Chamber of Mines News Briefs – September 29 – October 1, 2012 [Note: News headlines are hyperlinked to their stories in this document.] CIRCUMPOLAR NEWS ...... 1 Canadian High Arctic Research Station needs link with traditional knowledge: CamBay consultation ... 1 News ...... 2 Build dock first, port later, say sealift companies ...... 2 Shipping companies decry absence of port facilities in Nunavut ...... 3 Aariak promotes devolution at Nunavut Trade Show ...... 4 Nunavut telecom players call for government action ...... 5 Narwhals travelling further off regular migratory patterns ...... 7 NWT News...... 8 Salt River First Nation elects six councillors ...... 8 KFN chief says new Wildlife Act will strip treaty rights ...... 8 Resource Development and Energy News ...... 9 A mining 'whopper' ...... 9 Gold mine in the backyard ...... 10 Iron ore and fiber optics in the works for Nunavut ...... 12 Pine Point processing plant facing delays ...... 15 Forged in iron ...... 16 Community backs iron project ...... 17 Mine clean-up rules too lax, critic says ...... 18

CIRCUMPOLAR NEWS

Canadian High Arctic Research Station needs link with traditional knowledge: CamBay consultation “The research station should be a two-way bridge, not a one-way bridge" Nunatsiaq News - September 28, 2012 JANE GEORGE People in Cambridge Bay got a chance to become personally involved in the Canadian High Arctic Research Station this past week. At a Sept. 26 public meeting, a small group of local residents told the CHARS team, which included federal government bureaucrats, a scientist, an architect and two engineers, how they think the new $142.5 million research facility should be built and operated. Speaking at a public meeting, Richard Ekpakohak said he wants to make sure CHARS, slated to open in July 2017, pays more than lip service to Inuit. Ekpakohak said the research station should bridge western science and Inuit knowledge. “The research station should be a two-way bridge, not a one-way bridge,” Ekpakohak said. For too long, everything that Qallunaat bring in goes in one direction, he said, like a one-way bridge. CHARS needs two lanes, he said, integrating the two approaches to knowledge. “That will be very important to us,” Ekpakohak said.

Chamber News Briefs 1 CHARS will be guided by the principles of Inuit Qaujimatuqaangit, John Xenos, the director of Arctic Science Policy Integration at Aboriginal Affairs and Northern Development Canada, assured Ekpakohak. But “we will need to define how we will do it,” he added. Hamlet councillor Sarah Jancke encouraged the CHARS team to collaborate closely with Cambridge Bay residents. Architect Alain Gautier promised her that involvement, noting CHARS will reflect an integrated design — based on the input of everyone in the community every step of the way — that’s “rare” in similar large- scale construction projects. Other suggestions raised at the public meeting included a call to use wind and solar energy in the research station, which the CHARS team said was in the works for the “green” construction of the future research station, along with finding ways to conserve water use. Those at the meeting also said they wanted CHARS to include outreach programs for local schools and even for visitors on cruise ships. The goal of CHARS, responded Donald McLennan, head of monitoring science on the project, is to get the community into the facility and researchers out into the community. But there was also concern from some at the meeting about community access to jobs and housing for the estimated 35 to 50 people who will work at CHARS. Housing for local hires could be an additional incentive for local youth to continue their education, Jancke suggested. As for the five sites now under consideration for CHARS, along the Airport Rd., Mitik St., Water Lake Rd, the dock and the Plateau, Chris Arko, who works in the lands department at Nunavut Tunngavik Inc., cautioned the CHARS team that Airport Rd. and to a lesser extent Mitik St. can flood during storms. The CHARS team returns in late November or early December with more developed design ideas and site selections to show to people in the community. In addition to the Sept. 26 public meeting, its members also met with many other groups in Cambridge Bay, including the local CHARS committee, elders, Nunavut Arctic College and high school students.

NUNAVUT NEWS

Build dock first, port later, say sealift companies Shipping companies say Iqaluit needs some type of docking facility now CBC News – September 28, 2012 The three shipping companies that service Nunavut are calling for some type of docking facility in Iqaluit soon, instead of waiting for a deep sea port to be built sometime in the future. Iqaluit has been lobbying for a deep sea port and has been trying to find the millions to build it. But the sealift companies attending the Nunavut Trade Show and Conference say it's better for leaders to be realistic and get some type of less elaborate docking infrastructure in place. "You look here in Iqaluit, nothing's changed since the time of Martin Frobisher, nothing at all," said Suzanne Paquin, with Nunavut Eastern Arctic Shipping. "The vessels are much bigger, they're significantly better. What does that mean to the North? Well it means that the ships have to be anchored farther away and that means they're exposed to all the harsh weather, the elements, the wind, which means there's more days especially in the fall where we can't work.”

Chamber News Briefs 2 That costs companies time and money. Paquin said Iqaluit could look to Nunavik for examples of smaller ports that meet both the companies’ and the communities' needs. Peter Woodward with the Woodward Group of Companies suggests re-using what was put at the causeway by the American military. "We really do believe that you need a dock — a piece of concrete, nothing elaborate — and some ability to accommodate some tidal influences,” he said. “You could pull tractor trailers up." Woodward said it would make a big difference for people in Nunavut's capital.

Shipping companies decry absence of port facilities in Nunavut "If you look at Iqaluit, nothing’s changed since the time of Martin Frobisher” Nunatsiaq News - September 28, 2012 DAVID MURPHY The heads of the three largest shipping companies working in Nunavut converged at the Nunavut Trade Show Sept. 27 where they all criticized Nunavut’s severe lack of basic marine infrastructure. Nunavut communities, and especially Iqaluit, fall behind communities in Nunavik because of the near total absence of port facilities in the territory. That’s costing their companies big money, said Daniel Desgagnés, the managing director of Nunavut Sealink and Supply Inc., Suzanne Paquin, the chief executive officer and president of Nunavut Eastern Arctic Shipping, and Peter Woodward, the vice-president of Woodward Group of Companies. “If you look at Iqaluit, nothing’s changed since the time of Martin Frobisher. Nothing at all,” Paquin told an audience of about 60 people at the trade show session on “Infrastructure Transportation/Deep Sea Port.” “I focus on Iqaluit because this is the largest community, and it’s one of the communities that we lose the most time. Time equals money — these ships are expensive, they’re expensive to run, and here we are, waiting,” she said. Woodward estimates time lost waiting to unload cargo multiplies the cost of shipping three to four times. Ships can only unload cargo in Iqaluit eight hours a day when the tide is out, but their workers are helpless and forced to wait once the tide comes back in, he said. And icebergs blocking the way to shore only create more problems, as seen in this year’s disastrous shipping season. “It takes two weeks here — whereas if they were doing it in Montreal, it would take two days,” Woodward said. Woodward suggested building a small port, such the old causeway port built in the 1950s that was later destroyed slowly by ice and by wear and tear. “If you can rebuild that former American dock out there, to accommodate tides, we can have weekly shipments from Montreal,” Woodward said, adding that a rail system at the port would help roll cargo on and off the ship quickly and efficiently. Woodward would favour shipping from Goose Bay’s port in Labrador, which he says is being “underutilized” at the moment. That means a shipment of perishable foods could be driven from Montreal to Goose Bay in two days, and then shipped 1,340 kilometres to Iqaluit, which takes three days.

