baffin- ation due partially to write- this article. win," stated Hoefer, who used munities and has funded feas- among the factors, Durgin land, has been "all over the downs – a reduction of asset Mining companies can to work for Diavik. "The com- ibility studies for potential noted. map" in terms of pricing over value – of $1.2 billion U.S. contribute with more than munity got a completed build- projects," Durgin stated. Based on almost three the past five years, Hoefer "Our social investment cash, Hoefer noted. He ing to use and for a cheaper Dominion Diamond Mines years of weak demand for dia- noted. Gold, which Agnico for future years depends on recalled Diavik volunteering price because training dollars spent more than $1 billion monds, Tom Hoefer, execu- Eagle extracts in the Kivalliq, the business and community its expertise to complete con- subsidized the labour rate, so on Impact Benefits Agree- tive director of the NWT and has enjoyed buoyant prices needs, as well as on our social struction of the Shorty Brown to speak. Students received ments payments, donations Nunavut Chamber of Mines, over the past three years. obligations," Agnico Eagle Arena ahead of schedule and carpentry skills, which Dia- and scholarships in the NWT strikes a note of caution. Yet in a letter to Environ- stated. "With the growth of at a lower cost than the City of vik could put to work dur- and between "This has to be reflected in ment and Climate Change our Nunavut platform, our Yellowknife anticipated. ing mine construction as 1996-2018, according to the corporate social responsibility Canada Minister Catherine objective more than ever is to "I can tell you that Diavik trades helpers. So, you can be company. The amount allo- payments and investments," McKenna in May, Agnico make sure that social invest- leveraged training dollars to innovative too." 6 November 18, 2019

MINING NWT/NUNAVUT NWT MLAs share thoughts on pros and cons of mining New assembly will be laying the groundwork for the replacement of Diavik jobs

by Derek Neary The disadvantages include unsettled land claims and lack of NWT and not enough jobs are given to Northerners. 1RUWKHUQ1HZV6HUYLFHV infrastructure. 2) I think more can be done. Employment numbers need to NWT be higher. They need to develop opportunities for workers 2) We should be spreading the wealth around the territory. to advance in the system. There needs to be more training Some regions are benefitting much more than others, such as offered. Sixteen legislative assembly seats were filled in the my riding of Nunakput. We should insist that corporate head- I believe the donations and legacy projects have been an asset Oct.1 territorial election. Three others were retained via quarters stay in the NWT. to the NWT communities with mines in their regions. How- acclamation. We contacted all the victorious candidates ever, I think a bit more can be done. A lot of money is leaving with questions about mining. These are the ones who 3) It will be up to the new government to do everything in its the NWT. responded. power to attract exploration dollars and build the infrastructure necessary to see some more mines open up across the territory. 3) This is a big challenge. I would hope another mine would 1) What do you consider to be the greatest advantages and We desperately need jobs, especially in the regions. open up. I know in the Nahendeh riding we are seeing one disadvantages of mining in the NWT? potential mine opening up, Norzinc, and this is exciting. Then we would have to look at small-scale opportunities 2) Do you believe the mines do enough overall for the Shane Thompson, such as: GNWT contracts need to be awarded to Northern territory in terms of employment, royalties, donations and Nahendeh contractors for the economy to grow and flourish in the legacy projects? North. Northern contractors provide employment for North- 1) Advantages: Bene- erners and skills development. These contractors are invested 3) Although closure isn't expected to occur during your fits include socio-eco- not only in the local economy but in our communities as a term as MLA, Diavik is winding down and is scheduled nomic and participa- whole, as many of the contractors are residents themselves. to cease operations as of 2025. How would you propose tion/impact benefits We need creative ways to enhance tourism outside of the larger to replace the approximately 1,100 jobs that will be lost? agreements with the centres. Northerners offer a rich and diverse cultural and trad- affected Indigenous itional perspective and experience, coupled with the incredible Jackie Jacobson, governments. There untouched landscape that few people have the pleasure of Nunakput are training and enjoying. Unfortunately, the larger centres are the only places employment oppor- many of our tourists visit due to the undeveloped Northern 1) Our greatest advan- tunities for NWT tourism industry. tage is the straight-up residents. Offshoot is I believe the utilization of green energy products would resource potential that the business develop- enhance the local economy. If you look at geothermal, the NWT has. We also ment opportunities for not only does it operate the power plant but the heat can have an advantage Northerners, support be used to heat buildings and greenhouses we build that in that our history is and help with com- will allow us to grow our own food. This would create built on mining, much munity development, more employment opportunities, careers, lower the cost of of our infrastructure investment in capital living in the community and make the community more exists today because and community (social and sporting events) projects and roy- self-sufficient. of mining. A recent alty and taxes being paid to the NWT. survey of NWT resi- The major drawback of mining is the damage the operations dents found that 85 per cause to the environment. It can destroy the habitats, disturb cent of NWT residents the wildlife and the chemicals used can leach into the ground- support responsible water and pollute the area. Air and noise pollution are other mining. possible downsides. Not enough of the money stays in the 3OHDVHVHH"Diversify," next page November 18, 2019 7

NWT/NUNAVUT MINING Nunavut MLAs weigh in on Northern mining industry Politicians discuss benefits, drawbacks and whether mines should play a role in housing

by Derek Neary 2) The Government of Nunavut looks for industry to provide benefits to Nunavummiut, such 1RUWKHUQ1HZV6HUYLFHV as training, employment, community wellness, transportation and infrastructure. Through Inuit Nunavut Impact and Benefit Agreements, full Inuit employment is what companies work towards. To achieve this, they invest heavily in training programs to build capacity in our local workforce. These efforts are paying off. More than 500 Nunavummiut from over half of our communities What do Nunavut MLAs have to say about the mining industry? now work at the mines bringing financial security and benefits to many families. We reached out to them with the following questions. Territorial politicians In Nunavut, mining companies make significant donations to many local organizations, commun- who saw fit to respond appear below. ity events, sponsor activities across Nunavut and often voluntarily assist during emergencies. We encourage industry to help us build a foundation today so that we can prosper tomorrow. 1) What do you consider to be the greatest advantages and disadvantages of mining in the Nunavut? 3) There is a long history of mining companies supplying housing in mining towns or commun- ities springing up near a new mine, with mixed outcomes. As the mining industry is still relatively 2) Do you believe the mines do enough overall for the territory in terms of employment, young in Nunavut, there are a number of options beyond fly-in, fly-out accommodations. The royalties, donations and legacy projects? Government of Nunavut is open to considering these and we strive to ensure all stakeholders work together to find the most effective solutions to these important issues. 3) Should mines be involved in supplying housing in surrounding communities?

