Nunavut’s Mining Industryin the National Context

Elizabeth KingstonNunavut Trade Show

October 2014

2

Key Messages

• Exploration & mining are the foundation of Nunavut’s economy

• Nunavut has been a great story of success

• Exploration spending has suffered a significant decline

• Investment needed to grow opportunities in our greatest economic strength (mining) and our greatest territorial strength (people)

3

The North: how do we compare?

• 1/3 of Canada• Less than 75k residents• Arctic conditions & climate• Virtually undeveloped with little

infrastructure • High costs • Least mapped region of Canada• Most heavily subsidized region of

Canada • Economic options are few &

community opportunities are needed

• Non-renewable resources are the economic advantage Area of NWT + Nunavut = Norway, Sweden, Finland, Denmark, France,

Germany, Poland, Spain, Portugal, Italy combined.

4

Mining is the largest private sector contributor in Nunavut

• One mine in Nunavut already makes largest private sector economic contribution

• And does not include exploration

• Mining also contributes to other sectors, e.g. real estate, transportation and construction

NUNAVUT GDP (2012)

Construction10%

Other22%

Health5%

Education 7%

Public Admin20%

Real Estate11%

Mining 25%

5

2009 2010 2011 2012 2013 2014$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

18.4

52.742.5

24.9 30.1 31.4

107.2

154.4

335.3

213

159128.3

70.7

116.2

255.7

180.3

67.2 65.1

166.7

238.8

438.5

410.3

163.8

238.9

Grassroots Exploration

NWT Nunavut

Yukon B.C.

C$ m

illio

ns

6

2009 2010 2011 2012 2013 2014$0

$50

$100

$150

$200

$250

$300

$350

$400

25.729

51.3

83.8

59.9

40.1

80.4102.3

200.4209.5

111.2

38.2

20.2

40.7

76

52.9

22.7 32.6

50.5

135.6

206.6

323.8336.2

273.1

Advanced Exploration (Deposit Appraisal)

NWT NunavutYukonB.C.

C$ m

illio

ns

7

Mining production is significant

Nunavut – Meadowbank gold production increases

NWT, Nunavut and Yukon Mining Production

$0

$500

$1,000

$1,500

$2,000

$2,500

$C M

illio

ns

NWTNunavutYukon

Natural Resources Canada – March 2014

8

Falling Nunavut Exploration is a Cause for Concern

Notes:• Expenditures reported include on-mine-site and off-mine-site activities, field work, overhead costs, engineering,

economic and pre- or production feasibility studies, environment, and land access costs. • 2013 figures are final estimates; 2014 figures are revised spending intentions as of March 2014.

Exploration & Deposit Appraisal Expenditures

$0

$100

$200

$300

$400

$500

$600

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

$C M

illio

ns

NWTNunavutYukon

NRCan – March 2014

9

Nunavut Exploration Share (Uses March 2013 numbers)

Nunavut as % of Total Canadian Mineral Exploration

0

5

10

15

20

25

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

% o

f Tot

al C

anad

ian

Spen

ding

• Nunavut is witnessing a decline against other Canadian jurisdictions.

NRCan – March 2013

Note: “NU only” statistics begin after Nunavut was created in 1998

10

A level playing field for Nunavut miners?• Remote sites require airstrips and camps to support

mobile workforce.

Airstrip and camp at Meadowbank gold mine

11

Our industry creates significant benefits

• Mining is the largest employer of Aboriginal people

• Mining in Canada is projected to need 120,000 workers by 2024 *

• Nunavut Mining Jobs needed at peak (overlap) – over 8000

• Total person years employment – nearly 100,000

* Mining Industry Human Resource Council, 2014

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

01,0002,0003,0004,0005,0006,0007,0008,0009,000

10,000

Potential New Nunavut Mine Jobs (construction + operations)

Num

ber

of W

orke

rs

12

Growing Inuit Businesses Opportunities & BenefitsSelection of Inuit companies supporting the mining

& exploration industry in Nunavut

• Peter’s Expediting• Jago Services• Qillaq Innovations• Toromont Arctic• Kitnuna• Kivalliq Expediting &

Storage• Oomilik Enterprises• Akhaliak Consulting• Kitikmeot Blasting Services • Kitikmeot Caterers Ltd.

• Baker Lake Contracting & Supply• Forest North Aviation & Logistics• Eskimo Point Lumber & Supply• M & T Enterprises• Kiluk Ltd.• Kusugak Consulting• Qikiqtani Industry Ltd.• Nuna Group of Companies• Kitikmeot Cementation Mining

& Development • Medic North Nunavut

13

Training & Education Builds Futures

• Mining Matters / Actua• Kivalliq Mine Training Society• Arviat Diamond Driller/Welding• Nunavut Arctic College / Trades School• Agnico Eagle / Baffinland Initiatives• Government of Nunavut “Sivumut Abluqta”• Government of Canada

– Northern ABE Program– Canada Job Fund

14

• In 2013, • 32 active projects• 5 advanced

• 12 Gold• 7 Base Metals• 4 Uranium• 3 Diamonds• 5 Iron• 1 Coal

• Several properties multi-commodity

15

Conclusion

• Mining is the North’s economic strength • We have very high mineral potential • We have world class mines and world class

opportunities • Actions are underway to support investment

certainty and strengthen our number one industry • Providing infrastructure to support mining will help

communities• Add your voice and influence