Chamber News Briefs 3 This, he says, will lower the cost of food prices in Iqaluit, and perhaps even other communities in the future. “We’re looking at about a 30 per cent savings on perishables rather than flying them,” he said. Paquin suggested that smaller ports are more realistic in Nunavut communities, such as those found in all Nunavik communities. Fourteen communities in Nunavik benefitted from an $88-million federally funded marine infrastructure program, where basic docks, ramps and roads were built in the 1990s. Paquin said she’s been lobbying Transport Canada and the Government of Nunavut about the need for similar infrastructre since 2008. She also made a pitch to the City of Iqaluit for a phase-in project, that would see new infrastructure at the causeway that could serve as a landing facility for tugs and barges. In 2010 a push for a deep-sea port spawned numerous designs and options, but all turned out to be too expensive, ranging from $65-to $73-million. Prior to that, the GN dismissed an idea to create a $50-million harbour several years ago, after the City of Iqaluit commissioned the plan. “It’s been a topic that needs to be raised. I think we’ve been dealing with this for a number of years. I think the priorities may not have been there. I think it’s time to bring it up again,” Paquin said.

Aariak promotes devolution at Nunavut Trade Show "This will strengthen Nunavut’s position as a driver for Canada’s economic growth and a generator of wealth for all " Nunatsiaq News - September 28, 2012 Premier Eva Aariak came out swinging in favour of devolution when she delivered her Sept. 27 keynote address to Nunavut Trade show delegates in Iqaluit. “Devolution will be good for business by bringing the spin-off benefits of the resource management regime to local businesses here in Nunavut,” Aariak said. Devolution would see Ottawa giving the Government of Nunavut more control over its lands and resources. Aariak said the GN wants to get the details of devolution nailed down now, “ahead of this wave of development that is coming our way.” That could include 10 new resource development projects over the next decade, 8,000 jobs and $8 billion worth of annual production. “We need the time to build in a smooth and seamless transition. We need to ramp up the Government of Nunavut’s capacity — starting now — so that we are running efficiently when it’s our time to act,” she said. Aariak praised Nunavut’s regulatory system, which recently completed its review of the Mary River iron mine project, for its its “simplicity and clarity.” But she said “one piece of the puzzle is missing” “Nunavummiut still aren’t making the final decisions about our lands and resources,” she said. The decision about whether the Mary River project will go ahead “now sits on the desk of the federal Minister of Aboriginal Affairs and Northern Development in distant Ottawa,” she said. Meanwhile, the GN trying to build self-sufficiency, she said, citing the success of the Pangnirtung fish plant.

Chamber News Briefs 4 The goal remains lowering the cost of doing business in the territory — “the biggest hurdle on our path to greater economic development” — with new infrastructure such as airport renovations in Iqaluit and more training to “build up a made-in-Nunavut workforce and reduce the need for costly fly-in, fly-out labour.” “All of this will strengthen Nunavut’s position as a driver for Canada’s economic growth and a generator of wealth for all Canadians,” Aariak said. Last May, the federal and Nunavut governments each named negotiators who will lead talks on the transfer of province-like control over public lands and resources from Ottawa to the Nunavut government. On Dec. 14, 2004, Liberal Prime Minister Paul Martin had promised, as part of his northern strategy scheme, to start devolution negotiations with Nunavut in 2005, with a final agreement in 2008. But formal devolution talks between Ottawa and Nunavut never got started. In September 2008, the GN, NTI and the federal government signed a protocol to guide negotiations once they start. In January 2009, Ottawa named a new ministerial representative for devolution, Bruce Rawson. But the issue languished, even after Aariak launched a campaign in November 2010 to get talks going again. Ottawa completed a devolution deal with in 2003 and in December 2010 reached an agreement- in-principle with the .

Nunavut telecom players call for government action Firms offer complex menu of choices Nunatsiaq News - September 28, 2012 JIM BELL They may not agree on much, but there’s one issue on which all of Nunavut’s telecom players agree: governments must soon develop new ways of supporting broadband in Arctic Canada, a conference session held Sept. 27 at the Nunavut Trade Show revealed. The gathering brought together a collection of mostly private firms whose clashing commercial interests often bring them into conflict. But all groups admitted that governments, especially the federal government, must act now to replace a subsidy system that expires in 2016 and to recognize the technological landscape has changed radically over the past decade. And they also said the CRTC, Canada’s telecommunications regulator, must change the terms of a special fund that is now used to subsidize the cost of landline telephone service in remote communities. It’s also clear that to fix the widening communications gap between the North and southern Canada, governments must choose from a complex menu of commercial pitches. “The time is now for Arctic Fibre,” said Doug Cunningham, of Arctic Fibre Inc., an Ontario company that plans to build an undersea fibre optic cable from London to Tokyo under the waters of the Canadian Arctic. Cunningham said hundreds of millions of telecom consumers in Asia would ultimately pay for his undersea cable, eliminating the need for government subsidies to build it.