Patterk Netser, , MLA 1) The advantage for mining in Nunavut is that people 1) As the MLA for the Aivilik constituency, I think are employed and are able to bring back income for increased mining near and is themselves or the communities. The disadvantage is a very positive story. It will end our reliance on social that sometimes income they earn can be used irrespon- assistance. We'll see our constituents buy new ATVs sibly, like for substance abuse. and snowmobiles, support their families better and have a more positive outlook on life instead of waiting for a 2) It's just too bad that mines only bring employment monthly social assistance payment. People complain that to select communities. Not all of Nunavutmiut take mines bring alcohol and drugs into communities, but advantage or are given a chance to work in the mines. alcohol and drugs were around before the mines came. The mines seem to select communities close to where We can't blame the mines for everything. they are mining. As for donations, not all Nunavut communities are given that chance to receive. Same 2) The mines are on Inuit-owned lands so government goes for legacy projects. doesn't receive royalty payments. If more people in Coral Harbour and Naujaat are employed at mines, they'll pay 3) I really like the idea of giving housing to surrounding income tax, which generates income for government. I communities but only surrounding communities will hope to see more donations and legacy projects come to benefit – this should include the smaller and forgotten Coral Harbour and Naujaat. communities.

3) I believe mines should play a role in providing housing , for their employees. It would help alleviate overcrowding. When an employee finishes their shift rotation, they want 1) The greatest advantages are the jobs, steady reliable to come home to their own home and be able to relax, employment, training and hiring a diverse culture and free of overcrowded situations. people. There are some disadvantages: we need to ensure responsible development, and try to diminish any nega- tive environmental impacts. I would like to see mines , invest in research as it provides solutions to challenges Minister Responsible for Mines and MLA and it exposes bright, ambitious personnel to meaning- ful work. 1) Our greatest disadvantage is that Nunavut has a limited amount of infrastructure and companies find it difficult to 2) The mining companies do very well for employment start up. The infrastructure deficit significantly increases in communities. I would like to see the mining compan- operating and capital costs required to mine in Nunavut. ies sponsor more training within communities, at the A moderate amount of southern-connected infrastructure high school level, to encourage and challenge students to would go a long way to lowering costs when establishing stay in school. a business in our geographically remote region. This is especially true for the mining sector. 3OHDVHVHH page 8 Diversify to avoid 'boom-and-bust'

ContinuedIURPSUHYLRXVSDJH all the taxes, fees, and royalties we levy on mining companies to find the best way to get a first-rate deal for residents, while remaining competitive Rylund Johnson, Yellowknife North in the global economy.

1) There's no denying mining has contributed a lot of economic activity 3) We have a budding rare earths industry, a big mine ready to open up at to our territory. It's worth over 20 per cent of our GDP, and its spinoffs Pine Point and an advanced gold project in Yellowknife, among a number are felt through almost every other sector. The downside is that without of other prospects. I believe those will be important in offsetting some of diversification, resource-based economies are prone to the same boom- the losses. One of the biggest things we need to do as a government is to and-bust cycles as the resource industry. Planning ahead for these situa- settle land claims. It's one of the most powerful things we could do for tions will be part of the job of this assembly. reconciliation and to bring the certainty our natural resource industry and our economy are starving for. It doesn't all need to come from mining. 2) The mines do bring big benefits here, but we still have too much of We need to invest in developing a more modern, clean and diversified our workforce being sourced from out-of-territory. That's not all the fault economy by: of the mines either — the territorial government has a big role to play in -Supporting the knowledge economy and creation of a university in making sure we have a trained local workforce to fill jobs. We haven't yet Yellowknife delivered on that. Education is going to be a big focus in my coming term. -Capitalizing on bringing new money to the local economies of the terri- As far as royalties, I think we should actually be talking about revenues. tory supported by attracting remote workers with smart incentives As a government, we need to take leadership and do a full fiscal review on -Investing in high-potential industries like tourism and manufacturing. 8 November 18, 2019

MINING NWT/NUNAVUT Increased Inuit employment a plus

ContinuedIURPSDJH , North-Whale Cove

3) I think it would be beneficial for the mines to assist and support their employees in becoming 1) The greatest advantages are the careers, the busi- homeowners. ness opportunities and the tax revenues. The careers are desperately needed, with chronic high unemploy- , ment in many communities, (mining careers) present huge potential for the next generation of Nunavum- 1) I would say the advantage is employment as I have miut. The business opportunities help to develop seen the increase in Inuit employment with Baffinland. our private sector and drive wealth generation. Tax But I believe they need to do more in training Inuit to revenues help the government stay afloat and fund become supervisors/managers rather than labourers. our services. The disadvantage is mining companies aren't doing The disadvantages are environmental effects, related their part when it comes to community development/ social issues and the boom/bust nature of resource local economy. I think this answers your next question development. Environmental effects on land, water in terms of royalties, employment and donations. and animals are a big issue for Nunavummiut. I believe that we should be international leaders in how 3) I strongly believe if mining companies start this to mine in the Arctic while mitigating and managing (housing) supply it benefits both the community and negative effects. Social issues include housing pres- the mining company – a win/win situation. I mean, sures, crime trends and lack of childcare – these are in Nunavut we have a shortage of housing and if they already issues on their own but can be exacerbated by start with the affected community that would cut down mining development. The boom/bust nature of mining on the waiting list from the local housing association. is well-known and requires us to heavily invest in skill Also the Qikiqtani Inuit Association and Baffinland development and diversification of our local economies. need to work together on all issues under the IIBA Firstly, for employment, in my opinion there will never be enough done – never enough school- (Inuit Impact Benefit Agreement) agreement to ensure ing and investment until we have mines operated by 100 per cent Nunavummiut. That should be all aspects of the affected communities are met with our goal. To realize that, we need all partners working together for labour force development. their requests. The Mine Training Society approach makes most sense – one for the whole territory would be best. Just look at the NWT and the successes they have had there with the NWT Mine Training Society. Adam Arreak Lightstone, For royalties in Nunavut, it's all about the Inuit organizations, because the vast majority of royal- Iqaluit-Manirajak ties flow to them. As a Nunavut MLA, I guess my opinion is royalties are great, wish we had some coming to our bank accounts at the GN. There is the potential for Inuit organizations to 1) When an economy is too dependent on any one sec- use those royalties to help with housing issues and other key challenges, but that hasn't happened tor it creates risk. Each new mine in Nunavut adds jobs yet. Royalties need to be handled carefully in general – if you hike them too high, you will as well as secondary economic activity, which offsets chase away investment. Another cautionary issue with royalties – I believe if you start paying the dominant position the public sector holds in Nuna- out lump sums to individuals, you can end up taking away incentives for people to get educated vut's economy. However, with the increase in jobs and and employed. money in our communities it may also contribute to an increase in social problems; without proper financial 2) As for donations and legacy projects, they are greatly appreciated. However, we planning comes the risk of irresponsible spending shouldn't have to see mining companies investing in childcare or in emergency services, for example. These are core government responsibilities. Unfortunately, with so many 2) I believe that the Inuit Impact Benefit Agreements outstanding and unmet needs in our communities, the contributions from mining inter- play an integral role in determining how committed a ests can seem like a drop in the bucket. The past 20 years have shown our territorial mining company will be in terms of Inuit employment, government is highly focused on investing in the three regional centres, so mining indus- royalties and donations. However, it is my understand- try contributions to Nunavut's 22 other communities are refreshing and much needed. ing that some companies tend to have a stronger com- mitment to corporate social responsibility than others. 3) In terms of public housing, or general housing stock, no. That is a core government respon- I only hope, going forward, that social responsibility sibility. As for housing miners, now that is an interesting idea. There could be an opportunity to will be an integral aspect of any company that chooses combine different problems – high turnover among mine employees, the lack of private homes to invest in Nunavut. being built and pressures on the public housing stock – into a program or project to help Nuna- vummiut mine employees become homeowners. Again, similar to the education and training 3) I absolutely believe that the mining industry should piece, I believe it would take multiple partners pitching in together to make something like this play a role in addressing our housing shortage in Nunavut. I believe that the best employees are happen. It can't be the mining industry alone. long-term employees, and if a company is loyal to its employees, the employees will in turn be Another option for housing would be to support the development of communities adjacent or in committed and loyal to the company. close proximity to mine sites. Where the projected mine life sits in the decades, such as is the There are many Nunavummiut who are capable of becoming homeowners, they just need some case with Baffinland's , we should examine the potential benefits and draw- incentive to do so. If mines were to assist employees in becoming homeowners it would likely backs to allowing these new communities to develop. It would be very complicated, but at the increase their employee retention. I know there are many barriers to homeownership in Nunavut, same time, so is flying workers two weeks in, two weeks out for years at a time with a family at one of which is the stock, but economics has proven that as the demand increases, the supply is home. From what I understand, that time away from family is a big part why we don't have more soon to follow. Nunavummiut working in mining. On principle, which living arrangement makes more sense: If we are to reverse the trend of becoming dependent on subsidized housing, we need to encourage in a mining town, or working fly-in, fly out? I believe the miners themselves and their families more homeownership. This cannot be done alone by the Government of Nunavut and will require could help decide. Again, this would only make sense with a long-lived mine like Mary River. assistance from the private sector.

