Tracking Latest News progress on NWT - NUNAVUT on Northern Exploration Baffinland IBA Projects 2019 QXQDYXWQHZV photo courtesy of Agnico Eagle photo courtesy of the Department Infrastructure Residents gather in Rankin Inlet 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 $1.2 billion to develop its new Can the North's mining industry afford to give more? territory, Housing Minister Patterk Netser has called upon land Meliadine gold mine and Amaruq gold deposit. The multi- It may depend which side of the ore pit you're on. NWT/NUNAVUT MINING 2019 1VCMJTIFE"OOVBMMZCZ/PSUIFSO/FXT4FSWJDFT-UEr"XBSE8JOOJOH/PSUIFSO/FXTQBQFS1VCMJTIFS Head Office: 5108-50th Street, Yellowknife, Northwest Territories STORIES BY 'HUHN1HDU\%XVLQHVV)HDWXUHV Proud Member: /85/VOBWVU$IBNCFSPG.JOFTr/85.JOJOH)FSJUBHF4PDJFUZ BAFFIN BUREAU – IQALUIT KIVALLIQ BUREAU – RANKIN INLET SOUTH 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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esidents gather in Rankin Inlet for a donation event sponsored by Agnico Eagle in June. The mining 6XVWDLQDEOH'HYHORSPHQW5HSRUW company gave away $1 million to aid literacy and firefighting. 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.