Chamber News Briefs 5 But, in response to questions, he said that connecting all or most communities in Labrador, Nunavik and Nunavut to the marine cable would likely require government spending of between $174 million and $190 million over about 20 years. At the same time, he said his proposed route would automatically connect 52 per cent of Nunavut’s population to his firm’s fibre optic cable, supplying them with fast, cheap connections that eliminate the latency delays and high annual transmission costs that bedevil satellite-based systems. This would include residents of Iqaluit, Cambridge Bay, Cape Dorset, Hall Beach, Igloolik, Taloyoak and Gjoa Haven. With government spending, including money to pay for a spur line to hook up Kivalliq communities on the west coast of Hudson Bay, 92 per cent of Nunavut’s population could be connected to Arctic Fibre’s cable, Cunningham said. This would not kill satellite communications, but it would relegate satellite to a backup role if fibre lines are damaged, Cunningham said. “I’m not suggesting that you throw out your satellite dishes — it will be a backup,” he said. But in Nunavut, Arctic Fibre’s big satellite rival, Telesat launched a big pitch of its own this past February. Under it, Telesat would spend $30 million over 10 years to make three more satellite transponders available to the North and another $10 million to finance upgrades to ground equipment, said Paul Bush, the company’s vice president of business development At the same time, Bush said Telesat wants government to spend $120 million over 10 years on another 12 transponders (a transponder is a spot on a satellite that supplies a fixed unit of bandwidth). In his remarks, Bush slammed the Arctic Fibre plan, saying fibre cuts are far too common, that ice conditions near shorelines could damage fibre cables and that implementation of Cunningham’s plan might take too much time. And he downplayed the Oct. 6, 2011 satellite meltdown across the North by say satellite-based services are “99.999 per cent reliable.” Cunningham responded by saying fibre cables can be protected by laying them in covered trenches and by doing horizontal drilling near shorelines. And he said most cuts to fibre optic lines occur in land-based systems, not marine cables. “A little ice is nice,” Cunningham said, because ice-covered seas reduce the chance of undersea cables getting damaged by ship anchors or bottom-trawling fishing vessels. Another objection to Arctic Fibre — which Telesat takes full advantage of in its pitch to government — is that an undersea cable cannot reach every single Nunavut community. Oana Spinu of the Nunavut Broadband Development Corp. said her group believes all communities, no matter how small or isolated, must each gain access to the same level of broadband connectivity. In the same vein, Bush said only Telesat satellites are capable of delivering the same service to all communities, because satellite signals are accessible everywhere. Cunningham dismissed the parity notion as “utopian” saying that if more communities were to gain access to inexpensive fibre optic connections, the resulting savings could pay for faster satellite services in communities the cable can’t reach. He also pointed out that rural communities on the outskirts of Ottawa still rely on antiquated dial-up internet. However, Jeff Phillips of the SSI Group, which runs the NBDC’s Qiniq network, said “broadband for all” should be the governing principle for telecommunications development.

Chamber News Briefs 6 “Paul and I have got you covered,” Phillips said. And Phillips said that within the system his company manages for Qiniq, SSI Micro has trained customer agents in every community, which meets another NBDC goal: building local capacity. But, depending on what the CRTC later decides, SSI Micro may have to compete with another “broadband for all” proposal. Their rival, , is proposing that the CRTC approve a $273 million service improvement plan that would offer high speed internet to all 96 communities in its service area, as well as 3G cell phone service. “We are asking the CRTC to step out and be bold,” Walker said. Another entity that’s under pressure to step up is Industry Canada, whose subsidy system for northern broadband expires in 2016. “The sky is falling in 2016… We need a long-term plan for Nunavut,” Spinu said.

Narwhals travelling further off regular migratory patterns Scientist puzzled as to why they are going further west CBC News – September 30, 2012 Hunters in Cambridge Bay, Nunavut, celebrated after catching 10 narwhals – a rare occurrence in the western Arctic. The community was happy with the sudden appearance of the whales. It’s only the second time narwhals have been spotted in the area. “Then one afternoon after lunch, the whole bay was covered with whales coming in,” said James Panioyak, the chair of the Cambridge Bay Hunters and Trappers Association. Whales were spotted near the community last year as well. At that time, it was illegal to hunt the animals without permission from the territorial government. This year, the hamlet applied for hunting tags and got five, which quickly ran out. Neighbouring communities chipped in their tags. “Gjoa Haven kindly stepped up because they didn't have any whales as of yet, and gave us five to use here,” said Panioyak. Narwhals will be eaten the same as beluga – the hunters will cut up the blubber and the meat and share it in the community. Presence of narwhals puzzling to scientist A leading Canadian biologist said he doesn’t know why the animals are so far off their migratory pattern. Joe Justice, a biologist with the Department of Fisheries and Oceans, said the whales are travelling further west than usual. “We certainly know that marine animals are known to extend their range for a variety of reasons, such as going after food, avoiding predators or for other changes in their habitat. They're very intelligent so they'll adapt to changes within their environment as is necessary,” he said. A total of 10 whales were harvested in Cambridge Bay.

Chamber News Briefs 7 NWT NEWS

Salt River First Nation elects six councillors Recount in close race for final seat Paul Bickford NWT News/North – October 1, 2012 Members of the Fort Smith-based Salt River First Nation have voted to elect six new councillors. However, the results of the Sept. 24 election are still unofficial because of a close race for the sixth and final position on council. Judith Gale collected 99 votes for sixth place, but Jeannie Marie-Jewell was close behind with 98 votes. Lynda Martin, the band's electoral officer, said under Salt River's customary election regulations, Marie- Jewell is entitled to call for a recount. "The results are unofficial until a recount is complete," said Martin. Marie-Jewell, a former Thebacha MLA and GNWT cabinet minister, said she was quite surprised there was not an automatic recount because the vote was so close. "We did request a recount to make it official," she said. Marie-Jewell said she honestly doesn't know if the result will change because of the recount. "That's why I'm curious." Martin said a recount is expected to happen sometime this week. The other results of the election saw Connie Marie Benwell finish first with 136 votes. There was a tie for second with Ronnie Schaefer and George Cumming each collecting 116 votes. Olga Mansbridge with 109 votes and Joline Beaver with 108 votes were also elected. There were 15 candidates vying for the six seats on council. The unsuccessful candidates were Vern Rowe (96 votes); Gloria Villebrun, Kendra Bourke and Brad C. Laviolette (each with 93 votes); Delores Bruno (79 votes); Chantel Bruno (68 votes); Dorothy Laviolette (65 votes); and Tanya Tourangeau (52 votes). Martin was pleased with the voter turnout for the election. She noted a high percentage of the approximately 220 eligible voters in Fort Smith cast ballots. Meanwhile, almost half of the 79 eligible voters in Edmonton cast ballots at a poll in the capital and about a third of the little more than 200 mailed-out ballots were returned. There was no election for chief on Sept. 24 because Chief David Poitras was elected by acclamation when he was the only candidate nominated by Aug. 22 deadline. Starting with this election, there will be a general election at Salt River First Nation every two years in the last week of September, at which time the positions of chief and all councillors will be filled. Previously the band held elections for half the council every two years. Candidates were elected to four- year terms.