Joe Savikataaq, Simeon Mikkungwak, Premier and MLA Baker Lake

1) The greatest advantages would be employment and 1) I think the cost of doing business is often a barrier training opportunities for beneficiaries and also busi- to mining in the territory. And given our commit- ness opportunities for the private sector nearest to the ment to responsible development, the process and operating mine. timeline for approval requires a great commitment to Disadvantages would be for individuals that were dis- doing business in Nunavut. However, I think Nunavut missed from employment as some aren't given a second offers incredible potential for resource development chance for rehire. Also, if roads constructed on migra- and exploration. We are closer than ever to being in tory routes for wildlife can change route. As for those control of our own land and resources, and we know in affected communities who aren't employed or private how valuable our untapped minerals are. The future sector not engaged, they need input as to how they can is very bright for mining here in Nunavut. benefit also. 2) I believe that mines have a responsibility to the 2) Employment opportunities are constantly advocated land and communities from which they benefit. For for, although management and senior management me, this means that they need to invest in infrastruc- need to focus on the impacted beneficiaries of nearest ture to advance our communities in the long-term, community. Donations, I believe, are prorated and have and create jobs and skills development for Nunavum- benefitted organizations that are established. Royalties miut. I see this done in partnership with communities are yet to be known for the most impacted community and developed with their vision and needs in mind. and as for legacy projects, those are still yet to be known. 3) Housing in Nunavut is often an effective way to retain employees and remove potential 3) Housing is in major shortage overall in Nunavut and should be further looked into for pri- barriers to employment. I think housing should be a negotiating point between Nunavut vate homeownership programs and investments to the nearest impacted community considering Inuit and industry, as they decide what they want most as part of a mine's investment in forced growth. their communities. November 18, 2019 9

NWT/NUNAVUT MINING Rare earths project open to Indigenous partners Vital Metals completes $5M purchase of Nechalacho deposit portion; will consider sharing ownership

by Derek Neary be able to pay for it and for ations," said Atkins. ers, cellphones, televisions, 1RUWKHUQ1HZV6HUYLFHV some of this stuff we've got to Cheetah Resources, which rechargeable batteries and NWT look at pretty quick payback was recently taken over by magnets found in wind tur- The door is open to periods," said Gruner, who Vital Metals, had initiated bines and hybrid cars. Indigenous groups to become added that the smaller scale negotiations and a purchase "We have commenced dis- part-owners of the Nechala- of the operation would make agreement with Avalon cussions with potential cus- cho rare earths deposit. it a good entry-point for an Advanced Materials, the long- tomers but we have not signed That's the word from Geoff ownership position. time project owner that still any agreements," Atkins said Atkins, managing director of Atkins said Avalon's retains rights to the remaining on Oct. 17. Australian-based Vital Met- efforts to build a strong rela- Nechalacho resource. One part of the research als, which made its final pay- tionship with Indigenous Vital Metals owns the that Vital Metals is carry- ment in October to complete groups was part of the appeal high-grade rare earths to a ing out is to ensure a sort- a $5-million purchase of the of the project. depth of approximately 100 ing method that requires no upper portion of the Necha- "That's something that metres below the surface. chemicals or re-agents, and lacho rare earths deposit, 100 Don Bubar (president and The historical resource water use would be limited km southeast of Yellowknife. CEO of Avalon) and his team at the site – measuring 160 to dust control, according to

"We're certainly open to really need to be congratulat- million tonnes of ore with a Atkins. It would eliminate the SKRWRFRXUWHV\RI&KHHWDK5HVRXUFHV those conversations and that's ed on," he said. "Our intent is rare earths grade of close to need for tailings dam. A barge is loaded for Cheetah Resources, since something that we have dis- we hope to be able to continue 1.5 per cent – is "certainly "We believe the best way taken over by Vital Metals, at the Government cussed," Atkins said of a those relationships and build enough for us to define our to get into production as potential partnership. on them," he said. project," said Atkins. quickly as possible is by sim- Dock in Yellowknife. The company has made its Paul Gruner, president and There are still many The company's test work plifying an operation," said final payment for a portion of the Nechalacho rare CEO of Det'on Cho Corpora- details for Vital Metals to and engineering studies will Atkins. earths deposit, 100 km southeast of Yellowknife. tion, the economic develop- hammer out, much of which also determine the tonnage The rare earths concen- ment arm of the Yellowknives will be contained in the final- rate, the design of the pro- trate could be flown out but option and the scale would agement plans in place to be Dene, said his organization ized mine plan. cessing plant, the number of Atkins sounded keen on the work a lot better from our able to do that." is contemplating a stake in "We need to complete a jobs and the life of the mining possibility of using a barge to perspective," he said. "Once Avalon had already Nechalacho, but coming up bit more test work first. Once project. ship it to Yellowknife or Hay again, that's obviously a dis- acquired regulatory permits with the capital for equity we have that test work com- Vital Metals is still lining River. cussion we need to have with for Nechalacho, but Vital would be a hurdle to clear. pleted we'll be able to finalize up customers to buy the rare "Because the site of the the regulators to ensure that Metals will need to amend the "It's great to have the our timelines of when we'll earths, which could be used project is very close to (Great any risks are mitigated and permits in accordance with opportunity but we've got to be able to commence oper- in products such as comput- Slave Lake), it provides that we have the appropriate man- the scope of its project. 10 November 18, 2019

MINING NWT/NUNAVUT By the numbers Mining companies produce reams of data by Derek Neary Acho Dene Koe First -Diavik spent $329 million 1RUWKHUQ1HZV6HUYLFHV Nation: $199,695 with Northern businesses in NWT/Nunavut Salt River First Nation: 2018, which was 75 per cent Mining companies dig up $283,297 of its overall annual spending. massive volumes of metals Katl'odeeche First Nation: Northern Indigenous business- and minerals. They also pro- $190,696 es procured $158.4 million. duce reams of data annually. -Ekati, Diavik, Snap Lake -Of Diavik's 2018 oper- The following is a collection and Gahcho Kue provided a ations workforce, 560 North- of facts and figures from the combined 56,642 person years erners (51 per cent) were mining industry in the North- of employment from 1996- among the 1,113 employees. west Territories and Nunavut. 2017. Northerners – Indigen- Northern Indigenous workers ous and non-Indigenous – 219 of them – accounted for NWT – represented 49 per cent of 20 per cent of the workforce. NWT diamond mines have that labour, according to the -Diavik fresh water use in collectively spent close to GNWT. 2018: 677.4 million litres. $14.5 billion with Northern -Ekati's $302 million allo- -Gahcho Kue spent $208 businesses since 1996, which cated to Northern businesses million with NWT-based busi- represents nearly 70 per cent accounted for 57.6 per cent ness in 2018, including more of their total procurement, of its overall $524 million in than $51 million with Indigen- according to the 2018 GNWT spending in 2018. Half of the ous ventures. Total expendi- socio-economic report. Close Northern spend, or $151 mil- tures in 2018 amounted to to $6.5 billion has been spent lion, went to Indigenous enter- $290 million. with Northern Indigenous prises. -NWT residents made up businesses since 1996. -Freight, cargo and mail 265 of Gahcho Kue's full-time -Mining accounted for transport were Ekati's largest equivalent (FTE) employees in nearly $1.8 billion of the expenses at $79.9 million in 2018, representing half of the NWT's $4.95 billion gross 2018. Earth-moving equip- 527 FTE jobs. NWT Indigen- domestic product in 2018, or ment came next at $59 million. ous employees numbered 135, approximately 36 per cent. That was followed by mine or 26 per cent – two of those -The GNWT has collected drilling and blasting services jobs were categorized as man- 'RPLQLRQ'LDPRQG0LQHVSKRWR an average of nearly $100 mil- at $46.5 million, personal and agement, 17 as skilled labour, Total spending at Dominion Diamond Mines' Ekati site added up to $524 lion in yearly revenue – pri- domestic services as $15.6 75 as semi-skilled and 41 as million in 2018. Northern businesses captured $302 million of that spending marily taxes and royalties – million and vehicle repair and unskilled. Women filled 100 while $151 million went to Indigenous ventures. from diamond mines over the maintenance at $12.4 million. FTE jobs. past decade, the 2018 GNWT -Of Ekati's 1,625 employ- -Gahcho Kue imported socio-economic report states. ees in 2018, 715 (44 per cent) 52.1 million litres of fuel in cent of the employees at the bulk of that at $38.6 mil- 1,529 full-time equivalent -GNWT resource revenue were Northerners, and 408 2018. Meliadine. Thirty-three per lion. Payroll taxes coming jobs. Out of that, Inuit filled sharing in 2017-18: (25 per cent) were Northern cent of the company's Inuit from the company added up the equivalent of 216 of those Inuvialuit Regional Cor- Indigenous. Among the latter Nunavut workforce was female in to $6.8 million. Government positions. Inuit employees poration: $2.2 million workforce, two people were -Mining represented 2018. Agnico Eagle is pro- royalties and mining taxes collected $12 million in pay- Sahtu Secretariat Inc.: $1.6 listed as managers, one as $680.7 million of Nunavut's jecting that it will expand to rang in at $2.5 million while roll in 2018 and Baffinland million a professional, 97 as skilled $2.96 billion gross domestic 2,000 workers in the terri- municipal taxes cost $1.7 mil- has paid out $45.2 million Tlicho Government: $1.4 employees, 199 as semi-skilled product in 2018 – approxi- tory in the coming years and lion. in pay to Inuit workers since million and 110 as entry-level. Women mately 23 per cent. it's expecting 700 of those -Close to 80 compan- 2014. Gwich'in Tribal Council: occupied 226 positions, or 14 -In 2018, Agnico Eagle employees to be Inuit. ies registered with Nunavut -Baffinland paid approxi- $1.4 million per cent of the total workforce. had nearly 400 Inuit employ- -Agnico Eagle's total pay- Tunngavik Inc. (NTI) pro- mately $5.1 million in Northwest Territory Métis -There were 51 people ees working at its Nunavut ments to Nunavut govern- vided goods and services employee payroll tax and $5.9 Nation: $737,041 in the Ekati apprenticeship operations. Local hires were ments in 2018 amounted to to Agnico Eagle's Nunavut million in fuel tax to the terri- Deninu K'ue First Nation: program in 2018, including 38 per cent of the workforce $55.2 million. Payroll taxes projects in 2018. The miner tory government in 2018. $278,452 contractors. at Meadowbank and 14 per paid by employees formed spent $408 million with Inuit -The $19-million firms in 2018. Qikiqtani Skills and Training -Baffinland awarded 18 for Employment Partnership contracts valued at close to (QSTEP) is made possible $141 million to Inuit-owned by $9.4 million of in-kind businesses and joint ventures support by Baffinland, $7.9 in 2018. Since the develop- million from the Government ment of Mary River, Inuit- of Canada and $1.6 million owned businesses and joint of in-kind support from the ventures have earned $960 Kakivak Association. million worth of contracts. -Since 2014, Baffinland -In 2018, the amount of has provided $170,000 to 34 work done at Mary River was students through the com- equivalent to approximately pany's scholarship program. November 18, 2019 11