KFN chief says new Wildlife Act will strip treaty rights Dene leaders express worry over legislation during conference held on Hay River Reserve NWT News/North – September 24, 2012 Jesse Winter With only months to go before the revised NWT Wildlife Act could be set to pass, Dene leaders from the Deh Cho region are worried it will curtail or even extinguish their treaty rights.

Chamber News Briefs 8 At a conference on the Hay River Reserve last week, K'atlodeeche First Nation (KFN) Chief Roy Fabian was joined by Dene National Chief Bill Erasmus and chiefs from across the region, expressing concern the new act gives preference to settled land claims over treaty rights. “We have treaty rights to our land. Canada recognized us as a sovereign people, and we never extinguished our sovereignty," Fabian said. "For them to try to pass legislation on wildlife without identifying our treaty rights and explaining how our rights are protected in the act – they protect all the new land claim agreements, but they don’t identify anything about the treaty – that’s the issue we’re having.” The new act is intended to protect wildlife populations in the NWT and replace the current act, which was written in the 1970s. It has been in the works for over a decade, and was withdrawn last summer in the face of opposition from aboriginal groups. Approximately 20 leaders and community members were at the conference on the Hay River Reserve for three days of discussions about how the new act will impact treaty rights. The two major issues raised were concern the new act will strip power from First Nations that haven’t signed a land claims agreement, and confusion over what type of identification potential hunters would be required to carry. Fabian said he is afraid the new act will allow anyone with a general hunting license (GHL) to hunt on his nation’s treaty-protected land without getting permission from him. “We’re the only ones that are supposed to have hunting, trapping and fishing rights, and yet they can give out a GHL which gives blanket rights to whoever holds the GHL and allow them to hunt and trap on our land,” Fabian said. “That’s the big concern here, the blurring of the relevance and meaning of treaty,” explained Ken Young, a lawyer representing the KFN. “That’s the big issue. And the territorial government has done a good job to do that, to reach that stage and blur the meaning of treaty,” he added. Young said the shifting of supremacy from treaties to land claims is tantamount to extinguishing constitutionally-protected rights, and the provisions of the Wildlife Act are an example of that. The KFN doesn’t yet have a signed land claim agreement. Environment and Natural Resources Minister Michael Miltenberger said the aboriginal leaders' concerns are a land claims issue and have nothing to do with the Wildlife Act itself, but that, if they would come to the negotiating table, they could have them addressed. “The majority of aboriginal governments are at the table and agree this needs to get passed and is long overdue," Miltenberger said. "The benefit of being at the table is that they could have (these concerns) addressed, if it was a legitimate concern. If they were at the table that would be the perfect venue for them to have that discussion."

RESOURCE DEVELOPMENT AND ENERGY NEWS

A mining 'whopper' Free Press – September 29, 2012 Gerald Flood The two-billion-year-old rock that Eric Prosh, director of the Nunavut minerals department, placed on his desk was the size of a cantaloupe but as heavy as a pumpkin -- not surprising, given that rich-black rock is 65 per cent iron, three times the concentration of typical iron ore.

Chamber News Briefs 9 The ore body from which Prosh's sample was taken is so rich, in fact, that it has launched the biggest development in Arctic history -- an open-pit mine at Mary River near the top of Baffin Island, 1,200 kilometres north of Iqaluit (3,500 kilometres north of Winnipeg). Baffinland Iron Mines Corp. plans to spend $4 billion bringing Mary River into production, an amount that includes the construction of a 150-kilometre railway (the first ever in the Arctic) to move ore to a port yet to be built at Steensby Inlet. Nine, 320-metre icebreaking freighters will then ferry the ore year-round to Europe for processing. Mary River is expected to create 5,000 construction jobs, 950 permanent jobs and billions in royalties for Nunavut over the expected 21-year life of the mine. "It's a whopper, a completely different kettle of fish," Prosh said. The Baffinland project, along with Agnico-Eagle's two gold mines in Kivalliq region, are expected to boost employment in Nunavut by 10 per cent, Prosh said. The economic impact of the mines will be so great that mining, which already has eclipsed government as the No. 1 generator of GDP, will push Nunavut forward. "Overnight these mines will cause a big bump in GDP," Prosh said. "And there's a bunch more in the pipeline."

Gold mine in the backyard Nunavut sees prosperity just around the corner Free Press – September 29, 2012 Gerald Flood RANKIN INLET, Nunavut -- Mining has eclipsed government as the No. 1 contributor to Nunavut's GDP, a government official told me recently. That's good news across the 13-year-old territory, but it's an odd kind of good news in that no matter how quickly it travels, it arrives very slowly. Such is the nature of mining. That hurry-up, go-slow nature is particularly evident in Rankin Inlet, which has had a gold mine in its backyard for billions of years. No one knew it, however, until 1989, when it was "discovered," igniting dreams of good times just around the corner in this struggling community of 2,800 on the western shore of Hudson Bay, 1,500 kilometres north of Winnipeg. Now, 23 years later, the good news is still just around the corner, although the corner finally is in sight -- the mine and the 750 jobs that will come with it is expected to open no later than 2017. Rankin Inlet can't wait, even as it must. A trades school has already opened, a good idea at any time but particularly so in a region where gold is not all that glitters. Rankin, in fact, was born as a nickel-mining operation in the mid-'50s, and there is, among others, a proven uranium deposit nearby that will be developed whenever France decides it needs the metal to fuel its nuclear reactors. The school will train students -- young and old -- in occupations that increasingly should be in demand, from electricians to heavy-equipment operators and diesel mechanics. Meanwhile, local contractors are gearing up. There is more heavy equipment in Rankin today than it could possibly use, all in readiness to help build a 24-kilometre, all-weather road to the mine and to take part in projects that will follow from it.