NWT/NUNAVUT MINING Nunavut looks to mines for housing help Cabinet minister says industry must be partners in addressing crisis

by Derek Neary and Baffinland Iron Mines Housing Corporation via our 1RUWKHUQ1HZV6HUYLFHV to discuss Nunavut's housing memorandum of understand- Nunavut crisis earlier this year. ing. We are sharing informa- Should mining companies "Some points of discussion tion and are involved in order be constructing residences for included how existing income to document the situation and their employees living in the earners at mines can be assist- to help find possible creative North? ed to develop their personal solutions to provide housing," Nunavut's housing minis- financial management to save the statement reads. ter is turning to industry for toward purchasing a home, Tom Hoefer, executive dir- assistance. as well as seeking ways to ector of the NWT and Nuna- "We have no choice but increase affordable housing vut Chamber of Mines, sug- to work in partnership with in communities of points of gested that territorial govern- industry to resolve our hous- hire," Netser stated. "Those ments should devote revenue ing challenges," Patterk discussions are ongoing." derived from mines directly Netser said in the legislative It's estimated that Nuna- to housing. He said mines cur- assembly in February after vut, where overcrowding is rently pay "whopping" prop- -Chester- commonplace, needs close erty taxes each year that are field Inlet MLA Cathy Tow- to 3,500 additional homes to essentially "windfall taxes" tongie pointed out that the meet existing demand. because the mines receive 116/ILOHSKRWR Government of Nunavut's NWT and Nunavut Mining nothing in return for the pay- Could mining company Agnico Eagle build homes for its employees in Rankin 2017 memorandum of under- asked detailed questions of ments. Inlet or Baker Lake someday? The Government of Nunavut is leaning on mining standing with Agnico Eagle Agnico Eagle about the com- "Often people in commun- companies to facilitate housing ownership. makes reference to housing pany's plans, if any, to begin ities are so used to govern- as one of 10 priority areas for building homes in Nuna- ment paying for everything ity," Hoefer stated. "So they new housing fund, and have new houses are constructed." collaboration. vut. This was the response that they might not realize might naively say, who cares the GN or GNWT put all the This structure would Netser told NWT and from a spokesperson with that all the taxes that mining about mining because every- property taxes they receive allow mines to continue Nunavut Mining that a team the multi-national miner: companies and their workers one knows the government into it, and then use that fund to concentrate on mining from the Nunavut Housing "Agnico Eagle has a good and businesses pay to gov- pays for everything. So one to build new housing in the while the government over- Corporation met with repre- relationship and works in col- ernment is actually benefit- idea to create the appropriate communities. The more new sees the building of homes, sentatives from Agnico Eagle laboration with the Nunavut ing them and their commun- linkage would be to create a mines that are built, the more Hoefer added. 12 November 18, 2019

MINING NWT/NUNAVUT OPERATING MINES Operating mines: diamonds, gold and iron Nunavut now has four producing sites; NWT diamonds under price pressure

by Derek Neary 0HOLDGLQH ZKHUH WKHUH DUH RIDSURMHFWHGPLOOLRQ 1RUWKHUQ1HZV6HUYLFHV VHYHQ NQRZQ JROG GHSRVLWV JROG RXQFHV WRWDO IURP DOO Nunavut/NWT DQG FRPPHUFLDO SURGXFWLRQ $JQLFR (DJOH V JOREDO RSHU- %HORZLVDVXPPDU\RI ZDV DFKLHYHG LQ 0D\ 7RWDO DWLRQVWKLV\HDU GHYHORSPHQWV IURP RSHUDW- FDVKFRVWVSHURXQFHRIJROG 'HYHORSPHQW FRVWV IRU LQJPLQHVLQWKH1:7DQG SURGXFHG DW 0HOLDGLQH ZDV $PDUXT DPRXQWHG WR  1XQDYXW  PLOOLRQ ² H[FHHGLQJ WKH $WWKH$PDUXTJROGGHSRVLW PLOOLRQWRPLO- Nunavut SUHFRPPHUFLDO JROG SUR- OLRQIRUHFDVW²SULPDULO\GXH SKRWRFRXUWHV\RI$JQLFR(DJOH Mine:0HOLDGLQH$PDUXT GXFWLRQ FDPH LQ DW  WRDGYHUVHZHDWKHUDQGDQ Third-quarter gold production at Agnico Eagle's Meliadine mine, 25 km Owner:$JQLFR(DJOH RXQFHV RYHU WKH ILUVW QLQH DGGLWLRQDO  PLOOLRQ IRU north of Rankin Inlet, was 78,093 ounces. The mine achieved commercial Resource:*ROG PRQWKV RI  $PDUXT ZDWHUPDQDJHPHQW Location:NPQRUWKRI IHHGV$JQLFR(DJOH VORQJ $JQLFR(DJOHFRQWLQXHVWR production in May. 5DQNLQ,QOHWNPHDVWRI HVWDEOLVKHG 0HDGRZEDQN H[SORUH IRU PRUH JROG DW %DNHU/DNH SURFHVVLQJ FRPSOH[ DQG $PDUXT DQG 0HOLDGLQH 7KH Mine:+RSH%D\ PLOOLRQDQGFDVKFRVWV *ROG SURGXFWLRQ GXULQJ ILUVW Commodity:*ROG UHDFKHGFRPPHUFLDOSURGXF- $PDUXTH[SORUDWLRQEXGJHW Owner:70$&5HVRXUFHV RI86SHURXQFH WKUHH TXDUWHUV FRPELQHG ² Mine jobs:$SSUR[LPDWHO\ WLRQLQODWH6HSWHPEHU LVPLOOLRQWKLV\HDUDQG Location:NPVRXWK- RI JROG VROG *ROG SURGXF- DWRXQFHV²IDUVXU-  $JQLFR(DJOH VWRWDOFDVKFRVW HLJKWGULOOULJVZHUHFKXUQLQJ ZHVWRI&DPEULGJH%D\ WLRQ LQ WKH ILUVW TXDUWHU ZDV SDVVHGWKHILUVWWKUHHTXDU- Update:$JQLFR(DJOHLVDLP- WRSURGXFHDQRXQFHRIJROG GXULQJWKHWKLUGTXDUWHUZLWK Resource:*ROG RXQFHV WHUVRIZKLFKWRWDOOHG LQJWREHJLQLWVSKDVHWZR DW0HDGRZEDQNIRUWKHQLQH DJRDORIPHWUHV Mine jobs:8SWR 7KH VHFRQG TXDUWHU RXQFHV H[SDQVLRQ DW 0HOLDGLQH WZR PRQWKVHQGLQJ6HSWZDV $W 0HOLDGLQH GULOOLQJ KDV Update:6LQFHRUHVWDUWHG UHPDLQHGSURILWDEOHEXWWRD +RZHYHU 70$& QHHGV WR \HDUV HDUOLHU WKDQ RULJLQDOO\ XSIURPIURPWKH H[WHQGHG WKH 7LULJDQLDT FRPLQJ RXW RI WKH JURXQG OHVVHUGHJUHHWKHFRPSDQ\ SURGXFH  RXQFHV LQ SODQQHG ² QRZ WDUJHWWLQJ SUHYLRXV\HDUZKHQWKHJROG GHSRVLW DW GHSWK $ UHFHQW DW'RULV1RUWKLQODWH ZDVPLOOLRQLQWKHEODFN WKHIRXUWKTXDUWHURIWR  7KH H[SDQVLRQ ZRXOG EHLQJSURFHVVHGZDVVWULFWO\ KROHLQWHUVHFWHGJUDPV 70$&5HVRXUFHVKDGQHYHU IROORZLQJ WKH H[WUDFWLRQ RI PHHWWKHFRPSDQ\ VIRUHFDVW HQWDLOWZRRSHQSLWVDQGVFDO- IURPWKH0HDGRZEDQNPLQH RI JROG SHU WRQQH RYHU  WXUQHGDSURILWDW+RSH%D\ RXQFHVRIJROGDW IRUWKH\HDU LQJXSWKHPLOOWKURXJKSXWWR $JQLFR (DJOH LV H[SHFWLQJ WR PHWUHVDWPHWUHVGHSWK 7KDW FKDQJHG LQ WKH ILUVW 'RULV1RUWK 7KH PLQHU ZLOO WDS LQWR WKH  WRQQHV SHU GD\ *ROG SURGXFH  RXQFHV DQGJUDPVRIJROGSHU TXDUWHU ZKHQ WKH FRPSDQ\ 7KLUG TXDUWHU JROG SURGXF- KLJKJUDGH'RULV1RUWK%7' SURGXFWLRQ UHDFKHG  RIJROGDWWKH0HDGRZEDQN WRQQHRYHUPHWUHVDW UHSRUWHGDVXUSOXVRI WLRQWDSHUHGVOLJKWO\WR RXQFHVLQWKHWKLUGTXDUWHUDW FRPSOH[LQ²WKDW VRXW PHWUHVGHSWK PLOOLRQRQJURVVUHYHQXHVRI RXQFHV 3OHDVHVHH next page November 18, 2019 13