Chamber News Briefs 10 "We're very excited about the possibilities," Rankin Mayor Pujjeut Kusugak, 33, said in an interview. "It's exciting because of the opportunities in training and employment and spinoffs in construction and supply. "We can't expect government to do everything for us." Rankin has already seen the future at Baker Lake, where a gold mine has proven to be just that for scores of workers in the seven hamlets in the Kivalliq region, including 60 alone from Arviat, down the coast from Rankin. Workers at entry-level jobs operating rock wagons can earn $100,000 a year -- big money anywhere but hard to even imagine in Rankin where the jobless outnumber the employed and where youth unemployment is exploding along with the birthrate. The Meadowbank mine at Baker Lake is owned by Agnico-Eagle Mines Ltd., which also owns the Meliadine property in Rankin's backyard. Meliadine is not the biggest mining development expected to open in Nunavut this decade -- the biggest would be the $4-billion Mary River iron mine on Baffin Island -- but its development explains a lot about mining in Nunavut, or anywhere, for that matter. The 560-square-kilometre site was first staked in 1987; gold was found two years later at "Discovery," and a second deposit was confirmed at "Tiriganiaq" in 1993. (Four more have since been confirmed and the search confidently goes on for more.) Agnico-Eagle took an equity interest in 2008 and then bought out owner Comaplex Minerals for $650 million in 2010. Think about that. Think about the amount of geological research and expertise that would be required before you would confidently put up $650 million to buy an ore body that won't produce a cent of revenue for seven years. And don't forget, the $650 million is for acquisition. It doesn't include the $170 million that has since been spent further exploring the property and building a camp -- a small and growing indoor city -- that already feeds, houses and entertains 200 seasonal workers in one of the more forbidding climates on Earth. The purchase price doesn't include the cost of building a fuel dump, nor the cost of delivering 50 million litres of fuel to fill it up. A helicopter ride to the camp reveals a lunar landscape -- well, except that water has not been found on the moon but covers 80 per cent of the surface in these parts. Black flags on flex-poles line roads in the camp, markers that will show the way when blizzards and whiteouts arrive with winter. Unless you're a Prairie person accustomed to seeing much in very little, there is nothing to see but wide- open space in every direction. There are, however, things to observe -- for example, the land formations, the rivers, the countless tiny lakes and the markings on exposed rock all point southeast, the direction in which an ice-age glacier moved, dragging and shaping the landscape with it in an otherwise unrecorded past. The attention to environmental and heritage detail is impressive. Pure water from a nearby lake is filtered and chlorinated just in case some tiny impurity -- fecal matter from passing caribou? -- might find its way into the system. A $2-million bridge, one of three, spans a tiny river to prevent the roadway from interfering with char that return to it to spawn. Archeologists have scoured the entire site for signs of Inuit artifacts. Elders are brought in by helicopter to decide whether findings are significant and worth preserving.

Chamber News Briefs 11 If they say yes, the area is made off limits -- the route of the access road twists and turns to avoid such places. In the modern era, mining companies understand environmental and heritage concerns must be addressed before all other concerns. It is simply the cost of doing business today. It's also good for business -- local goodwill is key to success, and a reputation for doing it right opens doors around the world. The access road, the first two kilometres of which are completed, is a telling example of modern mine development. The road was only approved on condition that it be removed when the mine is exhausted. It was built by removing the tundra overlay to permafrost. The roadbed is then lined and covered to a depth of about one metre with crushed rock and gravel taken only from specified pits. The design is such that it allows the road to breathe and so protect the permafrost below it. Without the road, it is unlikely the mine could operate economically. Once completed, it will be used to move in 700,000 tonnes of equipment for startup, and 40,000 tonnes a year of resupply, much of which is now flown in by helicopter. Of course, all of this is only possible if the gold mine is a bonanza, which it increasingly appears to be. Agnico-Eagle has proven three million ounces of gold on the property, and there is strong evidence of seven million more ounces to be mined. The cost of operating in the North nearly doubles the cost of producing an ounce of gold -- $800 to $1,100 an ounce compared to $500 to $600 an ounce elsewhere. But with gold at $1,768 an ounce, times three (or 10 million) ounces... well, you do the arithmetic. Which takes us back to Rankin. The mine, and the town, are largely supplied by sealift -- mostly container ships from Montreal -- that bring supplies within barging distance of shore. Agnico-Eagle estimates that it already has paid $32 million to Rankin-based suppliers. Mayor Kusugak, a former Inuktitut-language instructor, hopes the needs of the mine, coupled with pressure from the community, lead to approval of a $20-million harbour, which could lead to the redevelopment of Rankin as a supply hub for the region and massively boost its fisheries potential. The mine, too, might tempt into becoming a partner in extending a hydro line from Churchill to Rankin, a move that could be partially financed through rates that reflect the savings to be achieved by weaning the district and its mines off diesel-generated electricity. (Transportation costs add about $1 to the cost of a litre of fuel in the region -- that's $50 million a year extra just to resupply the Meliadine mine.) Who knows, Kusugak says, a road up from Churchill might follow. Of course, none of this will happen tomorrow. That's not the nature of this beast.

Iron ore and fiber optics in the works for Nunavut Eye on the Arctic – September 27, 2012 Mia Bennett Nunavut, Canada is home to a wealth of mineral resources, yet it suffers from a dearth of high-speed internet. New developments in both of those areas could bring big changes to the territory. First, after four years of assessment and analysis, the Nunavut Impact Review Board (NIRB) approved the Mary River iron mine on Baffin Island, in the northernmost part of Nunavut. Two-hundred terms and conditions were included in the Final Hearing Report, CBC News reports.

Chamber News Briefs 12 The Board's mission is to "protect and promote the existing and future well being of the residents and communities of the Nunavut Settlement Area, and to protect the ecosystem integrity of the settlement area." With the Mary River iron mine, some of the NIRB's primary concerns included noise, pollution, and potential oil spills from shipping the iron ore out of Steensby Inlet. The construction of a railway, which will be Canada's most northern, to transport the ore from the mine to the port is another area of concern. Tailings and effluent also need to be stored properly. Effects on Nunavik? The Makivik Corporation, which promotes the preservation of Inuit culture in , requested a separate review of the mining project by the Nunavik Marine Region Impact Review. However, it did not receive the green light. According to a presentation given on the final hearing on July 19, Makivik believes that the mining project "will have significant adverse effects on Nunavik." They want the shipping route to be modified, as they believe that from time to time, Baffinland's icebreaking freighters could sail into the Nunavik Settlement Region (NSR). The NSR lies on the Quebec side of the Hudson Strait, through which the ore would be shipped on its way to Europe. Even if the ships did not cross over into their region, the volume of shipping could still impact species on which they are dependent for subsistence, such as seals and bowhead whales. NIRB's approval mandates a maximum of 20 ship transits a month and no more than 242 per year, which is still a huge amount, as that equates to a ship going out or coming in at least every other day with iron ore. Local communities and mining benefits While mining will help Nunavut economically, it will also put extra burdens on their already oversubscribed infrastructure. The report stated it best: "As recognized by all the participants in this Review, there is no question that the Mary River Project Proposal has the potential to contribute significant economic benefits to the North Baffin Region, the Government of Nunavut, the Federal Government and the resource and land owners, NTI and the QIA. Although the Board recognizes that it is difficult to quantify, at this point, the exact value of these benefits given the many variables that will affect the actual value of the net benefits received, even assuming the actual economic benefits that result are at the very conservative end of the range, the potential economic benefits remain positive and significant. However, as noted during the Hearing, it must be kept in mind that the potential positive economic benefits must be viewed in context, with the recognition that the Project would result in additional costs imposed on federal, territorial, regional and local governments to address project effects, such as increased pressure on regional housing supplies, policing/justice requirements and strains on infrastructure such as local airports." Pond Inlet Local communities often have to essentially pay out of their own pockets first before they realize any of the benefits from mining. Their environment will be changed and their infrastructure will be strained before any revenue is even generated, which is a concern of NIRB's. This could make the first few years of the project quite contentious. Some sort of benefits package has been recommended to help ease the transition for Pond Inlet from being a small, mainly Inuit settlement of approximately 1,500 people to being near the center of one of the world's largest iron mines. Thousands of employees will be hired to construct the mine, too, which will certainly tax the settlement's infrastructure and support systems. Even though Baffinland will construct housing for its employees, they will still likely make use of the settlement's sparing entertainment and dining facilities. Family members may visit, but there seems to be only one hotel and one bed and breakfast (with three

Chamber News Briefs 13 rooms) in town. To cope with the new developments, some residents want an international airport and a port. Pond Inlet is a stunning and remote little settlement (pictures on Flickr) and it will be interesting to see how it changes if construction indeed moves forward on the mine. Final approval of the mine, expected to cost $4 billion to construct, still rests with the Minister of Aboriginal Affairs and Northern Development, John Duncan. The mine will undoubtedly bring in huge profits for the Inuit if all goes according to plan because the Mary River mine lies on land for which the Nunavut own subsurface rights. In Canada, subsurface rights tend to be owned by the Crown, but when the Inuit were negotiating their land claims agreement with the federal government, they were able to take possession of subsurface rights in 2 percent of their territory. They wisely chose those areas based on where mineral deposits existed, and one of those sites was on Baffin Island. The main obstacle to the mine being built is probably not the government but rather the global recession. With iron ore prices hovering around their lowest prices since 2009, companies around the world are cutting back large-scale mining projects. There is a small chance the Mary River mine could go the way of the Mackenzie Valley Pipeline, which went through decades of government hearings, only to receive approval when natural gas prices were so low as to make the project economically unfeasible. Social consequences Another thing to consider as resource extraction gains traction in the Arctic is its impact on the community members themselves. Educational and career opportunities are very limited. Many people can gain training to work in mines and in related support areas, but it's easier if the person being trained is young and willing. Older community members may find it harder to receive re-training for a new career, especially in the demanding, labor-intensive mining industry. When royalty payments are disbursed to community members, they can often be flush with cash but not have anything in which to invest. Alcoholism, suicide, and child mortality are all higher than average in Canada's north. An influx of money doesn't solve these problems; they are much more complex than that. Nunavut has recently been looking to Greenland as an example of a fairly successful place that still cherishes and promotes its indigenous culture. The Globe and Mail reports that Greenland generates 60 percent of its revenue internally, while Nunavut only generates 7 percent. The rest of the money comes from Copenhagen and Ottawa, respectively. Fiber optic internet Yet one development that could signify progress in northern Canada would be the arrival of high-speed, fiber optic internet. There has been talk for several years about installing such a cable between Asia and Europe via the Northwest Passage; I wrote about plans by Arctic Fibre and Polarnet Project in January 2012. Arctic Fibre is stepping up to the plate and publicizing its plans to construct a cable between Tokyo and London. A signal would take 158 milliseconds seconds to travel between the two financial centers, making it 29 milliseconds faster than the normal routings through the Pacific and Atlantic Oceans. Telemedicine and easy videoconferencing between residents in Nunavut with doctors and hospitals in the south without annoying lagtimes would improve quality of life for northerners. Greenland already enjoys access to a fiber optic cable called Greenland Connect, which goes between Newfoundland, Greenland, and Iceland with a capacity of 1.10 Gbps. Residents in most of Nunavut, on the other hand, have to get by with painstakingly slow and unreliable internet. Researchers in Canada's Arctic stations also have to rely on the satellite network, so high-speed broadband internet would be a big technology boost for them. The arrival of broadband internet in

Chamber News Briefs 14 various parts of Africa over the past couple of years has served to help more people quickly get online, allowing them a whole host of new social and economic opportunities. This December, the Africa Coast to Europe Cable, which will begin in France and terminate in South Africa, with spur lines connecting to 18 Africa countries along the way, will launch with internet speeds of 5.12 Tbps. More people will be able to have smartphones and do everything from online banking to teleconferencing. Greenland and Africa are ahead of northern Canada in the quest for high-speed internet. Northern Canada should not be left behind when it comes to infrastructure that can promote social and economic development. While indigenous traditions should still be supported, there is no reason for the communities to be left in the dark, relying only on shaky satellite internet. For a long time, companies have avoided building a fiber optic cable in the Northwest Passage because of the high costs and little revenue that would be generated. Yet as more and more companies come to do business in the territories, it makes sense to have high-speed internet to complement their activities. At the same time, as more opportunities come to the North, whether in the form of resource extraction or high-speed internet, it will be important to make sure that the transition is made while consulting the local residents. Change can be good and bring many benefits, but overly rapid change often comes at a cost.