OPERATING MINES NWT/NUNAVUT MINING

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MINING NWT/NUNAVUT EXPLORATION Quest for mineral riches Staking, surveying, sampling and drilling part of the North's magnetism

SKRWRFRXUWHV\RI$XU\Q5HVRXUFHV Auryn Resources' Committee Bay property spans an enormous 773,000 hectares southwest of . The company planned to test up to four targets with up to 3,000 metres of drilling this past summer. by Derek Neary Project:3LQH3RLQW Location:NPQRUWKHDVWRI

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SKRWRFRXUWHV\RI1LJKWKDZN*ROG A channel sampling program at Nighthawk Gold's Andy Lake, 20 km south of the com- pany's flagship Colomac Gold Project. November 18, 2019 21

EXPLORATION NWT/NUNAVUT MINING

SKRWRFRXUWHV\RI6DELQD*ROGDQG6LOYHU Sabina Gold and Silver's marine laydown area camp, located on southern Bathurst Inlet in the of Nunavut.

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MINING NWT/NUNAVUT EXPLORATION

SKRWRFRXUWHV\RI6DELQD*ROGDQG6LOYHU The exploration team for Sabina Gold and Silver examines a rocky outcrop in a newly dug trench at the Goose Property in Nuanvut's Kitikmeot region.

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Project:3LVWRO%D\ Owner:1RUWKTXHVW/WG Resource:*ROG Location:NPQRUWKZHVWRI:KDOH&RYH Status:3URVSHFWLQJURFNFKLSVDPSOLQJWLOOVDPSOLQJ GULOOLQJDQGJHRORJLFDOPDSSLQJZHUHFDUULHGRXWDWWKH 3LVWRO%D\SURSHUW\LQ1RUWKTXHVWUHOHDVHGDQLQLWLDO UHVRXUFHHVWLPDWHIRUWKH9LFNHUV]RQHRIWKH3LVWRO%D\ SKRWRFRXUWHV\RI7HUUD;0LQHUDOV SURMHFWLQ,WVKRZVDQLQIHUUHGRXQFHVRI TerraX Minerals, Acasta Heliflight, the NWT Mine Training Society, the Yellowknife Ski Club, the GNWT JROGEDVHGRQPLOOLRQWRQQHVRIUHVRXUFHDWDJUDGHRI and other organizations have combined efforts to upgrade prospector Winslow Ranney's 1930s trail. It is JUDPVRIJROGSHUWRQQH3LVWRO%D\HQFRPSDVVHV now known as the Ranney Hill Geological Interpretive Trail on the Yellowknife City Gold Project, a 15 km VTXDUHNLORPHWUHV drive from city hall. While still an active exploration route, its also serves as a recreation, tourism and edu- cation trail. Shown here is one of more than 20 classes from North Slave school boards that have used the Project:1RUWK7KHORQ trail as an outdoor classroom during the annual Mining Matters program for those in grades 4-7. Owner:)RUXP(QHUJ\0HWDOV&RUS Resource:8UDQLXP Location:NPZHVWRI%DNHU/DNH Project:$UFDGLD%D\ Project:$WODV=DF Status:)RUXP(QHUJ\0HWDOV&RUSIRUPHUO\)RUXP8UDQ- Owner:7UDQVLWLRQ0HWDOV&RUS1XQDYXW5HVRXUFHV&RUS Owner:$QFRQLD5HVRXUFHV LXPKDVSODFHGLWV1RUWK7KHORQSURMHFWRQFDUHDQGPDLQ- Resource:*ROG Resource:&RSSHUOHDG]LQFJROGVLOYHU WHQDQFHXQWLOXUDQLXPSULFHVUHFRYHU)RUXPZDVKRSLQJWR Location:NPVRXWKHDVWRI.XJOXNWXN Location:NPZHVWRI:KDOH&RYH SURFHVVLWVIXWXUHRUHDWWKHQHDUE\.LJJDYLNPLOOEXWWKDW Status:7KHSURSHUW\ORFDWHGLQFORVHSUR[LPLW\WRWKH&RU- Status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ovember 18, 2019 23