Pine Point processing plant facing delays Project could be on hold for a year NWT News/North – October 1, 2012 Jesse Winter Hay River's town council is worried a proposed rare earth mining operation, which would see as many as 70 new full time jobs for the town, could be delayed by up to a year. Avalon Rare Minerals Inc. is proposing to build a rare earth mineral mine at Nechalacho (Thor Lake, 100- kilometres south-east of Yellowknife) and a hydrometallurgical processing plant at Pine Point, about an hour's drive from Hay River. The proposal has been at the environmental review stage since 2010. At Sept. 24's council meeting, Avalon's vice -president of operations David Swisher told council if the review isn't finished soon, it could delay the project by a year. The review board asked for a second round of information reporting on the project. "It is a feasible project. We're hoping to have the feasibility study completed by March 2013, and then roll into early works construction in the summer of 2013," Swisher said. But in order to hit those timelines, the company needs to take advantage of next summer's barging season, which runs July to October, in order to begin construction. If the environmental review continues to drag on, the company will miss the window and be forced to wait another year. "What really hinges is the site at Nechalacho. It's the only site with restricted transportation," Swisher said, adding that barging equipment and materials up the lake is the most efficient way to access the site. "We are working feverishly at trying to move the schedule up," Swisher said, adding that in order to hit the summer barging season window, the review would need to be finished by February 2013. Swisher said priority would be given to the company's aboriginal partners for pre-construction training and that the goal is to retain as many workers in the NWT as possible.

Chamber News Briefs 15 "It's good business sense. I don't want to transport 50 of the 70 people we need from the south," Swisher said. "This seems like a really great project with mitigated environmental risk and large benefits for this community and this region," said Hay River Mayor Ken Latour. Council passed a motion to send a "strongly worded" letter to the Mackenzie Valley Review Board urging it to speed up its environmental assessment. "We need to present a united voice from this side of the lake. I really appreciate the work that the (Chamber of Commerce) has been doing and our MLAs getting behind it. We need to see this. I hope they can see the gravity of this and move forward as expediently as possible," said Coun. Kevin Wallington. The processing plant at Pine Point would provide 70 full time jobs, Swisher said. During constriction, which is expected to take about two years, it would create anywhere from 80 to 160 more jobs as well. All told, the South Slave region would see annual benefits of between $37.7 million and $53.8 million, $8 million of which would be wages. Rare earth metals are used in a wide variety of consumer electronics that are in high demand.

Forged in iron Nunavut News/North – October 1, 2012 Nunavut is taking another big step to becoming a strong, resource-based economy with the green light the Nunavut Impact Review Board gave to Baffinland's iron ore project. The rigourous regulatory process for the proposed Mary River mine, located 160 km south of Pond Inlet, will come to an end with a decision from Aboriginal and Northern Development Minister John Duncan. Approval is expected. Baffinland is aiming to begin construction of the massive mine, with its port and 150 km of railway, next year. Construction could wrap up by 2016. It is likely Nunavummiut in nearby communities - especially the nearby point-of-hire communities of Arctic Bay, Clyde River, Hall Beach, Iglulik, Pond Inlet and Iqaluit - will start seeing businesses and municipal governments prepare for growth. Over in Rankin Inlet, hoteliers are already expanding to serve the needs of Agnico-Eagle Mines Inc.'s Meliadine gold project, which hasn't yet jumped through all the regulatory hoops. Rankin Inlet businesses are facing some of the biggest contracts they've seen, and that's just with construction of a road linking the community with the Meliadine site. Similar growth is to be expected, especially in Iqaluit. With its movie theatre, swimming pool, choice of schools, services and shopping opportunities, it's likely that the non-Nunavummiut who decide to move north to work at the mine will congregate primarily in the capital. It's also possible, as noted in the review board's final report, that Nunavummiut from around the territory may choose Iqaluit as their home when they return from a work rotation. The growth communities encounter will be a good thing in many ways: an expanded tax base for the municipalities and, in turn, services for residents will broaden and employment opportunities both directly and indirectly related to the mine will grow. For Nunavummiut, jobs and training will be paramount. Training opportunities for residents may be transferable to other projects to come in the territory and others around Canada. It will open the door to a career for those who choose to work in mining.

Chamber News Briefs 16 It won't all be positive. Pressure for housing will likely increase and supply will surely struggle to keep up. More disposable income among a young population will lead to even more alcohol and substance abuse. Even with modern precautions, there are environmental risks from contaminants. The mine is projected to be in operation for 21 years. If commodity prices fall further, that could shorten. If they nosedive soon, the project might even get shelved. The resource industry is a fickle beast. It is, however, where Nunavut's greatest economic potential lies. This project, if it happens, will spur growth and will help the governments and Inuit organizations fine- tune how they can take advantage of the industry in Nunavut.

Community backs iron project Advanced Explorations Inc.'s plan at Roche Bay should not be compared to major Mary River project, says Hall Beach mayor Nunavut News/North – September 28, 2012 Thandiwe Vela There are only two things that stop mining projects, according to Advanced Explorations Inc. president and CEO John Gingerich -- environmental compliance and community relations. The company, which is advancing its Roche Bay iron exploration project near Hall Beach, has put the environment and community relations at the forefront of its operations, Gingerich told News/North, and boasts support for the project from the region as a result. "We realize that if there's not buy-in from the local communities, or if there's a fatal flaw in the environment, there's no point in putting money in a project," Gingerich said in response to criticism levelled against the company by a Hall Beach resident who has said the company has not given the community regular information about the project and does not have the support of the Hall Beach community. Hall Beach Mayor Paul Haulli said his council and colleagues are aware of the developments at the Roche Bay project and are in support of the project for the future of the hamlet's youth. "When the older people are passed, they're going to need jobs to survive," Haulli said. "In order for them to survive or pass on life they will need the jobs in order to support their families, so myself, I am supporting it." The development of a Roche Bay Project Committee, which was announced last November by the company, is continuing to be developed, Haulli said, and will include representatives from council, from the hunters and trappers association, Qikiqtani Inuit Association, and Advanced Explorations officials for ongoing dialogue. The Hall Beach resident, who wrote a letter to News/North, compared the community engagement over the Roche Bay Project to Baffinland Iron Mines Corp.'s Mary River project, which recently went through the environmental review process. While the resident said Baffinland has gone much further to address the concerns the Inuit have about the Mary River project, Advanced Explorations is just at the forefront of getting involved in the environmental review process, Gingerich said, and despite setting a target date to begin construction on the Roche Bay project in 2015-16, the project's environmental impact statement has not even been filed yet.