EXPLORATION NWT/NUNAVUT MINING

remain strong long-term. He a place to put its hydrometal- cited some analysts' forecasts lurgical plant with three for $30 per pound in a few potential hosts in Saskatch- Fortune's road still has years due to a predicted defi- ewan. Hopes were dashed for cit. Goad said Fortune would an agreement with Corman be "happy" with prices in the Park, outside of Saskatoon, $25 to $30 range. Sask., in March when a zon- In the meantime, the ing change scuttled the deal. twists and turns company has been exploring The company also has a strategic partnerships for its couple of "very large and gold reserves – more than one strong" geophysical anom- million proven and probable alies to probe – defined ounces of the precious metal. with assistance from the Fortune also went through Geological Survey of Can- a recent exercise where its ada. One of those anomalies executive examined the pos- underlies the NICO deposit sibility of increasing the daily while the other is 1.5 km to output of ore to 6,000 tonnes the east. Drilling could occur instead of its original plan of next year, said Goad. 4,650 tonnes. That plan has Relations with Indigenous been rejected. groups in the NWT are "very "The cashflow is insuffi- good," he added. cient to pay off the increase "We're hoping to com- in the capital," Goad said of plete an access agreement the prospect of raising ton- very shortly and discussions SKRWRFRXUWHV\RIWKH'HSDUWPHQWRI,QIUDVWUXFWXUH nage. are continuing on an IBA Once the Tlicho all-season road is completed, Fortune Minerals will be in position to build a 50-km tote If and when it reaches (impact benefit agreement)," road to the mine site, located north of Whati. production, NICO will offer Fortune's president and CEO 150 jobs in the NWT and said. the mine life is projected at Construction on the Whati Developers of burgeoning NICO mine 17 years, although there's a all-season road is expected to possibility to extend it to 25 be ongoing throughout the endure cobalt slump, search for financing years depending on econom- year but may be on reduced ics, said Goad. operations during portions of by Derek Neary GNWT with a federal fund- economic without a road," near $12 per pound due to a There will be another 85 the winter and during spring 1RUWKHUQ1HZV6HUYLFHV ing contribution and the Tli- Fortune Minerals' president period of oversupply, Goad jobs based at a refinery but it thaw, according to Greg Tlicho cho Government taking a 20 and CEO Robin Goad said of said. That situation has been won't be located in the NWT. Hanna, communications On a journey to targetted per cent equity stake as part the vital infrastructure. improving with a rebound to Shipping the needed volumes officer with the Department production by 2022 or 2023, of the P3 deal – is projected But Fortune's checklist is $18 per pound recently. of lime to the NWT would of Infrastructure. Fortune Minerals has a major to open to the public during still fairly lengthy. Near the NICO contains an esti- be costly, Goad said. Another As of early October, 96 item being scratched from its the first half of 2022. top of that list for more than a mated 82 million pounds advantage to establishing the workers were engaged on the checklist: a road to Whati. It will allow Fortune Min- year has been finding a finan- of cobalt. With the element plant in the south is the abil- road-building project, 32 of Construction on the route erals to build a 50-km tote cing partner to help make being a key component in ity to process materials for whom were Northerners and/ branching off from Highway road to its NICO cobalt-gold- the $800-million mine a real- the manufacturing of elec- other parties, something that or Indigenous. The work- 3 began in September. The bismuth-copper mine, north ity. Times have been tough tric batteries for vehicles, wouldn't happen on site at force will continue to grow $411.8-million 97-km gravel of Whati. recently in the cobalt indus- Goad expressed confidence NICO, Goad noted. and recruitment efforts will road – spearheaded by the "The mine would not be try with prices bottoming out that demand for cobalt will Fortune is still negotiating be ongoing, Hanna stated. 24 November 18, 2019 November 18, 2019 25

NWT/NUNAVUT MINING Tracking progress on a new deal Revisiting Baffinland and the QIA's amended Inuit Impact Benefit Agreement a year later

by Derek Neary For 2019, the Mittimatalik 1RUWKHUQ1HZV6HUYLFHV Hunters and Trappers Organ- Iqaluit ization, which submitted an October 3 marked one accepted proposal, is absorb- year since the Qikiqtani Inuit ing the $200,000 available Association (QIA) and Baffin- annually through the Wildlife land Iron Mines renegotiated Monitoring Program. their Inuit Impact Benefit However, the $400,000 Agreement. designated yearly to pay for The new deal is intended harvesters' fuel usage in Pond to bring greater advantages to Inlet hasn't yet been distrib- the regional Inuit association uted as Baffinland is still and its membership. deciding upon a method to do The QIA recently provided that. The QIA has made sug- an update on the terms out- gestions. lined in the updated IIBA. An expanded Inuit train- A project manager is being ing budget – now standing hired to oversee a feasibility at $2.25 million per year – study for a regional training means that there is more in the centre to be based in Pond coffers for the Qikiqtani Skills Inlet. Baffinland and the fed- and Training for Employment eral government have pledged Partnership (Q-STEP). The funding toward the facility. program has introduced hun- In the coming months, QIA dreds of Inuit to the mining plans to hold consultations on industry, heavy-equipment SKRWRFRXUWHV\RI6LPRQLH$ODLQJD the types of training that will operations, apprenticeships Iqaluit's Simonie Alainga stands in front of one of the giant haul trucks at Baffinland's Mary River mine, be hosted at the site and the and provided academic where he underwent a week of orientation through the Q-STEP program in early October. "I wanted to try location of the centre in the upgrading since 2017. community. There are constantly new something new and different," he said. will also be intakes into Q-STEP, accord- the first community to take ing to the QIA. During early like pickup trucks and load- I saw the 793 (haul truck) of you, basically." could ... they were telling me possession of a marine October, Simonie Alainga ers, also known as skid steers. for the first time," he said of Alainga, 23, never finished that they're going to help me research ship that Baffinland was one of five Inuit benefici- Then Alainga was assigned the 5.5-metre high behemoth high school. When he saw upgrade my education and has already purchased. Arc- aries to fly into Mary River to to the crews handling the mas- that can carry close to 250 a poster promoting Q-STEP that was one of my biggest tic Bay, Clyde River, Iglulik experience life at the mine site sive haul trucks and was invit- tons and has more than 2,400 and the possibility of employ- points of going into this pro- and Hall Beach will bene- for a week. He spent time with ed to climb up to sit inside. horsepower. "You could see ment, he chose to apply. gram," he said. "I want to try fit from research vessels maintenance department staff, "I was very excited. It everything (from the driver's "Once I saw that I wanted and start my career with QIA in future years. who worked on small vehicles really blew my mind when seat), except for what's in front to jump on it as soon as I and Baffinland." 26 November 18, 2019