Chamber News Briefs 17 "That is the beginning of the process, so certainly it's presumptuous of anybody to state that things are going to happen without all the permits in place," Gingerich said. "We certainly don't do anything without prior approvals." In addition to the Roche Bay Project Committee, the company has held public meetings in the community on an ongoing basis, even though the environmental review process has not started, said Bernie Swarbrick, vice-president of capital projects and technical studies for Advanced Explorations. In addition to employing community residents on drilling programs, the company buys all its supplies from the communities, has two houses in Hall Beach and supports community activities such as rescues and the whale hunt, Swarbrick added. The Roche Bay project should not be compared to Baffinland's Mary River project, Haulli said. "We're trying to look at the future and we want to create jobs for this younger generation," Haulli said, noting the community could benefit from more employment with both projects going ahead. "Everybody will not be able to get jobs from Baffinland so once we get the Roche Bay going too, from the Hall Beach side, the Iglulik side, there will be quite a few numbers working there too." Once filed, Advanced Explorations' environmental impact study will include data collected since 2006, Gingerich said, because the company has been studying the project's impact on the animals, land, ocean and rivers around Roche Bay since before drilling started at the property. "We had a vice-president of environment before we had a vice-president of exploration," Gingerich said. "We've put tremendous amounts of due diligence into ensuring that the environmental data is maintained, up to date and we make sure that if there's any question whatsoever as to the levels of work to be done we do more than is required. We never look to meet the minimum standard." More than $50 million has been spent to date on the project, Gingerich said, including feasibility study work, drilling, and environmental studies.

Mine clean-up rules too lax, critic says Taxpayers still may end up with massive bills like Giant Mine in future, says MiningWatch CBC News – September 29, 2012 Elizabeth McMillan When Royal Oak Mines went bankrupt more than a decade ago, it left behind a toxic legacy that Canadian taxpayers are still paying to clean up. The federal government had to take responsibility for two of the company’s gold mines in the Northwest Territories — Giant Mine in Yellowknife and Colomac, located about 220 km northwest of the capital. Giant is one of the most contaminated sites in Canadian history and it will be one of the most expensive to clean up. The company's costly wake leaves some wondering whether enough has changed to prevent taxpayers from getting similar bills in the future. MiningWatch Canada said recent examples such as Jericho diamond mine in Nunavut show money set aside by mines for clean up isn't always adequate. “One thing that has happened time and time again is that there are surprises and cost overruns at the time of closure," said Ramsey Hart, MiningWatch’s Canadian program co-ordinator. "Certainly we'd like to see some contingency funds set aside for unanticipated events.”

Chamber News Briefs 18 Government dodged Jericho clean-up, says MiningWatch Hart said the federal government got lucky when new owners bought Jericho mine when Tahera Diamond went bankrupt in 2008. Ramsey Hart of MiningWatch says the federal government can be in a conflict of interest by both promoting mining and regulating clean-ups. “There was a fair bit of infrastructure on the site. It would have required a certain degree of clean-up, in the millions of dollars, and the amounts that were filed were really inadequate to do that job,” he said. Hart said it's in companies' best interest to low-ball clean-up estimates and questioned whether those plans are scrutinized enough. He said the federal government often has a conflict of interest, because it’s responsible for both promoting mining and setting the rules for clean-ups. "Do we have regulators who will stand up to them and say 'No, that's not adequate?' If they get push back and say 'Well, we just can't afford that,' what happens then? Is the mine put on hold? Is it not opened? Those kinda of scenarios seem unlikely," Hart said. The federal government has spent $135 million to clean up Colomac Mine and about $170 million has gone into Giant Mine so far. A half-a-billion-dollar clean-up plan still for Giant is still undergoing an environmental assessment. Clean-up not left till mines close, says Chamber of Mines But industry and government say rules have changed since Royal Oak walked away from those sites. Tom Hoefer, of the NWT and Nunavut Chamber of Mines, says mines incorporate clean-up work into their plans when they’re proposing a mine. Tom Hoefer, executive director of the NWT and Nunavut Chamber of Mines, said mines often start cleaning up long before they dry up. “The modern process is ... actually starting to put things in place while you're there," he said. "It's easier because you're making money and you can afford to do it better than at closure, and the other thing is, you've got heavy equipment there and you can get cheaper prices when you're operating.” He said planning for how companies clean up mines starts when they propose a new project. A second change is companies have to set aside money to restore the land and find a bank to guarantee there will be money there if the company goes bankrupt. “The whole intent is that we don't end up in situations of unfunded liabilities. [Liabilities] can occur if a company does go into bankruptcy, but it shouldn't be unfunded,” said Hoefer. Aboriginal Affairs says financial securities a last resort Aboriginal Affairs and Northern Development Canada said there are enough safeguards to protect taxpayers if companies go bankrupt. Mohan Denetto, director of mineral resources at AANDC, said the government does detailed calculations to determine how much money a company should post as security. He said federal inspectors monitor mines to ensure they’re following the terms of their land permits and water licences and respecting the environment. “The security that we take is a last resort,” he said. But the Colomac property isn’t closed for business. Shortly after the government announced remediation was complete, it granted Merc International, a company now known as NightHawk Gold Corp., the rights to do exploration at the site.

Chamber News Briefs 19 In exchange, Merc agreed to clean up to $5 million worth of work of existing tailings in the area, separate from the Colomac site. The company also had to post about $400,000 in securities for land permits and water licences. Whati Chief Alphonse Nitsiza says it’s important for aboriginal groups to put pressure on government, industry to ensure clean-up plans are adequate. (CBC) Whati Chief Alphonse Nitsiza said there has been progress since Colomac started producing gold 20 years ago. He said regulatory boards give aboriginal groups more say to help ensure enough money is set aside for thorough clean-ups. “People know the industry will come and take whatever and they're gone and probably never come back. We're trying to change their thinking. You may not come back but there will still be other people still living here."

Chamber News Briefs 20