MINING NWT/NUNAVUT How to save a life Mine Rescue Competition helps prepare emergency personnel for real-life crises

by Derek Neary site," Church recalled. "It was which pitted them against 1RUWKHUQ1HZV6HUYLFHV a long go, but we weren't real- the top teams from Western NWT/Nunavut ly willing to give up on him." Canada and the northwestern The annual Mine Rescue His co-worker survived. United States. Competition puts emergency Church has since moved on The NWT Mine Res- skills on display, and Richard to De Beers' Gahcho Kue dia- cue Competition, which was Church knows first-hand how mond mine where he's emer- launched in 1957, sees a total that readiness can translate gency response co-ordinator of six teams face off in sur- into saving a life. and captain of the company's face or underground events While working for Baffin- mine rescue team. Under his like rope rescues and rappel- land Iron Mines several years leadership, along with that ling, firefighting, searching in ago, one of Church's co-work- of fellow trainer Jon Gale, smoky conditions, first aid, ers suffered a heart attack at De Beers captured the over- testing equipment, running an SKRWRFRXUWHV\RI:RUNHUV 6DIHW\DQG&RPSHQVDWLRQ&RPPLVVLRQ the remote Nunavut mine site. all surface trophy at the 2019 obstacle course and written Dan Beaulieu competes for Team Gahcho Kue at the 2019 Mine Rescue At 2:30 a.m., Church and four Mine Rescue Competition in exams. Competition in Yellowknife. Gahcho Kue once again triumphed as best in others immediately began Yellowknife. It's a distinction "By the time they're done the overall surface division. several gruelling hours of they've claimed for three con- all seven events, they're pretty chest compressions and artifi- secutive years. Not only that, wiped out," Church said of the gency response team. Tryouts and finally three weeks in the diamond mine, David Alex- cial ventilation. the Gahcho Kue squad trav- competitors. begin each January when month leading up to the early ander and fellow emergency "We lost him and brought elled to Fernie, B.C. in Sep- Gahcho Kue chose its training sessions consume a June competition. response team (ERT) adviser him back and continued work- tember and came away with eight-member Mine Rescue full week. Then, as the com- "They're 12-hour days. Richard Kretzschmar share ing on him until 10 o'clock in the overall surface trophy at Competition crew – six start- petition draws closer and the It's long," Church said of the the duties of overseeing the the morning when we were the National Western Region ers and two alternates – from team is pared down, train- training sessions. 70 ERT staff and prepping able to get him medevaced off Mine Rescue competition, among the 55-person emer- ing ramps up to two weeks Over at the rival Diavik the mine rescue team. They strive to retain some experi- enced team members but also encourage newcomers. "It is a great opportunity for new members to get some intensive training that helps advance their ERT knowledge and experience, training that would otherwise take years to accumulate through regu- lar training," said Alexander, who, like Kretzschmar, has been involved in mine rescue for more than 30 years. Trainees must commit to 12-hour days and are also expected to do extra read- ing, studying and practising. Although Diavik earned the best overall underground tro- phy in Yellowknife this year and last year, winning at the Mine Rescue Competi- tion isn't the only objective, according to Alexander. "It gives us the opportun- ity to meet and collaborate with other teams, and it is a good indicator of how well our training program is work- ing at our site," he explained, adding that Diavik has a mutual aid agreement with other mines in the territories. "In the event of a large or prolonged event or crisis at one site, they can call on other mines to come and assist. The mines get together annually and complete a mutual aid exercise at one of the mine sites so that we can train together ... it is amazing how well (the mine staff) all work together." Church can attest to the strong bonds among ERT per- sonnel. He has trained more than 300 people over the past two decades. He said he remains in contact with them. "It truly is a big family," Church said. "The funny thing about working these jobs is it's 14 days in, 14 out, you become family just with your co-workers alone. But when you become (an emer- gency) response member, you bleed and cry and sweat with these guys." November 18, 2019 27

NWT/NUNAVUT MINING De Beers investigates carbon storage Technique tested at Gahcho Kue diamond mine to inject carbon dioxide into processed rock

by Derek Neary "You can't afford to have return to the mine again next 1RUWKHUQ1HZV6HUYLFHV five million tonnes of tail- year to expand upon their NWT ings reacting for 300 days," trial by another factor of 100. The energy-intensive pro- he said. "Within a couple of years cess of mining expends large There's a high degree of we'll have clear indications of volumes of carbon dioxide, variability within a deposit as what kind of approaches will and De Beers is seeking a way to how quickly, or slowly, the be economically feasible." to put that carbon into pro- geochemical reaction occurs Natural Resources Canada cessed rock, or tailings, rather and the real test is to repli- has contributed a $675,000 than the atmosphere. cate it successfully on the grant towards the research "Thin k of it like a f ine sand. scale of a mining operation, through it's Clean Growth The minerals in that find sand he acknowledged. Program. react with the carbon dioxide Initial results have shown "The research offers great to form carbonate minerals, promise. Dipple and his opportunity as the carbon so they turn the carbon into team travelled to the Gahcho storage capabilities of kim- a solid form," explained lead Kue mine, 280 km north- berlite processed while min- researcher Greg Dipple, a east of Yellowknife, this past ing is such that only 10 per professor in the Department summer and carried out an cent of the rock's storage of Earth, Ocean and Atmos- experiment approximately potential would need to be pheric Sciences at the Univer- 100 times the size of what harnessed to capture the car- 116/ILOHSKRWR sity of British Columbia. "The was performed in the lab. It bon dioxide emissions of a If research proves viability, carbon emissions at De Beers' Gahcho Kue carbon dioxide is going from was done in a basin within whole mine," De Beers stated diamond mine could be stored in tailings to make the mine carbon neutral. a gas to a solid mineral and metres of the ground's sur- in a news release. that's where the real stability face. De Beers, which provided and safety of it comes from." "We learned a lot. We're no further comment on the scheduled to rise incremen- keeping an eye on how the each year. Nunavut produced The process has been still in the process of col- project when approached by tally each year through 2022. carbon storage experiment 0.6 million tonnes of car- demonstrated in a labora- lecting all the data and we NWT and Nunavut Mining, Agnico Eagle estimates that unfolds. bon in 2017 while the NWT tory under controlled condi- have to go through reporting is also conducting similar carbon taxes in Canada will "I think we're all hope- was responsible for 1.3 mil- tions in as little as two to with De Beers as well, but research at its mining inter- cost the company $48 million ful but we'll have to wait for lion tonnes – the diamonds three days, although it can we're very happy with the ests in Botswana. over the next 14 years. the results of the research," accounted for approximately take up to almost a year. way things went this sum- The experiment comes Tom Hoefer, executive dir- Hoefer stated. 33 per cent of that, according The crucial factors are time mer" the professor said, add- as carbon taxes have taken ector of the NWT and Nuna- Canada emits close to to Environment and Climate and cost, said Dipple. ing that they're aspiring to effect in Canada and are vut Chamber of Mines, is 700 million tonnes of carbon Change Canada. 28 November 18, 2019